The Future Of Business Link IDB Business Support Stakeholder by rraul

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									    The Future Of Business Link
       IDB Business Support
          Stakeholder Presentation
                        Michael Carr
                       2nd December 2005



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                                       Agenda

            • emda Structure

            • Strategy for Business Support

            • Business Link Transition

            • Wider Context



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              Business Services Directorate

   • Formed in April 2005 following amalgamation of
     2 Departmental Groups
        – Business Services (formally BSEM)
        – International (including International Trade & Investment,
          Tourism and East Midlands International Connections)


   • Headed by Michael Carr, Executive Director,
     since June 2005




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              East Midlands Development Agency
                                                                     Chief
                                                                   Executive
                                                                   Jeff Moore


                                                                                                             Deputy Chief Executive/
                                                                                                              Executive Director of
                                                                                                                    Strategy
     Executive Director of            Executive Director of                Executive Director of             Abby Johnson Brennan
        Regeneration                   Corporate Services                   Business Services
       Diana Gilhespy                     Glenn Harris                        Michael Carr




  Rural             Partnerships    Human              Finance      International         Business       Sustainable             Policy &
 Director              Director    Resources           Director        Director           Support        Development           Communicati
   Ray               Ian Lodder     Director         John Tatham   David Wallace          Director         Director            ons Director
 Edwards                            Matthew                                             John O’Reilly   Anthony Payne           Sue Kirby
                                    Posaner


       Key Activities                    Key Activities                     Key Activities                      Key Activities

- Partnerships                     - Finance                       - Business Investment                - Strategy
- SSP                              - Performance Management        - Business Support                   - Regional Affairs
- Urban and Property               - ICT/Knowledge                 - Business Link                      - European and Public Policy
- Operations                       Management                      - Sector Innovation                  - Sustainable Development
- Rural Policy/Development         - Human Resources               - European Funding                   - Planning and Infrastructure
- Enterprise Development           - Health and Safety             - Tourism                            - Economic Inclusion
- Skills Development               - Customer Services             - International Investment           - Diversity
                                   - Facilities                    - Trade Development                  - Communications
                                                                                                        - Marketing
                                                                                                        - Economic Policy




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                    Business Support Team

                      Director of Business Support   John O’Reilly

                         Team                          Team Leader

                Business Link Contracts                Mirella Barnes

                  Business Investment                  Jonathan Lowe

                         ERDF                        Brenden Byczkowski

                   Business Support                      Alex Slater




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                        International Team

                         International Director   David Wallace

                               Team                         Head of Team

                     International Investment                 Nicola Kidd

                       East Midlands Tourism               Richard Dickinson

             East Midlands International Connections       Nelson Blackley

                         Sector Innovation                    Chris Brock

                      UK Trade & Investment                 Peter Hogarth




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          Business Services Strands 2006/7
                          Strand                   Champions

          Business Support, Enterprise and ICT     John O’Reilly

            Employment, Learning and Skills        John O’Reilly

       International Trade and Inward Investment   David Wallace

               Tourism, Culture and Sport          David Wallace




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                  Business Services Strands
                          Strand                               Champions

          Business Support, Enterprise and ICT                 John O’Reilly

            Employment, Learning and Skills                    John O’Reilly

       International Trade and Inward Investment               David Wallace

               Tourism, Culture and Sport                      David Wallace


                                       Other Strands
   • Econ. Growth, Energy & Environment        • Site Provision & Development
   • Innovation                                • Transport & Planning
   • Rural Development                         • Urban Regeneration

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       Strategy for Business Support in the
                  East Midlands
   • Launched in April 2005
   • Designed by businesses, for businesses
        – Supported by Business Support Forum

   • Key Aims
        – To increase the number of SMEs trading in the East Midlands
        – To improve the survival rate of new businesses
        – To increase the growth rate and profitability of existing SMEs


          “To help business in the region start, grow and compete more
                         effectively and more profitably”


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       Strategy for Business Support in the
                  East Midlands
                        Key Improvement Projects
        • Business Link Transition         • Universal Start Up Pilot

        • Regional IT Platform             • Mentoring Escalator Pilot

        • Capacity Building                • High Growth Coaching Pilot

        • Specialist Brokers               • Intermediary Strategy


          “To help business in the region start, grow and compete more
                         effectively and more profitably”

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       Strategy for Business Support in the
                  East Midlands
                        Key Improvement Projects
        •Business Link Transition          • Universal Start Up Pilot

        •Regional IT Platform              • Mentoring Escalator Pilot

        • Capacity Building                • High Growth Coaching Pilot

        • Specialist Brokers               • Intermediary Strategy


          “To help business in the region start, grow and compete more
                         effectively and more profitably”

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                                Background

   • National Framework

   • Emda progress to date

   • Business Link IDB Service




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                     Customer Perceptions
• Business Link performance
   – Hybrid penetration 43% (61,000 business and Individuals)
   – Customer satisfaction reached 92% in 2004/05




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                     Customer Perceptions
• Business Link performance
   – Hybrid penetration 43% (61,000 business and Individuals)
   – Customer satisfaction reached 92% in 2004/05


• Research of Business Link usage and brand awareness
   –   11% were users of Business Links
   –   64% awareness among non-users
   –   26% found business support easy to access
   –   quality of the current service is inconsistent
   –   personal contact with an advisor is the preferred delivery




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                         Drivers for Change

   • Improve quality and consistency of service

   • Strengthen the BL brand and increase take up
     of business support

   • Increase effectiveness and efficiency of service
     provision

   • Improve KPI performance

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            Principles of the Future Model

   • Maintain level of funding and re-invest in
     customer facing activities
   • Maintain emda’s strategic role
   • Support the Business Link service with IT
     platform
   • 3 + 2 year contract
   • Maintain a local presence in the eyes of clients


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              Option 1 – Status Quo (Do Nothing)

                                                      •Contract Manage 5 County BLO
                                                      Contracts
                                         EMDA
                                                      •No common IT systems – Web,
                                                      CRM, Brokerage Platforms etc.




                           BLN     BLD   BLLR   BLL     BLNH




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                    Option 2 – 5 BLOs + IT Platform

                                                                                         •Financial Mgt
                                                                      EMDA               •Contract Mgt, Training/Standards
                                                                                         •NPD & Strategic Development



                                                                                           •Emda has 6 contracts – 1 with
                     IT Platform                                                           the IT Platform provider and 5 with
                                                                                           County Based BLOs
                                                       g?
                                                   chin
                                              Swit                                         •BLOs Plug and Play into systems
                                         Call
                                                                                           and Back Office Support Services
                                                                                           offered by the IT Platform
       •Components - Web, CRM,
       Supplier Databases, diagnostic,                                                     •Emda owns the Information, IT
       Trends/Economic data,                                                               Plaftform is the Guardian and
                                                                                           Anaylst, BLOs are the users and
       •Competencies - QA, Marketing,                                                      suppliers of the data
       Call Switching?


                                                                                                          •No Central Call Handling/
                                                                                                          Information Service
                                          IDB                IDB      IDB       IDB         IDB           •Advisers in field providing
                                         Notts              Derbys   Lincs     Leics       North’ts       generalist and Specialist
                                          Ltd                Ltd      Ltd        Ltd         Ltd          Info. Diagnostic &
                                                                                                          Brokerage services
                                      Skills             Skills       Skills    Skills      Skills        •Employed by County
                                     Brokers            Brokers      Brokers   Brokers     Brokers        Based Organisations




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               Option 3 – Regionalisation
          Single contract for regional delivery
                                                                               •Financial Mgt
                                                 EMDA                          •Contract Mgt, Standards
                                                                               •NPD & Strategic Development


                                                                                                      •Single Contract with
                                                                                                      one organisation to
                                         Regional                                                     manage MI/ICT
                                                                                                      Platform
                                       Business Link                    IT Platform                   (CRM/Brokerage etc)
                                                                  Supplier Databases/Brokerage        plus all IDB delivery
                                         Provider                    Regional CRM System
                                                                         Economic data                •Central Business
                                           Support Services
                                                                                                      Informational Call
                                      (QA, MI, NPD, Mktg, Web,
                            Spec                                       ss                             Handling service
                                 iali
                            Brok st    Info & Research, Events) Busine .
                                 er                                   fo
                                  s                                 n
                                                                    I                                 •Regional BLO
                                                                                                      employs all advisers
                                                                                                      on a Hub & Spoke
                                                                                                      arrangement,
                                                                                                      ensuring “local”
                                                                                                      presence

                                                                                                 •Advisers in field providing
                                                                                                 generalist Diagnostic &
                         DB            DB            DB          DB              DB              Brokerage services
                        Notts         Derbys        Lincs       Leics          North’ts
                                                                                                 •Specialist either based at
                                                                                                 the centre or at County level
                         Skills        Skills       Skills       Skills         Skills
                        Brokers       Brokers      Brokers      Brokers        Brokers




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         Option 4 – Regional IDB with Separate IT
                         Platform
                                                                      •Financial Mgt
                                               EMDA                   •Contract Mgt, Standards             Partner
                                                                      •NPD & Strategic Development




                              Spec
                                               BL
                                   iali                               ess
                              Brok st                           Busin ation
                                   ers      Provider            Infor
                                                                     m                   Regional IT Platform
                                             Support Services                           Supplier Databases/Brokerage
                                        (QA, MI, NPD, Mktg, Web,                           Regional CRM System
                                         Info & Research, Events)             Plug & Play      Economic data




                                                                                      Partner            Partner


                                                                                          •Advisers in field providing
                                                                                          generalist Diagnostic &
                     DB        DB               DB          DB             DB             Brokerage services
                    Notts     Derbys           Lincs       Leics         North’ts
                                                                                          •Employed by Regional
                                                                                          BLO for DB provision
                     Skills    Skills          Skills      Skills          Skills
                    Brokers   Brokers         Brokers     Brokers         Brokers




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                               Stakeholders


   • Consultation Meetings



   • General support for regional models




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                                         Ongoing Operating Costs
           OngoingOperating Costs



                                    £25.0M                   £20.6M
                                                £20.1M
                                    £20.0M                                 £17.4M        £17.4M
                                    £15.0M
                                    £10.0M                                                                  Regional IT
                                                                                                            Admin
                                    £5.0M
                                                                                                            Direct
                                    £0.0M
                                              Base Case      County         Single      Regional
                                                             Delivery      Contract     Delivery
                                                                    Options
                                     Excludes costs w ithin emda and assumes no change in the number of "on the
                                     ground" advisors and that contracts w ith UKTI, LSC and others continue




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                                      Risk Profile
   Model      Pro’s                                        Con’s

   Option 1   • No disruption so low risk                  •   No change
              • Maintains existing relationships           •   High cost
                                                           •   No IT platform
                                                           •   U turn
   Option 2   • Maintained an identifiable local           •   Highest cost option
                presence                                   •   Vulnerable to spending cuts
              • Lower risk of losing local relationships   •   Significant emda team
                                                           •   5 IT interfaces
   Option 3   • Regional efficiency                        • Less obvious local presence, needs clear
              • Consistent delivery                          local structure
              • Seamless interface with IT systems         • Loss of independent IT Platform
   Option 4   • Regional efficiency                        • Less obvious local presence, needs clear
              • Consistent delivery                          local structure
              • Independent IT platform




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                     Recommended Option


   • Model 4 was the preferred option

   • A single regional contract for the Business Link
     service in the East Midlands was tendered in
     November 2005




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                              Why go regional?
       • Improved local delivery to all customers by providing
         more advisers resulting from efficiencies in existing back
         office functions
       • Consistent delivery of IDB services that are more
         responsive to the needs of businesses
       • More rigorous Training and Quality Assurance leading to
         better advice
       • Easier alignment of other business support services with
         Business Link brand
       • Independent regional IT platform to support will allow:
            –   Improved access to relevant information for business customers
            –   Better partnership working with other business service providers
            –   The use of improved management information systems




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                    Risks Associated with Transition
 Risk                                                                                                           Grade
 New IDB Provider will be dependent on a fully functioning Regional IT Platform. Until built and tested,
                                                                                                                   H
 there is a risk that it will not be “fit for purpose
 Implementation of the new model may disrupt delivery of IDB, reducing efficiency and adversely affecting
                                                                                                                   H
 KPI performance
 Reduced pooled outputs may occur during the transition period                                                     H
 New model fails to win favour with stakeholders; impacting on emda’s reputation                                   H
 Quality of tenders received falls short                                                                           H
 Insufficient capacity and capability within emda to execute the changes effectively                               H
 emda fails to communicate changes effectively internally                                                          H
 Funding beyond the current funding settlement is insufficient to fulfil the contract                              H

 The CPRG Approval process delays the implementation of new contracts.                                             M

 Key Business Link staff become disillusioned and leave the network                                                M
 A single IDB delivery organisation carries dependency risks                                                       M
 Funding from partners (LSC, UKTI, Europe or SSPs) is less than expected                                           M
 The ITT for the regional model is unattractive to potential bidders                                               M
 The mix of advisers from different organisations during the transition will result in different cultures and
                                                                                                                   M
 have a negative impact on performance




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                                                 Timetable
 Advertise Tender Opportunity                         31 October
                                                         2005
 Run Tender Presentation                            18th November       Joint event with LSC to explain contract
                                                         2005           opportunity to interested parties

 Return of Expression of Interests (EoIs) from      25th November
 potential contractors                                   2005

 Evaluation of EoI against Pre Qualification         9th December
 Questionnaires                                           2005

 Issue full Invitation to Tender (ITT)               9th December
                                                          2005          Stage 2 of process: includes opportunity
                                                                        for selected candidates to seek
 Return of full ITN                                  27th January       clarification and undertake discussions
                                                         2006

 Evaluation of tenders completed                      31st March        Includes opportunity for negotiations
                                                         2006

 Contractors informed                                 31st March
                                                         2006
 Transition Year                                    1st April 2006 to
                                                    31st March 2007




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                               Regional IT Platform

                                   Brokerage System

                                       Integration




                                                          e-Marketing
                     Website


                                       Regional
                                        CRM




                                   Knowledge System


                                  Business Intelligence


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                        Regional IT Platform

         • Commencing Implementation of IT
           Platform from April 2006

         • Managed by IS System Provider

         • Partners (LSC, UKT&I) working with emda
           to develop the system




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                             Wider Context
         • Still need to look further at the bigger
           picture
             – Specialist IDB
             – Solution Provision


         • Needs to assess the merits of possible
           partners
             –   Sector support organisations
             –   Specialist representation groups
             –   Providers of business support solutions
             –   Private sectors




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                             Wider Context
         • Need to fit with the National and Regional
           agendas
             –   De-proliferation through alignment
             –   CSR 2007
             –   East Midlands RES
             –   Employments, Skills & Productivity (esp) partnership

         • Aiming to build a more integrated
           approach
             –   On-going internal review
             –   Closer alignment with SSPs and other partners
             –   Challenge to current service providers
             –   Building towards 2007/8



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