Decision Support Data for the Thematic Innovation Programme

Decision Support Data for the Thematic Innovation Programme

Contract value: £50,000 – £100,000. The IPROG team use 4 key tests in order to determine the suitability of an area for a targeted intervention: Is the market big enough? Can the UK lead this market?

Reference number:RE140244

Deadline date:03/02/2015

This deadline is for…The final date and time for the submission of bids is 03/02/2015 at 14:00.

Contract value: £50,000 – £100,000

Location where the contract is to be carried out:Swindon

Is this suitable for smaller suppliers?Yes

Name of the buying organisation:UK Shared Business Services Ltd.

Description of the contract

Introduction The purpose of Innovate UK is to accelerate economic growth by connecting, funding and supporting business-led innovation. Our activities fall into three broad, interlinked categories: responsive, challenge-led and infrastructure. In the latter category, we set up centres, networks or other facilities, such as Catapults or the Knowledge Transfer Network, in order to provide the facilities and expertise companies may need to innovate. In the responsive category, interventions such as Smart enable applicants to bring forward their own innovation ideas for public sector investment. In the challenge-led categories the Innovation Programme team (IPROG) identify targeted thematic areas for public sector investment where applicants compete for public sector investment (grants) through competitions such as those for Collaborative R&D. Where responsive mode programmes help to support high growth companies, challenge-led programme are about identifying and supporting the sectors of the future. The scope of this Decision Support Data specification is the challenge-led programmes managed as a set of thematic areas by IPROG. The IPROG team use 4 key tests in order to determine the suitability of an area for a targeted intervention: •Is the market big enough? •Can the UK lead this market? •Is the timing right? •Why public sector investment? In its early years of operation, it has often proved difficult for IPROG to fully distribute the public sector investment budget allocated to this type of intervention. As a consequence there was very little need to consider the relative merits of the interventions across different thematic areas, so long as a positive return on investment could be expected, as there was no (locally) significant lost-opportunity cost if the only alternative outcome was to underspend the allocated investment budget. Today, as an established component of the UK innovation landscape, the capacity for the IPROG team to invest across a wide range of thematic areas is now significantly larger than the available budget. This improved capacity is to be welcomed but it now means our investment decisions have become more complex, as any one investment has a lost-opportunity cost in the form of a potential displaced investment in any of the other thematic areas. The goal of this procurement exercise is to lay out for the IPROG team a decision support system which will provide us with near term data which can be used to inform our investment alternatives across the thematic portfolio. It is important to note that the goal of the procurement is not to set up a long-term economic study of the overall impact the challenge-led programmes. This is already in progress with our economics team and reflects the critical importance it has for Innovate UK to be able to inform government policy and to provide evidence of the effective use of the public money it invests. We’re looking for early indicators of the potential size of the market – and tangible evidence of the potential for UK to derive wealth in it – for example, by tracking private sector investment in new products, processes and services, Desired Outcomes and Timeline The desired outcome of the implemented decision support system is to inform the IPROG team on at least an annual basis (preferably quarterly) of the relative attractiveness of different thematic areas for targeted investment. The required timeline for the implementation is as follows: •April 2015: commence data collection •September 2015: data used to inform 16/17 investment plans •December 2015: data used to analyse 16/17 investment plan •March 2016: data used to analyse the completed 15/16 plan •April 2016: system becomes established practice The deliverable for this project is a set of measures that the IPROG team can use to improve our understanding of the technologies or themes we operate in, or have the potential to operate in, in order to enhance our strategic decision making. The report (to be delivered in stages) should include; •A review of such measures used elsewhere (e.g. in the private sector investment markets, or innovation agencies in other countries); •A set of measures or metrics that the IPROG team can use to enhance our strategic decision making, with clear justification for the use of such measures or metrics; •Data collection to meet the above timetable, with a review of the effectiveness of selected measures after the September and December waves, with amendments made to the approach as appropriate. •A clear set of proposals as to how such analysis can become business-as-usual with the process being run in-house. Requirements 1.Follow on Private Investment The willingness of the private sector to follow IPROG’s investment lead can provide us with objective evidence of the growing confidence in the private sector of potential opportunities. It is also a very interesting measure for us from a strategic point of view as it is important that: •our investment does not displace early stage private sector investment; or •create long term private sector dependencies on our interventions. Our aspiration is that there may be characteristics of the follow on private sector investment which not only suggests that we should be continuing with targeted investment but which also allow us to shape our investment priorities across the whole thematic portfolio. A further aspiration is that there may also be other characteristics of the follow on private sector investment which may in fact suggest that we should reduce the extent of our public sector investment (even if the relative priority is high) as some of the barriers to innovation are lowered or removed. This latter aspiration is also interesting strategically because it may also define a potential boundary between our activities in support of innovation policy (BIS – Business, Innovation & Skills) and those that are in support of industrial strategy (BIS – Business & Local Growth). IPROG also manages a number of programmes reflecting industrial strategy (e.g. aerospace and automotive) and it would be useful to better understand the nature of the boundary between them and the challenge-led programme. Requirement 1: To critically evaluate the potential of follow-on private sector investment to provide near term (at least annual, preferably quarterly) decision support data for IPROG thematic investments. 2. Exceptional Sales and/or PAYE growth There is a growing school of thought that only a relatively small number of exceptionally high growth companies are responsible for a relatively large proportion of our overall economic growth. There is therefore a significant risk that the impact of IPROG investment is being diluted by allocations into thematic areas that are only attracting business with a modest growth trajectory. Near term indicators that can help to identify the relative growth potential of the different thematic areas may also allow us to better understand the relative attractiveness of the different thematic areas from this perspective. Requirement 2: To critically evaluate the potential for exceptional sales and/or PAYE growth to provide near term (at least annual, preferably quarterly) decision support data for IPROG thematic investments. 3. Alternative Approaches The approaches to decision support described above are only are initial thoughts on how we might tackle the challenges associated with our near term investment decisions. We do wish for these to be critically evaluated and we do plan to take these forward if they stand up to detailed scrutiny. However, we are the UK’s Innovation Agency and we enjoy pushing boundaries to uncover greater value. So we also invite you to submit any alternative approaches or variants that you believe will provide us with a superior decision support system. These alternatives can be at an early stage of development and working with us would provide you with a unique opportunity for evaluation. We would be particularly impressed, if a successful evaluation would then lead in turn to an opportunity for commercialisation. It is important though that such an exploratory exercise is run along side other approaches which we can rely on to improve our operational effectiveness – the primary goal of this activity. Requirement 3: To submit a proposal for an alternative approach or variant which would provide us with a superior decision support system and/or for opportunities to work with us in the evaluation/commercialisation of leading edge research associated with managing public sector investment. Decision Support within a Thematic Area A number of the measures being suggested may also enable better decisions to be made on the investments choices we make within each thematic area. We would be interested in exploring this further but it is out of scope of this activity. ——————————————————————– About UK Shared Business Services Putting the business into shared services UK Shared Business Services Ltd (UK SBS) brings a commercial attitude to the public sector; helping our customers improve efficiency, generate savings and modernise. It is our vision to become the leading provider for our customers of shared business services in the UK public sector, continuously reducing cost and improving quality of business services for Government and the public sector. Our broad range of expert services is shared by our customers. This allows our customers the freedom to focus resources on core activities; innovating and transforming their own organisations. Core services include Procurement, Finance, Grants Admissions, Human Resources, Payroll, ISS, and Property Asset Management all underpinned by our Service Delivery and Contact Centre teams. UK SBS is a people rather than task focused business. It’s what makes us different to the traditional transactional shared services centre. What is more, being a not-for-profit organisation owned by its customers, UK SBS’ goals are aligned with the public sector and delivering best value for the UK taxpayer. UK Shared Business Services Ltd changed its name from RCUK Shared Services Centre Ltd in March 2013. Our Customers Growing from a foundation of supporting the Research Councils, 2012/13 saw Business Innovation and Skills (BIS) transition their procurement to UK SBS and Crown Commercial Service (CSS – previously Government Procurement Service) agree a Memorandum of Understanding with UK SBS to deliver two major procurement categories (construction and research) across Government. UK SBS currently manages £700m expenditure for its Customers, our growth projections anticipate this will rise to £1bn in 2013/14. Important information From the 2nd April 2014 the Government is introducing its new Government Security Classifications (GSC) classification scheme to replace the current Government Protective Marking Scheme (GPMS). A key aspect of this is the reduction in the number of security classifications used. All potential suppliers should make themselves aware of the changes as it may impact on this Requirement. The link below to the website provides information on the new GSC:

Classification of the contract

72316000Data analysis services

73300000Design and execution of research and development

79311400Economic research services

79300000Market and economic research; polling and statistics

73110000Research services

72322000Data management services

Additional information

Contract type:Services – Unspecified

Is it a framework agreement?No

Is this contract related to a programme of funding?No

Contract will be awarded based on:Most economically advantageous tender in terms of: The criteria stated in the contract documents

Estimated length of contract:01/04/2015 – 01/04/2016

Who to contact

Contact nameSarah Palmer

Organisation nameUK Shared Business Services Ltd.

AddressNorth Star House, North Star Avenue, Swindon, Wiltshire, SN2 1FF


Extension number:


How to apply

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