UK ICT Strategy Implementation Board

8 December 2009 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

A proposition for SME global market support

What we’ve been up to

Evidence of need

The business landscape and opportunity

The proposed solution

Fit with the marketing strategy

Funding, governance and ownership

Next steps

A proposition for SME global market support- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

What we’ve been up to- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

If you’re a UK technology

company with between 1 and 500

employees, we want to talk – we’ve got all sorts of questions

for you.

It won’t be difficult or take too long, and it could

make a real difference to your

business.

25992

Service providers

Media

Technology SMEs

UKTI

SMEs and suppliers are eager to share their problems, knowledge and expertise

“New markets are always hard work. I’d be interested in sharing details of effective resellers and

agents...”“It’s about local knowledge. A

product that might sound great to a customer in San Francisco may not sound so great to the

same sort of person on Boston”

“I believe that if a company is wholly committed to

internationalising it is doable. The problems arise with poor preparation and half-hearted

commitment”

“More than anything else, I need supply chain information. If this

service can provide that, it’s removed my biggest barrier to

market entry.”

“I’ve had a lot of pain internationalising. I figured it out the hard way and spent a

lot of money doing it”

Evidence of need- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

“Limited firm resources and international contacts as well as lack of requisite managerial knowledge about internationalisation have remained critical constraints to SME internationalisation. These resource limitations…seem particularly prevalent among smaller, newly internationalising companies.”

p.5 OECD (2009), “Top Barriers and Drivers to SME Internationalisation”Report by the OECD Working Party on SMEs and Entrepreneurship, OECD

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Lack of managerial time, skills and knowledge*

Inability to contact potential overseas customers*

Limited information to locate and analyse markets

*Crick, 2007: SMEs' Barriers Towards Internationalisation and Assistance Requirements in the UK

Evidence of need

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

100,000+ SMEs in UK technology sector

Evidence of need

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

100,000+ SMEs in UK technology sector

59,000 classed as active exporters

Evidence of need

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

100,000+ SMEs in UK technology* sector

possibly as many as 100,000 active exporters seeking growth, profits, reduced dependence on a single market

Evidence of need

*Computing category only

SMEs

BUYERS

The business landscape- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

£1.7bn marketplace?

SMEs

BUYERS

SMEs

BUYERS

EVENTS

TRADE ASSOCIATIONS

CREDIT CHECKS &

DUE DILIGENCE

GENERAL INFO

BOOKS & GUIDES

RDAs

TRADE AGENCIES

VCs ACCOUNTANTS

BANKS

LAW

INSURANCE(Shipping, health &

employment insurance)

RECRUITMENT COMPANIES

LETTING AGENTS & OFFICE RENTAL

DIRECTORIES

ADVERTISING

FREIGHT FORWARDER

S

MISSIONS & DELEGATIONS

CAPITAL & INVESTMENT REDUCING RISK LOCAL SERVICES INSIGHT & UNDERSTANDING LOCALISATION OFFICIAL AGENCIES & DIRECTORATE PROMOTION ACTIVITY TRADE DIRECTORIES

TRANSLATIONS, LOCALISATION AND

INTERPRETATION

INTERCULTURAL TRAINING

MARKETING

MARKET RESEARCH

COUNTRY INFO

BLOGS, FORUMS &

SOCIAL NETWORKS

TRADE DIRECTORIES

& SITES

KNOWLEDGE TRANSFER NETWORKS

CLUSTER GROUPS

fragmented

discontinuous

unaccredited

expensive

hard to find

The opportunity- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

The internet allows us to facilitate collaboration across the SME community and its suppliers - inserting a layer of mutual support, sharing information, opinions and recommendations, aggregating this complex ecosystem.

social proof

collaborative filtering

shared profiles

read/write content

application frameworks

open source

plug-in architecture

APIs

design approach technology approach

The proposed solution- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

A dedicated platform that enables SMEs and supporting service suppliers to collaborate and share intelligence about market value, means of entry and participation.

Going Global reduces the risk and time to payback of entering new country markets for UK ICT firms and especially SMEs.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

At the heart of the system is a framework for identifying expert content (and expert responses) relevant to a particular situation or opportunity according to geography, company profile and company goal or task.

The system enables participants to create or aggregate and add to useful content from across the web.

The proposed solution

Goal

Activity

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Viewpoints

Reputation

PopularityLatest

Context Accreditation

related

related

The idea

Articles, PDFs, videos, calendar items, links, lists etc.

Read/write content objects

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Rate & review

Relatedcontent

Created by...

Viewed by...

Comments

Also useful fortopic x...

Popularity Accredited by...Tags

Goal

HistoryProfile

Reputation request for information

PopularityLatest

Context Accreditation

related

related

Sector dashboardCountry dashboard

Market guide

response

other websites via api

User journeys- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Content is graded and filtered by the audience and aggregated around objectives

Content isn’t created by the service. It’s uploaded and managed by the participants. The body of content grows over time

Valued content becomes the most visible content, accredited for accuracy and value-in-context by experts and by the community, according to their reputation

The proposed solution

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Reputation (of participants) is a critical component of the service mechanism.

Accreditation (of content) is provided by experts and by the community.

The proposed solution

Fit with marketing strategy- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Contextual presentation of marketing toolkit

Domain expertise in market guide

Generates SME data that feeds back into Govt. policy

Provides scale and reach to influence a wider audience

Market UK success stories

What makes it different?- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

•A single focus on internationalisation, with a special emphasis on the needs of UK technology SMEs

•Relevant, up-to-date, qualified information generated by a range of enquiry/search methods

•The backing of an international network of UKTI post staff and local service providers ranked and rated by the community

•A core web infrastructure piece for all organisations interested in promoting growth through internationalisation

•Run for the public good

What people said...- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-- Leigh Odell, Accredit UKTechnologyWorld 09

“This would be a huge value-add for my customers.”

What people said...- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-- Alaric Jenkins, Info Storin-person interview

“I like the competitive aspect. The country view or market view that shows market competitors and the effort required to get there -- that would really be helpful.”

What people said...- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-- Merce Garcia i Cervera, MGC ConsultingTechnologyWorld 09

“This is the kind of thing my customers have been looking for.”

What people said...- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-- Max Toti, CapTech, LinkedIn discussion

“I’m looking for a well-coordinated and connected peer group of people who want to export to similar countries.”

What people said...- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-- Max Toti, CapTech, LinkedIn discussion

“like to be part of an eco-system of exporters who can collaborate and share knowledge and experience, ideally at different stages of maturity, so the starters can learn from the veterans and avoid common mistakes.”

UK SMEs

mutual support

cohesive voice

benefit of experience

Value exchanged- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

UKTI

Service providers

UK SMEs

local market insight

introductions to buyerstargeted sales channel

endorsements

recommended services

specific information

mutual support

cohesive voice

recruitment

success stories

feedback

innovation credit

benefit of experience

Value exchanged- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

marketing collateral

SME data

UK RDAs

UKTI

Trade associations

Service providers

UK SMEs

Foreign government agencies

local market insight

introductions to buyerstargeted sales channel

endorsements

recommended services

specific information

mutual support

cohesive voice

grants

inward investment

support

marketing

contacts

recruitment

success stories

feedback

innovation creditpromotion

benefit of experience

Value exchanged- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

support

marketing collateral

SME data

Is it sustainable?- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

•The revenue/cost model is a working hypothesis

•We estimate an income stream of £0.7m in year 2 and £1.8m in year 3

Potential revenue sources- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sponsorships and partnerships with other business intelligence services

Supporter/industry contributions (dependent on model)

Data & business intelligence services (UKTI, inward investors, service and solution providers)

Software licensing and custom development (dependent on model)

Subscriptions (to gain access to the community) & membership

Advertising (by service providers) classified and display

Research commissions

Exploitation of other IP and legal rights

1

4

2

3

5

6

7

8

Contributions in kind9

Is it sustainable?- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

•The revenue/cost model is a working hypothesis

•We estimate an income stream of £0.7m in year 2 and £1.8m in year three

•Start-up costs in year 1 of circa £0.85m - £1.05m

•Annual operating costs range from £0.5m to £1.3m per annum, depending on scale and development need

•We need a keener idea of the size of the target market and the appetite and wallet-size of service providers

•The value of the service lies in the participants in the marketplace - we need to build critical mass

Next steps- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

•Proceed in three phases...

Project phasing- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Conceptdevelopment

Working prototype

Full rollout Sustainable operation

and commencing operating test of...

Identify SMEs most likely to internationalise and how they prefer to collaborate

Business case

Cost model

Sources of funding

Future governance models

and...

Build critical mass

Requires full understanding of business case and governance

Requires critical mass and positive net cash

Complete Fundraising...

1 2 3 4

Working prototype Government?

+industry?

Research SMEs and

service cos.

Project phasing- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Conceptdevelopment

Full rollout Sustainable operation

Owning Body

£

PrototypeDev.

UK Technology leadership

Business case

Full rolloutphase

Future governance

model

~£90Kp/m~£40Kp/

m

£110K p/m

HandoverMxM/UKTI/LEADERSHIP/

OWNING BODY

Business as UsualOWNING BODY

MarJan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Incubation PeriodMxM/UKTI/LEADERSHIP

Prototype Build Release One

MxM/UKTI/LEADERSHIP

£300K

£100K

£200K

£400K

£500K

Prototype Build Release Two

MxM/UKTI/LEADERSHIP

£100K p/m

Service principles- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

The service is run by industry for industry

The service is designed primarily for UK SMEs looking to do business in overseas markets. Service for other participants or revenue generating partnerships with should not destroy value created for SMEs

Commercial and non-government service providers are not the prime beneficiary of the service but their participation is essential and encouraged for the value they create for SMEs

Central government (specifically UKTI) is not the prime beneficiary of the service, but it’s participation is essential for the value it creates for SMES; the service provides UKTI with an effective means of recruiting and engaging with SMEs

The value of the service lies in its primary and secondary participants (buyers and sellers) and the tools it offers them to interact and exchange value in a marketplace for information and services. That value is embodied in the workings of the marketplace, eg such as reputation, accreditation, profile aggregation, openness, self-moderation, etc.

The service is not exclusive to UK SMEs, UK service providers or UK government agencies

The principle language of the service is English

Service principles- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

The service seeks to collaborate rather than compete. Where other services create value in a more effective way, the service will seek to ally with and integrate with them The service will integrate with other open services. Where possible, it will endeavour to create relationships with other services where there is mutual benefit e.g. World Bank Statistics, Transparency Internationals Corruption Index, Linkedin, etc.

The design should encourage participants to share success stories

The service permits central and regional government to support areas offering “comparative advantage” and “overseas markets which offer the greatest opportunities”. SMEs may have different geographic priorities to larger companies.

The service allows businesses to earn credibility through their behaviour on the system. This credibility is awarded on a peer-to-peer basis and includes ratings, accreditation, awards or other forms of social proof.

Operational Models - Not For Profit- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Not for profit (NFP) body

(possibly company limited by

guarantee) outsources sales in

order to fund marketing,

development and community

management and other

overheads. Some income is

retained. The body owns all IP

rights associated with the

platform.NFP Body

Sales

OutsourceSales

£Dev.

Comms Mgmnt.

£

£

£

RevenueMarketing

£

Grants to SMEs

£

As soon as it becomes affordable

to do so, the body will provide

grants to SMEs in order to assist

them with their efforts to

internationalise.

Operational Models - For Profit- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

For profit (FP) controls all operational

aspects and IP rights associated with

the the platform. Some work

(particularly development) may be

outsourced as required. The ultimate

actions of the body are controlled by the

guaranteeing members; the selected

members may consist of the executive

created to manage the prototype phase

of the project. This model allows

greater salaries to attract talent to the

enterprise.

Part of the remit of the organisation

will be to provide grants to SMEs to

assist with their efforts to

internationalise as soon as it becomes

affordable to do so

For Profit Body

£

Guaranteeing members

exercise controlling authority

£

Dev.

Comms Mgmnt. Marketing

Grants to SMEs

Sales

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Should the work continue in the manner proposed?

How should the Board go about funding and the working prototype and making the service operational?