Author Archive for Business LinkPage 2 of 16

London 2012 Games: Trigger a step change

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Business Link
on 11 September, 2008
in News & Opportunities
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Last month’s Beijing Olympics were huge – but the London 2012 Games will be even bigger. They will be the largest ever staged with more than 10,500 athletes from 205 nations taking part in 300 events across 34 venues.

Some nine million tickets are expected to be sold and 20,000 media representatives will attend. But, while the public focus will be on medals and new world records during the Games themselves, South West businesses are being urged to look at them as an important way to take their growth to the next level by securing more public and private sector work.

Watching the Beijing Olympics gave us a glimpse of the sheer scale of the commercial opportunity. The most important events to take place in Britain for 50 years, the London 2012 Games will have a major impact on the national economy. The Games present one of the biggest procurement opportunities this country has seen for more than 50 years.

And yet, the £billions worth of contracts to be won is only part of the story - key industries and regions will enjoy huge further benefits.

Nick Weaver, Business Link spokesman said: “We must begin to think through the sheer scale of the impact that hosting the London 2012 Games will have on our region. Businesses must begin to pre-empt the opportunities – and get themselves into shape to meet these effectively.”

One obvious, crucial area for the South West economy is tourism. When Australia staged the 2000 Olympic and Paralympic Games, Sydney alone made in excess of £2billion from tourism.

In our region, tourism is one established sector that could reap great rewards from the London 2012 Games – not forgetting that all the sailing events will be held in the South West at Weymouth.

From the experience of the Sydney Olympics, an increase in visitor numbers can be expected before the Games as a result of an increasing focus placed on the UK – this will, of course, peak in the summer of 2012.

But, it isn’t just the tourism industry that will benefit. There will be increased demand in a wide range of sectors. The London 2012 Games will also serve as a useful platform for companies to access world markets and generate new business opportunities.

UK Trade and Investment, the Government’s exporting agency, is also promoting links for London 2012 suppliers looking to establish partnerships overseas, both for inward investment and exports.

Nick Weaver said: “Inevitably, it is the London 2012 Games that are focusing people’s minds – but local firms must also consider the broader opportunities. £billions of additional commercial benefits will be generated by peripheral activity including infrastructure developments and tourism.

“In planning for the London 2012 opportunity, businesses must be creative in identifying these opportunities and developing plans that allow them to capitalise on them.

“In helping local firms get in shape for the London 2012 Games, Business Link’s information and advisory teams are urging companies to focus in their planning on this wider opportunity.”

More info - London 2012 opportunities:

Customer Relationship Management

Published
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Business Link
on 11 September, 2008
in IT & eBusiness and Strategy & Operations
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The worldwide market for customer relationship management (CRM) software increased by 23 per cent in 2007, according to a global study from Gartner Research. Western Europe accounted for just under a third of the total global market.

Such rapid growth has been driven by “continued rapid adoption of software as a service (SaaS), and a continued focus on investments that promote customer retention and enhance the customer experience”, says Sharon Mertz, research director at Gartner.

It appears that the key motivator for adoption of CRM systems is the provision of improved contact management between a business and its customers, and with it, a better customer experience and improved customer retention. In addition, CRM systems help to reduce costs through automation of customer-orientated processes, and allow businesses to analyse customer data to better fulfil future customer needs.

These benefits provide the key motivations for adopting a CRM system, but what is arguably more important to today’s CRM software industry is the key enabler. Or in other words: they key factor enabling more and more businesses to adopt CRM systems. That enabler is Software as a Service (SaaS), or in more simple terms: the Internet.

Software as a Service, or SaaS, has enabled complex CRM systems to be hosted and maintained remotely - on suppliers’ servers - and delivered to end-users across the Internet. This model provides benefits for businesses, large or small, that want to avoid the headaches of managing an in-house CRM system. Those headaches might be caused by the costs of server equipment and data storage, or the resources required to create, maintain, update and improve in-house CRM software systems.

The upshot of this trend is that companies that had previously not been able to adopt CRM systems because of limited budget or resources can begin accessing and using such services instantly and cheaply. The mechanic can use a CRM system to automate MOT reminders. The field salesperson can access and update customer records on the go. The retailer can track sales trends to better understand customers and plan future stock purchasing more effectively. The list goes on.

In today’s cost-conscious economy, CRM systems offer twofold opportunity. First, there’s the established adage that it’s cheaper to retain existing customers than find new ones; CRM systems are well-placed to facilitate this customer retention process (not to mention CRM system data can also be used to plan customer acquisition). And second, the decreasing set-up and ongoing costs of CRM systems means that such benefits are becoming more affordable (numerous online CRM systems cost just a few pounds per user per month, and some are free). Low operating costs, combined with the opportunity to obtain increased value from existing customers, adds up to a significant opportunity for many businesses.

Of course, online CRM systems do come with their share of challenges. Businesses have a responsibility to ensure the integrity and security of customer data - a task which must be given due consideration when adopting remote, online services. It’s true that modern online systems can theoretically be as secure as in-house networked solutions, but with that said - and especially while the SaaS industry is in its relative infancy - it’s important to focus on data security as key priority. Issues of implementation also exist, primarily the challenges of training staff to use a CRM system effectively.

The latter point - about the effective use of CRM systems - is arguably the most resonant and broader issue facing businesses that use or are considering using CRM systems (online or off). It’s true to say that a business with the best CRM system can experience poor customer relations, and a business which relies solely on the ‘human touch’ can show the closest relationships with customers. Good systems cannot replace good people, so it’s important to remember that technology is only part of a wider CRM strategy. Making the distinction between what a system should do and what people should do is an important step in building a comprehensive and effective CRM strategy.

Despite the challenges associated with adopting and managing CRM systems, the benefits are apparent and increasing. As costs fall and the benefit of retaining customers becomes increasingly more important in a challenging economic climate, the cost-benefit equation of CRM is becoming more and more positive. These factors explain the uptake in CRM software over the past year, and serve as a sign to businesses that haven’t explored such systems that now may be a good time to do so.

More info - Customer relationship management

HR Focus - Changes to tax codes, handling performance discussions, employee redundancies

Published
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Business Link
on 14 August, 2008
in HR & People Development
. 0 Comments

Tax & Payroll: Changes to Personal Allowance and Basic Rate Limit in September

Changes to the basic personal allowance and basic rate limit will result in new tax codes for many employees in September 2008.

The basic personal allowance for tax year 2008-09 is increasing by £600, from £5,435 to £6,035. The basic rate limit is reducing from £36,000 to £34,800.

As a result, employers may need to make changes to their payroll, on the first payday on or after 7 September 2008.

Tax codes with an L suffix can be changed without notice from HMRC. For example, a 543L tax code becomes 603L. For other tax codes (without an L suffix), you should wait to receive a P6 notice from HMRC. Other codes should remain unchanged unless you receive a P6. Check the HMRC website for a detailed outline of old and new tax codes.

For more information and guidance, please visit the HMRC website

Handling performance discussions

Over the previous two issues of business i we’ve discussed the importance of performance appraisals and outlined the competency framework - a valuable approach for measuring performance and underpinning performance discussions. This month we offer three tips to help handle the performance appraisal conversation with your employees.

Daryll Scott, from personal development company My Noggin, comments that some organisations “gather valuable feedback, and prepare well-structured performance discussions, only to have it made ineffective by the human factor. Many people are caught up in the process and content of ‘what’ they are delivering and oblivious to how much their behaviour is influencing the other person.”.

This lack of focus on establishing a positive human dynamic during the performance appraisal conversation could undermine the hard work done leading up to that point.

Daryll offers his top three tips for effectively handling performance discussions:

1. Set it up… Take time to set up the discussion in a way that is agreeable and cooperative. Make it conversational, and take time to have a conversation about the conversation you are about to have. Check what the perceptions and assumptions are, and clear them up so that you start positively. By investing time at the start you will provide less opportunity for misunderstanding.

2. Is the boot on the right foot? The most destructive communication takes place when the individual refutes their feedback and then takes an argumentative stance. In many cases the line manager somehow makes it their problem to prove it, providing evidence to convince them of the validity of the feedback. Elicit their self-awareness rather than battering them with documented evidence. Consider the difference between: a) “Your numbers are down this quarter.” and b) “Have you had a chance to look at your numbers for this quarter?” The former is accusatory, the latter is conversational. For a performance discussion to really work, the recipient needs to be taking responsibility for the effectiveness of the conversation, not the line manager.

3. Shooting the messenger… The most effective way of getting out of the firing line so that the meeting can remain productive is to separate your intention for the meeting from the content of the meeting. Most people assume that others are aware of their positive intentions and this assumption is typically wrong. For example: If I say, “My intention is that you fully understand this feedback so that I can provide any support you need to make any changes you want.” Now if the feedback is grizzly, I’m not necessarily grizzly for delivering it. I’m on your side! If you want the individual to make a change, you are far more influential if you are coaching them, rather than pointing your finger at them.

Employee redundancies

A redundancy arises when there has or is going to be: a) a cessation of business, b) a cessation of business at an employee’s place of work (which could be due to relocation of business activities), or c) a cessation or reduction of work.

Redundancy is a traumatic experience for both employer and redundant employee. It can also adversely impact the morale and productivity of remaining workers, not just those directly affected. For these reasons, it’s vital to effectively manage redundancies with due diligence and sensitivity.

There are two key obligations when handling redundancies. First, you must undertake a fair redundancy dismissal procedure. Second, you must keep affected employees (and potentially their representatives) adequately informed during the process.

Fore more information, see our guide: Making an employee redundant

Cloud computing

Published
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Business Link
on 5 August, 2008
in Creative and IT & eBusiness
. 0 Comments

Cloud computing is a familiar cliché. But what does it really mean? What are the benefits and costs? And is it time to jump into the cloud?

An insightful article by InfoWorld brings cloud computing into focus. They define it as “a way to increase capacity or add capabilities” to IT infrastructure, which “encompasses any subscription-based or pay-per-use service that, in real time over the Internet, extends IT’s existing capabilities”.

Think online data backups. Think web-based office, customer relationship management (CRM) and emarketing platforms. Think collaborative online workspaces. Think online image editing. Think remote access to computers a hundred times more powerful than yours. All such services are already in the cloud. And that’s just the beginning.

The key benefit… Cloud computing offers access to increased computing capability and capacity, through cost-effective and scalable online services. The key cost… Cloud computing services are remote and thus beyond our direct control. Its remoteness places the cloud far outside internal IT infrastructure; a fact that raises the important issues of service reliability and data security.

The loss of control over reliability and security vs. the cost-effective, continuous expansion of capacity and capability represents, in simple terms, the cost-benefit equation of cloud computing.

So, let’s further illustrate the benefits…

The cloud provides on-demand access to advanced, powerful computing and software platforms. It creates an online workspace, from which you can communicate, collaborate or work remotely. It offers solutions to a multitude of needs, from mail hosting and security to image processing and storage. The list goes on. And this myriad of cloud services holds the potential to reduce software licensing spend, cut hardware and maintenance costs, and make working lives easier.

Consider the ’software-as-a-service’ platform Salesforce as a case in point. In short, it’s an online CRM platform which offers sales management, marketing automation and customer service and support services. And it offers these services to individuals and global businesses alike. Or… not quite alike… Salesforce is scalable to fit different users’ budgets and needs. That means a small business can enjoy the benefits of the same CRM platform used by global companies, but not pay for features it doesn’t need. As that business grows, the platform can grow too, expanding to provide increased features and capacity. For example, if said business employs its first in-the-field salesperson, they can instantly and cheaply begin using the ‘mobile’ version of Salesforce, accessible via smart phones and internet-enabled devices. Some features also pop along for free, such as the recently announced Google Apps integration, which seamlessly links itself and Salesforce into one single web-interface.

The Salesforce and Google Apps combination is reminiscent of another, competing collection of business productivity services, called Zoho. Zoho offers a whole bunch of services - from CRM, project management and invoicing systems, to a word processor, note taker, organiser, collaborative chat and mail services. Again, these services (some of which are free for up to three users) provide capabilities and capacities that can grow alongside users’ needs.

A third, final and wildly different illustration of the scope and potential of cloud computing is Amazon’s EC2 computing platform, which provides “resizable compute capacity in the cloud”. EC2 lets you create your own virtual computing environment right inside Amazon’s cloud. From there, you can run applications that draw on the raw computing power of EC2’s infrastructure. For example, the New York Times used EC2 to convert scanned images of 11 million newspaper articles into PDF files. They did so in 24 hours; a fraction of the time it would have taken on in-house computers. Again, it’s about increasing capacity and capability.

Now to the thorny issues of reliability and security…

First of all: it’s impossible, and unfair, to make generalisations about the reliability and security of the entire cloud computing industry. A cloud service could theoretically be just as reliable and secure as a similar service running onsite and behind a firewall. Individual cloud services must be evaluated case-by-case, within the context of your distinct IT needs.

In an article entitled “The dangers of cloud computing“, Computer World explores the assertion that decisions about whether to use cloud services to perform IT tasks should focus on whether those tasks are “mission-critical” or “non-mission-critical”. If a task is mission-critical, and a cloud service cannot provide the required level of reliability and security, it should not be used.

As grand as the New York Times’ plan of converting its old articles was - it was not mission-critical. In fact, it was much less mission-critical than the computing tasks millions of users conduct every day in the cloud, such as managing sales leads, following up support requests, communicating with customers and issuing invoices.

These users either don’t know the risks, or they have made professional judgements - to first define if a task is mission-critical or otherwise, and then to decide if cloud computing services are, within that context, reliable and secure enough to complete that task.

Is it time to jump in?

Cloud computing is in its infancy, so it’s wise to be wary about jumping in with two feet. With that said - feature-rich, reliable and secure services are emerging that challenge doubts and increase confidence in the cloud.

The challenge for the cloud computing industry is not so much to offset risks with additional benefits, but to strike a balance between features, reliability and security. If the industry does that, the cloud will succeed.

The challenge for you is much more simple… See through the hype. Look past the benefits, and evaluate the risks too. Then, if you still see value in the cloud, maybe it’s time to take the jump.

Cloud applications and services

We’ve compiled a list of cloud computing applications and services:

Cloud applications and services

Backing up data

Published
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Business Link
on 5 August, 2008
in Creative and IT & eBusiness
. 0 Comments

Data… A few megabytes of spreadsheets or a terabyte of design assets. If your system crashes, you’ll be lost without it… So back it up.

To piece together a backup strategy, you need to understand the common approaches to backing up, and the strengths and weaknesses of available backup mediums.

Backup approaches

Full backups

A full backup creates a complete copy of an entire system, or a complete copy of selected files and folders. The result: an exact clone of selected data.

During every new full backup the entire data set is copied again, regardless of what data has been added or changed since the previous backup.

A new full backup either overwrites the previous one, or is copied to a distinct location, such as a dated folder. The advantage of the latter approach is that you can roll-back to previous backups if newer ones are corrupted or no longer contain recently deleted files.

Full backups are sometimes preferred because of their cleanliness and simplicity. They are a precise clone of a data set which - unlike other backup methods - don’t rely on specialist software to function. You can take away a full backup, open it on another computer, and access the data instantly.

Restoring data from a full backup is relatively simple. Because it’s an exact copy, you can easily navigate to desired files and folders, restoring individual files on demand. Or, you can simply copy and paste the entire data set back to its original location. Of course, data added or changed since the last full backup will be lost after a restore.

The problem with full backups is they take time. 60GB of data could take an hour or longer to backup, and the process could disturb business operations or force you to schedule backups out-of-hours. Such pressures might prevent you from doing them as frequently as you should, exposing you to the risk of significant data loss.

Incremental backups

Incremental backups begin with a full backup. Once that’s done, only amended or newly created data is subsequently backed up. The result: a full backup plus a collection of new data sets containing new/amended data.

The process requires specialist software, which identifies changed or added data and manages the backup and restore processes automatically. Some incremental backups keep archives of previous versions of amended/changed files so that data can be rolled back to a previous state. The backed up data may not be accessible manually, or accessed on another computer without installing the backup software.

The advantage of incremental backups is they are usually much quicker than full backups. The exact duration of an incremental backup depends on the amount of data added or changed, but typically they will take a fraction of the time needed to conduct a full backup. Some modern backup programmes are also more capable of conducting on-the-fly backups, which means you might not need to halt data activity during backups.

Because incremental backups (and subsequent restores) are dependent on specialist software to function, it’s vital to select reliable and robust backup software. The process of working out what data to restore is a complex task, which in rare cases could fail. Modern software is becoming much better at the task, but it’s important to test programmes thoroughly and have confidence in their reliability.

Note: If you’re unsure about which backup approach to adopt, remember: you can use both independently. To illustrate, you could manage a weekly cycle of full backups on one external hard drive, and implement an incremental backup process on another. If the latter process fails you could revert to the previous full backup… The most important thing is to consider the strengths and weaknesses of each method. If the weaknesses of either approach amount to an unacceptable level of risk, consider how a combination of different approaches could be used. (That said, it’s also easy to overcomplicate things - your backup strategy needs to be robust, but also simple enough that you’ll keep it up.)

Backup Mediums

Tape. Suited for large-scale, ’set-and-forget’ automated backups. Tapes are relatively inexpensive but tape drives are costly and relatively slow. Tapes are durable and compact, so they can be easily moved, stored and archived on or off site.

CD/DVD. Cheap, compact and portable. No moving parts, so when in good condition they are relatively stable. Disk capacities are a fraction of modern hard-drives so full backups may require numerous disks, and the process must be managed manually or with backup software. Because disks may need to be changed they are not ideal for unattended/automated backups.

External hard drive. Modern USB and Firewire drives are fast, reliable, and offer storage in excess of internal drives, making full and incremental backups easy to manage. Their portability means they can be easily transported off-site, but like any hard drive they are sensitive to shock, heat and moisture. Some external hard drives support “RAID” configurations for simultaneous mirror backups over multiple hard drives. Some drives can also be networked. All hard drives contain sensitive moving parts, so external drives are as (if not more) susceptible to failure as internal ones.

Server. Servers can be used as a backup location for data stored on individual computers, or they could be employed as a ’shared drive’ upon which users store their data in the first place, which is then backed up onto another backup medium. They are expensive, but often support advanced features such as “RAID” which allows automatic ‘mirroring’ of data onto another server hard drive, stored on or offsite.

Online ‘cloud’ storage. Online storage can be used as a networked hard drive; meaning you can drag or drop files like an internal/external drive, or use your own automatic backup software. Or, they are designed as proprietary backup services in themselves; usually incremental backups which can be done automatically whenever you are online, at a pre-determined time, or whenever your computer is idle. Capacity is usually modest (at a fraction of a typical internal hard drive) but most services offer increased capacities at a cost. A fast, reliable internet connection is crucial if regularly transferring large amounts of data. As with off line incremental backup services, the reliability of the backup process is paramount to the ability to successfully restore. On top of that, online services must be chosen carefully, considering factors such as: guaranteed ‘uptime’ of service, safety and security of where your data is stored, how quickly restores can be accessed and downloaded.

Piecing together a strategy

Rule number one: the more backups in the chain, the lower the chances of losing everything… Rule number two: using different backup approaches and backup mediums helps minimise the weaknesses of one single approach.

Paranoia can be a good third rule when it comes to backups. And it’s easy to become paranoid when you contemplate losing everything. But worrying too much could lead to obsessive backup processes that are overly costly and time-consuming. It’s therefore important to find a balanced backup strategy that reflects the value of your data (or put another way: the cost of losing your data), but one which is also pragmatic about what you can afford to do, and what you can (realistically) be bothered to do.

When defining a backup strategy remember the following… If your data is invaluable, be bothered… The more backups the better, within reason… If you’re not 100% positive on one approach, consider others ways to crack the egg… All backup mediums - regardless of cost - are prone to failure, so consider the strengths and weaknesses of each and use a combination to reduce overall risk… Always have an off-site backup in case of fire or theft… And finally: settle on a backup strategy that protects your data as far as you reasonably can, but one which is realistic enough for you to keep up.

More info

Check out online data backup and storage services in our list of cloud applications and services.