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© 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.
Experian Scottish Public Sector ConferenceDr. Ged Mirfin, Chief Data Officer – Business Link Northwest
© Experian Limited 2009. All rights reserved. 2
Introduction: Key objectives of presentation
Understanding Performance Gaps & Political Market Failure in Public Sector Data (Non) Use & Abuse
Understanding Performance Gaps & Political Market Failure in Public Sector Data (Non) Use & Abuse
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
How to improve the delivery of Business Support & mitigate Commercial Risk through contextually
relevant data-driven marketing
How to improve the delivery of Business Support & mitigate Commercial Risk through contextually
relevant data-driven marketing
© Experian Limited 2009. All rights reserved. 3
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
© Experian Limited 2009. All rights reserved. 4
Context: Delivering support to businesses in the recessionary and post recessionary economic climate
Problem 1: Identifying Struggling Businesses
Problem 2: Finding them early enough. There are No Second Chances in a Recession!
Problem 3: Economic Impact on Key Business Segments. How badly have they been and what is the likelihood of Commercial Failure? Can Business Support can make a difference?
Problem 4: Policy Makers don’t have context to Make or Measure the Impact of Policy
© Experian Limited 2009. All rights reserved. 5
The Public Sector’s Historical Problem: Push marketing
The Business Link brand has historically had poor customer intelligence
The absence of sufficient quality data meant:
No holistic overview
Marketing efforts were supply-push
Generic marketing campaigns
Nationally driven campaigns lacked Impact and affected brand awareness
Operational efficiency suffered
© Experian Limited 2009. All rights reserved. 6
Truism number 1Good decisions are impossible to make without intelligent data
© Experian Limited 2009. All rights reserved. 7
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”
© Experian Limited 2009. All rights reserved. 8
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
© Experian Limited 2009. All rights reserved. 9
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
© Experian Limited 2009. All rights reserved. 10
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
© Experian Limited 2009. All rights reserved. 11
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)
© Experian Limited 2009. All rights reserved. 12
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
© Experian Limited 2009. All rights reserved. 13
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
© Experian Limited 2009. All rights reserved. 14
Business Performance Index
(BPI)
Business Link Northwest’s BPI (Business Performance Index) Data Warehouse
CHAMBERS OF COMMERCE
SUB-REGIONAL PARTNERS
LOCAL AUTHORITIES
CLUSTERS & TRADE
ASSOCIATIONS NWDA
BUSINESS LINK NW
TUC / UNIONS
GOVERNMENT OFFICE NW
JOB CENTRE PLUS
HR1 to BERR
BUSINESS LINK DATA WAREHOUSE
RECORD BY COMPANYCompany Name
Registered NumberCompany Address
Local Authority & WardSector
Turnover & GVA EstimateNo. of Perm employees
No. of Jobs at Risk
>20 Redundancies within 90 days
Figure 1 Data Capture
ESTABLISH RAPID RESPONSE TEAM
DEVELOP STRATEGY/POLICY FOR SUPPORTING COMPANIES IN CRISIS
COMMUNICATE STRATEGY/POLICY TO PARTNERS (JCP, LSC, BLNW, TRADE
ASSOCIATIONS) & INTERNAL PARTNERS
© Experian Limited 2009. All rights reserved. 15
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.
© Experian Limited 2009. All rights reserved. 16
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
This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 17
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?
© Experian Limited 2009. All rights reserved. 18
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
Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious
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?
This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 19
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?
This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 20
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?
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
This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 21
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?
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
Drill into the highest of the high riskBusinesses in Sefton
This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 22
Sefton
Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / 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?
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
This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 23
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
This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.
© Experian Limited 2009. All rights reserved. 24
Business Link approach - The Rapid Response Framework 1
How Can We Help?
Co
mp
lex
ity
of Q
ue
ry
Business Link Involvement
The Rapid Response FrameworkComplex Data Analytics
to provide Partners with
very detailed information
Simple phone Hotline to
service requests for Data
from Business Support
Agencies
Web Enabled multi partner
access to BLNW Database
through Extranet facility
© Experian Limited 2009. All rights reserved. 25
Stratified response to the current economic climate – 2 Activity Levels
Business Link approach - The Rapid Response Framework 2
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
© Experian Limited 2009. All rights reserved. 26
Business Link approach - The Rapid Response Framework 3
-Business Performance Index - Partner Engagement Who have we worked with?
-Wave 1
-Wave 2-Wave 3
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“Understanding your customers improves customer engagement”
Your customers understand
you
You
understand
your customers
Don’t think about ‘what can you do for your customers’,
but ‘what can your customers do for you’
EmailFace 2
face
Call centre
Internet
Overall service quality
Image
Value for
money
Overall company
ratingLoyalty
© Experian Limited 2009. All rights reserved. 28
Contextual relevance
Relevance and engagement are
delivered via intelligent marketing
content to suit what we know
about end users
© Experian Limited 2009. All rights reserved. 29
Contextual relevance
Contextually Relevant Marketing is highly Localised and Personal
This style of marketing is not possible without Exceptional Levels of Customer Insight.
Ultimately this is about understanding your audience & then delivering Messages that are Current and Relevant
© Experian Limited 2009. All rights reserved. 30
Direct Marketing
Need: To Achieve High Levels of Awareness and Developed
Understanding
Solution: Maximising the Take-Up of Product & Increasing Service
Consumption through Optimising Lead Generation and Improved
Customer Targeting
© Experian Limited 2009. All rights reserved. 31
Crunch time for Bolton Businesses
Jointly branded campaign with Business Bolton
Key Messaging delivered to businesses within the Bolton area, about the kind of help and support available to them during the economic downturn.
Campaign delivered via a combination of Direct Mail and eComms Channels
© Experian Limited 2009. All rights reserved. 32
Crunch time for Bolton Businesses
© Experian Limited 2009. All rights reserved. 33
Brand Building & Enhancement
Need: To Associate BLNW Brand Locally Accessible Service Offering which is Focussed on Local Need
Solution: Evolving a Strong Local Brand Identity focussed on
Issues and Themes specific to North West Businesses
Brand Aware
Supplier
Brand Aware
Supplier
© Experian Limited 2009. All rights reserved. 34
The BLNW Brand: Guiding you on your journey
Email Marketing Campaign designed to drive Traffic to New BLNW Web-Site and Knowledge Portals
Tailored Advice on Cash-flow Management and Late Payment.
Campaign delivered via Highly Targeted Email Broadcast and Inserts in Subscription-Based Electronic News Letter.
© Experian Limited 2009. All rights reserved. 35
Beat the credit crunch – manage cash-flow
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Manage cash-flow – understand the essentials
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Prevent late payments
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Events Marketing
Need: To Differentiate Product Offering from Other Players in
the Marketplace
Solution: Expert Coaching through Educational Seminars at Co-Branded Events. Delivered by Acknowledged Specialists from
Market Leading Blue Chips Associating Service Offering with
Other High Visibility Premium Brands
© Experian Limited 2009. All rights reserved. 39
© Experian Limited 2009. All rights reserved. 40
Survive and thrive
Objective to engage with SME community demonstrating that BLNW is in a good position to support business through the ‘credit crunch ”.
Series of 11 events in Sub Regions to inspire and motivate Businesses to take action and encourage them to position themselves to survive & improve!
Held in partnership with Key Regional Business Support Stakeholder Organisations.
Aim to strongly affirm Key Differentiator of BLNW Quality Service Offering by associating BLNW Brand with recognised and respected Business Support Agencies.
© Experian Limited 2009. All rights reserved. 41
© Experian Limited 2009. All rights reserved. 42
© Experian Limited 2009. All rights reserved. 43
PR & Communications
Need: to Enhance BLNW Market Reputation
Solution: Thought Leadership Campaigns Delivered through PR
& Communication
© Experian Limited 2009. All rights reserved. 44
United we stand
Objective to Underpin BLNW’s positioning as leader in Business Intelligence across the region
Demonstrate the expertise of BLNW
Provide unique insights into the economic health of the region
BLNW and Lancashire Telegraph campaign offers editorial, events, workshops and podcasts/webchats
© Experian Limited 2009. All rights reserved. 45
Graphic provided Courtesy of Lancashire Telegraph – part of the Newsquest Media Group
© Experian Limited 2009. All rights reserved. 46
Lancashire Telegraph launches campaign to support businesses
“TODAY the Lancashire Telegraph launches a major campaign to help businesses fight back against the recession” – BRAND ASSOCIATION
“New figures reveal that almost 4,000 East Lancashire businesses are staring into the financial abyss at a time of unprecedented economic hardship”. – TRUSTING OUR MESSAGE
“The campaign comes as figures from Business Link Northwest show that 14per cent of East Lancashire companies – 3,977 – are at maximum risk of failure”. – POSITIONING OURSELVES AS THE AUTHORITY ON THE SUBJECT
With more than 28,000 firms across East Lancashire, The Lancashire Telegraph and Business Link Northwest are looking to give them the help they need to ride out the recession. – THE HOOK
“Business Link research shows that…….” BRAND ASSOCIATION AND AWARENESS Blackburn with Darwen has the highest number of businesses at maximum risk – 15 per cent (1,198) of its 7,950 businesses. - GRANULAR DATA CONTEXT AND ENGAGEMENT
“The figures have been compiled by global credit management company Experian and have been built into an innovative Business Performance Index developed by the Business Link data analysis team” – BRAND ASSOCIATION.
© Experian Limited 2009. All rights reserved. 47
Feedback – brand awareness?
“It’s a great idea. We all have a responsibility to the community at a time of recession and
newspapers have a great responsibility, which you are showing, to try and help businesses get all the help they need.”
David Cameron, Tory Leader
© Experian Limited 2009. All rights reserved. 48
Feedback – brand awareness?
“Small and medium size businesses are important because of the number of people they
employ. The Lancashire Telegraph’s campaign is immensely important too because unless people work together at a local and national level to do the best for East Lancashire businesses, we will
not get through this recession.”
Nick Clegg, Liberal Democrat Leader
© Experian Limited 2009. All rights reserved. 49
Feedback – brand awareness?
“The Lancashire Telegraph campaign is vitally important. It remains a truth that too many business people freeze when faced with difficulties and getting them to ask for
help early is a must.”
Jack Straw, Blackburn MP
© Experian Limited 2009. All rights reserved. 50
Viral Marketing, Advocacy & Reference Management
Need: Build Customer Advocacy
Solution: Building Stakeholder Advocacy Networks through Viral
Marketing
© Experian Limited 2009. All rights reserved. 51
Selling the vision
Searching for Evangelists Delighting Stakeholders and
Customers with Insight Become the Primary Source of
Business Intelligence in the Region One Version of the Truth and One
Author of Widely Circulated Data Assets
Use of Self Replicating Viral Marketing via Effective Working Groups and Representation at Critical Policy Forums
Nudge the Change Architects (Thaler & Sunnstein) and Be Confident in the expansive capabilities of B2B Mood Contagion
© Experian Limited 2009. All rights reserved. 52
Conclusion: 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
© Experian Limited 2009. All rights reserved. 53
Questions?
© Experian Limited 2009. All rights reserved. 5454
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