Increasing the Value of Business: The Role of ICT

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Increasing the Value of BusinessThe Role of ICT

• Presentation by
• Gordon Lee
• Chief Executive Officer
• Parallel 56 Limited
• 14 October 2005

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What does Parallel 56 do

• We help economic development agencies to develop
  and implement strategies to help SMEs increase
  business value through the use of ICT
• Marketing Strategy and Project Management
• Business Research, e-Business Adoption
  Benchmarking and Project Evaluation
• E-Business Training Programme Development and
  Implementation
• ICT Consultancy and Project Management
• We have been the primary e-business development
  contractor to Scottish Enterprise for the past 5
  years
• We also help businesses directly to achieve
  customer-led business improvement

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Lets consider what makes a business valuable
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Business Value
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Business Value and the Role of ICT
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Business Value and the Role of ICT
ICT is now recognised as contributing up to 50
of business growth
Leadership Internationalisation Customer
Management Supplier Management Innovation
ICT
Study by SQW Ltd 2004 using Parallel 56
Scottish e-Business Survey 2004 data
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Our research provides the evidence
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What have we discovered

• E-business is being seen as increasingly
  important by owners of small businesses
• Having broadband and wireless connectivity only
  enables change business transformation does not
  come automatically
• 65 of businesses do not understand how ICT can
  help their business
• Across Europe internet connectivity is decreasing
  as well as increasing in some regions by as
  much as -10
• Skills and knowledge of managers and of employees
  is the most significant barrier to advanced
  adoption
• Adoption is most heavily influenced by customer
  demand and this holds the key to advanced adoption

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Some statistics

• Fact e-Business is even more important this year
  than last

The Importance of e-Business to the Current Needs
of the Organisation
Sample 100 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics

• Fact Most believe theyve benefited from their
  e-business investment

Benefits found from e-business activities
Sample 74 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics
Fact Lack of relevance is the main barrier to
adoption
Barriers to the development of e-business within
the organisation
Sample 26 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics
Fact Access to the internet has increased in 2005
Access to the Internet
Sample 100 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
13
Some statistics
Fact Gap between a process being important and
being IT-supported
IT-supported business processes compared
Sample 100 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics
Fact 47 have no internal IT resource
The main sources of IT skills within the business
Sample 100 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics
Fact 50 require e-business support on at least
one topic
Topics of e-business advice or training sought
Sample 100 of organisations asked
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics

• Fact Organisations that are growing use and
  value e-business more

Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics
Fact Difference in turnover per employee related
to adoption of e-business
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Some statistics
Fact Turnover improvement per employee in
businesses with e-business
Based on research conducted by Parallel 56 in
2004 and 2005 in 5 regions of the UK and with
over 15,000 businesses
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Achieving transformation through IT
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Business transformation through ICT
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Business transformation through ICT

• The four components

Business Transformation Through ICT
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Business transformation through ICT

• Benchmarking the sophistication of adoption

Company Questionnaire (online)
Datasets (10,000)

• Company
• Profile
• Compared to
• All companies in sector/type
• All companies - regional
• All companies - national

• Profiling tool (questionnaire) helps to create an
  agenda for change within the business by
  providing a competitive positioning
• This also provides the LEC and the adviser with
  the same information in order to plan
  intervention
• Impact can be evaluated by assessing the company
  again in 3, 6 or 12 months

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Business transformation through ICT

• The spread of businesses by level of
  sophistication and attitude

ebusiness transformers 22
ebusiness pragmatists 26
ebusiness sceptics 35
non adopters 17
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Making change happen
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So what needs to happen

• To create strong, competitive e-enabled
  businesses
• Measure current and emerging trends in the use of
  ICT in SMEs
• Sustained promotion of e-business to SMEs to meet
  their needs
• Focus on what they do with broadband not simply
  getting them connected
• Develop the skills of managers and employees -
  crucial
• Adopt customer-led strategy development with
  companies
• Concentrate on the customer-facing aspects of the
  business to motivate a non-adopter
• Involve ICT suppliers in the process - including
  the major vendors

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And what will the benefits be

• Improved customer-led focus
• Improved marketing effectiveness
• Improved capability for internationalisation
• Improved business management
• Improved profitability
• And ultimately
• Improved Business Value

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Thank You

• Gordon Lee
• Chief Executive Officer
• Parallel 56 Limited
• 155 Bath Street
• Glasgow G2 4SQ
• Scotland, UK
• Tel [phone]
• Fax [phone]
• Email gordon_at_parallel56.com
• Web www.parallel56.com