As our markets grow and become more developed, they are reflecting a spectrum of activities with varying degrees of added value. With our depth of expertise in managing complex processes and critical technology, Xchanging sits towards the upper end of this spectrum. Our aim is to move further up this Value Curve (see above diagram). To achieve this we need to increase the use of technology in our offerings, for example through mobile delivery, analytics and Cloud services.
We are making better use of our existing technology assets – for example accelerating completion of Xuber – and prioritising the development of new ones. We also recognise that ownership of Intellectual Property will become increasingly important, both to provide an offering and a barrier to entry.
To retain existing customers as well as to attract new ones, we must constantly innovate to generate new offerings, and to differentiate ourselves from our competitors. In 2012 we embedded channels for stimulating, capturing and developing innovative ideas and saw the first results of putting our new system in place. Technology-enablement and innovation will remain central to our business plans going forward.
We set out at the beginning of 2012 to build the foundations for growth. We have made good progress and have started to see the benefits, with much higher levels of interest in our offerings, the award of new contracts and the successful renewal of existing ones. We have started our transition from the founding business model, based on a small number of large contracts, to a more broadly-based model.