Business Link NorthWestBusiness Performance Index

(BPI)

Wednesday 2nd September 2009Neil Geoghegan – Corporate Resource Director

Ged Mirfin – Chief Data Officer

Presentation to James Caan and team, HB Offices, 23, Grosvenor Street, London

Agenda

• What is the BPI

• Delivering

• How have we used it so far– Regional Statistics

• Demonstration of BPI Extranet

• Next Steps

What is the BPI

• “Business Objects” reporting tool for Business Support in the North West.

• An “evidence based” decision making tool that offers policy making capability to the regions political agencies.

• A system that can challenge perceived truths and can support or refute anecdotal claims

• A system that can map the main business classification systems to the language used in Local Government and Business Support

• The first B2B profile driven database in the public sector

Why Did We Build It?

Data Driven Evidence-Based Policy Making

•Robust data and analysis allows for more effective policy-making•Data is critical to the delivery of evidence-based policy formulation•Previously the Data had been insufficient or unavailable•Has impacted policy timescales resulting in problems not being spotted sufficiently early•Allows the NWDA BIS & BL Management to monitor the impact of changes and the effectivity of interventions•Data, on this scale, enables a process of quantitative analysis to help predict the impact of policy options to stakeholders in a “winners and losers” format•Robust data analysis will illuminate problems by revealing severity, geographic concentration, trends and causation

We Merged Sub-Regional Business Link CRM Data

Consolidated Company Data For the North West 600k Records

We Scrubbed the data to remove duplicates and out of date records

Pre Scrub

600k Records

Post Scrub

130k Records

We Added 406k High Quality Company Records from Experian's National Business Database

End Result 536k CLEAN Company Records

Who wanted to know what?

Everyone had opinions but NOBODY had the facts

Information Type : Business Performance

Interested Parties Local Regional SectoralBusiness Theme

For Reports

Policy Generation

Impact Testing

Benefit Assessment

Count in North West

R.D.A.1

Government1

Cluster Organisations10

Strategic RegionalPartners 5

Local Authorities41

Business Link1

Delivery VehiclesMarketing ? - 20 - 50

Bus Dev MembershipAssocns - IOD ? 10 - 20

RegulatoryHSE / Enviro Agency ? 3 - 5

The Gartner View

• Biggest contributory factor in “outright failure” of CRM is lack of process ownership.

• The problem is nobody owns it. When CRM cuts across different departments it breaks down at the interface between different departments. There's no understanding of the end-to-end process.

• No helicopter overview.

• Therefore no CRM “grand strategy”.

Who has ultimate “ownership” of Business Link Data?

• Everyone and No-One• Everyone had responsibility for their individual

piece of the jig-saw• Devolved Control of the Management of Data was

dispersed throughout Business departments• This resulted in fragmented decision-making and

ineffective quality control mechanisms• No one Individual or Team was in charge

therefore nobody held responsible for failings

Data Governance – Ensuring Data

Quality, Data Acquisition,

Reporting & Data Protection

Structures and Processes for Management &

Storage of Data as a Strategic Asset

Maintaining Data Integrity

& Measuring Data Quality

Placing Data at the very heart of BLNW activities improves operational effectiveness

Data Stewardship

Data

Team

Data Strategy

Data TQM

-Focus at Executive Level -Wider Organisation Buy In

removal of accepted norms

-Addressing Director Silo Culture

-Gaining Agreement for Information Ownership

-Sheer Volume and Complexity

of Data

-Agreement on Change in Organisational Structure and Process with Reallocation of responsibilities to

Corporate Resources Directorate

-Sufficient Power Vested in Project Team to Ensure Delivery of Project Form a powerful team with a real

remit to make the change happen

-Recruitment of Experienced Resource

-Proving the Business Case and Obtaining Funding

Issues Addressed At BLNW

-Effective Project Management

Key StakeholdersMarketing

Build increased

penetration amongst

service users through

improved segmentation and targeting

Operations

Improve take-up of intensive

assists for Broker Team by increasing

lead generation

Executive

Meet Strategic Priorities: be

recognised as the leader on

regional business

intelligence and play a vital role in informing business

support policy making

Political

Highlight the effectiveness of BLNW services delivered to the NW Business Community including

Membership & Cluster Orgs,

Local Councils, Politicians &

Opinion Leaders

“Advanced Customer

Segmentation”

“Vastly Improved

Lead Quality”

“Delivering Strategic

Priorities”

“Sharing of Key Data across the

Region”

RDA

Provides relevant and up-to-date

information on NW Economy

the RDA to service

requests from Government,

Political Parties & Lobbying

Orgs

“One Version of the Truth”

The Business Support EnvironmentINTERNAL EXTERNAL

Data Protection Act

• Is a key consideration • Compliance is a pre-requisite• Legislation and Operational demands for shared

data WILL cause conflict• Needs to be part of the Data Stewardship remit• BLNW has a template data sharing contract,

created by Eversheds, that could be used nationally between Business Links and their regional partners

Creation of Database – customers – internally focussed

BL Management and internal data consumers

Value Chain for the North West Business Data Universe

First Phase - Create

Road map to Regional Adoption

Road map to Regional Adoption

Internal

Sector specialists and cluster management teams

First interaction with third party data consumers and political oganisations

Data becomes more relevant for decision making bodies

Second Phase – Sell Benefits

Internal

Geographically dispersed bodies require data to confirm Business support activities or to quantify the impact of future plans and policies

Data becomes more relevant for decision making bodies

Sector

Third Phase – Improved relevance

Road map to Regional Adoption

Internal

Local hierarchy of business support functions demand input to decision making and assessment of economic impact.

Data becomes more relevant for decision making bodies

Sector Geography

Fourth Phase – Widen User Base

Road map to Regional Adoption

Internal

Demand for joined up information sources and “one version of the truth” among all business support organisations.

Tie together regional strategy and delivery with a system of quantifiable evidence based results

Data becomes more relevant for decision making bodies

Sector Geography Local

Fifth Phase – Consolidate Business Intelligence

Road map to Regional Adoption

Internal

Regional Data can be used to challenge and improve National directives.

Involve regional factual data in National extrapolation.

Data becomes more relevant for decision making bodies

Sector Geography Local Regional

Sixth Phase – Influence National Agenda

Road map to Regional Adoption

What is it capable of?Live Example of

Segmentation Capabilities

Demonstration of the BPI•Live look at the Segmentation Capabilities

•Concentration•Classification

•Attributes: of a Geography•Size by Turnover•Size by Headcount

•Additional Levels of Attribution•Risk / Delphi

Key Attributes of the DataKey Characteristics

Quantums 537K Records (IDBR for NW: 223K)

Data Attributes 250 Data Fields

Data Attribute Types No. Of Attributes Exampler Attributes

Postal, Administrative & Political - Geography 12 Local Authority Boundary, Ward, Post Code

Key Financials 30 Published Accounts, Balance Sheet & P&L includes history

Commercial Risk 50Commercial Delphi Score, Band, CCJ, Payment Performance, Credit Collections

Key Contact Details 100 Name, Address, Phone No., Email, Job Title, Position, Key Contact

Deprivation Indices 10 Deprivation Status as per ONS definitions

Strategic Investment, Priority & Funding Areas 10 Funding & Eligibility Criteria Geographies

Rural and Urban Indicators 10 Rural and Urban Definitions per NUTS2 Definition

Ownership Structure (inc. Gender & Ethnicity 10 Male, Female, Ethnicity & Nationality

Business Classification Systems 9SIC 80, 92, 2003 & 2007, Yell, Thomson, Commercial Mosaic & Business Activity Statement

Other Characteristics(i.e. Flood Risk) & Mailing Preference 9

Misc eg: Flood Plain Data from Environment Agency & TPS/MPS & Safe to Mail Flags

Days Beyond Terms by Region

Days Beyond Terms by Sub-RegionOct 2007 – May 2009

Days Beyond Terms by Employee Nos.

Days Beyond Terms by Industry Sector

Data Source: Universal/Targeted or

Both

Sub-Region

Local Authority

Ward

Region

Sub-Region

Status: Established or Pre-Start Business

Thematic

Levels of Segmentation within the BPI Data - Potential For Analysis

Post Code

Street

Target RES Sector

SIC Code

Co. Size Band

Turnover Band

Employees Band

Risk Band

Ownership

Gender

Ethnicity

Sectoral

Target RES Sector

RES Sub Sector

SIC Code

Yell or Thomson Classification

Principal Business Activity

Region

Sub-Region

Local Authority

Ward/Post Code/Street

Co. Size / Turnover

Employees Band

Business Park or Building

Deprivation Indices

Risk or Insolvency Status

Legal Status: Incorporated or Unincorporated

Risk

Ownership: Single or Multiple Directors/Proprietors

Age of Business

Turnover Band

CCJs

Local Authority

Ward

SIC Code

Yell Code

Once Geography Selected Once Industry Sector Selected

Intervention Imperative: Delivering support to businesses in the current economic climate• Problem 1: Identifying Struggling Businesses

• Problem 2: Finding them early enough. There are No Second Chances in a Recession!

• Problem 3: Economic Impact on Key Business Segments. How badly have they been and what is the likelihood of Commercial Failure? Can Business Support can make a difference?

• Problem 4: Policy Makers don’t have context to Make or Measure the Impact of Policy

• The Answer: Commercial Risk Data is available that offers up-to-the-minute, granular information on the Risk of Commercial Failure.

• Impact Measurement: The impact of subsequent interventions, can be measured for effectivity by analysing company performance over time. The ability to Trend Data means we can flag companies that are in decline as well as those experiencing growth.

• Demonstrating Policy Impact: This means we can highlight which of companies have received business support and are now experiencing recovery as well as those where policy has delivered genuine growth and prosperity.

Commercial Delphi Risk CategoriesRisk Category Description

Failed/serious adverse info Administrator or receiver appointed, bankrupt proprietor, dissolved business

Maximum risk High value of unsatisfied CCJs, accounts overdue, start-up business with adverse data, proprietor with adverse data or maiden accounts show loss

High risk Large company with weak balance sheet, medium sized firm with very weak balance sheet, combination of above average risk features, start-up with adverse trading

Above average Large company with very weak balance sheet, medium to small firms with (high levels of credit search, payment difficulty, weak balance sheets), start-up firm without adverse information

Below average Large business with weaker balance sheet/modest loss, SMEs with steady trading, small firms with directors with good record, no adverse data

Low risk Well established, accounts filed, mid to large firms with £1m of assets and £5m of turnover, good record, directors with strong records

Minimum risk Large well established firms, strong balance sheets, low value of public information

Very Low Risk Low Risk Below Average Risk

Above Average Risk High Risk Maximum

RiskDissolved/

Serious Adverse Info

North West 5.40% 10.77% 22.88% 21.12% 8.71% 15.74% 1.12%

Merseyside4.86% 8.88% 19.83% 22.34% 9.52% 18.48% 1.15%

Warrington & Cheshire 4.98% 9.72% 25.36% 20.99% 9.50% 12.73% 0.85%

Cumbria 7.88% 14.20% 25.00% 19.52% 5.40% 8.41% 0.45%

Lancashire 5.94% 12.80% 25.62% 21.74% 6.68% 12.19% 0.85%

Manchester 5.04% 10.25% 21.27% 20.38% 9.75% 19.27% 1.52%

The Commercial Delphi risk profile of the North West

One Size DOES NOT fit all

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk

Dissolved / Serious Adverse

Information

5.40% 10.77% 22.88% 21.12% 8.71% 15.74% 1.12%

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

5.04% 10.25% 21.27% 20.38% 9.75% 19.27% 1.52%

North West

Greater Manchester

Manchester

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

5.43% 7.50% 17.46% 18.13% 10.96% 25.43% 1.94%

Further segmentation increases relevance

Manchester

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

5.43% 7.50% 17.46% 18.13% 10.96% 25.43% 1.94%

Analysis of the Manchester segment increases relevance further

Manchester

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Dissolved / Serious Adverse Information

5.43% 7.50% 17.46% 18.13% 10.96% 25.43% 1.94%

Analysis of the Sefton segmentation increases relevance further

Risk Micro Band Number of Companies Percentage

1 2,235 29.47%

2 644 8.49%

3 1,203 15.86%

4 2,201 29.03%

5 1,300 17.14%

Manchester – Maximum Risk Businesses

Manchester

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Dissolved / Serious Adverse Information

5.43% 7.50% 17.46% 18.13% 10.96% 25.43% 1.94%

Risk Micro Band Number of Companies Percentage

1 2,235 29.47%

2 644 8.49%

3 1,203 15.86%

4 2,201 29.03%

5 1,300 17.14%

Manchester – Maximum Risk Businesses

Drill into the highest of the high risk

Businesses in Manchester

Analysis of the Manchester segment increases relevance further

1,270 Businesses & 6,002Employees in Non RES Sector in Micro Band 1

So What Can We Do Next?

We can Contact all the Business and Professional Services Companies affected

Highlighted the 3 Current Issues in the Financial Markets that are causing concern: Liquidity Trade Credit Insurance Payment Terms from Primes

Offer: Specific Advice, Access to Finance, Cash Flow Management, Business Performance Benchmarking, Loan Guarantee Scheme

Key Point: These Products already existed. The Delivery of the Message and its contextual relevance unlocked latent demand

Specific Example of an Intervention

• Anne Example Ltd - Poultry Farmers• Problem: Erratic Payment Patterns from Primary Customer• Symptoms: Fluctuating Overdraft Levels – Breach of banking

Covenant• How Do We Reach This Customer?

– Generic Thematic Marketing from a Brand that is Poorly Understood?

– Or, Specific DPM Activity highlighting Root Causes and Commonality!

• Marketing Content: Sector-Wide Issues with Payment Problems. Best Practice Solutions within Industry Sector. Specific Solutions available from BLNW to Help Solve Problem.

• Outcome: Proprietor Entered into Contract Negotiations with Buyer included Strengthened Contract Clauses re: Payment Terms. Joined Pressure Group to Ensure Business Segment Voices Heard.

• Result: Improved Cash-Flow.

Case Study: Of a Strategic Body using BPI - Manchester City Council

Problem: The Chief Executive’s Department at Manchester City Council wanted a clearer view of the impact of the recession on Key Business Sectors down to the lowest level of geography - Ward Level.

Issues: The SIC Code groupings used to aggregate businesses in the Wards were not granular enough to truly understand what was happening. Many Companies were aggregated into some of the “catch all” SIC’s reducing the value of the data. For example companies in the K : 7487 : Other Business Activities Not Elsewhere Classified SIC grouping included companies as diverse as Graphic Designers and Web Site Designers and Developers - New Media Businesses critical to the development of the Digital Economy. When grouped forming an opinion was very difficult.

Business Link NorthWest Solution: We analysed the businesses in the local wards by their respective “Yell” classifications, this gave the data a more granular look and feel and allowed Manchester City Council to formulate specific plans for each geographic segment.

Graph of Risk Trends

-20

0

20

40

60

80

100

120

01/0

3/09

15/0

3/09

29/0

3/09

12/0

4/09

26/0

4/09

10/0

5/09

24/0

5/09

07/0

6/09

21/0

6/09

05/0

7/09

19/0

7/09

02/0

8/09

16/0

8/09

Date

Commercial Delphi Score Trends

Britplas Ltd (IntAssisted)

Stanley Securities CCTV Ltd (IntAssisted)

Arena PlasticsLimited

Distant Horizons UKLtd

ServiceAir UK

Sample of 5 companies Commercial Delphi risk score over last 6 months

Direct Marketing using BPI

Maximising the Take-Up of Product & Increasing Service Consumption through

Optimising Lead Generation and Improved Customer Targeting

Crunch Time For Bolton Businesses• Jointly branded campaign

with Business Bolton

• Key Messaging delivered to businesses within the Bolton area, about the kind of help and support available to them during the economic downturn.

• Campaign delivered via a combination of Direct Mail and eComms Channels

Target Audience - Businesses in Bolton

Employing between 10 and 30 employees.

All Industry Sectors

Those identified as Above Average Risk Categoryusing Experian’s Commercial Delphi Risk Profiling

Director Contacts only to be targeted

Audience Size: 742 businesses.

1,142 Senior Decision-Maker Contacts from Experian’s NBD.

Result: 7% Conversion Direct Mail to Intensive

Assist

Crunch Time For Bolton Businesses

Regional Complexity of Business support“In a Perfect World”

Delivery Organisations

NationalGovernment

Strategic RegionalParties

Member Organisations

Cluster Organisations

Local Authorities

RDA

Business Link NorthWest

Data Flows

Ideally the BL service and its Database of Companies located in the centre of the regional business support community

All users of the data would

contribute to the richness of the

database

All users would share data and

update on regional

interventions

Regional Complexity of Business support“Real World”

In practice the data flows in the region are not “clean” can be very confusing and often add little value

Delivery Orgnstns

NationalGovernment

Strategic RegionalParties

Member

Orgnstns

Cluster Orgnstns

Local Authorities

RDA

Business Link

NorthWest

Data Flows

A Virtual Business Intelligence Community

Private Sector

Experian

Business Link Light

Touch Interactions

Business Link Advisor Interactions

Delivery Orgnstns

NationalGovernment

Strategic RegionalParties

Member Orgnstns

Cluster Orgnstns

Local Authorities

RDA

Business Link NorthWest - Web

Based Data Community Hub

Creation of a virtual community of Data analysts to

share expertise

Community offers Peer

review which in turn

improves data relevance

Social Media (e.g. Linkedin) could be utilised to create a participative user

community

Business Link is uniquely placed to deliver market intelligence

Aim: Change from Anecdotal &

Judgmental to Evidence-basedDecision making

Experience-influenced

Evidence-based

Opinion-based

Evidence-influenced

Exp

erie

nce

Evidence / Information