In order for the government to cut net migration numbers to the UK post-Brexit, it has been reported that three government departments will be sharing data on citizens so that immigration status checks can be made more easily.

Departments

It has been reported that the Home Office, HM Revenue & Customs and the Department of Work and Pensions (DWP) will all share data about citizens, thereby enabling checks on immigration status to be made more easily e.g. by employers and public service agencies.

The proposals, which are part of a Home Office paper entitled “the Border, Immigration and Citizenship System After the UK Leaves the European Union” have not been agreed upon by ministers, but have provoked discussion.

Shift

The key shift in government policy that the document is built-around is the idea that rather than employers or EU citizens deciding about migration, the government could impose measures that prioritize the economic and social needs of the country.

Fewer Low-Skilled EU Migrants

In other words, the government is looking to minimise migration to the UK by lower-skilled workers. The document indicates that this could be achieved by several measures including:

• Limiting residency to a maximum of two years for lower-skilled workers, and offering five-year work permits for high-skilled migrant workers.
• Scrapping EU rules on the rights of extended family members to reside in the UK.
• Not granting residence permits to jobseekers, and introducing a specific income threshold for ‘self-sufficient’ migrants.
• Introducing “right to work” checks carried out by employers themselves, with the threat of criminal sanctions against companies and individuals where illegal working is discovered. This is similar to law already in place whereby landlords are responsible for checking the immigration status of tenants. Employers could, therefore, effectively take on some of the work of UK immigration.

Skills Gap

One of the key challenges in IT in the UK market is a skills gap, particularly in areas such as data, security, Python, Ruby, UI and UX. The low number of UK students graduating with computer science degrees (particularly females) has made this gap wider. Also, lower average salaries for London tech jobs compared to those in other key European and US tech cities have also lead to a brain drain.

What Does This Mean For Your Business?

For IT businesses, many of which (particularly start-ups) wanted to remain in the EU, skilled migrant workers are necessary to fill the skills gap and to enable UK IT companies to compete in the global market. The government has also stated that it wants the UK to be a digital powerhouse. With these factors in mind, it is important that government immigration policy does not cause the kind of uncertainty and worries that could act as a deterrent to migrant tech workers who may want to stay for some time in the UK with their spouses / families, and who will clearly be contributors to the economy (as many lower-skilled workers are also). Taking a broader view, it is important to acknowledge that whole industries in the UK now rely upon migrant workers of varying skill levels e.g. hospitality and health, and any new regulations need to strike a careful balance to take into account the needs of migrant workers, the needs businesses who employ them, and to not invite retaliatory action by the 27-country EU bloc for measures that could be seen as treating EU nationals as second-class citizens in the UK.

For IT companies, Brexit looks set to make it more challenging to attract skilled people from overseas. It is not down to just businesses alone to solve the skills gap challenge. The government, the education system and businesses need to find ways to work together to develop a base of digital skills in the UK population and to make sure that the whole tech eco system finds effective ways to address the skills gap and keep the UK’s tech industries and business attractive and competitive.

Apple’s on-stage demo of the new iPhone X in front of the world’s media last Tuesday suffered an unexpected glitch as its new face recognition feature didn’t work, and now Apple is offering an explanation of what went wrong.

Not Recognised

The nearly two-hour on-stage demo of the new phone, by Craig Mr Federighi, Apple’s senior vice president of Software Engineering at the company’s Cupertino, California headquarters, failed to hit the right note as it was overshadowed by the failure of the new handset to recognise his face as a means of authentication.

Others Moving The Handset

Statements by Apple since the incident have placed the blame on the fact that the phone’s authentication system tried to recognise the face of those moving the phone into position, ready for the presentation. These attempts, therefore, counted as two unsuccessful authentication attempts because the faces were not those of Craig Federighi.

Unfortunately for Mr Federighi, the phone, for reasons of security, is designed to only accept 2 unsuccessful authentication attempts using the facial recognition feature, before the feature is disabled and the user has to go to the trouble of manually typing in a passcode.

Irony

The awful irony of the presentation was that ‘Touch ID’, which was being replaced with the 10th anniversary iPhone X, would have allowed five failed attempts before seeking a passcode.

What made things seem worse was the fact that this new iPhone feature had been developed after Apple reportedly gathered a billion images to ‘train’ the feature to recognise broad geographic and ethnic data sets, and that Apple had earlier described Face ID as being “effortless” to use, and even more accurate than its fingerprint-based Touch ID system.

Apple has also said that the 3D front-facing camera has been designed to learn what users look like and is only inaccurate one in 1 million times.

Also For Payment and Emojis

As well as providing authentication to unlock the phone, The Face ID feature has also been designed to authenticate Apple Pay and create the customisable animated emoji.

Spare

Fortunately for Mr Federighi, he had a spare phone standing by so that he could at least continue the presentation.

Theories

Prior to Apple’s attempt to explain what went wrong with the feature, different theories had been offered online as to what may have caused the problem, including the idea that Mr Federighi’s wiping of the stage make-up on his face before this second attempt may have interfered with the system.

Concerns

Some commentators have expressed concerns about how the use of Face ID could affect the privacy and security of users, and that the technology may not be entirely effective where users need to keep their face partially covered e.g. for religious / cultural or work reasons.

The largest concern for many people, however, has been the substantial $999 price tag for the phone ($999 for the 64GB version and £1,149 for 256GB).

What Does This Mean For Your Business?

Having an up to date phone that can cope with the demands of doing business on the move are the main concerns for many businesses, and having a time-saving, new security feature such as Face ID would be a bonus. For many business people, however, the high price of the phone, and the loss of trust in its Face ID abilities already (remember that Face ID also authorises Apple Pay as well as the phone itself) have meant that they may stick with their existing phone for the time being.

For Apple, which is not doing as well as it would like in large markets such as China, the public Face ID failure, which may well have been legitimately caused by features designed to protect the security of users, could prove to be costly. It may also have done nothing to boost business confidence in the kinds of biometric security measures that are being introduced to so many business services e.g. banking.

This story also helps to illustrate the delicate balance between price, value, and perceived benefits in products and services. Even though the sophisticated AI / biometric technology in Face ID is really quite spectacular, if a product has no real perceived benefits compared to existing products / versions, customers may not see the value that they will gain by paying the high price.

The value of Bitcoin has taken a tumble on worldwide currency markets after China ordered exchanges to cease trading in the cryptocurrency.

What Is Bitcoin?

Bitcoin is a digital web-based currency that operates without the need for central banks and uses highly secure encryption (a crypto-currency) to regulate the currency units and to verify transfers of funds. Bitcoin uses the ‘Blockchain’ technology. Blockchain is an open and programmable technology that can be used to record transactions for virtually anything of value that can be converted to code and is often referred to as a kind of ‘incorruptible ledger’.
There are approximately 15 million Bitcoins in existence, and in order to receive a Bitcoin, a user must have a Bitcoin address (of which there is no central register).

Why The Halt In Trading in China?

It has been reported that China has ordered a halt in Bitcoin trading at its exchanges because they have been told that they don’t have a licence to operate with the crypoto-currency. The instruction issued by Leading Group of Beijing Internet Financial Risks Remediation is reported to have listed a series of steps that each exchange has to go through before handling Bitcoin, and to cancel any accounts that don’t have bank accounts connected to them. It has also been ordered that the details of user and trading data will have to be recorded on DVDs and submitted to local authorities.
As part of the required steps, Chinese exchanges will need to devise a wind-down plan so that cryptocurrencies can be paid into user bank accounts.

Why Really?

Some commentators have speculated that this could be a move to force companies to shut down and then get officially licensed, as this will give the government access to their back-end systems. This move by China could therefore be as much about gaining control through licensing as it is about cryptocurrencies.

China also has a history of problems with Bitcoin in that it appears to dislike the lack of transparency and control, and that it was allegedly used by criminal and money laundering gangs. For example, as far back as December 2013, the People’s Bank of China and several other government ministries issued an official notice entitled ‘Guarding Against the Risks of Bitcoin’, which stated Bitcoin may not be used as a currency.

Was At A High

Before the panic and subsequent fall in the value of Bitcoin, caused by moves in China, in August Bitcoin hit new highs as its value exceeded the value of a troy ounce of gold for the first time.

Other Cryptocurrencies Affected

The news in China sent the crypto currency markets into a downward spiral as the main cryptocurrency values fell by between 20 and 40 %. For example, Litecoin (the fifth-largest cryptocurrency) fell 37% in value after the news of the decisions about to be taken about Bitcoin in China.

AI Contrast

The value of growing technologies such as AI currently provide a contrast to the dipping fortunes of cryptocurrencies. Shares of Nvidia Corp, who have expanded into AI, cloud computing and self-driving cars (as well as, ironically, chips used to process cryptocurrency transactions), reached a record high for the second straight day on Monday.

What Does This Mean For Your Business?

The rise of cypto-currencies, such as Bitcoin, to the point where it was finally being taken up by investors, businesses and governments, has been filled with high profile ups and downs e.g. a fall in its value on the Tokyo-based Mt. Gox exchange following a hack in late 2013. Despite its problems and bad press, in recent years (up until now), Bitcoin has had a decrease in volatility. 2017 has also actually seen a lot of optimism for the crytocurrency, which reached a point back in January where its worth was around the same value as that of a FTSE 100 company. Bitcoin has many attractive advantages for businesses such as the speed and ease with which transactions can take place due to the lack of central bank and traditional currency control. Using Bitcoin also means that cross-border and global trading is simpler and faster and the ‘crypto’ aspect of the currency makes it secure. This latest challenge unfortunately involves a very large market, and has created more uncertainty and mistrust that has rubbed off on other crypto-currencies. Fingers-crossed for Bitcoin, this may be more about licensing in China, and Bitcoin, as it has done many times, will most likely bounce back.

The importance of other new technologies such as AI and driverless vehicles is finally being reflected in the value of the shares of companies who are leading the charge in those technologies, and these technologies are likely to provide many global business opportunities going forward.

The world’s largest auto market, China, is reportedly planning to ban the sale of diesel and petrol vehicles to help tackle pollution and to develop the market for electric and hybrid vehicles.

Near Future

China’s vice-minister of industry and information technology, Xin Guobin, is reported to have announced to a forum in Tianjin that the working out of a timetable for the banning of fossil fuel vehicles is already underway. The vice-minister, however, didn’t give an accurate date for the cut-off point and could only say that the policy would be implemented ‘in the near future’.

World’s Largest Vehicle Market

The announcement is significant, not least because of the widely reported air pollution / smog problems in China’s major cities, but because China is the world’s largest auto market with more than 28m vehicles produced and sold last year (International Organization of Motor Vehicle Manufacturers figures). This number of vehicles represented an increase in demand of 13.7% on 2015 sales numbers.

Regulation And Incentives

To ensure that the policy is put into practice quickly, the Chinese government introduced a draft regulation in June to make vehicle manufacturers produce more electrically powered vehicles by 2020 using a (somewhat complex) quota system.

China has also introduced incentives such as allowing foreign automakers to joint venture with local automakers to build just electric vehicles, and the introduction by the government of a number of incentive programs for OEMs, including subsidies.

This push in China, so far, has meant that there were more than 500,000 new energy vehicle sales there in 2016, which is more 50% more than the previous year, according to national industry figures.
Deadline

As the draft regulation deadline approaches, foreign vehicle manufacturers have moved to boost the production of electric cars in China. For example, Volvo looks set to introduce its first 100% electric car in China in 2019, and Ford will sell its first hybrid vehicle there in early 2018, and predicts that 70% of all its cars available in China will have electric options by 2025.

Elsewhere In the World

The move to electric and hybrid is not new, and is not confined to just China. France has already announced that it will cease sales of fossil fuel cars by 2040, and the UK has also committed to that same timeline for its sales of those vehicles (as have cities like Madrid, Mexico City and Athens).

This week’s Frankfurt motor show is also likely to bring more commitments and more competition between carmakers over who is winning the race to electrify their vehicles.

Companies Too

Some companies are also making commitments to ditch fossil fuel vehicles. Uber, for example, has pledged to help tackle air pollution in London (where it has 40,000 drivers) by only offering electric or hybrid vehicles for UberX by the turn of the decade, and across the whole of the UK by 2022. Uber has said that it will help its drivers to switch to greener cars with a more than £150m fund, paying up to £5,000 per upgrade.

What Does This Mean For Your Business?

A switch to electric vehicles will help governments to meet pollution targets and could have a significant, positive environmental and climate change impact. For businesses, having to switch to electric vehicles could, of course, mean greater costs to purchase the vehicles in the first place, with the promise of reduced fuel costs.

The bigger picture of such a major shift to electric cars in China and across the world could have many implications, both direct and indirect for businesses. As well as providing new business opportunities in new markets for car makers, it could mean a fall in foreign oil imports to the UK and boosts in investment in UK infrastructure such as charging points.
Some sceptics have pointed out that despite the current hype and announcements about the targets and potential benefits, there are still only 2 million battery powered cars in the world (out of more than 1 billion cars), and that even with even with subsidies, they are still more expensive than petrol and diesel alternatives.

Some commentators have predicted that the ‘hit’ that oil demand will take could seriously affect major oil-producing countries’ budgets, and that some governments could be forced to impose spending cuts within the next five years. This could affect living standards and this, in turn, could have a negative affect on economies and many businesses.

Oil companies, however, say that oil demand will not dip because of rising prosperity in the developing world, although this may be an optimistic view considering that electric cars also offer countries a chance to tackle their air pollution problems, which in turn is attractive to their citizens.

It has been announced that a standalone ‘for business’ version of Facebook’s WhatsApp messaging platform will soon be made available.

WhatsApp Business

Although many businesses have used WhatsApp for communications with customers, suppliers and other stakeholders, the new ‘WhatsApp Business’ has been developed to focus specifically on connecting businesses, especially large enterprises, with customers in a consensual and value adding way.

WhatsApp Business will be free for small businesses and there will be a paid-for version for enterprises with a global customer base.

Why?

Since Facebook acquired WhatsApp in 2014 for $22 billion, the platform has grown to the point where 1 billion people use WhatsApp every day. The company is, therefore, now looking for ways to monetize the app which, although was developed for use by individuals, is now being widely used by people in business, and in large and small organizations as a collaboration tool for staff.

This move by WhatsApp is also designed to gain a march on rivals in what has become a battle for the attention of consumers by messaging apps including Apple’s iMessage, Facebook’s Messenger, Kik, Slack for business, and others.

Early Signs

Prior to the announcement, the signs that a business version was on the way were visible. For example, last year WhatsApp was given document sharing capabilities e.g. for the sending and receiving of PDFs, and it desktop clients for Windows and Mac OS were developed. Also, Facebook made moves towards business customers with the Workplace social network platform launch at the end of 2016.

Verified

WhatsApp Business will work using a verification system i.e. using verified profiles so people can identify a business from another person (similar to Facebook’s own grey badge for business pages). For example, if you see a green tick badge next to a contact’s name, this shows that WhatsApp has verified that the phone number of this contact belongs to a business account, and you as an individual user can then block that account if you’d like to stop that business from contacting you. Businesses will only be able to contact people who have given them their phone number and agreed to be contacted by the business over WhatsApp. Also, consumers will have to opt-in to notifications via WhatsApp when providing their phone number through e.g. a company website.

Examples

WhatsApp has aimed WhatsApp Business at companies operating on a large scale with a global customer base e.g. airlines, e-commerce sites, and banks. The initial vision is that these businesses could use WhatsApp Business to provide customers with notifications e.g. flight times, delivery confirmations, and other updates. To get more of an idea of the huge potential of WhatsApp Business, examples of how WhatsApp is being used by businesses and other organisations include:

• There have been reports that UK National Health Service doctors already use WhatsApp (and SnapChat) to send sensitive patient information and that UK diplomats even use WhatsApp for apparently confidential discussions.
• Back in 2013, in Absolut Vodka’s marketing campaign to promote their Limited Edition Absolut Unique collection, anyone wanting to win these tickets had to use WhatsApp to contact an imaginary bouncer and convince him to let them go.
• Dutch airline KLM has become the world’s first airline with a verified WhatsApp account (announced last week), and is using it to offer customers world booking confirmation, check-in notification, boarding pass, flight status updates and the ability to ask questions in 10 different languages.

Strengths of WhatsApp

The key strengths and advantages that WhatsApp that could help fuel the success of WhatsApp Business include:

1. WhatsApp has a huge international user base.
2. It supports a wide range of phones, and is, therefore, very popular in areas with costly SMS fees e.g. Brazil, Argentina, and Malaysia where 60 % of the population uses WhatsApp (it is the most popular alternative to SMS in 109 countries).
3. Many business users are familiar with and / or have already tried using WhatsApp for some aspect of their business or marketing.

Still In Beta

For now, WhatsApp Business is still in beta testing, and WhatsApp is testing new tools through a closed pilot program. Those interested in testing the business tools can fill out an online survey on their blog and may be contacted as part of the testing program.

What Does This Mean For Your Business?

WhatsApp Business offers businesses / brands (particularly larger ones) huge potential in building a relationship with their customers on a 1:1 level. The huge user base of the app, its speed and reliability, and the verification system of the business version could provide new opportunities for businesses that are able to harness it in a value-adding and engaging way.

The examples mentioned earlier (KLM’s use of the app for flight confirmations and updates, and brands using the app on competitions) are just the tip of the iceberg for the potential of WhatsApp Business. In industries such as hospitality for example, WhatsApp could be a perfect way to enable customers to book a hotel room, get customer support, and even access an on-site member of staff such as a concierge. Retail brands could use the app for many purposes in addition to just shipping confirmations.

Many tech and business commentators are saying that 1:1 messaging is the future of personalized commerce and post-purchase customer service, and WhatsApp Business is well positioned enough, and widely used enough to provide opportunities for businesses worldwide to improve their communication and relationship marketing.