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The ICT Strategy for England’s Northwest
September 2005
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Contents
Page
Foreword
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Introduction
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What is ICT and what can it do? Benefits of ICT Themes
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Introduction Theme one: Awareness Theme two: Skills Theme three: Harnessing the benefits
Addressing demand
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Measuring progress
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Foreword More than ever before, Information and Communications Technologies (ICT) represent a vital driver behind regional economic growth, and social and environmental development. Here in the Northwest, the first regional ICT strategy englandsnorthwest connected, has led to significantly greater levels of access, and the region has considerable opportunities to harness the benefits of ICT for all. Seizing these opportunities is paramount, no longer must work be a place where we go, but a thing that we do; how we do business must be more agile, supporting more flexible business operations. Provision of services needs to become more easily accessible and capable of being used by both businesses and individuals, supporting the development of new and existing skills, enabling more opportunities for wealth creation, and delivering improved quality of life. The Northwest must become an engaged and connected community of businesses and individuals, who are able to harness the benefits of ICT to achieve their goals on a day-to-day basis. During the life of the strategy, and by 2008, this is where the Northwest needs to be, and this strategy commits the region to harnessing the power of ICT to get us there.
Steven Broomhead Chief Executive Northwest Regional Development Agency (NWDA)
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Introduction The ICT Strategy for England’s Northwest has been written to be accessible to businesses and individuals alike, while also providing direction to the Public, Private and Voluntary sectors who serve them. It seeks to influence the behaviour of both organisations and people and secure greater awareness, increase skills levels, and harness the benefits of ICT in the Northwest. Following widespread consultation, and a robust regional ICT adoption survey, the Northwest has a rich ICT evidence base, which has been used to shape this strategy, to develop a better understanding of how the region can secure the benefits of ICT, and to set out how the Northwest can work towards embedding ICT at the very heart of our lives. The strategy commits the Northwest to securing improvement on a series of targets that will measure and monitor achievement of these benefits. The strategy identifies the key opportunities for the Northwest; • • •
Promoting ICT to those who are yet to use it. Highlighting the potential benefits of ICT through appropriate skills provision. Harnessing the benefits of ICT, thereby maximising the impact of ICT on how we work, and the way we live our lives.
What is ICT and what can it do? ICT is a tool that enables us to achieve our goals, whether in business, or in our every day life. ICT can be many things to many people; •
Telecommunications – phones, Internet access and digital television
•
Software – e-mail, games, learning materials, word processing, spreadsheet and database applications, personnel, accounts systems and product processing
•
Hardware – computers, printers, fax, scanners and digital cameras
•
Information – news, on-line shopping and financial services
What ICT is doing for businesses and individuals in the Northwest I Allowing businesses to compete on a global scale
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Benefits of ICT Utilising ICT brings many benefits, some of which are universal and appreciated by all, others are more personal, and unique to each individual. For you as a business‌ Efficiency
supporting the development and creation of sustainable businesses, whilst reducing the cost of doing business.
Customer Service
enhancing service delivery in the eyes of the customer.
Growth
reaching new markets and customers, and providing a platform for business innovation.
Collaboration
enabling an environment of collaborative working and sharing of information.
For you as an individual‌ Personal and career development
providing access to education, learning and employment opportunities.
Quality of life
enhancing quality of life, stimulating community development and participation, and improving self-esteem and self-worth.
Choice
granting access to new products, services and information sources.
Case study:
Increasing business efficiency
A small business based in Cardiff, which works mainly with solicitors and accountants, has introduced ICT to support its key business processes, and to provide a responsive and closely tailored service to its customers. Working in a highly competitive environment where a one-hour turnaround time is critical, the company installed a reliable and secure network, together with a cutting edge e-mail system. This has enabled the company to respond quickly to client queries, enabling the company to compete equally with larger rivals.
What ICT is doing for businesses and individuals in the Northwest I Integrating the whole manufacturing process
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Themes Introduction The region’s first ICT strategy, englandsnorthwest connected, was launched in 2002, and for the first time provided a focus for regional ICT activities, centred around improving ICT access as a means of delivering regional prosperity and growth. The strategy also called for a survey of ICT use and demand to assess the progress being made in the region, as well as providing an evidence base against which to monitor and deliver future activities. The survey was carried out in 2004, assessing 8,600 businesses, 8,600 individuals, and 1,500 public sector organisations in order to develop statistically robust data at a regional, sub-regional, and local authority level. The data, which was collected using methodology approved by the Office of National Statistics, highlighted opportunities for even greater regional progress within the ICT sector. These findings have also been further validated through a comprehensive consultation process involving over 300 regional partners and industry leaders. Specifically three themes were highlighted: • Raising awareness of the benefits of ICT to both businesses and individuals. • Developing the skills needed to allow these benefits to be harnessed. • Harnessing the benefits of ICT. However, these themes cannot exist in isolation, rather they are complimentary and linked. Businesses and individuals need to interact with the different themes to varying degrees in order to achieve their objectives.
ICT Theme Adoption & Interaction
Figure 1
Progress
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Awareness
Skills
Wealth
ss gre Pro
Harnessing the Benefits
The ICT Themes exist as part of a greater whole
-individual -business -region
Pro gre ss
Interacting with different themes, to varying degrees, at any one time, will deliver the maximum benefits from ICT adoption for businesses and individuals, as they seek to achieve their goals
Figure 1 illustrates how interaction with each theme is dynamic in nature, and will shift as businesses and individuals progress towards achievement of their goals through ICT. Understanding how these themes interact is key to increasing wealth within the region through the effective use of ICT.
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Theme one: Awareness of how ICT can help us achieve our goals • •
• • •
Providing effective promotion, demonstration and understanding of the benefits of ICT. Highlighting best practice examples supporting the adoption of ICT, promoting new products and services, opportunities to reduce costs, increase sales and enhance service delivery in the eyes of the customer. Ensuring that businesses and individuals know where to access the appropriate advice and guidance that supports their investment in ICT. Providing clear and value for money advice leading to the effective implementation of ICT. Encouraging new businesses to fully understand the opportunities to support market entry and growth through appropriate levels of ICT.
Case study:
Delivering customer satisfaction
A thriving Ulverston-based holiday agency has developed a growing niche market through the adoption of ICT, serving owners of self-catering holiday homes in Cumbria’s Lake District. Potential guests are now able to view properties and destinations instantly, check availability of a chosen location, and book online. The agency has seen its customer database and customer service satisfaction increase dramatically.
The evidence says: • 63% of growing businesses in the Northwest are using ICT. • 89% of Northwest firms using ICT say it has had a positive impact on bottom line results. • 43% of Northwest businesses would prefer to receive information, help or advice on computer systems or ICT from an IT consultant. • 70% of Northwest small firms say implementing home working has resulted in a positive impact on business. • 40% of Northwest businesses with Internet access are using broadband. • 70% of Northwest households with Internet access, who are aware of broadband, have taken up the technology. • 42% of individuals who have used a computer say that ICT has provided them with the opportunities to do things they would not otherwise have been able to. (Source: NWDA, ICT Data Collection Study 2004)
Case study:
Exploiting new markets
Recognising the potential for floristry using the Internet and e-commerce, a successful businessman based in Morecambe, developed an innovative website to enable the general public and trade customers to purchase flowers and gifts online. In just over a year, the business is one of the UK’s leading Internet florists, with over 50% of its turnover generated via the Internet. Since the launch of a new website, trade customers are able to have a personalised front page, giving the impression that the website belongs to the individual florist.
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Theme two: Skills that will help us achieve our goals with ICT •
• •
Ensuring businesses and individuals have the skills and confidence to access the benefits provided by ICT, by ensuring basic skills do not represent a barrier to securing ICT skills. Providing basic ICT engagement skills for all. Empowering individuals to access opportunities to advance their skills and achieve personal growth through ICT and providing the Northwest with a more economically attractive workforce, while improving quality of life.
Figure 2 identifies the barriers that some businesses and individuals need to overcome in order to maximise their learning potential through ICT.
*Realising the learning potential through ICT
Basic engagement ICT skills
Figure 2.
*The big return for the region, individuals and businesses is in ensuring access to opportunities to enhance skills and knowledge through ICT
Basic skills
Case study:
Increasing skills levels
One Northwest farm employee has used ICT to further develop skills levels as a way to keep the family business running as effectively and resourcefully as possible. Following completion of an ICT training course, this employee is now able to efficiently manage milk yields, access archived information and records, and source the best deals on farming machinery online.
The provision of skills must focus on market demand, providing a flexible and tailored delivery model that best serves the needs of the business or individual, focusing on only those skills required to address a particular need. • •
Providing businesses and individuals with demand-led opportunities to advance their skills and achieve growth through ICT. Ensuring the provision of skills focuses on market demand, providing flexible, tailored delivery models that fit the needs of the individual or business.
What ICT is doing for businesses and individuals in the Northwest I Helping individuals to overcome disadvantage in the job market
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It is important to realise that not everyone needs to be an expert across all disciplines within their job role. It is more important that skill levels attained satisfy the requirements of an individual’s role. For example, while a specific job role may require the job holder to have advanced email and word-processing skills, the same role may only require the job holder to have an intermediate knowledge of spreadsheets and databases. The Northwest needs to develop a mechanism where individual skills needs can be adequately and cost effectively met in this way. As illustrated in Figure 3 below, it is possible to meet a user’s exact needs through a variety of courses delivered by different providers. However, this can result in a lengthy and costly training plan for the individual in question. Enabling users to undertake relevant and timely training to ensure that ICT can be put to optimum use within the job role quickly and cost effectively is key to maximising the potential of ICT in the Northwest. Figure 3.
Expert
Advanced
Case study:
Course F
Course E
Course D
Course C
Beginner
Course B
Intermediate Course A
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Increasing participation in learning
With a renewed focus on equipping people with the skills required for today’s business, many companies are now concentrating on providing opportunities for their workforces to learn new skills. However, for those companies which are not focussing on skill development, sections of their workforces are in danger of being left behind. A Merseyside-based manufacturing business was presented with the challenge of having an ageing workforce, originally not employed for their computer skills. However, as technology advanced the company felt that there was a genuine need for ICT skills training. The company takes pride in staff development and training and, as a result, computer training was just one of the many courses it decided to offer. The company also offered basic skills courses including numeracy and literacy, however because of the stigma involved with such courses, take-up was low. To overcome this challenge, computers were used to increase these skill levels, and these courses were used as a lever to get employees on to higher-level skill courses.
What ICT is doing for businesses and individuals in the Northwest I Helping individuals to pursue a fulfilling career I Ensuring a reliable, responsive and closely tailored service
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The evidence says: • • • •
59% of Northwest businesses require employees to have a level of ICT skills. 76% of Northwest businesses that use online learning view it as cost effective. 26% of individuals in employment feel they could obtain higher-paid employment by improving their ICT skills. 37% of individuals on low income feel they could get a better job by improving their ICT skills.
(Source: NWDA ICT Data Collection Study 2004)
Case study:
Enhancing quality of life
A Northwest wheelchair user, who was paralysed from the neck down as a result of a spinal injury, has used ICT to overcome disadvantage in the job market. An enthusiastic ICT user, he is now pursuing a fulfilling career with the aid of a laptop, voice recognition software, a special mouse, digital camera and electronic diary, which has enhanced his self-esteem and quality of life.
What ICT is doing for businesses and individuals in the Northwest I Enabling communications from miles away as if side-by-side I Making the most of customer information and intelligence
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Theme three: Harnessing the benefits of ICT •
• • •
Providing an effective support route for advice and guidance, ensuring businesses and individuals acquire ICT solutions relevant to their needs, thereby securing maximum benefit. Enabling businesses and individuals to realise the full potential of the ICT they currently have. Acknowledging and supporting the application of ICT as a critical tool in delivering business profitability and enhanced quality of life. Assisting the further development, implementation and utilisation of ICT to support innovative new products and services, and enhanced collaboration between business and between individuals.
The evidence says: •
• • • • •
Of those businesses with standalone or networked computers, 41% indicated that increased turnover had been more achievable through the use of ICT, 43% had reduced costs, 45% had improved productivity, and 41% had improved profitability. 27% of Northwest businesses receiving orders online use these to automatically update internal systems. Of those Northwest firms with standalone or networked computers, 24% have found that developing new products and services has been more achievable through the use of ICT. 30% of Northwest individuals who have used a computer identified ICT as a further means to access information. 26% of Northwest individuals would access the Internet to take up e-government services. 42% of businesses with ICT systems are benefiting from communicating directly with suppliers online.
Case study:
Increasing efficiency
A successful local businessman in Gloucestershire owned a farming business which unfortunately closed in the 1980s, resulting in him having to find other means of earning a living. Following the closure, he decided to establish a haulage business, which over the years has become a highly successful business venture. To increase efficiency and maintain this growth, the company installed wireless technology. As a direct result of the technology employed by the business, the company is able to offer a high quality service to his customers. Benefits include a fleet management system, which keeps track of all vehicles as they make their delivery and provides progress updates automatically via text message. The technology has also enabled the company to offer a European-wide delivery operation, as well as locating vehicles with precision on computer screens, with messages relayed to the driver on the best route to take. The system is also invaluable for giving customers accurate and up-tothe-minute information on their deliveries.
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Addressing Demand In identifying the three themes of ‘Awareness’, ‘Skills’, and ‘Harnessing the Benefits of ICT’ the need for a simple structure by which they might be delivered on is apparent. Businesses and individuals need a clear single point of contact that is a trusted, honest and impartial point of reference for all matters relating to their ICT requirements. In addition a mechanism needs to be provided that drives the supply of solutions and support services directly from customer demand, and which encourages the further growth of the ICT sector through product and process development, and innovation. Such functionality can be delivered by bringing together parts of the delivery network that already exist as part of a co-ordinated and efficient approach. The ICT strategy for the Northwest requires that that all parties within the region, whether Public, Private or Voluntary sector, come together, working collaboratively to achieve this common goal. In this way the Northwest will benefit from a single point of reference for ICT support and advice, that will assist in maximising the regional broadband infrastructure, promoting the benefits of ICT to businesses and individuals, and delivering the overall vision of the Regional Economic Strategy, “To transform England’s Northwest though sustainable economic development”.
What ICT is doing for businesses and individuals in the Northwest I Providing opportunities for home, remote and mobile working I Gaining information quickly with minimal effort I Providing stock and sales information automatically
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Measuring Progress ICT use is unique to each and every business and individual, and only through a greater understanding and adoption of ICT will real benefits be achieved across the region. During the lifetime of this strategy, through greater awareness, increased skills levels, and by harnessing the benefits of ICT, the Northwest will have a more flexible and engaged population and workforce. To monitor how the region is progressing with this ambition, measurable targets must be adopted. Prime indicators, representing real outputs of ICT adoption, must be used and are highlighted below. The survey of ICT use and demand will also be repeated to measure and monitor these indicators, and identify additional trends. 1
Northwest performance
Northwest performance targets
Percentage of businesses using computer systems at their location
73.9%
80%
Percentage of businesses with a broadband Internet connection
39.5%
50%
% of businesses where more than 50% of employees make daily use of computer systems
63.4%
75%
Percentage of businesses offering online training for employees
20.5%
35%
Percentage of businesses able to develop new products and services using ICT
23.6%
35%
Northwest performance
Northwest performance targets
Percentage of households with access to the Internet
39.8%
70%
Percentage of households with Internet access that have a high-speed Internet or broadband connection
68.7%
80%
Percentage of unemployed citizens who are confident or very confident using e-mail
31%
50%
Percentage of adults using a computer in the home for work or learning
29.4%
50%
Business Indicators
1
Individual Indicators
(1 NWDA ICT Data Collection Study 2004)
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The Northwest Regional Development Agency manages all operations from its Headquarters at: PO Box 37 Renaissance House Centre Park Warrington WA1 1XB Tel: +44 (0)1925 400 100 Fax: +44 (0)1925 400 400 e-mail: information@nwda.co.uk
In addition, there are five area offices for the implementation of local activities as follows: Greater Manchester Giants Basin Potato Wharf Castlefield Manchester M3 4NB Tel: +44 (0)161 817 7400 Fax: +44 (0)161 831 7051
Cumbria Gillan Way Penrith 40 Business Park Penrith Cumbria CA11 9BP Tel: +44 (0)1768 867 294 Fax: +44 (0)1768 895 477
Merseyside Station House Mercury Court Tithebarn Street Liverpool L2 2QP Tel: +44 (0)1925 400 100 Fax: +44 (0)151 236 3731
Lancashire 13 Winckley Street Preston Lancashire PR1 2AA Tel: +44 (0)1772 206 000 Fax: +44 (0)1772 200 049
Cheshire & Warrington Brew House Wilderspool Park Greenalls Avenue Warrington WA4 6HL Tel: +44 (0)1925 644 220 Fax: +44 (0)1925 644 222
Visit:
www.nwda.co.uk www.englandsnorthwest.com www.visitenglandsnorthwest.com
NWDA F8-07