Local Authority e- Procurement Targets 2005 & UK online for business (UKon4b) Paul Keegan Deputy Director of UK online for business 3 June 2003

Agenda UK online for business SME Perspective on the role of e business LA eProcurement Opportunity/Threat UK online for business offer Q&A

UK online for business Objectives Assisting companies to achieve greater productivity and competitiveness through the deeper, more integrated use of ICT. Make the UK the best place in the world for e-business, with an extensive and competitive broadband market, judged using international comparative measures of business uptake and use of ICT.

UK online for business SME & Mid-Market Focus < 250 People –99.8% of companies –55.4% of employees –45.4% of GDP –3.5 million businesses < 500 People –32% of total ICT spend –€ 44 billon spend in 2002

Advisor Network Media Relations. Market Awareness Channels Marketing Support for Events Content & Collateral Website Call Centre Demonstrations Research UK online for business Headlines

Drivers & Barriers SMEs need Quick wins Solutions Business Case with ROI Confidence & Trust Impartial Advice and Guidance

E-Procurement the challenge 338 Local Authorities, 1.8 million employees Every minute council officers spend £200,000 on goods and services + £20,000 on administration £25 billion per annum in England and Wales Number of purchases per annum million £2.5 billion on transactions All Local Authority purchasing to take advantage of e-procurement by 2005, Pathfinder by 2004

E-Procurement the suppliers 800,000 firms currently supply goods and services to Local Authorities Many are not e-enabled Many only supply locally Significant risk to supplier SME’s

E-Procurement the status A survey conducted by ODPM through August to October 2002 showed that of the 168 authorities that responded: 85% of authorities had taken steps to meet 2005 e-government targets 35% of authorities had completed a business case for e-procurement Only 13% would have implemented e-procurement by the end of 2002

E-Procurement the threats LA Purchasing consolidation could marginalise smaller suppliers Online LA’s will have access to wider choice of suppliers Non e-enabled suppliers will be excluded Rural business with poor telecomms provision disadvantaged

E-Procurement the worries Potential business failures and reduced regional GDP Lack of involvement of LA Economic Development Director means that effect on SME suppliers not considered Narrow interpretation of LA target leading to focus on ROI and accounting practice Concentration on technical solutions to achieve target ignores people and process

E-Procurement the supplier angle Currently the programme is being driven from an IT perspective, enabling LA to purchase online and achieve cost savings This is being widened to consider the people and the processes it affects It has yet to address the supplier base that it affects – this is UKon4b role

The Opportunity To ensure that the businesses involved can continue to do business with the LAs when they go live with e-Procurement To use the e-Procurement agenda as a driver for greater adoption of ICT by businesses and the integration of it further within their business process to increase productivity

UKon4b as a messenger Articulate case on impact of achieving target on local economy LA Governance ICT Enablement Pulling the issues together - by facilitating the discussion, communicating the Business Case and supporting the local businesses through its networks. UKon4b/ODPM

UKon4b as a facilitator Stakeholders Office of the Deputy Prime Minister –Leads initiative Whitehall –Develop a joint approach Office of Government Commerce –Leads on advice on procurement for Public Sector Local Authorities –IT champions (officials) –IT Portfolio Holder (elected member) –Directors of Economic Development Regional Development Agencies –Responsibility for health of Regional economy Regional Champions –UKon4b in the Regions Skills & Learning Councils –Skills and training agenda ICT Industry –Encourage participation from existing and potential partners Business Links –ICT Advisers and UKon4b delivery channel

UKon4b as a knowledge provider UKon4b has the content and collateral –which can help lever the resources to assist affected SMEs not only to access the e- procurement opportunity –but also appreciate and take advantage of the wider competitive advantage offered by the investment in ICT

“The UKon4b Offer” Encourage supplier adoption An offer to local Channels (BLs, eBusiness Clubs, resellers, Local Authority Business Clubs etc) with full details on running, operating and presenting an effective Supplier adoption seminar. A dynamic web based resource to be created by UKon4b for all channels including a “roadmap” written by our industry partners for the SME supplier adopter highlighting all the benefits of ICT investment and spelling out the harsh alternative.Target date July 2003

Awareness Events e.g Slough event Public Sector Supplier db & survey Awareness Events Interest in Adoption 1:1 Clinics BLBW IDeA & ICT Suppliers UFI Offering UKon4b “event in a box” Funding Requirement Attendees Continuous support leading to 2nd generation e-technology adoption

S M E channel ©Business Link West Ltd Awareness road show [Ufi]; 1 st contact form completed 1:1 ‘holistic’ diagnostic [Business Link] ‘Agents of Change’ student placements Further training opportunities [LearnDirect] eBusiness Club & other advisory services { Work project [LSC/ESF] Business Link West + brokerage Connexions, FE Colleges & universities } Marketing, events & PR sub-channel Notice of intention & invitation from the Public Sector body Basic task orientated IT skills training [BLW training suppliers ] e Capability Mark Accreditation

Key Contacts UKon4b Paul Keegan –Tel

Local Authority e- Procurement Targets 2005 & UK online for business