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ICT for SMEs: Napier eBusiness Projects

ICT for SMEs: Napier eBusiness Projects. Jamie Brogan Stewart Bell George Wilson Project Managers. Napier eBusiness Projects. Napier University has 15000 students and a reputation as a modern university that works with businesses Napier eBusiness Projects started in 2000

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ICT for SMEs: Napier eBusiness Projects

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  1. ICT for SMEs:Napier eBusiness Projects Jamie Brogan Stewart Bell George Wilson Project Managers

  2. Napier eBusiness Projects • Napier University has 15000 students and a reputation as a modern university that works with businesses • Napier eBusiness Projects started in 2000 • Improving SME business performance through appropriate use of technology • Supported over 400 SMEs to implement advanced eBusiness Solutions • Training delivered to 1000+ small businesses

  3. Funding & Partnerships • ERDF – Developing Businesses • ESF – Upskilling the Entrepreneur • Interreg – Supporting SMEs & Communities • Equal – Community & Sector Support • Public & Private Sector Partnership – Scottish Enterprise, local councils, Microsoft

  4. Our Role in Supporting SMEs • Educate entrepreneurs & provide “catalyst for change” • Offer impartial business and technology advice to growing businesses • Demystify technology and harness the business opportunities it presents • Input at senior management level to identify priorities and determine appropriate solution • Working in partnership with private and public sector – complementing and improving each others’ skills

  5. Engagement Process Information & Engagement Assessment Initial Client Contact Business Health Check Segmentation – High, Medium or Low Impact Account Managed, Client Managed or Universal Business Development Review Need for eBusiness support Project Manager eBusiness Adviser Feedback

  6. The Door Centre Supplier of bespoke doors to trade and public, trading since 1987. Based in Edinburgh, 25 staff, turnover of c. £1million. Key Issues: Two offices not linked, stock and sales not linked, double keying of customer and management data, limited online activity. Solutions & Benefits: • Integrated systems on VPN enabled by Microsoft software and hardware investment, giving improved customer service through access to stock system • £60K annual savings from reduced data entry • www.directdoors.com – annual turnover £300K • Evening News Business Excellence Award – Best eBusiness

  7. Mercat Tours Guided walking tours of historic Edinburgh. In 20 years has grown from hobby to 100 staff. Bookings are made on-street, in office, and from a website. • Issues: Systems grown organically, not scaleable. Concerns over data and staff security, frequent over and/or underbooking, no customer and management Information. • Solutions: Wireless devices and new website take payment and feed customer information to new ICT platform in office. Website, office and on-street sales all link back and forward to a central database.

  8. Performing Arts Technology company, £7M t/o, 53 IT users, 13 servers. Ad-hoc evolution of network which no-one but the IT manager who had just left understood! Recruit IT Manager: Year 1 £35K salary+, £5K recruitment; Difficult legacy systems to inherit but does give on-site resource Outsource IT Support: £7K pa support contract, £3K pa internal project management. Buying in best practice and experience of other sites along with strategic IT planning aligned to future growth. In-house £40K, Outsource £10K Year 1 savings would allow them to replace most of legacy systems with rationalised infrastructure.

  9. ICT for SMEs • Reaffirmed ICT needs and perceptions in the SME marketplace • Allowed us to re-engage with micro-businesses – sometimes neglected and desperate for help • Support themes: • Many still need basic training and awareness • Many still to harness the real benefits of the web • Financial and customer management systems • Dealt with over 120 businesses, worked with 17 so far to improve their use of eBusiness • Developing community-based eBusiness models

  10. What we’ve found …… BARRIERS INFLUENCERS Pace of Technology Change Levels of Awareness and Adoption SME eBusiness Adoption Fear of change Technology Availability Sector or Community Norms Suppliers Scepticism Advisers Can’t see the Potential Benefits Public Sector Support Lack of Knowledge: “don’t know what they don’t know” Skills Shortages: Matching technology skills to business needs

  11. How We Deliver: SME Support Direct Support programmes: • eBATT – high impact companies, detailed strategic analysis, intense period of support, typical investment £10-100K • eBIC – micro businesses, shorter intervention, early stages of eBusiness adoption • eSuppliers – improving business skills and processes, raising quality and levels of engagement • Digital Communities – increasing uptake by supporting technology in communities

  12. How We Deliver: Adviser Skills Adviser development areas: • Identifying Opportunities: Help mainstream advisers to recognise eBusiness opportunities • Consultancy Skills: Train specialist advisers to deliver eBATT and eBIC by imparting ethos and process • Business Skills: Identify business & technology training needs, applying business skills to technology • Development Programmes: Continuous Professional Development (CPD) plans, mentoring and feedback

  13. How We Deliver: Project Building Development: • Help to identify opportunities and build partnerships • Develop funding models and project structure Delivery: • Identify market needs and plan appropriate intervention and support mechanisms • Tailored support for target groups, communities or business sectors • Capacity building in local suppliers and communities

  14. Highlands & Islands Enterprise Development: • Wrote project structure & secured funding • Manage European funding & monitoring • Selected local Advisers, Suppliers, SMEs Delivery: • Identified training needs and built tailored programme • Intensive training programme based on Napier eBusiness Projects model and case studies • Joint company visits and mentoring • Accreditation to national standards

  15. What areas do we cover? • eBusiness Excellence Model: a holistic approach to eBusiness • eBusiness Strategy development • BPR (Business Process Re-engineering) • ROI (Return On Investment): Making the business case for technology investment • Customer Conversion: Getting the most from online investment • Mobility & New Business Models

  16. eBusiness Excellence Model Enablers Results People Results People Policy & Strategy Customer Results Key Performance Results Leadership Processes Partnerships & Resources Society Results Technology Efficiencies Learning and Innovation

  17. Search engine marketing company, blue chip client list, voted best in industry, with account management structure: Cost: Implementation of joint CRM & finance system. £8K implementation, £8K operational costs. Benefits: Determine account profitability; Reduce unbilled work; Maintain service levels; Measure staff productivity Tangible non-financial benefits more than enough to justify investment to MD.

  18. eBusiness Strategy • Recognising ICT is a core business function • Planning ICT strategy at senior management level • Aligning technology to overall business strategy • “Blue Sky Thinking” - Exploring the opportunities to improve business performance • Challenging the client’s ideas and perceptions • Look at the “bigger picture”

  19. Market leaders in Haggis, maintaining this position is crucial. Don’t sell direct to consumer. Demand highly seasonal, can’t keep up with queries in January. Cost: Redevelopment of website linked to database of stockists and distributors = £6,000. Benefits: Meet customer perceptions of Macsween as the market leaders, improve relationship with resellers by directing business to them, internal cost savings. Intangible benefits more than enough to justify investment to both MD and board

  20. ROI (Return on Investment) The Business Case for Technology Investment: • More than just Increased Sales, Reduced costs, Improved Margin and Greater Productivity • Wider benefits are Strategic, Tangible, Non-Financial, Intangible and Cost Savings People Results Customer Results Key Performance Results Society Results Efficiencies

  21. Costs: New ICT platform £12K Back office system £3K Web redevelopment £4K Hand held scanners £4K Wireless network £3K Total Cost £26,000 Projected Benefits: 90% of booking online Administration per race reduced from 100 to 10 hours – £21K p.a. Fraudulent admissions reduced from £7.5K to £500 p.a. £5K leased line to HQ redundant Total Savings £33,000 per annum Musselburgh Racecourse Bottlenecks at ticket office on race day. Implementation of online booking system with bar-coded tickets. Payback within 10 months

  22. Customer Conversion Now into their 2nd and 3rd generation of websites, most companies now need to look at: • What is their website for and is it “fit for purpose”? • Getting returns from online investment • Improving customer experience and adding value • Measuring results and customer behaviour • Best practice in developing web projects

  23. Development of online sales channel and brand identity for the Door Centre Ltd. Costs:Development of DirectDoors.com website with underlying relational database = £20K Benefits: Creation of additional sales channel, average net margin 50%, average sale £200. Breakeven: £20,000/100 = 200 additional sales (£40K) to justify investment. MD felt this was realisable. Site generated £300K of additional sales in first full year. 1500% ROI.

  24. Business Process Re-Engineering A bad process delivered electronically is still a bad process. BPR fundamentally changes the way things are done, and includes: • Understanding Business Processes • Mapping Current Process • Identifying Bottlenecks & Inefficiencies • Improving Processes through Technology

  25. Business Process Map

  26. New Business Process

  27. Mobility & New Business Models • Harnessing the opportunities of broadband and mobile technologies • Changing the way companies work – flexible working, shared information and resources • Mobile and distributed workforce - “virtual businesses” • Technology is no longer the barrier: • Managing the culture change: Trusting vs Controlling • Management styles: Outputs vs Inputs

  28. What are we doing next? • We believe our knowledge, best practice and processes are transferable • Partnerships for UK Supplier and Adviser development and accreditation: Microsoft, DTI • Supporting Local Delivery: Latvia, Sweden, etc • Continue to work with SMEs • Building Adviser Skills and Knowledge Transfer • eBusiness Conference, Edinburgh, 29th-31st March 2006 - SEE YOU THERE!!!

  29. Contacts Jamie Brogan j.brogan@napier.ac.uk (+44) 7714 332082 Stewart Bell st.bell@napier.ac.uk (+44) 7747 760916 George Wilson g.wilson@napier.ac.uk (+44) 7795 541653 Napier eBusiness Projects Napier University, East Craig, Life Long Learning, Craighouse Campus, Edinburgh, EH10 5LG

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