Tfm&A Presentation Business Links Case Study Final Ged Amends Wed 19th Feb

TFM&A presentation
Ged Mirfin & Neil Geoghegan Business Link Northwest
Jim Godman Experian

© Experian Limited 2009. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited.
Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work
may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Limited.

Contents

 Introductions

 Objectives / overview:
x How Experian Business Marketing could help Business Links
recognise and predict change utilising intelligence to mitigate the
impact of the economic downturn
x How Experian Business Marketing could we help Business Link
generate this intelligence
x How Experian Business Marketing could help Business Link process
& share the intelligence

 Technical overview – Business Links Business Performance Index
(BPI)
 Questions

© Experian Limited 2009. All rights reserved. 2

Introduction: Key objectives of presentation

Broader understanding of Business Intelligence (BI)
 and its uses throughout the region

The use and application of data to inform and drive
 effective evidence based policy

Identify how we get the “best reward” for
 our efforts


Supplying the intelligence

How could Business Link
supply the intelligence required
to respond to the current
economic environment

Business Performance Index
(BPI)

The impact of poor data management

60% of Public Sector organisations around the world
think that inaccurate and incomplete data costs them
money in terms of wasted resources, lost productivity
and/or wasted marketing spend.
“The impact poor data management has on your organisation.”
Experian QAS
International Research White Paper
September 2005


Business Link’s Data Strategy
“BLNW’s Key Strategic Objectives”

 Business Link North West Strategy
statement 2008/09 (Data Related)
x “To be recognised as the leader on
regional business intelligence”
x “To play a vital role in informing business
support policy making”


History of the BPI

Experian National Business
Business Link Database Entries for
Universe of North West
Company Data
536k
100k

 Business Link had 100k company records in its  Experian profiled Business Link data and found 536k businesses (both Ltd. And
database. unincorporated) at location level in its National Business Database for the North West.
 The companies had been assisted by Business  Business Link acquired the data from Experian. Each Experian record had in excess
Link over the last 20 months of 150 data characteristics (appends)
 The data captured was used to satisfy contract  The extra data records allowed a significant level of analytics to be done. The data
outputs and as such was very specific had access to classification systems (Yell and Thompson Directories) and allowed
detailed segmentation
 We needed to increase the data set both in terms
of size and data richness  One of the Primary data attributes was “Risk Scores and Financial Performance data”


We incorporated Business Link universe and
Experian’s National Business Database into the BPI

Experian National Business
Business Link Database Entries for
Universe of North West
Company Data
536k
100k


We incorporated Business Link universe and
Experian’s National Business Database into the BPI

Section of database
unique to Business
Link – Lifestyle and
Grey economy
businesses Consolidates North
West Business
Universe
15k 85k

436k


Key Data Attributes of BLNW’s Business
Performance Index

 Is “real time” data and is updated monthly

 Is the first (B2B) business profiling system in the public sector

 Offers real time intelligence to support our efforts to address the
current market conditions

 Data is very granular and can be segmented to very specific levels

 Key data segmentation is geographic (down to postcode) and
sectoral (RES, SIC group, Yell classification code, Thompson
directory classification code)


Business Support Criteria powered by
Experian’s National Business Database

Relevant
Shared Partner
Sector &
Data Geography

Business
Commercial Financials
Classification
Business
Support
Criteria Size of
Business
Risk

Company Age of
Status Business


Experience + Evidence = Intelligence

Experience- Intelligence
influenced based
Policy Making Experience

Aim: Move away
from Anecdotal &
Judgmental to
Evidence-based
Policy formulation

Opinion- Evidence-
based influenced

Policy Making Evidence


Benefits to Key Stakeholders

Marketing Operations Executive Stakeholder & NWDA
Partner Orgs.
“ “

Advanced Vastly Improved Delivering Sharing of Key One Version of
Customer Lead Quality Strategic Data across the the Truth
Segmentation” Priorities Region”

INTERNAL The Business Support Environment EXTERNAL


Impact Analysis – Key Achievements to Date
 Marketing: Dramatically Improved Response Rates from Direct Marketing Activity
x Has allowed BLNW to Build increased penetration amongst service users through improved segmentation and targeting
x Achieved 14.29% conversion rate rate from Large Scale Direct Mail Activity (35,000) – resulting in c.5,000 new users of
Business Link Products & Services over a 2 Month period
 Operations: Has given Adviser Teams Access to High quality Leads in Increased Volumes
x Has Improve take-up of intensive assists for Broker Team by increasing lead generation – Diaries of Advisers full 3
Months in Advance
x Access to a Much Wider Universe of Businesses than previously allowing BLNW to widen the net amongst the Business
Community including struggling Businesses who may have previously been reluctant to access Business support
resulting in improved penetration and enhanced service delivery to key sectors and user groups
 Executive: Meeting of Strategic Priorities: To be recognized as the leader on regional business intelligence
and playing a vital role in informing business support policy making
x Delivering Strategic Priorities 18 Months Ahead of Schedule
x Enhancement both Reputation and Policy Influencing Role of BLNW within Business Support Community
 Business Support Community Partners & Stakeholder Orgs: Has allowed BLNW to Make Definitive
Pronouncements about the effectiveness of its Services Delivery to the NW Business Community
including Membership & Cluster Orgs, Local Councils, Politicians & Opinion Leaders
x Has allowed BLNW to contextualize the impact of its service delivery against a robust evidence base benchmarking
effective performance and identifying gaps
x In return has allowed Business Support Community Partners & Stakeholders to contextualize their own activity and
whilst at the same time providing a more robust evidence base to test and measure the impact of policies and activities
and monitor more effectively key trends in Business Activity in their Geography/Sector
 Northwest Development Agency: Provision of relevant and up-to-date information on emerging business
trends allowing the NWDA to service requests from Government, Political Parties & Lobbying Orgs
x BLNW Data recognized as the Primary Source of Business Intelligence in the Northwest Region
x Creation of Rapid Response Framework with BLNW Data Warehouse(s) at Core
x Delivery of Strategic Business Trend Data to Key Decision-Makers have become Key Forecasting Indices
x Data at this level of granularity is available to no other RDA


Commercial Delphi risk

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

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

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

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

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

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

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


What does the North West region look like?

Below Above Maximum Dissolved/Ser
Very Low Risk Low Risk High Risk
Average Risk Average Risk Risk ious Adverse
Info

North West 7.76% 11.62% 23.37% 22.88% 11.31% 20.16% 2.91%

Merseyside
7.50% 9.50% 20.03% 24.32% 12.11% 24.01% 2.53%

Warrington &
Cheshire 7.17% 10.62% 23.82% 20.80% 15.32% 20.79% 1.48%

Cumbria 11.67% 16.65% 29.24% 24.19% 6.80% 10.28% 1.18%

Lancashire 8.45% 14.20% 27.70% 24.77% 8.31% 14.24% 2.34%

Manchester 7.07% 10.74% 21.31% 21.94% 11.57% 23.06% 4.31%


This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.

The Power of the BPI: Project Rapier – Liverpool Vision’s objective of
spending £10M to save 40 businesses in the retail sector by end Q1 2009

How do you Identify a…
£729.71

 …company that is at least of
Liverpool (13,704) Above Average Risk
£48,309
 which is based in Liverpool
 which Employs 50 or more
Employs 50 or more (207) Employees at Site
£151,515
 specifically in the Central
Ward
Central Ward (66)
 which is in the Retail Sector
£2.5M In Retail 
Sector (4)
whose payment profile is
deteriorating.
Deteriorating
Payment Profile (1)
£10M



And that business was?

 Zavvi payment profile was 20 days
better than industry sector average
from Jan 2008 – June 2008
 In July Zavvi payment profile was in
line with sector average (20 days
beyond terms)
 By September the profile was 60
days beyond terms, October was 80
days. Zavvi went into receivership in
December
 What is the true cost of poor data -
£10m?


Is the position worsening?
- North West view

0

 Notes: We can see that number of companies whose credit score is declining is more than twice the
October 07 result
 The spike in July has been superseded by the December result


This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.

Is the position worsening?
- Merseyside view

0

 Notes: As with the North West result the Merseyside shows a significant worsening in December



What does a Local Authority Look like when
compared to the North West Region?
North West
Dissolved / Serious
Above Average
Very Low Risk Low Risk Below Average Risk High Risk Maximum Risk Adverse
Risk
Information

7.76% 11.62% 23.37% 22.88% 11.31% 20.16% 2.91%

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

7.50% 9.50% 20.03% 24.32% 12.11% 24.01% 2.53%

Sefton
Dissolved / Serious
Information

11.4% 11.0% 18.6% 8.9% 13.7% 27.0% 1.0%



What does the risk profile look like for Sefton?

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

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%




Sefton
Dissolved / Serious
Adverse Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%

Sefton – Maximum Risk Businesses

Number of
Risk Micro Band Percentage
Companies

1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%




Sefton
Dissolved / Serious
Adverse Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%


Number of
Companies

1 1,147 40.6%

2 329 11.6%
Drill into the highest of the high risk
3 399 14.1%
Businesses in Sefton
4 576 20.4%

5 375 13.3%




Sefton
Dissolved / Serious
Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%


Number of
Companies

1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%



The top 25 businesses by headcount from the
highest Micro-Band of Sefton’s maximum risk band
by geographical location
Where are these Entities located?



Business Link approach
- The Rapid Response Framework

 Stratified response to the current economic climate – 3
Access Routes & 2 Activity Levels
 Level 1: Simple phone Hotline to provide a rapid response to
Business Support Agencies in the North west who have
specific issues
 Level 2: Web Enabled multi partner access to BLNW
Database through Extranet facility. Regulated access with
registered stakeholders to provide relevant data and an
analytical tool
 Level 3: Complex Data Analytics provided from BLNW Data
Team to provide partners with the information required to
make Strategic Decisions
 For light touch intervention activity targeted marketing
campaigns sensitive to the issues a company with a
worsening risk profiles score. – specialist telephone advice,
email contact or web-based toolkits
 For companies / groups facing significant problems more
direct intervention activity through Target Adviser Teams or
through Partner Organisation
 Each activity making best use of Business Support products


Benefits of using the BPI

The BPI system allowed us to “Flag” the companies we assist and
 monitor their “improvement” over time

This monitoring allowed us to review the effectiveness of our
 activities and can be analysed regionally as well as by RES

Each product had a different flag which will allow us to record
 the respective effectiveness of the different products available

System allowed us to compare the performance of companies, that
 have had our support, with the rest of the economy on a like-for-like basis

It enabled us to develop our products using and evidence based
 development framework


Risks & key considerations

 Data Protection (DPA) is a key issue – currently Business Link
are investigating the steps required to allow us to share data
whilst ensuring that we are compliant with DPA

 By focussing on the high risk businesses we run the risk of
ignoring less risky businesses which could reduce Business
Support to a “healthy” section of the Economy

 The service will require significant development within Business
Link and a focus will need to be placed on data integrity

 Business Link can offer a unique perspective on events in the
North West Business community and could add anecdotal
evidence to the BPI to make it more robust


Questions?


Tfm&A Presentation Business Links Case Study Final Ged Amends Wed 19th Feb

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