The focus of the programme was to look at ways to generate income from two internally conceived and developed digital solutions. This case study forms part of our productivity expert programme resource.
Asteria is a data matching application that enables a range of data sources to be matched against a primary data source. It was originally created to detect anomalies that could identify potential electoral fraud and reduce the cost of manual investigation.
Share Peterborough is a totally free, member only, online sharing community for local organisations, which allows members to use the site to exchange products, skills, and services, and offer exclusive promotions to other members. The platform was devised and is owned by Peterborough City Council as part of its Circular Peterborough initiative, under the Future Peterborough Programme. Further details can be found here. Success stories include desk fans being donated to a local hospice, used office furniture put to use by local start-ups, and event spaces being shared between organisations in Peterborough. Further examples of what might be shared can be viewed here.
Both products were shortlisted for LGC Awards, with Share Peterborough recently being awarded “Highly Commended” in 2018.
The challenge
The challenge set to the productivity expert was:
- To explore ways in which Asteria could be extended and utilised for other internal services.
- To evaluate the potential to commercialise Asteria as a product or service for sale to other councils and businesses.
- To create a business plan, setting out all requirements to enable the commercialisation of Asteria, together with market analysis and resource planning.
- To demonstrate the value of using data in an organisation.
- To develop a business plan for Share Peterborough including market analysis and resource planning, to identify potential income streams which might ensure sustainability of the platform and fund future development.
The solution
In terms of Asteria, the productivity expert presented a range of possible solutions for internal use of the product such as data matching for council tax, NNDR and licensing. A detailed business plan was also produced, with options for potential external commercialisation opportunities, such as providing a consultancy service, software as a service offering and direct software sale. Similarly, a business plan was developed for Share Peterborough which investigated ways in which income could be generated without detracting from the core principles and the need to keep the platform free to use. This included donations and advertising, as well as alternative options such as charging a small transaction fee or subscription.
The impact
The process has made a valuable contribution to shaping our thinking around the use and potential for both systems moving forward. The impact of the commercial analysis in particular, helped to understand what was and wasn’t possible and or realistic. It also opened up new potential opportunities.
Following the analysis, we concluded that marketing Asteria wider would not be feasible in the manner that we first thought. This followed a detailed competitor analysis and the financial/ resource plan, which illustrated what would be required to support the product. This proved very useful and helped us focus on internal uses for the product.
With regard to Share Peterborough, the business plan also highlighted a number of options which we are still exploring as part of the Circular Economy Programme. This included the potential diversification of the product to develop:
- Business networking services – including workshops
- Skills development activities – including training, online learning
- White label/hosted versions of the platform to sell to other local authorities, with accompanying support packages.
- Crowdsourcing/angel investments
Since the commencement of the programme, Asteria has been utilised internally for Selective Licensing to identify potential private landlords or their managing agents that might require a licence to rent out their property. This has assisted in identifying a potential income of £1.8m over five years. Furthermore, having had the opportunity to evaluate the results, we are finding that this has led to an 80 per cent success rate. Initial work was also undertaken on Single Person Discount, revealing potential to recover £1.2m over three years.
How is the new approach being sustained?
A key outcome from the programme was to demonstrate the value of data internally and this has been successful. Our initial motivations for developing the systems are still relevant and the ambitions are equally still valid. However, the Productivity Expert has highlighted requirements and dependencies that had not been considered at the development stage. This will help us when developing new products and has enabled a more commercial mindset which also considers long term sustainability.
Both products will be maintained in their current state, but using the knowledge that we have gained from the Productivity Expert, we will explore future strategies and opportunities for developing both.
Lessons learned
Both products were developed for specific uses, which they achieved. The purpose was therefore to look at how they can be utilised in different ways to deliver or support income generation or cost saving activities. The process has been incredibly valuable not only to understand how we might go about achieving future benefits from the products or what may be unattainable, but also what consideration we should make when designing new products. The knowledge gained from the productivity expert cannot be undervalued – it has been exceptionally useful to gain commercial insight from within a practical project, using real products in a non-theoretical environment.
Council contact
Elliot Smith
Email: [email protected]
LGA contact
Grace Abel
Email: [email protected]