Location Intelligence: The business case
Here, we explore the best approach to developing a business case for investing in location intelligence.
In the first part of the video, we look at why we need a business case, whilst in the second part we give some examples that can be used in your own authority.
In the public sector, a business case is almost always required for investment to ensure that public money is invested in the most effective manner.
The levels of sophistication required by decision makers in your authority will vary according the size and complexity of the project or programme envisaged.
A business case is a structured proposal for business improvement that provides a package of economic and related information sufficient for decision making. The highlighted phrases describe well the characteristics of any business case — it must be well structured, describe the business improvements it brings and give sufficient evidence for a reasoned decision to be made.
Public sector business cases should follow guidelines in the Treasury Green Book and associated guides.
The green book explains the five separate perspectives that need to be addressed in any business case:
- The strategic view looks at whether the investment fits with the organisation’s goals and citizen needs.
- The economic view is usually the most difficult — how do we work out the value of the benefits. The second part of the video gives examples that you can draw on.
- The commercial view focuses on how you have ascertained potential costs and procurement approach.
- The financial view shows costs and benefits expressed in terms of capital v operational expenditure and considers affordability — what funding will be necessary and when.
- Finally, the management view covers the ability of the organisation to deliver a successful project.
In creating the business case it is important to remember that location information is always “a means to an end’ and value is most clearly realised, and behaviours changed, when it is used in applications to support decision making and action planning, and thereby generating business impact.
There are many courses available which provide the skills and knowledge necessary to develop a compelling business case.
The second part of our video is dedicated to presenting some of the many examples of proven business cases for location intelligence.
Those illustrated in this video and more fully explained in the case study web page include:
Fraud Reduction in Wales
The project increased revenue by identification of missing properties generating: £100,000 in Newport and Cardiff along with a further £160,000 from the nine additional participating local authorities. Benefits from extending this project across Wales are likely to be over £500,000 and it has been estimated they could be in excess of £7 million when extended throughout England and Wales. The project has the potential to be expanded to investigate potential fraud in council tax discounts for single occupancy and also housing benefit.
Multi-Agency Incident Transfer (MAIT)
It has been estimated that MAIT reduces the call time from over 4 minutes per call to 16 seconds. This has resulted in a saving of 18,000 hours spent on the phone requesting attendance from other agencies. It has been calculated that the potential time-savings for one force/agency per year could be in the region of £37,000.
Integrated Transport Planning
Transport for London (TfL) is leading the way in increasing the availability of high quality data to improve the service to its 8 million customers. The value of time saved due to the avoidance of disruption on the transport network in 2012 is estimated by a Deloitte study at between £15 million and £58 million, depending on the modelling assumptions used.
Barcelona’s Parking Management Solution
Since its inception in 2013 an average of 4,000 tickets have been issued per day and 650,000 tickets issued in the first year. A review of the project by the Harvard DataSmart team suggest that parking revenues have increased by $50 million (£40 million) since the scheme was introduced.
This video was produced with the support of GeoPlace. GeoPlace works with local authorities to create and maintain the National Address Gazetteer infrastructure and the National Street Gazetteer for England and Wales.