ADS_SITC_Briefing_Note by panniuniu

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									                                                  Security Innovation and Technology Consortium
                                                                               BRIEFING NOTE
                                                                                     th
                                                                                   9 July 2011
                                   Business Case: A|D|S SITC

                              Re: Proposed Brigading with A/D/S

Introduction

This document sets out proposals for the continuance of the Security Innovation and
Technology Consortium (SITC), following the cessation of the public funding stream that has
allowed the consortium to become the organisation that it currently is.

SITC (Security, Innovation and Technology Consortium) is a quasi Trade Association whose
membership aims and articles mirror closely the aims and objectives of A|D|S. It was
established by the South East of England Development Agency (SEEDA) in 2008 with the
principal aim of increasing the visibility and traction of security technology companies at
Technical Readiness Level (TRL) range 4 – 7 on a 3 year contract. SITC is a “not for profit”
company limited by guarantee.

From its inception in April 2008, SITC has developed into a 500+ strong membership body,
comprising of approximately 380 SME‟s, 70 large corporations, 21 universities and 9
government organizations. Among this membership are some 20 members from overseas.

Issues for Review

        Personnel

        SITC has two paid members of staff: The CEO, Steve Swain (full time) and Paul Osborne
        (3 days a week), who is the current company secretary, manages the SIGNATURE
        project and project manages many of the SITC activities.

        Legal

  i.       Currently SITC is receiving income generation from an EU Signature Project which is
           due to complete its main deliverables around October 2011. If SITC ceases to
           become a legal entity before this date, there could be potential loss of revenue from
           the Project.

  ii.      The current SITC Articles of Association and the Memorandum of Association have
           been reviewed and understandably these are closely tied to the South East and also
           SEEDA specifically. It therefore follows that there is a discrepancy between the
           Articles of SITC and those of A|D|S. This can be addressed by:

                       Allowing the continuation of SITC (to enable the continuation of „Signature
                        funding‟).

                       Having received a signed letter of understanding that SITC as a separate
                        company limited by guarantee will cease to exist or become dormant in
                        April 2012.

                       Noting that Lord Freeman the current chairman has indicated that he is
                        willing to continue to front SITC in an unpaid caretaker role.

 iii.      The current remaining personnel (two), will continue to work for SITC until such times
           as SITC ceases legally and then new contracts, where appropriate, will be negotiated
           under A|D|S SITC.
     Governance

     The existing Board comprises of the Chairman, CEO and 11 Non-Executive Board
     Members drawn from a variety of Sector related Stakeholders.
                 st
     As from 1 August 2012, it is proposed that the Board structure should be reduced in size
     from 13 to 3. It is A|D|S SITC‟s proposal to have a paid A|D|S SITC Director and an
     elected by members committee on a 3 year rolling programme.

     A|D|S SITC membership will change to a fee paying membership of £150 pa each (pro
                            st
     rata at £75) from the 1 August 2011 to support the paid Director post and revised Terms
     of Reference.

     Political

     SITC, under the guidance of Lord Freeman, has established itself politically and has a
     good reputation within the Industry and Stakeholders generally.

     Lord Freeman has indicated that he will continue as an unpaid Chairman until the
     transition takes place.

     Politically, A|D|S should be perceived in a “good light” both for preventing SITC from
     terminating at the end of the contract and for the continued support to the Security Sector
     in SMEs. This is topical, both in the light of the Green and White papers and the
     continuation of the OSCT Home Office Technology Demonstrator Programme.

Option 1 for Continued Existence of SITC

The favoured option (option 1) for the continuance of the consortium is for SITC to become a
Special Interest Group (SIG) with funding components and existing staff. The advantages for
this option are:

        Large measure of continuity maintained.
        Funding stream under “Signature” maintained.
        Potential for new funded EU Projects.
        Higher chance of membership retention and migration.
        Branding, reputation and niche appeal retained.
        Prevent fragmentation and loss to other Trade Organisations.
        Enhance the profile and credibility of A|D|S

The disadvantages are:

        Funding will be problematic and uncertain.
        Risk to A|D|S from unforeseen liabilities.
        Membership attrition a risk

Benefits and Rational for this option

a)   Increase market share and Security Sector political influence.
b)   Increase income opportunities from membership fees.
c)   Support SMEs specifically and industry generally.
d)   Provide new SIG for existing A|D|S Members.
e)   Prevent competitive fragmentation.
f)   Increase marketing opportunities at Security events i.e. HOSDB and PSEs.
g)   Support membership growth targets.
h)   Gain existing high reputation brand.
i)   Currently SITC has a SE Regional emphasis. This proposal would expand the remit to a
     national level with international influence.
j) SITC members would benefit from exposure to the wider A|D|S community and vice
   versa.
k) This would create an SME nursery as evidenced at the SITC pavilion at HOSDB.
l) This group would enhance the existing A|D|S SIG portfolio and could be rolled into
   complement the new capability areas of CAST.
m) This group would further emphasis the industry strength in this area and form an
   important component in an holistic capability offering.
n) Greater membership satisfaction through opportunities for networking.

The opportunities to A|D|S are significant and that this opportunity will not be repeated. If
A|D|S does not pick up SITC, it will fold and this would have a damaging effect on our
reputation, to the industry and other members as a whole.

SITC have developed an offering which is both innovative and international and, whilst it
overlaps A|D|S own offering, it is highly attractive to very small SME‟s and major primes that
were courting them.

From the SME perspective the loss of the heavily subsidized SITC model is a big blow but
through this business case A|D|S is in a position to offer a good service on the side of our
existing offering.

SITC is a success story and have managed to punch well above their weight with significant
political and senior support from within the enforcement services and government.

The risk to A|D|S is minimized due to the „Signature‟ funding. The migration timescale is both
realistic and equitable.

During the lead in time SITC will be kept close enough to offer real support but not so close
as to make severance unattainable. A|D|S is entirely content that SITC will become a real
asset to them and they welcome this opportunity.

Conclusions

The current economic situation prevailing in the UK means that there is a lack of public
funding to enable SITC to continue it its current format. A membership survey for fees of
sufficient magnitude to enable SITC‟s continued existence as an independent entity has
already been explored and dismissed owing to the lack of support.

Therefore the proposed option is the only feasible solution if SITC is to continue to offer
benefits to the UK Security Sector community, both on the national and international stage.

The merger will also provide additional benefits to SITC members through access to the
benefits that A|D|S provides, as set out in Appendix A

There are two specific decisions that members are being asked to vote upon.

     1. Approve the merger with A|D|S

     2. Approve the reduction in the statutory board size from 6 to 2 (the intention is to have
        an on-going advisory committee voted in by members and subject to annual review)



Stephen Swain
Chief Executive Officer
                                                                                           Appendix A
                                   Exclusive Members Benefits

INTELLIGENCE:

Online Tender bulletins: worldwide business opportunities circulated to Members as they arise.
Product sourcing: our global service actively and impartially connects supply requests with suppliers.
Advice: 100 years of Policing experience independent of forces and suppliers.
Access to the A/D/S process for obtaining individual security clearances

MARKETING:

Public Security Journal: a 36-page quarterly magazine sent to readers who include 24 department
heads in every UK Police Force, prisons, customs and all UK public security agencies, plus numerous
British Embassies around the world and other key contacts. A total circulation of over 5,000.
Public Security: additional advertising opportunity for Members and non-members.
Public Security Directory: FREE annual listing of our 500 Member companies which is circulated to UK
agencies and selected British Embassies overseas. A total circulation of 2,000 copies, plus additional
advertising opportunities for Members and non-members.
Contacts: a database of contacts in UK and many countries overseas.
Website listing: a linked listing on our web site.
Logo Use: a respected, registered, recognised mark of ethical integrity and international credibility.

REPRESENTATION:

RISC: A|D|S is a leading member of the UK Security and Resilience Industry Suppliers‟ Community
(www.riscuk.org); the overarching body representing suppliers in the UK security sector to Government
on strategic issues of national security and resilience. RISC is engaging positively with the UK
Government to bring industrial capability in support of UK security counter-terrorism policy and practice.

 Government liaison: A|D|S represent our Members‟ interests through RISC and independently at
regular meetings and contact with various Government departments and agencies at all levels including
(but not limited to): the National Security Secretariat, the Home Office, the Office for Security and
Counter Terrorism (OSCT), the Home Office Scientific Development Branch (HOSDB), the Foreign and
Commonwealth Office (FCO), the Association of Chief Police Officers (ACPO), UK Trade and
Investment Defence & Security Organisation (UKTI DSO), the Civil Contingencies Secretariat (CCS) in
the Cabinet Office, the Security Innovation and Technology Consortium (SITC) and the UK Ministry of
Defence (MoD).

Policy issues and advice: Representation of Members‟ capabilities and requirements to central
Government on a wide range of policy, trade, procurement, international, innovation and marketing
matters relating to national security and resilience.

International representation: Security policy advocacy at the international level through membership of
the Security Commission within the AeroSpace and Defence Industries Association of Europe (ASD)
and liaison with other partners overseas.

EVENTS:

A|D|S organise the annual Security and Policing (formally HOSDB) exhibition which in 2011 attracted
over 3,500 visitors from 54 countries.
Access to events/exhibitions worldwide including cost effective Public Security Exhibitions (PSEs).
Opportunities to participate in UK „Pavilions‟ at overseas events
Regular security policy breakfast meetings in London (inclusive of membership fees).

NETWORKING:
Member-only Industry briefings/seminars.
Annual Networking Reception at a prestigious central London venue.
Access to over 50 special interest groups ac

								
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