Sectors

Delivering in attractive markets

Sectors

Delivering in attractive markets

Public Sector

The last 12 months have been the most politically turbulent the UK has seen in the last 40 years.  Whilst Brexit has dominated the headlines and the political discourse in both parliament and living rooms across the length and breadth of the UK, the Public Sector has remained steadfastly focused on improving the efficiency of its operations.

Under current and previous governments, a focus on efficiency has seen both politicians and civil servants turn their attention to digital transformation.  The belief that digital technology allows organisations to do more with less has now become widely accepted.

An overt focus on digital makes the UK Public Sector an attractive market for Incremental over the coming years, particularly with a Government focused on increasing spend with small and medium-sized enterprises (SMEs).

The UK Government is committed increasing Central Government procurement spend going to SMEs from a little over 10.5% to 33% [1] by 2022.  With last year’s spend totalling over £52bn, this proportional trebling equates to an additional £12bn going to SMEs per annum.  This trend is being mirrored across the whole UK Public Sector, including devolved administrations and non-departmental public bodies, creating a huge opportunity for Incremental.

Incremental’s strategy to place focus on the Public Sector is proving successful.  Going from a new entrant to this market in 2017, almost 20% of our revenues come from the Public Sector.  We see the UK Public Sector as a key area for growth into FY2020 and beyond.

Manufacturing

The UK Manufacturing sector directly employs over 2m people contributing over £300bn annually to the economy. Whilst Brexit uncertainty has been high on the agenda of all executives, it is the existential threat brought about by digital technology that will continue to drive agendas both now and in the future.

The 4th industrial revolution is upon us, with 3D printing, advanced robotics, the internet of things (IoT), AI and virtual reality (VR) all now impacting the industry.  Digital technology is now part of the manufacturing landscape and with it the pace of change will continue to accelerate in the years ahead.  Industry experts suggest that the use of digital technology can help increase efficiency within manufacturing sectors by up to 25% and this realisation is driving many organisations to embrace digital as a means of competitive advantage.

We continue to support our manufacturing customers in optimising back office operations using both enterprise resource planning and customer engagement solutions.  We are supporting them transition from traditional on-premise infrastructures to the public cloud whilst supporting and maintaining their application estates.  With the creation of our Data & AI business we are well positioned to help manufacturers improve their decision making and extract the value from their data.

Energy

2018 is likely to remembered as a transitional year for the Energy sector.  With climate change now a priority in many countries, pressure to move away from fossil fuels to renewable sources has never been greater.  Despite this the demand for oil, gas and coal is expected to continue to rise over the coming decades [2].

Within the UK, hydrocarbon production from the North Sea continues to play an important role.  In December 2019 we celebrate 50 years of continual production in UK waters.  As we enter this 6th decade, the focus firmly remains on reducing operating costs, improving exploration efficiency and adjusting to the new reality of low margin operation.

The energy industry is embracing digital transformation.  Here in the UK, industry advisors are recommending that the sector doubles down on digitisation [3] and with the creation of the Oil and Gas Technology Centre [4] we are seeing the industry take a fresh look at digital technology and the start of a new culture of innovation.

The energy market continues to be one where Incremental is well placed to capitalise on this new focus on digital.  The breadth of offerings from Cloud and Apps to Data and AI enables Incremental to lead the conversation at both ends of the spectrum; supporting organisations move to modern, agile infrastructures whilst ensuring they leverage the latest in data engineering and machine learning.

Professional and Business Services

The UK Professional and Business Services market is thriving.  Finance, legal, accounting and consultancy firms in particular are now embracing the potential of intelligent cloud-based business applications.  Organisations are using digital technology to deepen relationships with their most valuable customers, deliver profitable projects, and better attract, utilise and manage their highly valuable billable resources.

The biggest surge in demand for Incremental’s services during FY2019 was from the Professional and Business Services sector.  As a professional services business, Incremental natively understands this market and consequently is well placed to help these organisations transform.

For the year ahead, we expect to see continued increasing interest from Professional and Business Services firms across all our service offerings.

Not-for-Profit

Since the turn of the millennium we have seen a dramatic change in the not-for-profit sector.  In 2000, charities and voluntary organisations received most of their income from donations.  Today not-for-profit organisations generate most of their income.  This change has seen an increase in the combined income of the sector with it reaching almost £50bn per annum in the last year despite reductions in government funding.

Today almost 200,000 charities are registered in the UK and these not-for-profit organisations face a wide range of challenges.  From running complicated retail operations to managing customer and donor relationships effectively, the challenges have never been greater to ensure that they are able to effectively execute their philanthropic missions.

In partnership with the Microsoft Tech for Social Impact team we have pushed to help the sector embrace participation in the Microsoft Power Platform Social Innovation Hackathon.

SMEs

With the wider changes in the economy brought about by digital technology, we are seeing rapid rise of many high growth SME businesses.  These businesses are agile, and their scaling is only possible through the pragmatic and systematic application of digital technology.

With minimal legacy issues, many of these businesses are cloud native and understand that effective governance is mandatory.  Through our new Business Central business we are already supporting a number of these organisations build the foundations that will enable their businesses to thrive.