DWP SME conference (11 March 2014) - The benefits of doing business with SMEs (Justin Bowser (HTK))

1. The benefits of doing business with SMEs
Justin Bowser
@jkbowser
htk.co.uk

2. Doing business with SMEs
Benefits
Constraints
The right approach
Some examples
Next steps
Q&A

3. Benefits of doing business with SMEs
Less cost
More agility
More innovation
Better continuity of staff
Benefits to local economies
(FSB says add‟l 51p for each £1 spent)

4. Constraints we all need to work within
Yes, there‟s:
Time and cost
Internal policy
EU legislation
But:
Stop “gold plating”
Be more agile within the rules
11 July 2013
The UK’s public sector procurement process is the most expensive
in the EU, research has revealed.
The average total cost of a competitive procurement process is
£45,800 – almost double the average EU cost of £23,900 – of which
£8,000 falls on the public body seeking bids.
Researchers also discovered the cost of attracting a bid from each
bidder in a procurement competition in the UK is £1,260 – against
an EU average of £800 – making the UK the fourth most expensive
for putting contracts out to market.

5. The right approach to SME engagement
Talk, before procurement
Talk, during procurement
Create a level playing field
Think about outcomes
Think about “risk” in new ways
Develop a “supply ecosystem”, not just a “supply chain”
There is a myth prevalent across the public sector that
talking to suppliers informally is somehow contrary to
EU law. This is nonsense - straight forward nonsense.
It is not illegal for public sector procurers to talk to
suppliers. Not only is it not illegal it’s plain common
sense and good commercial practice.
Francis Maude, 21 Nov 2011
“
”

6. Some personal examples
• CMEC (now Child Maintenance Group)
– Automated SMS texting for call avoidance
– Contracted direct to HTK through a framework
– Delivered end-to-end in less than 6 weeks
• Now being rolled out to wider DWP
– HTK working as a subcontractor to BT
– BT working as prime actually creates a
Win-Win for HTK and DWP
Why did it work for HTK?
• Largely a technical
delivery, not “body shop”
Why did it work for DWP?
• Very agile change control
from HTK
Any pain?
• Limited direct comms
between HTK and the
CMEC business team

7. Some personal examples
• SEPA (Scottish Environment Agency)
– National flood warning solution
– Location-based SMS & voice comms
– Outbound messaging and floodline website
• Delivered by HTK and BT
– Completely transparent relationship
– HTK technical delivery
– BT acting as prime
Why did it work for HTK?
• 100% our technical area
of expertise
Why did it work for SEPA?
• A true “partnership”
approach, all at the table
Any pain?
• BT helped HTK to improve
internal business
continuity practices

8. Some personal examples
• PITO (Police IT, then NPIA, then - )
– National Police Portal, www.police.uk
– Police.uk website, on-line crime reporting
– Message broadcasting, UK most wanted…
• Delivered by HTK and BT
– Commercially opaque relationship
– HTK technical delivery
– BT acting as prime
Why did it work for HTK?
• BT helped us learn & grow
Why did it work for PITO?
• Rapid innovation, solid BT
project governance
Any pain?
• Commercial aspects
became very difficult
• Supply chain costs vs
value too opaque

9. Next steps…
Is your current procurement approach “SME friendly”?
(Google “sme friendly criteria”, Commissioning Academy)
Can you mitigate risk in new ways?
(such as smaller, more agile procurement and delivery)
Can you communicate better to/with potential bidders?
(Contracts Finder, procurement pipelines, workshops, „camps‟)
Is your supply chain thinking in the same way?
(Build a flexible, engaged supply ecosystem!)

10. Questions?
Justin Bowser
@jkbowser
htk.co.uk