Business booming for West Midlands technology entrepreneurs By Mike Musson, Advantage West Midlands ICT Cluster Manager
Author: Mike Musson
Last Updated: 8/23/2009 8:57:11 PM
Summary
While slow economic recovery comes as welcome news for many small businesses that have seen tough times of late, the news is no surprise to some. West Midlands ICT businesses have been continuing to blaze a trail even during a recession that has rocked the globe.
Article
With small, home-grown entrepreneurs rubbing shoulders with some
of the biggest names in international technology such as QinetiQ,
Fujitsu, CSC, Oracle and Ericsson it's no surprise that the West
Midlands has become a thriving success, a vital hub in the UK ICT
network.
Perhaps one reason for the area's exponential growth has been an
ongoing determination to invest in the future. A recent survey by
Advantage West Midlands' ICT Cluster found that in spite of the
recession, an exciting 33 percent of the 1,500 respondents were
actively investing in research and development, a critical area in
terms of future competitiveness.
One example is criminal intelligence solutions firm Forensic
Pathways, which has announced a forward-looking research and
development program of half a million pounds. The programme will
also sponsor three PhDs at Universities in the West Midlands area.
The company won industry acclaim when it launched the world's first
Innovation Report with the Prime Minister in late 2008.
The ICT Cluster research also highlighted the longevity of local
businesses (56 percent having been operational for at least ten
years) and key strengths such as diversity and niche product
offerings. A full 17 per cent operate in specific niche markets
that offer higher than average opportunities for growth. In
addition, 33 per cent of respondents - a total of 499 businesses -
offer products or services for which they own the Intellectual
Property Rights, possibly a direct result of R&D
investment.
Mike Musson, ICT Cluster Manager at Advantage West Midlands,
said: "It is encouraging that so many firms across the Heart of
England are still determined to invest in research and
development, even though budgets are being squeezed in this
economic climate.
"As demonstrated by the ICT businesses surveyed, niche market
enterprise is key to growth during a downturn. Our survey also
highlights how the region is home to many innovative companies that
are pushing ahead to deliver exciting new products and services
that customers would struggle to find elsewhere."
One such company is Rapide Communication, a mobile software
developer. Founder Nigel Shanahan, said: "We are proud of the
region's heritage as the birthplace of the Industrial Revolution,
where innovation drove the change that would transform the world.
Although we may not transform the world, we hope to change the way
the world thinks about communication through our innovative
solutions and forward thinking". One particular way the
company is helping UK businesses is through the use of its
technology to provide their customers with the ability to send
mobile swine flu alerts.
"Whilst many of our clients are headquartered in London (and
especially Canary Wharf) we have clients throughout the UK,
including Scotland, so the effective Midlands communications and
travel links are vital to our success."
Another local success story is Lanner Group, whose origins lie
in the West Midlands car industry. The 50-strong company evolved
from the original IT department of British Leyland Systems and is
recognised as the world leader in business process simulation and
optimisation. Lanner products are now used in a broad range of
industries including manufacturing, defence, air transport,
finance, healthcare and energy, as well as police forces and NHS
Trusts.
The company received financial support from the regional
development agency; Advantage West Midlands in the form of Research
and Development funding which Lanner Group believes was invaluable
in speeding up their product development phase.
A common trait of businesses in the area is an ability to
innovate. This creative spirit is another reason for the region's
vitality and resilience to market conditions, and is seen as a key
driver for new businesses seeking to set up in the West Midlands.
The ICT cluster is no exception, and has piloted a wide variety of
innovation schemes with considerable success.
The annual ICT Conference continues this innovation theme, and
will be held this year at the National Motorcycle Museum on 10th
November. It offers West Midlands' ICT businesses unrivalled
network opportunities and access to technology partners, thought
leaders, business innovators and support organisations. The free to
enter ICT Excellence Awards
(http://www.wmictcluster.org/events/2009/awards2009) are an
acknowledged opportunity for SMEs to be recognised for their
innovation and outstanding products and services. Additionally, the
ICT Cluster is actively assisting businesses to benefit from EU
funding, and has launched a microsite (www.wmictcluster.org/europe)
to guide and encourage firms seeking EU support.
West Midlands at a glance:
While Birmingham is only 90 minutes from London it benefits from
a cost base that is 25 per cent cheaper than the capital, according
to Ernst & Young. While other cities can parallel the savings,
none offer the scale of Birmingham and the proximity to London.
The West Midlands is home to a vibrant entrepreneurial cluster
of ICT companies, employing more than 51,000 people in more than
8,600 businesses. The combination of large and small businesses has
created an extremely rich environment for successful strategic
partnerships.
The region offers an extensive network of technology consultancy
and expert support services including Graduate Advantage, Knowledge
Transfer Partnerships, iCentrum, National Business to Business
Centre and the International Digital Lab.
There are 13 universities producing 4,000 business and IT
graduates annually, providing an exceptional skills base - an
impressive 21 per cent of undergraduates in the region study
computer science and business.
The Author
Mike Musson has been ICT Cluster Manager at
Advantage West
Midlands since July 2006.
Previously Mike ran his own successful IT business so brings
valuable private sector experience and insight to the public sector
ICT Cluster initiative.
Mike and his team at the ICT Cluster are focused on
helping small-to-medium sized West Midlands businesses to become
more successful which in turn should help the region to become more
prosperous. The ICT Cluster runs a number of initiatives to reach
these goals including: increasing the number of businesses engaging
in innovation and undertaking R&D, assisting businesses to lock
into regional, national and EU funding programmes, accessing UKTI
support for international trade as well as running the ICT
Cluster Conference and ICT Excellence awards. The ICT Conference
attracted 420 participants last year making it the largest event of
its kind in the UK whilst the Awards have grown in prestige year on
year now recognised by the Technology Strategy Board sponsoring a
special award.
In addition, the ICT Cluster team have been instrumental in
setting up initiatives such as Accredit UK, Open Advantage, IT
Futures, West Midlands Mobile and Wireless and the UK IT
Association to encourage innovation and competitiveness among West
Midlands technology businesses.