The CBI Report

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More and more we see mobility becoming crucial in cutting costs whilst also being central to the Green agenda. Now it appears that the CBI have come out urging the treasury to start focusing on encouraging technology that's green and still delivers a return on your investment.

The CBI is also calling for a review into lengthy procurement regulations that can halt the uptake of this technology in the public sector. Certainly that's very valid point in that if emissions need cutting immediately, waiting a year to purchase new technology is hardly the best way to go about dealing with our carbon footprint.

Given our long involvement with mobility in the public sector, the efficiency and green agendas have always been closely linked to the way in which we approach the design and deployment of our solutions so this isn't exactly groundbreaking news for Consilium.

However, it does show that mobility solutions - either tactical or enterprise could be on the verge of making some serious headway with Councils should the CBI be successful in exerting their influence over Alistair Darling.

See the summary report below.

The Confederation of British Industry (CBI), which represents UK business, has called on the Chancellor of the Exchequer to use the Budget to push ahead with shared corporate services in the public sector and reduce procurement delays for major contracts as a means of saving £2.5 billion. It wants to see greater efficiency in the public sector. It also wants to see £500 million to fund technology innovations that will help accelerate the shift to a low-carbon economy.
Digital agenda centre stage

In its letter to the Chancellor on efficiency, the CBI’s decision to focus on efficiency, shared services and accelerating the shift to a low-carbon economy puts IT centre stage. While this is pleasing to the software and IT services (S/ITS) sector as a whole, and especially pleasing for suppliers to the public sector, the longer-term message the CBI has conveyed is not so heartening. The CBI wants to see more public spending now to stimulate the economy, but less public spending when the recession ends. If adopted this would help suppliers in the short term and cause issues in the future. Suppliers would therefore be well advised to prepare for even tougher times to come in the public sector at the end of the recession. Indeed, the Chancellor delivered this message himself in the November pre-budget statement.

The CBI’s February forecast shows economic activity contracting by 3.3% this year and remaining static next year. It believes that recovery will be gradual and protracted. It estimates that public sector net borrowing will peak above 10% of GDP, while unemployment will reach 3 million in 2010.
Shared services

The CBI is right to give yet another push to shared services. Sharing core back-office services between government departments could save public money without impacting on front-office functions or services. To date we have seen some welcome piecemeal developments, but their scale has been nothing like what was expected following the push that the Gershon efficiency review gave to the idea back in 2004. If the government does follow up the CBI initiative, suppliers are well equipped to address the shared services agenda, once they have overcome their surprise that something big has finally happened.
Green agenda – more immediate opportunities

The green agenda presents more immediate opportunities to the S/ITS sector. A dramatic and speedy reduction in carbon emissions is now deemed essential, with many looking to IT solutions as the only way forward in the short term.

The CBI’s push for investment in the green agenda is something that is more likely to get a ready response from the government. There is a big role for IT to play in delivering this agenda, so suppliers are well advised to take it seriously.

The green agenda is gaining real traction, especially with the Obama administration in the US taking the matter very seriously. Scientific opinion is of the view that early projections of the rate of climate change were far too optimistic. Even Sir Nicholas Stern, who carried out the review of the issue for the UK government, says he was too optimistic.

Suppliers would be well advised to understand the green agenda and identify areas where they can contribute. As the green agenda moves centre stage it becomes more important as a commercial opportunity. It will not just be about ‘greening’ existing offerings but also looking at new, innovative opportunities.

Source: www.cbi.org.uk