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Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
Paul Keegan
Deputy Director
UK online for business
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
• why SMEs are so important
– economic
– social
• the need to invest
• in ICT
• in training
• a unique opportunity – and threat
• the benefits of ICT to SMEs …
• … and to the local economy – 2 + 2 = 5
• how UK online for business intends to support you
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
SMEs and the South East Economy
630,000 businesses in South East
58.4 % of all employees in SMEs
49.2% of turnover by SMEs
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
 Local Government employs one tenth of the
country’s workforce
 Every minute council officers spend £200,000 on
goods and services + £20,000 on administration
 £25 billion per annum in England and Wales
 £2.5 billion on transactions
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
 800,000 firms currently supply goods and services to
Local Authorities
 Many are not e-enabled
 Many only supply locally
 All Local Authority purchasing to take advantage of eprocurement by 2005
 Significant risk to supplier SME’s
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
 a significant opportunity to invest in
ICT with a real and compelling
business case
 non e-enabled suppliers WILL be
excluded
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
The benefits of ICT to SMEs
• ability to supply LAs – and other organisations
requiring e-procurement
• automated processes free staff for value-adding
activities
• improved cashflow
• enhanced customer service
• lower costs – reduced stock levels etc
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
The multiplier effect in the local
economy
2+2=5
•
•
•
•
as firms invest in ICT, local trading becomes more efficient
repetitive administration jobs replaced by value-adding jobs
skilled workforce attracts firms to area
ICT support firms develop – and then win business in neighbouring
LAs
• increased competition drives efficiency and lowers prices – stronger
local firms win against weaker firms in other areas
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
Not simply economic benefits
small businesses increase opportunities for groups that are
otherwise disadvantaged or excluded
• “discrimination or disadvantage is one of the factors influencing
some members of ethnic minorities to set up in businesses.”
SBS Small Firms : Big Business
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
The Opportunity for UKon4b
• To help 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 its fuller
integration within their business process to increase
productivity and competitiveness
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
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
• 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
Slough Borough Council Marketplace Event
Thursday 5th June 2003 Thames Valley Athletics Centre
Paul Keegan UK online for business
[email protected]
020 7 215 1623