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 businessObjectives

• 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 businessSME & 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 businessHeadlines

Drivers & BarriersSMEs 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 35-38 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 statusA 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 facilitatorStakeholders

• 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 Eventse.g Slough event

PublicSector

Supplierdb & survey

Awareness Events

Interest in Adoption

1:1 Clinics

BLBW

IDeA &ICT Suppliers

UFI Offering

UKon4b“event in a box”

FundingRequirement

Attendees

Continuous support leading to

2nd generation e-technology adoption

S M E channel

©Business Link West Ltd 0117 973 7373

Awareness road show [Ufi];1st contact form completed

1:1 ‘holistic’ diagnostic [Business Link]

‘Agents of Change’ student placements

Further training opportunities [LearnDirect]

eBusiness Club & other advisory services

{IT @ Work project [LSC/ESF]Business Link West + brokerage

Connexions, FE Colleges & universities}

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Notice of intention & invitation from the Public Sector body

Basic task orientated IT skills training [BLW training suppliers]

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Key ContactsUKon4b

• Paul Keegan– paul.keegan@dti.gsi.gov.uk– Tel. 0207 215 1623

Local Authority e- Procurement

Targets 2005 &

UK online for business