Sustainable Growth in Products & Services 22nd March 2013 Duncan Brock, Customer Relationships Director Leading global excellence in procurement and supply Goal To deliver sustainable sales of products and services with CIPS to be seen as the ‘go-to-place’ to help develop organisational Procurement and Supply know-how. Why is this important to CIPS? Corporate revenues for CIPS have the potential to increase significantly over the next 10 years, which will generate additional margin that can be invested back into the on-going development of the Institute. There is increasing demand from Corporates & Public Sector organisations for our support to help them develop the capabilities of their procurement and supply teams & processes. Corporates will help drive our international expansion as they are looking for consistent products, services and solutions delivered globally. 2 Leading global excellence in procurement and supply SWOT Analysis Strengths Improving brand – becoming recognised globally. Trusted as a provider – integrity and independence Excellent list of reference customers Unique offerings – Corporate Award, Qualifications, Certification. Increasing demand. Good sector presence & case studies in Aerospace & Defence, Oil & Gas, Engineering, Public Sector. Increasing global footprint with growth in regional offices. Opportunities Large potential corporate market, globally. Increasing demand for our current core offerings. MENA, China, Africa, UK – strong pipeline of demand with our growing presence in these markets. Turkey, Switzerland, Poland, France, Denmark, Sweden, India, US, Canada. Broaden our products and services to become the “go-to-place” – CIPS First. Win & secure longer term corporate relationships. Academies – we have a small share of the market. Increase our presence in other sectors. Weaknesses IPR ownership across all products and services. Limited ability to deliver in other languages. Inconsistency across regions in selling core products. Lack of procurement knowledge in sales teams. High dependency on suppliers for delivery. Limited delivery capability in US, apart from eLearning. No business development capability in the US, India and the rest of Europe (except Turkey). Lack of money to invest in on-going development & upgrades of core offerings. Threats ISM – protect the US and global expansion. Other professional bodies enter the market. Loss of existing customers through products becoming old & less relevant. Technology led entrants into our core market. In house training revenues reduce as consultancies take our customers – limited differentiation. Local sourcing by procurement teams. Our suppliers take business from our customers. Brand reputation impacted by poor quality delivery. Leading global excellence in procurement and supply 3 Strategic Themes • Customer retention and development • Sector growth • Geographic growth and spread • Increasing CIPS profile in Corporates • Generation of new leads • Increasing breadth of services • Margin growth 4 Leading global excellence in procurement and supply Sector Growth Growth sectors Current good footprint Growth sectors Building presence & footprint Aerospace & Defence UK Public Sector Oil & Gas – growing to Engineering Energy Automotive & Transport Food & Drink Pharmaceuticals Financial Services Mining Potential sectors for future growth Telecoms & IT Construction Retail 5 Leading global excellence in procurement and supply Strategic Enablers • People • Processes & measures • Marketing & PR • Product development • • Procurement insights 6 Leading global excellence in procurement and supply Two questions for you … 1. What do you think CIPS needs to do to increase our corporate revenues and margins in your sector/ geography? 2. Looking forward to 2017, what additional products and services should CIPS provide for corporates? 7 Leading global excellence in procurement and supply