LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW (papers relied on to write the report but which are not published and do not contain exempt information)

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1 9 COMMITTEE: EXECUTIVE REF NO: E/14/43 DATE: 7 OCTOBER 2014 SUBJECT: CUSTOMER ACCESS STRATEGY : CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM (CRM) REPLACEMENT PORTFOLIO HOLDER: COUNCILLOR NEIL MACDONALD HEAD OF SERVICE: HELEN PLUCK Short description of report content and the decision requested: This report sets out the outcomes of a review of the Council s current Customer Relationship Management System and the procurement process for a new system. It seeks authorisation to contract with supplier CRM1. It also sets out the indicative next steps to achieve the Customer Access Vision in line with the Customer Access Strategy. Ward(s) affected:n/a The following appendices are to be considered in Part 2 of the Agenda as it is likely that if members of the public were present during that item there would be disclosure of exempt information. List of Exempt Appendices included in this report: a) Appendix 1 Evaluation report, company information and detailed financials This report has been prepared by Paul Farrer Tel: This report was prepared after consultation with: Internal consultees Corporate Management Team Operations Manager Information Technology (IT) Assistant Operations Manager Customer Services Performance Improvement Officer Procurement Officer

2 IT Transformation Officer Team Manager (Applications) Senior Systems Analyst Customer Services Advisors Procurement Manager The following policies form a context to this report: (all relevant policies must also be referred to in the body of the report) Building a Better Ipswich LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW (papers relied on to write the report but which are not published and do not contain exempt information) 1. Customer Access Strategy 15 th October 2013 Ref No: E/13/49 OTHER HELPFUL PAPERS (papers which the report author considers might be helpful this might include published material) 1. N/A

3 1. Introduction 1.1 In October 2013 Executive agreed the Customer Access Strategy (E/13/49) and required that a further report be brought to Executive regarding options for a new Customer Relationship Management System. 1.2 The Customer Access Strategy is based on a vision to achieve and maintain excellent services that are responsive to customer s needs, easy to access and represent good value. Achieving this vision requires both the right tools and the right culture within the Council. A modern, flexible and efficient Customer Relationship Management System is fundamental to achieving the vision. 1.3 The Vision is underpinned by seven principles: To provide access to our services at a time, place and in a way that most appropriately meets the needs of residents, businesses and others who contact us; irrespective of their age, gender, physical or financial ability, ethnic origin, race, religion, sexual orientation or geographic location. To equip our staff with the skills and knowledge that they need to provide an excellent standard of customer service and minimise customers unnecessary or repeat contact. Improve the speed and quality of our response to enquiries by having our information in a format that can be easily accessed and understood, jargon free and is straight talking. Enable our customers to provide feedback easily through comments, complaints and surveys and use this information to improve our service. Integrate customer service principles into mainstream service provision e.g. Customer Care Training, where appropriate. To provide excellent value for money, given IBC s limited resources, cut waste and direct resources to where they are most needed. To provide customers and staff with clear standards and expectations that reflect what they have told us is important to them. 1.4 In line with the implementation plan agreed by Executive last October, a system review followed by a procurement exercise has taken place. A comprehensive process has been followed, allowing officers to reach a significant level of confidence in the proposed Customer Relationship Management System.

4 1.5 The purchase and installation of a Customer Relationship Management System alone will not achieve the vision set out in the Customer Access Strategy. A small project team is working as part of the Transformation Programme to develop a detailed implementation plan not only for the Customer Relationship Management System itself but also to drive the other key elements of the Strategy: Channel shift moving as many customers as possible to the cheaper ways of accessing services while retaining face to face services for those who need them Reducing avoidable contact / demand management by taking a customer centred, right first time approach and planning our main outgoing contact with customers Increased activity in customer space moving first (only) customer contact out of the back office and into Customer Services providing a consistent level of service to customers Improved website with an increased focus on interacting with the Council as well as marketing. A new website was launched early in 2014 and is under constant review to assess whether it is helping to achieve the vision. Efficiencies through business process engineering reviewing our processes to ensure they are as efficient as possible. 1.6 Within the Transformation Programme an indicative savings target has been set in relation to the Customer Access Strategy. The Council expects to achieve a savings target of 500,000 per annum within two years of the implementation of the new Customer Relationship Management System (i.e. by the end of the 2016/17 financial year) 1.7 This report sets out the outcomes of the system review and procurement process for a new Customer Relationship Management System and seeks authorisation to contract with supplier CRM1. It also sets out the indicative next steps to achieve the Customer Access Vision in line with the Customer Access Strategy. 2. Background 2.1 A project team of customer services and ICT officers conducted an initial review of the Council s current Customer Relationship Management System to identify whether it would be capable of meeting the Council s needs. This review was supported by external expertise provided by Foresight Consulting (UK) Limited and included discussions with the current system supplier about developments and capabilities. The review concluded that the system which has now been in place for seven years in Ipswich Borough Council would not be able to meet future needs.

5 2.2 A specification document was developed using views and expertise from key stakeholders within the Council including customer services and ICT staff and the expertise of Foresight Consulting (UK) Limited, together with support from the Council s procurement team. Amongst other requirements the specification included the Council s needs around: Ability to migrate additional services into the customer space Enabling self-service including via tablets and other mobile devices Integration with key Council systems such as those for Council Tax, tenancy services, payments etc Data protection and information security Ability to develop scripts and processes within the Council without the need for expensive supplier consultancy Management information to enable service development and performance monitoring Automated workflows to avoid double keying 3. Relevant Policies 3.1 Building a Better Ipswich Principles and themes A Fairer Ipswich Value for Money A Safer and Healthier Ipswich A Greener Ipswich Goal By providing a good service to residents and other service users respective of their means or backgrounds The contract is considered to provide value for money and will facilitate the associated 500,000 savings targets within two years of implementation Full system implementation will enable more efficient service delivery in these areas Enabling greater levels of remote access to Council services will contribute to reduced travel to Council facilities 3.2 Customer Access Strategy the procurement of a new Customer Relationship Management system is fundamental to achieving the Customer Access Strategy.

6 4. Options Considered / Under Consideration 4.1 Having ascertained through the review of the current system outlined in 2.1 above, that it would not be able to meet the Council s needs it was decided to initiate a tender process following the OJEU restricted route, with added safeguards to ensure an open dialogue between Ipswich Borough Council s Customer Relationship Management Core Procurement Team and prospective suppliers. 4.2 The Pre-Qualification Questionnaire (PQQ) was issued on 27 th March 2014, and action taken to draw it to the attention of all prospective suppliers. 4.3 Eight completed PQQ s were returned on 29 th April 2014 and these eight companies were interviewed with six being considered acceptable at that stage and issued with an invitation to tender (ITT) on 2 nd June 2014, with a return date of 14 th July This tender stage included a supplier visit day hosted by the Customer Services Manager, aimed at ensuring the prospective suppliers fully understood our Customer Access Strategy and delivery expectations. Two suppliers withdrew and the remaining 4 participated in a Product Demonstration day in which they presented their systems, handling both pre-set and ad hoc requests. This made up 25 % of the final tender evaluation. 4.5 The Council also requested a demonstration tool (temporary licence for the product) to enable the Project Team to further test the products. 4.6 The full evaluation of the 4 tenders received included extensive site visits (both to supplier recommended sites and others), various moderation meetings, and a final clarification meeting with supplier CRM The recommended system meets the Council s requirements as stated in sections 1.5 and 2.2 above and provides best value. This was verified through the thorough evaluation of the tenders received. 4.8 If the recommendations of this report are agreed a detailed implementation plan for the new Customer Relationship Management System will be developed. This will need to be coupled with a revised implementation plan for the Customer Access Strategy to ensure that the required cultural changes are achieved. This is likely to include project teams drawn from across the Council to achieve channel shift, reduce avoidable contact etc. The scale and benefits to customers of the required change should not be underestimated and both Executive and Senior Managers will need to support the delivery of the Strategy in order to achieve the overall savings target.

7 4.9 In order to support the Council in ensuring it has a robust plan to deliver the strategy and savings, the Chief Operating Officer is in the process of identifying a best practice local authority to act as a critical friend to our planning and implementation. 5. Consultations 5.1 Tenderers presented their systems to the Project Team and site visits to current users of those systems also took place. Issues were clarified in accordance with the procedures stated in the ITT. The Transformation Board and Corporate Management Team have been kept up to date on the procurement and endorse the outcome. 6. Risk Management Risk Description The current system does not meet the needs of the council New system does not deliver the key objectives Consequence of risk Increasingly obsolete product unable to meet demands Unable to meet both performance and financial targets Risk Controls System management and supplier engagement Buddying system in place with other councils to share knowledge and experience in developing the product Probability of risk occurring taking account of controls (scale 1-6) 1 almost impossible 6 very high Impact of risk, if it occurred taking account of actions (scale 1 negligible; 4 catastrophic) Actions to mitigate risk 5 4 Replace system 2 2 Project team to be established to support product. Regular PI meetings with supplier, buddying process with other councils to minimise risk on technical issues. Wider project team put in place to manage nonsystem aspects of implementation

8 7. Environmental Impact Assessment 7.1 There are no specific environmental implications arising from this report. 8. Equalities and Diversity Implications 8.1 Under the general equality duty as set out in the Equality Act 2010, public authorities are required to have due regard to the need to eliminate unlawful discrimination, harassment and victimisation as well as advancing equality of opportunity and fostering good relations between people who share a protected characteristic and those who do not. 8.2 The protected grounds covered by the equality duty are: age, disability, sex, gender reassignment, pregnancy and maternity, race, religion or belief, and sexual orientation. The equality duty also covers marriage and civil partnership, but only in respect of eliminating unlawful discrimination. 8.3 The law requires that this duty to have due regard be demonstrated in decision making processes. Assessing the potential impact on equality of proposed changes to policies, procedures and practices is one of the key ways in which public authorities can demonstrate that they have had due regard to the aims of the equality duty. 8.4 An initial assessment was undertaken on 12 th September 2014 and it concluded the Customer Relationship Management System will allow the Council to monitor on-line use of corporate services by people with the nine protected characteristics, so the Council may develop polices in the future. A screening exercise indicated that, a full equalities impact assessment was not required at this time.

9 9. Financial Considerations 9.1 The initial purchase and implementation of the new CRM from Supplier CRM1 will require additional capital resource of 10,390. As shown in the table below. 13/14 14/15 15/16 Implementation costs, hardware costs, system costs and internal costs 82, Current budgetary provision -72, /17 Net cost 10, Executive is asked to authorise an additional 10,390 of capital to this project. 9.3 The ongoing net revenue costs are shown in the following table: 13/14 14/15 15/16 16/17 Licences, development costs and internal costs 10,500 86,740 62,140 54,650 Current budgetary provision from existing software maintenance budgets 0-27,000-27,000-27,000 Net cost/ saving (-) 10,500 59,740 35,410 27,650 Band B equivalent It is proposed that the net additional revenue cost is added to the savings target for the Customer Access strategy and delivered through efficiencies resulting from the implementation of the system. 9.5 A more detailed breakdown of the costs is included in the exempt Appendix Legal Considerations 10.1 The procurement of the Customer Relationship Management system has been carried out in accordance with contract standing orders and the Public Contracts Regulations 2006 which implement the EU procurement directive in the UK Following Executive s decision and the expiry of the 10 day standstill period required by the Public Contracts Regulations the Council will

10 enter into a formal contract with the supplier in accordance with the tender documents. 11. Performance Monitoring 11.1 An implementation plan is under development for the Customer Relationship Management System implementation and the delivery of the remainder of the Customer Access Strategy. Progress will be monitored regularly by the Transformation Board and reported to the Portfolio Holder. The Customer Services Operations Manager will meet regularly with the supplier to ensure any issues are speedily resolved Contract monitoring will be undertaken using key performance indicators (KPIs). 12. Conclusions 12.1 In order to achieve the Customer Access Strategy the Council needs to replace its Customer Relationship Management System and develop a revised, robust implementation plan for the remainder of the Strategy A robust procurement process has identified supplier CRM1 as providing the best value system to meet the Council s requirements. If the recommendations of this report are agreed then the new system should be implemented early in the new year. 13. Recommendations It is recommended that: 13.1 Executive authorise the Chief Operating Officer, in consultation with the Legal Services Operations Manager, to contract with the supplier identified as Supplier CRM1 in exempt Appendix 1 of the report to deliver the Customer Relationship Management System and to provide support and maintenance in accordance with its tender. Reason: Supplier CRM1 s tender meets the Council s technical requirements and is the most economically advantageous for the Council Executive authorise the Chief Operating Officer, in consultation with the Deputy Leader, to take the necessary steps to develop and deliver robust implementation plans for the Customer Access Strategy and the implementation of the Customer Relationship Management System. Reason: To ensure that the Customer Access Strategy is delivered

11 13.3 Executive authorise the Operations Manager for Finance and Procurement to add 10,390 to the capital allocation for the procurement of a new Customer Relationship Management System. Reason: To enable the Council to take advantage of the most economically advantageous tender and implement a Customer Relationship Management System which will enable delivery of the Customer Access Strategy

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