© 2013 Pam Wilde Developing the B2B Offering

8. Interim report – early indications

1

• Recommended areas to explore Develop a clear proposition for engaging business community

Internally focussed – need to focus on external market & customer needs

Prioritise resources and activities based on market needs

Develop brand positioning based on market needs and competitive advantages

Develop multi-disciplinary capability and positioning

Communications – key messages, simply articulated and presented

Process improvements: e.g. easier access and interface with University

Develop sales strategy that supports delivery of University objectives

Embed business thinking and terminology in the University

© 2013 Pam Wilde Developing the B2B Offering

9a. Strategy Development

2

10.1 Understand Market

13. Develop the Customer Proposition

12. Design the offering

1

10.2 Recognise Environment

10.3 Understand customers

11.1 Define competencies 11.2 Identify competitive advantage

14. Communications

Monitor, review, feedback and iterate

16. Create effective collateral and messages

15. Reach the customer: differentiate by type

© 2013 Pam Wilde Developing the B2B Offering

Future Offer

Changing Market Demand

Changing “Environment

”

Successful projects

Enhanced / new

Competencies

Broadened & new

relationships

Collaborative delivery

partnerships

9b. Strategy Development

3

• Market Demand “Size of the Opportunity” Growth & opportunity areas Government Priorities

• Competencies Recognised domains of expertise Advantages vs competitive set

• “Customers & Audience Networking to identify & acquire & develop Mine existing CRM system(s) What businesses need from HEI

• Environment Structures Processes

Proposition

Market Demand

“Environment” Customers

Competencies

NB: The terms B2B (“Business to Business”, UBC (University-Business collaboration) and BUC (Business -University collaboration) are used interchangeably herein,

© 2013 Pam Wilde Developing the B2B Offering

• Current Revenue Streams 2010/11

10a. Market Demand: Size of the Opportunity

£1,054,191

£371,123

£128,596 £605,941

£61,423 £7,963

£203,308

£871,649

Income: All HEIs 2010/11 (£k)

Contract research Consultancy contracts Facilities and equipment related servicesCPD (all types) Intellectual property (IP) Regeneration and development programmesSale of shares in spin-offs Collaborative Research (All Sources)

£1,380 £395 £139

£7,382

£55 £486

£13 £1,234

Income: Northumbria 2010/11 (£k)

4

0.13% 0.11% 0.11%

1.22% 0.09% 6.10% 0.00% 0.14%

NU Share of National Income0.335%

Source: HEBCIS & NU data

All HEIs: £3.3bn NU: £0.011bn (0.335% of all HEI income)ca. 140 suppliers, tens of thousands of (potential) customers

© 2013 Pam Wilde Developing the B2B Offering

“The Wilson Review on BUC”

Businesses have needs in diverse

domains, e.g. • applied research in advanced

technologies• in company up-skilling of ‐

employees• bespoke collaborative degree

programmes• science park developments• enterprise education• entrepreneurial support for

staff and students• higher level apprenticeships‐• skills development of post

doctoral staff

No single HEI can operate in all domains

“Britain open for businessGrowth through international trade & investment”

10b. Understand market: Gov’t priorities

Advanced manufacturing

Aerospace

Agrifood

Automotive

Chemicals

Energy

Defence & Security

Defence

Security

Infrastructure

Construction

Environment & water

Transport (airports, railways, logistics,

marine, ports

Services

Creative Industries

Education Skills & Training

Financial Services

Professional and business services

Retail

Healthcare & life Sciences

Healthcare

Industrial biotechnology

Pharmaceuticals and medical

biotechnology

Technology

www.ukti.gov.uk/download/file/148300.html

“These sectors … are underpinned by two cross-cutting areas – Technology and Low Carbon − whose breadth means that they drive, and enable, all the other sectors”

5

Wilson Review: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32383/12-610-wilson-review-business-university-collaboration.pdf

UKTI 2011

Low Carbon

© 2013 Pam Wilde Developing the B2B Offering

• What SMEs need from HEIs Wilson: SMEs seek to grow by:

1. Up-skilling their workforces; 2. improving leadership skills3. employing more staff4. increasing worker productivity (procedures or technology)5. the exploitation of new markets; 6. developing new products

All of these areas offer opportunities to HEIs from SMEs in B2B services1. CPD, KTP, Consultancy & workplace training2. Business Development, Marketing, Languages3. Consultancy, workplace training, R&D; curriculum development, sandwiches4. Mentoring, (Business) psychology, CPD, KTP, higher degrees5. Fill recruitment gap by consultancy or secondment (as well as graduate placement)6. R&D, KTP, IP

• NESTA: the defining feature of the fastest growing 7% of businesses from 2002 to 2008, generating half of all new jobs created during this time, was a passion for innovation.

10c. Market Demand: SMEs generally

6

In n

o pa

rticu

lar o

rder

NESTA: http://www.nesta.org.uk/

© 2013 Pam Wilde Developing the B2B Offering

• What SMALL businesses need from HEIs BIS: SMALL BUSINESS SURVEY 2010. Small businesses intend to grow by:

• Increasing the skills of the workforce: 75% • Increase turnover by exploiting new markets: 75%• Reduce costs by increasing the productivity of workers: 67%• Increase the leadership capability of managers: 60% • Employ more staff: 64%• Develop new products: 52% (Other means: 3% )

Small businesses do not seek-out HEIs for advice/support:“SMEs do not see HEIs as sources of advice/expertise – they rely on the traditional sources: accountants, consultants, Business Link local services or solicitors. Business networks, LEAs/LEPs, Chambers of Commerce etc are rarely the first port of call.”

• Typical ‘first contacts’ for advice/support by SMALL businesses: Accountant: 37% Consultant: 20% Business Link local: 12%Solicitor/lawyer: 10% Trade assoc: 7% Bank: 6%Other specialists, e.g. HR/Marketing: 4% Businesslink.gov.uk : 6% Business networks: 2%Chamber of Commerce 3% BIS: 3% Enterprise Agency: 3%Other Governmental Organisations: 2% An RDA: 1% Federation of Small Businesses: 1%

10d Market Demand: SMALL Businesses

7

99.2% of UK businesses are “small”, they employ 46% of the UK’s workforce and contribute 29.4% of UK plc’s wealth. www.fpb.org

Definition of “Small Businesses”: 0 – 49 employees

© 2013 Pam Wilde Developing the B2B Offering

10e. Market Demand: Medium Sized Businesses• CBI: What MSBs businesses need from HEIs*

“MSBs will struggle to grow beyond £10m turnover without …”• Acquiring new management and leadership skills • Bringing new talent and ideas into the business • Choosing the right finance strategy for growth • Establishing an export strategy • Exploiting opportunities to collaborate on innovation

“[growth also relies on] firms having supportive professional networks involving banks, universities, legal and accountancy firms, large companies who are customers of MSBs, as well as the government.” MSBs punch above their weight

• MSBs represent less than 1% of companies in the UK – by number• But they employ 16% of all employees and account for 22% of the UK’s total revenue

MSBs more likely to engage with national organisations such as TSB, LEPs, RCUK, UUK, CIHE etc (See Appendix).

Note the subtle change of emphasis between Wilson's view of the needs of SMEs and the CBIs view of the needs of MSBs

* CBI “Future champions: Unlocking growth in the UK’s medium-sized businesses” 2011

8

• Up-skilling their workforces; • improving leadership skills• employing more staff• increasing worker productivity • exploitation of new markets; • developing new products

UUK: Universities UK (www.universitiesuk.ac.uk). TSB: Technology Strategy Board (www.innovateuk.org). LEP: Local Enterprise Partnerships http://www.lepnetwork.org.uk). CIHE: Council for Industry and Higher Education (www.cihe.co.uk) RCUK: Research Councils UK www.rcuk.ac.uk

© 2013 Pam Wilde Developing the B2B Offering

• Training & CPD; Consultancy, KTP & R&DCBI/EDI/Pearson education and skills survey 2011 & 2012.

• Shortage of STEM Graduates• Concerns about “employability skills” • Growing demand for STEM skills in

low carbon, pharmaceuticals and digital media: over 40% of employers have difficulty recruiting in these areas.

Shortage of skills = opportunity for KTP, consultancy, R&D collaboration

What they can’t recruit, they have to buy. Training opportunities still exist

• Despite … pressures 81% plan to maintain or increase training investment• a positive balance of +17% of firms in manufacturing intend to increase their

training spend, widespread reductions planned in the public sector.

Key Sectors: • Manufacturing, Engineering/HiTech/IT/Science

& Professional Services

10f. Market Demand: Large Businesses

9

STEM: Science, Technology, engineering & Maths. Employability Skills:: e.g. team working, problem solving, work experience, initiative, time management.

© 2013 Pam Wilde Developing the B2B Offering

10g. Market Demand: Large Businesses

10

Large businesses still have budgets and plans to engage with HEIs in many domains and sectors.

£651m

See also Part 1 & Appendix.

© 2013 Pam Wilde Developing the B2B Offering

10h. Environment: Optimal B2B Performance

11

• Wilson Optimal B2B performance requires:

• Explicit decision about domains of operation (“define your competencies”)• Effective enquiry systems (point of contact for businesses with HEIs)• Referral/ collaborative mechanisms (within and between HEIs)• Improvement in & achievement of UBC is best attained through cultural change (e.g. incentivise

academics to engage) • Progress is delivered through belief, commitment and leadership.

• S2BMRC*: ‘Cultural change’ (via “motivation strategies”) is essential to implementation, without

which “real progress’ cannot begin to be achieved . Academics must be engaged with [committed to] UBC for it to be effective

“The State of European UBC - Study on the cooperation between Higher Education Institutions and public and private organisations in Europe”: Science-to-Business Marketing Research Centre, Münster Universioty of Applied Science , 2011. [S2BMRC] http://www.ub-cooperation.eu/pdf/final_report.pdf. See appendix.

© 2013 Pam Wilde Developing the B2B Offering

• Common & key causes of failed engagement [Wilson]1. Mismatch of aspiration: Business needs do not align with mission & strategy of HEI2. Capacity constraints: HEI cannot meet time-scale demanded by business3. Capability mismatch: HEI does not have skill-set or facilities required by busies4. Bureaucracy: funding or approval cycles are too long to business to tolerate5. Financial constraints: Narrowly focussed “Full economic costing” (failure to value intangible

benefits of the wider virtuous cycle and benefits of business input) results in unviable pricing. 6. Sustainability: the project horizon does not have an acceptable payback period for the HEI.7. Mismatch of objectives: differential expectations of outcomes from collaboration are not

mutually recognised [and accommodated].8. Contractual issues: agreement on matters such as IP, liabilities & indemnities are increasingly

problematic issues Ensure the offering deals with these matters as part of the package

or Avoid engagement where these matters cannot be resolved

10i. Environment: Causes of Failure

12

© 2013 Pam Wilde Developing the B2B Offering13

11a: NU key competencies• Currently in the middle of the pack with a 2nd & 3rd quartile offering:

CambridgeOxford

Imperial College London

LSE

Durham

University College LondonWarwick

Bath

BristolYork

Southampton

Exeter

King's College LondonNotti ngham

SOASLoughborough

Glasgow

Birmingham

Leicester

Newcastle

Aston

East Anglia

Surrey

Manchester

Liverpool Queen's, Belfast

Royal Holloway

Kent

Reading

Queen MaryCardiff

Essex

Heriot-WattStrathclyde

City

Dundee

KeeleStirling

Aberdeen

Oxford Brookes

Hertfordshire

Aberystwyth

Brunel

Robert Gordon

Ulster

Plymouth

Swansea

Chichester

Goldsmiths College

Huddersfield

University of the Arts, London

West of England, Bristol

Bournemouth

Hull

Sheffield Hallam

Central Lancashire

Birmingham City

Lincoln

Brighton

Winchester Middlesex

Coventry

Bradford

Roehampton

Gloucestershire

Glasgow Caledonian

Westminster

Bangor

University for the Creative Arts

Chester

De Montfort

Portsmouth

Glamorgan

Edinburgh Napier

Bath Spa

Cumbria

Queen Margaret

Kingston

University of Wales, Newport

Teesside

Sunderland

Trinity Saint David

Manchester Metropolitan

West London

Abertay Dundee

Leeds Metropolitan

Salford

Edge Hill

Staffordshire

Canterbury Christ Church

Liverpool John Moores

York St John

Bedfordshire

GlyndwrNorthampton

Worcester

Buckinghamshire New

Derby

Greenwich

Anglia Ruskin

Southampton Solent

West of Scotland

East London

Bolton

London Metropolitan

London South Bank

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

40 45 50 55 60 65 70 75 80 85 90

Rese

arch

Ass

essm

ent

(CUG

201

3)

Graduate Prospects (CUG 2013)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

U 1* 2* 3* 4*

NursingAllied HealthGeneral EngineeringArch & Built EnvBus & Mgt StudiesSocial Work, Policy & AdminPsychologySports-RelatedEnglish Lang & LitHistoryArt & DesignHistory of Art, Arch & Design

Although some ratings can be subject to “gaming”, they are nonetheless valid measures of perception.

2008 RAE Exercise, See Appendix

© 2013 Pam Wilde Developing the B2B Offering1414

CUG Overall, Research and Graduate Prospects Rank 2013

11b: NU key competencies

Source: http://www.thecompleteuniversityguide.co.uk/league-tables

1Q

Art, Design & Social Sciences

Business & Law Engineering & Environment

Heath & Life Sciences

Exploit

Develop

Develop or ignore?

Ignore

2Q

3Q

4Q

•Nursing •Architecture

• Sports Science

• Art & Design• Social Work

•Allied Medical• Building•German• Psychology• Town &

Country Planning

•Acct & Finance•Bus Stud• Comms & Media• Comp Sci• Education• Food Sci• French• Land & Prop

Mgt• Sociology

•Drama, Dance, Cinematics•General Engineering•Hospitality etc• Politics

• Elec & Electronic Eng• Iberian langs• Library & Info Mgt

•BioSci• English•Geog & Env Sci• Law•Mech Eng

•History• Linguistics•Maths• Social Policy

• Italian

•Hist of Art, Arch, Design

• Chemistry• Economics

Q1 Q2 Q3 Q4

© 2013 Pam Wilde Interim Presentation: Developing the B2B Offering15

11c. Current Brand Attributes

Blue-chipcredibility

SMEcredibilty

Public & 3rd SectorCredibility

InternationalCredibility

Effective InterfaceAccess & Navigation

Awareness / Saliency

Value

Track-record& Reputation

Partnership /CollaborationCapacity

Proactive

Nimble

PracticalImplementation

Objectivethinking

Innovative/Bleeding edge

Multi-Disciplinary

People experience & expertise

High-endConsultancy

In-houseR&D

Industry SpecialistGroups

NorthumbriaUniversity

• Positive brand Attributes Combination of academic &

theoretical expertise with practical & implementation skills & experience

Partnerships and ‘embedded’ collaborations

Domain expertise – academic, theoretical & practical

Objectivity Cost advantages

© 2013 Pam Wilde Developing the B2B Offering

CustomerDemand

•Up-skill workforce•acquire new management & leadership skills•Bring new talent and ideas into business•exploit new markets/ establish export strategy• increase productivity (procedures or technology)• improve leadership skills•develop new products

Market Demand

•Aerospace, Agrifood, Automotive, Chemicals, Energy, •Defence, Security•Construction, Environment & Water, Transport•Creative Industries, Educations Skills & Training, Financial

Services, Professional & business services, Retail•Healthcare, Bio-tech, Pharmaceuticals

• 1. Nursing. • 2. Architecture & Sports Science. • 3. Art & Design, Social Work• 4. Allied Medical, Building, German,

Psychology, Town & Country Planning.

12. Designing the Offering

16

• Collaboration

• Innovation

• Objectivity

• Large Business

• SMEs

• Public & 3

rd Sector.

• Budgets

• Open to collaboration

• Talk their language

• Local & Regional

• National

• European

• International

• Large Business

• Small & Medium Enterprises

• Public & 3rd Sector