Jackie Williamson Regional Director Small Business Service

Jackie Williamson Small Business Service

National ICTRegional Director

West Midlands

Jackie Williamson Regional Director Small Business Service

E Commerce within an integrated

E Government Strategy

Benefits to Small and Medium Size Businesses

Jackie Williamson Regional Director Small Business Service

Information Communication and Technology

Contributes 25% to UK Growth

………..Recent Study by London Economics

Jackie Williamson Regional Director Small Business Service

Agenda

Helping Businesses• UK Business Population• Government on Line, structure of

support for SMEs• Issues in Supporting SMEs• Afternoon Workshop

Jackie Williamson Regional Director Small Business Service

A Look at the UK

• Population UK 59.8 million

• GDP (2000) £945 billion

• 3.7 million companies

Jackie Williamson Regional Director Small Business Service

Business Population

500+

250 - 500

200 - 250

20 - 200

1 - 19

0 Sole Traders

3515

3220

1570

6957

0

1274

730

2324

340

Number of Businesses

Number employees

Total 3.7 million(Source: ONS Feb 2002)

98%

2%

Jackie Williamson Regional Director Small Business Service

UK Yield on ICT Investment

(Source: London Economics)

0

5

10

15

20

25

30

35

40

45

% Output

Total Growth Manufacturing Financial Transport, Wholesale

Intermediation & Retail

Jackie Williamson Regional Director Small Business Service

Government on Line

DTI

Small Business Service UK on line 4 Business

Business Support Specialist ICT Advise

Business Links

Small – Medium Businesses

Jackie Williamson Regional Director Small Business Service

Government on Line DTI

Small Business Service UK on line 4 Business

Business Support Specialist ICT Advise

Regional Development Agency

Business Links

Small – Medium Businesses

Jackie Williamson Regional Director Small Business Service

Trading online by size

0

5

10

15

20

25

30

35

Large Medium Small Micro

%

(Source: International Benchmarking Study)

Jackie Williamson Regional Director Small Business Service

E Government & e Commerce

• Government Targets• By 2003

- 1.5 million small & medium businesses will be connected to the internet

- 1 million trading on line• Where we are now in 2003 ?

- 1.6 million connected

- Trading on line target not met

Jackie Williamson Regional Director Small Business Service

Benefits / drivers

0

5

10

15

20

25

30

35

Reduce costs Customerrelationship

Keep up withcompetitors

Internalcommunications

%

(Source: International Benchmarking Study)

Jackie Williamson Regional Director Small Business Service

e business Changes the way companies conduct business

Lastminute.com – ‘ranked as the leading online travel agency across Europe’

• Airline tickets• Hotel rooms• Package holidays• Entertainment tickets• Resturants reservations• Gifts and auctions

Jackie Williamson Regional Director Small Business Service

The benefits grow with use

Operational Saving / A shop window Enhanced customer

Efficiencies to the world & supplier relations

The benefits

Internal use Establish Enable Generate

Web site transactions interactions Transform core

Jackie Williamson Regional Director Small Business Service

Barriers

0

5

10

15

20

25

30

35

Set up cost Runningcosts

Lack of time Lack of skills Lack ofknowledge

%

(Source: International Benchmarking 2002)

Jackie Williamson Regional Director Small Business Service

e-mail

website

e-commerce

e-business

transformedorganisations

Business benefits

Extent of organisational change & sophistication

- efficient internal and external communications

- place in worldwide market- window on worldwide suppliers

- order and pay online, reducing transaction costs- maximise accessibility and speed

- integrate supply chain so manufacture and delivery become seamless- minimise waste at every stage of the supply chain

- open systems of information for customers, suppliers and partners- new business models based on interworking between organisations and individuals

Adapted from Cisco led Information Age Partnership study on e-commerce in small business

Model of e-adoption ladder

Jackie Williamson Regional Director Small Business Service

e-mail

website

e-commerce

transformedorganisations

Business benefits

Extent of organisational change & sophistication

- efficient internal and external communications

- place in worldwide market- window on worldwide suppliers

- order and pay online, reducing transaction costs- maximise accessibility and speed

- integrate supply chain so manufacture and delivery become seamless- minimise waste at every stage of the supply chain

- open systems of information for customers, suppliers and partners- new business models based on interworking between organisations and individuals

Adapted from Cisco led Information Age Partnership study on e-commerce in small business

Model of e-adoption ladder

e-business

Jackie Williamson Regional Director Small Business Service

People

Processes Technology

Environment

SkillsSkills

ManagementManagement

LeadershipLeadershipSecurity

SecurityRegulatio

n

Regulatio

n

e-business

Broadband

Broadband

Wireless

Wireless

H/W

H/W

Buy-side

Buy-side

Sell-sideSell-sideIns

ideIns

ide

CultureCulture

BACS

BACS

Economy

Jackie Williamson Regional Director Small Business Service

Workshop

• Scene setting – results of International Benchmarking Study/ Europe, Canada, Australia

• How to overcome the barriers for implementation

• Tools for business support organisation

• SME successes

• Framework for implementation

Jackie Williamson Regional Director Small Business Service

National Targets

Awareness

Promotional campaign

Showcasing

E-Commerce Awards

ServiceChannels

Network of advisers

Tools & Collateral

Technology Means Business

Implementation

Web based resources

Business Support Funding

Partnerships & Clubs

Research & Benchmarking

Channel Development

Achieving the targets