A Report for One NorthEastKnowledge, Information & ICT

April 2004

Realisation of ePotential

Strategy 1Context & VisionOutcomes

Infrastructure 3Regional Broadband StrategyRural Broadband StrategyRegional Aggregation BodySatellite & WirelessInternet Protocol (IP) ExchangeRegional Business Database

Systems 6Strategy for a Common PlatformBalanced ScorecardThe Regional PortalNorth East Regional Information PartnershipIntelene K-IconeGovernment & The Regional Smart CardCollaborative Working

eLearning 10StrategyThe Learning FoundationNorthern Grid for Learning

The Broadband Fund 12

The Future 13CODEWORKSData Centres & The European Telecommunications Resilience and Recovery Association (ETR2A)Virtual LibraryeJustice

Case Studies 17

Contents

This short report is aimed at capturing the North East's key eRegion projects and initiatives. It updates their progressand provides illustrative case studies.

The report is based on input from the team of people involvedin the development and delivery of the region's eStrategy. We would like to thank them for their help in its compilation.

1section

2section

3

4

56

An overview of rationale and top line programmes

Broadband &connectivity

Information CommunicationTechnology (ICT) applications, enabling eCommerce; accessto information; unlockingknowledge

eLearning strategy togetherwith examples of progressiveinitiatives designed tofacilitate and acceleratelearning across the region

Research & Development andother projects where theNorth East is taking a lead onbehalf of the UK and Europe

Small and MediumEnterprises to Multinationals

section

section

section

section

7section

Context & VisionThere is no doubt that electronic communication and eBusiness are here to stay. Major global product and serviceorganisations already use Internet-centric strategies and Information Communication Technology (ICT) to manage andmarket themselves. Surviving ‘dot com’ companies are now building strong sustainable businesses. Business transactionsvia the web are growing at an accelerating rate, in 2002, worth £23bn, a 40% yr/yr growth. In 2003, 54% of businessesbought online, growing from 45% in 2001 (source: Office for National Statistics).

Those not connected, will increasingly miss valuable opportunities to maintain their competitive advantage, moreover, theywill be open to threats from globalisation and consolidation; trends which are increasingly apparent in areas not alwaysanticipated, such as back office services and call centres.

These opportunities and threats apply equally to businesses, public organisations, regions and citizens alike.

This is why the North East is determined to continue improving its involvement in eBusiness and communication technology, underpinning the realisation of our vision:

'By 2010, to be a world class effective and competitive global location in which to conduct business'

Key elements of the strategy are cross-referenced to appropriate sections later in this report. The strategy can be viewedin four interlinked areas:

Building basic supply side infrastructure such as broadband

ICT systems, a series of enabling applications designed to accelerate the use of, and build demand for ICT, suchas the Regional Portal

Enabling eLearning to build our capacity to compete in a global environment

Addressing the future, and dealing with the risk of market failure

Basic infrastructure is being addressed through a combination of local wireless/satellite systems together with an accelerated rollout of fixed broadband. In 2003 the region set up its Regional Aggregation Body, which is the vehicle formanaging this process together with recent rural and remote area broadband contract winners, British Telecom [seeSection 2].

ICT systems are designed to facilitate and accelerate usage and thus create demand for ICT in the short and mediumterm. Their focus has been on enterprise through the Regional Portal and its initiatives such as 'GROW' in urban and market towns, and on unlocking knowledge in the region through a knowledge network: The North East RegionalInformation Partnership (NERIP), The Intelene project; The Observatory www.n-e-knowledge.com; and so on [see Section3].

The region’s eLearning strategy is focused on building on and supporting existing leading edge activity, together withsponsorship and encouragement of targeted an innovative projects.

The medium term future will include positioning the region as a major centre for data handling and security through the IPExchange and the Data Centres project. This is complemented by research, development and innovative activity comingfrom our Centre of Excellence for Digital Business: CODEWORKS, and through the region's support of The EuropeanTelecommunications Resilience and Recovery Association (ETR2A).

OutcomesSince 2000, the Region has moved from 11th to 5th position on the DTI's ICT Ranking. In March 2004, DTI/DEFRAacknowledged the Region led the country on infrastructure and the cultural attitude of senior managers. This representsthe achievement of an objective set in 2001.

Strategy1

1

In 2003, we also achieved 1st place in three areas: Online business integration with suppliers; measuring the cost of technology and propensity to pay tax online. 2nd place in four areas: Business use of Wide Area Networks; ordersystems/back office links; business bandwidth and the number of businesses integrated with customers. There were othersuccesses and we will work on our disappointments.

In addition, in February 2004, Sunderland City achieved a place (alongside Washington USA, Nova Scotia Canada, Yokosuka Japan and others) in the final six of an international competition run by The Intelligent Community Forum. The competition judges community achievement in bridging the Digital Divide, deployment of broadband, encouraginginnovation and so on. The results of the DTI study and the TNS (Taylor, Nelson Soffres) ‘IT Savvy’ research in February2004 show that, overall, the region is more comfortable than most in adopting ICT and has made tremendous progress inlittle over three years.

The overall shape of the strategy is best expressed by One NorthEast’s eJigaw model, which offers an ‘at a glance’representation of key elements.

eJigsaw - ‘At a Glance’ Guide

Strategy

2

The Strategy Document is called ‘Towards an eRegion v-3.0’ - and is available at www.onenortheast.co.uk

InfrastructureSignificant effort and investment in infrastructure is delivering rapidprogress in connectivity, enabling eEnterprise and eGovernmentacross the region. Key programmes are:

The Regional Aggregation Body (RAB)

Rural Satellite and Wireless projects

Internet Protocol (IP) Exchange

The Business Database

Regional Broadband StrategyOver the period February 2004 - February 2005 the North East ofEngland is embarking on a regional broadband enablement project. This project will see more than 98% of the region's population, and virtually 100% of region's businesses, in a positionto access, as a minimum, BT Asynchronous Digital Subscriber Line(ADSL) broadband. Over £10 million of public and private money isbeing spent to deliver some £30 million of telecommunication value.As a consequence the region will, for a short period (anticipated ataround a year to eighteen months), lead the country in terms ofavailable broadband infrastructure.

Importantly, the region has a number of additional broadband technologies available. Despite lagging the rest of the country interms of the take-up of BT's ADSL technology, until recently, the region has led the country in the adoption of cable broadband, satellite broadband and wireless broadband adoption in key geographical areas. Overall this means that sinceSeptember 2001 the region has headed the overall national broadband growth league.

The key to unlocking the potential that broadband has to offer is described in more detail throughout this report, but themain themes and strategies being explored are:

Reversing the outflow of data (and thus revenue) by creating data storage business opportunities, backed by the 'Bring our Data Home’ campaign

Improving back office and administration efficiency, for example Northumberland County Council are said to have saved around £1m in costs through broadband enabled software. Typical examples might be shared payrollsystems

Streamlined design and 'time to market' processes for goods and services [see Knowledge Campus case study]

Providing access to global markets, as illustrated by many case studies later in the report

Delivering better customer service, for example through easier product selection, ordering and order tracking. The GROW initiative managed by n-e-life is aimed at unlocking this potential

Learning online [see Section 4]

Rural Broadband StrategyThe infrastructure strategy for rural areas mirrors that of the whole region, with the addition of the use of wireless and satellite technology. This technology enables broadband in remote areas, and is deployed as an interim measure duringthe rollout of the BT ADSL Project.

2

3

Specific rural themes, opportunities and strategies are also in place:

Enablement of new business centres such as Hexham's i-space (www.tynedale.gov.uk)

Encouraging eCommerce activity through the GROW initiative [see case studies - Section 7]

Tourism will be encouraged through eCommerce and providing ICT access to visitors (to contact their businesses, their families etc.)

Enabling the transfer of information, learning and expertise to diverse rural communities (see DEFRA andother sites www.defra.gov.uk)

Making transactions and administration efficient and cost effective, enabling the farming community to manage their business more efficiently (grants, legal issues etc.) and enabling rurally located services to survive (e.g. post offices)

The specific role of key programmes is explored below.

The Regional Aggregation BodyThe Regional Aggregation Body (RAB) is the goverment’s regional (demand) broadband aggregator for public sector bod-ies, and is the accepted best value route for public sector broadband procurement.

The RAB is a limited liability partnership whose members include: DTI, DfES and One NorthEast.

The North East RAB is established, a chief executive was appointed mid 2003 and a £10m contract has been awarded toBT to deliver ADSL across the region. This project will be managed by the RAB.

As well as managing this contract, the RAB is closely involved in the IP Exchange and Data Centre projects [see Section 6], and will continue to explore opportunities arising from the aggregated demand for broadband infrastructure,alongside the range of delivery options available.

It is anticipated that by Spring 2005 every North East community and 98% of the population will have access to broadband and ADSL services.

Satellite and WirelessThe Satellite and Wireless project, managed by The Regional Portal Company, commenced in 2001 and was originallydesigned to provide broadband infrastructure throughout the rural North East.

The project co-ordinated and complemented existing sub regional initiatives, finding and filling gaps in provision. Some 42satellites dishes, 6 with wireless systems, have been installed, creating access for around 200 businesses [see Section 7].

As BT exchanges are enabled as part of the RAB contract, the Satellite and Wireless project will evolve into a gap filling role, re-assigning satellite coverage to areas where alternative access is required.

Internet Protocol ExchangeDuring 2004 the region will introduce an IP (Internet Protocol) exchange. The exchange provides a cost effective choiceof links to the region's businesses and organisations via a 'high capacity backhaul' connection to the world's largest volume Internet exchange at Telehouse in London.

Essentially this will provide direct access to huge capacity at a lower cost than the current, fragmented supply sources.Telecommunications users in the North East, providers of Internet services, web hosting companies, voice over IPcompanies etc. will see savings and improvements in efficiency. Moreover, we will have a facility capable of handling expansion, positioning the North East as a region with internationally competitive capacity to handle data exchange andstorage.

Infrastructure

4

The expected benefits will be: Telecom cost savings (akin to the 30% achieved in Scotland), a reversal of the net exporting of data from the region, and the potential to create new businesses concerned with the safe, secure storage ofdata from outside the region [see Section 6 - Data Centres and ETR2A ].

Regional Business Database'Enable' is an initiative designed to create a fully searchable business database for the region. The portal company(www.n-e-life.com) already profiles over 66,000 north east businesses, and the quality and depth of this unique databasewill continue to be enhanced in both accessibility and content. The database is available now, via n-e-life, and enhancements are expected to go live in 2004. This asset has potential benefits for Public and Private sector strategydevelopment and marketing activity, enabling profiling, segmentation and electronic or conventional communication.

Infrastructure

5

Systems3Strategy for a Common PlatformIn 2001/02 One NorthEast invited tenders for the provision of anoverarching IT integration platform for the region. Mi Services Grouppartnering with Oracle Corporation won the tender, increasing itsportfolio of strategic public sector IT platforms across the region. Thepackage provides access to licenses for the Oracle eBusiness suite at significantly advantageous rates.

Integration by DesignOracle offers an integrated and comprehensive suite of applications,such as: Finance, Customer Relationship Management (CRM) andProcurement, which operate on a common database. EffectivelyOracle is becoming the de-facto standard for local eGovernmentsystems, positioning itself as the strategic partner of choice in manypublic sector areas.

One NorthEast, Tyne and Wear Development Company, EagaPartnership, The Regional Portal Company and NorthumberlandCounty Council have all adopted Oracle.

Clearly many value for money and functional advantages are available to the region if more organisations adopt Oracle, thus moving to a common database platform, including:

Reductions in the need for so called 'middle-ware' systems to join together disparate or non-compatible systems

Reducing the cost of operating diverse and complex systems

Enabling a 'single source of truth' where only one record (say for a person or business) exists, but may be accessed via any or all of the application programmes. This feature is important for security critical applications such as Identification Referral Tracking (IRT)

A number of project themes have been identified and comprise current 'work in progress':

Regional CRM - provides a platform for One NorthEast and other similarly aligned Regional Stakeholders to effectively communicate, interact and transact with the Region's businesses and also provides a single source ofregional truth on the state of the region's businesses

Smart Cards/Trusted Services Network - recognised in the Regional Economic Strategy as a catalyst for electronic interactions with the support of all local authorities in the region. Oracle licences are supporting the database needs of this project and the development of a Regional Hub

IRT/Social Care - Gateshead & Newcastle Passport to Services Trailblazer is utilising the Oracle licences to support this regional project

Sub-regional initiatives - The Tees Valley Portal has taken advantage of the Oracle licences to support this sub regional project. Northumberland Strategic Partnership are in discussions about using Oracle in support of some of the projects they have identified

Clusters - provides a basis for organisations to be considered and nurtured in terms of common themes for their business cluster(s). TWDC & NECC are both involved with this theme and the use of the licences

eProcurement - The Regional Portal which has been supported by the allocation of Oracle licences provides a baseline for electronic commerce and hence increases opportunity for businesses to focus on growth

Government Taxonomy - Northumberland County Council are leading the pilot for Oracle's Public Sector Content Management framework which is based on the implementation of the Oracle eBusiness suite. Further organisations have been identified who wish to follow Northumberlands pilot

6

SystemsBalanced Scorecard: www.n-e-knowledge.comThe Oracle suite also delivers the framework to interrogate data across all applications, in order to produce a BalancedScorecard report.

It is perhaps helpful to visualise Balanced Scorecard as the dashboard of a vehicle, presenting up to date information aboutperformance. Clearly, the more applications linked to Oracle, the richer the information available on the Scorecard. In thesame way that vehicle management is improved if the driver is aware of oil pressure, temperature, revs, distance travelledetc. as opposed to simply relying on a speedometer.

The Balanced Scorecard framework is currently linked to applications within One NorthEast, and has the potential to deliver Balanced Scorecard results for region wide performance.

The Regional Portal: www.n-e-life.comThe portal is a dynamic environment, providing easy access to relevant information and support for citizens, businesses and visitors to the region. n-e-life is a virtual 'place' whereindividuals can interact, communities can be established, businesses can trade and theregion be represented through a virtual 'front door'.

The first of its kind with this level of functionality, the portal remains in the vanguard of online interaction initiatives in theregion. Combining direct delivery of services such as n-e-opportunities, with facilitating key initiatives e.g. the GROW initiative (see below); and the Satellite & Wireless initiative. The portal has contributed significantly to theeRegion strategy, and has pioneered approaches and methods now considered as required, or desirable, elements ofregional strategy across the country.

As it moves towards a solid sustainable model, the portal is developing a full eProcurement service, and is building on itsrole as an enabler amongst regional partners, providing eSolutions to joint problems. The portal is at the heart of manyinitiatives currently being implemented. Its name appears frequently in this report. However, the following core projects not detailed elsewhere are worthy of special mention:

Specific sub-portals, including disability (www.n-e-ability.com), equality and diversity

The Market Towns ICT Initiative, funded by a combination of the Rural Development Programme (RDP) and OneNorthEast, has launched rural internet portals serving 13 towns. The portals deliver a package of eCommerce websites and training for local businesses and organisations. To date around 850 businesses have websites andthe potential for eTrading and eCRM

Virtual clusters - currently enabling around 4,000 businesses from ten industry clusters to operate more efficiently in a global arena. This effective programme utilises powerful and innovative portal technology as demonstrated by two established clusters, Northern Offshore Federation and Northern Defence Industries, which are represented in the case studies later in the report. There are eleven more virtual clusters in thepipeline

Urban and rural 'GROW' initiatives - practical, hands on demand side activity, upgrading SME and community organisation's use of eBusiness tools [see GROW case studies]

n-e-opportunities - online access to public sector business opportunities to subscribers, which has generated(together with associated sites and clusters), £millions in turnover for regional businesses [see case studies]

Shopping Mall (www.n-e-shopping.com - managed by n-e-life.com) the n-e-life Shopping Mall is supported by theEuropean Development Fund and One NorthEast. It provides a safe and secure environment to allow people to shop online and for retailers to trade with minimum effort and expense

7

SystemsThe North East Regional Information Partnership (NERIP)NERIP is a partnership of public and private sector data providers and users. The aim of the partnership is to improvethe availability and quality of data, intelligence and statistical evidence to help and to inform policy makers. The goal is to add value to the decision making process, and thus improve economic performance, quality of life and the resilience of the region.

A Director of Regional Intelligence was appointed in 2003, and the first major report: 'The State of the Region', a statisticalinsight into changing social, economic and environmental characteristics of the north east, has been published (see www.n-e-region.com).

Intelene, K-Icon (knowledge-icon) ProjectIntelene K-icon is an R&D project, aimed at using novel implementation of ICT's, to create a knowledge network amongst key regional information owners, aggregators and users. At the least it will have applications in Enterprise, Health and Learning sectors.

The first phase of work is complete, incorporating:

Developed route maps for applications in Health and Learning

Piloting Intelene in the Enterprise sector where it will be at the heart of the model proposed by the Business Support Review project, a region wide 'brokerage' model for consolidating and delivering all regionally available support to Start-ups and SME's

eGovernment & The Regional Smart CardProgress towards best value goal BVI 157 (100% of customer facing services available by eDelivery by December 2005)is good. The region's public sector expects to meet or beat this target.

The North East eGovernment Partnership is using internal and external benchmarks to monitor and motivate progress.In addition it has identified and is working on areas where shared resources and tasks can deliver regional benefits,such as: Compliance to Data Protection, and setting up a region wide eDemocracy facility to enable fast and early public consultation.

Some pioneering authorities have set additional, stretching targets, and for example Sunderland City expects to switchon 100% of young people's services by March 2004. Northumberland County Council has set up manned communityaccess points.

Most importantly, the region has made some significant progress in its strategy for “Sustainable, improving eGovernment” post 2005. The region is taking an innovative and perhaps unique approach to its future strategy. By usingSmart Card technology, and avoiding large monolithic databases, the region is developing a decentralised, federatedapproach to managing and accessing data.

Regional Smart CardThe Regional Smart Card project is supported by a consortium of all the regions Local Authorities, the PassengerTransport Executive (Nexus), transport operators and One NorthEast.

The aim is to create a Smart Card platform, capable of supporting multiple brands, offering a range of applications including further education, health, social care, eGovernment, transport, tourism and business/commercial services.

To date there are 10 major pilot projects, in schools, leisure and transport, with over 30,000 Smart Cards issued. Theproject is now entering its second major phase, building the commitment and infrastructure for a region wide network,ultimately to achieve the capacity to support 2.7m citizens (sufficient to more than cover the region's population).

The fundamental principal will be 'user consent' and the key drivers are the challenges of establishing trust amongst thepublic, and yet enabling complex service delivery chains that will include both public and private sector providers.

8

SystemsThe Smart Card Trusted Services Infrastructure will achieve this by eliminating the risk of inappropriate access to records.Records will only be visible when required, and when the customer/citizen gives consent.

Benefits, in summary, will therefore be:

Flexibility, allowing service provision to change easily

Risk mitigation

Easier to innovate in a flexible environment

User centric, informed consent principles

Current thought leadership includes the examination of ways to maximise public and private investment in access technology and contact points. Seamless access to services via any point, in a bank or local authority kiosk is within reach.Future challenges will perhaps be more about public awareness and acceptance than technology per se.

Collaborative WorkingEnabling collaborative working is a fundamental strand within the Regional Economic Strategy:

"The North East has embarked on an ambitious programme of cluster development. This is underpinned by clear linksbetween clusters and R&D strengths in universities and industrial facilities."

"Clusters are concentrations of competing, collaborating or independent companies and institutions… they organise toachieve shared aims… are business led and backed by a responsive public sector."

The strategy for delivery of ICT support for collaboration and clustering recognises the need to reflect the different levelsof business maturity and propensity to collaborate.

Key themes:

The virtual clusters programme, where licenses for a cluster enabling portal product are being made available via the Regional Portal

A seminar series 'Collaborative Working' where regional businesses explore the opportunities and practicalities associated with collaborative working. To date specific sector seminars have been held for: the Construction Industry and Advanced Engineering

Support for a set of collaborative software tools designed to match the full spectrum of requirements such as: 'SmartTeam' (www.smartteam.com) for the Engineering sector; '4 projects' (www.4projects.com) for the Construction sector and 'Control Centre' (www.thecreativecake.com), a web based collaborative tool with functionality aimed at a broad range of users from SME to public sector organisations

Support for initiatives such as Knowledge Campus [see case studies], the B2B manufacturing hub, AMAP (the Institute for Automotive and Manufacturing Advanced Practice) and the Digital Factory project [see case studies]

9

eLearning4StrategyThe North East region is one of only a few that has developed a thorough, strategic programme to address eLearning.

Equally, we are fortunate that there are many existing and successful activities and projects that create a foundation for anambitious vision, including: The universities of Newcastle andNorthumbria, and the City of Sunderland College being acknowledged exemplars of virtual learning; the Northern Grid forLearning is pioneering 'personal portals' and making rapid progressin providing content and connectivity across the region.

The Vision

To be a national leader in the appropriate use of eLearning, by creating a climate of regional

collaboration and by sponsoring development projects which make original contributions

whilst meeting local needs.

The strategy has two key areas of focus:

Regional co-ordination via the appointment of an existing agency that will: Co-ordinate existing activity and information; facilitate clusters for mutual benefit; disseminate information; stimulate and promote leadershipin eLearning implementation

Sponsoring initiatives that are innovative, target the heart of the regional needs and assure local supply ofsystems and content. It is envisaged that a catalogue of valid programmes, both new and 'joined up' existingprogrammes, will be evolved at regional and sub regional level

Key outputs of the strategy will be:

Creating engaging eLearning experiences that will be blended into existing learning provision

More learners being attracted at all levels

Achievement of better qualifications

Leading to:

The protection of jobs through a work force with higher levels of learning and skills

A healthy regional market in eLearning systems and content, in itself leading to more employment opportunities

eLearning FoundationThe eLearning Foundation's aim is to reduce the effect of the 'digital divide' by working with schools, parents and otherstakeholders to ensure that all our children have access to learning resources when and where they need them.

Early in 2004 the Foundation in the North East approached Graham Wylie, a founder member of Sage plc, who offeredhis enthusiastic support.

10

eLearningAs a consequence the foundation is financially secure, has appointed a full time project director, and is planning a threeyear programme. The intervention is timely; the digital divide in the region is underscored by National Office of Statisticsanalysis, which contrasts 43% of local households owning a computer, with 58% in London and 32% of local households with Internet access, compared to 49% in London.

Clearly initiatives developed by the Northern Grid for Learning, such as the personal portal, link closely with eLearningFoundation activity, where the Foundation will provide the equipment to access the knowledge resources provided by theGrid.

Northern Grid for LearningThe Northern Grid started in 1999 as the pilot site for the UK. Its role is to work with local education authorities and theDfES to deliver broadband into schools. The Grid also works with teachers and learning providers to facilitate the development of content and encourage usage.

The Northern Grid is already ahead of its targets in terms of both bandwidth provided and number of schools connected.By April 2004, ten of our twelve local education Authorities will have all schools connected, two years ahead of schedule.

In the context of the Government's Agenda for Personalised Learning, the Northern Grid has developed an innovativestrategy. This new approach will enable every teacher and pupil to have their own personalised web portal, eliminatingthe need for disks, CD's etc.

Effectively this gives the individual a secure 'electronic cupboard’ or ‘storage area' where materials and learning resourcescan be gathered and safely kept. The 'store' can be opened from any computer with Internet access. Teacherscan also create or modify resources and make them available to colleagues, and they will be given access to emailaccounts and secure discussion groups with colleagues across the region.

This facility is being taken up by six regional local education authorities initially, and will be made available to all twelve.

11

The Broadband Fund5In 2002 the DTI launched a £30 million Broadband Fund. The NorthEast's share of this fund was £1.4 million. The results of expenditure from this fund so far are:

Support for the CORUS Taskforce

Support for a pilot scheme in Consett, through DurhamCounty Council, addressing urban deprivation via ICT

Support for the Awareness and Seminar campaign for the region's broadband deployment

Support for Virtual Clusters

Support for a Satellite Trial in rural areas

The Broadband Fund ends in 2004/05 but it has had a big impact. Ithas assisted the co-ordination of all aspects of the programmedescribed in this report. Without it, bringing together the different elements of this programme would have been impossible.

12

The Futureleading the way

6CODEWORKS - Harnessing the potential of technologyCODEWORKS is the Centre of Excellence established to bring substantial benefits to the digital industries of the North East. TheCentre will advance and commercially exploit the Region's digitaltechnology and media expertise.

It will do this by developing thought leadership around global bestpractice and market planning, linked to the Region's existing capabilities and aimed at commercial exploitation and maximumeconomic yield. CODEWORKS will unite and lead individuals, education, public services and business organisations, in the pursuitof common and mutually beneficial goals.

CODEWORKS has begun delivering against its key business objectives which include innovation support, corporate finance andcluster support.

Activities in InnovationA detailed regional university technology audit has been conductedjointly with Ovum and Newcastle University and has identified someinitial focus areas:

Digital technology for the elderly and disabled

Games development and animation

Web-based services

GRID Computing

In addition, CODEWORKS is working with the region's universities on a number of specific research projects:

CODEWORKS is currently working with Durham University to build a software developers kit for next generation 3D stereoscopic display devices

With Newcastle University, CODEWORKS is using 20 new Dell Xeon servers to build a North East Region GRIDcomputing testbed for the North East E-Science Research Centre; and

CODEWORKS has also supported a successful bid by Newcastle for an additional £2m in research funding for applications in chemical engineering

Activities in Corporate FinanceCODEWORKS provides a range of services to SMEs in the region seeking funding and has to date, directly provided adozen companies with specialist support.

Specifically, CODEWORKS is one of the primary channels to North Star for digital venture funding. The pilot Proof ofConcept Fund, now operational, has received 10 applications from regional companies sponsored by CODEWORKS.

As part of this, CODEWORKS is forging links with funding sources, both within the region and nationally.

Continued

13

Activities in Cluster Support

Creating a strong, vibrant network around the region's SMEs and research base is a central tenet of CODEWORKS' strategy.

CODEWORKS is delivering this through two major initiatives:

CONNECT - Formerly the Digital Media Network, Connect is the Trade Association for the digital industries of the North East. It began work in January 2004 and draws members from around the region. Connect supports the region's digital businesses with assistance in access to finance; business development and marketing; andnetworking, recruiting, student placements and skills enhancement. Connect has also taken companies to major international as well as local trade shows such as MILIA, COMDEX, CeBIT and NEON

NITRO - Bringing together the region's research and digital SME base is the key objective of this project. Aconsortium of 4 of the regional Universities, NITRO seeks to transfer university digital technology research into SMEs.

Working across the Region

CODEWORKS is working directly with Teesside University and ATOS KPMG to define the Digital City project in the TeesValley. It is also working with Business Link, NTI, NFM, Tyneside Cinema, County Durham Development Company, Tyne& Wear Development Company on incubation and infrastructure for new digital businesses in the identified growth zones.

Data Centres & the European Telecommunications Resilience and Recovery Association(ETR2A)

Context

As we become an increasingly digitised society, both public and private sectors generate massive volumes of data. Theirgrowing dependency on this data, and access to other digitally stored data, builds, and clearly so does their exposure torisk.

Couple this growing level of risk together with society's increasing exposure to virtual (virus attack, hacking etc.) and realterrorism, and the threat is obvious.

Equally however, opportunities also arise from this situation. The University of Northumbria's eBusiness Centre andDisaster and Development Centre, together with One NorthEast and other partners, have developed two complementaryinitiatives:

The European Telecommunications Resilience and Recovery Association (ETR2A) and the Data Centres project are bothdesigned to position the North East as 'The data storage, resilience and recovery centre for Europe.'

Strategy

ETR2A is an Association of individuals and organisations with an academic and commercial interest in (European)Telecommunications Resilience and Recovery.

Over recent years, there have been a number of European academic centres showing an interest in this emerging topic,but none were in a position to initiate the Association and conference, until 2003 when One NorthEast and its partners hosted the inaugural conference in Newcastle upon Tyne.

ETR2A now has many supporters, and the mix of over 200 delegates to the first conference from over 20 countries underscored its timeliness. The second conference will be held in Newcastle in June 2004. Members of the Associationinclude organisations as diverse as City Councils and NATO.

14

The Futureleading the way

The Data Centres project, together with the infrastructure project, IP Exchange [see Section 2], is designed to position theregion as a key player in the delivery of secure data hosting and storage.

The region already has two major data centres, with an aggregated capacity to enable the region to compete nationallyand internationally.

The main elements of the project are:

Firstly, to provide the infrastructure links with large-scale offshore cable, thus providing independent connectivity for the region for the first time

Secondly, to run a comprehensive international market awareness campaign, including conferences, exhibitions, fairs, speaking opportunities, networking, promotional materials, advertising and public relations

Benefits

The economic benefits of this project are closely linked with the IP Exchange:

Reversing the net inflow of data (and therefore outflow of cash) to organisations in the region

Enabling data centre companies in the region to compete for secure data storage business on an international scale

Positioning the region as a centre for innovation and thought

PartnersIn common with many initiatives and projects in the region, collaboration with partners has been critical to success.Partners involved in ETR2A and Data Centres are many, including:

University of NorthumbriaUniversity of TeessideUniversity of SunderlandCODEWORKS CONNECTRegional ICT Strategy BoardCity Councils of Sunderland and DurhamNorthumberland County CouncilRedcar District CouncilSociety of IT ManagersNorth East Committee of IT ManagersExisting data centres and many private sector businesses

Virtual Library/Knowledge ExchangeDuring 2003 One NorthEast was commissioned by the other eight Regional Development Agencies to develop a methodwhereby all RDA's could begin to pool information and examples of best practice, with the goal of enabling access to adynamic knowledge resource.

An holistic approach was developed which combines novel applications of search and retrieval technology, with peer-topeer communications systems, and critically, an approach that addresses organisational culture issues aroundknowledge sharing.

The project should be implemented during 2004. Benefits will include short cut routes to help and advice; the aggregationof demand for research and information, as well as enabling shared development and thinking. It is estimated that theKnowledge Exchange is likely to deliver at least seven figure savings (over £1m on the cost of research) and incalculable gains in adding value to strategy and project implementation.

15

The Futureleading the way

eJusticeCommencing March 2004, the eJustice project, led by One NorthEast, is a 4m Euro research and development programme, designed to deliver streamlined administration and delivery of justice throughout Europe.

The project tackles the central challenge of proving that the users of virtual systems are the people they claim to be.The approach is based on a combination of Smart Card technology together with authentication of individuals, usingbiometric algorithms, i.e. a citizen's electronic signature.

The system will also use a workflow representation of the legal process, presented alongside relevant legal rights of individuals, essentially a "pathway to justice".

Potential users of the system are:

Legal practitioners

European Crime prevention organisations

Researchers in the fields of justice, social and political sciences and IT

The citizens of European member states, accession and associated states

It is envisaged that two key areas of benefit will be delivered:

Security

The approach guarantees that the right information is communicated to the right people

There will be full traceability and follow up of all interactions with the data

The system will be user-centric (via Smart Card technology) avoiding central biometric databases and infringement of rights to privacy

Visibility

It will map the process of legal engagement, thus making the law more understandable and accessible

It facilitates follow up and tracking of the legal process

Ultimately it will be possible to introduce quality standards and control procedures amongst legal professionals

Federated Services & Trusted Service NetworksIn order to capitalise on the ‘secure’ aspects of the region’s telecommunications infrastructure, new ways of working willbe looked at.

Federated Services and Trusted Service Networks will be developed for Smart Cards, Tourism, Business Support andRural. This will include a new approach to Call Centres using distributed networks and ki working practices.

‘Towards an eRegion’ v 4.0The next version of the Regional ICT Strategy, ‘Towards an eRegion’, will be published in mid-2004.

16

The Futureleading the way

Case Studies7The case studies are presented in a standard format, showing:

The project or initiativeClient or project applicationA short synopsisFull text from project publicity or write-ups

The case studies are also arranged into a series of sub headings.

Contents

> Clusters & Collaborative WorkingNorthern Offshore Federation 18

Northern Defence Industries 20

Knowledge Campus 21

North East Productivity Alliance/AMAP 22

> Regional Portal: GROW InitiativeSweets for Treats 24

Shepherd Walks 25

Simply Flowers 26

> Regional Portal: n-e-opportunitiesn-e-opportunities 27

Insite Environment 28

Draeger 29

> Rural & Remote AreasWireless & Satellite Broadband Initiative 30

> Regional StrategyProcter & Gamble 31

17

Clusters & Collaborative WorkingProject/Initiative The Regional Portal - Virtual Cluster Strategy

Client Northern Offshore Federation [www.nof.co.uk]

SynopsisA key component of the regional eStrategy, delivered by n-e-life, is the enablement of industry and commercial clusters ina virtual environment. A basic cluster platform has been developed, and is tailored to the client's specific needs for eachapplication. Northern Offshore Federation needed systems to enable internal communication, collaborative working(including joint bids), access to market information, to facilitate eCommerce and to position NOF with a global profile.

During 2003, the site had 1.6 million hits, around 70,000 meaningful visits, including 5,000 from the USA and the majority of the rest from international locations. Nearly 5,000 copies of their in house magazine were downloaded, and onecompany had 2,800 copies of its product information downloaded. Not only is the project a commercial success, it has theadded benefit of delivering highly cost effective systems and software to members, and has accelerated the adoption ofthe use of ICT in this critical industry sector.

Abstract from recent publicityThe Northern Offshore Federation (NOF), servicing the North of England, offers companies exclusive access to buyersfrom the world's largest offshore oil and gas exploration and production companies.

NOF offers a wide range of business support activities to its members in order to enhance their efficiency and competitiveness in the UK and overseas markets. Currently 300 companies receive these services and associated benefits. A major strategic objective for the industry, is for the entire supply chain to implement a range of business strategies directed to achieve a 30% cost reduction throughout their business processes, in order to maintain competitiveness in a global market.

NOF has worked in partnership with, a leading local consultancy and software solutions company, since 1998 developingand employing innovative information and communication technology (ICT) related initiatives. Key components and benefits of the cluster project are outlined below.

Strategic ContextKey requirements were to impact positively upon business improvement objectives within the industry was to address thelack of understanding of ICT in general, as well as the specific business improvements and cost reduction benefits of utilising ICT efficiently and effectively. Hence, a major thrust was promoting the use of ICT technologies, relevant andappropriate to the sector, in order to improve the business, efficiency and competitiveness of both the management andoperation of the cluster and its members.

SolutionThe supplier developed a coherent framework of ICT based activities, the aim of which was to assist in reducing the coreoperating costs, and to improve the business processes of second and third tier SME's, working within offshore sector supply chains.

The cluster support environment facilitates rapid communication and business support for complex B2B processes andrelationships. Offshore companies can now undertake cost reduced and cost effective processes within their business andcommunication activities via an effective, user friendly, web browser, at the cost of a dial-up Internet account.

The B2B online service gives each Federation member access to a "corporate" presence and a globally accessible higher profile for the products and services they provide. It provides significant functionality and value added informationand knowledge relating to the industry. Hence, it allows for the cost base lowering and cost-saving potential of supply chainworking to be realised. This system provides more efficient and cost effective online services than using traditional alternatives.

18

PR/Marketing - Benefits

The Federation and its members can now present a "global" profile. All members now have personalised presence on theportal and NOF has the capability for the delivery of a fully integrated service.

Product/service cataloguesDirectory of company profiles and contact details accessible over the InternetElectronic magazines and information services are available onlineCo-operative/collaborative working is facilitated onlineStructured document libraries and search facilities are available to membersChanneling of information and special interest groups are catered forProvision of virtual/working space for companiesFacility for the formation of virtual/working teams across companiesInteractive discussion newsgroupsOnline tendering facilitiesExhibition/Conference space

ICT Awareness and Promotion - BenefitsThis element of strategy ensures Federation members are up to date, understand, have access to and obtain the benefitsprovided by eCommerce and eBusiness.

Portal and Resource Centre - BenefitsThe offshore sector cluster has a dependable, accurate, information and business support service. Smaller companies, viathe portal, are now able to take advantage of similar systems to larger companies and accrue similar benefits.

NOF Statement of Benefit"Electronic commerce is a challenge that has been facing the North of England offshore sector for some time. In strategic partnership with Scientia Solutions we are maintaining our impetus in our planning and solutions to this challenge, as wellas realising and continually improving the benefits"

19

Clusters & Collaborative Working

Clusters & Collaborative WorkingProject/Initiative The Regional Portal - Virtual Cluster Strategy

Client Northern Defence Industries [www.ndi.org.uk]

SynopsisNorthern Defence Industries is a highly successful non-profit making company that provides business opportunities, business intelligence and supply chain services to its customer communities. Within the last two or three years, it hasplayed a major role in leveraging £millions worth of business into the region.

With 150 members; and many other collaborations, Northern Defence Industries needed a platform which would facilitatethe day to day running of the organisation, internal communication, knowledge storage and access, collaboration (forjoint bids) and global market positioning.

The cluster platform, delivered via n-e-life has been adapted to more than meet Northern Defence Industries' needs.

Since going live in April 2003, the site has had around 12,000 meaningful visitors (1 million hits) with over half from overseas. This is an impressive international reach, which could not have been achieved by most individual membersworking alone.

Future DevelopmentsActivity now centres on continuing to add content to the site, and to explore its functionality, particularly building interactive'communities of interest'.

Over the next few months, plans are in place to:

Accelerate knowledge sharing in a safe environment

Host mini/vertical portals for specialist groups

Use the portal as the single destination for all Northern Defence Industries business and communication activity

To facilitate a point of 'constructive collaboration' between global prime contractors and Northern Defence Industries members

It is worth noting that Northern Defence Industries have already been an outstanding success in the region, being closelyinvolved in and in many cases facilitating bids for major defence contracts currently including M.B.T.L.A.W, Javelin, C.V.F,Mk45 Naval Gun, F.C.L.V, F.R.E.S, and M.A.R.S.

Northern Defence Industries has built partnering relationships with Saab Bofors, Lockheed Martin, BAE Systems, THALES,AlvisVickers, Boeing, United Defence and Maersk.

Strong relationships exist with key universities inside and outside the region, and with other common interest organisationssuch as the Society of British Aerospace Companies, defence manufacturers and so on.

20

Collaborative WorkingClient Knowledge Campus

Synopsis

Knowledge Campus is the physical nucleus of a virtual global product development community. Based on the Quayside ofNewcastle Gateshead, its purpose is to enable successful collaboration on new product development and introduction.

This unique and innovative concept is in itself an example of collaborative working between the idea originators: ExpressGroup (an engineering, product and process performance business based in Gateshead), Gateshead Council and OneNorthEast.

Case StudyThe North East has "never been easier to get to, or harder to leave…" is the message from the first two exciting new KnowledgeCampus websites launched this month.

As the date grows nearer for starting construction on Knowledge Campus at its Gateshead Quays site, the two newly launchedwebsites will support the physical development and promote the organisation and the North East to the international businesscommunity.

Knowledge Campus is building an international business network of companies that develop, or are considering developing newproducts in association with one or more partners - a process called collaborative product development. It has launched the firsttwo of a series of interrelated websites. www.knowledge-campus.com has been designed to provide details about thedevelopment as a whole, and www.knowledge-central.com is the site for Knowledge central, the iconic hub building at KnowledgeCampus.

Designed by Sunderland based Leighton Media, the sites were painstakingly thought through to provide as much relevantinformation to users as possible. As they are aimed at regional, national and international markets, they have been broken downinto specific areas of interests and focus on the quality of life in the North East and how easy it is to do business here.

Executive director for Knowledge Campus, Jane Hogan, said: "Knowledge Campus aspires to become a prestigiousinternational centre, providing physical workspaces, technology based products, practices and methodologies, and onlineservices to the global product development community.

"The main Knowledge Campus site will act as an introduction for a variety of companies and organisations, both to therelatively new practise of collaborative product development and also to the region. When we designed it, we wanted to reflectthe high-end technology that Knowledge Campus is associated with, but also keep the language user friendly. We aredelighted with the end result - it conveys not only what Knowledge Campus can do for the region but also what the region cando for both businesses and individuals alike."

A strong supporter of Knowledge Campus, One NorthEast believes the sites will provide a valuable creative and innovative linkbetween the region and the global business community.

Margaret Fay, chairman of One NorthEast said: "This is great news for the North East. This next step for Knowledge Campuscomplements our strategy for building up technology, innovation and ICT in the region. It provides a unique and comprehensiveservice, not only for the New Product Development sector but also as a means for global companies to link up with regional businesses. It has really put the North East on the map."

21

Collaborative WorkingClient NEPA/AMAP and The Digital Factory

SynopsisNEPA, the North East Productivity Alliance Group is an advisory body designed to take forward the region's manufacturing strategy with a focus on productivity and competitiveness. AMAP (the Institute for Automotive andManufacturing Advanced Practice) at Sunderland University, is a key NEPA partner and developed the Digital FactoryInitiative. Digital Factory is aimed at enabling holistic eBusiness strategies amongst regional manufacturing firms andoffers:

Training and skills development

Help in understanding and adopting digital tools

Help with justifying and implementing solutions

Case StudyOne NorthEast and NEPA deliver practical help for the Region's manufacturers through the £9 million "Accelerate NorthEast" programme. The North East Productivity Alliance (NEPA) is an Advisory Group comprising senior industrialists fromsome of the Region's leading companies who, together with One NorthEast, have developed the Accelerate programme to take forward the North East Region's manufacturing strategy, in particular through improving productivityand competitiveness.

The programme delivers a package of practicaland pragmatic initiatives, developed by industrialists for industrialists and has providedpractical help worth over £9 million to companiesin the Region.

It delivers workforce training, dissemination of bestpractice and productivity improvement, trainingand help in adopting digital technologies and higher degree qualifications gained in the workplace. One of these programmes is the"Digital Factory" project.

This provides:

Training and skills development relating toDigital Technologies

Help with understanding and adopting themost appropriate digital tools

Practical help with justifying and implementing solutions.

The range of applications covered, includes product design, engineering analysis, process planning, cost estimation,factory layout, ergonomics, robotics, machining, inspection, factory simulation, engineering and manufacturing data andprocess management, supply chain collaboration and their link to a holistic e-business strategy.

Project AimsTo assist the region's manufacturing companies to increase productivity and competitiveness by understanding and adopting the most appropriate engineering software solutions and by increasing skill level in the use and application of digital tools across an organisation.

Continued

22

NEPA/Accelate Projects

DescriptionIn raising awareness and understanding of the benefits of digital technology in the manufacturing sector, the "Digital Factory"project enables companies to take advantage of the most appropriate digital technology.

In providing various levels of training in software products and their application, the "Digital Factory" project helps to raise theregion's skill base in relation to engineering users and throughout organisations as a whole.

The range of applications covered, includes product design, analysis, process planning, cost estimation, factory layout,ergonomics, robotics, machining, inspection, factory simulation, engineering and manufacturing data and process management,supply chain collaboration and their link to a holistic e-business strategy.

The project links closely to research carried out in Sunderland and other Universities and the expertise in the region's exemplarcompanies to develop existing programs and to disseminate best practice. The program also works closely with softwaredevelopers, industry organizations and in partnership with other regions, Universities and complementary programs.

Impact

The training programs will deliver over 1,350 training opportunities over the next few years and will support the establishment ofa regional centre of excellence in digital production. The project will also complement other regional programs and contribute tothe activities of the region's Universities.

Collaborative Working

23

Regional Portal: GROW Initiative

Project/Initiative The Regional Portal, GROW Initiative (Rural) & Satellite Broadband

Client Sweets for Treats [www.sweetsfortreats.co.uk]

SynopsisA local convenience store in Barnard Castle realised it was frequently packaging sweets, especially old style sweets, tosend to friends and family in the UK and overseas. The owner, Kim Gulliver, felt that a website would make sense, andattending a market towns initiative seminar, she confirmed that it was time to become e-enabled. More training, licensesand help from the initiative have created a thriving e-commerce business, with customers across the world.Kim is now using the Satellite Broadband Initiative to enable her to open an Internet café.

Case StudyThere has been sweet success for one Barnard Castle based company since launching their website, www.sweetsfortreats.co.uk.

'The Shop', a family run general convenience store, products, specialising in confectionary, decided it was time to promote their products to a wider audience and the Internet provided the perfect opportunity to do just this.

"I became aware of the popularity of our range of sweets - we have an impressive stock of both old and new sweets.People would come into the shop to buy them for themselves, for friends and relatives abroad. We would package themup and send them overseas, which gave me the idea of creating a website," said Kim Gulliver, the Owner of 'The Shop'.

Kim decided it was time to become e-enabled and attended an Internet course organised by One NorthEast, as part ofthe GROW Initiative, which armed her with the basic tools necessary to create an online presence.

Following the training, she decided to build a website, whereby customers could order there favourite treats online. Sincethe launch a few months ago, www.sweetsfortreats.co.uk have received orders from all over the world.

"I was not sure what to expect once we went live, but when wereceived our first order I was amazed. It was a UK order froma lady who asked me to send some Cherry Lips, Sherbet Lipsand Floral Gums to her mum as a Mother's Day gift," recalledKim.

"The first order from overseas was even more exciting - it wasfrom Israel. This time it was for a batch of Dolly Mixtures for achild's birthday party," she continued.

Since then, Kim has caught the IT bug. "One NorthEast isassisting with the installation of a satellite broadband systemwhich will allow me to open an Internet Café. This will allow visitors to check out the tourist attractions in the area through logging onto our local website; www.barnard-castle.com, or locate other local information through www.n-e-life.com."

24

Kim Gulliver of Sweets for Treats

Project/Initiative The Regional Portal - GROW Initiative (Rural)

Client Shepherd Walks [www.shepherdwalks.co.uk]

SynopsisFull time Northumberland shepherd, Jon Monks, had the idea of turning his interest in hill walking into a part time, webbased business, marketing walking and driving routes, maps and accessories.

The start of his business coincided with the start of the GROW initiative, which helped him crack his biggest challenge - togenerate traffic to his site.

His business is now turning over £2,500 per month, and attracts around 300 visits per day. Jon plans to use the next levelof the GROW programme to help him build his database and improve customer relationship management.

Case StudyJon Monks is a full time hill shepherd on a farm just south of theSimonside Hills in Northumberland. He is also a keen walker, and when he moved to Northumberland over a decade ago, he was surprised at the lack of information about local walks in the area.

He said, "As a hobby I started writing down my walks and researching them both on the Internet and at local libraries. Mywife and I decided that this might be the opportunity we were looking for to supplement our farming income with revenue from another source. But it was a huge risk. We had nothing in the bank."

Jon borrowed £1000 from a friend to set up his first website. Nowthe site has over 300 visitors per day, the business employs a part-time person and it sells around £2,500 worth of products a month including guided walking tours, ordinance survey maps, walking sticks, maps of the Cheviot Hills and car routes.

However, as Jon points out, the problem wasn't setting up thesites, the real challenge was working out how to get people to visit them. By chance, his enthusiasm to set up an e-commerce business coincided with new online initiatives launched by theelectronic community for the North East, www.n-e-life.com, with support from the European Regional Development Fund. The new scheme, called Grow Your Business, was designed to help North East businesses access the full potential of e-commerce. Jon was offered an opportunity to set up a micro site via themarket town portals in Morpeth and Alnwick, along with training, software and licenses to help.

He said, "I decided to go for it on the basis that the more sites I haddriving traffic towards my main site, the more likely I was toincrease the visitor numbers. It only took me around half an hourto set up each Micro site, yet it provided me with the perfect opportunity to grow traffic to my site without having to fork out apenny. It was a win-win situation. Now a good percentage of visitors arrive at my main site directly from these satellite sites."

Already Jon is planning further expansion. He said, "We are goingto develop our guided walking tours by launching a weekend ofmap reading and orienteering. On our three-year anniversary inOctober this year, we will be eligible for up to 80% funding through

the Grow initiative. I would like to use the money to make betteruse of our database. We need one that works on people's postcodes, so that we can monitor customer communications andactivity more effectively, improving our customer relationship management."

The Grow Your Business Initiative offers a range of support packages and funding for all North East based businesses. Ruralbusinesses based in or around market towns can access freeentry-level support, training, software and licences to enable themto set up a basic web presence or a simple virtual store. It alsooffers a reduced rate broadband service to rural areas. For bothurban and rural businesses wishing to take advantage of a moresophisticated solution, 60 to 80 per cent funded developmentpackages are available to unlock the opportunities of e-commerce.

Jon concludes, "If someone had told me when I set out that I wouldbe making this amount of money from a hobby, I would havethought they were crazy! Thanks to the huge opportunities thatexist through the Internet and the assistance I have received fromwww.n-e-life.com, I can make money doing what I enjoy most."

25

Jon Monks of Shepherd Walks

Regional Portal: GROW Initiative

Project/Initiative The Regional Portal: GROW Initiative (Rural)

Client Simply Flowers [www.simply-flowers.co.uk]

Synopsis

Simply Flowers’ website was producing a lower than expected level of enquiries. Since taking up the GROW initiativeand creating a microsite via Alnwick Market Town Portal, enquirers have grown significantly.

Over 19 significant orders, typically from the USA, have been won, usually for weddings and other family events.

Case StudySimply Flowers, a small florist business with shops in Alnwick andAmble, Northumberland, is attracting world-wide orders, thanks tothe support it has received from the electronic community for theNorth East, www.n-e-life.com, and the Alnwick town portal.

Brides from as far flung as the USA, Thailand and Australia whoare getting married at nearby venues, are using the Internet toorder wedding arrangements from Simply Flowers.

Christine Jackson, a partner at Simply Flowers said, "We alwaysunderstood that the Internet would be an important part of oursales strategy. So one of the first things we did when we set upthe Alnwick shop was to create our own web site at www.simply-flowers.co.uk. But we didn't get many enquiries."

At around the same time, a new online initiative was launched bythe electronic community for the North East, www.n-e-life.com,with support from the European Regional Development Fund andOne NorthEast. The new scheme, called Grow Your Business,was designed to help North East businesses access the full potential of e-commerce. Christine was offered an opportunity toset up a micro website via the market town portal in Alnwick, whichexists for local businesses, visitors and residents who require information about the Alnwick area.

Christine adds, "We decided this might provide a good signpostingservice to our main site and would give us the local image we werekeen to portray to visitors to the area. The process of setting upthe website on the portal was really simple and didn't take long.Immediately we began picking up additional international orders,particularly for weddings."

"For instance, I had a customer getting married at a local venuewho was organising her wedding from the States. We received theorder via the Internet and were able to mock up samples for bouquets, take photos of them and send them over to her by emailfor approval. She landed in the country only two days before thewedding!"

Simply Flowers has received 19 international orders over the webso far, mostly from America, some of which have been for largeevents such as weddings, anniversaries and birthdays. They anticipate this number to grow steadily.

Christine Jackson said, "Trends in ordering flowers from abroadare changing. People want to deal with local florists who know thearea. They don't want to phone London or Newcastle if they aresending flowers to someone in Alnwick."

Christine anticipates a successful year ahead. "We are alreadygetting booked up for weddings in 2004 and bookings are evenstarting to appear in the diary for 2005. We anticipate more ordersfrom the web, particularly as we plan to update the website on aregular basis and promote seasonal services such as Mother'sDay.

The Grow Your Business Initiative offers a range of support packages and funding for all North East based businesses. Theycan access free entry-level support, training and software toenable them to set up a basic web presence or a simple virtualstore. It also offers a reduced rate broadband service to ruralareas. For both urban and rural businesses wishing to take advantage of a more sophisticated solution, 60 to 80 per cent funded development packages are available to unlock the opportunities of e-commerce.

Regional Portal: GROW Initiative

Christine Jackson of Simply Flowers

26

The Tenders monitoring service is now available online via www.n-e-life.com, the definitive electronic community for the NorthEast. The official launch of the www.n-e-opportunities.com in midJuly has been designed to encourage growth and development,through allowing companies to identify business opportunities.

The Region's companies are looking at alternative ways of securing business and maintaining growth due to the challengesfacing them, including mass globalisation and declining UK markets. It is becoming important to take advantage of cost effective opportunities to maximise competitiveness; the TenderElectronic Daily offers an opportunity to do this.

Representing €1000 billion of public procurement opportunities peryear- totalling 14% of the GDP, Tenders Electronic Daily (TED)draws its information from the Official Journal of the EuropeanCommunities (OJEC). Following EU legislation, all public contracts over a specified amount must be published and appearin OJEC, allowing all companies within the EU the opportunity totender for the business.

The TED service allows companies to source opportunitiesrelevant to their business. This is achieved through the provisionof a matching service to the OJEC tender opportunities. n-e-life.com works with companies to categorise their portfolio ofproducts and/or services to a set of universally recognised EUcodes (CPV codes). This allows companies to receive businessopportunities, on a daily basis, which are specific to their skills andexpertise.

It is this proactive approach, which is allowing Regional companiesto generate substantial revenue, both for themselves and theeconomy.

woodholmes.ksa has used the TED system for a number of yearsnow, and has acquired substantial contracts through their subscription. Commenting on the service, Lyndsey Bell, MarketingExecutive, said: "It is a valuable service for us, saving us both timeand resources. It acts as a quick and effective way of generatingnew business."

She continued; "Furthermore, the TED service provided by n-e-life.com keeps us in touch, by the minute, with European public procurement news and information. It is invaluable for us, tokeep ahead of the game."

Durham based Building Services Engineering Consultants, TGAConsulting Engineers, have also experienced vast benefits fromsubscribing to the service. "Tenders Electronic Daily has enabledus to be placed on Framework Agreements for The BritishMuseum, and both Newcastle and Durham Universities."

"We have been appointed on a number of commissions withinthese agreements including the provision of an extensive site-widenew fire alarm system at The British Museum and major buildingrefurbishment's and laboratory projects for the University ofNewcastle" said Graeme Carr, Partner of TGA.

Architectural company, FaulknerBrowns, has also been subscribing to Tenders Electronic Daily for the provision of OJECnotices for several years. During this time, they have been successful in winning accounts ranging from an £8 million leisurecentre in Aylesbury to the £85 million National Athletic Centre.

Commenting on the service, Jackie Gardner of FaulknerBrowns,said; "We have used the TED service to great satisfaction over anumber of years. Our most recent success is a commission fromthe London Borough of Hillingdon for the design of a £15 millionleisure centre incorporating a new 50m pool and the restoration ofthe existing outdoor lido at Uxbridge.''

However, TEDs are not only used by companies wishing to sourceimmediate business opportunities. A current client uses the system for market research purposes. "Tenders Electronic Dailyallows us the opportunity to monitor account wins and target companies accordingly. This is part of our long term strategy fordevelopment and growth," said the company's spokesman.

TED does not only provide companies with timely and relevant tender opportunities, it also offers additional features that havebeen designed to ease the tender process for all subscribing companies. 'Tender Support' will allow companies who are not aufait with the process to access online help and support. This canrange from understanding the terminology used in the tenderingprocess, to accessing information on European Legislation.Furthermore, a machine translator can speedily translate non-English documents, allowing companies a wider scope forinternational trade.

Commenting on the TED Service, Chris Fleetwood, Chairman of n-e-life, said; "We are delighted by the number of new businessopportunities which have been sourced via n-e-life.com. It isinvaluable for all companies who are looking to stay competitive ina global market place."

A spokesman for the Regional Development Agency, OneNorthEast, commented; "The Region requires companies to takea proactive approach to business development. Sourcing publicprocurement opportunities via the TEDs is one way in which theyare ensuring they stay competitive and maximise growth anddevelopment opportunities, which is not only good news for them,but also for the Region as a whole."

Project/Initiative The Regional Portal, n-e-opportunities [www.n-e-opportunities.com]

SynopsisBelow is a comprehensive overview of the n-e-opportunities service delivered via The Regional Portal. It is estimated over£500million of revenue has been created within the North East, in the last year, as a direct result of EU businessopportunities sourced through Tenders Electronic Daily.

Case Study

Regional Portal: n-e-opportunities

27

Insite Environments is a practice of landscape and urbandesign consultants, particularly well known for their innovative application of virtual reality modelling to help clients visualise development proposals and attain planning consent. The company was established in 1992 and turns over approaching£1m, with clients initially in the North East, but now also in the Middle and Far East. More locally, it is known for designing and developing everything on Newcastle's Quaysidethat isn't a building, from procuring sculptures to doing the hardlandscaping and planting. The company employs 25 people.

One of the challenges for small private practices like Insite isgetting details of all the different public sector contracts, including those issued by government quangos, sub regionalbodies, and councils, without having to trawl through endlesspublic sector and trade publications.

Peter McGuckin, director of Insite said, "If I had to subscribe tothe key publications where most of these tenders are published, I would spend all weekend reading. n-e-opportunties.com does it all for me and delivers it direct tomy desktop, saving me a lot of time. For me this marks the crucial difference between being presented with market intelligence and drowning in market information.

"IT plays a central role in every aspect of our work, frombusiness management and imaginative presentationtechniques to helping us identify and win new business.Crucial to our success has been the online tendering servicewww.n-e-opportunities.com. It provides us with 75 per cent ofour new business leads directly to my desktop, which are currently worth around £200,000 a year. I get just the type ofmarket intelligence I need to make a quick, informed decisionabout whether a contract is worth going for."

www.n-e-opportunities.com is an online tendering service provided by the electronic community for the North East,www.n-e-life.com. It offers 900 business opportunities daily,from the UK, Europe and beyond, and can be tailored to deliver to the desktop only those that are most relevant to an organisation.

There are two levels of membership, Premium and Platinum,with prices starting from £365 per annum. Insite subscribes tothe Platinum level of service. Peter McGuckin adds, "We getaround 10 or 12 opportunities a week that are of direct interest.

In other words, projects that we will actively consider biddingfor. We also choose to follow up a similar number that are ofindirect interest. In other words, they may not fit our corebusiness but they do provide us with networking opportunities with complimentary organisations - architects andengineers for example - who we often find return the favour.

"Some could argue that we would hear of these tenders anyway and that might be true. But the real benefit of the service to us is its timeliness. As soon as the tender is in thepublic domain we have it on our desktop, and the informationis presented intelligently. Having the Platinum service allows usto define key words so that the system is able to filter, from amyriad of opportunities, only those that are most relevant to ourmarket. The system has been useful too for our research, giving me a feel for where Government is spending its moneyand highlighting market trends."

Recent n-e-opportunties.com wins for Insite Environments included tender awards from National Grid Transco for mitigating the impact of a new power line, and a frameworkagreement for regeneration work for the East Riding Councilthat will be run from its new Yorkshire office.

Project/Initiative The Regional Portal: n-e-opportunities [www.n-e-opportunities.com]

Client Insite Environment [www.insite-e.com]

SynopsisInsite Environment, a growing and successful firm of landscape and urban design consultants, attribute 75% of their newbusiness to n-e-opportunities. Business won is around £200k per year, and the managing director also finds the difference between "market intelligence" versus a deluge of 'information' a significant time saving benefit.

Case Study

Peter McGuckin of Insite Environments

Regional Portal: n-e-opportunities

28

Project/Initiative The Regional Portal: n-e-opportunities [www.n-e-opportunities.com]

Client Draeger UK [www.draeger.com]

SynopsisBased in Blyth, Draeger Safety UK is part of a multinational group manufacturing and marketing a range of safety equipment such as breathing masks.

Their marketing manager cites n-e-opportunities as a fast, flexible service that has helped his company win 16 tenders inthe past year alone. Aside from time saving benefits, Draeger also value the ability to access historical data, contributing to company knowledge in terms of trends and performance tracking.

Case StudyDraeger Safety UK Limited, the Blyth based UK arm of the German owned multi-national, is winning countless public sector contracts following its decision to sign up to www.n-e-opportunities.com, an online tendering service provided by theelectronic community for the North East www.n-e-life.com.

Richard Beckwith, Marketing Manager at Draeger's Blyth office explains, "I receive around 10 opportunities a week directto my email inbox. Some are of direct interest and others have been requested on behalf of our international operations.When we tender directly ourselves, we win the vast majority of the business. In fact, we have won at least 16 public sector tenders over the past year alone, probably more, all identified by using n-e-opportunities.com."

A recent large tender win, which was identified using the service, was from the Northern Ireland Fire Brigade for abreathing apparatus entry control system. Winning this latest contract has helped the company to maintain its position asmarket leading supplier of compressed air breathing apparatus to fire brigades across the UK.

Beckwith said, "We subscribe to n-e-opportunities.com and other tendering services. The n-e-opportunties.com service is the one I turn to first. It gives mea retrospective look at tenders, allowing me to run historical searches. This helps me to identify trends and market capacity, based on what tenders are issued over a specified time period. It also helps me to identify new markets for our products, which is really important for new business development."

Previously Beckwith used to trawl through the OJEC publication manually. Hesaid, "The n-e-opportunities online tendering system offers us a more automated approach, including a refined search facility with delivery to my desktop, savingme a huge amount of time."

www.n-e-opportunities.com offers 900 business opportunities daily, from the UK,Europe and beyond, and can be tailored to deliver to the desktop only those that are most relevant to an organisation.

There are two levels of membership, Premium and Platinum, with prices starting from £365 per annum.

Beckwith continues, "The system allows us to define key words so that it can filter; from a mass of opportunities, only thosethat are most relevant to us. It also speeds up the process enormously. As soon as the tender is in the public domain, wehave it on our desktop."

29

Regional Portal: n-e-opportunities

Project/Initiative Wireless & Satellite Broadband Initiative

Client Various Rural Applications

SynopsisThe Battlesteads Hotel (Northumberland) is the site for a satellite dish and 2.4mHz wireless link to 3 other village businesses.The hotel also has an Internet kiosk for visitor use. The four users, a doctor, IT specialist and post office have all benefitedfrom the additional bandwidth, and shared connectivity cost.

A hard-wired system, linking five businesses - a design agency, PR firm, property leasing, gardening and an import/exportcompany - has been installed at Stannington, Northumberland. The design firm AD78 now uses e-commerce to managedesign approval and transmission to print.

Hoseworld, in Berwick upon Tweed, import and distribute products otherwise unavailable in the UK. With distribution located inFelixstowe, a sales office in Newcastle upon Tyne and sales/stocks across the country, effective communication is critical. Thecompany now benefits from a 1024mbps satellite, and is processing sales and orders faster, saving time and increasing stockturn.

Case StudiesBattlesteads Northumberland [www.battlesteads-hotel.co.uk]

A 512Mbps Hughes Broadband satellite link has been installed intothe Battlesteads Hotel, with a line of sight 2.4Mhz wireless link tothree other businesses in the village.

The Hotel utilises broadband to access their own web site andaccept on line booking for tourists. The majority of all bookings areundertaken online.

Additionally, a kiosk has been installed to allow hotel residents toaccess the Internet for email correspondence and moreimportantly the transmission of photographs to their friends andrelatives at home.

The other three businesses are a doctor, an IT specialist and thelocal post office all of whom undertake information access ande-commerce which would be almost impossible without access tothe bandwidth provided by the satellite link.

By linking four businesses the net monthly connectivity cost of£105 is shared by the four users bringing the individual cost intoline with the broadband costs offered by either cable or BT.

Innovation HouseWest Auckland, County Durham

This new prestigious industrial project by Wear ValleyDistrict Council needed broadband to attract businessesinto the 18 units now available.

This has been completed by the installation of a 2MBlease line, with a wireless link to two other units in anotherbuilding on the industrial estate.

This installation has the capability to be upgraded to evenbigger bandwidth as and when there is take up throughoutthe whole industrial estate.

AD 78 Stannington Northumberland[www.ad78.co.uk]

A 512 Mbps Hughes satellite link has been installed into thisDesign Bureau, whose core business is advertising, website andgraphic design.

Without access to broadband the transfer and approval of designcopy would be too slow and cumbersome.

With broadband installed draft material can be inspected andapproved by customers (nearly all of whom already have accessto broadband) and returned for amendment and subsequent finalapproval.

Additionally the satellite link has been hardwired to 4 other businesses within the complex. A Public Relations company,International Import/Export Business, Property Leasing companyand a Gardening Business.

Hoseworld[www.hoseworld.com]

A 1024mbps Aramiska satellite link has been installed tothis import company. This company imports rubber hosesthat are no longer manufactured in this country.

Broadband is vital for their business as they have a salesoffice in Newcastle and their distribution depot is inFelixstowe.

e-commerce is at the very heart of their business with anin house need to access their sales records and stockholdings at diverse locations.

The installation of a broadband link is cost effective in timeand money as they are now able to access and issuestock to sales orders quicker, reducing stock turn roundtime.

Rural & Remote Areas

30

Rural & Remote AreasOther applications of satellite and broadband technology include:

Eclipse TranslationBusiness Translation Services - Satellite system fitted so the company could continue to function at their site in the LionheartEnterprise Park, near Alnwick. If this system had not been fitted then it was likely the company would have to move from the area.Their local exchange has now been enabled and the satellite system re-allocated.

Clark Scott HardenProperty Consultants and Chartered Surveyors - Required broadband access to function more efficiently. Local exchange nowenabled, thus system has been removed and re-allocated.Hartnell Marketing, Blagdon EstateBook and Video business - satellite system installed for the company to advertise and trade online.Cleveland Circuits, Skelton Industrial EstateManufacturer of CCTV cameras - Required broadband to communicate with head office reconciling accounts in real time.

White Brothers Hadston Industrial EstateCommercial kitchen manufacturers - Broadband required for communication between head office and manufacturing site, usedto pass equipment drawings. Broadband is also accessed at a second site on this estate by wireless (schedule 802.11b) fromthe host satellite system

Whitworth Hall Hotel, Nr SpennymoorSatellite system installed for use by hotel guests and back office administration. Owners are planning to network broadband access to the hotel bedrooms.Once Brewed Information Centre, Northumberland National ParksSatellite to provide information for park visitors. This system also uses wireless (schedule 802.11b) to provide broadband accessto the adjacent youth hostel, two B&Bs and the pub at Twice Brewed. Broadband access at the pub has been very successfulfor visitors to send tourist photographs by email. Following this success a further 12 custom made kiosks with their own dedicated satellite system have been made available to Locals on Line (an organisation funded by the Countryside Agency) forpubs in the North East.

Lee Moor Business Park, Nr AlnwickConverted barns for small businesses, the owner is now therefore, able to offer broadband to the tenants for e-commerce.On Net Communications, WolsinghamThis is a newly established call and training centre, broadband is accessed via satellite. This business was set up to take workto rural areas following the closing of the steel works. The satellite system has only just been installed, with a further wirelesssystem yet to be installed so that another 2 buildings on the site can access broadband.

Lynmouth Resource CentreA distance learning facility, satellite broadband is essential for the running of the courses.Business Centre, South Church Enterprise Park West AucklandIt has been agreed to fund a further lease line in this building, with attendant wireless equipment in order to provide broadbandaccess to St Helens. This work is being undertaken by Data Design. Currently with Weardale legal department to resolve tenancy and ownership arrangements.

Computer Training DevelopmentSatellite system installed to provide a monitoring facility for all NE satellite systems and provide first level back up to endusers.

JBA Designs & Exhibitions, MorpethCable lease line 50% funded in order to provide customers with design data and update orders.

Cybermoor Ltd, AlstonCommunity project which has wireless broadband access to businesses in this remote area. A satellite system for businesses was provided as back up should wireless access be interrupted.

Shilbottle Skills Centre, Shilbottle Nr AlnwickA distance learning facility, satellite broadband is essential for the running of the courses.

Shadow Dreams, Witton GilbertSatellite broadband to advertise cottage lets and a paediatrician who undertakes video training.

31

Project/Initiative Regional Strategy

Client Procter & Gamble

SynopsisProcter and Gamble are probably the largest, multinational company represented in the North East. They have played acritical role in the region's economy for over 50 years.

In recent years, the company has consolidated its relationship with the North East by locating one of only three GlobalBusiness Service Centres in Cobalt Business Park, employing over 1,000 people.

Procter and Gamble's decision was based on objective analysis, and the fact that ''Global Services' include IT servicesis testament to the regions capability in terms of people and infrastructure.

Cobalt ParkCobalt Park was originally selected in 1999 as the site for one of P&G's three Global Business Services Centres worldwide because it met the company's accommodation needs, it was located in an easily accessible area, it was attractive financially, it could attract and retain the right calibre people with the necessary skill sets and it offered the necessary flexibility for the company's future plans.

The Global Business Services centre supplies P&G with a range of business support services, including Accounting andFinance Reporting (e.g. General Accounting, Banking, etc.), IT, Employee Services (e.g. payroll, building facilities management, employee administration etc.) and Procurement (Buying and Services, Travel Services, etc.). Around 900people work in these functions at Cobalt Park.

In addition, around 200 P&G people at Cobalt Park work for the company's UK and Ireland business. Functions includeMarketing Programmes, Media Buying, Customer Services, External Relations and Consumer Relations.

Over the past 18 months, P&G has entered into a series of outsourcing arrangements for some of the GBS functions atCobalt Park. Hewlett Packard now owns the company's IT support and the P&G people previously employed on this workare now HP employees based at Cobalt.

Similarly, for Workplace Services, Jones Lang LaSalle are now the providers, with the P&G people involved now workingfor JLL. A similar arrangement for Employee Services has been reached with IBM and work is proceeding on the transfer of these functions. The people involved become IBM employees and remain at Cobalt Park.

Employment at Cobalt Park has increased significantly versus original projections, with a total of around 1100 on site intwo buildings versus original plans for 700 in one building.

Regional Strategy

32