tfm&a presentation business links case study final ged amends wed 19th feb

© 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.

TFM&A presentation

Ged Mirfin & Neil Geoghegan Business Link Northwest

Jim Godman Experian

© Experian Limited 2009. All rights reserved. 2

Introductions

Contents

Objectives / overview: How Experian Business Marketing could help Business Links

recognise and predict change utilising intelligence to mitigate the impact of the economic downturn

How Experian Business Marketing could we help Business Link generate this intelligence

How Experian Business Marketing could help Business Link process & share the intelligence

Technical overview – Business Links Business Performance Index (BPI)

Questions


Introduction: Key objectives of presentation

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

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

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

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

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


How could Business Link

supply the intelligence required

to respond to the current

economic environment

Business Performance Index

(BPI)

Supplying the intelligence


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 QASInternational Research White Paper

September 2005

The impact of poor data management


Business Link North West Strategy statement 2008/09 (Data Related)

“To be recognised as the leader on regional business intelligence”

“To play a vital role in informing business support policy making”

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


Business Link had 100k company records in its database.

The companies had been assisted by Business Link over the last 20 months

The data captured was used to satisfy contract outputs and as such was very specific

We needed to increase the data set both in terms of size and data richness

Experian profiled Business Link data and found 536k businesses (both Ltd. And unincorporated) at location level in its National Business Database for the North West.

Business Link acquired the data from Experian. Each Experian record had in excess of 150 data characteristics (appends)

The extra data records allowed a significant level of analytics to be done. The data had access to classification systems (Yell and Thompson Directories) and allowed detailed segmentation

One of the Primary data attributes was “Risk Scores and Financial Performance data”

History of the BPI

Business Link Universe of

Company Data

100k

Experian National Business Database Entries for

North West

536k


Business Link Universe of

Company Data

100k

Experian National Business Database Entries for

North West

536k

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


15k

Consolidates North West Business

Universe

436k

85k

Section of database unique to Business Link – Lifestyle and

Grey economy businesses

Section of database unique to Business Link – Lifestyle and

Grey economy businesses

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


Is “real time” data and is updated monthly

Key Data Attributes of BLNW’s Business Performance Index

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)


Relevant Sector &

Geography

Business Financials

Size of Business

Age of Business

Company Status

Risk

Commercial Classification

Shared Partner Data

Business Support Criteria

Business Support Criteria powered by Experian’s National Business Database


Aim: Move away from Anecdotal &

Judgmental to Evidence-based

Policy formulation

Aim: Move away from Anecdotal &

Judgmental to Evidence-based

Policy formulation

Pol

icy

Mak

ing

Exp

erie

nce

Policy Making Evidence

Experience + Evidence = Intelligence

Opinion-based

Evidence-influenced

Experience-influenced

Intelligencebased


Benefits to Key Stakeholders

Marketing

“

Advanced Customer

Segmentation”

Operations

Vastly Improved Lead Quality

Executive

“

Delivering Strategic Priorities

Stakeholder & Partner Orgs.

Sharing of Key Data across the

Region”

NWDA

One Version of the Truth

The Business Support EnvironmentINTERNAL EXTERNAL


Impact Analysis – Key Achievements to Date Marketing: Dramatically Improved Response Rates from Direct Marketing Activity

Has allowed BLNW to Build increased penetration amongst service users through improved segmentation and targeting 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 Has Improve take-up of intensive assists for Broker Team by increasing lead generation – Diaries of Advisers full 3

Months in Advance 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

Delivering Strategic Priorities 18 Months Ahead of Schedule 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

Has allowed BLNW to contextualize the impact of its service delivery against a robust evidence base benchmarking effective performance and identifying gaps

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

BLNW Data recognized as the Primary Source of Business Intelligence in the Northwest Region Creation of Rapid Response Framework with BLNW Data Warehouse(s) at Core Delivery of Strategic Business Trend Data to Key Decision-Makers have become Key Forecasting Indices Data at this level of granularity is available to no other RDA


Risk Category Description

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

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

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

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

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

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

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

Commercial Delphi risk


Very Low Risk Low Risk Below Average Risk

Above Average Risk High Risk Maximum

RiskDissolved/

Serious Adverse Info

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

Merseyside7.50% 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%

What does the North West region look like?

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


How do you Identify a…

Liverpool (13,704)

Employs 50 or more (207)

Central Ward (66)

In Retail Sector (4)

Deteriorating Payment Profile (1)

…company that is at least of Above Average Risk

which is based in Liverpool

which Employs 50 or more Employees at Site

specifically in the Central Ward

which is in the Retail Sector

whose payment profile is deteriorating.

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

£729.71£729.71

£48,309£48,309

£151,515£151,515

£2.5M£2.5M

£10M£10M



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?

And that business was?


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

Is the position worsening? - North West view

0

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


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

Is the position worsening? - Merseyside view

0



Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk

Dissolved / Serious Adverse

Information

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

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

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

North West

Merseyside

Sefton


Adverse Information

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

What does a Local Authority Look like when compared to the North West Region?



Sefton

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

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

What does the risk profile look like for Sefton?



Sefton


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


Risk Micro Band Number of Companies Percentage

1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%

Sefton – Maximum Risk Businesses



Sefton


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



1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%


Drill into the highest of the high riskBusinesses in Sefton



Sefton


Adverse Information

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



1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%




Where are these Entities located?

The top 25 businesses by headcount from the highest Micro-Band of Sefton’s maximum risk band

by geographical location



Stratified response to the current economic climate – 3 Access Routes & 2 Activity Levels

Business Link approach - The Rapid Response Framework

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

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

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 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

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

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

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

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


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

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

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

Risks & key considerations


Questions?

tfm&a presentation business links case study final ged amends wed 19th feb

Documents

experian business marketing

business linksrecognise

business linkgenerate

business linksupply

evidence experian limited

business link process

efforts experian limited

85k436k experian limited