Targeting Plan for Attracting the Top Tech Companies to GM - Andrew Toolan, Head of Creative Digital and Tech, MIDAS September 2018
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Targeting Plan for Attracting the Top
Tech Companies to GM
Andrew Toolan, Head of Creative Digital and Tech, MIDAS
September 2018
Contents Executive Summary……………………………………………………………………………………………………………….p1 Which Companies to Target ……………………………………………………………………………………………….p2 Top 21 Companies……………………………………………………………………………………………………………….p3 Type of Information Researched………………………………………………………………………………………….p4 Other Tech Targeting Campaigns……………………………………………………………………………………….p7 Planning Stages and Deadlines…..……………………………………………………………………………………….p9 Appendix: Company Profiles: GAFAM……………………………….………………………………………………………………….p10 Company Profiles: NATU…………………………….……………………………………………………………………….p31 Company Profiles: BAT…………………………….…………………………………………………………………………..p48 Company Profiles: Forbes 2018 List………………………………..…………………………………………………..p61
Executive Summary
This paper sets out a plan for building more strategic relationships between Greater The new opportunities could come from innovation driven projects that address a company’s
Manchester (GM) and the worlds largest tech companies. The aim is that closer collaboration focus, areas of interest and their challenges. It could also come via market opportunities by
will ultimately lead to increased levels of partnerships, investment and job creation. partnering with GM and its various institutions on areas such as ‘digitisation and delivery of
public services’. These opportunities will be positioned with the inward investment pitch but
MIDAS have selected 21 companies that in 2018, were either the largest tech firms by market help GM stand out from our competitor locations by being more tailored to company needs.
capitalisation, major brands or the key employers/job creators within their sector. In order to This Top 21 campaign will run in parallel (and compliment) other tech targeting campaigns
develop a more strategic approach we need to get a better understanding of these such as the CDT Sub-Sector Campaign; NexGen Campaign and Emerging Tech/Data City
companies in terms of their goals, challenges and areas of focus. This will enable us develop a Project. At the end of this we want this activity to have achieved the following:
more tailored solution that addresses their areas of interest. This paper contains in-depth
analysis of 21 companies on topics including: Operational Footprint, Recent News 1. Increased levels of investment and job creation from the target tech companies. (Aim to
Announcements, R&D focus as well as Key Contacts to target. secure investment from further 5 of these companies within 2 years).
The list includes companies already in GM as well as target firms. Existing employers present 2. Increased collaboration between Greater Manchester’s academic and research
strong potential for re-investment and so may be more likely prospects in the short-medium institutions and these tech companies in innovation led-projects/student placement.
term. Other companies may have invested in London in recent years, taking out long leases
and so will be making those sites the primary focus for UK growth. However, as they scale and 3. Increased collaboration between Greater Manchester’s local authorities and these
want to spread their risk they may consider new locations so will be more medium-long term companies, leading to smarter and more efficient ways of delivering public services.
targets, nevertheless both groups will be proactively targeted. Its also hoped this paper (with
stakeholder feedback) will strengthen our proposition, allowing us to create new opportunities 4. Contributed and helped drive forward GMCA’s plans with the Local Industrial Strategy.
for companies. Also, by adopting a more strategic ‘Team Manchester’ approach, collective Also, this should play a key role in the Mayors digital agenda and ambition to position
networks can be pooled making engagement with target companies easier. GM as one of the smartest and Top Digital Cities by 2020.
1
Which Companies to Target
Top 21 Tech Companies Tech Companies appearing in Forbes 2018 List
By comparing the list of the worlds largest companies (by market cap) in 2006 and 10 years This includes companies such as: Huawei; Samsung; Oracle; IBM; Cisco; HP; Intel; Dell. (Twitter
later (see Figure 1.0) it is evident it has changed significantly with only two companies still in which doesn’t appear in this list has been added given its profile).
the Top 10 (ExxonMobil and JP Morgan Chase). The most valuable companies in 2016 based
purely on market cap were Apple, Alphabet/Google, Amazon and Facebook, which all The GAFAM; NATU and Forbes list’s provides 21 companies to target as a starting point.
appeared in the Top 6 of firms. In addition, there are also other well established tech Collectively, these firms are the tech industry's largest employers/job creators as well as the
companies and fast growing younger firms and all of these will be the focus of this campaign. biggest spenders on R&D and innovation.
More detail on these groups is covered below.
Figure 1.0: Largest Companies by Mark-Cap 2006 Vs 2016 Source: Forbes
GAFAM: Acronym for the five most popular US tech stocks: Google, Apple, Facebook, Amazon
and Microsoft. The GAFAM companies have a joint market capitalisation of approx. $4.1 trillion
as of July 2018. These companies have evolved a great deal over the last 10 years.
Google is part of the wide ranging technology group Alphabet; Apple offers a wide range of
cloud based services in addition to iPhone and iPads; Facebook is an advertising and media
giant that’s been built around a social network; Amazon has developed from an online book
reseller to moving into multiple new industries such as Cloud Services, Food and Health.
NATU: The above tech giants are now being closely followed by new heirs to the throne;
Netflix; Airbnb; Tesla and Uber.
BAT: Acronym for the large Chinese tech companies; Baidu; Alibaba and Tencent.
2
Top 21 Companies
Figure 1.1: Top Tech Targets and MIDAS lead
Top 21 List - ‘Team Manchester Approach’
Companies
In order to be more strategic in our approach with these companies we need to get into their ** Existing GM Investor
DNA and better understand their focus, areas of interest and challenges. We need to look at
**Google Twitter
where they are spending on R&D, what technologies and partnerships are of interest, recent
Apple **Microsoft
news announcements, and build up a knowledge of their investment patterns and operational
footprint. We then need to determine what’s taking place in GM that will compliment Facebook **IBM
this/present as an opportunity for the client. This needs to be done in partnership with **Amazon **Dell
stakeholders so we better understand the GM offer, which can then be developed into a Netflix Samsung
tailored proposition. In addition, sharing our list of key targets with stakeholders will help Uber Huawei
identify who within the GM network has warm relationships with these companies. The profiles
Airbnb Baidu
on each of the Top 21 Companies has been complied through research from:
HP / Hewlett Packard Enterprise Alibaba
• Annual Shareholder Reports / Company Papers Tencent Intel
• Company announcements and press articles linked to them **Cisco **Oracle
• Company website information
• Linkedin / FAME / Employer Register Data MIDAS Lead MIDAS Lead
Andrew Toolan, Head of Creative & Tech Audrey Peers, Business Development Mgr.
The MIDAS CDT team will be responsible for driving engagement with the target companies andrew.toolan@midas.org.uk audrey.peers@midas.org.uk
07738 027 186 07792 015 616
and act as overall lead. (See Figure 1.1 )with the exception of Tesla which will sit with David
Hilton, Sector lead for the Industrial/Advanced Manufacturing sectors.
3
Type of Information Researched
Six Degrees of Separation / Greater Manchester Connections
Key Contacts: Each of the contacts identified will receive an approach from MIDAS over the
next 3 months, with the CEO receiving a letter from the Mayor/senior civic leadership team.
The LinkedIn URL’s of target contacts have been included. This provides not only a list for
This letter will outline GM’s wish to build a strategic dialogue with the company in terms of
MIDAS but one stakeholders can analyse to identify known persons directly or through mutual
future collaboration. Running parallel to this, MIDAS will be contacting other key contacts with
connections, creating the potential for warmer introductions. In addition, where possible we’ve
the aim of securing a meeting/initial call. Ten contacts at each company have been identified
researched the background of the contacts to see if they have any affiliation with GM and
(see Figure 1.2 below) providing multiple people to approach and where necessary new
there are some surprising results. For example, Nicola Mendelsohn, Facebooks EMEA Head of
contacts will be added. The aim is that by the end of December 2018 all of these contacts will
Operations attended Manchester School for Girls and so is likely from GM/a link we should
have had an initial approach from MIDAS/GM.
look to leverage.
Figure 1.2: Example of Top Tech Target Contact Profile
Using Linkedin, its also possible to identify GM university alumni from target companies. We
can leverage this, working with the universities direct and MIDAS Sector Marketing Team to
push relevant content (via Linkedin) to senior target contacts, thereby building up greater
awareness of GM’s key messages and updates.
For example, Facebook has 54 alumni from the
University of
Manchester and
we’ll do this with
all GM universities
4
Type of Information Researched: Areas of Interest/R&D
4. Project Baseline – a huge longitudinal study
One of the company topics we look into is their areas of interest/R&D spending which will help
This was announced in April 2017 and its scope makes it the most interesting project that Verily has worked
us develop more relevant bespoke propositions. For example Google are investing in Artificial on. 10,000 volunteers will be monitored over four years, building a whole range of datasets using in-clinic
testing and continuous data collection via a Baseline app and the Study Watch. The study is predicted to
Intelligence and Health. Alphabet subsidiaries Verily Life Sciences and DeepMind Health have take a decade to complete (due to the time needed to find enough participants) and cost more than $100m,
with the ultimate aim of finding predictors of conditions such as heart disease and cancer. Participants will
announced some of the most exciting digital and tech projects in healthcare of late. Below are undergo x-rays, heart scans, genome sequencing and blood tests, alongside the continuous tracking of
activity data and sleep patterns (using an electric loop placed under a mattress). With such a variety of data,
six examples of how Alphabet/Google is innovating in healthcare. Verily is ‘creating an infrastructure that can process multi-dimensional health data – much of which has never
been combined for an individual.
1. Streams – a secure clinical app 5. An eye-scanning algorithm to diagnose eye disease
The Streams app was built by DeepMind Health and digital product studio to provide real-time information One emerging area of medical research is the use of machine learning to assist with diagnosis, as well as
to clinicians, enabling them to more easily prioritise patient care in hospitals. Patient alerts will provide some practical parts of medicine (such as the careful segmentation process during radiology). DeepMind
doctors and nurses with the data they need and the app will allow clinicians to communicate about next Health is innovating in these areas and received publicity for its work in ophthalmology. Since 2016,
actions. This will free clinicians from juggling multiple pager, desktop-based, and paper systems and help DeepMind has worked with Moorfields Eye Hospital London in training computers to assist with screening
redirect more time away from admin towards patient care. Streams has been in use at the Royal Free for diabetic retinopathy (DR). The algorithm was trained using 128,000 retinal images that had already been
London hospital since 2016 and helping to treat patients with acute kidney injury. classified by ophthalmologists. In testing, the algorithm then matched or exceeded the performance of
experts, not only in identifying DR but also in grading its severity.
2. Verifiable Data Audit – a ‘blockchain’ system to track health records
6. Miniaturized continuous glucose monitors (CGMs)
Some critics of the Streams App have said Google’s five year partnership with the NHS gives it too much
access to NHS data without appropriate oversight. That’s where DeepMind’s next big project comes in. Verily is working with Dexcom to develop CGM’s for those with Type 2 diabetes. The monitors are predicted
DeepMind Health is working to bring scrutiny to the use of medical data. Verifiable Data Audit is a to be ready by 2020, and will help to make continuous monitoring less expensive and less disruptive, using
blockchain-style system that will give partner hospitals an additional real-time mechanism to check how data wireless connectivity and precluding the need for measurement with the traditional finger stick. Fewer than
is being processed. Where authorisation and patient consent is needed, the system will show who is one in 5 people with Type 2 diabetes use continuous glucose monitors. This new technology may make the
accessing data. As with blockchain, the system will not allow for any data record to be erased, with third practice affordable and convenient for more.
parties able to verify if data is uncompromised. However, the system will not be as complex or expensive as
blockchain, nor will it be decentralized, as it will rely on hospitals and national bodies to act as verifiers.
3. The Study Watch – an everyday wearable
Verily Life Sciences, has developed a health tracking watch which differs from wearables on the market. It is
designed for everyday use in medical studies, ensuring study participants don’t neglect to wear it. The
watch’s software can be updated wirelessly and a processor encrypts the data collected, which includes:
Heart rate; Electrocardiograms; Movement data; Electrical conductance of the skin and Ambient light and
sound. The Watch is being used in several of Verily’s studies which aim to collect a wide variety of data. One
such study began in 2017 June at Radboud University Medical Centre, Netherlands. 650 volunteers used the
watches, as well as having brain scans and blood tests.
5
Type of Information Researched: Headcount Growth
2) Employer Register - This data on UK headcount of the tech companies can be used to
make certain inferences rather than absolutes about growth projections. Many multinational
As part of our analysis of the Top Tech companies, we’ve carried out research into their tech firms tend to have large and often complicated corporate structures with many of the
headcount growth trajectory as well as provided a breakdown of key functions. This helps us below companies having an Irish partner company of the same name that often reports ten
understand whether the company is in growth mode or contracting, but both can provide times the turnover and yet a fraction of the employment. There may be some cross over
opportunities for GM as the latter can create consolidation projects. Having a good between UK and Irish employee numbers. The table below compares 2013-2018 data on UK
understanding of the key functions within the companies helps us identify the type of skills employee headcount. Those highlighted in green have seen significant growth over the last
they’re looking for and GM’s strengths/weaknesses in these areas. Having insight into a 5yrs, therefore should be a key priority as they’re more likely to outgrow space they’ve taken if
company’s staff growth trajectory (along with knowledge of their operational footprint/lease they continue at the current trajectory
commitments), enables us to extrapolate when they may have future requirements for new Figure 1.4: Top Tech Companies UK Headcount : Source Employer Register:/FAME
UK Employment UK Employment 5 year
office space. In this study we have looked at two sources of data: 1) Linkedin and 2) Employer Company
Number (2013) Number (2018) Change +/-
Register/FAME. It should be noted that the different sources sometimes give different data sets Google 1,613 3,280 +103%
Apple 4,452 4,911 +10%
around employee numbers. This could be due to a number of factors, one being how perm
Facebook 90 960 +967%
and contract employees are recorded by companies and third parties. Amazon 4,191 19,749 +371%
Netflix - 14 -
1) Linkedin – tracks changes in staff headcount over 2 years (in this case Sep 16-Sept 18). Uber - 199 -
Airbnb - 49 -
Important to note, this is across the whole business, not just the UK operations. It also provides HP / HPE 4,308 2,871 -33%
a breakdown of functions within the company and changes over 6/12 months. Tencent - - -
Cisco 203 3,178 +1,466%
Figure 1.3: Linkedin Company Employee Data Twitter - 187 -
Microsoft 2,852 3,046 +7%
IBM 16,026 13,212 -18%
Dell 2,052 1,704 -17%
Samsung 1,005 1,129 +12%
Huawei 768 1,061 38%
Alibaba 5 20 300%
Intel 947 872 -8%
Oracle 4,680 4,622 -1%
6
Other Tech Targeting Campaigns
Whilst this paper focuses on the Top 21 Tech Companies (and in-depth analysis on each is Figure 1.5: Sample of target companies within the CDT subsectors.
covered from p10 onwards), in addition, we’ve also started to list the key companies to target
Cyber Security eCommerce Software / A.I /
in each of the CDT sub-sectors, known as ‘CDT Sub-Sector Campaign’. An overview of these
Gaming
campaigns are listed below. Lists of key contacts at these companies will also be collated and
CyberArk Groupon Salesforce
approached by MIDAS.
FireEye ASOS SAP
CDT Sub-Sector Campaign: Here we’ve identified the largest and fastest growing companies Checkpoint Software JD.COM VMware
in each of the CDT subsectors (See Figure 1.5 and p7). A spreadsheet is being created to Symantec Priceline Group Intuit
record and track progress against targets. Key contacts at these companies will be sourced DarkTrace Deliveroo SAS
through LinkedIn and other databases MIDAS subscribes to, they’ll then receive an approach
Trend Micro eBay Sage
from MIDAS to establish a relationship and hopefully identify new projects.
Fortinet FlipKart Hitachi
Proofpoint Otto Fiserv
NextGen Campaign: This targets young, high-growth profitable companies in MIDAS’s key
target sectors and markets. The aim is to establish early relationships with companies who Imperva Rakuten Darktrace
could be the next Amazon or Google and therefore the large future job creators. AVG Technologies Trip Advisor Ubisoft
Herjavec Group Delivery Hero Sony
Emerging Tech Campaign: This aims to target non-tech companies going through digital
Mimecast Walgreens Boots Nintendo
transformation and thus evolving their business model, affecting the type of talent they recruit
KnowBe4 Costco Sega
and way they deliver services to clients. This process can create expansion, consolidation or
Sophos Etsey Activsion
relocation projects. MIDAS/GMCA have commissioned DataCity to carry out research which
will provide a list of target companies as well help inform and develop the GM proposition. DarkTrace Zalando Rockstar
7
CDT Sub-Sector Targeting Companies
These companies have been
identified by GP Bullhound, a
Manchester-based investment
Source: GP Bullhound 2018 banking firm that specialise in
the tech sector as Europe's
largest tech companies by
market-capitalisation.
These companies will also be
targeted via Linkedin, direct
mails and through events and
lead generation activity MIDAS
will be carrying out.
MIDAS will also use similar
reports focussed on GM’s other
priority markets such as USA;
India and China
These projects may provide
more opportunities in the short
medium term as they are in high
growth mode.
8Planning Stages and Deadlines
• Share and agree company target list with GM stakeholders
Stage 1 • Deadline for Completion: 7th November 2018
• Bespoke Proposition Development
Stage 2 • Deadline for Completion: Ongoing (Will have better intelligence after DataCity report which is expected by January 2019)
• MIDAS Outbound Campaign (Linkedin / Email / MM Activity )
Stage 3 • Deadline for Completion: Ongoing (All key contacts to be contacted by Dec 31st 2018)
• Linkedin Activity delivering sponsored content to senior alumni contacts at target companies
Stage 4 • Deadline for Completion: Ongoing but initial push by 14th December 2018
• Mayoral Letter to Company CEO’s
Stage 5 • Deadline for Completion: Dec 14 2018
th
• 121 Meetings in London or companies UK HQ
Stage 6 • Deadline for Completion: Ongoing but March 31st 2019 all companies to have been met/conference call taken place
• Host Senior Visitors in Manchester
Stage 7 • Deadline for Completion: Ongoing but aim to bring individual companies or delegations to GM by September 2020
9Appendix: Company Profiles
(Google; Apple; Facebook; Amazon; Microsoft)
10Summary Operational Footprint Intelligence
• Business: Internet related services and products (but increasingly moving to hardware)
• Number of locations: US (26) Europe (29) Asia Pacific (17) Latin America (6)
• Founded: 1998
• Global FTE: 93,639
• London: 4 Offices – Victoria (where most of the Sales team are based) Covent Garden (160,000 sq ft) Google
• Global offices: 70 offices in 50 Countries
are building a new 870,000 sq ft super HQ in King Cross which opens in 2021. The 11 storey office (along with
• CEO: Sundair Pichai, CEO (Larry Page CEO of Alphabet)
the already open Building 6 Pancras Square and a third space) will create a campus capable of housing up to
• HQ: 1600 Amphitheatre, Mountview, Silicon Valley, CA 97043, USA
7,000 staff. Alphabet subsidiary DeepMind is already in Kings Cross along with their R&D Centre for Android.
• Revenue: $110bn (2017)
• Products: 1) Web Based (Search Tools, Advertising; Communications & Publishing
• Dublin: This is the location for their registered EMEA HQ and opened in 2003 initially creating 200 jobs. Google
Services: 2) Developer Tools 3) Operating Systems 4) Desktop/Mobile Apps
now employ 7,000 people in Ireland across 7 locations. In 2018 they announced they were opening a new
5) Hardware
51,000 sq ft office which will house the Enterprise & Cloud teams servicing EMEA. It will also be home to
• Alphabet subs: Google; Calico; Capital G; Deep Mind; Chronicle; Google Fibre; GV; Jigsaw; Loon;
Google’s Advanced Solutions Lab as well as Marketing, Finance and key Engineering functions. Google also
Sidewalk Labs; Verily (Health Business) and Waymo
leased 52,900 sq ft of office space in Sandyford, Dublin.
• Mission: Organise the worlds information and make it universally accessible and useful
• Manchester: Location of Google Digital Garage and a small sales function.
Key UK & Ireland Operations
12,000 staff • Other: R&D Centres: Sydney (Birthplace of Google Maps) London (Android Development).
(UK 3,280-5,000 • European Data Centres: Belgium; Finland; Ireland; Netherlands.
Manchester Ireland 7,000)
• Hyderabad: In 2015 Google opened a key centre here, their largest outside the US with 13,000 staff.
The strategic reasons for a new office are largely driven by the specific needs of our business in that area. The
Dublin ability to attract talent is paramount for a knowledge-based company, and we aim for offices in vibrant and
EMEA HQ London (4 offices) creative neighbourhoods that inspire our employees. To do this, a building must be very well connected to the
city’s mass transit system, both above and below ground. Plus safe and easy access to the city’s cycle routes,
communal bike network and any other environmentally sustainable transport system. Within EMEA, where Google
is predominantly a CBD employer, there is little emphasis on cars and parking as a decision driver”
Joe Borrett, Head of UK Real Estate, Google
11Employee Distribution (Source: Linkedin Sept 2018) Two-Year Employment Growth Trajectory (Source: Linkedin Sept 2018)
Conclusions
• Majority of current functions are in Engineering and IT, closely followed by Sales and Marketing.
• Number of new job openings for Engineering and IT positions is up 102% and 104%% from 12 months ago.
• In two years, employee headcount has increased 19% across the entire business. With UK headcount now
approx. 5,000, if Google continue at this rate for the UK they will add circa 950 staff / year.
• The current UK operations is future proofed for approx. 10/11,000 staff which means they may start to run out
of space in approx. 5 years and therefore need to look at new offices. UK Employment Register shows
headcount has increased 103% between 2013-18 (1,613-3,280). Taking this growth rate forward means they
will run out of space sooner.
12Areas of Interest / R&D Investment / Challenges Recent News
• Quantum Computing; AI; Health; Medical Diagnostics; Driverless Cars; Drone Technology; Photo • Sept 2013: Launched Calico, R&D biotech company with the goal of combating ageing and associated diseases
Analysis; Language Translation; Data Centre Efficiency; Google Home products.
• August 2015: Announced plans to reorganise business interests into one conglomerate called Alphabet. Google
• Healthcare: Verily looking at Blockchain to track patient records; Health Monitor Watch; DeepMind is is Alphabet's leading subsidiary. Sundar Pichai appointed Google CEO, Larry Page, Alphabet CEO.
developing an algorithm to diagnose eye disease; Project Baseline (In-Clinic Testing) Glucose testing
hardware; Streams is an App that is designed to help clinicians reduce admin time. Calico is a R&D • Jan 2016: Verily (Google Life Sciences) and MSD team up with the NHS on a ‘Long Term Conditions Early
company whose mission is to harness advanced technologies to increase our understanding of ageing. Intervention’ programme. Pilot will look at new approaches to improve healthcare. Project run in collaboration
with the NHS clinical commissioning group in Heywood, Middleton Rochdale, Greater Manchester.
• Social impact of new technology in the workplace and society; AI and Ethics; Fairness in Society.
• Sept 2016: Alphabet Subsidiary Verily announces partnership with Sanofi to develop comprehensive Diabetes
• Developing Digital Skills – In 2017, Google CEO announced the company would offer 5 hours of free management platform.
digital skills training to all UK residents to be rolled out, both online and in 100 locations around the
country. It’s an expansion of the company’s Digital Garage initiative. • March 2018: Alphabets driverless car business “Waymo” announces long term partnership with Jaguar Land
Rover, starting with self-driving Jaguar I-Pace. Up to 20,000 vehicles will join Waymo’s fleet in the first two years
• Recruitment: Google often talk about hiring ‘smart creatives’ - people who are curious, like the concept of production
of change, like tinkering with things and understanding how they work and trying to change them.
• August 2018: Google Building Smart City in Toronto. Coalition of Toronto government with Sidewalk Labs
• In terms of challenges, Google is being criticised for its data collection practices and the spread of (Google Co,) to reimagine Toronto’s derelict waterfront as “the world’s first neighbourhood built from the
misinformation. internet up.”
GM Offer / Proposition and Opportunities GM Links
• Ageing research • Ruth Porat met Andy Burnham during 2017 visit to open Google Digital Garage
• Jaguar land Rover Partnership with Waymo, Google’s autonomous vehicle business given JLR have their • Google already have small Sales and Marketing function in Manchester.
innovation centre in Manchester.
• MSD/Verily/Rochdale NHS partnership – this should be leveraged for further collaboration/key contacts.
• Health Innovation Manchester / Opportunities through healthcare devolution.
• DIT Account Manager is Mahesh Nandha mahesh.nandha@trade.gov.uk
• Access to Talent as they scale beyond London office.
13Key Contacts
Name Position Name Position
Sundar Pichai CEO Joe Borrett Head of Real Estate UK
Joined in 2004, originally from Chennai. Studied material science and Oversees real estate strategy and currently working on the new campus
semiconductor physics at Stanford University. Previously with Mckinsey and being built at King Cross St Pancras.
succeeded Larry Page as CEO when Google reorganised to Alphabet. He led
development of Google Chrome and overseas all new Google products, https://www.linkedin.com/in/joe-borrett-5497274/?originalSubdomain=uk
including Ads, Android, Apps, Maps, Search and YouTube.
Ruth Porat Chief Financial Officer Theo Bertram Pubic Policy Lead EMEA
Born in Sale, Manchester. Family moved to US when she was 6. Spent large Joined in 2011, previously with O2 and also served as a Special Advisor in
part of her career at Morgan Stanley. Joined Google in 2015. In addition to the Office to the Prime Minister. Based in London.
Finance, Ruth also runs Business Operations, People Ops, HR, Real Estate and
Workplace Services. Came to Manchester in 2017 to open the Digital Garage. https://www.linkedin.com/in/theo-bertram-
4451b75a/?originalSubdomain=uk
Ronan Harris UK & Ireland Managing Director Daniel Alegre President Global Partnerships
Joined Google in 2005. Graduate from University of Dublin, worked in several Joined in 2007. Also served as Director of the Sleep Number Corp. since
start-ups and as an Engineer for Mitsubishi Chemicals in Japan. Has a passion 2013. Was President of Asia Pacific and Japan at Google Inc. He is based
for supporting SME’s. Based in London. in San Francisco.
https://www.linkedin.com/in/ronanharris/ https://www.linkedin.com/in/daniel-alegre-a906954/
Matthew Brittin President EMEA Julian Chappuis Global Technology Lead
Joined in 2007. Passionate about Digital Skills. Also Non Exec Director at Joined in 2018, technologist previously worked with Nestle in Switzerland
Sainsburys, Trustee at Climate Group. Keen Sports enthusiast/Cyclist and but is now based in London.
Rowed for GB in 1986 Olympics. Based in London.
https://www.linkedin.com/in/matt-brittin-5aa6391/ https://www.linkedin.com/in/julienchappuisbidault/
Benjamin Fried Chief Information Officer Alina Dimofte Public Policy and UK Government Relations Manager
Joined 2008. Computer Science graduate from Columbia University then Joined in 2017, initially in communications as had previously experience
worked at Morgan Stanley for 13 years, rising to the role of IT Managing working with PR companies. Based in London.
Director. Based in New York.
https://www.linkedin.com/in/befried/ https://www.linkedin.com/in/alina-dimofte-990ab22b/
14Summary Operational Footprint Intelligence
• Business: Consumer electronics, software and online services • Apple owned 13.4m sq ft and leased 23m sq ft of office space as of 2017. Total future lease payments were
• Founded: 1976 $9.5bn as of 2017. Company retail stores and offices typically have leases not exceeding 10 years and contain
• Global FTE: 123,000 (2017) multi-year renewal options.
• Global offices: 500+ Retail Stores and Offices • US: New Apple HQ ‘Apple Park’ can house 12,000 people and is more than 260,000 sq metres.
• CEO: Tim Cook • London: The new Battersea office (550,000 sq ft) opens in 2021. There will be 1,400 staff in this to start but
• HQ: Apple Park, 10600 North Tantau Avenue, Cupertino, Silicon Valley, CA 95014 room for 3,000 employees. Apple are consolidating from eight sites across London into one location and
• Revenue: $229bn (2017) occupy all six floors of the PowerStation. All Apples central functions such as Finance and HR will move here. A
• Products: Mac; iPhone; Apple Watch; iPad; Apple TV; Homepod; iOS; Garageband; Final Cut new tube station next to the site will also open. Apple has approx. 2,530 staff in London which includes circa
• Services: Apple Pay; Apple Store; iTunes; App Store; Apple Music, iCloud; Mac Store; iBook’s 1,100 working across their retail stores. Apples' biggest London office currently is Hanover Street in Mayfair
• Subsidiaries: Beats Electronics; Shazam; Braeburn Capital; Apple Energy; Beddit; Texture; Anobit near its flagship Regent Street Store but Apple have 7 other sites across Greater London, a key one being
• Mission: Apple designs Macs, the best personal computers in the world, along with OS X, above their Covent Garden Store.
iLife, iWork and professional software. Apple leads the digital music revolution with • St Albans: R&D Centre working on silicon products. Established in 2017, leasing a 22,500 sq ft office to develop
its iPods and iTunes online store new graphics technology as it moves away from their supplier Imagination Technology (also in St Albans).
• Cambridge: Opened in 2015, R&D Centre working on Siri – located here due to Apple’s acquisition of a
Key UK & Ireland Operations Cambridge University Spin out (VocalIQ) which uses AI to develop a system that would allow humans and
7,400 Staff
computers to communicate more naturally. 30 staff are based here, including former VocalIQ staff. Apple have
(1,400 UK HQ but 4,911 incl 38 retail stores
6,000 Ireland) another similar R&D centre in Boston, USA that also works with MIT researchers to look at applications for A.I
Dublin • Cork: European HQ with 6,000 people (plus plans to add another 1,000 staff in 2018). Site opened in 1980 with
St Albans (R&D) 60 staff as a manufacturing site but these functions later moved to China. 1,000 AppleCare employees are
Cambridge (R&D) based here as well as Retail Operations, Government functions; PR; Enterprise Sales; Logistics; Testing, The Mac
Cork (EMEA HQ)
Assembly Plant with 360 staff. Components come from China and workers here assemble them in Cork for
EMEA markets, hence why they are not manufactured in China/lower shipping costs. 65% of employees are
London assigned to quality testing.
15Employee Distribution (Source: Linkedin Sept 2018) Two-Year Employment Growth Trajectory (Source: Linkedin Sept 2018)
Conclusions
• Engineering is a key growth function, up 9% from the previous 12 months. Apple have recruited less roles in IT
(down 9%) and Sales (down 38% ) compared to 12 months ago.
• Apple have increased headcount across the business by 5% over 2 years. The new HQ will initially hold 1,400
staff but has room for 3,000. At current growth rates the office space should suffice for the foreseeable future.
• If they continue to grow at 5% they’ll add 70 staff every 2 years, therefore it could be a couple of decades
before this is at capacity. This doesn’t take into account future acquisitions or an increase in growth rates.
• UK Employment Register shows headcount has increased 10% between 2013-18 (4,452-4,911).
16Areas of Interest / R&D Investment / Challenges Recent News
• R&D spend in 2017 was $11.6bn • May 2016: Apple invested $1 billion in Didi, a Chinese ride-sharing company that competes with Uber.
• Project Titan (Driverless Cars) • Sept 2016: Apple to move to new London HQ in Battersea Power Station, 1,400 staff from 8 London sites.
• Immersive Technologies (AR/VR) and Media/TV
• Oct: 2017: Apple Hires Jay Hunt as its European Creative Director from C4, signalling their ambitions in TV.
• 5G Technology (to support AR products which require lots of data/good digital infrastructure) Also
interested in the use of AR in Smart Cities. For example, communicating information to the public like • Feb: 18: Apple pushes forward with healthcare ambitions. Apple is preparing to launch a network of medical
clinics for its employees and their families, in what could be a way for the tech company to test out its broader
directions, superimposing AR on street views, arrows pointing to the nearest station etc. It could also ambitions in healthcare.
provide information on planning/where a new building will be/what it would look like.
• April 2018: Apple is now powered globally by 100% renewable energy As part of its commitment to combat
• Dark Data/unstructured data climate change and create a healthier environment, Apple announced its global facilities are powered with
• Health: Wearables; Glucose sensor, Apple Watch 100% clean energy. This achievement includes retail stores, offices, data centers and co-located facilities in 43
countries
• MIDAS Apple contact Sam Sharples expressed interested in public services partnerships with Tech Co's
• Apple currently has 25 operational renewable energy projects • June 2018: Apple has decided to work with Volkswagen for some of its self-driving car efforts. The plan, is to
turn some of Volkswagen’s T6 Transporter vans into autonomous shuttles for employees. Apple’s lengthy talks
“Simply put, we believe augmented reality is going to change the way we use technology forever,” pertaining to partnerships with manufacturers like BMW and Mercedes-Benz have also ended.
Tim Cook, CEO Apple 2018
GM Offer / Proposition and Opportunities GM Links
• Health Innovation / Diabetes research • AT / TN Spoken with Sam Sharples, UK Head of Government Affairs August 2018
• AR / VR / Immersive Technologies • Steve Wozniak visited Manchester 2015
• Energy projects / Heat Networks / Low Carbon Agenda • 88 Alumni from the Manchester Metropolitan University
• Graphene / Advanced Materials and Semi-conductors • 50 Alumni from the University of Salford
• Battery technology • 13 Alumni from the University of Bolton
• Media – Apple signalled ambitions in TV • DIT Account Manager is Mahesh Nandha mahesh.nandha@trade.gov.uk
• MediaCity / Vodafone 5G pilot project • Previous work with city on Project ‘Tomorrow’
17Key Contacts
Name Position Name Position
Tim Cook Chief Executive Officer John Giannandrea Chief of Machine Learning and AI Strategy
Before being named CEO in 2011, Tim was Apple’s Chief Operating Officer Graduate from University of Strathclyde and joined in 2018 overseeing the
and responsible for all of the company’s worldwide sales and operations, A.I strategy across the company and development of Core ML and Siri
including end-to-end management of Apple’s supply chain, sales activities, technologies. He previously led the A.I research team at Google.
and service and support in all markets and countries.
https://www.linkedin.com/in/johngiannandrea/
Jeff Williams Chief Operating Officer Deirdre O’Brien Vice President. People
Since 2010 has overseen Apple’s entire supply chain, service and support, Joined in 1988, responsible all HR functions including talent development
and the social responsibility initiatives. Also oversees the development of and analytics, recruiting, benefits, pay compensation and business
Apple Watch and is driving Apple’s health initiatives including ResearchKit, support; Deirdre will also oversee Apple University.
aimed at simplifying medical and health research. Played a key role in the
launch of iPhone, and has led worldwide operations for all products. https://www.apple.com/uk/leadership/deirdre-obrien/
Angela Ahrendts Senior Vice President, Retail Peter Engrob Nielsen Country Manager UK & Ireland
Joined in 2014, responsible for strategy, real estate & development and Joined in 2004 and has held a variety of Country Manager roles in Russia
operations of Apple’s physical stores, Apple’s online store and contact and Denmark before being appointed UK Country Manager in May 2018.
centers. Based in Cupertino.
https://www.linkedin.com/in/pederengrob/?originalSubdomain=uk
https://www.linkedin.com/in/angelaahrendts/
Jonny Ive Chief Design Officer Sam Sharps Head of Government Affairs, UK & Ireland at Apple
Joined in 1996 and responsible for design at Apple, including the look and Joined 2015 and took on current role in April 2018. Previously was with
feel of Apple hardware, user interface, packaging, major architectural projects Portland Communications and the Department of Culture Media and
such as Apple Park and Apple’s retail stores, as well as new ideas and future Sport and Department for Business Innovation and Skills. He is based
initiatives. Originally from London and earned a Bachelor of Arts degree at London.
Newcastle Polytechnic. Lives in San Francisco. https://www.linkedin.com/in/sam-sharps-21a21175/
Luca Maestri Chief Financial Officer John Hatch Managing Director, North of UK and Sweden
Joined in 2013, previously spent 20 years with General Motors where he Joined in 2013 as Switzerland lead, took on current role in 2015.
established GM’s regional Asia Pacific operations, including manufacturing Based in Manchester.
investments in China and Thailand.
https://www.linkedin.com/in/luca-maestri-082238/ https://www.linkedin.com/in/john-hatch-b8b09139/
18Summary Operational Footprint Intelligence
• Business: Social Media and Networking Service • US: Own and lease approx. 3m sq ft of office buildings for their corporate headquarters plus 130 acres of land
• Founded: 2004 could accommodate future growth. They also have 5m sq ft of leased office space globally.
• Global FTE’s 30,275 (2018) • Current lease periods expire between 2018-2038. Operating lease expenses were $363m as of 2017.
• Global offices: 30 countries • London: First opened in 2007 with 5 staff; Currently have offices in Fitzrovia (Rathbone Place 247,000sq ft) and
• CEO: Mark Zuckerberg Regents Place (Brock Street 219,000 sq ft). The new Kings Cross office will see FB lease 610,000 sq ft across
• HQ: 1601 Willow Rd; Menlo Park, California 94025 three offices and opens in 2021. The move will see FB double its current floorspace and have 6,000
• Revenue: $40.6bn workstations. Teams include Engineers and Developers that develop key FB products like ‘Workplace’ (started
• Products: Facebook; Instagram; Messenger; WhatsApp; Oculus VR; Watch in 2015 designed for businesses and their staff) ‘Roomapp’ (a social hangout in Cyberspace) and Oculus VR.
• Subsidiaries: Instagram; WhatsApp; Oculus VR The team will use A.I to identify hate speech/what content should be blocked. Also, engineers will work on
• Users: 2.2bn monthly active users (2018) integrating Oculus Go VR mobile headset into the FB platform. This is facebook's largest engineering team
• Mission: Give people the power to build community and bring the world closer outside the US. London is also the location of the ‘LDN Lab’, a new facebook incubator for start-ups.
• In 2016, Facebook signed a 15 year lease for their Fitzrovia office paying £16.9m/year with 30months rent free
from Great Portland Estates. This investment will create 1,500+ new UK jobs.
• Hyderabad: Opened in 2010 which was their fourth office in India that houses online advertising and developer
Key UK & Ireland Operations support teams. The centre also provides round the clock multi-lingual support to users/advertisers.
2,300 UK Staff • Data Centres: Located in Oregon; North Carolina; Sweden; Iowa; New Mexico; Singapore (opens 2022)
• Cambridge Massachusetts: Facebook announced they were opening a new office here which will be home to
Dublin EMEA HQ
‘facebook’s connectivity lab’ focussed on bringing internet access and technology to the 4bn people who don’t
have it.
• Dublin: Currently have 1,500 staff, facebook has been located in the Grand Canal area of Dublin for several
London (3 offices)
Cork years and is now apparently looking for 700,000 sq ft for 5,000 staff. The slow pace of new build housing in
Dublin is a problem for a lot of the big tech companies trying to attract staff.
• Cork: Hardware Engineering teams; Oculus VR Research including development of LED displays and screens.
19Employee Distribution (Source: Linkedin Sept 2018) Two-Year Employment Growth Trajectory (Source: Linkedin, Sept 2018)
Conclusions
• Key growth of functions include: HR, followed by Engineering and IT. They’ve also been recruiting significantly in
Project Management and Sales positions.
• Facebook have increased headcount across the company by 67% over two years. If they continue to grow at
this rate they’ll add another 1,541 staff by 2020 (bringing the total UK headcount to 3,841). A growth of 67%
again would add another 2,573 staff bringing headcount to 6,414 by 2022.
• In 2021, Facebook will move into a new 600,000 sq ft office that will house 2,300 staff but if the growth rate
continues they’ll be running out of space by 2022. Given the UK Employment Register shows headcount has
increased 967% between 2013-18 (90-960 staff), this means facebook will highly likely need new office space
much sooner.
20Areas of Interest / R&D Investment or Challenges Recent News
• R&D: AR/VR; A.I (Languages; Chatbots Video and txt mining/analysis; Tools to improve mental health; • June: 2018: FB fined for its role in the Cambridge Analytica scandal.
5G Technology to deliver better engagement (they helped spear the Telecom Infrastructure Project). • July 2018: FB doubles office space in London despite Brexit uncertainty for tech firms. The company will have
space for 6,000 workers at the new Kings Cross site opening in 2021, which will be three times their current
• Spent $7.8bn on R&D in 2017, a 32% jump on 2016, partly due to investing in new engineering and
workforce (set to reach 2,300 by the end of 2018). Facebooks Northern Europe MD Steve Hatch also reaffirms
tech functions for their R&D centre ‘Building 8 Lab’. This is part of effort to push into hardware, a new the company’s commitment to the UK despite Brexit.
area for the business. Robotics expert Frank Dellaert is based here. Other rumours about work carried
• July 18: Facebook ups A.I research with navigation tests. Facebook is teaching an AI system to navigate through
out here research into Camera and AR Technology; Drones to increase internet coverage for remote areas of New York City through the context of its surroundings as part of a project to help the system
understand human language. The research will help make A.I more reactive to human users, which could have
areas; Brain scanning technology for medical devices and prosthetics. implications for systems like smart networks.
• Challenges:
• Sept 18: FB is hiring Human Rights Director following the Rohingya abuses after UN investigators accused
• Must continue to retrain users and increase their level of engagement
Facebook’s platform of being used to incite racial hatred against Myanmar's Rohingya minority.
• Increasing scrutiny of social media’s role on mental health
• Revenue heavily dependent on advertising which is a risk
• Sept 18: FB introducing a new tool that will help the company to fact-check photos and videos. It's part of the
• User growth and engagement is heavily dependant on use through mobile and 3 rd parties (which may change and impact them) firm's latest efforts to stop fake news and misinformation from spreading on its site.
• Actions by Governments to restrict facebook access (e.g. China)
• Brand damage: Facebooks role in the spread of Fake News; Cambridge Analytica Scandal and their role in the 2016 US election • Sept 18: FB UK boss: “We want to give users more control and could do a much better job of helping users
• More competitors platforms that replicate FB capabilities (e.g. Google has integrated social functionality across search; video; Android) control their experience on the site to address data and privacy concerns”.
GM Offer / Proposition and Opportunities GM Links / Discussions
• Andrew Toolan met Steve Hatch, UK MD in 2016
• Immersive technologies (AR/VR)
• Social impact of technology – University of Manchester have conducted studies on the connections • Facebook’s EMEA Head of Operations Nicola Mendelsohn went to Manchester School for Girls
between social media use and mental health • 88 Alumni from the Manchester Metropolitan University
• Smart Cities
• 5 Alumni from the University of Salford
• Access to tech talent: Diversifying risk, scaling outside London as may soon outgrow their offices
• MediaCity / Vodafone 5G pilot project • 1 Alumni from the University of Bolton
• DIT Account Manager is Mahesh Nandha mahesh.nandha@trade.gov.uk
21Key Contacts DIT Account Manager
Name Position Name Position
Mark Zuckerberg Chairman and Chief Executive Steve Hatch UK and Ireland MD and VP Northern Europe
Mark founded the company in 2004 and is responsible for setting the overall Joined 2014 as UK and Ireland lead, promoted in 2016 as Northern
direction and product strategy for the company. He leads the design of Europe’s Regional Director. Also on the board of Trinity Mirror as a non-
facebook's service and development of its core technology and infrastructure. exec and the chair of CBI Tech Group Based in London. Email:
sth@fb.com
https://www.linkedin.com/in/steve-hatch-26901b14/
Sheryl Sandberg Chief Operating Officer Rob Cookson Head of Global Real Estate
Oversees the firm's business operations and was previously with Google and Joined in 2014. Previously with DTZ working in corporate real estate.
Chief of Staff for the US Treasury Department under President Clinton,. Was Director at Llewelyn Davies responsible for Urban Regen of Newcastle City
also with McKinsey & Company as a Management Consultant. Centre. Email: robcookson@fb.com
https://www.linkedin.com/in/sheryl-sandberg-5126652/ https://www.linkedin.com/in/rob-cookson-1063564/
Dave Wehner Chief Financial Officer Nicola Mendelsohn Vice President for EMEA Operations
Joined in 2012 and leads the finance, facilities and information technology Joined 2013, has particular focus on developing digital marketing
teams. Previously served as CFO of Zynga and MD at Allen & Company, an solutions + strengthening relationships with marketing and advertising
investment bank focused on Media and Technology. Based in San Francisco. communities. Also leads on developing resources for fast-developing
markets. Leeds University Grad / attended Manchester School for Girls
https://www.linkedin.com/in/dwehner/ https://www.linkedin.com/in/nicolamendelsohn1/ London based.
Mike Schroepfer Chief Technology Officer Leigh Thomas Head of Ecosystems Partnerships
Leads the development of the technology strategies and made significant Joined in 2017 and is helping establish and build the partner ecosystem
breakthroughs in fields like A.I and VR. Previously with Mozilla where he led across EMEA.
the global and open product development process behind Firefox.
Based in San Francisco
https://www.linkedin.com/in/schrep/ https://www.linkedin.com/in/erasahni/
Chris Cox Chief Product Officer Ranwa Sarkis Director of Global Operations, Worldwide Workplace
Chris leads the FB family of apps: Facebook, Instagram, WhatsApp, and Joined in 2011, previously with Google and Booz Allen.
Messenger. After earning his bachelor’s degree in symbolic systems from
Stanford University, Cox joined Facebook in 2005
https://www.linkedin.com/in/ranwa-sarkis-110185/
https://www.linkedin.com/in/chris-cox-2896b841/
22Summary Operational Footprint Intelligence
• Business: Electronic commerce; Cloud Computing • Have 12,000,000 sq ft of office space in North America and 7,466,00 sq ft of office globally
• Global FTE: 566,000 (2017) • Operate 131,149,000 sq ft of fulfilment space in N America and 67,832,000 sq ft of fulfilment space globally
• Global offices: 70 Offices in 50 Countries US (26) Europe (29) Asia Pacific (17) L America (6) • Own/lease corporate office fulfilment, sortation, delivery, warehouse operations, data centre, customer service ,
• CEO: Jeff Bezos physical stores and other facilities in N America, Europe and Asia
• HQ: 701 5th Ave, Seattle, Washington State 98104, USA • As of 2017, Amazon now have 465 Whole Food Market Stores in US and 7 Internationally
• Revenue: $117bn (2017) • UK: 6,500 corporate and R&D roles by end of 2018 – these teams look at cutting edge technology to create
• Products/Services: Key Business Pillars are 1) AWS (most profitable) 2) Online Marketplace and innovations for customers. Roles include software engineers; data scientists; technical and programme
3) Amazon Prime. Others include: Amazon Appstore; Echo; Kindle; Video; managers; UX designers; Cloud Computing Specialists; Flight operations.
Comixology; Alexa; Firestick; Whole Foods; Amazon Go. • London: UK operations started in 1998, originally in Slough and have invested £6.4bn in UK since 2010.
• Key subsidiaries: 40 including AWS; Whole Foods; Body Labs; Woot; Zappos; Twitch Currently 3 offices: Shoreditch, Holborn and Barbican. Houses software engineers and programmers working
• Mission: Our vision is to be earth's most customer-centric company; to build a place where across Amazon video service to support product development for living room devices, web and mobile apps.
people can come to find and discover anything they might want to buy online Also has AWS team. In 2017 a new 600,000 sq ft HQ opened at Principle Place building, Shoreditch doubling
centre capacity from 450-900 tech staff plus corporate roles. 2018 Amazon said they’d create an additional
5,000 UK jobs bringing workforce to 24,000. Shoreditch also site of ‘Fashion Photography Studio’.
• Cambridge: Team help to build and improve knowledge systems within Alexa, cloud based voice service used
Key UK & Ireland Operations Edinburgh on devices like Amazon Echo, Echo Dot; Amazon Tap; Fire TV Stick. Thy also work on Prime Air, delivery
19,000 Staff UK and Ireland
16 Fulfilment Centres system to get packages to customers in 30mins using drones.
Manchester 6,500 Corporate and R&D roles
• Edinburgh: First development (innovation) centre outside US, opened 2002. Houses developers, designers
2,500 Ireland
Team builds algorithms that power Amazon’s search capabilities to personalise shopping experience.
• Fulfilment Centres: 16 in UK including: Dunfermline; Doncaster; Leicester; Peterborough; Manchester; Bolton;
Dublin (AWS) Cambridge (Development Centre)
Rugeley; Swansea; Coventry; Daventry; Milton Keynes; Tilbury; Hemel Hempstead; Dunstable; Gourack. People
are employed in a range of positions, from operations to engineers HR and IT roles to employees handling
London (3 offices UK HQ &
customer orders. There are 40 fulfilment centres across EU (2018)
Development Team)
• Dublin: 2 locations and contains AWS
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