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Working in a Commercial Environment

Working in a Commercial Environment. Who am I?. Helen McFadden Training Consultant, Business Development Unit TAFE NSW - WSI . Why think Commercial?. Governments driving reform of the Vocational Education &Training (VET) sector Greatly increased market competition

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Working in a Commercial Environment

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  1. Working in a Commercial Environment

  2. Who am I? Helen McFadden Training Consultant, Business Development Unit TAFE NSW - WSI

  3. Why think Commercial? • Governments driving reform of the Vocational Education &Training (VET) sector • Greatly increased market competition • Government contestable funding • Changed customer expectations

  4. One size does not fit all • Individual students • Businesses and Enterprises • Government Organisations • Community and Non Government Organisations • Industry and other associations

  5. Positioning ourselves in the marketplace • Customers already have a view about us • Aim is to be seen as unique by our customers and hard to copy • The perception of customers determines the success of a service

  6. Value propositions

  7. What ‘value proposition’ means for us at WSI • It’s all about ‘customer intimacy’ • “......this means targeting markets and tailoring offerings to match exactly the demands of those niches. • Companies that excel in customer intimacy combine detailed customer knowledge with operational flexibility so they can respond quickly to almost any need, from customizing a product to fulfilling special requests”

  8. Features of customer intimacy • Market driven products and services • Deep customer knowledge • Developing customised total solutions • One on one communication • Flexibility and responsiveness • Quality outcomes

  9. To achieve this we need to... • Be aware of differing approaches to key market segments • Develop staff capability to respond to market segments.

  10. Our Service model Customer intimacy Government Charter Partnerships Recovery and Second Chance Multi Agency Approach Employability Skills Life Skills Workforce Development Community Capacity Building Lean Thinking Job Analysis / Design Training Needs Analysis Workforce Planning Job Placement Organisations and Enterprises Workplace Training TAFE (Individual) Workplace Training and Assessment Traineeships and Apprentices Customised Recognition / Gap Training Continuing Professional Development Individual Aspirations Social Inclusion Personalised and Flexible Recognition Registered Training Organisations Experience Quality

  11. The Benefits of Working Commercially? • Customers - as we respond with customised and personalised services • The region – as the benefits of training contribute to socio-economic development • The Institute - as our reputation grows • Staff - new opportunities to implement innovative approaches to service delivery

  12. WSI Business Partnerships

  13. WSI Community Partnerships and Relationships

  14. Example of Business Entity……..http://www.awds.edu.au/?mid=1598&pid=1598

  15. The Contestable (competitive) Marketplace • 1052 RTOs in NSW alone (TAFE NSW has 11 – incl OTEN) • 4937 RTOs in Australia • Apprenticeships & Traineeships • Language Literacy Numeracy Program • Strategic Skills Program • Productivity Places Program • Commercial Programs • Customised • Short courses (TAFE Plus) • International Programs • Tenders

  16. Nature of Contestable Funding • Increasingly, Commonwealth funds will be available only by tender: • Skills Vouchers, SSP, LLNP, AMEP, PPP • Number of Tenders from private & Government organisations increasing • Labour intensive ($) to apply for • Difficult for TAFE to compete on price alone • Often predetermined requirements decided/developed by the client • No guarantee of winning • Usually very short lead-time to submit tenders • Little opportunity to analyse client needs • Institute Budget will rely on increasing % of Contestable funding

  17. WSI Contestable Revenue ** Government Contestable funds incl. User Choice apprenticeships, traineeships, SSP, PPP, LLNP, AMEP

  18. Our Business Model – how do we cost it? Delivery costs + Operating Overheads + Margin = Sale Price Supplier Agreement to Teaching Section Costing to Customer

  19. Making a in WSI • Contact with Customer • Via client (new/repeat), teaching section, or direct • Details in database/notification to DE & Industry Officer • Paperwork • Development of Suppliers Agreement (SA) with Head Teacher • Development of Proposal to Customer for signature • Teaching section notified to proceed – enrolment forms generated through Business Unit to section • Where required, Attendance list & Feedback Form to section • Following delivery • Customer sent Feedback Form for completion • Teaching section completes results for issue of transcript to client

  20. The way forward..... • Customer intimacy – what does it mean for me/my section? • Accessing business intelligence to segment markets • Potential for new business relationships • revisiting existing or past customers • new range of services • value adding the service offered by our competition • Capability development

  21. It’s Question Time!

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