The Concept of Large- Scale Demonstrators Allan Mayo Head, Services Policy Unit Dept for Business, UK Growth and Open Service Innovation Seminar, 26 June, Amsterdam

2 TWO EU FUNDED PROJECTS ON SERVICE INNOVATION

3 We face major challenges A growing and ageing population 15.4m people with at least one LTC in England Numbers will grow (252% increase in 50 years) Growth in multiple conditions Consume 70% of health and social care budget Lost productivity through illness costs UKplc People want to be supported to live independently (minimise hospital admissions)

4 Societal challenges - Population

5 Urban Congestion

6 Energy Intensity and Environment

7 Desertification

8 care profs Friends and family Tele-carer Care response service Emergency services NHS Direct Care professionals Home Hub Appliance Elderly living independently Records NHS Social Care Housing Personal Health Record Telehealth Telecare Home automation Cholesterol monitor Blood- pressure cuff Pedometer Glucose meter Sensor networks Medication tracking Lights Doors / Windows Motion / Activity Bed Kitchen Bathroom Service Hub

9 Smart Grids 9 Smart Street Lighting Power Plant Renewable Energy Factory automation Plug-in Hybrid Electric Vehicle Home and Building Automation Smart Metering Network

10 Intelligent Transport Systems

11 Smart Cities

12 Barriers to Adoption Market Building Quality Standards & Interoperability Organisational Readiness Awareness Levers & Incentives Evidence & Business Case

13 Large Scale Technology Challenges Define Objectives Technology Roadmaps Model Outcomes R&D Programmes Test Sub Systems Test Engine on a Rig Full Production

14 Introducing new Pharmaceuticals Phase 1 Clinical Trials  Small scale sample, using laboratory product Phase 2 Trial  Larger sample to provide statistical evidence of clinical impact and any adverse effects Phase 3 Trial  Industrial scale production, precise tolerances

15 Services are no different: AAL Preventative Technology Grant (PTG) Whole System Demonstrator (WSD) {clinical evidence} Assisted Living Innovation Platform (ALIP) {technology development} d elivering a ssisted l iving l ifestyles a t s cale { next stage of evidence with even more users } ml

16 Whole System Demonstrator programme Two year study across 3 sites (Newham, Kent and Cornwall), 238 GP practices and over 6,000 people Evaluation co-ordinated by 6 leading academic institutions (UCL, Imperial College, LSE, Oxford & Manchester, Nuffield Trust) Early headline findings are that telehealth can reduce;  mortality by 45%  emergency admissions by 20%  A&E visits by 15%  bed days by 14%  elective admissions by 14% Quality of life remains the same – important as it demonstrates no loss of amenity

17 Dallas £20m investment from Technology Strategy Board Total investment of £37m due to co-funding from others  e.g. £5m from Scottish Government, Highlands and Islands Enterprise and Scottish Enterprise 4 communities reaching 169,000 people by Summer 2015  the tipping point for going to scale

18 Three Million Lives A partnership of industry, NHS/social care family and government (Concordat signed 19 January 2012) Will need a new business offering from industry Will mean NHS/social care responding to that offer by building different service offerings Government will need to create the environment for success Will mean patients & workforce knowing about the offer This is about service transformation – creating a movement

19 Definition of a Large Scale Demonstrator “A systematic and needs driven approach to tackling significant societal/economic challenges, that moves from small-scale prototypes or pilot projects to testing a large number of interrelated technologies and service concepts under real-life conditions, at a scale which provides all stakeholders with the knowledge and confidence to transform the established structures and systems and to introduce new and better models and modes of delivery."

20 Key Characteristics of LSDs The purpose is to de-risk innovative/transformative solutions and enable procurement of new services, while providing insights into new technological opportunities, and the need for standards and new skills in the community. Leadership of the LSD resides with the owner of the challenge, typically the local/regional authority. LSDs are user driven: it is not so much the technology we are testing, but the citizen’s or consumer’s response to the proposed change to the whole system. The technology is robust and secure, scalable and interoperable. Improved, intelligent infrastructure and better management of data, to which the public has access, are usually key components of the solution. The size/scale is that which gives stakeholders confidence that they understand and can manage the transformation process.

21 Themes ripe for LSDs The move from hospitalisation and care homes for the elderly to care in their homes. The transition from a centralised carbon oriented grid to smarter, distributed renewable energy for all types of use. The shift from fragmented modes of transport to more integrated intelligent transport systems. To effect better management and recycling of resources, not least water. To develop smarter, sustainable and inclusive communities in both urban and rural environments

22 Tourism Regions

23 superfast broadband

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25 People and Skills R&D Regional Demonstrator Or Societal Challenge Infrastructure Market Framework EU Perspective Structural Funds Shared Experience ESIC Support Interoperable Standards Gazelles Emerging Industries Cloud Services Location Services Sustainability Services Finance

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