Microsoft UK Business News

EU economy team named

Fri, 27 Nov 2009 18:01:27 GMT

A new team of executives has been appointed to the European Commission in a bid to lift the European economy out of recession.

Olli Rehn, from Finland, has been given the key role of overseeing monetary affairs, taking over from Spaniard Joaquin Almunia, who will become competition commissioner.

Other noteworthy appointments include that of France's Michel Barnier who will become the internal market commissioner with responsibility for financial services.

Provided the team is granted the approval of the European Parliament, it will serve for five years.

"I want this commission to have been instrumental in leading Europe out of the economic crisis towards a competitive economy that provides sustainable growth," said commission president Jose Manuel Barroso at a press conference.

According to BBC Europe editor Gavin Hewitt, the appointment of Mr Barnier comes as a blow to the financial markets in Britain, which have lobbied against what it perceived as moves by France to rein in the City.

"The unknown question is how determined Michel Barnier will be to regulate complex financial markets," said Mr Hewitt on the BBC News website.

There is some consolation for Britain in that Mr Barnier's department will be headed by an Englishman, Jonathan Faull, who will move from justice and home affairs to take on his new economic role.

Posted by Steve Williams

CBI concerned by new financial services guidelines

Fri, 27 Nov 2009 17:57:27 GMT

New corporate governance rules for the UK financial services sector could mean that businesses are unfairly treated, John Cridland the deputy director-general of the Confederation of British Industry (CBI), has warned.

Mr Cridland was responding to the Walker Review of corporate governance which was published yesterday.

In what has been widely received as an extremely strict proscription on the excesses of the City, the report recommended that a new law be brought in to force banks to publish the pay of their top earners in bands. It was also recommended that investors sign up to an independently monitored Stewardship Code that will be overseen by the Financial Reporting Council.

However Mr Cridland has expressed concern that rules intended to apply broadly to banks could "spill over" to companies.

"It would be wrong to burden all companies with extra, inappropriate regulations when they have played no role in the financial crisis. Listed companies are already covered by the Combined Code, and there has been no widespread failure of corporate governance beyond the few, specific examples in the banking sector," he said.

The review was commissioned in February to explore failures in corporate governance and the management of banks.

Posted by Steve Williams

Retailers confident in run up to Christmas

Thu, 26 Nov 2009 17:06:26 GMT

Business sentiment about the retail sector is positive for the first time in more than two years, according to a report by the Confederation of British Industry (CBI).

The CBI's latest Distributive Trades Survey found that 13 per cent of firms are expecting an improvement over the next three months, the first positive result since August 2007 (+10 per cent) and the strongest since May 2004 (+22 per cent).

Growing retailer confidence is supported by consumer attitudes. An Ipsos MORI survey for the Observer found that 46 per cent of the public believe the economy will perform better over the next year.

This growth in optimism is reflected by improving sales figures. The report's three month moving average of sales volumes turned positive to eight per cent and is expected to grow further in December to +14 per cent.

Andy Clarke, chairman of the CBI Distributive Trades Panel and chief operating officer of Asda, said: "It's reassuring that the high street now has a second month of sales growth behind it, and it looks like December will be even better. A lot of retailers have suffered during 2009, and many are relieved that the year is ending on a more positive note."

Despite improving sales volumes the report showed that retail employment conditions remain difficult. A balance of 27 per cent of firms reported that they had reduced their headcount this quarter, with the same rate forecast for December.

By Jenny Arthur

Expert says China could threaten global economic recovery

Thu, 26 Nov 2009 17:02:26 GMT

One of the UK's top fund managers has warned that the actions of emerging markets, and particularly China, could derail economic recovery in 2010.

Speaking at a briefing in London, Jeremy Tigue of Foreign & Colonial Investment Trust said there was a risk of a major currency dislocation between China and the US occurring next year.

Mr Tigue said that if China persisted in preventing the yuan from going up against the US dollar the nation would effectively be "exporting deflation to the rest of the world and contributing to global economic problems".

He added: "China currently holds significant exposure to US Treasury bonds; a decision to ditch this policy could spark rate rises in the US and derail economic recovery in the developed markets."

In addition to such warnings Mr Tigue said that growth prospects for emerging markets like China were stronger than for developed markets.

For investment trends in 2010 Mr Tigue pointed to a return to defensives and healthcare stocks, both of which have been historically cheap. The latter have been driven down in price as investors remain uncertain about drug prices in light of the Obama administration's healthcare plans.

A range of economic forecasters including the International Monetary Fund have predicted that recovery in 2010 will remain slow and weak.

Posted by Steve Williams

Social networking offers huge opportunities to retailers

Wed, 25 Nov 2009 17:33:25 GMT

Businesses within the retail sector could see huge benefits from embracing social networking, according to one expert.

Speaking at the Fashion Summit, Kristine Kirby, home shopping director for Fat Face, said that there is a "massive opportunity" for retailers to market their products online via sites such as Facebook and MySpace.

"It is about promoting an area on Facebook where it is engaging and is relevant to what [the fashion retailers] are doing at the moment. There is still a big way to go with the way social media and retail can work together," she added.

Ms Kirby went on to say that online retailers have to work harder than their counterparts on the high street to get consumers shopping, as expectation levels are much higher than they used to be.

She advised firms that in order to be successful they must know who their customer is, what they are likely to want and that the products on sale are the right ones.

Ms Kirby's comments come after research by Experian Hitwise showed that Facebook accounts for one in every seven pages viewed by UK internet users and also accounted for 14.5 per cent of all UK internet page views during September 2009.

Posted by Steve Williams

CBI says manufacturing outlook poor but improving

Tue, 24 Nov 2009 11:49:24 GMT

Demand for UK manufactured goods remains very weak, although signs for the sector are improving, it has been claimed.

According to the Confederation of British Industry (CBI), order volumes are less depressed than they have been for much of 2009 and a stronger fourth quarter of the year is expected.

Firms expect output to grow slightly over the next three months, according to the CBI's latest monthly Industrial Trends Survey.

Some 27 per cent of manufacturers anticipate a higher volume of output over the next quarter, while 23 per cent expect a fall.

The resulting positive balance of four per cent marks the second consecutive month where marginal output growth is expected.

A balance of 45 per cent of firms said total order book levels were below normal, which was a slight improvement on October (51 per cent).

CBI chief economic adviser Ian McCafferty said manufacturers had experienced "another testing month", though conditions are "not quite as bleak" as they have been.

"The weaker pound has softened the blow for exports, but the ongoing lack of demand for manufactured goods reconfirms that any recovery will be anaemic and slow," he added.

Earlier this month, the government announced it was adding £40 million in funding to its manufacturing technology centre.

Posted by Jenny Arthur

Nationwide expresses concern for economic recovery

Tue, 24 Nov 2009 11:48:24 GMT

Nationwide Building Society has reported a 62 per cent fall in pre-tax profits.

The organisation made £143 million during the six months to September 30th, down from £374 million a year ago.

Nationwide said the recession had contributed to increased levels of business failures, weak tenant demand and reduced investor appetite within the domestic commercial property market.

And while it said the economic outlook had improved over the last six months, the society warned it could take several years to return to the levels of output witnessed prior to the recession.

Nationwide's chief executive Grahame Beale commented: "Looking ahead we expect the remainder of this year and next to present a very difficult trading environment.

"Economic recovery is forecast to be slow and we expect interest rates to remain at their current level until at least the fourth quarter of 2010. We are also cautious on future prospects for the housing market."

However, Mr Beale noted that Nationwide's strong capital base, low risk profile and highly liquid balance sheet continue to underpin its financial strength.

Consequently, he said the society was able to continue meeting its core objective of providing financial security and support to its members.

The UK economy has now remained in recession for six consecutive quarters, the longest period since records began in 1955.

Posted by Steve Williams

Firms successfully running wellbeing schemes

Tue, 24 Nov 2009 11:05:24 GMT

The number of firms running wellbeing programmes in a bid to improve employee engagement has risen significantly, it has been claimed.

According to a study conducted by Buck Consultants, half of all firms have such a strategy in place at present designed to improve staff retention rates.

The research suggested that 97 per cent of firms which have implemented a wellness programme did so to improve worker productivity, and 30 per cent have seen major or fairly major improvements as a result.

Adrian Norris, managing director of the health and productivity practice at Buck Consultants UK, said improving the health and wellbeing of employees is not only part of a company's duty of care to its staff, it can be "a cost effective way" for firms to improve their productivity and retain top talent.

He added: "Stress levels are higher in the workplace and the negative impact this can have on motivation, productivity and employee churn is notable.

"Historically, companies have incentivised staff financially, but particularly in the wake of the credit crunch, finding a means to motivate your workforce, improve their wellbeing and thus their efficiency by other means can make a big difference to the financial health of the business."

According to the National Institute for Health and Clinical Excellence, stress and other mental illness at work is estimated to cost UK employers £28.3 billion per year.

Posted by Alex Boardman

Olympic contracts still up for grabs

Tue, 24 Nov 2009 11:04:24 GMT

Significant Olympic and Paralympic contracts are still up for grabs, UK firms have been told.

Attendees at the London 2012 Business Summit heard that with less than 1,000 days to go until the Games kick off, there are around £1.7 billion worth of contracts still to be awarded.

More than 1,000 businesses across the UK have won direct contracts from the Olympic Delivery Authority (ODA) to date, creating thousands of opportunities throughout the supply chain.

Commenting on the news, Sam Turvey, communications manager at the British Chambers of Commerce, said the Olympics is "a huge procurement opportunity", particularly for London firms.

He added: "Certain businesses in particular areas of the country are going to do very well from the Olympics.

"The first ambition just has to be getting the sites ready on time and within budget, after that there may be more opportunities to explore."

Mr Turvey said there are openings in construction, but also in other areas around the project including security, transport, food, insurance and other services.

Meanwhile, ODA chairman John Armitt has claimed the 2012 delivery project is "on track and within budget".

Posted by Alex Boardman

Global economy fragile but stable

Tue, 24 Nov 2009 11:01:24 GMT

The world economy remains in a "holding pattern", according to one global finance expert.

Dominique Strauss-Kahn, the managing director of the International Monetary Fund, told members of the Confederation of British Industry (CBI) that plans for fiscal consolidation should be the top priority for governments as they seek a way out of the downturn.

He said he believed the economic storm "had passed" and the worst had been averted, but the global economy remains threatened by undercapitalised banking systems, weak household finances, high unemployment and large public deficits.

Latest figures from the UK showed that gross domestic product fell by 0.4 per cent in Q3 2009, bringing the series of consecutive quarterly falls to six – a record.

Adding her view, Hetal Mehta, an economist and economic advisor for the Ernst & Young ITEM club at Oxford Economics, said it is key for governments "not to pull the rug out of the recovery by withdrawing fiscal stimuli too quickly".

She said it is unlikely this situation will occur, primarily because the Bank of England has purchased large amounts of government debt.

"For them – a major buyer – to suddenly pull out of the market is going to be very difficult," she said.

"I don't think there's any reason why they can't just leave that extra liquidity in the market for quite some time."

Posted by Jenny Arthur

Green policies must be communicated to employees

Mon, 23 Nov 2009 14:53:23 GMT

Implementing green policies requires a top-down and bottom-up approach within businesses, it has been claimed.

According to Rob Holdway, a Department for Environment, Food and Rural Affairs (Defra) campaign supporter and presenter of Channel 4 series Dumped, firms can derive real benefit by conducting simple environmental audits and including employees in the process.

This can help firms to prioritise their activities and make a difference to their carbon footprint, he added.

Mr Holdway explained that employee engagement is pivotal to the process as it is the workers who need to actually introduce and carry out any changes.

Firms are often fairly poor at communicating new policies to their staff, and what the benefits may be, he suggested.

Continuing, Mr Holdway added that companies may wish to think about the opportunities the environment brings for them in terms of promoting their business and gaining access to new firms – particularly in supply chains.

"This is also a commercial opportunity for companies to think about the environment and how they promote themselves," he added.

Last week, Defra launched an awareness campaign to assist businesses in making environmental changes which could save them a combined £6.4 billion every year.

Posted by Steve Williams

Employers should encourage workplace exercise

Mon, 23 Nov 2009 14:52:23 GMT

Employers have been reminded of the potential health risks faced by workers who sit at their workstation all day.

Matt Birtles, an ergonomist at the Health & Safety Laboratory (HSL), said all workers should be encouraged to take exercise during the day wherever possible.

This helps to limit aches and pains, and prevent more serious physical conditions from developing – for instance back problems – he suggested.

He said physical activity in the office need not be overly strenuous, and can be as little as taking regular short walks to the kitchen or printer room.

"Simply keeping active, getting up from the seat regularly and moving about does help," Mr Birtles said.

"Each time we stand up and walk about it gives our body a break from the fixed posture and lets the muscles relax and blood flow freely for a while. We'll feel less fatigued by the end of the day."

He added that where it is not feasible to stand and walk around for the recommended ten minutes in every hour, workers can still do gentle stretches at their desk to give their bodies a break.

According to HSL, back pain is the UK's leading cause of disability, with 1.1 million sufferers.

In 2007-08 more than four million working days were lost due to the condition and one in eight unemployed people cite back pain as the primary reason for not working.

Posted by Jenny Arthur

Employers not appreciating apprenticeship benefits

Mon, 23 Nov 2009 14:49:23 GMT

Some employers are failing to value apprenticeships as highly as university degrees, it has been reported.

According to Steve Huxham, chairman of The Recruitment Society, many businesses do not appreciate the true worth of focused, on-the-job training.

He was commenting after the government pledged to invest £400 million into apprenticeships for those aged 19 or over in the 2010-11 financial year.

Mr Huxham said there is an ongoing feeling that vocational courses are more geared to what the individual wants, rather than what is actually needed in the employment market.

He said that "joined up thinking" is required to balance the needs and desires of both undergraduates and the businesses they will potentially go to work for after studying.

"Personally I think employers should see an awful lot of value in more traditional-style apprenticeships," he added.

Mr Huxham went on to say that there should also be more apprenticeship places, but employers must be educated as to the true worth of such initiatives to their operations.

Such a process will require additional time and effort, in addition to any funding made available by the government, he claimed.

Posted by Dan Smith

Law firms benefit form hiring women

Mon, 23 Nov 2009 14:47:23 GMT

Law firms can derive great benefits from hiring more female professionals, it has been suggested.

Dr Clare McConnell, chairwoman of the Association of Women Solicitors, said that at present, just 15 per cent of legal partners in the UK are women, but 60 per cent of entry-level recruits are now female.

Female hiring can benefit firms, she suggested, as women lawyers tend to offer different skills to their male counterparts.

"An example of that is that women are very good team players; they enjoy working in teams and leading them as well," said Dr McConnell, a partner and head of projects practice at Stephenson Harwood.

She added that female lawyers are "very hard working and very determined".

"They are also hugely successful in nurturing and developing talent and when they do well, they often say the success is down to the team," Dr McConnell added.

This modesty may be admirable, she noted, but women need to back their own ability to lead teams and take credit for their achievements.

Dr McConnell said that when clients are looking for advisors, they seek individuals who can not only work in a team, but lead and spearhead them towards success.

"Women solicitors need to get better at identifying these skills in themselves," she added.

Last week, the Office for National Statistics reported that the gender pay gap – measured by the median hourly pay excluding overtime – fell from 12.6 per cent last year to 12.2 per cent in 2009.

Posted by Sarah Parish

Data breaches can be intentional or accidental

Fri, 20 Nov 2009 12:08:20 GMT

Employees can be an accidental or intentional threat to the security of their employer's data, it has been claimed.

Commenting after it emerged that T-Mobile staff had passed thousands of customers' records to third party agents, Paul Mutton, internet services developer at Netcraft, explained the gravity of the risks to businesses and other organisations.

He claimed that employers must be aware of the dangers of data leaks facilitated by staff, and recognise that they may not always occur maliciously.

Mr Mutton said it is "certainly a good idea" for organisations to provide staff with guidelines on data security, especially with remote working potentially increasing the risk of breaches.

"It is spreading data out to more computers at the end of the day, so it is certainly not going to decrease the risk," he stated.

"If someone is working from home and their laptop gets compromised by something else, even if the data is encrypted, it is always possible that the data can be stored and transmitted through some other channel through a Trojan [for example]."

Earlier this week, the Department of Health announced that summary care records containing key medical information will be made accessible wherever patients are treated across London via the internet.

Accounting fraud a growing threat to UK firms

Fri, 20 Nov 2009 12:06:20 GMT

Organisations around the world are increasingly facing the threat of accounting fraud, according to a new study.

PricewaterhouseCoopers' (PwC) Global Economic Crime Survey indicates that it is the fastest growing economic crime in the world, affecting both UK and international institutions.

Almost half of all organisations in the UK had experienced some form of economic crime in the last 12 months, the study found, with asset misappropriation the most common ahead of financial statement fraud.

However, reported instances of accounting fraud have more than tripled in the UK, rising from just 11 per cent in the six years since the report was first published.

PwC reported that the three most common factors which lead people to commit fraud are the fear of losing jobs, the pursuit of bonuses and increasingly difficult targets.

Of all crimes, 77 per cent were committed to maintain current living standards, the study found.

PwC partner Tony Parton said a "perfect storm" of economic crime was currently being experienced, with increased pressures and opportunities to commit fraud accompanied by fraudsters' growing ability to justify their actions.

"Fraudsters can come from anywhere, but those feeling the tightest financial pinch are more likely to get involved," he stated.

Earlier this year, KPMG fraud investigations partner Hitesh Patel predicted that the longer the recession continues, the more economic crime will be seen.

IT specialist clears up SOA myths

Fri, 20 Nov 2009 12:04:20 GMT

Some firms struggle to understand the concept of service-oriented architecture (SOA) because it focuses on the business, not underlying technology, one expert has claimed.

According to IT specialist Joe McKendrick, SOA differs from many other IT concepts in this sense.

He said that ideally, it represents the abstraction of business capabilities away from technology, but over the years, many vendors have pitched SOA as being something that can be purchased in a packaged offering.

Mr McKendrick commented: "SOA is an architecture that is the outcome or the result of what you do with your IT assets. You can't go online or go to a software provider and buy a result.

"A well-functioning SOA results from ongoing collaboration between business users, IT, and enterprise architects."

He added that SOA is "an evolution" and most firms are still in the early stages of development.

However, as companies increase their service inventories, they will recognise that these need to be governed and orchestrated, moving them closer to the SOA vision, Mr McKendrick predicted.

Earlier this week, British Airways announced plans to use service-orientated architecture to modernise its travel programme.

Bribery bill should lead to better practice

Fri, 20 Nov 2009 12:00:20 GMT

The new bribery bill presents an opportunity for companies to improve their business, not just their ethics, it has been claimed.

Announced in the Queen's Speech, the bill is likely to be enacted in 2010, making it illegal to bribe a foreign official to obtain or retain business.

Businesses that offer such incentives, or allow employees or other firms to do so on their behalf, will face sanctions under the proposed legislation.

Unlimited fines may be imposed on companies if found guilty, while individuals who solicit trade in this manner could be imprisoned for up to ten years.

John Burbidge-King, a fraud and corruption expert at Interchange Solutions, said the bill is important because it will hold firms and their employees to account, with serious consequences for those found guilty.

He added the bill actually represents an opportunity for businesses to "open the cupboard" and change risk into real business value.

"By taking a more proactive approach, and reviewing and re-engineering their businesses, companies can reduce the likelihood of share price volatility, deliver business confidence in managing risk in new supply channels and markets, and reduce the risk of disruption, and unbudgeted resources and expenses," Mr Burbidge-King added.

According to PricewaterhouseCoopers, UK firms are increasingly facing the threat of accounting fraud as the recession ensues.

Posted by Jenny Arthur

Hirers warned about applicant CV lies

Thu, 19 Nov 2009 14:46:19 GMT

Almost seven out of ten employees questioned in a recent survey claimed they had lied in some way to secure their current job.

The research, conducted by recruitment agency review site Hirescores.com, highlights the dangers faced by employers who fail to carry out CV checks and pre-employment screening.

Of those who admitted to embellishing their CV during the application process, 36 per cent said they had lied about their referee.

More than half of those in question used a family member as a false reference, while a quarter asked their best friend to be an accomplice.

Almost one in three interviewees said they had been forced to falsify details because they left their previous place of work on bad terms.

A quarter of those who lied said that they had altered a secondary education qualification, while 50 per cent failed to tell the truth about hobbies and achievements.

Lisette Howlett, managing director of Hirescores.com, claimed that many people have lied to get a job in the past, and the current statistics show that people are still doing so.

She added: "I can see why people would consider lying, as in this economic situation jobs are few and far between, but by lying in the present you could end up jeopardising things in the future if you are caught."

Screening firm Powerchex recently warned that the recession has encouraged more jobseekers to embellish their CVs.

Posted by Jenny Arthur

Treasury Select Committee against EU supervisory powers

Thu, 19 Nov 2009 14:43:19 GMT

The Treasury Select Committee has expressed concerns about plans to increase European Union (EU) supervisory powers over financial services firms in member states.

According to the parliamentary body, the UK's financial responsibility could be undermined if the European Commission proposal gets the go-ahead.

Commission president Jose Manuel Barroso proposed the forming of a European Systemic Risk Board (ESRB), with the remit of flagging up risks within financial systems across Europe.

The creation of the European System of Financial Supervisors (ESFS), which would consist of national overseers, has also been advised, along with new European Supervisory Authorities for the banking, securities and insurance and occupational pensions sectors.

Under the plans, these bodies would be granted power to overrule regulators of national standing.

The select committee expressed apprehension over the composition of the ESRB, and unease at the apparent defiance of a statement made by the Economic and Financial Affairs Council.

Back in June, it commented that EU bodies "should not impinge on the fiscal responsibilities of the member states".

However, Michael Baxter, an economics analyst at Investment and Business News, disagreed with the Treasury Select Committee objections.

"You can't say that you are not going to implement changes because it will cause problems to the UK, but then complain when the European Commission tries to implement changes that will apply to every state," he stated.

Mr Baxter said the committee could not "have its cake and eat it" over banking regulation.

Posted by Sarah Parish

Poor customer service continues to cost businesses

Thu, 19 Nov 2009 14:40:19 GMT

Poor customer service costs firms a combined £200 billion per year, across 16 industrialised nations including the UK, a new study has indicated.

Significant income losses stem from abandoned transactions, brought about by below-par service, according to Genesys Telecommunications.

The hardest hit industries across all countries surveyed are financial services, cable and satellite TV providers, and telecommunications firms.

Genesys defined losses as being instances where a transaction is taken to a competitor or abandoned entirely.

According to the study, the most common reasons customers choose to switch provider are a dislike for automated self-service technology, long waiting times, being forced to repeat themselves and communicating with under-skilled employees.

"With the rise of social media and increased consumer awareness, the cost of customer frustration continues to grow," explained Daniel Hong, lead analyst of customer interaction at analyst firm Ovum, which carried out the study.

He said firms were being advised to develop cohesive strategies that straddle all channels of customer communication.

"The difference between delivering exceptional customer service and merely providing acceptable service is pronounced," Mr Hong added.

Jo Causon, chief executive of the National Institute of Customer Service, recently highlighted the importance of ensuring a positive consumer experience, claiming this to be "the vital differentiator in business today".

Posted by Steve Williams

IT security more important than ever

Wed, 18 Nov 2009 13:30:18 GMT

Some 70 per cent of consumers are now purchasing items online, compared to 61 per cent in 2007, a new report has indicated.

According to Get Safe Online's annual publication, there has been an increase in internet usage and security awareness this year.

The proportion of people who use different login names to access password-protected sites has increased, the study showed.

Some 33 per cent of people said they now used multiple passwords online, compared to 31 per cent in 2007.

Garreth Griffith, head of UK risk management at PayPal, said he was reassured by the numbers in the report.

"They're going in the right direction in general," he stated.

"People are protecting themselves more, protecting their machines more [and are] more likely to behave safer on the internet. But I think there is a long way to go."

Mr Griffith said that IT security was especially important with people doing more and more online, adding that it is vital that nothing bad happens to ruin consumers' "love affair" with the internet.

Get Safe Online has reported that 60 per cent of people now use the internet for financial management – including banking and paying bills – compared to just 47 per cent just two years ago.

Posted by Jenny Arthur

Online video can boost SEO ranking

Wed, 18 Nov 2009 13:29:18 GMT

Businesses can drive more traffic to their websites by using video content, it has been claimed.

According to leading media consultancy Elemental, hosting video can improve a company's search engine optimisation performance, potentially enabling it to attract new customers and drive revenue.

Rachel Hawkes, account director at the company, said video content should feature throughout a website but should stem from a centralised source to facilitate easier back-to-back viewing.

She added: "Video should not just appear on one page of a website, but on all relevant pages: from the home page, to the brand page, product pages and company blog."

Ms Hawkes said that by adding keyword tags to each video, they can serve as a cross-sell up-sell tool – linking to content advertising similar products and services.

"Any business looking to adopt video into their marketing portfolio should make it standard practice to show text descriptions next to the videos," she added.

"Text and video will seed well into search engines, providing businesses with effective content to help drive search engine optimisation."

Some 33 per cent of marketers interviewed by the European Interactive Advertising Association recently claimed that their use of online video advertising is increasing.

Posted by Alex Boardman

CEBR expects further output fall in 2010

Wed, 18 Nov 2009 13:26:18 GMT

The UK economy could weaken once again early next year, with a 'W' shape recovery predicted from the current recession.

According to the Centre for Economics and Business Research (CEBR), economic prospects for the new year are now "not so bright".

It claims the fourth quarter of 2009 is expected to represent a deceptively strong bounce, following the disappointing gross domestic product figures of the previous three months.

"Business to business look OK, exports may be picking up a little, but disposable incomes are likely to be squeezed again," CEBR's chief executive Douglas McWilliams said.

He claimed that the plan to reverse the VAT cut - which has been helpful in sustaining consumer spending in the UK – on January 1st 2010 could prove to be a mistake.

Mc McWilliams added: "With business investment still on the backburner; government spending stymied by the run up to the election (which will put some major projects on hold) and no further boost from the end of destocking, it is quite likely that economic growth will stutter in early 2010."

A 'W' shape is well within the margins of forecasting error, he commented.

The current recession has now lasted for six consecutive quarters, the longest since records commenced in 1955.

Posted by Sarah Parish

Cloud computing offers green benefits

Tue, 17 Nov 2009 12:36:17 GMT

Cloud computing could potentially help businesses make their IT setup energy efficient, it has been claimed.

According to 451 Group research director Andy Lawrence, cloud computing "really suits energy efficiency" but those who provide it are going to come under pressure to prove this point.

He said that providing evidence of their green potential remains a key challenge for cloud providers, as none are currently able to do so effectively.

Mr Lawrence added that cloud computing is considered "the big IT trend of the decade" and one that is partially being driven by eco IT concerns because the model really suits energy efficiency.

He added: "It suits financial prudence and it reduces capital expenditure. Also, if you look at the architecture, they are very suited to buying little bits of IT and adding them on the end of data centres. That's a very energy efficient way of building data centres."

Last week, Deloitte Consulting principal Mark White claimed that cloud computing will be "a transformative technology" in the IT industry and can drive financial benefits.

Executives think the cloud can be useful for certain kinds of enterprise services, helping to drive efficiencies and productivity, he suggested.

Posted by Dan Smith

Banker bonus deals could be torn up

Tue, 17 Nov 2009 12:33:17 GMT

The Financial Services Authority (FSA) will be given powers to "tear up" contractual agreements granting bankers "ludicrous bonuses", it has been reported.

Chancellor Alistair Darling told the Sunday Telegraph that the legislative powers will be announced in the Queen's Speech this week.

The City watchdog will be allowed to fine banks and stop finance professionals from receiving payments if the awards would cause instability in the financial system.

However, the financial services bill will not be retroactive, meaning the FSA will be unable to prevent bonuses this Christmas.

Mr Darling said the legislation was part of the government's plans to make bankers see themselves as "fellow citizens".

He added: "Bonuses have been a symptom of the excessive behaviour of some banks over the last few years and even over the last few months.

"[We will be] giving the FSA powers if necessary to tear up contracts that would result in payments being made that would cause instability."

The chancellor said he was not against people being given incentives to work hard, but said greater powers were needed to avoid abuses of the system.

Jon Terry, partner and head of reward at PricewaterhouseCoopers, has warned that this new financial services bill could potentially take attention away from the sector's main area of concern – reducing risk.

Posted by Sarah Parish

HSE warns employers over compulsory insurance

Tue, 17 Nov 2009 12:33:17 GMT

Employers have been reminded of the need to purchase compulsory insurance cover.

Andrew Saunders, a Health and Safety Executive (HSE) inspector, said business owners and directors should be aware of how seriously the institution takes this issue.

He was commenting after a Cambridgeshire retailer was fined £1,000 for failing to have compulsory insurance to protect his employees.

Dipak Kumar Kantial Solanki, who owns Melbourn Stores in Melbourn, was asked to produce a current Employers' Liability Compulsory Insurance certificate when an Environmental Health Officer visited the store in April 2009.

He failed to present the necessary documentation and was issued with a "notice to produce" by the HSE, but was still unable to meet the requirement.

The HSE will take action against those who fail to comply with insurance requirements, Mr Saunders added.

He added: "Employers' Liability Compulsory Insurance is designed to protect employees and ensure they are covered if there is an accident in the workplace.

"Failing to have this insurance potentially leaves members of staff doubly vulnerable in the event of an accident or ill health."

The HSE recently warned employers to ensure they take measures to protect employees working at height.

Posted by Alex Boardman

Enterprise resource planning investment essential

Mon, 16 Nov 2009 12:40:16 GMT

Companies cannot afford to put off investing in enterprise resource planning (ERP), it has been suggested.

According to the National Computing Centre (NCC), firms which fail to invest in this vital area during the recession risk falling behind their industry rivals.

The IT membership and research organisation claimed last week that the current economic situation is having "a major impact" on investment in ERP and enterprise systems.

In 24 per cent of organisations, all future ERP and enterprise software projects are on hold, while 41 per cent are seeing them postponed, the NCC said.

This compares to 29 per cent of companies which are not experiencing any cutbacks and six per cent who are spending more on enterprise applications.

Michael Dean, director of advisory services at the NCC, said that in the long run, businesses postponing ERP projects "will have a higher hurdle to jump".

However, he added that businesses looking to cut costs due to the recession may still be able to afford to invest in ERP because the availability of ERP as Software-as-a-Service will enable organisations to reduce set-up costs.

The key to implementing enterprise resource planning is to stay focused on the big picture - future payoffs that include more efficient business processes and substantial cost savings for the company – according to software and services provider Consona.

Posted by Alex Boardman

IT systems can help reduce energy use

Mon, 16 Nov 2009 12:38:16 GMT

IT can play a key role in businesses as they prepare to reduce energy usage in their buildings, it has been claimed.

According to Nick Robinson, technical operation lead at the networking and communications giant Cisco, adopting green IT can help companies limit their electricity consumption.

He claimed that while it is "pretty difficult" for companies to monitor and control energy use, IT can provide the facility for them to do so.

Mr Robinson said that integrating technology with building management systems can have "a massive impact" on how buildings consume energy.

With the government planning to introduce a mandatory emissions trading scheme next April, this could be crucial, he added.

"Organisations are going to be stack ranked against how they are performing against the various metrics the government is recruiting," Mr Robinson explained.

"Obviously, if you are advertising yourself as being a green business or organisation, you don't want to be appearing at the bottom of that list."

The Carbon Reduction Commitment Energy Efficiency Scheme is central to the UK's strategy for reducing carbon dioxide emissions, as set out in the Climate Change Act 2008.

Posted by Jenny Arthur

CML reports September mortgage rise

Mon, 16 Nov 2009 12:36:16 GMT

The number of mortgages given to buyers rose for the third month in a row during September, according to the Council of Mortgage Lenders (CML).

Latest figures indicate that first-time buyers contributed to a large proportion of the new mortgages lent out.

There was a two per cent increase in the number of loans for home buying from August to September, at 50,600 - a 43 per cent rise on the same time period last year.

A contributing factor is believed to have been the temporary £175,000 nil-rate margin applied by the government.

However, the CML data also conveys the lack of available mortgages, particularly among those first-time buyers lacking parental support.

Helen Adams, managing director of FirstRungNow, said: "It is still the ones without a deposit. There aren't many first-time buyers with that kind of money.

"Lenders are still scared - they are hardly lending to first-time buyers at all, and if so; require a big deposit."

According to moneysupermarket.com, reports of continued growth in mortgage lending are "a sure sign" that the wheels of the housing market are turning again.

Posted by Alex Boardman

Guide author highlights Windows 7 popularity

Fri, 13 Nov 2009 12:07:13 GMT

Windows 7 is attractive to businesses and consumers because it possesses features they both want, according to one technology commentator.

Simon May, author of The Rough Guide to Windows 7, said the operating system has proved something of a hit since its launch last month.

Businesses appreciate that Windows 7 is relatively easy for them to roll out, with those with hardware from this century able to run it with only minor, cost effective upgrades, he added.

Mr May added: "Their people will appreciate features like DirectAccess that give easier and more secure remote access so they can work from home more effectively."

Meanwhile, the author said home consumers love the system's media features.

He added that more formats of video can be played with "less fuss", saying: "Right out of the box Windows 7 will let consumers stream their entire media collection from their home PC anywhere in the world, safely and legally."

Last week, research conducted by the NPD Group showed that initial sales of Windows 7 surpassed those of the system's predecessor Vista during its first few days of release.

Posted by Alex Boardman

CRM technology driving SaaS market

Fri, 13 Nov 2009 12:06:13 GMT

Customer relationship management software (CRM) is a key driver in the Software-as-a-Service (SaaS) market, according to a new study.

Research company Gartner reported this week that CRM is responsible for £1.37 billion of the total £4.47 billion revenue that the worldwide SaaS market generates each year.

It predicts that the market will show consistent growth through 2010, when worldwide SaaS revenue will total over £8.34 billion for the enterprise application markets.

Rob Widdicombe, managing director of Canonbury Services, claimed that more companies are realising that they need to keep in touch with clients and match actions with their expectations.

Consequently, the days of being able to do CRM "on the back of an envelope" are long gone, he suggested.

Mr Widdicombe added: "Anyone who deals with customers will have a need for CRM, so that means everyone. The market has matured a lot in the last ten years, from being very new and something which not many people had.

"Ten years ago you saw banks being very into it, now it has filtered down to a lot of companies of all sizes."

Jo Causon, chief executive of the National Institute of Customer Service, recently described customer experience as "the vital differentiator" in business today.

Posted by Jenny Arthur

Kelkoo reports further online retail growth

Fri, 13 Nov 2009 12:04:13 GMT

A new study has indicated that online retail sales have continued to increase in the UK this year.

Research conducted by shopping comparison site Kelkoo shows that the ecommerce market is now worth £44.7 billion, with volumes rising by 1.9 per cent over the last 12 months.

This additional value of £832 million may encourage more companies to expand into the online environment, the study suggested.

Kelkoo found that online sales have increased "dramatically" in the past decade – rising from £31 million at the millennium to an estimated £8.9 billion this Christmas.

Bruce Fair, the firm's managing director, claimed that the peak weeks of Christmas trading are "vitally important" to retailers.

Many of them earn up to 60 per cent of their profits during this period, he stated.

"The retail industry is seen by economists as a leading indicator of economic trends and results this Christmas will prove critical in stimulating retail growth and aiding the nation's economic recovery as a whole," Mr Fair added.

According to Richard Perks, director of retail research at Mintel, trading conditions could deteriorate in 2010 when the general election has taken place.

He recently claimed that interest rates and taxes are likely to increase as the new government looks to reduce its public deficit.

Posted by Steve Williams

Prudential says more workers to continue beyond 65

Thu, 12 Nov 2009 12:13:12 GMT

The number of people working beyond retirement age is expected to double in the next ten years, according to a new study.

Research conducted by Prudential shows that businesses in the UK are expecting the number of staff delaying retirement to reach 1.8 million by 2019 – 6.3 per cent of the UK workforce.

Larger companies expect to see an even greater proportion of their employees working beyond retirement, with more than a third of finance directors at larger firms expecting to have to accommodate such requests.

Commenting on the statistics, Andrew Harrop, head of policy at Age Concern and Help the Aged, said the number of professionals working past state pension age is bound to increase further as people live longer and healthier lives.

He added: "Working into later life will bring many benefits to our economy and to the individual, but this will only be achieved if employers are willing to adapt to older workers' changing needs.

"For example, instead of the current retirement cliff-edge, the ability to scale-down hours gradually towards retirement would be helpful."

Mr Harrop added that the government needs to scrap the Default Retirement Age to leave older workers free to plan their retirement in their own time.

Most firms neglecting equal pay considerations

Thu, 12 Nov 2009 12:07:12 GMT

Just one in five private sector employers measures the gender pay gap in their business, it has been claimed.

According to the autumn 2009 Labour Market Outlook conducted by the Chartered Institute of Personnel and Development (CIPD) and KPMG, public sector organisations could also be doing more to ensure equality.

Despite equal pay monitoring being a statutory requirement among government-funded bodies, two in five employers complete audits merely "to tick the necessary bureaucratic box", the report stated.

This is opposed to the measure being part of an underlying effort to advance gender equality, it added.

Dianah Worman, CIPD diversity adviser, said the government faces an uphill struggle in its efforts to change employer attitude, judging by the survey results.

She added: "The findings overall suggest that compulsory pay audits are at best a blunt instrument for promoting effective action on closing the gender pay gap.

"[They] highlight the need for government to instead focus on helping employers in all sectors understand the business benefits of tackling unfair treatment on pay."

The Trades Union Congress reported in April that the gender pay gap currently stands at 17.1 per cent in the UK.

Public confidence rising over economy

Thu, 12 Nov 2009 12:05:12 GMT

The British public are increasingly positive about the state of the economy, according to a new study.

Populus has reported in the Times that optimism has reached its highest point in 18 months, but a third of people still think the economic outlook for the UK could be better over the next year.

Some 50 per cent of the 1,502 adults surveyed think they "will do well" in the next 12 months, up from 46 per cent in July.

Women are more pessimistic than men, and those living in the south-east of England are twice as optimistic as in the Midlands, Wales and the south-west.

Meanwhile, middle-class people are also more optimistic than unskilled workers, though the gap has narrowed since July.

Last month the Office for National Statistics reported that gross domestic product fell by 0.4 per cent during the third quarter of the year.

Economists had been predicting a rise of at least 0.1 per cent, which would have been enough to pull the UK out of recession.

A technical recession is defined by two successive quarters of economic contraction.

Energy firm calls for green technology investment

Wed, 11 Nov 2009 14:15:11 GMT

Green technology is not only a key area for the future but something firms can invest in now to improve their operations and environmental credentials, it has been claimed.

A spokesperson for AlertMe, the Smart Meter provider, said there is a lot firms can do to lower their carbon footprint now.

She claimed there is technology available that consumers and businesses can use to make changes, but also "a lot of room for innovation".

The spokesperson claimed that green IT and technology is a topic "that everyone is interested in", but firms need to take affirmative action to reap its benefits.

"In many cases the changes people can make to reduce their carbon footprint also save them money, so there's a double benefit," she added.

"For this reason, we do believe that there will continue to be a wave of innovative new clean technologies reaching the market."

Rakesh Kumar, research vice-president at Gartner, recently claimed that businesses must start to take more of an active interest in green IT development if they are to reduce energy costs and meet compliance requirements.

His firm had reported that many companies are failing to pay sufficient attention to the process of measuring, monitoring and modelling energy use in data centres.

Worker sues firm for constructive dismissal

Wed, 11 Nov 2009 14:13:11 GMT

A company owner is being sued for £4 million in a constructive dismissal case, it has been reported.

Jordan Wimmer, 29, is seeking damages from her former employer Nomos Capital after claiming to have been forced out of her £500,000-a-year job.

As a marketing executive at the Mayfair-based finance firm, she was responsible for acting as a go-between for investors and multi-million pound hedge funds.

However, Ms Wimmer told an employment tribunal that her position had become untenable due to harassment from the firm's founder and owner Mark Lowe.

She reported that her former boss told rude and illicit jokes, took her and another female employee to a strip club and brought prostitutes to business meetings.

Canadian national Ms Wimmer claimed her treatment brought about depression, which forced her to leave her role at the now-liquidated company.

She is suing Mr Lowe and Nomos Capital for sex discrimination, unlawful deduction of wages, unfair constructive dismissal and disability discrimination.

"This past year has been the worst of my life. It has been like a black hole that I cannot get out of," she added.

Last month, Ben Wilmott, senior public policy adviser for the Chartered Institute of Personnel and Development, warned employers to ensure employees are aware of their behavioural responsibilities at the Christmas party.

Funding reform needed for training schemes

Wed, 11 Nov 2009 14:12:11 GMT

The government must reform the funding of adult skills and training support, it has been claimed.

According to the Confederation of British Industry (CBI), such a move is needed to increase UK competitiveness and help people find and hold onto jobs during the recession.

The business group says that by cutting back on non-essential training courses, redirecting some surplus funds away from basic skills provision and tackling shortcomings in areas such as science, technology and engineering, firms across the UK could benefit.

Susan Anderson, director of the CBI education and skills policy, said the government must put the £4 billion of public money it spends on adult skills to "more effective use", especially when there is pressure on public finances and business competitiveness.

"Tough choices need to be made. Public spending must be focused on the valuable skills that will drive growth and employment prospects," she added.

"Raising workforce skills relies on a partnership between the government, employers and employees. But firms need a much simpler, more flexible system of public funding to help develop higher level skills."

Earlier this week, Ofsted reported that skills training remains crucial for firms seeking to drive revenue, despite the recession.

PayPal warns of ecommerce security risks

Wed, 11 Nov 2009 14:10:11 GMT

Consumers have been urged to ensure their online safety if using the internet to shop for goods this Christmas.

Web payment firm PayPal claims that over 27 million people in Britain will be buying gifts on the internet this year, but some will take unnecessary risks as they do so.

The company reports that only one in seven consumers will check they are buying from a trusted website or brands, while three in four will simply look for the lowest price regardless of the dangers.

Just six in ten shoppers look for the padlock icon, indicating that the website is secure, it is reported.

In addition, two thirds of shoppers fail to check if a retailer offers an offline address or customer services number before making a purchase.

Garreth Griffith, head of risk and security at PayPal, said: "Shoppers will be able to get some great bargains online this Christmas but there is no need to sacrifice security in the hunt for a great deal.

"There are some simple steps to safe shopping online and if the deal looks like it is too good to be true then just take a minute or two to check it out."

Last week, David Smith, director of operations for IMG, claimed that the online retail market is continuing to grow.

Socially engineered hacking 'on the rise'

Tue, 10 Nov 2009 15:00:10 GMT

Socially engineered virus-carriers are on the rise, according to one security firm.

In a blog posting, Sophos security expert Graham Cluley highlighted the danger of such virus exploits - generally virus-laden emails, which masquerade as legitimate messages from potential lovers or new friends.

Mark Fullbrook, director of UK and Ireland for security experts Cyber-Ark Software, said that, contrary to common knowledge, IT security is not a total solution.

He stated: "IT infrastructure is like a bank. You walk in and there are different levels of security."

Users should adopt a 'vault' solution, allowing them to have "a very secure repository" for important information, while still having a general area to work in, he explained.

Mr Fullbrook said: "There is nothing more secure than a machine that is not connected to the network, but unfortunately that's not the environment we're working with. People need to exchange information."

According to a recent report by WatchGuard Technologies, socially engineered hacks are particularly effective because of the 'trusted' environment they take place in.

Economist says UK experiencing market recovery

Tue, 10 Nov 2009 14:57:10 GMT

There is little doubt that the economy is on the road to recovery, one finance expert has claimed.

According to Hetal Mehta, senior economic advisor to the Ernst & Young ITEM Club, the worst of the recession has definitely passed given the size of the output falls seen at the beginning of last year.

She said that the latest gross domestic product figures – which indicated a 0.4 per cent economic contraction during the third quarter of the year – were likely to be revised upwards.

"Whether it shows that we were out of recession in Q3 or not, it is just a technicality really," Ms Metha stated.

"Essentially it is still either small growth or a small contraction. I do think that going forward we will probably see GDP increase in Q4 - I would like to say it was a dead cert but people were proved wrong in Q3."

She said the momentum in the economy seems to be upwards at least, adding that people will be bringing forward some of their spending ahead of the VAT rise.

"[We are] seeing a recovery but it is not going to be particularly rapid - growth will be quite slow," Ms Mehta added.

Last week, the Bank of England froze interest rates at 0.5 per cent and extended its quantitative easing programme by a further £25 billion.

Tax guide highlights benefits of donating

Tue, 10 Nov 2009 14:56:10 GMT

A new guide which sets out the tax advantages for businesses to give to charity has been launched by minister for the Cabinet Office Tessa Jowell.

Entitled A Guide to Giving for Business, the document aims to be a comprehensive guide, illustrating the benefits of making donations.

Phil Perry, director of Ark Financial Planning, said that any measure which gives businesses a tax advantage is "always going to be beneficial", irrespective of the size or scale of the enterprise.

He commented that people would much rather pay to a charity than they would to the tax man.

Mr Parry added: "Provided it doesn't cause any issues from a business perspective, or cause any loss of income and is for the right reasons - obviously it will always be an advantage."

Referring to the guide, he said there was benefit to any publication which raises awareness of ways to save on tax, especially as many businesses are not aware of their options in this area.

The Treasury guide recognises that the private sector can contribute to the aims and objectives of charities in different ways, such as giving money, donating shares or equipment, or working in partnership with a third sector organisation through employee volunteering or secondments.

Ofsted says training remains vital during recession

Mon, 09 Nov 2009 12:41:09 GMT

Investing in improving employee skills is crucial in helping firms to compete in a tough economic environment, it has been claimed.

An Ofsted spokesperson said worker training is always important, but the recession has showed the true worth of professional development programmes.

He was commenting after the organisation found that the government's Train to Gain scheme offers employees the chance to earn qualifications and progress, enhancing motivation in the workplace.

The spokesperson said the programme continues to improve employees' knowledge and self-confidence at work, with many employers reporting improvements in work practice and staff retention.

It is important that staff get the opportunity to move on to more advanced training and the chance to achieve higher level vocational skills at the equivalent of A level, he added.

"Our report found employers valued their employees' additional skills and benefited from reduced staff turnover and improved work practices," the spokesperson said.

"Some employers identified financial savings, with an impact on their 'bottom line', while others reported benefits from improved customer service and reductions in customer complaints."

According to the National Institute of Adult Continuing Education, the proportion of adults currently learning, or having done so in the last three years, rose by one per cent this year to 39 per cent.

TUC calls for wholesale banking reform

Mon, 09 Nov 2009 12:38:09 GMT

Regulation of the international finance system must lead to a new global economy that puts people and the planet first, according to the Trades Union Congress (TUC).

Speaking at the TUC event Recovery Towards What? Finance, Justice and Sustainability, general secretary Brendan Barber said there remains an overwhelming case for reform of the global financial system.

He claimed that while the UK had been spared from the prospect of an "economic nuclear winter", the underlying causes of last year's crisis remain "essentially unresolved" and without real change, a repeat could easily be on the cards in the future.

Mr Barber commented: "With Britain still in recession, we need to build a very different financial system, one more stable, responsible and responsive to the needs of the real economy.

"Commitments were made by the G20 at the London and Pittsburgh Summits, but plans to re-regulate global finance still fall far short of what is needed to prevent another catastrophic speculative bubble in the future."

He called for proper regulation of both the banks and the shadow banking system, including a "determined crackdown" on obscene bonuses, a fairer tax system for taxpayers and workers, and reform of international financial institutions.

Mr Barber said the activities of banks, hedge funds, and debt traders must all be brought within the scope of mainstream regulation, as the government "gets to grips" with the main causes of the crash - the "close interplay" between risky behaviour and the pursuit of bonuses.

The TUC provides a voice for trade unions representing over six million workers in the UK employment market.

Executives aware of cloud computing potential

Mon, 09 Nov 2009 12:37:09 GMT

Cloud computing will be "a transformative technology" in the IT industry and can drive financial benefits, business leaders believe.

This is one of the main findings of a new study conducted by professional services firm Deloitte, during a recent webcast exploring the growth of the sector.

At the very least, executives think the cloud can be useful for certain kinds of enterprise services, helping to drive efficiencies and productivity, the study suggested.

Deloitte Consulting principal Mark White, the webcast moderator, said adoption and demand for cloud services is growing as companies see "a real revolution" happening on the business side.

He added: "Expectations for agility and flexibility in business operations have grown in response to the downturn, and in preparation for what comes next.

"Cloud services create the possibility of rapid business model innovation, improved service levels and new ways of controlling costs."

Mr White said that business leaders responding to the poll believed that they can also realise financial benefits, including reduced capital expenditures, through the use of the technology.

Last week, David Cottingham of ComputerWorld urged firms to work with a specialist partner when introducing cloud technology.

IT spending falls in 2009 but recovery expected

Mon, 09 Nov 2009 12:35:09 GMT

Worldwide IT spending is due for a fall of 6.8 per cent in 2009, according to a new report by Gartner.

IT spending in 2009 is projected to total $2.28 trillion (£1.37 trillion), down 6.8 per cent on 2008, the research company said.

Analysts predict the market will return to growth next year, when it will grow at 2.3 per cent to reach $2.34 trillion (£1.40 trillion).

It claimed that within the three largest industry segments for IT - financial services, manufacturing and government - the least affected market has been national and international public procurement, with a drop of only 3.6 per cent.

Dan Joe Barry, vice-president of marketing at network-adapter developer Napatech, commented that in the last year, there is "no question" that the growth line in the sector has been lower than originally anticipated.

However, he explained that his firm was still expanding, achieving profitability and moving forwards despite the recession.

"I think what's happened since the start of quarter three people are realising that things are growing again. So, you know, I think they came out of their foxholes. Networks are still growing. Bandwidth is still growing," he stated.

Gartner recently called on businesses to embrace context-aware computing in order to help them improve the efficiency of their operations.

Firms urged to use resources efficiently

Fri, 06 Nov 2009 12:32:06 GMT

Efficient resource usage could save up to 254 million tonnes of carbon emissions over the next ten years, a new report has indicated.

The Waste & Resources Action Programme (Wrap) claims that by making better use of natural resources, businesses and consumers could contribute as much as ten per cent of the target reduction in UK domestic greenhouse gas emissions by 2020.

Caroline Laitner, a spokesperson for Waste Watch, said that as a nation, we throw too much away and the best way to prevent this is to cut out the waste at source.

She noted that manufacturers and producers' decisions are driven by consumer pressures, but said they could still contribute to greater carbon efficiency.

Ms Laitner said that as consumers shout and scream that they want greener products, firms will do more to improve their environmental performance.

And simply by taking more care over issues such as wrapping and boxing – for example ensuring items are protected but not over-packaged – resources can be saved, she noted.

"It's really important that we educate people around these issues so that they can make informed choices," Ms Laitner said.

Earlier this week, leading confectioner Cadbury announced it was replacing tins with sustainably-sourced cardboard packaging, achieving a 45 per cent weight reduction and saving more than 200 tonnes of steel.

PMI index offers positive services outlook

Fri, 06 Nov 2009 12:29:06 GMT

The services sector showed further signs of a strong recovery last month, with a leading indicator providing its most positive results since September 2007.

According to the Chartered Institute of Purchasing and Supply/Markit Purchasing Managers' Index (PMI) for UK services, growth in activity and new business reached its highest level in two years.

The headline index saw an above-average increase to 56.9 – comfortably higher than the neutral level of 50 which indicates growth.

Benjamin Williamson, economist at the Centre for Economics and Business Research, said he believed that, despite official estimates, the PMIs indicate the UK is on the way to recovery.

Explaining his confidence, he stated that the PMI traditionally has been and continues to be a good indicator of economic growth.

"A less good indicator of economic growth is actually the preliminary estimate [of gross domestic product]," Mr Williamson stated.

"The PMI does tend to reflect what's going on – it's got a good correlation with output data."

Earlier this week, the manufacturing PMI also read at above 50, as growth in output and new orders regained momentum.

The seasonally adjusted PMI posted a reading of 53.7 in October, up by 3.8 points on September's revised figure of 49.9 – the third largest rise on record.

Virtualisation slowly taking off among businesses

Fri, 06 Nov 2009 12:28:06 GMT

Businesses are increasingly looking to virtualise their IT operations, but this change will not happen overnight, it has been claimed.

According to Martin Harris, director of product management at Platform Computing, it will take time for companies across all sectors to commit themselves fully to the technology.

He was commenting after emerging business technologies firm Nemertes Research claimed that enterprises are adopting virtualisation at a swifter pace than ever before.

Ted Ritter, senior research analyst at the firm, said over 90 per cent of the organisations that participated in its benchmark study were embracing the technology.

Mr Harris explained that even experienced virtualisation users "need additional management tools to address the new layers of control and cost issues that come up" when adopting the technology.

"In general we will see more applications being virtualised, and the analyst community especially – the Gartner's, the Forrester's of the world – certainly believe that," he stated.

"What we are seeing, though, is that it will take some time and that most organisations are looking to build private cloud environments, whether for test/development or across the organisation, to be able to support applications that are virtualised or not."

Firms that use server virtualisation need to manage the technology together with physical systems, according to ASG Software Solutions' senior director Ed Hallock.

Bank confirms quantitative easing extension

Fri, 06 Nov 2009 11:04:06 GMT

The Bank of England has acted as expected by increasing its quantitative easing programme by £25 billion.

Following the November meeting of the Monetary Policy Committee (MPC), it was announced that the programme of asset purchases financed by the issuance of central bank reserves had been extended to a total of £200 billion.

There were no surprises where interest rates are concerned either, as the MPC decided to hold them at their historic low of 0.5 per cent for a ninth month in succession.

Explaining the moves, the committee said that while the world economy has shown signs of recovery, global activity as a whole remains "significantly depressed".

It added that although asset prices have risen internationally since the spring and banks' funding conditions have improved, conditions "remain fragile".

The Bank said economic output and inflation levels were being influenced by two opposing factors – the stimulus measures being carried out and the continued lack of available credit.

A statement read: "In order to keep inflation on track to meet the two per cent inflation target over the medium term, the committee judged that maintaining bank rate at 0.5 per cent was appropriate.

"The committee also agreed that it should extend its programme of purchases of government and corporate debt by £25 billion to a total of £200 billion."

Earlier this week, Vicky Redwood, UK economist at the research consultancy firm Capital Economics, predicted this precise course of action.

Expert advice helps with cloud selection and deployment

Thu, 05 Nov 2009 14:44:05 GMT

Firms considering moving to the cloud should seek external expert advice before committing to such a move, it has been claimed.

According to David Cottingham of ComputerWorld, there is still a lot of hype surrounding the technology, making it difficult at times to differentiate between fact and opinion.

Consequently, seeking relevant information is a must, he claimed, as firms need to establish their exact position if they are to maximise the benefits of the technology.

Firms should be approaching this task with the specifics of their own company in mind, Mr Cottingham suggested, as each company is different and has its own IT requirements.

Mr Cottingham said: "Your best option is to seek the advice of a vendor-neutral provider that can suggest a custom solution incorporating best-fit elements to address your needs."

A study from IT firm Symantec recently suggested that many firms were considering investing in cloud computing in order to improve their own green credentials.

Commenting on the findings, the firm's vice-president of global solutions Jose Iglesias told ARN that many companies believe they pass on a large part of their carbon footprint to the provider when embracing this model.

PwC warns midmarket firms to focus on customer value

Thu, 05 Nov 2009 14:42:05 GMT

Midmarket retailers may need to place a greater focus on providing customer value in the future, based upon current shopping trends, it has been claimed.

According to a new study conducted by PricewaterhouseCoopers (PwC), the downturn has brought about a change in the way consumers perceive 'value' and spend money.

The report claims that over 70 per cent of consumers who have traded down to lower-priced items for some or all of their groceries, and 60 per cent who have done so for clothing, will continue to spend less when growth is restored to the economy.

Indeed, 78 per cent who have bought cheaper grocery brands believe they have received the same or better value from such products.

Mark Hudson, retail and consumer sector leader at PwC, said the last recession sparked "the birth of the value sector", which now makes up around 25 per cent of the total retail market.

"This recession is fortifying the concept of value and firmly establishing it in the consumer's psyche," he added.

"Competitors in the premium and midmarket are banking on consumers trading back up when times improve, but the value sector will continue to thrive, because customers have sampled what it has to offer, and they like what they have seen."

In many consumers' minds, cheap "no longer means nasty", Mr Hudson suggested.

Back in June, budget high-street retailer Poundland reported a 47 per cent rise in annual profits for the 2008-09 financial year.

Business plans vital for all growing firms

Thu, 05 Nov 2009 14:41:05 GMT

A good working business plan is even more important to firms during periods of economic difficulty, it has been claimed.

According to UK Business Advisors (UKBA), growth strategies provide the foundation for all the operations of the company and keep activities on track towards recognised measurable targets.

The organisation said good plans will include a vision of future aspirations, a company mission, defined objectives for the business, and a detailed action plan.

However, it is important to avoid a one-size-fits-all approach that some agencies offer, UKBA claimed, as each company works under a set of conditions that are specific to them alone.

Brian Dash, chair of UKBA said: "We know the value of a good business plan in helping a company set its objectives and move forward in a measured way.

"However, it is vital that it is not just something done once and stuck in a drawer. It must be regularly reviewed, preferably in conjunction with an expert not connected with the day-to-day running of the business."

Writing for AMEinfo.com, Martin Lynch recently claimed that companies are continuing to invest in a range of business intelligence technologies to bolster decision making processes.

BIBA backs compensation scheme review announcement

Thu, 05 Nov 2009 14:39:05 GMT

The Financial Services Authority has confirmed that it will be conducting a review of the Financial Services Compensation Scheme (FSCS).

According to the British Insurance Brokers' Association (BIBA), the city watchdog will look into the ways in which levies are apportioned to different firms.

The announcement will be welcomed by building societies in particular, BIBA spokesperson Rachel Le Brocq said.

"We've always felt that the way the FSCS is structured means that building societies actually pay disproportionately for those institutions that have failed," she stated.

Ms Le Brocq said her association would like to see more of a system that reflects orgainsations' risk structures.

The FSCS scheme currently protects consumers' savings of up to £50,000 in the event of the collapse of their financial institution.

Building societies such as Nationwide have complained previously that the current system is unfair, as it is linked not to the level of risk institutions face, but to a company's share of the retail savings market.

The society's chief executive Graham Beale described this situation as being "illogical and unfair" as it produces a disproportionate outcome for low-risk retail funded institutions, particularly building societies.

IMRG says online retail continuing to grow

Wed, 04 Nov 2009 15:02:04 GMT

Consumers are increasingly looking to the web to make retail purchases, it has been claimed.

David Smith, director of operations for industry membership organisation IMRG, said consumers are using the internet to research and compare prices, as well as make their purchases.

The majority are happy to conduct transactions entirely over the web, he suggested.

"Over the last couple of years consumers have become a lot more savvy with the way that they shop online", Mr Smith added.

"[Developments] like CardSecure are helping with payment issues and people are very confident now in terms of the payment side of things.

He said the changing retail trends are being led by developments in society, noting that people are more at ease with the technology which surrounds them than ever before.

Even so, high street firms stand to benefit as well, Mr Smith suggested, providing they have a website displaying products for sale.

Some consumers are looking online to see where they wish to spend their money, before making their purchases in traditional land-based stores, he claimed.

The latest Consumer Confidence Index, released on November 2nd by market research company Nielsen and the British Retail Consortium, indicated that confidence levels have reached their highest point in 18 months.

RBS and Lloyds to be broken up

Wed, 04 Nov 2009 14:59:04 GMT

Royal Bank of Scotland (RBS) and Lloyds Banking Group are set to sell off hundreds of branches in order to introduce more competition to the sector.

The European Union has demanded the move after the institutions were part-nationalised during the recent banking crisis.

Ministers hope the move will help stimulate consumer activity on the high street, helping the UK to exit recession.

RBS is set to sell 318 branches, while Lloyds is expected to lose over 600 over the next four years.

The latter has also opted out of the government's insurance scheme, instead choosing to raise £21 billion with a £13.5 billion rights issue and a £7.5 billion debt swap.

Both groups will also clamp down on banker remuneration after receiving an additional £30 billion in funding from the government this week.

Board members have agreed to defer bonuses for three years, while only employees who earn over £39,000 per annum will receive additional benefits.

Last month, a group of leading foreign banks agreed to support the implementation of reforms to bankers' pay proposed at the recent G20 summit in Pittsburgh.

Merrill Lynch, Credit Suisse, Goldman Sachs International and JP Morgan were among those that confirmed their commitment to the Financial Services Authority's action on bonus practices.

Email marketing growing in sophistication

Tue, 03 Nov 2009 15:42:03 GMT

Email marketing is an increasingly viable option for firms looking to drive revenue on a budget, it has been suggested.

Industry commentator Carole White explained that the sophistication of the channel has increased dramatically over the last decade, meaning it does not simply involve mounds of spam and irrelevant junk being sent to mailing list subscribers.

Writing for the Newcastle Journal, she said email marketing is now embraced because of its ability to attract customers, not merely to keep advertising costs low.

Ms White described the medium as a key weapon "in an electronic battle" with business competitors.

She said firms are now more aware of the need to send consumer-targeted materials, maximising customer retention.

Companies are able to build the trust of their stakeholders by gathering information on their age, gender, likes and dislikes, and use this analysis as the bedrock of their customer contact strategies, Ms White added.

She said: "Email means that you can divide up your audience into groups according to behaviour and sell them things you know they will like."

According to smartFocus, email marketing is now a more popular channel with consumers than direct mail.

Firms urged to commit to disaster recovery plans

Tue, 03 Nov 2009 15:40:03 GMT

Business continuity planning should be considered an essential task for firms of all sizes, it has been claimed.

Mark Teter, chief technology officer at the Advanced Systems Group, commented that it is too late to take action once a disaster has occurred.

Writing for Computer Technology Review, he said companies need suitably skilled people in the right place, at the right time in the event of fire, flood, hardware failure, theft or other disaster.

Mr Teter added: "Business continuity planning is a serious enterprise business planning initiative on which the very survival of the organisation rides.

"Senior management and employees must be involved and committed to the plan."

He argued that although disaster recovery is an enterprise responsibility, it remains IT's role to make sure every business application has a viable disaster recovery plan in place.

Small business commentator Jennifer Walzer recently told the New York Times that many firms are continuing to operate without taking business continuity precautions.

Since many firms see the plan formation process as being tedious and time-consuming, they are taking risks which could jeopardise the future of their activities, she suggested.

Mobile broadband to be a dominant force

Tue, 03 Nov 2009 15:38:03 GMT

There will be more mobile than fixed-line broadband connections by 2011, a new study has indicated.

Research conducted by mobileSQUARED indicates that there will be 42.7 million mobile broadband connections in use within the next two years across the UK.

This will exceed the anticipated 42.5 million people will have fixed line broadband connections, emphasising the greater mobility businesses and consumers are seeking.

Commenting on the Taking Internet Mobile UK report, Nick Lane, chief analyst at mobileSQUARED, said the medium will act as "the primary access point" for communications by 2011.

"Mobile is always-on, and the average user carries their device for an average of 16 hours a day," he stated.

"So if a company or brand is not already considering how to use mobile, then they need to because their customers are."

Earlier this week, Charles Trotman, head of rural business development at the Country Land and Business Association, told the Daily Telegraph that broadband providers should be legally obliged to provide internet services to those based in rural areas.

He said the government should make it law that "everyone really does have access to 2Mbps services by 2012".

Government announces manufacturing budget boost

Mon, 02 Nov 2009 14:16:02 GMT

Ministers have given further backing to British industry by allocating £40 million for a new manufacturing technology centre (MTC).

Business minister Pat McFadden announced the budget increase for the operation, which aims to improve the perception of the sector and promote the range of careers available within it.

He highlighted the need for an investment in skills as well as new technologies in order for manufacturing to grow in the UK, saying the right expertise will be needed in the right place, at the right time.

Mr McFadden said that Britain has "a great manufacturing future" as well as a great past, but the face of the sector is changing and the government needs to support this process.

This is why the government is helping business and universities collaborate and commercialise new and innovative products and processes, he added.

Commenting on the MTC funding announcement, a spokesperson for the Engineering Employers Federation said: "This is a welcome emphasis on high value manufacturing which is the way forward for our sector.

"Both [the] industry and government has to focus on innovative, high skill manufacturing if we are to rebalance our economy, and support our industrial base and measures such as this will help support this process."

Economist expects quantitative easing extension

Mon, 02 Nov 2009 14:14:02 GMT

The Bank of England Monetary Policy Committee (MPC) is likely to inject more cash into the economy when it meets this month, a leading economist has claimed.

Vicky Redwood, UK economist at the research consultancy firm Capital Economics, believes that the Bank of England will increase its quantitative easing programme in light of the most recent gross domestic product figures.

Last month, the Office for National Statistics surprised many commentators by announcing a 0.4 per cent contraction in the economy for quarter three, meaning the UK is now in the longest recession since records began in 1955 - six consecutive quarters.

Ms Redwood commented: "The key is the upcoming November meeting, which is when the Bank said it is going to revisit its quantitative easing programme.

"I think there is a good chance that they will extend that programme further particularly in light of the GDP figures."

At the last meeting of the MPC on October 8th, the Bank decided to hold interest rates at 0.5 per cent and continue with its programme of asset purchases totalling £175 billion, financed by the issuance of central bank reserves.

Graduates offer quick return on investment

Mon, 02 Nov 2009 14:05:02 GMT

Businesses that invest in graduates can see a return on investment of over 500 per cent, it has been reported.

According to research conducted by Dr Anthony Hesketh at Lancaster University Management School, university leavers pay for themselves on average 20 months from their start date.

In fact, recruitment schemes can make a £5.30 return on every £1 invested by their third year, the study showed.

Commenting on the findings, Steve Huxham, chairman of the Recruitment Society, said: "There has been a lot of publicity this year about [businesses] either downscaling their graduate recruitment programmes or revising them.

"If you want a graduate, you have to put in a lot of effort, training and development and, in any downturn, companies in any downturn, inevitably, are focussed on the short term result."

He said the study may help buck this trend, as firms will no longer be able to say they cannot quantify the worth of such employees.

Mr Huxham claimed that the financial reward firms get from taking on a graduate is actually achieved far quicker than many realise.

The Centre for Cities recently predicted that graduates will be particularly badly affected by a reduction in public sector job opportunities expected in the coming years.

Research and development investment continues during recession

Mon, 02 Nov 2009 14:04:02 GMT

Innovation is considered a critical aspect of preparing for economic recovery in nine out of ten of the 1,000 biggest research and development (R&D) spenders, it has been claimed.

Research conducted by Booz & Company indicates that such spending was up by more than four per cent in the computing and electronics industry last year.

Investment for these companies rose by 5.7 per cent to £322 billion, despite sales only rising by 6.5 per cent, the firm's fifth annual analysis of global innovation spending found.

Overall, more than two thirds of companies maintained or increased their R&D spending in 2008, despite one third seeing reduced revenues as the global economic downturn took hold.

And while 90 per cent of those surveyed said innovation was a vital aspect of their recovery efforts, 70 per cent said their firms were either maintaining or increasing spending this year.

Barry Jaruzelski, a partner at Booz & Company, said reducing efforts on innovation would be "similar to unilateral disarmament in wartime".

"Now is an opportune time to build advantage over competitors, especially weaker ones that may have to skimp on R&D for financial reasons," he added.

"Overall, the study demonstrates an optimistic outlook on the part of the companies in the Innovation 1,000."

Carrie Hartnell, head of industry strategy at the IT association Intellect, claimed that support is needed for UK technology firms to encourage them to keep innovating.

Disconnection a toothless threat for filesharers

Fri, 30 Oct 2009 14:39:30 GMT

The danger of web disconnection is unlikely to change the attitude of those who have grown up with illegal filesharing, it has been claimed.

Earlier this week, business secretary Lord Mandelson announced that those who persistently download illegal content will be cut off from the net.

However, he said the measures would only be successful in combating illegal filesharing alongside new and cheaper ways to access material.

Commenting in the reports, NME news editor Paul Stokes said it will take a significant effort to change the habits of the young generation.

He added: "These changes to the law might have some impact in terms of cutting people off as a last resort, but changing the broad spirit of that generation, and their attitudes towards what is copyrighted and what isn't, is going to take more than just promising cheaper content and different things with it."

Mr Stokes said the key is to change is availability, as there is a generation of people who fail to understand why you should pay for online content.

Earlier this year, Proofpoint reported that the internet habits of young workers may be exposing companies' IT systems to online threats.

A hike in the usage of email, blogs and social networking sites has increased the likelihood of firms losing sensitive data, it was claimed.

Mintel warns of stifled retail sector in 2010

Fri, 30 Oct 2009 14:35:30 GMT

Richard Perks, director of retail research at Mintel, said consumers were likely to suffer once the General Election is out the way.

He said that when the next government is formed, interest rates and taxes will rise, leading to the "retail recession" that has not yet been experienced.

"Consumers have had it easy this year, that's because interest rates have been cut so far and that has far outweighed the impact of rising unemployment," Mr Perks added.

"But next year if that windfall gain from interest rates goes, unemployment is rising and we get higher taxes – which is almost inevitable, it's going to be really tough I think."

He said the planned increase in VAT will have an almost immediate impact in stifling consumer spending, especially as many retailers and suppliers cannot afford to continue with the heavy discounting that has been a feature of the high street in 2009.

The Confederation of British Industry reported this week that retail sales grew modestly in the year to October.

When questioned about sales last year, 41 per cent of retailers said volumes had risen, while 33 per cent said they were down.

Firms desire cloud computing control

Fri, 30 Oct 2009 14:34:30 GMT

Business users are looking for greater levels of control where cloud computing is concerned, it has been suggested.

According to research conducted by Platform Computing, control is a bigger issue for firms than security concerns.

Martin Harris, director of product management at the firm, said some of businesses' worries were perhaps justified.

He commented: "Everybody talks about the security being a major issue, so were surprised that lack of control was the number one.

"What we've seen there is that IT, especially [outsourced] IT, does not have the same levels of control, like standard builds, refresh processes, upgrades, et cetera."

Mr Harris said that while cloud computing uptake is increasing, most companies are waiting for more control of how they use outsourced environments.

"Without that control level there's really no way to ensure the service level that the business is achieving and they are looking for a central control mechanism to enable that," he added.

Despite the findings, a study conducted by business technology services provider Avanade has indicated that the number of global companies planning for, and testing, the cloud has increased dramatically.

A 320 per cent rise in the number embracing cloud computing was witnessed between January and October 2009.

Social networking sites causing productivity drain

Wed, 28 Oct 2009 14:58:28 GMT

Social networking sites Facebook are costing UK businesses around £1.38 billion a year in 'wasted time', a new study has indicated.

Research conducted by Morse indicates that 57 per cent of all UK employees use sites such as Facebook, Twitter and MySpace every day during working hours – for personal rather than company use.

Those who socially network during working hours spend approximately 40 minutes on the sites a day, it is reported, which Morse says costs a significant amount each year in lost productivity.

Philip Wicks, a consultant at the firm, said their popularity has "grown considerably" over the last couple of years, however with this has come the temptation to visit them during office hours.

He added: "When it comes to an office environment the use of these sites is clearly becoming a productivity black hole.

"It is clear that businesses shouldn't turn a blind eye to their employees' use of social networks, and instead look to formulate and enforce sensible usage policies."

In related news, Promotur reported this week that Monday October 26th is the least productive day of the year.

According to the firm, many employees struggle to come to terms with the clocks moving back an hour, causing productivity to drop by as much as 50 per cent.

Firms concentrating on people and services

Wed, 28 Oct 2009 14:56:28 GMT

Many UK firms have reviewed their business strategies to ensure they emerge from the recession in as healthy a position as possible, a new study has indicated.

Research conducted by professional services firm PricewaterhouseCoopers indicates that companies are looking to invest in a number of areas.

The firm's Enterprising UK 2009 report found that 61 per cent of business leaders are now seeking to recruit top talent to aid future growth, 50 per cent are investing in technology and 69 per cent are implementing policies to diversify their customer base.

In addition, 91 per cent see strategic measures to protect the quality and reputation of their business as key to a successful recovery.

Commenting on the findings, PricewaterhouseCoopers tax partner Mary Monfries said: "Private businesses are switching their efforts from cost-cutting to focus on customers, products, services and their people."

However, the study did warn that just four in ten company leaders believe they have fully aligned their business and talent management strategies.

Earlier this month, Vanessa Robinson, head of human resources at the Chartered Institute of Personnel and Development, claimed that HR departments are increasingly being charged with ensuring company growth.

Private firms concerned about tax regime

Wed, 28 Oct 2009 14:53:28 GMT

Two thirds of UK firms believe that the current UK tax regime fails to support and encourage enterprise.

According to PricewaterhouseCoopers' Enterprising UK 2009 survey, just a fifth of private companies believe the government genuinely takes the concerns of the business sector into account.

The most common concern was over the simplicity and stability of the UK's tax system, with 25 per cent of executives calling for a reduction in uncertainty and the rate of change.

This figure was up from eight per cent of respondents in 2006 and 17 per cent in 2007.

Mary Monfries, head of UK private business at PricewaterhouseCoopers, said firms are calling for a stable, certain tax environment in which to conduct their business successfully.

She added: "Reducing tax rates would be a challenge in the current economic climate, but a reduction in the rate of change and uncertainty should be easier to deliver.

"Private businesses are not looking for a crutch from government - an overwhelming majority are taking active steps to help themselves in managing through the recession. However, they do want a more effective voice."

Last week, Deloitte reported that many firms are set to overhaul their balance sheet practises in light of the recession.

Economist shock at GDP figures

Tue, 27 Oct 2009 11:45:27 GMT

The UK's latest gross domestic product (GDP) figures were "terrible", according to one leading commentator.

Howard Archer, chief UK and European economist at IHS Global Insight, expressed his surprise that the economy had contracted by a further 0.4 per cent during the third quarter of 2009.

He said a modest quarter-on-quarter growth of 0.1 per cent had been expected.

Mr Archer added: "It is a real shock and it is very disappointing particularly as we are certain that both the eurozone and the US returned to growth in the third quarter.

"It obviously highlights the fact that the problems facing the economy here are deep seated."

He said the UK had been particularly hard hit by the financial crisis, while the high levels of debt held by consumers have limited their ability to spend.

Mr Archer noted that retail sales did rise in the third quarter, but said spending on consumer services probably fell again.

"I suspect also stocks may have been run down a bit further; we know that industrial production plunged in August," he added.

A technical recession is defined as two successive quarters of negative growth.

CBI says apprenticeships should be a priority

Tue, 27 Oct 2009 11:44:27 GMT

UK businesses cannot afford to reduce their investment in young members of the workforce, it has been claimed.

Richard Wainer, head of education and skills at the Confederation of British Industry (CBI), said policymakers risk creating a "scarred generation" if measures to reduce youth unemployment figures are not made a priority.

He was commenting after government figures showed a fall in the number of under-25s starting apprenticeship schemes during the early months of 2009.

Although a record 234,000 people started courses in the last year, the number recruited between May and July stood at 33,900 compared to 53,800 the previous year.

Mr Wainer stated: "We have been calling for the government to use funds earmarked for tackling unemployment to subsidise extra apprenticeships for young people. [These] figures emphasise the need for such a policy."

CBI director-general Richard Lambert recently claimed that young people leaving education in 2009 faced "the toughest job market in a generation".

He said previous recessions showed that a lack of employment after leaving education can damage young peoples' long-term prospects at "a critical point" as they move into the world of work.

"Young people are being hardest hit by unemployment, and the government must increase the opportunities available to limit its scarring effects," Mr Lambert added.

Mobile phones now essential devices

Tue, 27 Oct 2009 11:41:27 GMT

The mobile phone has become crucial to actively engaging with everyday modern life, it has been claimed.

Claire Milne, consultant at Antelope Consulting and chair at the Consumer Forum for Communications, said that mobile devices have "become essential" and this trend will continue to develop over the next decade.

Speaking at the Westminster eForum Keynote Seminar, More than Talk... The Future of Mobile, she said that because of this, businesses must make mobile phones accessible to all sections of society "on a voluntary basis".

"More of its features and requirements will become essential over the next ten years and are going to become so in many other countries," she added.

Kristof Beets, business development manager at Imagination Technologies, recently claimed that companies and consumers have increasingly high expectations of mobile technology and its capabilities.

He said that using mobile devices in the home and workplace is no longer sufficient, as people wish to use their phones on planes, trains and at their destination of choice.

"Ideally you want all your information, any type of media, at any time, in your pocket with good battery power and that's the ultimate kind of experience we are trying to enable," Mr Keets added.

Firms warned not to ignore business continuity planning

Mon, 26 Oct 2009 13:14:26 GMT

Companies of all sizes should ensure they have a business continuity plan in place, it has been suggested.

According to American Banking News.com, firms which fail to take this most basic of steps face seeing their business close in the event of an disaster such as fire or flood.

The site said that while no business owner wants to believe that his or her enterprise can be impacted in this way, disasters can strike "any company at any time, with no warning".

"It is the wise small business owner who takes steps today to make sure that he or she will not face avoidable devastation following an unforeseen circumstance," the website stated.

It added that the implementation of such plans does even have to be difficult - it must merely outline contingency plans should anything go wrong.

"Make of the list of the types of disasters most likely to impact your business and come up with a list of the steps that should be taken following the occurrence of each event," American Banking News.com advised.

"Your disaster plan simply needs to clearly state a course of action."

According to professional services firm PricewaterhouseCoopers, just 47 per cent of UK executives are sure their company has disaster recovery plans in place.

Employer warning over Christmas party responsibilities

Mon, 26 Oct 2009 13:12:26 GMT

Employers should make staff aware of their behavioural responsibilities ahead of the company Christmas party, it has been suggested.

Ben Wilmott, senior public policy adviser for the Chartered Institute of Personnel and Development, explained that employers are still responsible for employees' actions during such events and therefore have a duty of care for them.

It is important that employees understand that unacceptable behaviour is likely to lead to disciplinary action, as is the case during normal work time, he noted.

The comments follow the release of a statement by legal firm Dickinson Dees UK, warning that employers could face compensation claims if they fail to protect themselves ahead of office Christmas parties.

Mr Wilmott agreed that it is possible for employers to fall foul of the law if incidents of sexual harassment or other discrimination take place.

"Employers need to remind staff of their responsibilities before the Christmas party just to make sure those sorts of issues hopefully don't arise," he added.

He said there had been plenty of cases where staff have lost their job after an office party, so it is an important issue for both employers and employees to consider.

According to Little Bays Restaurants, 33 per cent of firms have already confirmed a date and location for their festive celebration.

Universal 2Mbps broadband not sufficient for the changing world

Mon, 26 Oct 2009 13:07:26 GMT

The government's pledge to deliver a minimum of two megabit per second internet access by 2012 is already inadequate, it has been claimed.

Mark Jackson, editor-in-chief at ISPreview.co.uk, claimed that many commentators feel the gesture is "already too little too late" as the industry is moving on before ministers can act.

He claimed that the flagship Digital Britain report gave precious little attention to other critical considerations such as affordability, usage flexibility, upload performance and latency.

Consequently, consumers in some areas may have to face years of sub-standard broadband services, Mr Jackson suggested.

"Naturally, if left to their own devices, the private sector will always prioritise the coverage of next generation broadband services to areas where it is more commercially viable first - cities and big towns for example," he added.

Remote and rural communities will suffer under the limitations of slower technologies for many years to come, he suggested, a situation that is unlikely to change without government intervention.

According to a survey published by broadband comparison website Top 10 Broadband, connection speed is becoming a major factor in where Brits choose to live.

It is now more of a key concern to homeowners than proximity to the local pub, the study found.

Businesses urged to be more transparent

Fri, 23 Oct 2009 13:54:23 GMT

UK businesses must work hard to rebuild their reputations once the recession has ended, it has been claimed.

Speaking at the Harvey Nash National Annual Lecture in London, the Confederation of British Industry's director-general Richard Lambert said it was not just the banking sector that had taken "a knock" during the downturn.

A loss of faith in commercial markets, the need for environmental sustainability to be a shared national priority and greater transparency in the world make it an essential priority that all companies reconnect with the consumer, he suggested.

Mr Lambert noted that "there are no secrets any more" in business, with information flowing freely everywhere, and no institution hiding behind "a comfortable veil of obscurity".

"In a world without secrets, the behaviours which build or destroy reputations become a matter of critical importance, whether you are politicians claiming expenses, the BBC paying its stars - or businesses making profits," he added.

In order to re-establish consumer trust, firms must build on their previous successes, save jobs via flexible working, better communicate their role in society, improve remuneration and payment policies, and adapt to the changing 21st century world, Mr Lambert claimed.

According to Nationwide's latest index, consumer confidence rose by six points to 71 in September, with 39 per cent of interviewees positive over the UK's economic fortunes for the next six months.

PwC calls for UK budget deficit to be trimmed

Fri, 23 Oct 2009 13:51:23 GMT

The government must take action to reduce its budget deficit before the pension crisis worsens, it has been claimed.

Earlier this week, the Office for National Statistics reported a deficit of £11.3 billion, up from £7.6 billion 12 months ago.

John Sison, head of the government and public spending group at PricewaterhouseCoopers, said this was "broadly in line, or just a bit better than what people had been expecting".

However, he claimed that the UK needs urgently to get to a position where it does not have a structural budget deficit.

Mr Sison claimed pension provisioning needs addressing in order to restore saver confidence.

"[There] is the long-term fiscal problem of the aging population with all of the health and social care [to consider]," he added.

At the last count, the government's total liabilities for unfunded, public pensions stood at £650 billion.

According to official figures, the pension saving ratio fell to 2.5 per cent in 2007, its lowest level since the late 1950s.

State pensions are paid by the government from the National Insurance Fund, with total payments standing at £57 billion in 2007, up from £34 billion a decade earlier.

No change in retail sales during September

Fri, 23 Oct 2009 13:51:23 GMT

Official figures have confirmed that retail sales remained static for September, the second successive month without change.

According to the Office for National Statistics (ONS) sales were up 2.4 per cent on September last year, however this was down on the 2.8 per cent rise anticipated.

Food sales fell by 0.1 per cent in September, with non-food items showing no growth. Meanwhile textile, clothing and footwear volumes fell by 0.5 per cent.

Commenting on the findings, British Retail Consortium (BRC) economist Richard Lim said consumer confidence remained fragile in the UK.

There is a sense that the mood of customers is beginning to improve, he claimed, although this has yet to be reflected in sales figures.

Mr Lim added: "Food has been the main driver of overall sales growth for the past few years, but this September saw slower food sales growth as food inflation weakened.

"Some sectors are seeing confidence trickle back – clothing and furniture, for example, saw sales growth up a little. Retailers will be hoping for positive news about employment and housing to boost consumer sentiment."

Earlier this month, the BRC and KPMG reported that non-food non-store sales rose by 11.9 per cent in September compared to 12 months ago.

Positive reports for Windows 7

Thu, 22 Oct 2009 13:39:22 GMT

The release of Windows 7 will be a very good move for Microsoft, it has been claimed.

According to Rough Guide, the guidebook and reference publisher, the new operating system is likely to be well received by computer users.

Simon May, author of The Rough Guide to Windows 7, said Windows 7 will be "an important asset for Microsoft" as it competes with Apple for consumer confidence.

He claimed that "virtually no one has a bad thing to say" about the new release.

Mr May added: "Windows isn't Microsoft's only product, or even it's only big product, but it is key to its reputation.

"They need a reputational win that's as glossy as the new task bar in Windows 7. Personally, I think they've done it."

He claimed that the new system is better performing, easier to use and more intelligent that its predecessor Vista.

"Microsoft went back to the drawing board and sorted out the things that matter, such as better battery life on laptops, faster boot up times, faster search, and easier access to regularly used documents and applications," Mr May noted.

Windows 1.0 was released in November 1985, 24 years ago.

Firms set to review balance sheet practises

Thu, 22 Oct 2009 13:38:22 GMT

The credit crunch climate will see enduring change in the activity of how companies orchestrate their financial planning, according to a new study.

In a survey carried out by Deloitte, 70 per cent of chief financial officers and group finance directors of major UK companies said their firms are set to review their policies in this area.

They see corporate structures running higher amounts of liquid reserves, cash and using equity and bonds as a failsafe.

Michael Baxter, economics analyst at Investment and Business News, said: "That's inevitable, and slightly worrying as well – there are some slightly worrying trends picking up. Mortgage lending is picking up, but then lending to business is not."

He claimed that if firms want to have a stable economy, credit must come first to businesses – something he described as "a return to the same attitude that put us in the crisis in the first place".

"I think it's pretty worrying. Companies have no choice but to restructure their balance sheets, but I'm not convinced it's a good thing that it is necessary for them to do that," Mr Baxter added.

According to the Chartered Institute of Purchasing and Supply/Markit Purchasing Managers Index, the UK service sector registered the strongest rise in activity since September 2007 last month.

Firms failing to sift through customer feedback

Thu, 22 Oct 2009 13:35:22 GMT

Many firms are failing to take notice of significant amounts of customer feedback, a new study has indicated.

According to research conducted by Warwick Business School, the sheer volume of customer comment being received by some firms makes it impossible for them to maximise its use.

The study indicates that customers are providing feedback through a variety of channels, including text and voice messages, contact forms, letters and social media.

Marketing teams are simply not equipped to deal with this multi-channel influx, it is claimed.

Chris Worth, an associate of Warwick Business School, said that when faced with a mass of data, human beings make a rational choice – to cut down the complexity to something manageable.

"When dealing with thousands of customer comments, that led to 75 per cent of the data being tossed and the focus narrowed to a few key categories," he added.

"That's dangerous, because the most profitable opportunities are often hidden in little gems of data hidden in dark corners... which companies appear to be missing."

Bright UK managing director Mats Rennstam told Call Centre Helper this week that some firms still fail to collect any feedback at all.

Business intelligence needs to evolve

Wed, 21 Oct 2009 11:12:21 GMT

Business intelligence (BI) tools have to evolve into something more than they have been over the last ten years, it has been claimed.

Roger Llewellyn, chief executive at Kognitio, was commenting after the technology provider released research showing that 78 per cent said that BI implementations take over a year to see any meaningful results.

He claimed there has often been something of a Catch-22 situation, as firms need to analyse their business in depth, but the longer they spend doing so, the greater the likelihood is that the landscape changes.

Mr Llewellyn said that for BI to evolve, people needed to stop using it solely for the long term and look at the benefits that are involved in the short term.

There will always be major BI tasks, but in the main they will become project-orientated rather than strategic-orientated, he claimed.

"We're going to see BI projects become a lot smaller and implemented faster and implemented at a lower cost," Mr Llewellyn said.

"They will be an ultimate strategy at the end of the day, but people will implement much more granularly their BI process and therefore be much more successful."

Last week, Martin Lynch told AMEinfo.com that firms are continuing to invest in a variety of software solutions designed to help them gather, analyse and use data to make better decisions.

Scareware sites a new threat to computer users

Wed, 21 Oct 2009 11:10:21 GMT

Perpetrators of online crime are managing to convince internet users to download dangerous software masquerading as anti-virus programmes, it has been reported.

According to a new study conducted by Symantec, scammers have earned more than £850,000 in 12 months selling the products, which have affected over 40 million people in the last year.

Some 250 different types of 'scareware' have been found, the firm claims.

Commenting on the findings, Jens Kirschner, training manager for computer forensics at IT consultancy 7Safe, said more malicious websites are cropping up every day.

He said: "Don't trust sites you have never heard of before. People trust Google, of course, but the results from Google could be from anywhere.

"Make sure that you have a proper updated malware scanner, although there are no guarantees that it will protect you against everything."

Mr Kirschner claimed "a level of preparation" is needed on the malware scanning front, while IT users should also have a safe level of mistrust about what they find on the internet.

He added: "Don't trust anything you're not familiar with. The majority is fine, but it's important to realise there are some severely black sheep among the rest."

PandaLabs recently reported that incidences of malware have increased by 600 per cent on the same time last year.

CML reports increase in house buyer activity

Wed, 21 Oct 2009 11:09:21 GMT

Gross mortgage lending totalled an estimated £12.5 billion in September, according to the Council of Mortgage Lenders (CML).

The figures represent a two per cent rise on the £12.3 billion borrowed in August, but a 27 per cent fall on September 2008.

Gross lending in the third quarter of 2009 was estimated at £38.9 billion, up 18 per cent on the second quarter and down 36 per cent on the third quarter of last year.

A pick-up in house purchase activity contributed to the rise, although this was off-set by a decline in remortgaging.

CML economist Paul Samter said buyer activity is running at considerably higher levels than around the turn of the year, despite remaining weak on any historic comparison.

He added: "There are some positive signs to look to. While the retail side, both in terms of mortgage and savings activity, has thrown up few surprises, it is encouraging that the wholesale markets have begun to thaw.

"Some of the UK's highly rated institutions have been able to issue structured finance products backed by mortgages in recent weeks."

The CML aims to promote a thriving environment for the UK housing and mortgage markets.

Virtualisation a key issue for firms next year

Wed, 21 Oct 2009 11:07:21 GMT

Virtualisation investments will be at the top of many business agendas during 2010, it has been reported.

Peter Sondergaard, senior vice-president and global head of research at Gartner, claimed the technology is one of three main issues at the forefront of IT managers' thoughts where next year is concerned.

He said business intelligence deployments and social media issues are also set to be prioritised.

Mr Sondergaard suggested that firms should not just invest in the server and data centre environment, but virtualise their entire infrastructures.

"In 2010, users will create the cornerstone for the cloud infrastructure. They will enable the infrastructure to move from owned to shared," he added.

Among the other topics set to be important to IT managers moving forward, Mr Sondergaard highlighted context-aware computing, operational technology and pattern-based strategies.

Earlier this week, Sumir Karayi, chief executive of 1E, claimed that companies can improve the efficiency of their IT operations by embracing virtualisation technology.

He said that since many servers owned and supported by companies are simply not being used, full efficiency is not being achieved.

"Organisations need better information on server efficiency and more effective ongoing energy management," Ms Karayi added.

Calls for public investment in fast fibre broadband

Tue, 20 Oct 2009 13:28:20 GMT

The UK's planned high-speed broadband network will not become available outside major urban centres unless public funding is made available, it has been claimed.

Tim Johnson, chief analyst at independent broadband communications services information firm Point Topic, said fast fibre broadband services "will not reach more remote areas without subsidy".

He was commenting after the Conservative Party announced plans to scrap the government's planned telephone line tax, designed to raise funds for super-fast broadband in the UK, if it wins the next election.

Shadow culture secretary Jeremy Hunt told the Financial Times this week that the Digital Britain report measure – which would impose a 50p a month tax on every UK telephone line – would be abandoned as soon as possible.

Announcing plans to double its own investment last week, BT claimed that a wider roll-out would need support from the public sector.

Mr Johnson described this statement as "a shot across the bows of the Tory party"

He stated: "The Digital Britain report proposed this tax on telephone lines to subsidise the roll out.

"I think that is absolutely right. [Fibre] will not reach more remote areas without subsidy. And [these areas] are not terribly remote, they are only mildly remote."

Firms moving across to wireless networks

Tue, 20 Oct 2009 13:26:20 GMT

Companies are moving their in-house networks to wireless, recent surveys and anecdotal evidence indicates.

Speaking at the Misco Expo on October 14th, Matt Bennett, category manager for networking at Misco, said a high-demand for managed wireless switching and managed access points had been witnessed.

His comments came after a report by the Aberdeen Group identified the importance of wireless networks to businesses.

The study found that some organisations, on introducing wider, more pervasive wireless networks, have experienced a 229 per cent growth in wireless network traffic.

Mr Bennett suggested the shift may be coming about purely because of the sheer complications that large-scale IT poses.

He stated: "In the last couple of years we've seen a general move among businesses from wire-based to wireless. From a management perspective having a building and having multiple PCs, the amount of cabling that's obviously required is quite time consuming."

Customers want greater functionality so are buying managed switches as opposed to unmanaged, he claimed.

Last week, the government launched a new consultation seeking to effectively use the UK's airwaves.

Parts of the spectrum suitable for mobile broadband and 3G will be made available in order to offer more sophisticated services and applications, the report says.

Agency Workers Directive delay is good for business

Tue, 20 Oct 2009 13:22:20 GMT

The decision to delay the implementation of the Agency Workers Directive is a good one for businesses, it has been claimed.

Last week, the government announced that the changes brought about by directive-effecting legislation will not come into force until autumn 2011 - the latest possible point in time.

Previously, it had been speculated that the government would rush through the new law, which will grant equal employment rights to members of the temporary workforce once they have spent 12 weeks in a placement.

Speaking to the Yorkshire Post, Nick Pontone, policy director of the Yorkshire and Humber Chambers of Commerce, said the decision was "a welcome boost for business".

He claimed that new employment regulations introduced since 1998 have cost firms £5.7 billion in Yorkshire alone, and suggested that any additional burden would hinder the economic recovery.

Mr Pontone suggested that creating jobs will be "at the top of the agenda" as the UK emerges from recession, meaning there will be support for any moves designed to reduce the costs involved with taking on new staff.

"Helping businesses succeed is by far the best way to get unemployment down and tackle the deficit by rebuilding tax revenues," he added.

Kevin Green, chief executive of the Recruitment and Employment Confederation, said last week that the decision to delay implementing the directive was "a significant milestone" in a long campaign to protect the interests of recruiters.

Cloud computing aids remote working

Mon, 19 Oct 2009 15:04:19 GMT

Cloud computing "changes the game" when it comes to processes designed to support remote working, according to ThinkGrid.

David Pratt, chief operating officer of IT services at the cloud provider, said management burdens are reduced as applications and data is stored in the cloud.

He was speaking after Gartner's Hype Cycle Special Report for 2009 found that cloud computing has seen an increased interest with enterprises seeking to use their IT in the most cost-effective way.

Mr Pratt added: "Even in the event of total device failure, any other internet-enabled device can be used to carry on working," causing little or no disruption to the company.

"In addition, the use of thin clients means that hardware can be swapped with no technical expertise required," he stated.

"With up to date software provided from the cloud and the possibility of remote management of a device, there will be very little - if any - need to send support staff to remote worker sites."

According to Forrester research, enterprises in both North American and European markets are finding that their users are increasingly mobile.

Mobile workers will make up 73 per cent of the workforce by 2012, the study predicted.

Consumer focus helping businesses

Mon, 19 Oct 2009 15:02:19 GMT

The most successful retailers are the ones that respond best to their customers, according to the British Retail Consortium (BRC).

A spokesperson for the organisation said businesses were well aware of the fact that customers are "feeling the pinch" and are taking steps to make life easier for the consumer.

They are running many promotions and price discounts to encourage consumers to part with their cash, he suggested.

The spokesperson was commenting after IGD research found that 54 per cent of shoppers are going to be careful about spending in the future regardless of economic recovery.

It also found that almost a fifth were thinking of buying more locally sourced produce from 2012.

"Retailers are constantly responding to customer demand," the BRC representative added.

"The most successful retailers are the ones that respond best to their customers. Retail is very fluid - it's constantly changing. Retailers will change to whatever customers want."

Last week, the Co-operative Group interim report for the first half of 2009 indicated that it has been weathering the economic storm.

Group profits were up 17 per cent, after a 27.1 per cent rise in group revenues.

Like-for-like food sales rose by a market-beating 7.3 per cent, excluding fuel and VAT.

Online pricing and marketing practices face investigation

Mon, 19 Oct 2009 14:56:19 GMT

The Office of Fair Trading (OFT) has launched two market studies to investigate issues such as drip pricing and baiting sales, it has announced.

Both the online targeting of advertising and the advertising of prices will be investigated, with the outcomes expected in the spring.

In the first study, the OFT will investigate behavioural advertising and customised pricing, "where prices are individually tailored using information collected about a consumer's internet use".

Meanwhile, in the second, various pricing practices will be assessed to establish whether they have the potential to mislead customers in the online retail world.

Heather Clayton, OFT senior director, said the studies would ensure that the office keeps up to date with the latest developments and, in particular, on how new pricing and advertising practices are emerging and evolving online.

She added: "It is very important that the OFT's approach to potentially misleading practices remains well-informed by a sound evidence base, so we effectively protect consumers while allowing firms to compete freely."

The OFT is a non-ministerial government department given competences as the UK's consumer and competition authority.

Global banks confirm remuneration action

Fri, 16 Oct 2009 14:41:16 GMT

A group of leading foreign banks have agreed to support the implementation of reforms to bankers pay proposed at the G20 summit in Pittsburgh.

Merrill Lynch, Credit Suisse, Goldman Sachs International and JP Morgan are among those to have confirmed their commitment to the Financial Services Authority (FSA) reforms to remuneration practices.

Of the major European banks with major London branches, BNP Paribas, Deutsche Bank and Societe Generale have also announced their intention to act on the rules, which were published in August and will come into effect in January.

A joint statement published by the banks said the move was necessary for national and international consistency on the issue of banking remuneration and effective risk management.

"We welcome the global nature of the G20 remuneration reforms and will work with the FSA and regulators in our home countries in adopting the reforms, recognising that all G20 nations have also committed to their implementation to ensure a level playing field," the banks added.

FSA secretary Lord Myners commented that the financial services industry has to take a "responsible and long-term approach to remuneration" to retain competitiveness and regain public trust.

Earlier this month, Barclays, HSBC, Lloyds Banking, the Royal Bank of Scotland and Standard Chartered agreed to implement the reforms suggested by the G20.

Business Link offers Royal Mail strike advice for businesses

Fri, 16 Oct 2009 14:38:16 GMT

Business Link has offered some practical advice to UK businesses likely to be affected by the expected postal strikes.

The support service says contingency planning is essential as firms bid to carry on unaffected by Royal Mail walkouts, which could begin as soon as next week.

A new a dedicated advisory webpage has been launched, with ideas on what firms can do to mitigate any disruptions to their operations.

Business Link advises firms needing to use the Royal Mail during the strike to contact their customers to inform them that their goods may be delayed.

In addition, companies are urged to take any outgoing mail to a post office, as it is more likely to be collected from there than a post box.

Sending post by Special Delivery or by courier may help ensure delivery, it is claimed, but firms are encouraged to check these services are running before acting in reliance.

Business Link also says that using alternative businesses to deliver items is an option, while any bills should be paid online or at a bank, building society or post office.

Postal strikes could cost the UK economy up to £1.5 billion in lost revenue, according to comparison site Kelkoo.

Security essential for cloud computing trust

Fri, 16 Oct 2009 14:35:16 GMT

A healthy obsession with the security of cloud computing will help it become trusted enough to be used on a wide scale, it has been claimed.

According to Simone Brunozz, web services technology evangelist for Europe at multinational e-commerce company Amazon, "paranoia is never too much" from service providers when it involves cloud storage.

This is because "security is a big issue for most customers", he noted in a speech at Storage Expo 2009, an information management and infrastructure exhibition taking place at London's Olympia this week.

Mr Brunozz explained that the security of cloud computing must be taken "very seriously" by those who supply it, as the nature of storage requires "a lasting relationship" between provider and customer.

He added that legacy software and resistance from staff can slow down the adoption of cloud-based storage, but it offers flexibility and efficiency to those who take it up.

Firms which move to the cloud have more time and resources available to them as a result, Mr Brunozz noted.

Earlier this year, William Fellows, principal analyst at The 451 Group, claimed that cloud computing can help businesses make the most of their IT network to cut energy use.

He said sharing resources and IT infrastructure is "for the greater good" of businesses.

Cost a key factor in data storage

Thu, 15 Oct 2009 15:08:15 GMT

Cost-effectiveness has become central to storing data due to the economic downturn, a research firm has claimed.

Andrew Reichman, senior analyst at the independent technology and market consultancy Forrester, said that storage efficiency has always been an "important topic," but is more so now than ever.

He said it is a "real challenge to keep things efficient" in terms of information storage, because most organisations are now dealing with "continuous and significant data growth".

However, they are not prepared to wait for storage or application performance, Mr Reichman commented.

Speaking at Storage Expo 2009, an information management and infrastructure exhibition taking place at London's Olympia this week, he said he had seen the "urgency for cost efficiency step up" in storage over the last few years.

"It's not a valid choice anymore to throw more disk at the problem... Building too much performance is a good insurance policy... but it's a very costly insurance policy. Recognise that good enough is good enough," he added.

Storage Expo 2009 aims to provide visitors with the opportunity to compare a range of IT solutions and services from leading suppliers.

Cloud computing seen to increase sustainability

Thu, 15 Oct 2009 15:06:15 GMT

Many firms see cloud computing and Software-as-a-Service (SaaS) models as being more environmentally friendly than housing their own IT infrastructures, it has been reported.

According to a recent Symantec survey, 57 per cent of businesses subscribe to this way of thinking, a response that "blew away" the firm's vice-president of global solutions Jose Iglesias.

Speaking to ARN, he said firms either thought they were moving the carbon footprint problem across to their supplier, or that this firm could do the job much more effectively than they could.

ARN agrees that on-demand technology platforms such as cloud computing see suppliers taking on much greater responsibility for the sustainability of their customers' IT environment.

In addition, Peter Stein of Express Data told the site that, in many cases, SaaS is being seen as a way to "take away some of the sustainability issue".

This is because it becomes part of the service offered by the software services provider, he suggested.

A study conducted by Applied Research recently revealed that 66 per cent of IT managers already have dedicated budgets for cloud computing, while 71 per cent expect expenditure to grow in this area over the next two years.

Expert says mobile marketing importance growing

Thu, 15 Oct 2009 15:04:15 GMT

Mobile marketing is becoming increasingly relevant as an advertising channel for businesses, it has been claimed.

According to Matt McNeil, founder of email marketing provider Sign-Up.to, the mobile is moving towards being an essential device in everyone's lives.

He said widespread smartphone use will certainly change mobile marketing and offer new opportunities to complement SMS.

"It may also add a degree of complexity to the market as well," he noted.

Mr McNeil said the key to mobile marketing is ensuring you target the right audience, but timing is also "very much a critical factor".

"The fact you can reach your audience anywhere and at the appropriate time is the key strength of mobile marketing, especially in the retail or entertainment sector where you can reach with the consumer at the very moment they are making a purchasing decision," he added.

Oliver Chivers, head of business marketing at T-Mobile UK, recently told Fresh Business Thinking that more firms are now aware of the benefits of mobile working from cost and productivity perspectives.

He noted that the benefits of allowing employees to work remotely – such as reduced expenditure and higher motivation levels – were being more widely recognised.

BCC urges firms to continue combating recession

Wed, 14 Oct 2009 15:27:14 GMT

The recession may be drawing to a close, but there is no room for firms to be complacent, according to the British Chambers of Commerce (BCC).

Commenting after the publication of the latest labour market figures by the Office for National Statistics (ONS), BCC chief economist David Kern urged UK businesses to be vigilant.

He said that despite unemployment rising at a much slower pace than expected in the three months to August, a sustainable recovery was by no means guaranteed.

Mr Kern stated: "Although confidence is strengthening, businesses are still facing serious pressures. Lending is still too weak, and many are struggling to retain their skills base.

"The continuing fall in average earnings shows that inflationary pressures, whatever the long-term risks, are not a short-term concern.

He claimed that many risks persist, adding that the key policy priority is to avoid a double dip recession.

"The Monetary Policy Committee must persevere with, and extend, the quantitative easing programme," Mr Kern said.

According to the ONS, there were 2.47 million unemployed people in the UK at the start of last month.

The unemployment rate for 16-17 year olds stood at 33 per cent, compared to 17.7 per cent for those aged between 18 and 24.

Virtualisation holds the key for cloud computing

Wed, 14 Oct 2009 15:25:14 GMT

Virtualisation technology plays a "key" role in the use of cloud computing, one IT expert has claimed.

Writing for the Wall Street Journal, William M Bulkeley explained that virtualisation allows a single computer to function as multiple virtual servers running many operating systems and applications.

Since virtualisation has no dedicated computers, it has been crucial to the development of the cloud, he claimed.

Mr Bulkeley said: "Each one can run many software applications at the same time, with processing power and storage shared among applications depending on demand.

He added that cloud computing enables firms to tap into raw processing power, storage, software applications and information from large data centres over the internet.

Earlier this month, Chris Bone, enterprise products and solutions specialist at Fujitsu, claimed server virtualisation is becoming increasingly popular with businesses as the IT industry advances.

He said many firms are looking to upgrade their systems in this area, meaning virtualisation take-up should increase in the coming years.

"A lot of organisations who invested in virtualisation technologies for development and test will start to move them into mainstream production," Mr Bone predicted.

Study shows online retail strong during September

Wed, 14 Oct 2009 15:19:14 GMT

Online retail and e-commerce services are continuing to enjoy growth in the UK, a new report indicates.

According to the latest Retail Sales Monitor report from the British Retail Consortium (BRC) and KPMG, non-food non-store sales rose by 11.9 per cent compared to 12 months ago during September.

The growth rate – which was higher than the figure of 7.9 per cent seen in August - "was in line" with a pick-up in general store sales, the study indicated.

Stephen Robertson, director-general of the BRC, claimed the overall figures were the best growth rates seen since January 2008, but warned that many retailers should not "get carried away".

He stated: "As we enter the important run-up to Christmas, these results give some room for optimism.

"But consumer sentiment is volatile and could weaken again and, throughout the final quarter, all the comparisons will be with poor figures last year."

Helen Dickinson, head of retail at KPMG, agreed that the pick-up in the month's figures had been "stronger than expected" but must be kept in perspective.

Last week, outsourcer Vertex reported that the experience provided on the high street is still preferred by many consumers to that offered by online retailers.

Music streaming may affect IT performance

Tue, 13 Oct 2009 11:55:13 GMT

Web-based applications like Spotify can slow down businesses' IT setups, reducing overall performance and potentially impacting upon productivity, it has been claimed.

According to Blue Coat Systems, the amount of data downloaded by such applications can overload IT systems.

Only last week, fixed line communications company ntl:Telewest Business reported how office workers across the country have embraced Spotify as an alternative to listening to the radio or songs that they and their colleagues have downloaded.

However, the firm said that the music streaming service amounts to another hidden application running over their network.

Adding his voice to the debate, Nigel Hawthorn, vice president of EMEA at Blue Coat Systems, said that the likes of Spotify and the BBC iPlayer "don't need many users on a work network to cause problems for business applications".

He explained that watching the iPlayer for 30 minutes could require a 320MB [Megabyte] download, while Spotify is "constantly downloading data, taking up valuable bandwidth".

Mr Hawthorn added: "Without visibility, organisations will remain oblivious to the vulnerabilities that these bandwidth hungry applications might have on their internet gateway or the Wide Area Network."

Fears over employer responses to ID fraud threat

Tue, 13 Oct 2009 11:54:13 GMT

Businesses are failing to take proper IT security precautions and are continuing to put their customers' identities at risk, new research indicates.

According to the National Fraud Authority, 97 per cent of employees lack confidence that their employers are properly protecting sensitive information.

Indeed, the report shows that 71 per cent of employees think the organisations they work for could do more to protect against identity fraud.

Commenting on the findings, National Identity Fraud Prevention Week spokesperson Tyron Hill said businesses need "to do more" to convince their employees that they are handling data responsibly.

He added: "For example, it is shocking that nearly two in five employees still do not have access to shredders at work with which to destroy sensitive information.

"Today's customers are more vigilant and informed when making decisions – businesses that are seen to do more to protect data are at a competitive advantage over those that aren't, which can directly affect a business' bottom line."

With the right resources, businesses and consumers can work together to ensure identities stay protected, Mr Hill suggested.

Last week, Yuval Ben-Itzhak, chief technology officer at Finjan, claimed internet fraud is an ongoing challenge for the UK banking sector.

Shutting computers down can save money

Tue, 13 Oct 2009 11:52:13 GMT

Businesses can reduce their outgoings by being more energy efficient, especially where their IT systems are concerned, it has been claimed.

A study conducted by Codework has revealed that the average cost of maintaining a 100-PC network approaches £4,500 a year in energy alone.

The fact that most PCs are left on for an average of 19 hours every day, despite only being used for nine hours, contributes to companies' bills, the firm claims.

According to Codework, by educating employees of the benefits of turning their computers off at the end of the day, the amount of money spent on electricity can be reduced.

The firm says that greener working practices, aligned with the use of energy saving software, can see bills cut by as much as 50 per cent.

Bhav Lakhani, the operations director at Codework, said: "This study shows that in the current economic climate, one of the most effective ways for companies to make significant savings is through reducing their energy costs."

Last week, Lee Coates, director of Ethical Investors Group, called for greater levels of investment in low carbon technology.

He said that although many firms recognise the benefits of green IT, few are taking affirmative steps to improve energy efficiency.

Firms urged to embrace flexible working

Mon, 12 Oct 2009 15:56:12 GMT

Greater emphasis needs to be placed on the benefits of flexible working for both staff and businesses, according to one employment body.

Ruth Spellman, chief executive of the Chartered Management Institute (CMI), says non-standard working patterns can have "a significant impact on employee motivation, engagement, productivity and overall performance".

She said that managers play "a central role" in the successful introduction of such working practices, which have direct and indirect advantages for the companies themselves.

Ms Spellman was commenting after a Centre for Policy Studies report found that if money was not a constraint, only one in five women would continue working full-time.

She claimed "flexible working should be available to all employees, not just those with children", however she added that such work patterns may "not be appropriate for particular roles".

"It is important to point out that CMI believes that the right to request remains precisely that, a request which maybe legitimately declined on the basis of business needs," she noted.

"Flexible working needs to reflect a dialogue between the employee and employer."

Jon Reed, of the American Educational Guidance Center, recently told NN that the elimination of commuting time and costs can be a major advantage for flexible workers based from their homes.

Firms continuing to invest in business intelligence

Mon, 12 Oct 2009 15:55:12 GMT

Few technologies are holding their own as well as business intelligence (BI) software as the recession ensues, according to one commentator.

Writing for AMEinfo.com, Martin Lynch said firms were continuing to invest in a variety of software solutions designed to help businesses gather, analyse and use data to make better decisions.

Database and application purchases in the data mining, online analytical processing, statistical analysis, reporting, decision support and enterprise resource planning sectors are holding up well, he noted.

Mr Lynch explained that the tools exist to turn data into useful information that can be used to predict market trends, analyse customer behaviour, support decision making and increase efficiency.

He added: "BI tools can be useful in a diverse number of scenarios, from figuring out whether or not you are selling to the right customers and what their shopping habits are to seeing what business processes within your company are working well and those that are in serious need of an overhaul.

"In the current climate, the need for BI tools has never been greater because hard times are forcing companies to look at their internal structures, how they make decisions."

Writing for News Factor, editor Jennifer LeClaire said companies cannot afford to ignore analytics tools in the midst of a recession.

Scrappage scheme has protected manufacturers

Mon, 12 Oct 2009 15:52:12 GMT

The government's car scrappage scheme has saved the manufacturing sector from "a hammer blow", it has been claimed.

Paul Williams, chairman of the Retail Motor Industry Federation, said he was surprised at just how popular the initiative has been with consumers, who have taken advantage of a £2,000 discount offered on many new vehicles to trade old models in.

He was commenting after the Society of Motor Manufacturers and Traders reported that year-on-year registrations for new cars were up 11.7 per cent last month.

Latest figures show that 78,339 cars were registered through the scrappage scheme in September alone, bringing the total year-to-date figure of scrappage-registered cars to 181,117.

Mr Williams said: "One of the reasons we [the Retail Motor Industry Federation] lobbied to have it extended is that without it the industry – both manufacturing and retailing - would have taken a hell of a hammer blow."

He added that, unless people were familiar with the sector, they would fail to understand the way the scheme has affected trading.

"I've been in 30 years and I could count on one hand the number of vehicles over ten years old I've taken in part exchange against a brand new car," Mr Williams said.

UK needs to improve skills base

Fri, 09 Oct 2009 16:04:09 GMT

Increasing the UK skills base is critical to the success of businesses and the economy as a whole, it has been claimed.

According to a spokesperson for the Department for Business, Innovation and Skills (BIS), training and education makes a difference to the lives of millions of people, increasing personal as well as national prosperity.

"Skills are an investment for the whole of a person's life. And firms that employ higher skilled people are more productive," she stated.

The spokesperson added that professional expertise is likely to be the key factor determining the UK's resilience and ability to come through recession, and to make the most of upturn.

"[Workers] must have the skills required – delivered in the right place, at the right time – to support recovery and seize opportunities of a new global economy.

"Reforms are making the qualification system less bureaucratic, simpler to understand, more attractive, flexible, inclusive and responsive to learner and employer needs."

Latest Office for National Statistics figures show that the working age employment rate stood at 72.5 per cent in the three months to July 2009, down 0.8 percentage points on the three months to April 2009 and 2.1 per cent on a year earlier.

Driving business the new challenge for HR

Fri, 09 Oct 2009 16:00:09 GMT

Human resources (HR) departments must be prepared for significant changes in the sector over the course of the next decade, one expert has claimed.

According to Vanessa Robinson, head of HR practice develop at the Chartered Institute of Personnel and Development (CIPD), teams need to consider what steps they can take to drive their businesses forward.

Ms Robinson was commenting as CIPD prepares to publish research which indicates HR will move from a primarily internal-focused function to one with the overall business agenda at its core.

The institute claims departments will need to foster a culture of authenticity, demonstrate a balanced approach to risk management and display organisational agility in the years to come.

Indeed transformation in the sector will pick up speed in the coming years, Ms Robinson noted, something that must be remembered when new growth strategies are formed.

"HR professionals need to be as prepared as possible for what is around the corner, to know what their contribution can be and how to go about delivering that.

"It's time to think about how to drive HRs contribution forward and to add even more value to business than before," she added.

According to Business Link advisor John Grange, small firms cannot use pay freezes to solve all their problems as the recession ensues.

He said wage cost reductions should only be considered as "part of the jigsaw".

Firms warned to prepare for carbon emissions reporting

Fri, 09 Oct 2009 15:58:09 GMT

UK businesses must prepare themselves for the challenge of reporting on carbon emissions, it has been claimed.

Cindy Cahill, a partner at Deloitte, said they must place added focus on emissions reporting after the finalisation of the Carbon Reduction Commitment (CRC) scheme.

From next April, firms will be required to account for all carbon emissions, with fines liable for those failing to meet this responsibility.

Ms Cahill stated: "The new scheme will bring challenges to organisations both in the run up to the start of the CRC in April 2010 and beyond.

"But it will also bring opportunities for companies who embrace energy efficiency measures and, of course, at the same time help the UK meet its substantial emissions reductions commitments."

Carbon footprinting and management are set to quickly rise up the corporate agenda, she stated, meaning they must ensure they are on top of this mandatory regulation.

Earlier this week, Lee Coates, director of Ethical Investors Group, called for greater investment in low carbon technology.

He claimed that despite plenty of encouraging talk about the adoption of green IT, a lack of available credit from the banks is threatening to stifle the development of new technologies.

No action from Bank ahead of inflation report

Fri, 09 Oct 2009 12:58:09 GMT

The Bank of England has held interest rates at 0.5 per cent yet again, following the monthly meeting of its Monetary Policy Committee (MPC).

Quantitative easing will also continue, but no extension has been made to the existing limit of £175 billion, despite calls from some analysts to increase this to £200 billion.

David Kern, chief economist at the British Chambers of Commerce (BCC), had earlier urged this – or the introduction of negative interest rates – in order to help stimulate the economy.

He said: "This would penalise banks hoarding cash, and provide an incentive to lend to viable, credit-worthy customers.

"Despite some positive signs that the UK recession may be ending, the very disappointing recent decline in manufacturing output provides a stark reminder that recovery is not guaranteed."

Mr Kern added large-scale job losses and the persistent weakness in lending to companies remained "serious problems" that must be resolved.

Commenting on the Bank's latest decision to hold interest rates, Young Group chief executive Neil Young said it was "no surprise".

He claimed that the base rate is unlikely to change until the quantitative easing programme has ceased, adding that, as expected, the MPC had delayed taking any decisions on this policy until after next month's quarterly inflation report.

Investment needed for environmental projects

Thu, 08 Oct 2009 13:28:08 GMT

Businesses need to raise their level of investment in environmental projects, one industry expert has claimed.

According to Lee Coates, director of Ethical Investors Group, there is not enough money being poured into environmental technology at present, despite many firms recognising the benefits of green IT.

He said there is "lots of hot air and there's lots of talk about it", but little affirmative action, largely because the banks are unwilling to offer credit to companies looking to spend in this area.

Mr Coates stated: "Banks don't understand it and therefore they are just not interested. It's very hard for environmental businesses to get finance."

Despite the problems obtaining new investment, he claimed the environmental sector is already starting to recover from the recession – meaning healthy returns could be possible in future for those wishing to finance green innovation.

In a positive move last week, the government vowed to provide an extra £20 million in funding for the development of clean energy technologies.

Ed Miliband, the climate change secretary, announced the additional allocation in government-backed venture capital support.

It came as the latest instalment of a £405 million fund made available for low carbon development in the Budget 2009.

CEBR says interest rates will be frozen until 2011

Thu, 08 Oct 2009 13:25:08 GMT

The Bank of England's base rate will not rise throughout 2010, according an independent consultancy.

Speaking ahead of the October meeting of the Monetary Policy Committee, Benjamin Williamson, economist at the Centre for Economic and Business Research, claimed the historic interest rate low of 0.5 per cent is likely to be kept until 2011 at the earliest.

This prediction counters a previous forecast from the Confederation of British Industry, which projected that a level of two per cent would be reached by the end of 2010.

Meanwhile, the Young Group recently found that residential property investors expect the base rate to rise slightly over the next 12 months to just over one per cent.

Mr Williamson said that "for a couple of reasons" the Bank of England will maintain loosened monetary policy over the next year.

He said: "We don't see base rates lifting from 0.5 [per cent] in 2010; partly to counteract the expected sharp fiscal contraction, but also because the recovery does remain weak, so they have got to keep borrowing costs down."

Mr Williamson also added that with the Inflation Report coming out in November, the Bank could look to expand quantitative easing as a stimulus measure.

London still the top business location in Europe

Thu, 08 Oct 2009 13:21:08 GMT

London remains the best city in Europe to locate a business, according to a new poll.

The European Cities Monitor has named the UK capital as the top commercial metropolis for the 20th consecutive year, despite the banking crisis having a noticeable impact on the City.

Conducted annually by commercial property and real estate brokers Cushman & Wakefield, the study rated London as being best in Europe across a number of categories, including transport links and access to markets.

The variety of languages spoken, skilled workforce, level of training available and international market role of the capital were also flagged up as plus points.

Darren Johnson, chair of the London Assembly, said the accolade reflected well on the general standard of life in the capital.

He added: "In many ways, what is good for Londoners themselves in terms of a healthy environment, a good quality of life and a good transport system are also things that are important for business."

However, he warned that the city's authorities should not become complacent, as issues such as pollution and air quality require serious attention.

Paris was second in the monitor rankings, followed closely by Frankfurt, Barcelona and Brussels.

High street offers great service levels

Thu, 08 Oct 2009 13:21:08 GMT

The majority of consumers believe the high street retail environment delivers better customer service than any other sector, new research has indicated.

According to outsourcer Vertex, the experience provided is still preferred to that offered by online retailers – good news for land-based store owners.

Some 68 per cent of those surveyed said they enjoyed a 'fairly good' or 'very good' service on the high street, compared to just 28 per cent who said this was provided by government agencies.

Vertex reported that gaining customer trust is the key factor for firms seeking to gain high consumer approval rates.

Paul Sweeney, chief executive officer at the firm, said: "If an organisation wants the trust of consumers, it has to earn it by continually communicating in a way that its consumers appreciate and respect."

Last month, Richard Dodd, a spokesperson for the British Retail Consortium, claimed that retailers are responding well to the recession by attempting to offer greater value for money to customers.

The 'explosion' of budget discount stores on the UK's high streets, he suggested, has helped encourage existing firms to bring down their prices – something that is necessary for them to compete in a deflated but competitive market.

Employee engagement can boost morale levels

Wed, 07 Oct 2009 13:45:07 GMT

Employers should be working with their employees to tackle the recession rather than making cutbacks, it has been claimed.

Carolyn Jones, director of the Institute of Employment Rights, was commenting after official figures showed 246,000 people were made redundant in the UK during the second quarter of 2009, an increase of 107,000 on the previous year.

She criticised "a perceived knee-jerk reaction to the recession" from employers, claiming that companies and their staff should combat the ongoing difficulties together.

Ms Jones suggested that the two could agree on proposals for dealing with the recession, with a shorter working week and reduced overtime pay examples of the options available.

Providing such measures are adopted by agreement, there should not be a problem, Ms Jones claimed.

Such changes can not only help to avoid redundancies, she stated, but the additional employee engagement can help boost job satisfaction and potentially productivity.

"If employees are not treated with respect, their discontent will be a ticking time bomb," she added.

According to the Office of National Statistics, the redundancy rate for the second quarter was 9.8 per 1,000 employees, down 2.1 per cent from between January and March but up 4.4 per cent from a year earlier.

Financial services sees business upturn

Wed, 07 Oct 2009 13:43:07 GMT

Companies operating in the financial services sector have recorded a first rise in business volumes for two years, it has been reported.

According to the latest Confederation of British Industry (CBI) and PricewaterhouseCoopers Financial Services Survey, the sector has showed tentative signs of recovery over the last three months.

Levels of business were still considered to be well below normal, but optimism is finally returning, the study found.

Securities traders and investment managers have seen particularly strong volume growth over the past quarter, while banks and building societies expect that growth will resume over the next three months.

Ian McCafferty, CBI chief economic adviser, said there were "signs of a brighter outlook" after two years of exceptionally tough operating conditions.

He added: "Business volumes have increased, for the first time since the onset of the credit crunch, and a fall in running costs helped lift profitability.

"This is concrete evidence of the gradual path to recovery that firms were anticipating in our June survey of the sector."

Earlier this week, Barclays, HSBC, Lloyds Banking, the Royal Bank of Scotland and Standard Chartered announced plans to implement new rules on banker bonus payments.

Tesco sales defy economic gloom

Wed, 07 Oct 2009 13:41:07 GMT

Pre-tax profits at Tesco for the six months to the end of August came in at £1.42 billion, it has been announced.

Commenting on the figures, the supermarket giant's chief executive Terry Leahy said the firm is "well-placed for the global recovery".

He revealed that UK stores had been able to take on 6,500 new employees over the six-month period, highlighting the fact that they have been largely immune to the effects of the recession.

Group sales including petrol rose 8.3 per cent to £30.4 billion, which the firm said represented an 11.4 per cent increase. Like-for-like sales grew 2.7 per cent.

Mr Leahy noted that Tesco's core strengths were "even more important" as it successfully tackles the challenges of recession.

He added: "Our focus on the customer, the consistency of our strategy, an efficient business model, strong local management teams, and a spirit of innovation and knowledge-sharing have enabled us to improve the shopping trip for customers."

Mr Leahy added that by "investing in consistent value" and rewarding customers for their loyalty, the firm has delivered "a robust financial performance".

Last week, Marks and Spencer reported that it had witnessed a 2.7 per cent rise in retail sales for the third quarter of the year – providing optimism for the sector as a whole.

Customer service a vital differentiator

Tue, 06 Oct 2009 15:45:06 GMT

Customer service is "the vital differentiator in business today", according to one industry expert.

Jo Causon, chief executive of the UK Institute of Customer Service, said firms that recognise the talents and contributions of employees are better able to motivate their people, improve consumer loyalty and boost profits.

Speaking at the start of National Customer Service Week, she added that the key to success is to treat customer service as a culture, rather than a department.

Ms Causon added: "You must listen to your customers, deliver on your promises, invest in your staff and be prepared to evolve to meet the changing needs of your customers.

"Organisations will use National Customer Service Week to celebrate customer service as an important part of their DNA, which needs to be embraced by everyone to ensure consistent, world class service is delivered."

According to the Institute of Customer Service, around 90 per cent of customers are likely to tell others about a bad business experience – heightening the need to ensure satisfaction in every relationship.

However, happy customers also tell other people about positive experiences, therefore generating new business for successful firms, the institute claimed.

Expert says Six Sigma can improve business performance

Tue, 06 Oct 2009 15:44:06 GMT

Six Sigma – the data-driven, strategic pursuit of excellence - can help companies of all sizes improve their performance, it has been claimed.

According to Ramesh Kumar, chairman of the Small and Medium Business Development Chamber of India, the business management strategy can help firms reduce wastage and cycle time, sustain improvements, become customer oriented and lower manufacturing costs.

Not only this, but Six Sigma can also enhance product or service quality and capture greater market share by improving a company's competitiveness, he stated.

Mr Kumar commented: "It not just identifies but also removes the cause of defects and variability in manufacturing and business processes. It brings about dramatic improvements in their bottom-line profitability."

He claimed the key to sustained business growth and competitiveness lies in achieving excellence through quality enhancing approaches and processes such as Six Sigma, which lead to repeat orders and improved reputation.

"Mere customer satisfaction, considered an achievement until the recent past, is not enough now," he stated.

According to US energy firm General Electric, which subscribes to Six Sigma theory, the process is designed to help firms focus on developing and delivering near-perfect products and services.

The company explained that if the number of defects existing in a particular process can be identified, these can be systematically eliminated.

Firms advised to follow carbon reporting guidance

Tue, 06 Oct 2009 15:43:06 GMT

Businesses could gain a competitive advantage through the adoption of voluntary guidelines on carbon reporting, it has been suggested.

Commenting after the Department of Energy and Climate Change proposed new guidelines for firms to help measure and reduce their greenhouse gas emissions, Deloitte partner Cindy Cahill said the environmental impact companies make is set to rise up the corporate agenda in the near future.

She called on firms to embrace the new rules, saying that while they are voluntary, customer, employee and investor interests greenhouse gas emissions "continue to grow".

Ms Cahill added: "No doubt achieving these guidelines will be challenging, however it will give businesses much needed clarity.

"This is a very important step for the UK government to take and will give [direction] on moving the carbon agenda forward. It will also make the UK a leader in the new carbon economy."

Larger companies should bear in mind that the Carbon Reduction Commitment, a mandatory scheme, will come into force from April, she added.

According to the Chartered Institute of Management Accountants, finance professionals are increasingly keen to work on carbon reduction projects.

Cost savings encouraging virtualisation adoption

Mon, 05 Oct 2009 16:14:05 GMT

One of the major reasons companies are moving across the virtualised servers is the potential for costs saving benefits, it has been reported.

According to Tony Lock, programme director of Freeform Dynamics, firms have historically tended to have a number of servers working at ten or 15 per cent capacity – one per application.

He said this is "obviously not the most efficient way of running things", with it making more sense to run two or three applications at a time.

Virtualisation allows better use to be made of servers, he explained, which is a "really big sales point" for the technology.

Mr Lock added that there were other potential benefits to be derived from virtualisation, stating that while cost savings have been the biggest driver in deployments to date, this is just "one step on the curve".

"The biggest potential advancement in server virtualisation is to do with actually being able to allocate resources much better in line with demand and make big savings as a result," he said.

According to the organisers of Storage Expo, 90 per cent of UK organisations have already migrated, or are planning to migrate, to a virtualised environment.

A study found that 23 per cent of companies already have the tools needed to support virtualisation, while a further 67 per cent are actively investing in them to allow future deployments.

Five banks agree to introduce bonus rules

Mon, 05 Oct 2009 16:12:05 GMT

Five major banks have signed up to new restrictions on bonuses, it has been announced.

Barclays, HSBC, Lloyds Banking, the Royal Bank of Scotland and Standard Chartered are to implement rules on remuneration agreed at the G20 summit in Pittsburgh, bowing to political and public pressure to take action in the wake of the global financial crisis.

Around 40 to 60 per cent of senior executives' bonuses will be deferred over a three-year period, with 50 per cent in shares.

Under the new rules, previous bonuses may also be clawed back following poor performance, while the banks may be forced to hold more capital if they fail to adhere to their obligations.

A joint statement from the banks read: "In a competitive and international business it is right to make sure that our staff are appropriately and competitively rewarded for sustainable, long-term performance.

"We will work with the Financial Services Authority in adopting these remuneration reforms, recognising that all G20 nations have also committed to their implementation to ensure a level playing field."

Alistair Darling, the Chancellor of the Exchequer, claimed the move should "set the standard" for other UK and international financial institutions to follow.

Finance sector must tackle web fraud

Mon, 05 Oct 2009 16:08:05 GMT

Banks must constantly fight internet fraudsters as they use more and more advanced techniques to steal from their customers, it has been claimed.

According to web security company Finjan, cybercriminals are using new tactics to rob online bank accounts - a trend that is expected to grow.

Yuval Ben-Itzhak, chief technology officer at the firm, said the fight against cybercrime is "definitely an ongoing challenge" for the banking sector.

Banks must trace each and every transaction to identify if it is real or fraudulent, he noted.

Mr Ben-Itzhak added: "Even though the banks are trying to make a different authentication experience, the trojans are trying to hijack authenticated versions of the victims.

"So, it's definitely an ongoing challenge. There is no cook book of 'one, two, three, and you can stop it'."

Online information firm Garlik says UK cybercrime has rebounded to worrying levels not seen since 2006 as a result of the recession and consumer complacency.

It claimed that fraudsters adapted to social and economic changes in the UK to exploit victims in new ways during 2008, committing over 3.6 million criminal acts online.

Gov't makes green technology finance available

Fri, 02 Oct 2009 16:40:02 GMT

The government will provide an extra £20 million of funding for the development of clean energy technologies, it has been revealed.

Ed Miliband, the climate change secretary, this week announced the additional allocation in government-backed venture capital support, which is the latest instalment of a £405 million fund made available for low carbon development in Alistair Darling's Budget 2009.

In his April report, the Chancellor of the Exchequer committed the UK to a 34 per cent reduction in carbon emissions by 2020.

Jemma Robinson, communications manager at the Renewable Energy Association, said her organisation welcomes any asset that increases the availability of finance to the renewables industry.

She said this is particularly the case where emerging technologies are concerned.

"Access to finance is a key issue for the sector and increased investment is urgently needed in order for us to achieve our mandatory 2020 EU targets," Ms Robinson stated.

"We are still waiting for clarity on the £400 million European Investment Bank money promised in this year's budget. The secretary of state [for energy and climate change] indicated that this should be coming this autumn. We need urgent action."

Earlier this week, data networking firm Cisco announced plans to educated customers and clients on the uses of ICT for carbon output reduction.

Customer migration sees online advertising eclipse TV

Fri, 02 Oct 2009 10:42:02 GMT

Online advertising spend in the UK has overtaken television expenditure for the first time, it has been reported.

According to the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PWC), web marketing grew 4.6 per cent to £1.752 billion in the first half of 2009, despite a reduction in overall spending due to the recession.

The IAB and PWC stated that the internet has now become the UK's single biggest advertising medium, with advertisers following their audiences online.

For companies this may offer encouragement, given the relative costs of promoting their activities online as opposed to on TV.

Commenting on the study, Guy Phillipson, chief executive of the IAB said internet advertising had "beaten all expectations" to achieve growth in the most challenging market conditions.

He stated: "Online display has performed notably well against its peers in TV, print and radio despite more than £1.5 billion being wiped off the advertising industry. We have a rollercoaster of a year ahead but even in tough economic conditions marketers still recognise the value, accountability and measurability of online advertising."

Simon Mansell, managing director of TBG, recently claimed that because online advertising is traditionally used for direct response, it will hold up well during the recession.

Recognising risk aids business management

Fri, 02 Oct 2009 10:40:02 GMT

The major risk facing businesses at present is a failure to recognise the changing nature of their trading environment, it has been claimed.

According to George Derbyshire, chief executive at the National Federation of Enterprise Agencies, understanding emerging trends in business is vital as companies need to be able to adapt their growth strategies.

He was commenting after a report from Aviva found that in order to survive the recession, more than half of small and medium enterprises have taken deliberate steps to diversify their business.

The study suggested that many firms are being forced to take unnecessary risks, such as enforced reductions in overheads, which is leading to cut-backs in business protection and operational security.

Mr Derbyshire said: "Risk is an unavoidable part of business, and for many people that is part of the attraction. The trick is to manage risk and to do that you must firstly recognise it."

Customers, partners, suppliers and debtors can all pose dangers, he noted, but it is easier to plan if these risks are acknowledged.

"There are lots of things which can be done - being rigorous in billing debtors, doing credit checks, refocusing your marketing, for example," Mr Derbyshire claimed.

Fashion expert backs online sales move

Fri, 02 Oct 2009 10:37:02 GMT

Midmarket fashion retailers such as H&M and Zara are right to be looking to move onto the internet, one sector commentator has suggested.

Sarah Peters, a senior Verdict retail analyst specialising in fashion, said customers are now looking at online "as a far more popular way of shopping within clothing".

Zara's owner Inditex announced plans to begin web sales on September 16th, with H&M following suit on September 28th.

Ms Peters suggested that this migration is something the firms "really needed to do" to consolidate their market position and drive new revenue channels.

She added: "They have actually got a market now where most of the major players are online.

"I think it is very difficult for people who have very big ranges and also retailers that have a strong international presence as well to manage the online process, so it will be very a challenging operation," Ms Peters said.

However, in the long term the retailers will "reap the benefits" of this move, she suggested.

Electronic payment firm PayPal recently predicted that high street sales will fall by up to £8.3 billion by the end of 2011 while web retail sales will grow by as much as 137 per cent.

Businesses drawn to server virtualisation

Thu, 01 Oct 2009 10:38:01 GMT

Server virtualisation is becoming increasingly popular with businesses as the industry advances, one technology firm has reported.

Chris Bone, enterprise products and solutions specialist at Fujitsu, claimed many firms are looking to upgrade their IT systems in this area, meaning take-up should increase in the coming years.

He noted that less than ten per cent of server infrastructures have been virtualised to date, but the benefits in terms of accessibility and security will see a surge in global shipments.

Mr Bone stated: "I think what we will see is a lot of organisations who invested in virtualisation technologies for development and test will start to move them into mainstream production, so that's where the acceleration of spend will come from in those areas."

Research conducted by Fujitsu recently indicated that almost two-thirds of leading IT professionals believe their infrastructures are not flexible enough to meet changing business priorities.

Of the 200 senior IT professionals surveyed in the report, 65 per cent agreed that they will be very focused on strategic investments to improve the ability, flexibility, responsiveness and adaptability of their computing in the future.

Half of all respondents said the use of older inappropriate technology constrained their ability to drive revenue.

BRC calls for restraint in minimum wage rises

Thu, 01 Oct 2009 10:38:01 GMT

The British Retail Consortium (BRC) has called on the government to exercise restraint where the national minimum wage (NMW) is concerned.

With a 1.2 per cent rise taking the NMW from £5.73 to £5.80 per hour from today, the BRC has warned of the risks of making any more significant increases to this next year.

Earlier this week, prime minister Gordon Brown pledged to increase the NMW every year until 2014.

The BRC advocates an annual NMW rise of between zero and one per cent, but no higher as it bids to protect the interests of employers.

Stephen Robertson, BRC director general, commented: "Against a background of really tough trading conditions, where retailers need help to maintain and go on creating jobs, this is a sensible increase and one that BRC evidence played a major part in achieving.

However, he asked that the Low Pay Commission, which is currently considering a rise for 2010, provides a more predictable relationship with average earnings once economic stability has returned.

Mr Robertson claimed that by looking further ahead than the current six-month timeframe, businesses would be given more certainty about future costs, bolstering the decision making processes.

Meanwhile, John Cridland, deputy director-general of the Confederation of British Industry, has claimed that there is a danger of undermining the Low Pay Commission's standing if politicians make promises about what will happen to the minimum wage in future.

Group sales up again at Marks and Spencer

Thu, 01 Oct 2009 10:36:01 GMT

Group sales at leading high street retailer Marks and Spencer (M&S) rose by 2.7 per cent during the third quarter of 2009, it has been reported.

Latest figures published by the firm indicated that total UK sales were up 1.9 per cent in the three months to September, continuing the improving trend seen throughout this calendar year.

UK like-for-like sales fell by 0.5 per cent, but a 30 per cent rise in online purchases did more than restore parity.

Clothing sales were up 2.7 per cent and international sales rose by 9.6 per cent.

Commenting on the figures, M&S chairman Sir Stuart Rose said the firm was "pleased to report continuing improvement" in its performance.

He stated that the figures indicated that steps to combat the economic downturn were apparently working.

Sir Stuart added: "While there is more visibility in the marketplace and consumers appear more confident, we continue to be cautious about the outlook. We expect 2010 to be a tough year and we will continue to run the business accordingly."

Last week, the Office for National Statistics reported that retail sales stagnated during August 2009 in the UK.

SMMT welcomes car scrappage scheme extension

Wed, 30 Sep 2009 11:52:30 GMT

The Society of Motor Manufacturers and Traders (SMMT) has backed the government's decision to extend its popular car scrappage scheme into 2010.

Lord Mandelson told the Labour Party Conference on Monday that the initiative is to receive a £100 million boost, funding an extra 100,000 cars and vans.

The scheme, which sees motorists being given a £2,000 'helping hand' towards the purchase of a new car, has been well received by manufacturers, who have struggled to move vehicles from the production line during the recession.

SMMT chief executive Paul Everitt commented: "Lord Mandelson's announcement of an extension to the car scrappage scheme is an extremely important decision that will inspire consumer and business confidence.

"It will help to stimulate demand, giving more consumers access to it, and create a bridge to a period when economic growth is strengthened and more sustainable."

He said the additional 100,000 vehicles should help to counter the likely negative impacts of a return to the higher rate of VAT in January and the introduction of first year Vehicle Excise Duty rates.

Michael Cole, managing director of Kia Motors, echoed these sentiments, saying the extension would help maintain momentum across the motor industry into the new year.

Feedback essential ahead of web migration

Wed, 30 Sep 2009 11:50:30 GMT

Businesses wanting to move a strong product onto the internet should ask their customers what inspires them, it has been claimed.

Katharine King, research director at Metro, told attendees at ad:tech London that there is no better way to find out what consumers think of a product or what motivates them than seeking direct feedback.

She said the daily newspaper went out and spoke to its advertisers and clients to ask them what they thought, learning plenty about consumer habits in the process.

"That seems a blindingly obvious thing to do but it's often a stage that does get missed out," Ms King added.

"If you really, really want to know what motivates your customers there's no way better than spending an hour of their time asking them, without interpreting what they are saying or interrupting, and letting them talk."

Ms King said that digital is a very difficult area to keep on top of due to the fact it keeps changing, meaning it is especially important to pick up on emerging trends at an early stage.

ad:tech London was an interactive advertising and technology conference and exhibition that took place at National Hall, Olympia, between September 22nd and 23rd 2009.

CMI calls for commitment to training schemes

Wed, 30 Sep 2009 11:49:30 GMT

UK firms cannot afford to abandon professional development schemes if they wish to retain their best employees, it has been suggested.

Ruth Spellman, chief executive of the Chartered Management Institute (CMI), said UK firms are facing a skills shortage which employers urgently need to tackle head-on.

She said that while the recession has led to redundancies, some staff are also voluntarily leaving their organisations because the training opportunities provided are woefully inadequate.

Ms Spellman urged employers to use the CMI's new Validation and Accreditation service to assess the quality standards of their in-house training programmes and identify where these can be bolstered and recognised.

She stated: "Improving the standards of management and leadership should be a priority for employers in every sector, and qualifications are an essential part of this goal.

"We are confident that our new service will give employers the tools and resources they need to ensure that the training they offer within their organisations is of the highest possible standard."

Earlier this year, Dr John McGurk, advisor for learning and talent development at the Chartered Institute of Personnel and Development, claimed it is "absolutely vital" that people develop skills and capability in difficult times.

He suggested that workers need to be continually learning and developing in order to improve their employability.

BCC calls for economic stimulus commitment

Tue, 29 Sep 2009 11:03:29 GMT

The British Chambers of Commerce (BCC) has called on the government to continue with its economic stimulus policies in a bid to restore long-term growth to the UK.

In a submission made to coincide with the Labour Party Conference this week, it has called for further commitment to the Bank of England's quantitative easing programme, with the ceiling for asset debt purchases raised from £175 billion to £200 billion.

The BCC has also asked the Chancellor to consider introducing a negative interest rate on commercial bank deposits held at the Bank when he makes his pre-Budget report in the coming months.

Other proposals made include extending the Enterprise Finance Guarantee scheme beyond its conclusion date of March 2010 and delaying the return of VAT from 15 per cent to 17.5 per cent, which is scheduled for January 4th.

The government should also make Small Business Rate Relief payments automatic, maintain real-terms capital spending for transport infrastructure over the next Spending Review Period, scrap the increase in employer National Insurance Contributions planned for 2011, and introduce new-generation Enterprise Zones with reduced regulatory and tax burdens to promote trade, the BCC proposes.

BCC director general David Frost said these are the views of thousands of companies on the front line of this recession, adding that "ministers must take note".

He commented: "With many businesses, and particularly small firms, still experiencing access to finance problems, there is clearly a need for the government to continue with measures that boost money supply."

Earlier this month, Trades Union Congress general secretary Brendan Barber claimed the UK could not afford public spending cuts at the present moment in time.

Proactive HR practices urged after retirement age upheld

Tue, 29 Sep 2009 10:58:29 GMT

Businesses and human resources departments should be managing their workforce without the aid of the default retirement age, it has been claimed.

According to Dianah Worman, a diversity adviser at the Chartered Institute of Personnel and Development (CIPD), firms should aim to keep high performing staff members for as long as they can, and rid themselves of those who are unproductive irrespective of their age.

Referring to the High Court's recent decision to uphold the law allowing employers to retire workers against their wishes when they turn 65, she said companies should recognise that this merely gives them options, rather than a mandate.

She commented: "If you have poor performers in your organisation you should also have the performance management systems to deal with them. You wouldn't wait 25 years to remove a poor performing 40 year-old."

Ms Worman added that many organisations and several government departments have already done away with compulsory retirement ages because they recognise the value of retaining older workers.

"The CIPD encourages all businesses to follow suit," she added.

Heyday, an offshoot of Age Concern, had brought a legal challenge against the default retirement age, claiming it forces productive members of the UK workforce out of jobs.

Gartner calls on firms to embrace CAC

Tue, 29 Sep 2009 10:54:29 GMT

Companies can use context-aware computing (CAC) to better target prospects, increase customer intimacy and raise productivity and collaboration, it has been proposed.

According to research firm Gartner, context will be as influential in mobile consumer services and relationships by 2015 as search engines are to the web.

The firm defines CAC as the concept of leveraging information about the end user to improve the quality of the interaction.

It suggests that new context-enriched services will use location, presence, social attributes and other environmental information to anticipate an end user's immediate needs.

As a consequence, the user will be better able to offer sophisticated, situation-aware and usable functions, Gartner adds.

Anne Lapkin, research vice-president at the firm, said: "Initial implementations of context-enriched services are already in play, and early adopters will find it easier to implement more-sophisticated services in the future.

"Although the rudiments of CAC have been around for some time now, it is a disruptive technology that has the potential to be a real 'game changer' in terms of competitive advantage."

Earlier this month, IBM reported that chief information officers are increasingly being charged with driving growth by maximising the use of new technologies within their firms.

Virtualisation can help business continuity planning

Mon, 28 Sep 2009 11:34:28 GMT

Virtualised servers can be used to help companies in their attempts to prepare data disaster recovery solutions, one expert has suggested.

Ronan Kavanagh, chief executive of the SpamTitan suite of products, claimed that the technology allows firms to build IT infrastructures that are "agile, resilient and highly scalable".

Writing for sys-con.com, he said a range of benefits can be derived from moving towards virtualisation, including reducing energy costs and greater responsiveness.

Mr Kavanagh explained that virtualisation can "practically eliminate the need for maintenance windows and unscheduled downtime", ensuring high availability for the key applications that drive a business.

"Deploying a physical server takes time: the server must be in order, wired into the network, and the necessary software installed and configured. Bringing a virtual server online is, however, a much easier and speedier process," he added.

Earlier this year, the CDW IT Monitor predicted that midmarket firms would be increasing their investment in IT products during the second half of 2009.

It indicated that confidence was returning among IT decision makers, increasing the likelihood of new deployments being made.

Some 83 per cent of medium-size businesses were expected to purchase new software during quarters three and four of 2009.

Branding crucial as recession ensues

Mon, 28 Sep 2009 11:31:28 GMT

Branding helps companies distinguish themselves in an overcrowded marketplace and should not be ignored, it has been suggested.

Ray Jones, head of communications and external affairs for the Chartered Institute of Marketing, commented that a brand is not only a seal of quality, but also a key way of gaining and retaining customer trust by creating a sense of recognition.

He said that failing to promote your brand through a recession can be fatal, citing the example of carbonated beverage firm Moxie as an example.

Mr Jones explained that the firm was a market leader in the 1930s, but its directors thought it would be in bad taste to promote a luxury drink during the Great Depression - a time of mass unemployment.

"The Coca-Cola company had no such qualms. The rest is history," he noted.

"The way for companies to survive is not to reduce prices and risk devaluing itself. The answer, to quote the wartime poster that seems to fit the recession zeitgeist at the moment, is to 'keep calm and carry on'."

Earlier this year, CNN International executive vice-president Jonathan Davies urged businesses to change their perception of advertising, viewing it as an investment rather than a cost.

Firms urged to show active interest in green IT

Mon, 28 Sep 2009 11:29:28 GMT

Businesses must start take more of an active interest in green IT development if they are to reduce energy costs and meet compliance requirements, it has been suggested.

According to a recent interactive poll conducted by Gartner, firms are not paying sufficient attention to the process of measuring, monitoring and modelling energy use in data centres.

It found that although green IT issues remain at the top of the agenda, vendor and green procurement is considered "a low priority activity" for many companies over the next 18 months.

Some 68 per cent of those questioned said they thought data centre energy management was their most important green IT issue for the next 18 months, but only seven per cent said they were occupied with pushing suppliers to create more energy efficient solutions.

Rakesh Kumar, research vice-president at Gartner, said many managers feel that they have to deal with more immediate concerns before focusing attention on their suppliers' products.

He added: "In other words, even if more energy efficient servers or energy management tools were available, data centre and IT managers are far more interested in internal projects like consolidation, rationalisation and virtualisation."

Earlier this month, Michael Feldman, the editor of HPC Wire, claimed that the majority of green IT investments are made with a view to minimising total cost of ownership.

Customer service focus drives revenue

Fri, 25 Sep 2009 10:40:25 GMT

UK businesses lose a total of £15.3 billion each year due to poor customer service, it has been reported.

According to a study conducted by Genesys Telecommunications Laboratories, this is the cost of customer attrition and abandoned purchases brought about by service failings.

The report indicated that 73 per cent of consumers have ended a relationship due to a poor customer experience, with the average value of each lost relationship being £248 per year.

Some 39 per cent of consumers said it is critical for companies to provide more intelligent self-service so they are not trapped in unproductive automated systems, while 83 per cent would welcome more proactive engagement if it improves their experiences.

Daniel Hong, lead analyst of customer interaction at Ovum, said the cost of customer frustration "continues to grow".

He added: "We're advising enterprise businesses in the UK to develop cohesive strategies that straddle all channels of customer communication.

"The difference between delivering exceptional customer service and merely providing acceptable service is pronounced. Differentiating on service, especially in service-centric industries... is how enterprises can retain customers in today's challenging business climate."

Last week, Tim Williamson, customer director at TUI Travel, told the Daily Mirror that ensuring customer satisfaction is vital for all firms during the tough economic climate.

BRC concern over business rate increases

Fri, 25 Sep 2009 10:39:25 GMT

UK firms need greater protections against the impacts of next April's Business Rates increase, it has been claimed.

The British Retail Consortium (BRC) says government plans to mitigate losses do not go far enough, given that the change will leave retailers paying £5.83 billion of England's £23.44 billion total business rates revenue.

It claims ministers are right on both the scheme's five-year duration and how to pay for it - by capping both gains and losses - but wrong to expect it to balance its books every year.

Some firms are set to see their bills rise as a result of the business rates revaluation, while others will see them fall – however regional disparities mean companies in the south-east of England are set to be most affected.

The BRC says the government should be capping business rates rises at five per cent in the first year, rather than 12.5 per cent, especially in light of the economic downturn.

Tom Ironside, BRC director of business environment, commented: "At a time when shop price deflation has arrived, piling costs like these onto retailers is a direct threat to their ability to maintain and create jobs.

"Retailers need to be cushioned from the worst effects of revaluation on their business rates bills."

Last week, the Office for National Statistics reported that UK retail sales stagnated during August 2009.

Gartner predicts increase in IT security spending

Fri, 25 Sep 2009 10:37:25 GMT

Businesses are set to spend more on IT security next year, it has been claimed.

Gartner believes that the global security software market will grow to $14.5 billion (£8.95 billion) in 2009, up by eight per cent on 2008.

Shane Wright, IT director of eDigitalResearch, said growth will be spurred by the fact that firms "keep on getting infected" with viruses and therefore will continue to upgrade their security software.

In addition, the diversification of security software firms into providing a fuller, more coherent service "as opposed to nuts-and-bolts pen testing and audits", will encourage investment, he proposed.

He added: "Increases in awareness by the chief technology officers is the primary driver – the requirements of a robust security regime for an organisation have not materially changed, just historically many organisations have been ignorant of their obligations."

Investments in IT security may prove to be worthwhile for businesses, based upon the findings of a recent PandaLabs report.

The firm claimed that on average, 37,000 new viruses, worms, Trojans and other security threats appear every day. Of these, 71 per cent are Trojans, designed mostly for identity theft.

PandaLabs said the number of computers infected by malware designed to steal confidential, personal or banking details has risen by 600 per cent over the last 12 months.

G20 summit to focus on global economic recovery

Thu, 24 Sep 2009 11:11:24 GMT

The global economic crisis will be the main theme for discussion as US president Barack Obama, hosts the latest G20 summit in Pittsburgh today.

Some 19 leaders of developed and developing countries are to meet for talks, with calls for greater regulation of the financial sector, the closure of tax havens and relief for the poor set to be top of the agenda.

One year on from the collapse of Lehman Brothers, many of the leading global economies are now showing signs of recovery, with Germany and France among those to move out of recession.

The G20 meeting will focus on ways to continue to encourage such growth and a return to prosperity.

Mr Obama commented: "The Pittsburgh summit is an important opportunity to continue the hard work that we have done in confronting the global economic crisis and renewing prosperity for our people.

"Together, we will review the progress we have made, assess what more needs to be done, and discuss what we can do together to lay the groundwork for balanced and sustainable economic growth."

The G20 nations, which represent 85 per cent of the world's economic output, met earlier this year in London at a summit hosted by Gordon Brown.

CBI concern over economic prospects

Thu, 24 Sep 2009 11:10:24 GMT

Although growth this quarter should mark the end of the recession, conditions in the UK will remain tough for some time yet, the Confederation of British Industry (CBI) says.

CBI director-general Richard Lambert says it is difficult to see where demand growth will come from in the short term.

He said firms that have run down their stocks will now be starting to raise output to meet demand, and consumers are likely to bring forward spending before VAT rises, but there is "no clear driver of robust economic growth" into 2010.

Mr Lambert added: "Growth next year will remain very weak, while job losses will continue and household consumption will stay tightly squeezed.

"The sharp fall in business investment this year is a real concern, as are the public finances, and both will affect UK economic prospects in the years to come."

The CBI predicts that UK GDP will post quarter-on-quarter growth of 0.3 per cent in 2009 Q3, edging up to 0.4 per cent in Q4.

However, it says 2010 should start with very weak growth of only 0.1 per cent in Q1 2010, and 0.3 per cent in Q2.

Online ad spending to be sustained

Thu, 24 Sep 2009 11:08:24 GMT

Online advertising is likely to hold up better than channels like TV or outdoor, one expert has claimed.

According to Simon Mansell, managing director of TBG, online advertising is traditionally used for direct response which does not generally diminish during a recession.

He claimed that as businesses still need to bring in customers, they are committed to this relevant and efficient marketing channel.

The fact that people now spend 25 per cent of their time online is also encouraging greater spending in this area, Mr Mansell added.

"Although less than 25 per cent of spend is online, it is a natural progression," he said.

Mr Mansell was commenting after the latest report from WARC claimed that total advertising spend in the UK had fallen by nearly a fifth in the second quarter of 2009.

The report shows that this has now decreased for six successive quarters – including a fall of 18.8 per cent in quarter one this year.

However, online ad spend barely dipped in the three months to June despite a 1.7 per cent drop in the year's first quarter.

Businesses need data security education

Wed, 23 Sep 2009 15:36:23 GMT

Businesses have been advised on how to be aware of data security issues by one expert speaking at the Gartner Information Security Summit.

Spencer Kelly, presenter of BBC's flagship technology programme Click, told visitors to the event that cyber crimes will never disappear but network security procedures can be put in place to avoid them.

The expert claimed cyber crime will never be wiped out in a similar way in which crime will not be eradicated "in the real world".

He added: "Cyber crime is big business and organised criminals have therefore [become interested] because there's so much money to be made. There is an entire economy - it's a proper industry that has built up where you have different levels of service providers."

Mr Kelly claimed network security protection is a better course of action for businesses than to fight the issue.

He called for international authorities to cooperate and make more information available to businesses on how they can equip their network security tools and exercise vigilance.

Recent figures from Gartner estimated that the worldwide security software market increased by 19 per cent during 2008 and predicted it will grow by 13 per cent in 2010.

Cloud computing sector must protect corporate information

Wed, 23 Sep 2009 15:23:23 GMT

Protecting corporate information from unauthorised parties will become the major cloud computing issue in the near future, it has been suggested.

According to Bill Mann, senior vice-president for strategy in the security management business unit at IT firm CA, access to data is to be "the most pressing safety concern" for the industry.

He explained that companies and other organisations will be asking themselves how they can have the same amount of trust in cloud service providers as they do their own IT department.

Speaking at the Gartner Information Security Summit yesterday, Mr Mann described this as a "big hole" in the technology because cloud service providers "can't really answer basic questions in terms of who's accessing your data."

He added: "I think that there is a lot of noise in the market at the moment around the cloud. It is very, very interesting... how much transparency that service provider provides you, so you can say 'here's my service level agreement and this providers providing the level of capability to this service level agreement and that has been assured'."

The summit, organised by information technology research and advisory company Gartner, aimed to tackle information security priorities, strengthen tactics and develop the role of information security professionals.

Firms warned over approach to BPM

Wed, 23 Sep 2009 15:21:23 GMT

Companies should avoid using business process management (BPM) as simply a cost-reduction strategy, it has been suggested.

According to business coach and Six Sigma black belt Mark Macgregor, firms are increasingly focusing on this area as the recession ensues, but using BPM solely to save money risks squandering the real competitive advantages it can bring.

He said there is no doubt that a well-managed process-centric company is "more agile, more able to keep costs under control" and better equipped to understand the value of any investment it might make, but not necessarily in a better position to deliver real growth.

Mr Macgregor added: "In the final analysis, it is revenue growth that will deliver the ultimate long-term returns that investors are seeking, and process-centricity plays just a small part in that.

"When bringing customer-centricity together with process-centricity, it becomes apparent that it is this combination that equals increased revenue."

He said it is revenue growth that is a key to long-term financial success, meaning a focus on customer-centricity - the establishment of an intimate relationship with clients and understanding of their needs – is required.

Gartner recently claimed that BPM suites can deliver a fast return on investment when firms choose the application most suited to them.

Christmas marketing must not be forced

Tue, 22 Sep 2009 15:33:22 GMT

Businesses already planning their Christmas marketing push need to ensure they do not force their campaigns on consumers, according to one industry expert.

Ross Kramer, chief executive officer of email marketing firm Listrak, claims that without careful planning then a holiday marketing push can also increase their opt-out rates.

The expert recommended that firms use "automated drip campaigns" for the Christmas marketing campaigns, with messages sent daily or weekly and separate from regular mailings.

A message could also be send to subscribers giving them the option of opting-in for the new campaign.

Mr Kramer says: "Too many emails at too high a frequency can have even long-term subscribers crying foul and unsubscribing or hitting the Report Spam button.

"You can keep your subscribers happy and prevent list attrition by creating targeted drip campaigns. It's a smart way to give subscribers control of their inboxes."

It is more important for marketers to refine and improve their marketing strategies in order to gain market share, and an increase in email frequency would just do long-term damage to any subscription list, adds the expert.

American Express's Open Small Business Monitor recently showed that 65 per cent of companies are now looking to boost their operations by using online marketing.

Paternity proposals could benefit firms

Mon, 21 Sep 2009 15:37:21 GMT

Government proposals for paternity leave could benefit firms as they could improve their flexible working practices, according to one management expert.

Families are set to be granted new flexibility under new plans scheduled to come into force in April 2011, where workers could transfer up to six months leave to the father if they wanted, once the mother has returned to work.

Ruth Spellman, chief executive of the Chartered Management Institute, claims the plans could be beneficial to firms as they could improve their staff retention levels.

Employees could also benefit from the scheme as it could help them to manage their work-life balance more efficiently, she adds.

Ms Spellman says the increased paternity leave "is a positive step further towards equality in the workplace".

"It should be seen by businesses as an opportunity to introduce or improve flexible working practices in order to retain the organisation's top talent," adds the expert.

"Such practices have a significant impact on employee motivation, engagement, productivity and overall performance."

Recent research by Workingmums.co.uk found that mothers in employment rate a desire for flexible working as "very important" to them.

A possibility for home working was also identified as desirable by the working mums surveyed.

Small firms optimistic about future

Mon, 21 Sep 2009 15:36:21 GMT

Small businesses are increasingly confident about their prospects, new research has revealed.

The American Express Open Small Business Monitor found that 55 per cent of entrepreneurs have an optimistic outlook on their prospects, a figure up from 45 per cent in March.

It also showed that 26 per cent of small business owners are reporting expanding opportunities, with 44 per cent of these claiming this is the result of less competition in the market.

Looking ahead, 41 per cent of respondents said their top priority for the next six months was maintaining current sources of refine and only a quarter said they are looking to grow their business.

Susan Sobbott, president of American Express Open, said there are "two clear stories" being told by small business owners.

"Many small businesses are seeing signs of improvement, yet other firms are still struggling to keep their enterprise afloat," she said.

"For the first time since 2007, the majority of small businesses are optimistic about the near-term future."

Recent research by Citibank found that small business owners are finding it easier to expand and grow due to the recession, with a third stating the availability of talent has improved due to the downturn.

Employee investment provides competitive advantage

Fri, 18 Sep 2009 14:09:18 GMT

Companies which continue to focus on investment and employee engagement will emerge as clear leaders after the recession, it has been claimed.

According to PricewaterhouseCoopers human resource services partner Michael Rendell, the winners and losers of the war for talent are "starting to reveal themselves".

He said firms that continue to offer their employees new opportunities and invest in their employees are at a competitive advantage.

Mr Rendell added: "Some of the UK supermarkets are a great example of where brave people management decisions have paid off to help them secure the next generation of leadership cadre and pick up top-performers at all levels from different industries.

"Other companies appear to have panicked and made decisions based on short-term gain that will have long-term repercussions for their people pipeline and their future prospects."

The comments came after PricewaterhouseCoopers was voted the High Fliers Top Graduate Employer of the year for a record sixth consecutive year.

Some 15,000 people are employed by the firm across the UK, with 1,000 graduates taking up entry-level positions every year in its tax, advisory and assurance practices.

Firms urged to allow flexible working

Fri, 18 Sep 2009 14:08:18 GMT

Business seeking to retain their top female talent should offer smart working options for those wishing to raise a family, it has been suggested.

According to a new survey from the WorkingMums group, 79 per cent of mothers said flexible working was the top priority for their careers.

Researchers also found that 54 per cent of mothers would accept a less well paid job in return for flexibility.

Commenting on the study, babyworld.co.uk editor Debbie Bird said company employers needed to realise actions they take during the recession that affect their employees will be remembered.

She added: "When better times return the employer that has fairly and respectfully treated its workforce will keep the best staff.

Ms Bird said home working was "a way of the future" and definitely one option for businesses to consider.

"The benefits are huge for a proactive and imaginative employer who can challenge the work ethic and start employing mums in the workforce, it is definitely the way forward to a dynamic and exciting workforce."

According to WorkingMums, a full-time job with flexible hours is the ideal situation for 85 per cent of female professionals with children, while home working is regarded as ideal by 54 per cent.

Retail sales stagnate during August

Fri, 18 Sep 2009 14:06:18 GMT

UK retail sales remained unchanged in August from July, according to the Office of National Statistics (ONS).

Latest figures paint a stagnant picture for the sector over the summer, although a year-on-year rise was witnessed.

The ONS reported that the volume of retail sales in August was 2.1 per cent higher than in August 2008, while sales volumes for the three months to August were up 2.7 per cent on the equivalent period a year ago.

Stephen Robertson, director general at the British Retail Consortium, said the findings confirmed that consumers remained cautious after a difficult year.

He stated: "The official data confirms our own findings that the strong retail sales in June and July were not sustained.

"With unemployment rates at a 14-year high and predicted to increase into next year, most people are still very cautious about spending on expensive items – unless there are sufficient discounts.

Mr Robertson said significant like-for-like rises could be expected for the autumn and winter, on the basis that total sales growth fell below zero from October onwards during 2008.

This week, high street stores John Lewis and French Connection both reported falls in sales volumes.

Malicious websites on the increase

Thu, 17 Sep 2009 15:44:17 GMT

Network security for businesses could be increasingly compromised by malicious websites, according to new research.

A study by Websense claims there was an increasing number of web attacks during the first half of 2009 which used Web 2.0 sites to infect computers and commit fraud.

The research shows there was a 233 per cent growth in malicious sites during the last six months and a 671 per cent rise year-on-year.

According to Websense, 77 per cent of sites with malicious code are legitimate sites which have been compromised, while 95 per cent of all comments to blogs, chat rooms and messages boards are spam or malicious.

In addition, 85.6 per cent of all unwanted emails in circulation contain links to spam or malicious websites.

"Attackers continued to use blended threats (spam emails with embedded URLs) to lure victims to spam and malicious web sites," said Websense.

"The rise of blended threats illustrates that web security intelligence is a critical component of any email and data security strategy."

F-Secure's News from the Lab weblog recently unveiled that people looking for video's of Patrick Swayze's funeral could stumble across a website in Google's results which downloads a rogue AV which installs a malware infection on the user's PC.

Employer fears over annual leave ruling may not be realised

Thu, 17 Sep 2009 15:42:17 GMT

Many employers may not be overly affected by a new European Court of Justice ruling which allows workers who fall ill on holiday to claw back annual leave they lose as a result, it has been suggested.

Elizabeth Stevens, a professional support lawyer in the employment team at Steeles Law solicitors, said many firms already used their discretion in this area to repay holiday with sick days.

She claimed that where someone has planned holiday and has gone off sick prior to it, many firms already allow that holiday to be taken at a later date.

Ms Stevens said things could potentially be more difficult when someone falls ill while already on leave however, as they may not be able to provide evidence of this misfortune.

She commented: "Would they even be able to get a doctor's note if they are abroad? What kind of proof are they going to have that they were actually ill? This is what might be problematic for employers going forward.

"Of course, employees are still going to have to comply with their employer's rules relating to the reporting of sickness absence, and provide a doctor's certificate for any absence lasting more than seven days in order to be entitled to Statutory Sick pay."

According to data published by the Department of Work and Pensions, 34 million days work were lost to work-related illness in 2007-08.

Firms still see value of live business meetings

Thu, 17 Sep 2009 15:41:17 GMT

Face to face meetings remain extremely important for businesses, despite the advent of telecommuting technology, it has been claimed.

Philip Carlisle, chief executive of the Guild of Travel Management Companies, said that for any sort of sales activity – whether it be contract establishment, account management or continuing customer relationship – traditional meetings cannot be bettered.

He suggested that conference calls and video conferencing were more appropriate for internal business tasks and where senior staff are delegating duties to their juniors.

Mr Carlisle added: "When you know people well and you are colleagues of those people, it is easier to deal with the routine and it is acceptable to deal with the routine other than face to face. For anything business critical, it really requires face to face meetings."

Business travel continues to be extremely important for firms as they seek to meet with clients and partners in a formal yet personal way, he claimed.

Research conducted by British Airways supports Mr Carlisle's claims – a recent study indicated that 95 per cent of business people believe face to face meetings are essential to build long-term relationships.

Financial Ombudsman data shames banks

Thu, 17 Sep 2009 15:39:17 GMT

A new report from the Financial Ombudsman Service (FOS) makes difficult reading for many UK banks, which have been named and shamed for poor service levels.

New data for the first six months of 2009 has revealed which banks received the most complaints from individual businesses, and top of the list is Barclays, closely followed by Lloyds TSB and Bank of Scotland.

On average, the FOS agreed with consumer complaints in 59 per cent of cases, upholding 61 per cent of banking-related complaints, plus 41 per cent of those over mortgages, 70 per cent over general-insurance and 42 per cent of over investment issues.

Adam Phillips, chairman of the Financial Services Consumer Panel, said consumers were at last able to see for themselves how well financial services look after their customers.

He added: "Publication of this data should also encourage the industry to improve, as customers will be able to see which firms treat their customers better."

Which? chief executive Peter Vicary-Smith, added that naming and shaming companies was a victory for consumers but "humiliating for the industry".

"[Lenders] had five years to get their houses in order. We'd now like to see the financial sector going further and publishing more data, particularly on brand names and product types," he stated.

The FOS is the independent service for settling disputes between businesses providing financial services and their customers.

Manufacturing to play key role in economic recovery

Wed, 16 Sep 2009 16:59:16 GMT

Prime minister Gordon Brown has pledged to make manufacturing a priority as part of the economic recovery.

Speaking at the recent Trades Union Congress annual conference, Mr Brown stressed that the sector will be key in helping create jobs and driving the upturn.

"I want a new industrial policy to signal the creation of 1.5 million new jobs for the future – jobs in green industries, in making the low carbon cars that Britain is leading Europe in developing, in new digital services," he said.

"And let's be clear, yes, jobs in the advanced manufacturing which will be central to Britain's long-term future."

The prime minister's speech also marked the first time he has admitted that the government will need to cut public spending, although he added that "vital front line services" would not be slashed.

Earlier this month, it was reported that the UK's manufacturing output had increased in July, having been boosted by sharp improvements in car production.

Data from the Office for National Statistics highlighted that factory output rose by 0.9 per cent in July when compared with the previous month - treble the figure that analysts had forecast.

However, output was still down compared to a year ago.

Businesses urged to ensure workplace fairness and equality

Wed, 16 Sep 2009 15:14:16 GMT

Businesses should attempt to treat their employees fairly if they wish to avoid incurring the wrath of the unions, it has been reported.

According to the Trades Union Congress (TUC) Equality Audit, 65 per cent of unions were asked for guidance on general equalities issues last year, the same proportion received enquiries related to working hours and 63 per cent fielded queries about the gender pay gap, the audit revealed.

A wide range of equalities issues were addressed, including women's pay and employment, disability, age, religion and migrant workers, the TUC said,

Brendan Barber, general secretary of the TUC, said achieving fairness and equality in the workplace is "a core issue" for unions.

He added that the report showed the best way to pursue this is through "successful negotiation and collective bargaining".

Mr Barber added: "Unions have always led the way in calling more friendly family working rights. But unions have an even more important role in delivering a better work-life balance for workers up and down the country.

"Next year the equality bill will come into effect and unions, judging by the results of our Equality Audit, are well placed to ensure that these new rights make a real difference to people's lives."

Earlier this week, Mr Barber called on the government to remain committed to its public spending plans in a bid to stimulate the UK economy.

ONS reports fall in CPI inflation

Wed, 16 Sep 2009 15:12:16 GMT

Inflation fell to its lowest level in almost five years in the UK during August, according to latest figures.

The Office for National Statistics (ONS) found that the consumer prices index (CPI) – the government's target measure - fell from 1.8 per cent to 1.6 per cent.

Falling food prices and a lack of change in household energy bills were said to be responsible for the reduction.

An ONS spokesperson stated: "By far the largest upward contribution to the change in the CPI annual rate came from transport."

He said the largest effect came from fuels and lubricants where prices rose between July and August this year, while a large upward contribution from the purchase of second hand cars was another contributing factor.

Meanwhile, the retail price index inflation measure - which includes mortgage payments - rose by 0.1 per cent to -1.3 per cent.

Mervyn King, the Bank of England's governor, told the Treasury select committee inflation was "likely to be volatile" over the next six months.

Whenever inflation moves to more than one per cent away from the government's target measure – two per cent – the governor is required to write an explanatory letter to the Chancellor of the Exchequer.

Directors urged to recognise fiduciary duties

Wed, 16 Sep 2009 15:11:16 GMT

Company directors should be aware of the greater risks of them being sued in the current economic climate, it has been suggested.

Robin Farquhar, head of specialist lines for Aviva, noted that a director's duty to creditors intensifies in the event of insolvency and with more firms going out of business, the likelihood of facing civil action is increased.

He was speaking after Insolvency Service statistics revealed that there were almost 5,000 compulsory and creditors' voluntary liquidations - a 56 per cent rise on the previous year.

Mr Farquhar explained: "In all types of winding-up, the official receivers can examine the conduct of a firm's past and present directors and officers.

"Insolvency practitioners will often try to recover money for a company's creditors by bringing a claim against a director for either a breach of their duties, or fraudulent or wrongful trading."

He pointed out that a failure to recognise the "ins-and-outs of the law" would act as no defence in such a situation.

"As directors are automatically exposed to unlimited liability, allegations made against them, whether they are guilty or not can be costly," Mr Farquhar stated.

Under the terms of the Companies Act 2006, company directors take greater responsibility for the continued wellbeing of stakeholders such as customers, clients, employees and the environment.

High quality service levels boost profits

Wed, 16 Sep 2009 15:09:16 GMT

Companies which prioritise excellent customer service are rewarded with improved sales, it has been suggested.

Speaking ahead of National Customer Service Week, which runs from October 5th-11th, Jo Causon, chief executive of the Institute of Customer Service, said enterprises that aim for high service standards and recognise the talents and contributions of all their staff will motivate their people.

Consequently, consumers receive a higher level of service, boosting their brand loyalty and increasing overall profitability, she stated.

Ms Causon stated: "Employers increasingly understand that people with the appropriate skills and positive attitudes make a difference with their customers.

"Their personalities and individual qualities always shine through whether contact with customers is face-to-face, remote or online."

She said that in these "tough, challenging times" the loyalty of customers and their relationships with service suppliers are being severely tested, meaning that if they do not receive the reliable, adaptable and available service they desire, they can quickly and easily go elsewhere.

National Customer Service Week is designed to recognise the efforts and promote the achievements of customer-facing staff.

Hundreds of firms across the UK have already registered with the institute to participate in the event.

Warning over possible higher income tax effects

Tue, 15 Sep 2009 16:10:15 GMT

The UK's new 50 per cent income tax rate for high earners may not raise additional revenue for the government as it seeks to restore its balance sheet, it has been suggested.

According to Clearwater Corporate Finance partner Phil Burns, the hike could actually prove counterproductive by dissuading innovation and productivity in the UK, as suggested by anecdotal evidence from the 1970s and 1980s when income tax broke through the 80 per cent barrier.

He said it was possible that by raising taxes, many business owners may be encouraged to sell their shares, downscale production or to another jurisdiction.

Mr Burns commented: "If higher tax does fail to raise the desired amount, the government may have to look for other ways to raise revenues.

"We'd like to know what business owners, managers and advisers think about these issues and gather an informed body of opinion."

Business leaders will continue to hope that figures for the third quarter of 2009 will indicate that the UK has pulled out of recession.

A number of economic commentators have predicted a return to economic expansion between July and September, while the British Chambers of Commerce has altered its growth prediction for 2010 from 0.6 per cent to 1.1 per cent.

Support offered for government economic intervention

Tue, 15 Sep 2009 16:08:15 GMT

The majority of global citizens want their governments to take more control of domestic economies, it has been reported.

According to a BBC World Service poll of 20 countries, 67 per cent of people wanted an increase in "government regulation and oversight of the national economy", while most would support increased public spending to counter the economic crisis.

In addition, 72 per cent of those questioned called for increased investment in green and renewable technology.

In the UK, 60 per cent were in favour of further economic stimulus measures, with additional support for major industries and recession-affected businesses also on the agenda.

Doug Miller, chairman of GlobeScan, which carried out the poll, said it was clear that citizens in many countries are still not seeing "the kind of economic leadership they think is needed" from their national government.

He added: "Particularly low levels of satisfaction in Europe, Japan and Latin America suggest that stronger consumer confidence - seen as essential for economic recovery - will take more time in these parts of the world."

At the same time, the Trades Union Congress has warned that reducing public spending will place additional pressures on many UK firms and lead to further rises in unemployment.

TUC says UK cannot afford public spending cuts

Tue, 15 Sep 2009 16:07:15 GMT

Replacing the government and Bank of England's stimulus programme with public expenditure cuts to reduce the deficit will lead to a 'double-quick double dip' recession, according to one union leader.

Speaking at the annual Trades Union Congress (TUC) conference in Liverpool, TUC general secretary Brendan Barber claimed that both the public and private sectors would suffer if such action was taken.

Businesses would struggle due to a lack of government contracts being available for them to bid for, he stated.

According to the TUC, the state currently spends more on goods and services from the private sector than it does on the public sector – last year the total was £167 billion compared to £151 billion.

Mr Barber said spending cuts would push unemployment above the four million mark, proving to be "a scar for life" for many young people who are unable to enter the workplace.

He added: "A double-dip recession would not just be deeper - but also longer. Prolonged mass unemployment would not just do economic damage, but would have terrible social effects. I don't think that Britain is broken, but this would be one way to break it."

Last week, the British Chambers of Commerce said the short-term outlook for the UK economy had improved as it raised its gross domestic product growth prediction from 0.6 per cent to 1.1 per cent for 2010.

Data protection risks to encourage IT security spending

Mon, 14 Sep 2009 14:08:14 GMT

IT security spending is being driven by regulatory changes surrounding data breaches, as well as the damage non-compliance can do to business reputations, it has been reported.

According to research consultancy Gartner, an increase in the amount invested in the area is likely to be seen next year.

The firm says security software and services spending is likely to increase in particular.

Commenting on the report, Nick Heath of silicon.com said companies that irresponsibly breach the Data Protection Act will soon face fines from the Information Commissioner's Office.

"Data breaches remain a problem for both public and private sector organisations," he stated.

"Given that data loss is still a subject that can attract a lot of negative publicity, it makes sense that companies are spending more on security technologies and training," he added.

According to IT security testing, auditing and consultancy company NTA Monitor, one in four business web applications have at least one high risk security issue.

Analysing web applications on behalf of its public and private sector clients around the world, the firm discovered that 27 per cent of all those tested had a high risk issue compared to 17 per cent the previous year.

Retailers urged to take shoplifter precautions

Mon, 14 Sep 2009 14:06:14 GMT

Retailers must take precautionary steps to avoid stock being lost to shoplifters, it has been claimed.

However, Ganesh Selvarajah, a Business Link advisor, said the type of security that is needed depends somewhat on the individual business.

He said it is always important for managers to be conscious of how they lay their store out, what sort of monitoring facility they have and how portable highly valuable stock is.

"Obviously with slightly larger items it is a little bit easier to control what goes out the front door or sometimes even the back door," he added.

"It is not always an external source that is the source of the shrinkage, as they call it in retail. In terms of losses, [staff theft] can have a major effect on the business itself."

Mr Selvarajah commented that where security provisions are not in place, it may take weeks or months to realise that stock is being lost – and therefore also profits.

Tagging systems are advisable where possible, he claimed, meaning that an alarm is raised when goods are removed from the store having not been paid for.

Mixed views over car scrappage scheme

Mon, 14 Sep 2009 14:05:14 GMT

Despite the Society of Motor Manufacturers and Traders expressing its view that the government's car scrappage scheme has worked, the Green Party is against any potential extension.

The Financial Times reported last week that business secretary Lord Mandelson has no plans to extend the scheme beyond the £300 million worth of handouts already committed, despite its apparent success.

According to the Society of Motor Manufacturers and Traders (SMMT), over 100,000 vehicles have been registered under the programme since its start, providing a much needed boost to the beleaguered manufacturing sector.

The government has claimed that new cars bought under the scheme have CO2 emissions that are 25 per cent lower than those scrapped, but Darren Johnson, a Green Party member of the London Assembly, remains unconvinced.

He said: "I hope it isn't going to be extended, because this was always about giving a state-aided boost to the car industry rather than a genuine green initiative.

"If you really wanted a genuine green initiative there would be much better ways of the government spending its money – investing in greener vehicles and low energy public transport and so on, rather than simply handing money out to people to buy new cars."

SMMT has reported that scrappage accounted for 25.1 per cent of August new car registrations, with 16,848 units.

Bank of England holds interest rates once again

Fri, 11 Sep 2009 09:55:11 GMT

As expected, the Bank of England has decided to keep interest rates at their historic low level of 0.5 per cent.

The outcome of the Bank's monthly Monetary Policy Committee was that no change will be made to either the base rate or the £175 quantitative easing programme, which will be continued although not extended.

Economic commentators had predicted a lack of action, as positive reports this week have indicated that the UK may be heading out of recession.

First the British Chambers of Commerce reviewed its economic growth prediction for next year to 1.1 per cent from 0.6 per cent, then the National Institute for Economic and Social Research claimed growth would be seen during the third and fourth quarters of 2009.

Defaqto economist Michael Baxter claimed this week that the Bank was likely to take time to assess the impacts of its economic stimulus action before committing to a further course of action.

The Bank stated that its programme of government asset purchases – which is designed to inject finance into the economy – was likely to take another two months to complete but would be kept under review.

Interest rates have remained at 0.5 per cent since the last change on March 5th 2009, when the Bank reduced them from one per cent.

CIOs charged with driving business growth

Fri, 11 Sep 2009 09:54:11 GMT

Chief information officers (CIO) are increasingly being charged with driving growth within their firms, it has been reported.

According to the New Voice of the CIO report from IBM, such executives are working on projects including business process management and maximising the use of new technologies.

IBM says CIOs are generally taking greater note of developments in business intelligence and analytics, virtualisation and green IT, service oriented architectures, service management and cloud computing as they bid to facilitate expansion.

Mobility solutions and unified communications, Web 2.0, collaboration and social networking investments are also moving up the corporate agenda, it has been reported.

Pat Toole, CIO at IBM, said the role of the chief information officer was "changing dramatically".

He added: "On the one hand they are trying to standardise routine processes and simplify their existing IT infrastructure to reduce costs, hence their growing interest in technologies such as cloud computing.

"On the other hand, given the central role that today's CIO performs in driving new business models...it's not surprising that the amount of time they are now spending on driving new kinds of growth for their companies is growing considerably."

Technology association Intellect recently predicted that the ICT industry will be "at the core of new growth" in the UK after the recession.

CBI says intellectual property vital for green IT development

Fri, 11 Sep 2009 09:52:11 GMT

UK firms that develop innovative low-carbon products must continue to have their intellectual property (IP) protected under international frameworks, it has been claimed.

According to the Confederation of British Industry (CBI), the current IP system is working to the advantage of UK firms and must not be thrown away during global climate change talks in Denmark later this year.

CBI deputy director-general John Cridland claimed the government could be preparing to water down green IT property rights in a bid to help the rapid diffusion of low-carbon technologies in developing countries.

This would be a disaster for the economy, he said, as protection for intellectual property is a key incentive for firms to develop and deploy new low-carbon technology.

Mr Cridland added: "Any compulsory licensing of these technologies would be counter-productive and damaging in the longer term by reducing the incentive for business to continue innovating.

"There could be a role for the World Intellectual Property Organisation in facilitating low-carbon IP, encouraging companies and countries to work together to support developing countries."

This week, the CBI also called on the government to continue its research and development tax credit scheme in a bid to encourage low-carbon technology innovation.

TUC calls for commitment to tackling joblessness

Fri, 11 Sep 2009 09:51:11 GMT

Reports published this week indicate that the UK job market appears to be showing signs of slight recovery, but this is no cause for businesses or the government to rest on their laurels, it has been claimed.

The Recruitment and Employment Confederation and KPMG claimed marginal increases in both permanent and temporary staff appointments had been seen during August, confirming the findings of Manpower's Employment Outlook Survey earlier in the week.

Commenting on the studies, a leading union official has urged the government not to relax its focus on tackling joblessness in the UK.

Brendan Barber, general secretary of the Trades Union Congress, said widespread unemployment was still set to continue long in to next year.

He added: "Tentative green shoots must not be used as an excuse for inaction or going back to business as usual, as some in the city will want.

"Tackling unemployment must remain the government's number one priority."

Manpower claimed that employers are reporting improved hiring plans for the first time in three years, raising hopes that new jobs are set to be created.

The last time a rise in projected hiring was witnessed was in the fourth quarter of 2006, the firm claimed.

Gartner predicts IT security spending rise

Thu, 10 Sep 2009 11:44:10 GMT

Research conducted by analyst firm Gartner indicates that growth in IT security expenditure is set to outpace other areas of the sector.

Businesses are increasingly making security a priority in response to growing online threats, with software budgets set to expand by an average of four per cent next year.

Security services budgets are projected to grow by almost three per cent, still significantly outperforming other service areas, the firm reports.

Despite the figure, Gartner principal research analyst Ruggero Contu claimed that the increase might not be enough to safeguard firms' IT systems.

"Businesses should also recognise that new threats or vulnerabilities may require security spending that exceeds the amounts allocated, and should consider setting aside up to 15 per cent of the IT security budget to address the potential risks and impact of such unforeseen issues," he stated.

His colleague Adam Hils noted that even the modest spending increases indicated by the survey show that security spending now accounts for a higher percentage of IT budgets.

Last month, ScanSafe claimed that amount of dangerous web attacks increased by a third between April and June 2009.

The firm blocked 36 per cent more malware during the second quarter of 2009 than it did in the previous three months.

Charity director says training is more important than ever

Thu, 10 Sep 2009 11:42:10 GMT

Firms must continue to invest in their employees as the recession ensues, in order to accelerate economic recovery at the end of the recession, it has been claimed.

International development charity VSO has warned that the UK workforce is being de-skilled as a result of the recession, with pay cuts, slashed training budgets and stalled promotions all contributing to stagnation.

Judith Brodie, director of VSO, said around half the UK workforce is struggling to progress as planned, with one in six employees worried they have lost between one and two years' development time.

She said public and private sector employers could not afford to be shortsighted when it comes to investing in employees' professional development, even though maintaining a skilled and motivated workforce is tough during the recession.

"Employers must think strategically and look to companies such as VSO for creative, cost-effective development opportunities. Not only will placements challenge, motivate and re-invigorate, their skills can make a dent on global poverty and even save lives," she added.

Michael Dean, head of marketing at the National Computing Centre, recently claimed that firms which fail to invest in IT training and maintenance during the recession will find it impossible to maximise the use of their computer systems.

Executive pay frozen as top firms seek to cut costs

Thu, 10 Sep 2009 11:41:10 GMT

The majority of the UK's largest publically-listed firms have implemented a pay freeze for executive directors in 2009, according to business advisory firm Deloitte.

Some 70 per cent of FTSE 350 firms are seeking to manage costs by holding executive remuneration at 2008 levels, with the average rise being 1.5 per cent.

Average bonus payments have not decreased despite the recession, Deloitte reports, although the performance-related pay potential has decreased in the majority of top firms.

Carol Arrowsmith, partner and head of the remuneration team at Deloitte, suggested that pay committees and executives themselves were responding both to the economic situation, pressure from investors and the concerns of the public.

She added: "The majority have clearly concluded that to award salary increases to executives in this difficult climate would be inappropriate.

"This is the first time in a good many years that we have seen executive salaries frozen and, even more unusually, we have seen instances of some taking a salary cut."

Stephen Cahill, a partner in the Deloitte remuneration team, suggested that some companies are putting more emphasis on balance sheet measures, introducing targets based on cash flow or debt management, while others have introduced additional measures specifically linked to the current business strategy and the long term health of the business.

"These might include factors such as operational efficiencies, development of new business, and also may include some targets very specific to the industry," he added.

The FTSE 350 incorporates the largest 350 companies by market capitalisation with a primary listing on the London Stock Exchange.

Chief executives urged to champion business intelligence

Wed, 09 Sep 2009 13:18:09 GMT

Business intelligence (BI) has become a "competitive necessity" for organisations around the world and it is the responsibility of company leaders to introduce such initiatives, it has been claimed.

Writing for Express Computer, Kesavan Hariharasubramanian, principal BI consultant at PricewaterhouseCoopers, said that when firms introduce intelligence schemes, a top-down approach must be taken initially.

Every member of the organisation must appreciate the benefits of BI in order for it to become integral to operations, meaning a top-level sponsor is needed as an advocate, he says.

Mr Hariharasubramanian commented: "An IT head such as a chief information officer sponsoring the initiative may not be able to take it very far and most often [it] might end up getting abandoned or the BI system, even if implemented, might not find any users."

He said that as the chief executive sets the vision, mission and the goals for a company, it should be they who take an active role in introducing effective use of BI.

"BI is an initiative that demands a change in the organisational culture as a pre-condition for successful implementation and it is the very same chief executive who can lead such a cultural change," he added.

Last month, Jennifer LeClaire told News Factor that BI tools can be utilised by companies to help them reduce costs as the recession ensues.

Poor weather results in August retail sales decline

Wed, 09 Sep 2009 13:16:09 GMT

Retail sales were down during August as sales were hit by the poor weather, it has been reported.

The British Retail Consortium (BRC) revealed that volumes were down 0.1 per cent on a like-for-like basis compared to August 2008.

Food sales were stronger than non-food in August, with clothing and footwear struggling in particular.

Stephen Robertson, director general of the BRC, expressed disappointment that the stronger figures of June and July had not been sustained.

He stated: "It's clear the deceptively good sales growth of those months was due to summer sun and price cuts – not any major revival in how customers are feeling. What spending we now have is all about value and essentials.

"In August, food sales continued to do better than non-food. After two months of growth, clothing and footwear are well down. People are holding off buying autumn and winter clothing till they actually need it."

In addition, Mr Robertson claimed that most people remain "very reluctant" to spend on expensive household items, unless they are sufficiently discounted.

Last week, professional services firm PricewaterhouseCoopers reported that the 2.5 per cent reduction in VAT has done little to encourage consumer spending.

Nine out of ten consumers said they had not knowingly made additional purchases since the 17.5 per cent rate was reduced to 15 per cent last autumn.

CBI calls for R&D commitment to help green tech sector

Wed, 09 Sep 2009 13:15:09 GMT

The UK will only be able to lead the way in low-carbon innovation if the government maintains and improves the research and development (R&D) tax credit scheme, it has been claimed.

According to the Confederation of British Industry (CBI), the initiative encourages investment – crucial to the UK economy as it attempts to pull out of recession.

The CBI has proposed further policies to support cutting-edge industries that help cut carbon output, changes to government procurement to foster take-up of green IT and other environmentally friendly technology, and accelerated national infrastructure projects in areas such as energy generation.

R&D tax credit schemes give companies tax relief and can either reduce their tax bill or provide a cash sum, the organisation adds.

John Cridland, the CBI's deputy director-general, said the UK has great expertise in low-carbon technology and research.

He stated: "This must be encouraged and supported by government, but we also need policies that help to implement advances in technology in practical and commercially-viable ways.

"We need to turn brainpower into business success to keep Britain at the cutting-edge of low-carbon technology and be rewarded for our expertise in this area. Today's recommendations would help this happen."

Josh Krischer, the founder of independent analyst and data centre consulting Krischer & Associates, recently claimed that firms can reduce costs by redesigning and upgrading their computer, telecommunications and storage systems to use less power.

Manufacturers urged to use advisory service

Tue, 08 Sep 2009 11:31:08 GMT

Manufacturers seeking to reduce costs should access free support offered through the Manufacturing Advisory Service (MAS), it has been suggested.

Adam Buckley, head of programmes for The Manufacturing Institute, said the practical help on offer had been proven to help businesses reduce expenditure.

He said the highly successful support programme is available nationally and addresses the urgent needs of British manufacturers by delivering hands-on advice and assistance from experts in a wide range of manufacturing disciplines.

"Additional funding through MAS to promote access to low carbon technologies and advanced manufacturing techniques has recently been announced," he added.

Mr Buckley commented that order books and margins remain the primary concern which is driving the need to reduce production costs, which in turn drives the need to reduce raw material and labour costs.

"Recent rises in energy costs are also placing further pressure on recovery. Import costs are still high due to the weak pound but this offers greater export opportunities as the global markets start to recover," he said.

The Organisation for Economic Co-Operation and Development's Interim Economic Assessment said last week that the inventory adjustment underway since the beginning of the year appears to have progressed to a point where inventory changes may no longer be a drag on growth and could add to it in the near term.

Expert says IT security neglect is a dangerous game

Tue, 08 Sep 2009 11:30:08 GMT

Organisations that fail to update security software and use web protection may still avoid most threats, but if their IT setup is attacked or infected the effects could be worse than expected, it has been claimed.

According to Simon Heron, internet security analyst at Network Box, the international managed security services company, firms "can live on the edge a little bit" but when a virus does attack, it will bite hard.

He stated: "We're at that stage with computers – you've still got to check certain things behind the scenes and we need a bit of education to do that.

Mr Heron said more education about the importance of updating security software is needed to make consumers aware that it does not take care of itself, and a basic level of maintenance is required to ensure firms are fully protected.

Continuing, he noted that businesses' IT managers are increasingly overworked due to redundancies caused by the recession, leading to IT security being put "on the backburner because it is not critical."

This, plus the element of complacency seen within some organisations, is a dangerous recipe, Mr Heron stated.

Research published by PC Tools last week indicated that while many web surfers are aware of potential points or sites of infection, they are not familiar with new and unknown threats on social networking sites, instant messaging services and other online communication and networking tools.

No CML backing for building society credit proposals

Tue, 08 Sep 2009 11:29:08 GMT

The Council of Mortgage Lenders (CML) has reacted angrily to new Financial Services Authority (FSA) proposals to limit the ability of such institutions to offer credit.

Last week, the FSA announced plans which could restrict the lending of buy-to-let and high loan-to-value mortgages for borrowers with small deposits.

In response, the CML says any such rules could limit the ability of building societies to compete with UK banks.

Bernard Clarke, spokesperson for the council, said the regulations will create "unnecessary constraints" when there is already a shortage of mortgage funding.

He added: "What we want to see is the completion of a mortgage market review. That should shape what would be needed in terms of the future regulation of lenders. There shouldn't be separate measures targeted at building societies at this stage.

"It's unfair that there [should be] be an extra burden on a particular sector and it may reduce their potential to lend."

Moneysupermarket.com reported last week that the number of enquiries for buy-to-let mortgages has increased by nearly 50 per cent in the past year, while the number of available products has decreased by over 70 per cent.

The average mortgage rate has fallen by 1.95 per cent during the last 12 months from 5.86 per cent to 3.91 per cent.

Defaqto says MPC unlikely to act again this month

Mon, 07 Sep 2009 12:51:07 GMT

The Bank of England's Monetary Policy Committee (MPC) is unlikely to decide to continue quantitative easing when it meets this week, it has been claimed.

Last month, the MPC chose to extend its programme of asset purchases by a further £50 billion to £175 billion, taking many economic commentators by surprise.

However, Michael Baxter, economist at Defaqto, believes it would be a further surprise if either a change to the rate of interest or the level of quantitative easing is made, even though the Bank's governor Mervyn King wanted to push the economic cash injection up to £200 billion last month.

Mr Baxter compared the Bank's task of controlling inflation through fiscal policy as being "like controlling a huge oil tanker" as there is a "massive time lag between tugging on the wheel and the tanker moving".

He therefore said the MPC needs to hold back on further quantitative easing until they are sure it is yielding results.

"There is danger that tugging on the wheel before they have had an opportunity to find out whether the previous lot of tugs have worked," he said.

Should the Bank's base rate be kept at 0.5 per cent, it would be the seventh consecutive month at this historic low level.

Data quality important for business continuity

Mon, 07 Sep 2009 12:50:07 GMT

Companies and other organisations that maintain accurate data are more likely to able to cope under pressure and tackle unexpected demands, it has been claimed.

According to Daragh O Brien, director of publicity at the International Association for Information and Data Quality, firms are better placed to avoid problems in their industry and meet whatever challenges arise when they have information that does not need to be rechecked or cleansed before use.

He explained that information is no different to any other asset in that, for it to be most useful for a business, it must be "cared for and fed".

"In other words, organisations have to tend to the quality of their information and seek to enrich their data," he added.

Mr O Brien said that firms maintain their offices through cleaning and maintenance, their staff through training and development, and plant machinery and vehicles by washing them and servicing them regularly, so data should be no different.

Some 63 per cent of firms have made no attempt to calculate the cost to the business of errors in data arising from poor information quality, according to research conducted by Pitney Bowes Business Insight and Silver Creek Systems.

Expert says employees posing IT security problems

Mon, 07 Sep 2009 11:50:07 GMT

Businesses should ensure employees change their internet passwords regularly and use different logins depending on the sites they visit, it has been claimed.

IT security consultant and reformed hacker Robert Schifreen was commenting after research by life assistance company CPP showed that over 1.7 million people are in danger of falling victim of internet fraud because they use exactly the same password every time they go online.

He also warned internet users to be wary of phishing scams.

"If somebody sends you an email saying please login to your account and register your details, or there is something wrong with your account, don't click on the link and type in your details," Mr Schifreen stated.

Businesses will always write to an individual when asking for payment, rather than send an email requesting financial information, he explained.

Mr Schifreen added that with so many people using the internet with a lack of security at home, they are bringing this attitude into work.

"They are not using passwords, they are not securing the information properly [and] they are trusting emails they probably shouldn't trust and so on," he stated.

Get Safe Online recently reported that 23 per cent of UK internet users have been victim of phishing scams in the past 12 month period.

Low cost just one appeal of email marketing

Mon, 07 Sep 2009 11:48:07 GMT

Low cost is not the only characteristic of email marketing that is attracting businesses in the current environment, it has been claimed.

According to Ian Hitt, managing director at marketing service provider Epsilon International, many firms have moved a large portion of their marketing spend online during the downturn and are now discovering the benefits of utilising digital marketing platforms.

He said companies were finding email marketing particularly effective as it allows them to communicate on a more frequent basis but with targeted, specifically relevant messages at different times of the day, week or month.

Planned marketing campaigns see content arrive in consumer inboxes at the optimal time, maximising impact, he suggested.

Mr Hitt added: "It is that control over timing and accuracy - as well as being able to see the results coming back – followed by the segmenting of that data that makes email marketing particularly powerful at the moment.

However, he stated that while marketing is a "fantastic" channel, it is only one element of the communications mix and should not be viewed in isolation.

"Businesses should look at how it connects or supports other channels whether these be direct mail or call centre strategies, social networking and the growing rise of mobile content," he said.

The UK email marketing benchmark report recently indicated that over 25 per cent of the people who open marketing emails end up clicking through to origin website.

Report warns of swine flu complacency among businesses

Fri, 04 Sep 2009 16:10:04 GMT

Most UK businesses may be unprepared for a second wave of swine flu due to initial hysteria over the virus, it has been claimed.

According to new research from the Chartered Institute of Personnel and Development (CIPD) and the Business Continuity Institute, firms should prepare for staff absence rates to hit 50 per cent for between two to four weeks this autumn and winter.

However, just 43 per cent of companies have firm continuity plans in place to cater for such an occurrence, it has been claimed.

Ben Willmott, CIPD senior public policy adviser, said there was a "real danger" of managers failing to take the threat of swine flu seriously enough.

He added: "The media and public hysteria sparked by the initial stage of the pandemic has created a 'cry wolf' effect where the temptation for business leaders is to ask what all the fuss was about and get on with the priority of competing and surviving in recession."

Earlier this week, the Health Protection Agency revised its worst-case scenario for the winter flu season.

It says a maximum of 19,000 deaths can be expected from swine flu under the assumption that one in three people are infected.

Defaqto attributes manufacturing dip to stock clearance

Fri, 04 Sep 2009 11:41:04 GMT

The need of manufacturing firms to run down their inventory has caused a recent dip in activity in the sector, it has been claimed.

According to Defaqto economist Michael Baxter, a slight downturn in output, as reported by the latest CIPS/Markit UK Manufacturing PMI figures, is down to retractions in firms' inventories, which have distorted the data.

The CIPS index dropped below 50 points in August, the mark that separates a contraction from expansion.

Mr Baxter said: "If demand crashes then companies find that they have too much inventory, so they run down inventory and that can exaggerate the effect."

Demand might fall by 20 per cent, but firms may have to slash production until they have cleared stocks, he suggested.

He added: "Inventory can exaggerate the cycle it can make a downturn seem worse but it can also exaggerate the cycle coming in the other direction and I think that is a danger with the CIPS figures."

According to revised figures published by the Office for National Statistics on August 28th, gross domestic product (GDP) contracted by 0.7 per cent in the second quarter of 2009.

This was revised from a fall of 0.8 per cent in the preliminary estimate of GDP, due to upward revisions to production.

Retailers providing value for customers

Fri, 04 Sep 2009 11:40:04 GMT

Retailers are responding well to the recession by attempting to offer greater value for money to customers, it has been suggested.

According to Richard Dodd, a spokesperson for the British Retail Consortium, there has been a huge increase in interest in value over the last 12 months, with consumers keen to limit outgoings.

This has explained the explosion of budget discount stores on the UK's high streets, he suggested, and also encouraged existing firms to bring down their prices to compete.

Mr Dodd stated: "Successful retailers will always respond to changes in customer demand and respond to changes in the mood and needs of customers.

"It is a very dynamic sector and we will always see retailers entering the market and growing, and we will see others leaving. The ones who can adapt most successfully to changes in customer wants and needs are the ones who will do best."

He claimed it is difficult to say how much of a permanent change in customer tastes and behaviour will be seen as a result of the recession, but said retailers needed to be aware of any changes that do happen.

Statistics from the Local Data Company indicate that two budget outlets have opened up for every one that has closed during the recession.

Cost of usage issues confuse mobile web users

Fri, 04 Sep 2009 11:39:04 GMT

Mobile broadband users are confused about the cost of usage and require better information, it has been suggested.

According to thinkbroadband.com editor Andrew Ferguson, common concerns for users include the cost of roaming and how much bandwidth video streaming will use.

He was speaking after Broadband Genie claimed that mobile broadband providers are giving potentially misleading messages to their customers.

Mr Ferguson stated: "The confusion is mainly a carryover from the complex technology which many people are adopting and, perhaps rightly so, just using rather than looking under the bonnet."

Consumers and business users could receive text messages to their mobile phones, informing them when they hit various preset limits, he suggested.

In addition, Mr Ferguson said cost caps could be introduced to keep control of excess usage charges.

The Communications Consumer Panel, the independent policy advisory body on consumer interests in telecommunications, recently claimed that nearly three-quarters of people with broadband at home say they could not live without it.

Some 84 per cent of the 2,000 adults surveyed agreed it should be possible to have broadband at home, regardless of where people live, and 46 per cent agreed strongly.

Broker fined for allowing insider dealing

Thu, 03 Sep 2009 11:43:03 GMT

Business executives have been reminded of the perils of insider dealing, after a broker was fined £20,000 for failing to observe proper standards of market conduct.

Mark Lockwood, who was a trading desk manager at a retail stockbroking firm, was penalised by the Financial Services Authority (FSA) for failing to identify and act on a suspicious client order that ultimately led to the illegal movement of shares.

The misconduct charge related to his dealings with a client who sold equity in oil and gas exploration company Amerisur on 23 May 2007, the day before a share placement announcement was made.

Despite his own knowledge of the impending transaction, Mr Lockwood allowed the transaction to take place, meaning the client profited from insider information. This offence was later reported by another broker at the firm.

Margaret Cole, FSA director of enforcement division, said the fine emphasised the importance of the Suspicious Transaction Reporting regime.

She added: "Tackling market abuse and insider dealing is not just an issue for the regulator. Broking firms are the front line of defence against people who seek to misuse and profit from their possession of privileged information.

"Lockwood's failure could have meant that this incident went undetected and unpunished."

Last month, the FSA banned London mortgage broker Grace Nmadibechi Ada Ukala and fined her £70,000 for knowingly submitting false and misleading mortgage applications.

Housing market set for 2010 recovery

Thu, 03 Sep 2009 11:42:03 GMT

The housing market should begin to move in the early months of next year, it has been claimed, bringing hope to estate agents and those working in the construction industry.

Jane Marr, company director at online direct advertising service the Little House Company, said there is now pent-up demand for people who want to move.

"Spring 2010 will see buyers more inspired to make that move and [provide] a real kick-start to the UK housing market," she suggested.

She was speaking after the latest Hometrack survey indicated that the average house price has increased for the first time in more than two years.

Prices in the UK rose by 0.1 per cent in August, even though London, the south-east and East Anglia were the only areas to see positive growth.

Greater demand and weaker stock levels in these regions led to the surge in values, Ms Marr stated.

She added: "The south-east is traditionally the place for higher house prices and it makes sense that, if anywhere is to see house prices rise, it will be the south-east. Demand, it seems, is greater and inventories seem to be smaller in this area of the country."

Hometrack reported on August 31st that the average UK house price increased by 0.1 per cent last month.

Firms urged to form solid credit applications

Thu, 03 Sep 2009 11:40:03 GMT

Companies should put more rigorous business plans in place as they bid to beat the current credit squeeze and access finance, it has been claimed.

Steve Hughes, economic policy adviser for the British Chamber of Commerce, said it is very important for firms to allay the fears of bank managers about credit risk when they are applying for loans.

"Since the credit crunch occurred businesses have been required by banks to offer more information about their practises, to access that credit," he stated.

Mr Hughes said that if it is the cost of finance that is the problem, rather than access, firms should potentially try different lending institutions.

"Essentially what we are seeing is that if businesses are switching banks at a local level there is still competition around at a local level for competitive pricing, so it can be beneficial to go to other lending institutions, if they show there's a clear business plan for the business," he added.

According to manufacturers' organisation EEF, the restrictive credit market is affecting firms, though there are alternative sources of finance available.

Some 47 per cent of firms reported an increase in the cost of finance from banks and other providers in the past two months, up from 44 per cent in the second quarter and 37 per cent in the first quarter of this year.

Green IT investments designed to reduce total cost of ownership

Wed, 02 Sep 2009 15:30:02 GMT

Green IT investments are often made with a view to minimising total cost of ownership, it has been suggested.

According to Michael Feldman, the editor of HPC Wire, green computing continues to be on the minds of high performance IT practitioners and providers, perhaps more so than the need to reduce carbon output.

This is especially the case as a result of the recession, which has heightened the need for businesses to increase the value of their investments and reduce costs, he suggested.

Mr Feldman commented: "Green computing is mostly about energy efficiency, that is, performance per watt, but also encompasses other aspects like reuse, biodegradability, and optimal resource use in general.

"But the more I hear about it, the more I realise it's really about the economics of computing rather than any environmental sensitivity."

He suggested that adopting green IT could benefit firms by limiting the amount of power they use, but proposed that it is the cost effectiveness and value money of hardware that is most likely to influence buying decisions.

James Murray, editor at BusinessGreen.com, recently claimed that investments in low carbon technology are essentially cost-saving projects in the long term.

Study suggests brighter retail sector outlook

Wed, 02 Sep 2009 15:28:02 GMT

While retail sales continued to decline in the last month, the worst may be over for the high street, the Confederation of British Industry (CBI) says.

In its latest Distributive Trades Survey, the outlook among retailers picked up to its most optimistic since November 2007, with stocks also reported to be falling close to demand.

The CBI says this may be an indicator that stabilisation may not be far off.

Peter Damesick, head of research at CB Richard Ellis, believes that the sector "may have reached a bottom", adding that the fall in stock levels could lead to an "inventory cycle 'bounce'" at the end of the year that would boost the overall recovery.

He added: "The signs that we see coming from some other business surveys now suggest that that could be helpful, helping to both stabilise and then promote some pick-up in activity going forward as stock levels need to be replenished somewhat to meet demand."

However, Mr Damesick also warned that, with government spending due to be reined in once the wider economy begins its recovery, sales levels are expected to remain "not far off this bottom" for some time yet.

According to GfK NOP, UK consumer confidence has remained stable for the third month in a row.

UK lagging behind Eastern Europe on high speed broadband

Wed, 02 Sep 2009 15:27:02 GMT

The UK is lagging behind Asia and even parts of Eastern Europe when it comes to adopting new high speed fibre broadband, a new report has indicated.

According to technology research consultancy Strategy Analytics, the UK is currently ranked 41 in the world for developing a dedicated fibre network.

Some 51 per cent of South Korean households will have a fibre connection by the end of 2009, making it the most connected country worldwide, while the report also notes that Lithuania and Estonia have the highest connection penetration in Europe.

Commenting on the report, BroadBand Genie editor Chris Marling said "the simple truth" is that the UK does not really have any fibre network capability as yet.

He added: "But we're not alone in this. Take away the East Asian countries, which now take the lead in broadband technology, and arguably Scandinavia, which has a strong broadband tradition, most countries have little to no fibre broadband."

In any case, Mr Marling stressed that in the short to medium term, the benefits of the new technology will continue to outweigh its uses for all but the most dedicated technology enthusiasts.

"I don't see this being a problem at the moment. Virgin Media offers 50Mb broadband that you would be hard pushed to come close to using for anything meaningful," he stated.

Singapore is expected to have 100 per cent penetration by 2013 as part of its iN2015 initiative.

Consumer spending failing to benefit from VAT cut

Tue, 01 Sep 2009 16:01:01 GMT

The 2.5 per cent reduction in VAT seen during 2009 has done little to encourage consumer spending, it has been claimed.

According to a study conducted by professional services firm PricewaterhouseCoopers (PwC), nine out of ten consumers have not knowingly made additional purchases since the 17.5 per cent rate was reduced to 15 per cent.

Some 88 per cent of respondents claimed the VAT change was insignificant compared to other factors such as reductions in income and uncertainty about the economic situation.

Just one in ten said they had spent more as a result of the reduction, with five per cent spending a little more and three per cent a lot more.

Stephen Coleclough, a tax partner at PwC, said the figures show that, despite it being designed as an economic stimulus, the vast majority of consumers' spending has been unaffected by the VAT cut.

She added: "The rest of the year will demonstrate whether the cut can still have the desired effect.

"It will be interesting to see whether consumer spending is affected by retailers potentially bringing forward their New Year sales in anticipation of a VAT increase in January."

Last week, the IMRG Capgemini e-Retail Sales Index indicated that the UK online retail market enjoyed year-on-year growth of 16.8 per cent in the 12 months to July 2009.

Regular breaks important for employee productivity

Tue, 01 Sep 2009 15:59:01 GMT

Employers should encourage staff to take regular breaks as they bid to drive maximum productivity, it has been suggested.

Research conducted by Lyons Coffee indicates that UK workers are missing out on around 7.3 million hours of down time every year by working through their breaks.

Commenting on the study, which indicates that half the UK workforce takes less than half an hour for lunch, Trades Union Congress policy advisor Paul Sellers said time away from the work station allows employees to come back refreshed and reinvigorated.

He stated: "In terms of working without breaks, it's certainly been known that that's not good for productivity.

"Certainly, in terms of stress and health, having a decent break helps you to recover a bit, but it's not the only thing. Length of hours, a whole numbers of things are also factors, but a decent break is a very important component of health when you are working."

Mr Sellers said working long hours in general is linked to a range of health problems, including an increased risk of heart disease, stress, depression and developing diabetes.

Last week, Just-Eat.co.uk reported that British workers are giving employers £1.5 billion in unpaid hours a week.

Expert says email marketing has CRM role

Tue, 01 Sep 2009 15:58:01 GMT

Successful email marketing is all about building a long-term relationship with the customer, it has been claimed.

According to Matt McNeil, founder of marketing solutions firm Sign-Up.to, the medium is not designed to provide a means of quick customer acquisition and it is certainly not designed to add commercial value to data.

He said email marketing is about learning from customers' responses to campaigns.

"Businesses should be looking to build on and improve these results all the time," he suggested.

Mr McNeil added that retailers tend to experience the greatest levels of success in this area, largely because they pay a lot of attention to maximising performance in these ways.

He explained: "[They] have an advantage over other industries, especially if they are an ecommerce retailer because they can very easily put a concrete price tag on what those campaigns generate which allows them to iterate their campaigns a lot faster and measure and test the success of their marketing."

The latest YouGov data indicates that more than a third of small and medium-sized businesses plan to increase their investment in email marketing over the next twelve months.

Government working on contactless payment security

Fri, 28 Aug 2009 15:10:28 GMT

The government has announced plans to take action against criminals abusing new contactless mobile phone technology.

New measures are designed to prevent criminals targeting technology that allows consumers to use their mobile phones as debit, credit and pre-pay cards.

By swiping their phones over sensors, some mobile users are not able to make contactless payment, but concerns have been raised that security could be at risk as a result of the innovation.

The Home Office is working alongside the contactless industry to ensure payment functions, SIM cards and phones are disabled as soon as they are reported lost or stolen, transactions worth more than £10 require pin verification and consumer details are added to the national mobile phone register.

Home Office minister Alan Campbell said the guidelines were "an important step forward" in protecting the public from criminals.

"I am pleased that the mobile and banking industries have worked with us to ensure that the public are protected at the earliest opportunity," he added.

"By working closely with industry we have already put in place measures to make it harder for thieves to profit from mobile phone theft – around 90 per cent of handsets reported stolen are now blocked within 24 hours of reporting reducing their value and the incentive for criminals."

The national mobile phone register currently consists of more than 22 million numbers, helping users to be reunited with lost or stolen handsets.

IMRG index shows UK sales growth

Fri, 28 Aug 2009 14:56:28 GMT

The latest IMRG Capgemini e-Retail Sales Index shows that the UK market has enjoyed year-on-year growth of 16.8 per cent.

Web sales volumes were up 15.7 per cent in July 2009 on the previous month, as revenue of £4.2 billion was generated over the internet.

The clothing, footwear and accessories sector achieved year-on-year growth of 17 per cent, while electrical goods also performed well.

James Roper, chief executive of IMRG, said the recession had forced people's spending habits to change, with those retailing over the internet benefiting in particular as consumers head online in search of bargains.

He noted that growth had slowed in the e-commerce market, partly because of heavy high street discounting, but pointed out that the ability of e-retailers to read the market was proving beneficial.

Mr Roper said: "You can tune your site in infinite ways, very, very quickly – as an example, all online retailers constantly watch their competitors, and they test their sites, and when their competitors run out of a product, they put their prices up.

"So, the growth may have slowed down for the internet players, but they're defending their margins a lot better."

He said that traditional retailers were fighting back hard, but consumers were increasingly willing to spend their money over the internet.

Stephen Robertson, director general of the British Retail Consortium, claimed that seasonal clothing and food sales were strong during 2009.

Firms monitoring emails to aid IT security

Fri, 28 Aug 2009 14:52:28 GMT

More US companies are employing staff whose primary or exclusive role is to survey email correspondence sent by employees, it has been reported.

According to a study conducted by Proofpoint, 38 per cent of companies now have employees with such a mandate, up from 29 per cent in 2008.

The primary reason for this was to enhance information security - 34 per cent of those surveyed said they had been impacted by the exposure of "sensitive or embarrassing information" within the last twelve months, up 23 per cent from 2008.

Some 18 per cent of companies reported investigating leaks that stemmed from blog or forum posts by their employees, while 17 per cent had done the same for leaks on social networking sites.

Tony Neate, the managing director of Get Safe Online, said: "It's implicit on all of us, right down from government to the specific individual, to make sure we are secure, and to make it implicit when we're doing that sort of work."

He claimed a coherent data security policy can actually make staff understand what they need to implement to make sure the company's information is looked after – something that can help safeguard their jobs.

MessageLabs recently reported that computer users make over 100,000,000 visits to malicious URLs every single month, meaning employees constantly run the risk of unwittingly leaking data.

Firms prefer business meetings for sealing deals

Thu, 27 Aug 2009 14:04:27 GMT

Businesspeople are still pushing for face-to-face meetings to try and keep their clients, according to hotel chain Best Western.

Commenting after research from British Airways showed that 89 per cent of executives prefer face-to-face meetings for 'sealing deals', Best Western's head of marketing Tim Wade said they continue to see them as being "an invaluable part of business".

He said that while this was the case, the business travel market has been hit by budget cuts due to economic climate.

Mr Wade noted that clients are increasingly using hotels in the city where they are based to meet, rather than those further afield as they bid to save on travel costs.

"It is increasingly important to offer value plus additional benefits to the business traveller," he suggested.

Another finding in the British Airways study was that four out of five company bosses believe maintaining existing clients is more important than investing in training, technology or new staff as the economic downturn ensues.

Despite this, three out of five firms claimed to have reduced their travel budgets in a bid to manage costs over the last six months.

Cloud computing budgets set to increase

Thu, 27 Aug 2009 14:02:27 GMT

The majority of IT managers expect their budget for cloud computing to increase in the near future, new research has indicated.

A study from Applied Research has revealed that 66 per cent of IT managers already have dedicated budgets for the area, while 71 per cent expect cloud computing expenditure to grow over the next two years.

Some 82 per cent of the respondents claimed they were currently trialling publically hosted software, while 83 per cent said the same for private clouds.

Jason Needham, senior director of Product Management at F5 Networks, said it was "no surprise" that enterprises are attracted to cloud computing because of the promise of an agile, scalable IT infrastructure and reduced costs.

He added: "As organisations turn to the cloud to increase IT agility, it is important for them to understand the technical components of the cloud and how the cloud will affect the network before developing an implementation strategy."

David Pratt, chief operating officer at ThinkGrid, recently claimed that cloud servers give an organisation additional flexibility and "access to enterprise-level IT without the expense".

For firms looking to manage costs, cloud computing offers them a pay-as-they-go service, he noted.

Overseas trade vital for businesses

Thu, 27 Aug 2009 14:00:27 GMT

Almost two in five businesses contemplating international trade see it as being crucial to their overall survival strategy, a new study has indicated.

Research conducted by HSBC Commercial Banking indicates that four in five businesses currently exporting overseas consider it a profitable venture, while a further one in six are breaking even.

Indeed, one in five has doubled in size by selling goods or services abroad, while four in five have expanded by at least ten per cent, the study found.

Lord Digby Jones, chairman of the international business advisory board of HSBC, said the only way the UK will recover quickly and sustainably from the recession "is by trading her way out".

He stated: "That calls for our continued, indeed our increased, commitment to the export of goods and services.

"Our manufacturing sector is among the best in the world for added value innovation and our service sector exports more than virtually any other country."

Lord Jones claimed exposing a business to overseas competition makes it more competitive, productive and better equipped to deal with the challenges of globalisation.

The Confederation of British Industry recently reported that the manufacturing outlook for production over the three months ahead is the least negative since June 2008.

High speed broadband increasingly vital to firms

Wed, 26 Aug 2009 13:04:26 GMT

It is becoming more and more necessary for businesses to have the facility to share and exchange data over the internet, one expert has proposed.

Edd Dawson, editor of Broadband.co.uk, said a national infrastructure policy for the roll-out of high speed broadband was needed in order to provide sufficient internet access for UK firms.

He suggested greater numbers of companies are looking to aggregate services through their fibre or broadband connection because it allows more flexibility.

Commenting on the benefits of high speed broadband, he stated: "You can rely on client services for things like email and even going up to things like applications, it reduces the reliance of having to have your entire IT structure in a single base.

"If you have got a good connection, you can make use of client services so it can scale with your business.

Rather than having to invest thousands through an email server and an exchange service like you used to have to a decade ago, firms can use hosted services to reduce total cost of ownership, providing connection speeds are sufficient, he suggested.

Lord Carter's Digital Britain report recently called for all UK firms to have access to 2Mbps broadband access by 2012.

Law firm calls for Working Time Directive compliance

Wed, 26 Aug 2009 13:02:26 GMT

Firms must ensure their employees have opted out of the maximum working week if they wish to use mobile technology to work from home, it has been suggested.

Peter Done, managing director at employment law firm Peninsula, was commenting on research which indicates staff with remote working capability may be spending an extra 15 hours per week concentrating on work tasks.

He warned that in many cases, this will lead to them exceeding the 48-hour week set out by the Working Time Directive, and urged employers to be aware of the issue.

Mr Done stated: "It is important for staff to spend quality time away from the office, spending time with the family, or undertaking recreational activities rather than tapping away responding to client emails or deadlines so that they keep a healthy work/life balance.

"Bosses should encourage staff not to work from home unless necessary. Inform staff that they should limit working from home."

He suggested that if staff are willing to do extra work from home, they should make sure they are appropriately rested to ensure they are productive during the day.

"Having a well rested employee with a good work/life balance is a lot more useful than a tired employee that put one too many hours in the night before," Mr Done added.

Under the Working Time Directive, job-related training, travelling time, working lunches, time spent working abroad, unpaid overtime and time on-call all constitute work.

KPMG outlines future challenges for building societies

Wed, 26 Aug 2009 12:59:26 GMT

The building societies sector struggled during 2008, according to KPMG's annual Building Societies Database.

According to the professional services firm, while most societies have remained profitable and many have grown, there have been some notable failures.

UK societies face challenges around profitability, funding and capital strength, KPMG stated.

Credit losses, narrowing of margins, the Financial Services Compensation Scheme levy and falling fee and commission income have all affected bottom lines, it is claimed, while the low Bank of England base rate continues to make it difficult for societies to attract consumer savings.

The firm added that the growth of many societies could also be constrained if regulators require banks and building societies to hold higher levels of capital, which it says seems increasingly likely in the wake of the banking crisis.

Simon Walker, KPMG financial services partner, said: "The challenges of profitability, funding and capital strength combined with an anticipated increase in restrictive regulation, means societies will need to cut costs and focus on their customer-facing activities if they are to prosper in this new environment."

Last month, the Building Societies Association reported that gross mortgage lending totalled £1.976 billion in June 2009.

FPB urges caution over swine flu response

Wed, 26 Aug 2009 12:57:26 GMT

Businesses should not rely on local councils to fulfil their duty to help firms cope with outbreaks of swine flu, the Forum of Private Business (FPB) has claimed.

According to the lobby group, the Civil Contingencies Act 2004 makes it mandatory for local government authorities to implement measures to deal with outbreaks of infections, but firms are not receiving public sector support or guidance at present.

The FPB says firms have instead been turning to business support groups as they bid to mitigate losses stemming from the pandemic.

FPB policy representative Matt Goodman said that in light of the fact firms pay hefty business rates in exchange for the services and infrastructure provided by their council, they could expect to be offered guidance at this time.

He added: "Swine flu could prove to be a major headache for thousands of small firms who don't have the workforce to absorb staff sicknesses, so it is vitally important that they are given every possible bit of help to see them through it.

"While there may be some local authorities out there fulfilling their obligations under the act, not one of the business owners who have been calling us have received any guidance or support from their councils."

Last month, the FPB reported that 20 per cent of calls received during the third month of July were related to the H1N1 virus.

Firms urged to provide pension information to employees

Wed, 26 Aug 2009 12:56:26 GMT

Businesses should do their best to keep staff informed of pension options, it has been claimed.

Danny Cox, head of advice at Hargreaves Lansdown, said individuals who do not closely follow their pension or investments should be able to go to their human resources department to access information that is relevant to them.

He stated: "How this information is communicated is very important because providing substantial amounts of information in an easily readable format to employees means that people can work their way through their options without having to take advice."

Mr Cox was commenting after research published by Prudential indicated that nearly 2.5 million pension scheme members have never checked how their fund is performing.

The study indicated that with many people still not setting enough aside for retirement the emphasis may fall on companies to ensure their staff are fully informed about how their pension fund is performing.

According to Mr Cox, problems potentially arise when there is a need to take advice – something which has to be paid for and is unlikely to be offered for free by employers.

He added that the reason companies have a default fund is so that staff are forced to make a decision on a pension if they cannot make one for themselves.

"So, the selection of the underlying default fund when you are setting the pension scheme up is very, very important," he noted.

From 2012, employers will be legally obliged to enrol staff members into a pension scheme.

Realism urged in executive decision making

Tue, 25 Aug 2009 11:38:25 GMT

Pay freezes are one of many options open to businesses attempting to negotiate the recession, it has been claimed.

According to Phil Flaxton, chief executive of smart working advocate group Workwise UK, some companies will look to reduce overheads first, but holding pay is an option that the majority are likely to consider as they attempt to manage costs.

He suggested that if a firm is to pursue this course of action, it needs to do so across the whole company – from the chief executive right down through middle management to new starters.

"That is common sense really if you want to ensure you have got good employee relations," Mr Flaxton noted.

He claimed that when the upturn comes and employees become more secure in their external job prospects, firms may have to reconsider pay freezes to avoid encouraging staff attrition.

Some staff members may choose to leave even if they do receive a rise on the basis they feel they were treated badly by their employer during the recession, but this is a consideration to be weighed up against cost benefits, he suggested.

A new report from Industrial Relations Services has shown that 41.3 per cent of all pay deals are pay freezes.

Pay freeze option careful thought

Tue, 25 Aug 2009 11:37:25 GMT

Employment expert calls for IT staff retention to save costs

Tue, 25 Aug 2009 11:36:25 GMT

Midmarket firms should not be laying off existing IT workers to reduce costs as the recession ensues, it has been suggested.

Gerry McLaughlin of IT Contractor.com claimed that firms were only like to increase their medium-term costs by making redundancies now.

With the market expected to experience an upturn in the coming months, he suggested that firms will soon be looking to hire rather than fire.

Even where freelance workers are concerned and redundancy pay is not applicable, the costs involved with releasing and rehiring are likely to be greater than maintaining the existing headcount, Mr McLaughlin implied.

He stated: "It is the kneejerk reaction when any downturn comes along for the chief executive and finance officer to try and protect the bottom line.

"When the economy turns up again, companies have to hire replacement IT staff - ones who don't understand their businesses or setup and who will not be as productive in the short and medium-term."

According to the IT Job Board, the UK as a market for IT recruitment is still showing several positive signs for longer-term growth.

While Q2 of 2009 showed negative growth in job vacancies, the industry as a whole still foresees a significant shortage of IT professionals in the longer term, it is claimed.

Report indicates rise in malware volume on web

Tue, 25 Aug 2009 11:34:25 GMT

The number of computers infected by programs designed to steal confidential, personal, or banking details has risen by 600 per cent during the last year, it is reported.

According to a report by PandaLabs, the volume of malware on the internet continues to increase, with an average of 37,000 new viruses, worms, Trojans and other security threats appearing every day.

Of these, 71 per cent are Trojans, designed mostly for identity theft, the firm claims.

Graham Cluley, senior technology consultant for computer security company Sophos, claimed the rise in social networking site use had encouraged this trend, with a third of all users having been spammed and a fifth having received malware.

He said: "Hackers use Trojan horses a lot more these days, because they're financially motivated.

"It may well compromise your computer and use your computer, but it doesn't make its presence so obvious that it goes around infecting everybody else as well, and the reason the financially motivated hackers like that is that it's less likely to draw attention."

For users, Mr. Cluley recommends the use of an anti-virus programme which silently updates itself every hour in the background.

According to EnterpriseITPlanet, converged threats - where the user is assaulted with a combination of viruses, spyware, phishing, spam and other attempts at attack or the exploitation of a network's vulnerabilities – are also increasing.

FMB concern over construction industry support

Mon, 24 Aug 2009 15:51:24 GMT

The government is holding back the recovery of the construction industry, the Federation of Master Builders (FMB) has said.

Latest government figures indicate a 63 per cent increase in the number of building projects begun during the second quarter, along with a 24 per cent rise in completions over the same period.

However, the CIPS/Markit Purchasing Managers' Index for construction increased only slightly in July, with the FMB claiming that three major factors are still holding the industry back.

Brian Berry, director of external affairs at the FMB, said: "There are a few things that the government could be doing better. Fundamental, of course, is the problem of mortgage liquidity."

"The government, despite pumping millions into the banking system, is still not actually addressing the issue of providing confidence in the housing market," he said.

Other problems cited by Mr Berry included "additional costs of about £30,000" created by government policies such as the push towards zero carbon homes and the need for reform of the planning system.

According to the Communities and Local Government, there were an estimated 29,980 seasonally adjusted housing starts in England in the June quarter 2009.

This figure – which indicates the second successive quarterly rise in seasonally adjusted starts - was up 63 per cent on the previous quarter but nine per cent lower than the June quarter 2008.

Study suggests web advertising growth to return

Mon, 24 Aug 2009 15:49:24 GMT

Online advertising grew 20 per cent in 2007-08, as firms turned to the internet to promote themselves during the downturn, it has been reported.

According to the Internet Advertising Bureau, underdeveloped markets thrived in particular, enjoying double-digit growth rates, although growth has slowed this year.

The report predicts that the industry will really begin to take off again after 2010, when total online advertising is predicted to grow by 6.5 per cent – up from an estimated 2.4 per cent in 2008-09.

In the short term, the bureau claims search will be the most resilient format, retaining its dominant position in Europe with eight per cent growth in 2009.

This form of marketing will account for 46 per cent of the total online ad market in the region, while online display will slow in comparison.

Meanwhile, a 4.7 per cent decline in the classifieds market is expected, emphasising the growing popularity of the web for marketing.

Last week, Simon Bird, technical director at marketing consultancy dotCommerce, urged businesses to avoid bombarding consumers with email marketing as they bid to drive revenue.

He suggested that sending out too much, or irrelevant information, may lead to customers requesting to leave mailing lists.

CBI reports services sector improvement

Mon, 24 Aug 2009 15:47:24 GMT

An improvement has been seen in the services sector during the last month, according to the latest Confederation of British Industry (CBI) study.

While business levels in the services sector remain below normal, an easing in conditions has been witnessed when compared to findings for the previous three quarters.

In business and professional services, the value and volumes of business both rose very slightly on the previous quarter for the first time since May 2008.

Lai Wah Co, head of economic analysis at the CBI, said business conditions remain difficult for service sector firms, which have had to cut the price of their offerings in order to compete for business.

He added: "However, service sector activity has not been anywhere near as weak as in recent quarters and things are starting to look up, particularly for business and professional firms.

"These companies have seen an increase in business, albeit modest, for the first time in over a year and they are now feeling more optimistic."

Last week, the CBI Trends Survey indicated that the manufacturing outlook for production over the three months ahead is the least negative since June 2008.

Employers must attempt to recognise worker stress

Fri, 21 Aug 2009 16:07:21 GMT

Employers should be looking out for rising stress levels in staff who have survived recession redundancies, it has been suggested.

According to Gill Trevelyan, head of good practice at advisory service Acas, it is important to recognise that remaining employees may have been placed under greater pressures during the downturn and could now be feeling the ill effects.

She said many employees suffer from guilt after seeing some of their colleagues lose their jobs, while others remain in a constant state of fear that bad news affecting them could be just around the corner.

Managers may be suffering from increased stress levels themselves, Ms Trevelyan added, due to the difficulties associated with implementing redundancy programmes.

Advising managers on how to handle the condition in the workplace, Ms Trevelyn said: "Establish if the stress is work related - if it is you have the ability to change things like job design to ensure demands on staff are reasonable or by providing additional training."

Her comments follow the publication of Badenoch & Clark's latest employment study this week, which found that 91 per cent of employees are stressed at work.

Perhaps of even greater concern was the finding that 71 per cent of workers said they felt unable to raise their concerns with managers.

Email marketing best used sparingly says expert

Fri, 21 Aug 2009 16:03:21 GMT

Businesses should be using email marketing for customer retention purposes, but must be aware of the perils of bombarding inboxes with promotional material, it has been suggested.

Simon Bird, technical director at marketing consultancy dotCommerce, said that while search engines generate traffic to company websites and the site compels a purchase, it is e-marketing that encourages retention.

However, he said that given the low costs of advertising through this channel, it is all too tempting to constantly send mail to every address on the company database.

This is a mistake, Mr Bird suggested, as such a practise will inevitably annoy customers and potentially lead them to seek removal from mailing lists.

"Try and get customers to segment that data and not to send them offers constantly, and instead ask customers how often they want to be contacted and what information they want," he advised.

Mr Bird reiterated his view that firms should be looking to establish email contact with customers after they make a purchase, as this is the best time to get them to sign for mail circulation, but he claimed that less is sometimes more where advertising is concerned.

According to eMarketer, seven in ten adult web users in the UK will buy at least one item online during 2009.

Businesses 'need to prepare for further swine flu outbreaks'

Fri, 21 Aug 2009 14:18:21 GMT

UK firms cannot afford to be complacent over the H1N1 virus, it has been claimed, despite reports that the number of new cases in the UK has dropped this week.

According to the World Health Organization (WHO), firms should be preparing themselves for a second and potentially even third wave of swine flu later this year, making business continuity provisions where appropriate, reports the AFP.

WHO chief executive Dr Margaret Chan said there was no way of telling for certain whether or not the worst of the pandemic was over or still to come.

The body has said that in order to cope with a second spate of swine flu cases, businesses should consult with their HR departments and cater for working with a reduced workforce or with significant numbers of employees based at home.

Last month, the Federation of Small Businesses claimed additional support was needed to help them emerge unscathed from the swine flu pandemic.

John Wright, national chairman at the FSB, claimed swine flu was expected to have "a serious impact" on the UK, with a more than five per cent fall in UK gross domestic product anticipated this year alone.

Firms must recognise business continuity requirements when deploying IT

Fri, 21 Aug 2009 14:16:21 GMT

Businesses should have an appreciation of what they are looking for in a business continuity application before making a purchase, it has been claimed.

Writing for Continuity Central, former Research In Motion administrator and technical analyst David Farr said firms that are unsure of their exact requirements are likely to be left unfulfilled by any selection.

He said that since most software is implemented using a project management methodology, firms are likely to identify the budget, timelines, people resources and other such constraints, although many pay less attention to technical requirements.

Mr Farr noted that such considerations as whether hosted or internal solutions are desired, which platform the company supports, the speed of end-user computers and the operating systems they run upon are all highly significant.

He added that recognising all business requirements is equally as important, stating: "Identifying all of the stakeholders who will need to use the tool – from end users to administrators to upper management – is crucial.

"If you do not consult with your users and document their needs for the software, you will have headaches later."

Alan Berman, executive director for DRI International, told Newsday recently that disaster recovery planning is not merely an option for firms wishing to survive, it is essential.

CML reports rise in mortgage lending

Fri, 21 Aug 2009 14:14:21 GMT

The Council of Mortgage Lenders (CML) has reported a 26 per cent rise in gross mortgage lending for July 2009, indicating that house transaction levels may be starting to increase.

Lending totalled an estimated £16 billion in July, up from the £12.7 billion recorded in June, latest monthly figures reveal.

This remains 36 per cent down on a like-for-like basis from July 2008, but a pick-up in advances during the last few months may have offered encouragement to estate agents, surveyors and developers.

The CML said recorded volumes "remained consistent" with its forecast for £145 billion in gross mortgage lending this year.

CML economist Paul Samter claimed that most of the indices point to house prices rising modestly over the summer months, however he urged caution for the near future saying further improvements in economic conditions were needed.

He stated: "We anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge."

Last week, independent firm John Charcol claimed that up to 3.5 million homeowners remain unable to move home due to a lack of access to mortgage finance.

CRM is an investment in customer loyalty

Fri, 21 Aug 2009 14:12:21 GMT

Businesses can encourage brand loyalty by improving their customer relationship management (CRM) skills, it has been suggested.

According to Customer Consulting Ltd (CCL), retention relies on offering the right product or service at the right price in a way that makes it easy for the customer to buy from and trust the supplier.

The management change firm says many companys fall down by seeing CRM as a cost rather than a business investment such as brand marketing and direct sales.

Brian Jopling, associate director of CCL, said many companies believe their customers "want to be promiscuous" but, in reality, this is not the case.

He added: "Customers tend to view their relationship with a provider like a marriage rather than a one-night-stand. Of course, this means that both parties in the relationship need to work at cementing their commitment to each other."

Mr Jopling suggested that customers are always prepared to put some effort into the relationship, making repeat purchases because they want to believe they have chosen the right supplier in the first place.

"This should benefit the provider because the more products a customer buys, the more profitable that customer will be," he added.

Last month, James Fahey, founder and chief executive of Independent IT Analyst, claimed firms should seek unbiased views on particular CRM applications prior to making a purchase.

BCC says education should focus on workplace training

Thu, 20 Aug 2009 16:15:20 GMT

The purpose of education should be to prepare individuals for the workplace, not to generate higher pass rates each year, it has been claimed.

Speaking as A-level results for the 2008-09 academic year were published today (August 20th), Dr Adam Marshall, director of policy at the British Chambers of Commerce (BCC) called for a sense of perspective over the annual grading argument.

He claimed too much attention is focused on "the annual ritual of exam results" and too little on whether young people are getting the skills they need to succeed.

Dr Marshall said it is "more important than ever" that Britain's education and training systems work for learners and for businesses alike.

"Companies up and down the country tell us that too many young people are still leaving school, college or university without the tools needed to get into work," he added.

"So rather than focus on A-level pass rates, councils, colleges and local businesses need to form a closer partnership – ensuring that employers can recruit locally, and that young people get the training they need to get ahead."

Last month, Gerwyn Davies, public policy adviser at the Chartered Institute of Personnel and Development, claimed workers must continue to participate in training schemes to boost their employability.

Study suggests TV advertising has consumer impact

Thu, 20 Aug 2009 16:13:20 GMT

Firms wishing to make a real impact with their marketing campaigns should look to advertise on television if they can, a consumer study indicates.

According to a survey conducted by YouGov and Deloitte, 64 per cent of consumers believe TV adverts have the most effect on them, despite the continued rise of the internet.

Just 12 per cent of consumers thought search advertising was one of the top three channels in terms of impact.

Commenting on the research, Eva Berg-Winters, senior manager at PricewaterhouseCoopers, claimed that television will remain a "key part" of marketing budgets despite the downturn.

She stated: "It is a very good way to cheaply reach a large audience. It does have that raison d'etre and will continue to have one for years to come."

However, Ms Berg-Winters proposed that impact is not the sole determinant of whether a consumer acts upon an advertisement – drawing attention to the strengths of other mediums such as search.

"If people Google or go on MSN or Yahoo and search for a product and then immediately buy it, they may never remember that they saw a link on a search engine, but that might actually have been the most efficient type of advertising because it brought them to the sale," she stated.

According to a press release published by Group M in June, global advertising spending is expected to drop 5.5 per cent in 2009, with a mild recovery in 2010 where the decline should ease to 1.4 per cent.

Bank governor voted down on quantitative easing extension

Thu, 20 Aug 2009 16:11:20 GMT

Minutes from the August meeting of the Bank of England's Monetary Policy Committee (MPC) meeting reveal that governor Mervyn King attempted to further extend its quantitative easing programme.

With support from two other committee members, he had wanted to inject an extra £25 billion into the UK economy through the purchase of assets from banks and financial institutions.

However, the MPC voted by 6-3 to limit the investment to an additional £50 billion – still £25 billion more than the markets had anticipated.

The Bank's deputy governors Charles Bean and Paul Tucker were among those to disagree with Mr King's proposal, claiming that the "most immediate downside risks to the economy seemed to have receded".

Kate Barker, Spencer Dale, Paul Fisher and Andrew Sentance were also in favour of the more moderate quantitative easing increase eventually decided upon.

According to the minutes: "There was a range of views amongst the committee over the precise balance of risks to the outlook for inflation and how much significance to ascribe to the various arguments about the appropriate policy response to that outlook, although all members agreed that substantial further asset purchases were needed over the next three months."

At the same meeting, the MPC voted to hold interest rates at 0.5 per cent for the sixth successive month.

ONS figures show 3.3% retail sales rise

Thu, 20 Aug 2009 16:10:20 GMT

Retail sales rose by 3.3 per cent on a like-for-like basis during July 2009, according to latest figures from the Office for National Statistics.

Total sales volumes in the three months to July were 1.6 per cent higher than the equivalent period last year, with sales for predominantly food stores increasing by 1.4 per cent – the largest rise since 2007.

Non-food stores witnessed a one per cent increase, with non-specialised stores rising by 4.9 per cent and textile, clothing and footwear stores by 7.3 per cent.

A 5.5 per cent fall was seen in household goods, driven by lower demand for furniture and hardware, while other stores fell by 1.5 per cent.

Commenting on the latest figures, Vicky Redwood of Capital Economics said: "The retail sector clearly has built up a decent amount of positive momentum, which could well last a few months more."

According to the British Retail Consortium, like-for-like sales in Scotland were 0.6 per cent higher than in July than during the equivalent month in 2008.

Total sales in July were 4.8 per cent up on a year ago, the consortium reported, however growth slowed when compared to June 2009, which experienced warmer and drier weather.

CBI trends survey shows more positive outlook

Wed, 19 Aug 2009 15:33:19 GMT

The manufacturing outlook for production over the three months ahead is the least negative since June 2008, according to the Confederation of British Industry (CBI).

According to the latest Industrial Trends Survey, 32 per cent of UK manufacturers said they expect the volume of output to fall over the next three months, while 27 per cent predict it will increase.

The resulting balance of -5 per cent represents a slight fall in output but it is the least negative prediction for 14 months.

A balance of 54 per cent of manufacturers reported that total order books are below normal, but this was an improvement on the 59 per cent in July.

Richard Lambert, CBI director-general, said expectations for manufacturing output have improved partly because many firms have run their stock levels down quite aggressively over the summer, meaning they are in a better position to raise production.

He added: "It looks like destocking in the manufacturing sector may be coming to an end, which offers a further sign that the UK economy is starting to stabilise."

Earlier this month, Adam Buckley, head of programmes for the Manufacturing Institute, said reducing production costs remains "the number one challenge" for manufacturers in the present market.

Firms urged to look and plan ahead

Wed, 19 Aug 2009 15:33:19 GMT

Business decision makers should pay attention to emerging trends and social phenomena when forming strategies for future growth, it has been suggested.

Chris Kaucnik, marketing director for Home Warranty, said planning in advance – even ten or 20 years ahead – is "highly important" to managing a sustainable business.

He claimed that understanding how a business sector is likely to change over time is paramount to a firm's success.

"You need to find the right ways to evolve and stay relevant," Mr Kaucnik stated.

Looking to the future, he proposed that population growth and the development of new communities – potentially ethnic or religious – in particular areas are likely to impact on many business' consumers bases.

"How will that affect your business? You can make many logical inferences from just this single scenario and apply them to your business planning," he suggested.

"Your strategies must evolve with them and not contain tired, stereotypical communication behaviour."

Earlier this year, Sarah Burnett, senior research analyst at IT research and advisory organisation the Butler Group, claimed businesses cannot thrive in the long term without investing in business intelligence to bolster decision making processes.

She proposed that good decision making and performance management are key to business value generation.

BRC calls for white goods sector stimuli

Wed, 19 Aug 2009 15:30:19 GMT

The government should cut VAT on green appliances and introduce a white goods scrappage scheme, according to the British Retail Consortium (BRC).

It says an incentive programme for the 15 million fridges, freezers and washing machines that are over 10 years old in the UK will help stimulate consumer activity and help the economy.

The BRC estimates that if introduced, the schemes could save 1.3 million tonnes of CO2 per year by 2020.

Krishan Rama, of the BRC, said the plan would "stimulate innovation amongst manufacturers" and create a more competitive environment for the development of white goods.

He said that by providing a suitable incentive for firms to achieve the A-rating for efficiency – namely zero per cent VAT - they will be encouraged to compete for energy-saving recommended performance.

"We put the idea out there as a starter, to sort of get the conversation going," Mr Rama added.

Market intelligence firm Mintel recently claimed that energy efficiency is the second most important factor determining choice of brand.

It says the total value of the UK white goods market was £3.2 billion in 2008, although the recession is likely to lead to a six per cent reduction in sales volumes during 2009.

Security fears holding back workplace web use

Tue, 18 Aug 2009 16:13:18 GMT

Security concerns are holding back the use of Web 2.0 in some businesses, new research has indicated.

A study conducted by Mesmo Consultancy suggests there is still of concern over the likes of social networking websites, blogs and wikis in 40 per cent of organisations.

The time it takes to use such media platforms and the lack of evidence supporting its effectiveness as a relevant business communications tool were also found to be worries.

Dr Monica Seeley, founder and managing partner of Mesmo, said over half of the business professionals who took part in the survey highlighted security as a potential barrier to the evolution of Web 2.0 in the workplace.

She added that judging by the number of emails she receives from IT professionals struggling to make conventional email systems "bulletproof", it is clear this is a key factor.

"However, time and information overload are real problems for most of us. We are all time poor and data rich and for many businesses, there is no other option than to develop current communication tools and look at new ones," she added.

Earlier this week, research by ScanSafe indicated that the number of web attacks increased by a third during the second quarter of 2009.

Inflation steady despite economist predictions

Tue, 18 Aug 2009 16:12:18 GMT

Consumer Price Index Inflation (CPI) remained unchanged this month, despite many commentators expecting a fall.

While the Retail Price Index rose to -1.4 per cent for July from -1.6 per cent the previous month, CPI remained at 1.8 per cent, going against Bank of England predictions from last week that inflation would fall sharply in the short term.

However, Vicky Redwood, UK economist at Capital Economics, said it was important not to read too much into this month's figures.

"It looks like inflation in the UK is still being rather slower to fall than elsewhere, but I think the underlying trend is down," she stated.

"That there is a large amount of spare capacity, or slack, in the economy continues to weigh down on price pressures. Overall, inflation will fall much further."

Ms Redwood commented that she expected inflation to drop slightly below one per cent by the end of the year, ahead of a period of prolonged deflation.

This will in all likelihood lead to the Bank of England further extending its £175 billion quantitative easing programme, she suggested.

Earlier in August, the Bank of England voted to maintain its base rate at 0.5 per cent for the sixth successive month.

Study warns of pension scheme closures

Tue, 18 Aug 2009 16:10:18 GMT

Half of all private sector final salary pension schemes could close within the next three years, new research indicates.

According to actuarial firm Watson Wyatt, employees currently saving for their retirement through defined benefit pensions may be forced to rely upon defined contribution schemes from 2012.

As a result, their retirement incomes will be less predictable since they rely upon investment returns and the future cost of annuities.

Rash Bhabra, head of corporate consulting at Watson Wyatt, said more employers were looking at the risks they run through their pension schemes and saying 'enough is enough'.

He added: "Companies who were delaying a decision on closing their schemes to existing members until others had stuck their heads above the parapet are now ready to act.

"There is a sense of inevitability that what was once seen as the nuclear option is starting to become the norm."

Mr Bhabra said that when times are tough, it is hard for firms to justify keeping more generous pension arrangements for "a dwindling number of long-serving staff".

Earlier this week, Keith Churchouse, the director at Churchouse Financial Planning, suggested that UK professionals must commit to pension saving even if they are struggling in the current financial climate.

Nabarro worried about lenient financial reform

Mon, 17 Aug 2009 15:54:17 GMT

The argument for lenient financial reform in the UK is "a weak one", according to UK commercial law firm Nabarro.

Commenting after the Financial Services Authority published its regulations for bonuses and pay following a consultation with the sector, Nabarro partner Rob Moulton said nobody could say the last 18 months had been good for financial services.

A lack of strict regulation on remuneration and banker bonuses contributed to the fall-out, so these matters should be dealt with strongly, he suggested.

Mr Moulton said: "If we are ahead of the game in trying to make sure that one of the contributors to the problems – one of the minor contributors in some people's views - is going to be dealt with, then we ought to do it."

He claimed that if the UK sees sufficient benefit in preventing a reoccurrence of the same problems in future, it should introduce strict regulations, irrespective of whether other countries around the world do so or not.

"We are leading the world, as far as I can tell, in coming up with firm rules on remuneration. Everyone else is still talking about it, and we're doing it in 2009," he added.

Last week, the Liberal Democrats' treasury spokesman Vince Cable said 'watered down' regulations from the Financial Services Authority would send out "entirely the wrong message" to the financial services sector and to taxpayers.

Economist predicts low rates will continue

Mon, 17 Aug 2009 15:52:17 GMT

Interest rates are likely to remain at their current low levels for some time to come, it has been claimed.

According to Hetal Mehta, senior economist analyst to the Ernst & Young ITEM club, because the governor of the Bank of England Mervyn King has recognised that low inflation will blight the UK economy for some time to come, little change will be made to the 0.5 per cent base rate.

She said that asthis is the case, the Bank should further extend its quantitative easing programme in a bid to restore stability to inflation levels.

"If they are well aware that [inflation] is going to undershoot surely they should be putting more quantitative easing in," Ms Mehta added.

"There is certainly no chance of policy being tightened anytime soon and the chances of increasing it are certainly there."

With the Bank having a clear remit to keep inflation under control, Ms Mehta said that when inflation does show signs of rising, it will have to act quickly to reverse its stimulus policies.

Consequently, while low interest rates could be seen for some time, when they do begin to rise, they will rise quickly, she noted.

The 0.5 per cent base rate is the lowest in the 315-year history of the Bank of England.

BRC concerned over response to empty retail outlets

Mon, 17 Aug 2009 15:50:17 GMT

A government scheme designed to rejuvenate local town centres fails to address "fundamental difficulties" for retailers, it has been claimed.

The British Retail Consortium (BRC) has spoken out against the initiative, which aims to encourage local authorities to find "creative" ways to deal with the closure of high street stores by offering £3 million in funding for the provision of community facilities in their place.

Richard Dodd, a spokesperson for the BRC, said: "While any contribution to improving the look of the country's devastated high streets is better than nothing, this isn't going to address the real, fundamental difficulties."

He added that the government should instead be "providing the services and jobs that local communities need, rather than leaving it until those businesses have failed and then trying to look for imaginative or contrived ways of filling up those premises".

Mr Dodd claimed that measures such as cutting crime and ensuring easier parking and access to town centres were more likely to have a positive impact on their welfare.

A study published last month found that seven in ten ex-Woolworths outlets remain empty, six months on from the official closure of the store.

Online marketing guidelines published

Fri, 14 Aug 2009 14:28:14 GMT

A new set of guidelines have been published for all parties involved in the practice of online marketing by the Internet Advertising Bureau (IAB).

The new Ethical Merchant Charter from the IAB's Affiliate Marketing Council (AMC) aims to promote "greater transparency" between publishers and merchants in order for working relationships to be cemented.

Under the new guidelines, new proposals are set for firms to communicate with their affiliated trading partners.

Areas covered under the guidelines include issues such as recommended notice periods, prices merchants should pay, transparency for deletion of sales and deduplication.

Matt Bailey, chair of the IAB's AMC, said the importance of improving relationships is "long established" and the proposals should "increase professionalism in the industry".

He added: "The release of these guidelines should serve two purposes: firstly to give publishers increased knowledge and confidence when working with merchants; secondly we aim to increase the knowledge of merchants by outlining to them that they need to treat publishers as partners."

The IAB's Video Council recently re-elected Robert Black as its chairman, with the key aim of furthering education in online video advertising to businesses across the UK.

Malware attacks increase by a third

Fri, 14 Aug 2009 14:27:14 GMT

The amount of dangerous web attacks increased by a third during the last three months, according to new report.

In news which could interest people working in network security, research by ScanSafe found that it blocked 36 per cent more malware during the second quarter of 2009 than it did in the previous three months.

This figure equates to an average of 4,575 malware blocks were customer, according to the firm.

ScanSafe claims that attacks from the Gumblar botnet were the most prevalent, with a 14 per cent rise in malware encounters related to the issue.

Mary Landesman, senior security researcher, said it was "not surprising" that there has been large increases in the "prevalence of data theft Trojans".

She added: "Stolen data is in high demand and in this economy cyber criminals are motivated to develop increasingly sophisticated tactics to obtain it."

When discussing the Gumblar threat, she stated the fact "the most serious threat of the year was not detectable by most standard anti-virus signatures should serve as yet another wake up call to the security community".

Recent research at PandaLabs found that only 48 per cent of 37,000 new malware samples it collected are still active after 24 hours.

FSA launches remuneration code

Thu, 13 Aug 2009 14:58:13 GMT

A new code requiring large banks, building societies and broker dealers to establish, implement and maintain risk averse remuneration policies has been introduced by the Financial Services Authority (FSA).

Designed to ensure that the total amount distributed by a firm is consistent with good risk management and sustainability, without reducing individual's incentives to succeed, the code instructs firms not to enter into long-term remuneration contracts.

In addition, eight principles have been added to the FSA's handbook in order to ensure firms understand how compliance will be assessed.

They will be required to provide the FSA with a remuneration policy statement by the end of October, with enforcement action possible if this condition is not met.

Hector Sants, FSA chief executive, said banks' remuneration policies should be consistent with, and promote, effective risk management.

"The new rules and code of practice, which will take effect from January, next year, are aimed at achieving this," he added.

"While there is general international agreement on the need for supervisory action on remuneration policies and practices we will be the first major financial regulator to take this step. We think that it is important to have rules in place for 2010."

The FSA is an independent non-governmental body responsible for regulating the financial services industry in the UK.

Social network retailing could weaken brands

Thu, 13 Aug 2009 14:56:13 GMT

The largest retail companies may not want to allow online consumers to shop with them on social networks due to the branding strength of the likes of Facebook and MySpace, it has been suggested.

According to Siim Vips, chief executive at the content management system and customer relationship management software company Modera, association with such popular sites could inadvertently weaken the identity of their own products and services.

He suggested that major retailers may well choose to retain transactions across their own sites because if they relinquish that, then they lose more than control over their brands and may even be forced to dilute them.

The untested potential of social networking websites as a destination for online shopping could also lead to many of the larger retail companies being cautious about embracing the platform, Mr Vips commented.

"Facebook may have a large audience, but whether they are ready to make transactions on the site through a brand remains to be seen," he added.

According to an article published by the Financial Times, a new wave of sophisticated ecommerce applications are appearing on Facebook, a sign that the social network could rapidly emerge as a central destination for online shopping.

Expert calls for investment in data quality

Thu, 13 Aug 2009 14:52:13 GMT

Businesses looking to clean up their data and then retain its quality must make sure their management understand the need to do so and take the appropriate steps, it has been claimed.

Dean Wiltshire, senior product analyst for data quality at the intelligence software, data and services company Pitney Bowes Business Insight, said firms should look to appoint a team of information and data quality (IDQ) professionals that can put a quality data initiative in place and uphold it.

He claimed that such teams can help to understand initial problems, set up a process that resolves them and then monitors data for breaches of the "threshold values" of quality.

"They may belong to different departments and such, but the team has to understand the value of the data and all the different sources," he added.

"That's the beginning of a quality data initiative, starting with a good governance policy – that's the nucleus that starts the downstream."

Mr Wiltshire explained that it is in the interest of any business to achieve and maintain accurate data because without sufficient quality "it is that much harder to satisfy your customer because you don't have a complete view of your customer".

According to the Pitney Bowes' State of Data Quality Today report, the issue of business data quality has been prevalent for decades but companies still find it a major challenge to maintain accurate information and quantify the true business cost of poor quality.

Expert says green shoots must be nurtured in housing market

Wed, 12 Aug 2009 15:41:12 GMT

Estate agents and financiers must learn from their mistakes if a sustained recovery in the housing market is to be achieved and further crashes are to be avoided, it has been claimed.

Jon Brown, of iammoving.com, was commenting after Centre for Economics and Business Research (CEBR) findings indicated that house prices are set to rise.

According to CEBR, the average house price of £152,000 at the end of 2009 will rise to £163,000 in 2012 and £174,000 in 2014.

Mr Brown said a "slight increase" in property values is to be expected towards the end of next year, but he urged caution for the future, saying steps need to be taken to add security to the market.

"There are the green shoots that we all keep hearing about, but it is up to us, the government and the banks to nurture them and learn from our mistakes," he said.

Mr Brown went on to say that an increase in confidence among lenders and in the wider economy would create a ripple effect, leading to more properties being built and therefore more affordable housing becoming available.

The Halifax house price index, published on August 5th 2009, found that house prices had increased by 1.1 per cent in July to £159,623.

KPMG says manufacturing sentiment rising

Wed, 12 Aug 2009 15:39:12 GMT

A strong rebound in confidence has been seen amongst UK manufacturers, with activity, new business and profits all forecast to increase sharply over the coming 12 months, according to KPMG.

The firm's latest KPMG Business Outlook Survey shows companies are retaining a degree of caution over future investment, but job prospects within the sector have improved since the winter.

Over 65 per cent of respondents said they expected a recovery within the next year – the resulting net balance of +53.8 representing a considerable increase on the series low of +1.2 registered six months ago.

Gautam Dalal, head of diversified industrials at KPMG, said the positive stimulus provided by relatively weak sterling was no doubt a factor behind the higher than average sentiment in the UK.

However, he noted that improvements in net balances for activity, revenues and profits across the European Union indicate there may be substance to the marked rise in confidence within the manufacturing sector.

Alan Buckle, global head of advisory at KPMG, added that there was plenty of reassurance to be taken from such a return to optimism amongst manufacturers in Europe's industrial heartlands.

Earlier this week, the Society of Motor Manufacturers and Traders reported that sales of new cars had increased for the first time in over a year.

Sales volumes up in July 2009

Wed, 12 Aug 2009 15:38:12 GMT

UK retail sales values rose 1.8 per cent on a like-for-like basis and 3.6 per cent on a total basis, from July 2008, according to the latest British Retail Consortium (BRC) and KPMG Retail Sales Monitor.

Sales volumes were slightly stronger than June, although the growth was against a weaker July 2008.

Food sales growth slowed, partly reflecting lower inflation, however homewares and furniture benefited from clearance discounts and wet weather and non-food non-store sales were 20 per cent higher than a year ago.

Stephen Robertson, director general at the BRC, said July showed both sides of the British summer and gave some parts of retailing a much-needed boost.

KPMG head of retail Helen Dickinson added that last month's trend had continued with retail sales holding up better than some other areas of consumer spending.

She added: "But the volatility of performance across the different sectors remains, highlighting the current precarious nature of consumer demand.

"The results for the month and the rest of the year need to be considered in the light of the performance last year, which continued to weaken as the year progressed."

The BRC-Nielsen Shop Price Index witnessed a 0.2 per cent fall in inflation last month.

Businesses could face rising bribery risks

Tue, 11 Aug 2009 15:48:11 GMT

Companies are taking risks by not having anti-bribery or corruption compliance programmes in place as they deem them relevant.

Professional services firm KPMG Forensic claims that two-thirds of companies currently believe countries exist in which it is not possible to do businesses without some hints of bribery or corruption.

Despite this, only 35 per cent using this business intelligence have put an end to doing business with these countries due to the risks.

Some 43 per cent of firms admitted they do not have compliance programmes in place to deal with possible bribery or corruption instances when they arise.

Alex Plavsic, head of fraud investigations at KPMG Forensic, said companies now have "greater awareness" of the risks as the number of investigations and regulation increase.

He added pressures on businesses due to the economic downturn could lead to firms over-riding anti-bribery and corruption laws.

"Compliance processes need to be robust, with special emphasis on due diligence with regard to third party agents, if companies are to protect themselves from regulatory scrutiny and reputational damage," said Mr Plavsic.

"The signs are that many companies could be doing more to manage the risks."

A cross-party parliamentary committee recently called for tougher bribery laws while evaluating the UK's draft Bribery Bill, which was published by the Ministry of Justice in March.

Study suggests swine flu currently having limited impacts on business

Tue, 11 Aug 2009 15:47:11 GMT

The majority of UK businesses are not being affected by the swine flu pandemic, it has been reported.

Research conducted by the Institute of Directors (IoD) indicates that 85 per cent of firms have weathered the potential storm of widespread absenteeism so far.

As reported by Continuity Central, many firms have issued guidance notes to employees explaining how they intend to deal with the situation – with some instructing employees with symptoms to stay at home.

The IoD says the main problem for many companies is the small minority of employees who are attempting to take advantage of such guidance to stay off work in bad faith.

Corin Taylor, IoD senior policy adviser, said: "So far companies have not been severely affected by swine flu, with directors able to focus on the immediate priority of staying afloat during the economic crisis.

"We may be in the calm before the storm if swine flu does develop into a full blown pandemic later in the year, but there has not been much impact on day-to-day operations up to now."

The Federation of Small Businesses recently claimed that UK firms need additional support to emerge unscathed from the swine flu pandemic.

TUC says worker retention relies on equal rights

Tue, 11 Aug 2009 15:47:11 GMT

Businesses can maximise the potential of the UK's migrant workforce by offering equal rights to all workers, it has been suggested.

According to Brendan Barber, general secretary of the Trades Union Congress, many firms rely on the labour provided from overseas and it is important to retain such workers.

He was commenting after the Institute for Public Policy Research (IPPR) claimed that increasing numbers of immigrants coming to the UK are only staying in the country for a short time before departing.

The report said three million migrants have left in the last thirty years but the rate of departure could be increasing despite a new citizenship scheme launched by the government.

Mr Barber said the whole UK benefitted from the diverse range of skills brought to the UK by migrant workers.

"To maximise the benefits of migration and minimise the dangers of undercutting, exploitation and community division, we need strong and equal rights at work for everyone, regardless of where they come from or the work they do," he stated.

The IPPR says the migrants who are most likely to leave the UK soon after arrival are those with high skills, good education and low barriers to movement.

Email, blogs and social networking sites increase data security risks

Tue, 11 Aug 2009 15:47:11 GMT

Businesses are increasingly concerned about data security within their organisation due to a hike in the usage of email, blogs and social networking sites, new research has found.

The June 2009 study by Proofpoint found that 34 per cent of businesses have been impacted by exposure of sensitive or embarrassing information, which is up from 23 per cent in 2008.

It was found that emails were still the number one threat, with 43 per cent of companies having to investigate an email-based leak of confidential information in the 12-month period.

Blogs were found to be responsible for 18 per cent of data security issues, while eight per cent of respondents admitted to sacking an employee due to a violation linked to a social networking website.

The report stated: "Even short message services like SMS texts and Twitter pose a risk. 13 percent of companies investigated an exposure event involving mobile or web-based short message services in the past 12 months."

The International Association for Information and Data Quality recently claimed that companies need to ensure they look after all aspects of their data.

It claims businesses must make it of prime importance that their data meets the needs internally, to their external partners and also customers.

Businesses are increasing marketing budgets

Tue, 11 Aug 2009 15:45:11 GMT

Sales and marketing budgets are increasing in businesses across the UK, according to new research.

A study by Econsultancy and Clash-Media has found that 53 per cent of marketing budgets have increased over the last 12 months, despite the economic downturn.

The extra money dedicated to sales and marketing has predominantly been used for online lead generation campaigns, with 61 per cent of respondents spending money on this technique compared to 51 per cent in 2008.

Businesses surveyed said they are focusing on this sales and marketing method as it is seen as more cost-effective, can target prospective customers better and as offering an improved return on investment.

Some 72 per cent claimed to be moving their marketing online due to its cost-effectiveness while 73 per stated they feel it can help tem improve customer base.

Simon Wajcenberg, chief executive officer of Clash-Media, said: "It's great news for the industry that the majority of marketers are seeing increased budgets - and very few are seeing a reduction = and that they can see the benefits of online lead generation."

A recent study by Mobile Marketing Magazine found that 48 per cent of businesses are expecting to assign over 30 per cent of their sales and marketing budgets to online advertising over the next 12 months.

Customer Focus calls for payment and order compliance

Mon, 10 Aug 2009 12:51:10 GMT

Company directors should be prosecuted for abusing consumers' prepayment money, according to a leading watchdog.

After research found that nearly one in ten consumers who made a prepayment over the last two years did not receive their order, Consumer Focus said directors should be made to pay money back out of their own accounts if they have misappropriated it.

Russell Guthrie, a spokesperson for Consumer Focus, said the government had made "some good steps so far" in terms of looking after consumers in debt, but he said there is still a need for some firm action.

He noted: "We are looking for quick action from them, because we are in the recession at the moment, and the number of companies that are going bust are up 40 per cent on this quarter last year.

"When a company does go bust and the assets have been sold off, banks get 35 pence in a pound and consumers get three pence. That's if they are lucky."

Customer Focus reports that of the 1.8 million people who did not receive their order in the last two years, just under half did not receive any money back, with the average loss reported to be £242.17 each time.

Firms urged to focus on data quality

Mon, 10 Aug 2009 12:45:10 GMT

Companies and other organisations should look after all the aspects of their data that makes it most valuable to the way they work, it has been suggested.

According to the International Association for Information and Data Quality, this allows it to be used most effectively for the benefit of both decision makers and customers.

Daragh O'Brien, director of publicity at the not-for profit professional society, said that accuracy "only reflects a part of what information quality is about" and the focus should be on "ensuring organisations are doing those things that are necessary to ensure that their information meets the needs of their internal processes, their external partners, and ultimately their customers".

He explained that timeliness, definition, relevance, format and ease of use all played a significant part in the maintenance of high quality data.

Mr O'Brien added: "All these various dimensions of data quality significantly increase the complexity of maintaining high quality data.

"Quality is about meeting or exceeding the needs of today while being in a position to scale to the challenges of tomorrow."

Research firm Gartner recently urged organisations striving to improve data quality to consider appointing data stewards.

It claimed appointing such individuals can help organisations achieve data quality improvement goals.

ROI benefits from customer relationship management

Mon, 10 Aug 2009 12:43:10 GMT

A new study has found customer relationship management (CRM) to be the most effective marketing activity in terms of return on investment (ROI).

Research conducted by the Chartered Institute of Marketing (CIM) indicates that a quarter of marketers think the best ROI is delivered by CRM activities, particularly among those working in financial services and other firms.

Darren Mercieca, a Business Link adviser, claimed CRM is an increasingly popular way for businesses to maintain effective commercial contact with their clients.

He stated: "CRM gives a business a lot of insight into what they have done with customers in the past, for example their buying patterns, and this may provide scope to do more in the future.

"We are finding that at the moment organisations are feeling a lot of pressure in terms of turnover and are perhaps looking for news customers when in fact with an effective CRM process in place they could grow the business with their existing customers."

He said that instead of merely storing contact details and customer preferences, businesses can put a buying pattern in place based on the information they have on customer trends such as how and when they buy and how they like to pay.

Last week, business internet service provider Star launched a pay-as-you-go CRM service aimed at getting businesses started in customer relationship management at a low cost.

CBI says access to credit improving

Mon, 10 Aug 2009 12:34:10 GMT

The ease with which businesses are obtaining credit is improving, it has been reported.

According to the Confederation of British Industry's (CBI) latest Access to Finance Survey, they also expect the situation to improve at a similar rate over the coming three months.

Of those firms seeking new credit lines in the past three months, 27 per cent said availability had improved, while 10 per cent said it had worsened.

The positive balance of 17 per cent represents a significant improvement on the -20 per cent recorded in May.

Richard Lambert, CBI director-general, said the improvement in access to new credit would help many businesses struggling with the recession.

"It is encouraging that its supply is expected to improve in the months ahead," he added.

Mr Lambert said that while it is still unclear when bank lending will be flowing freely again, for many firms credit conditions are "at last moving in the right direction".

David Dooks, statistics director at the British Bankers' Association recently reported that an increase in lending to small businesses had been witnessed.

Report calls for greater commitment to green energy sector

Fri, 07 Aug 2009 11:35:07 GMT

A new report has called for the UK to invest in green energy in order to reduce its reliance on imported fuel.

Commissioned by Gordon Brown, the paper from Malcolm Wicks MP, the Prime Minister's special representative on international energy, claims that moves to a a low-carbon economy will be as crucial to the future energy security of the UK as combating climate change.

Mr Wicks, the member for Croydon North, has called on the government to prioritise domestic renewable energy projects as it bids to improve its own power independence.

He stated: "We must be far smarter with the energy we use and invest in homegrown energy sources, such as new nuclear and renewables without delay.

"Complete energy independence is an unrealistic goal but there is much we can do to insulate ourselves from the risks, in large part by driving our climate policies even further, quicker."

The report has also called for the UK to be kept at the forefront of carbon capture and storage technology.

Josh Krischer, the founder of independent analyst and data centre consulting Krischer & Associates, recently claimed that upgrading IT storage systems with green technology can help businesses reduce costs and aid the environment.

UK car sales finally rise again

Fri, 07 Aug 2009 11:34:07 GMT

The first rise in the volume of new car registrations in 15 months has been witnessed, according to the Society of Motor Manufacturers and Traders (SMMT).

UK car sales rose by 2.4 per cent in July compared with the same month last year, as the positive effects of the government's car scrappage scheme began to be felt.

A total of 157,149 units were sold last month, although the market still remains down by almost 550,000 sales over the past 12 months.

Under the scrappage scheme, a £2,000 discount is offered to consumers purchasing new vehicles, providing their previous car was registered before August 31st 1999.

Paul Everitt, SMMT chief executive, said the automotive industry had been encouraged by the positive impact the initiative has had, increasing new car registrations for the first time since April 2008.

He added: "Industry still faces a long road to recovery and we urge government to take action to sustain economic recovery through easing access to finance and credit and delivering the loan guarantees set out by the Automotive Assistance Programme."

Last month, JATO Dynamics' July analysis indicated that the new car market had continued to improve over the first six months of the year.

Unexpected increase for quantitative easing programme

Fri, 07 Aug 2009 11:32:07 GMT

The Bank of England's Monetary Policy Committee (MPC) has made the surprise decision to inject a further £50 billion into the economy through its asset purchasing programme.

Spending on quantitative easing will now total £175 billion, £25 billion more than the amount set aside by Chancellor Alistair Darling to inject into the economy.

Commenting at the conclusion of its monthly meeting, the MPC said the additional stimulus action was required as the recession appears to have been "deeper than previously thought".

The committee expects the programme of purchases of government and corporate debt to take another three months to complete, while the scale will be kept under review.

According to the MPC: "While some recovery in output growth is in prospect, the margin of spare capacity in the economy is likely to continue to grow for some while yet, bearing down on inflation in the medium term.

"But the recession and the restricted availability of credit are also likely to impact adversely on the supply capacity of the economy, moderating the increase in economic slack."

As expected, the MPC chose to hold interest rates at the historic low of 0.5 per cent for a fifth consecutive month.

Earlier this week, Vicky Redwood of Capital Economics, predicted that the Bank would choose to follow this course of action, while also extending its quantitative easing programme by £25 billion.

Expert calls for less impulsive investor approaches

Thu, 06 Aug 2009 14:05:06 GMT

Investors should avoid the urge to rush out and buy new stocks or sell their stakes without full consideration, it has been suggested.

Commenting after strong half-year results from Barclays and HSBC encouraged a surge in market activity, Dante Peters, director at Magus Financial Management, said impulsive decisions are not the way forward on the stock market.

The two banks may have reported combined profits of almost £13 billion, but he said poorer results published by Lloyds TSB should serve as a reality check.

Some 27 per cent of investors surveyed by the firm said they had moved some or all of their money out of stocks and shares and into more cautious asset classes in the past six months – just a one per cent decrease when compared with the six months to December 2008.

Mr Peters claimed the problem with markets is that "they tend to be driven by emotion rather than reality", both for institutional and retail investors.

"Once you get good news people then tend to go into euphoria and the problem is that you get over optimism at one end of the scale and pessimism at the other," he stated.

Mr Peters added: "What we say to people is get your attitude to loss right because when the markets rise people want to buy more and when they fall they want to sell everything, but if you actually ask investors what they want it's an investment experience that isn't like a rollercoaster.

Sophos says hackers need to be tackled

Thu, 06 Aug 2009 14:03:06 GMT

While cybercriminals breaking into computers and stealing information often do so for financial gain – therefore committing serious offences – many people do not see hacker activity as constituting major crime, it has been claimed.

According to Graham Cluley, senior technology consultant at Sophos, the public tends to view hacking as a victimless crime, and therefore largely insignificant.

He commented: "They don't view it as a traditional crime and they think that because it's via computer it doesn't really matter.

"That isn't the case. Breaking into someone else's computer, stealing information – these are serious crimes and people can be financially hit as a result of it."

Mr Cluley warned of the dangers of hackers to businesses and suggested that those individuals who seek to cheat and defraud using the internet urgently need to be caught and imprisoned.

According to the Associated Press, a powerful new type of internet attack works like a telephone tap, except it operates between computers and websites they trust.

If a criminal infiltrates a network, they can set up a secret eavesdropping post and capture credit card numbers, passwords and other sensitive data flowing between computers on that network and sites their browsers have deemed safe, it is reported.

Attackers could also hijack the auto-update feature on a victim's computer and trick it into automatically installing malware pulled in from a hacker's website.

Tesco executive issues ombudsman concerns

Thu, 06 Aug 2009 13:59:06 GMT

An ombudsman to arbitrate on disputes between grocery retailers and suppliers would mainly benefit large, successful suppliers, it has been claimed.

Lucy Neville-Rolfe, executive director at Tesco, said the benefits would largely be limited to major firms which are already able to look after their own interests.

She was commenting after the Competition Commission recommended the introduction of an ombudsman to arbitrate on disputes and investigate complaints under the new Groceries Supply Code of Practice.

Ms Neville-Rolfe noted that Tesco supported an effective code of practice and the latest changes would strengthen this further by including more retailers and making contractual terms clearer across the industry.

However, she added: "We believe that perversely the ombudsman would mainly benefit large successful suppliers.

"It's a highly competitive industry and if our ability to negotiate with such suppliers is reduced the inevitable result will be higher prices to consumers at a difficult time."

Back in February 2009, the Competition Commission published a draft strengthened and extended Groceries Supply Code of Practice for consultation and, after considering responses, it has now published the final Order.

Retailers covered by the order now have six months to ensure compliance with its provisions.

Law firms warned to comply with client screening obligations

Wed, 05 Aug 2009 15:25:05 GMT

Many UK law firms fail to appreciate the client screening obligations they face under Her Majesty’s Treasury (HMT) rules, it has been reported.

Research conducted by compliance screening specialists Datanomic and risk management firm Legal RM indicates that 74 per cent of surveyed firms have not checked their entire client list against HMT sanctions lists, while 48 per cent do not screen new clients against Consolidated Sanctions records.

Many firms are still relying on outdated e-verification systems or monitoring systems that are incapable of cross checking aliases, abbreviated names and transposed names, it is claimed, increasing the risk of them unknowingly acting on behalf of criminals.

Christopher Giles, managing director of Legal RM, said law firms' duties to conduct ongoing client monitoring and due diligence on a risk-sensitive basis have been translated into file audits with "no real monitoring of clients whatsoever".

He added: "With the global threat of terrorism, regulators are simply not willing to tolerate complacency when it comes to client screening.

"We're already seeing significant penalties and fines levied against individuals for failure to implement adequate records regarding identity verification of clients and risk procedures, as well as corporate fines imposed against firms."

Management advisor Nerino Petro of the Wisconsin Bar recently urged lawyers to be discerning when taking on new clients – something he admitted could be "a challenge" when business is slow.

BRC index reports July fall in inflation

Wed, 05 Aug 2009 15:24:05 GMT

Annual inflation of 0.5 per cent was recorded in July by the British Retail Consortium (BRC)-Nielsen Shop Price Index, down from 0.7 per cent in June.

This represents the lowest level of inflation since December 2008, when the rate of VAT fell from 17.5 to 15 per cent.

Food inflation fell sharply to 3.8 per cent last month from 5.6 per cent, while non-food deflation slowed from 1.9 per cent in June to 1.3 per cent in July.

BRC's director-general Stephen Robertson said the low level of food inflation was helped by a dramatic fall in the price of some commodities.

He added: "Corn prices have nearly halved over the past year. The cost of animal feed, which was one of the main factors driving up fresh food inflation last year, has also fallen by a third compared to a year ago.

"Non-food prices have now been cheaper than last year for eight months in a row. Clothing, footwear and electricals have seen the biggest price falls."

Mr Robertson said customers were benefiting from a high degree of competition between UK retailers.

Last week, the Confederation of British Industry claimed UK retailers are experiencing a tough summer, despite claims of an upturn in the economy.

Expert urges balance in communication technology use

Wed, 05 Aug 2009 15:22:05 GMT

Business managers should not abandon face-to-face communication in the workplace, despite the increasing use of email and instant messaging, it has been claimed.

After research from recruitment scoring website Hirescores.com showed that 20 per cent of managers admit to handling their office politics via MSN or through work emails, Ruth Spellman, chief executive of the Chartered Management Institute, said managers should be wary of isolating workers by communicating solely online.

She commented that not everyone wants to socialise over the internet, yet the ease of using the web in this way could blind more enthusiastic managers to the absence of some people or some groups in online networks.

"It may also disadvantage non-participants; and an awareness of the age and gender effects in internet usage may alert managers to the need to be inclusive in their communication, using personal as well as computer-mediated channels," Ms Spellman added.

She claimed that technology is continuing to transform jobs in unexpected ways, meaning younger managers may have a role to play in helping senior colleagues adapt so they too can take advantage of new innovations.

Research from email service company GMX recently found that one in three Britons who use email at work are regularly offended or upset by accident as a result of misunderstanding or speed-reading emails from colleagues.

Expert claims quantitative easing could be extended

Tue, 04 Aug 2009 11:43:04 GMT

The Bank of England's Monetary Policy Committee (MPC) is likely to vote to extend its quantitative easing policy at this weeks' meeting, according to the economic research consultancy Capital Economics.

UK economist Vicky Redwood said the Bank is likely to keep interest rates at 0.5 per cent and extend its asset purchasing scheme by a further £25 billion.

At its July meeting, the MPC decided to keep interest rates at 0.5 per cent for the third month running, while also committing to continue injecting money into the economy through its £125 billion quantitative easing scheme.

However, Ms Redwood claimed that the purchase of government stocks "appears to have had very limited effects" so far, meaning the Bank is likely to step up the programme this month.

"There are still limited signs that the economy is recovering at a strong pace and there is still scope to do more," she said.

Ms Redwood said it was even possible that the suggested increase of £25 billion could be exceeded should the Bank see significant merit.

The MPC will announce its decision at midday on Thursday August 6th.

IT sector sympathy for UFO-obsessed hacker

Tue, 04 Aug 2009 11:42:04 GMT

Many professionals working in the IT community do not believe that Gary McKinnon, accused of breaking into 97 computers belonging to Nasa and the US armed forces, should be sent to the USA to face prosecution, it has been claimed.

According to security software vendor Sophos, the fact that the accused was looking for covered up evidence of extraterrestrial life, as opposed to trying to defraud anyone, should be taken into account.

Graham Cluley, senior technology consultant at the firm, said that many IT professionals were sympathetic towards Mr McKinnon's wish to face trial in the UK because he is "a lone conspiracy theory nut with a UFO obsession rather than someone who wanted to do serious damage to corporate networks".

"It doesn't appear to have been financially motivated, as most hacking these days is about making money," he noted.

"I think there's a feeling generally that the USA might be trying to make a bit of an example of him, particularly because it appears that their computer systems were very poorly defended in the months following 9/11."

According to a survey published by Infosecurity Europe, 55 per cent of firms are set to increase their IT security spending this year, while 34 per cent expect to maintain similar levels of expenditure to last year.

Encouraging signs in midmarket manufacturing

Tue, 04 Aug 2009 11:38:04 GMT

Signs of cautious optimism are being seen in the midmarket manufacturing sector, it has been suggested.

Adam Buckley, head of programmes for The Manufacturing Institute (MI) and Confederation of British Industry (CBI) councillor for the north-west, said the latest CBI Trends Survey indicates a more positive outlook in a sector which is "critical" to the success of the UK economy.

He noted that twice as many businesses are confident they will see growth over the next 12 months than three months ago, pointing to an easing of economic conditions.

Mr Buckley stated: "The evidence points to a less gloomy outlook, but there is no denying that conditions remain extremely tough, especially for those in industries supporting the housing, automotive and construction industries, which are exposed to the full brunt of recession.

Reducing production costs remains "the number one challenge" for manufacturers, he added, together with the cost of raw materials, falling sales and lower margins.

According to research published on July 7th by the Office for National Statistics, total UK production output decreased by 1.8 per cent between April and June and fell 12.3 per cent against the same three-month period a year ago.

Remote working encouraged to tackle swine flu pandemic

Tue, 04 Aug 2009 11:36:04 GMT

Mobile technology can be used to ensure business continuity in the wake of the swine flu pandemic, it has been suggested.

Commenting after research conducted by business internet service provider Star indicated that 92 per cent of businesses believe remote working would help them cope with a crisis caused by illness, marketing director Martino Corbelli explained the benefits of this format.

He said the recent publicity surrounding swine flu has undoubtedly meant that more firms have been considering how they will remain operational if the majority of employees are unable to travel to work.

Mr Corbelli commented: "Businesses that do not have remote working facilities or that only provide remote access to corporate email will find it extremely difficult to remain operational in the event of a disaster.

"This could lead to an inability to respond to customer requests, or loss of sales. The net effect of that may be poor customer retention and a drop in future profits."

He suggested that the recent legislation supporting flexible working practices for parents has also opened employers' eyes to the benefits of allowing staff to work from home.

Last year, Gordon Brown announced plans to make flexible working available for all parents with children aged up to 16 years of age.

Firms urged to use blogs to drive revenue

Mon, 03 Aug 2009 15:19:03 GMT

Businesses seeking to drive revenue through their website should ensure they are using blogs to their advantage, it has been suggested.

According to Lawrence Perry of CatchFriday.com, written online content has a "tremendous power" to reach people and influence their opinions and behaviour.

He suggested that by offering relevant, sensible business advice online, firms can attract users to their websites, increasing the prospects of them investing in goods or services.

Mr Perry said bloggers should relax and have fun with the medium, rather than consider it an additional chore.

He suggested that ensuring a high quality of content is provided is more important than "struggling with stats and chasing internet traffic".

Continuing, he advised: "Link freely - post links to articles, websites and other materials online that you find worthy.

"Posting links to contents that are of value may be directing traffic out of your site but if your contents are worthy and you link to other sites that also provide value, then you will be able to establish yourself as a good blogger who provides value and readers will keep coming back."

Professional blog templates and a memorable domain name are also important for firms wishing to attract new custom via the web, Mr Perry suggested.

Chris Lake, editor in chief at Econsultancy, recently claimed that the regular posting of unique, quality content is key to the success of any business blog.

Capital Economics warns of slow recovery

Mon, 03 Aug 2009 15:18:03 GMT

The economic recovery will be a long and drawn-out process if bank lending does not pick up in the near future, it has been claimed.

UK economist Vicky Redwood, of Capital Economics, said the Bank of England's revelation that businesses paid back more money than they lent in the year to June 2009 is "worrying" in terms of the speed of recovery from recession.

She said the government and the Bank of England are working to improve the willingness to lend, partly through quantitative easing and also through financial support for the banking sector.

"So far though those policies seem to be having limited success which probably suggests that the Bank of England will have to continue with its quantitative easing policy and that the government will have to do more to get the banks to lend - especially the partly nationalised banks," Ms Redwood added.

According to figures published by the Office for National Statistics on July 24th, gross domestic product decreased by 0.8 per cent in the second quarter of 2009, compared with a decrease of 2.4 per cent in the first quarter.

Ms Redwood said this sharp fall could partly be attributed to the lack of bank credit and the fact that an economic recovery hinges partly on this.

Vacant premises require new uses

Mon, 03 Aug 2009 15:16:03 GMT

New uses need to be found for vacant high street retail units, to improve the image of the UK's town and city centres, it has been suggested.

According to David Frost, director general of the British Chambers of Commerce (BCC), seeing empty shops in major retail areas is having the effect of knocking business and consumer confidence.

He was commenting after a study conducted by retail research firm The Local Data Company indicated that nearly 12,000 independent stores and 7,000 major retailers have closed this year.

Mr Frost said that vibrant town centres are "at the heart of prosperous communities" and attempts must be made to present them in the best possible light.

He suggested: "We need to look at new uses for vacant units; have flexible rents and rates, and ensure that employment taxes are set at a level that will help businesses with cash flow and encourage job creation."

According to The Local Data Company, vacancy rates have also been hit by a 50 per cent drop in the number of new retail openings over the last 18 months.

The personal goods and services sector has shed 197 stores this year, while clothing and footwear saw a decline of 190 shops over the same period.

Firm calls for more ambitious digital targets

Fri, 31 Jul 2009 14:54:31 GMT

Broadband Genie has expressed concerns over the government's commitment to make universal access to 2Mbps broadband available by 2012.

The firm says the commons business and enterprise committee examining the Digital Britain report should find that this is not fast enough to meet the UK's growing needs.

Chris Marling, editor at the broadband comparison site, said that the committee is asking "if the 2Mb target is ambitious enough and the answer is sure to be a resounding no".

He stated: "We have made it very clear since Digital Britain was published that aiming for a nationwide speed of 2Mbps by 2012 is woefully inadequate.

"While we understand Lord Carter had a large range of stakeholders to appease, the end result for broadband was a pointless target that will achieve very little - it's not ambitious at all."

Mr Marling said he hoped the commons committee would show "a little more backbone" when delivering its verdict on the report.

According to a study conducted by media regulator Ofcom, the majority of consumers are happy with the fixed line broadband speeds they currently receive.

However, 26 per cent said the speed was not what they expected when they signed up to the service.

Booking ahead can save money on business travel

Fri, 31 Jul 2009 14:52:31 GMT

Businesses can save money on travel costs by making advance ticket purchases, it has been claimed.

According to Gill Upton, editor of Business Travel Magazine, firms which arrange meetings on a regular basis should be taking advantage of the special discount offers available for early booking.

While she recognised that in some cases it is necessary to take last minute flights or train journeys to attend hastily-arranged meetings, she said forward planning could help reduce the travel bill.

"If you can advance book anything over 30 days, you can have huge savings, particularly on rail," Ms Upton stated.

She suggested that downgrading travel classes also made financial sense, as although it may be beneficial to book a business class ticket for a potentially uncomfortable overnight run, at other times standard fares may be sufficient.

Data from Visa Europe recently indicated that business spending has improved over the first two quarters of 2009, after declines in the last three months of 2008.

According to the study, the number of travel tickets paid for on Visa Business Cards rose ten per cent year-on-year in June 2009.

Indeed, the number of Visa Business Card transactions made on air travel returned to pre-October 2008 levels.

TUC urges government to press on with green IT

Fri, 31 Jul 2009 14:30:31 GMT

The UK is faltering in its bid to become a world leader in the green technology industry, it has been suggested.

Commenting after a report from climate change recruitment company Acre Resources, media giant Thomson Reuters and corporate social responsibility consultancy Acona indicated that over a third of climate change workers in the UK are not British citizens, the Trades Union Congress (TUC) called for further state action to drive the sector forwards.

It wants to see the government honour a pledge to create 1.2 million green jobs by 2020, as proposed in its Low Carbon Transition Plan.

Brendan Barber, general secretary of the TUC, said the UK was currently lagging behind its European neighbours in embracing green technology, despite its many promises and the fact that it already has a "world class" manufacturing base to build upon.

"By investing heavily and regulating in favour of green technology, the government can turn the UK into a world leader and create over a million skilled jobs," he stated.

Under the Low Carbon Transition Plan, the government has committed to reducing carbon output by 34 per cent on levels seen in 1990 by 2020.

Firms urged to focus on business continuity

Thu, 30 Jul 2009 14:43:30 GMT

Business continuity is "no longer just an option" for firms hoping to survive and thrive in the future, it has been claimed.

Alan Berman, executive director for DRI International, told Newsday that companies need to form disaster recovery plans, which involve having back-up services stored on dedicated servers or shared hosting.

The business case for doing so potentially extends beyond the simple need to limit losses in the event of a disaster, he said, claiming that many firms are now reluctant to work with those which lack continuity planning.

With customers equally concerned about the potential for damage and personal loss should unforeseen circumstances arise, businesses have no choice but to take precautions, he stated.

"It's now become a competitive disadvantage not to have a business continuity plan," Mr Berman stated.

According to Aastra's business development manager Mike Ballantine, the recent outbreak of swine flu has highlighted the need for alternatives to office working to exist.

He said companies must establish business continuity plans to allow normal work operations to continue in the event of an emergency.

"Businesses must continue, so they have got to look at how they can do that in the best possible way," he noted.

Calls for further action on gender pay gap

Thu, 30 Jul 2009 14:42:30 GMT

A new report has provided evidence that the gender pay gap still exists, and is worsening rather than stalling.

The findings by the Women and Work Commission also stated that women are still paid, on average, 22.6 per cent less per hour than men, some 40 years after this practice was made illegal.

According to the commission, the gap has reduced from 27.5 per cent over the last decade, but further progress has not been seen.

Kat Banyard, campaigns officer at the Fawcett Society, said her organisation was "sadly not surprised" by the report.

She claimed that equal pay legislation was "simply not working" and wholesale reform is required to introduce equality.

"What we need to be looking at is valuing traditional women's work more than we currently do, but one immediate measure we can take to do that is to implement pay audits," she explained.

"That would go a long way to tackle the general valuation of women's work and pay discrimination."

An Equality and Human Rights Commission report, published in April 2009, reported that the gender pay gap for full-time hourly gross earnings is 45 per cent among the UK's highest earners.

ICT growth to aid economic recovery

Thu, 30 Jul 2009 14:34:30 GMT

The UK's information and communication technology (ICT) sector can help the country recover from recession by driving the economic growth lost by the declining manufacturing and finance sectors, it has been claimed.

According to technology association Intellect, the ICT industry will be "at the core of new growth" in the UK, offering a more balanced economy moving forwards.

Intellect programme manager Jennifer Carlton said the government must put the "right policy framework" in place, such as increasing the research and development tax credit available to larger companies, to support the sector.

She cautioned against any removal or reduction of this concession and recommended an improvement for larger companies.

Ms Carlton commented: "Intellect has recognised the importance of making the UK an attractive place to do research and development.

"In the Intellect report Helping Innovation Flourish, published in March, we identified areas where changes would improve the business environment and promote innovation."

This week, the National Computing Centre urged businesses to either upgrade their own IT infrastructures or invest in hosted services.

Firms warned of need to protect temp rights

Wed, 29 Jul 2009 14:14:29 GMT

Businesses have been urged to ensure that temporary workers receive the same rights as permanent members of the workforce.

According to the Public and Commercial Services Union, temps often do the same job as their fully contracted colleagues, but receive inferior pay and entitlements.

A spokesperson for the union said there is a danger that the rights of temps, who make a valuable contribution to the economy, are simply "forgotten about".

He stated: "We have been successful in some areas in terms of getting agency staff recognised, and getting them on a par with some of their permanent colleagues in rights and conditions and pay.

"There is work to be done, and I know that other unions are taking the issue very seriously."

Earlier this week, the Trades Union Congress reported that just 23 per cent of agency workers pursued this employment path because they enjoyed the flexibility afforded by temping.

Some 32 per cent of survey respondents said they would rather have a permanent job but could not find one.

The UK has a deadline of December 2011 to implement the Agency Workers Directive, which will grant equal pay and holiday conditions to temp workers who have spent at least 12 weeks on one placement.

CBI warns of tough summer for retailers

Wed, 29 Jul 2009 14:12:29 GMT

Retail sales fell for the third month running in the year to July, according to the Confederation of British Industry (CBI), which is also predicting a weak August.

Some 32 per cent of respondents in the trade body's latest Distributive Trades Survey said volumes had increased during the month, but 47 per cent claimed they were down.

The three-monthly average of sales volumes, which eliminates peaks and troughs in the market, remained negative at -15 per cent and is expected to worsen to 21 per cent in August.

Andy Clarke, chairman of the CBI's Distributive Trades Panel and chief operating officer of Asda, said many retailers were having "a difficult summer".

However, he noted that the overall sales falls were not as heavy as those seen at the start of the year and some retail sectors were now reporting growth.

"The recent sharp rise in unemployment will worry many consumers, and is likely to constrain sales growth in the months ahead," he stated.

Earlier this week, the Office for National Statistics reported a 1.3 per cent rise in retail sales during the second quarter of 2009.

Stephen Robertson, director general of the British Retail Consortium, said the results confirmed earlier findings from his organisation.

Outlook positive for housing sector

Wed, 29 Jul 2009 14:11:29 GMT

Early signs of a recovery in the housing market are being seen, it has been claimed.

Timothy Lambert, head of consulting at Ducalian, said there is now reason to be confident that house prices will begin to rise, but additional stock is required first.

Latest figures from the Land Registry showed a 0.1 per cent rise in the monthly house price change during June 2009 – the first positive reading since January 2008 – raising hopes that the worst of the recession has now been suffered in the sector.

Mr Lambert said the outlook for buyers was more positive than at any point since the early 1990s, with low values and interest rates making it "possibly the best time to fix a mortgage in a generation".

He added: "Now is a very good time to buy and invest, but as with any other time in the property lifecycle, buyers must do their due diligence.

"Not every property or area is a sound prospect. More importantly, you will not make a quick buck in this market."

Mr Lambert added that it may be the ideal time for homeowners to investigate their options with regards trading up.

Nationwide recently reported that house prices rose by 0.9 per cent during June 2009.

CRM and CMS can help businesses manage websites

Tue, 28 Jul 2009 15:35:28 GMT

Businesses can optimise their website content effectively by using content management and systems (CMS) and customer relationships management (CRM) services, it has been suggested.

According to Siim Vips, chief executive at Modera, the fact that many firms do not control, or in some cases even have access to their sites, creates a role for CMS and CRM.

He said CMS are as simple to use as word processing software and social networks, but bring many more options and choice.

Mr Vips added: "With websites being the heart of businesses now, it makes perfect sense for brands to use a CMS and CRM to build and manage a host of their business and promotional requirements.

"These systems enable them to pull in what they need and when they need it, providing the right platform to work from is implemented from the outset."

Earlier this month, James Fahey, founder and chief executive of the social networking community Independent IT Analyst, said many businesses are failing to obtain enough unbiased information when screening potential CRM and sales force automation applications.

He said this oversight can lead users to be unhappy with the systems they ultimately adopt.

Firms urged to embrace business intelligence

Tue, 28 Jul 2009 15:31:28 GMT

Business intelligence (BI) tools can be utilised by companies to help them reduce costs and emerge intact from the economic downturn, it has been suggested.

Writing for News Factor, editor Jennifer LeClaire said companies cannot afford to ignore analytics tools in the midst of a recession.

She explained that BI tools can help business executives understand and analyse information, allowing them to make more educated decisions.

"BI software deals with measuring, managing and improving the performance of everything from individuals, processes, teams and business units," Ms LeClaire noted.

She suggested that such tools could be used to identify unprofitable products, misfiring marketing campaigns and other inefficiencies, leading to a reduction in bottom line costs.

Dan Sommer, a senior research analyst at Gartner, said there is a focus on reducing expenditure at present rather than growing revenues, something BI can contribute to.

"Software vendors are fine-tuning their total cost of ownership messaging to users much more today, as that is what will get the ear of budget holders," he said.

Earlier this year, research firm Gartner called on companies to "transform and significantly improve" their business operations through detailed analysis and the implementation of new strategies.

Lord Mandelson announces manufacturing support plan

Tue, 28 Jul 2009 15:29:28 GMT

Lord Mandelson has launched a £150 million scheme to help manufacturers take advantage of emerging technologies, it has been reported.

Industries such as aerospace and nuclear power will receive further funding under the initiative, which is part of the prime minister's Building Britain's Future programme.

Rolls Royce alone has been given £45 million to establish new manufacturing plants in the UK, while £12 million will go to a Printable Electronics Centre in Sedgefield.

Lord Mandelson said the measures would help equip manufacturers of all sizes and sectors "to take advantage" of advanced technologies and new market opportunities in a low-carbon Britain.

Commenting on the announcement, Tim Bradshaw, the head of enterprise and innovation at the Confederation of British Industry, said it was good that the government is recognising the value of advanced manufacturing.

He added: "We hope this package of measures will spur the development of the UK's hi-tech base.

"As well as being great news for the individual firms that stand to benefit from the investments announced today, there are some worthwhile measures to support companies operating in other high value manufacturing areas from aero engines to low-carbon technologies."

Financial Services Compensation Scheme extended

Tue, 28 Jul 2009 08:38:28 GMT

Businesses and banking consumers are to gain increased financial protections under an enhanced Financial Services Compensation Scheme (FSCS), it has been announced.

The Financial Services Authority (FSA) is introducing faster payout rules from December 31st 2010, in a bid to offer compensation within seven days should a provider default – potentially an important change for businesses.

In addition, greater clarity is being offered over the £50,000 protected deposit rule, with payouts being made on a gross basis.

Currently, any debts owed to the financial services provider are deductable from the £50,000 protected deposit, meaning the actual amount safeguarded in a business or consumer account may be much lower.

However, under new FSA rules, savings deposits will be ringfenced in order to treat them separately from debts owed.

FSA chief executive Hector Sants said it was vital that account holders feel confident that their money is well protected, in order to underpin confidence in the UK banking system.

He added: "The new rules announced today will help deliver that confidence, build on the successful role of the FSCS to date, and aim to further minimise the potential hardship faced by depositors if an institution defaults.

Maxine Taylor, a director at Nationwide, sad she welcomed the commitment to provide greater transparency over the FSCS.

'Universal definition needed' for universal 2Mbps broadband

Tue, 28 Jul 2009 08:36:28 GMT

A definition for universal 2Mbps broadband access is needed to allow businesses and consumers to plan for the future, it has been suggested.

David Campbell, managing director at local access network firm Openreach, said a lack of certainty over the specifics of the scheme, which is due for completion by 2012, could jeopardise a successful roll-out.

Speaking at the Westminster eForum keynote seminar: Broadband for All?, he claimed the service outlined in the government's digital economy action plan Digital Britain could differ hugely depending on how it is defined.

Mr Campbell said: "It's important to set expectations now around the Universal Service Commitment about what two megabits means and be clear about that."

He explained that only being able to access the internet at 2Mbps at off-peak times would make "a big difference" to the service customers receive.

Illustrating this point, he added: "[Will] everyone get two megabits at three o'clock in the morning when no one is using the network or the mobile masts or is it two megabits in the busy hour?"

Published last month, the Digital Britain report outlined the case for widespread investment in the UK's communications infrastructure to increase digital participation.

Businesses told to keep promoting themselves

Mon, 27 Jul 2009 13:44:27 GMT

Businesses must ensure they continue their dialogue with the public through advertising and marketing during the recession, it has been suggested.

According to the Advertising Association, firms cannot afford to make cutbacks on the promotion of their goods and services during the recession if they wish to drive revenue now and in the future.

Commenting after the Central Office of Information reported that government departments and public sector bodies increased their marketing and communications spend by £540 million – or 43 per cent - during 2008-9, Rae Burdon, chief operating officer at the Advertising Association, reiterated its importance.

He said: "In business, those that continue to support their brands or products in a recession will benefit in the period following the recession well ahead of their investment in 'normal' circumstances."

Mr Burdon suggested that while marketing strategies may differ from organisation to organisation, it is "vital" to keep communicating with the public at all times.

Despite many businesses cutting their ad spend throughout the recession, ZenithOptimedia's forecast for July suggests that the global advertising downturn has slowed somewhat.

The firm claimed that Internet advertising in particular has held up even better than predicted three months ago.

ONS records Q2 retail sales rise

Mon, 27 Jul 2009 13:42:27 GMT

Total sales volumes in quarter two of 2009 rose by 1.3 per cent on the same period last year, according to the Office for National Statistics (ONS).

Sales volumes for predominantly food stores increased by 0.7 per cent, while those for non-food, non-specialised stores rose by 4.6 per cent between April and June.

The quarter saw a rise of 0.7 per cent on the previous three months, indicating that consumer spending appears to be stabilising.

Further encouragement was given by the finding that total sales volumes increased by 1.2 per cent between May and June.

Commenting on the ONS results, Stephen Robertson, director general of the British Retail Consortium, said they confirmed earlier findings from his organisation.

He stated: "The official data confirm our findings that June's retail sales were boosted by sunshine, promotions and discounts.

"The heatwave helped food retailers. It also boosted clothing and footwear sales, which further benefited from early clearance sales coinciding with good weather. Outdoor goods, such as garden furniture, pools and picnicware, were also helped."

Mr Robertson suggested that while lower mortgage costs and energy prices are leaving a lot of people better off than a year ago, many are still favouring saving over spending.

Train to Gain must become sustainable to continue helping firms

Fri, 24 Jul 2009 13:12:24 GMT

The government's flagship professional development scheme, Train to Gain, is failing to deliver value for money, it has been claimed.

According to an official report from the National Audit Office (NAO), the £1.5 million initiative has suffered from the pursuit of unrealistic targets, inconsistencies in implementation and low take-up rates.

The Office claims demand for training, which is high within businesses and the education sector, must be better managed in future in order to make the programme sustainable.

Commenting on Train to Gain, Susan Anderson, director of education and skills at the Confederation of British Industry, said the scheme, while not perfect, had delivered benefits to businesses.

She noted: "The government has invested heavily in Train to Gain, and many employers have seen improvements in business performance - more motivated staff and better customer service - as a result.

"But the government must do more, especially at a time when funding is tight, to deliver greater bang for its buck. It must ensure its training and support are better tailored to what firms need."

Earlier this week, Gerwyn Davies, public policy adviser at the Chartered Institute of Personnel and Development, claimed workers must continue to seek training to boost their employability.

Conditions remain tough despite drop in redundancies

Fri, 24 Jul 2009 13:09:24 GMT

There are still further difficulties to come for businesses, despite a slight quarterly drop in insolvencies, according to a leading professional services firm.

Analysis from PricewaterhouseCoopers (PwC) indicates that nearly 5,000 companies became insolvent in the second quarter of 2009, down 11.3 per cent on the previous quarter, but up 43.2 per cent year-on-year.

The firm said the figures should not be taken as a sign that the recession has bottomed out, a stance Beccy Boden Wilks of the Business Debtline agrees with.

She commented that there is no sign of things getting easier "any time soon".

Ms Boden Wilks said: "Looking at what our call stats are, looking at the hard evidence, the demand [for debt help] is still increasing – it's not dying down at all."

She added that any previously-claimed 'green shoots' in the economy were not being felt at grassroots level, with calls to the Business Debtline reaching their highest-ever levels in the last month.

"At the moment, we can't predict how long the recession is going to last, we can't predict how long people are still going to be feeling the effects of the recession," she added.

According to PwC, the first six months of 2009 saw a total of 10,242 companies entering into insolvency.

BBA reports increase in mortgage volumes

Fri, 24 Jul 2009 13:07:24 GMT

The number of mortgages approved by major high street banks rose to a 15-month high during June, latest figures suggest.

According to the British Bankers' Association (BBA), 35,235 mortgages were approved for house purchases last month, up from 31,919 in May.

This represented a 65 per cent increase on the equivalent month in 2008, indicating that the banks are increasingly able to make finance available.

David Dooks, statistics director at the BBA, said numbers of new home loans approved by the high street banks are recovering from the very low level last November and so far this year.

He added: "After repayments and redemptions, the banks' net rise in mortgage lending of £18 billion in the first six months is in sharp contrast to lending by the rest of the market, which is still contracting.

"Borrowing by non-financial companies continues to be weak, either because funds raised on capital markets are replacing bank borrowing or because companies are seeking to withstand the recession by reducing their debt".

Earlier this month, the Council of Mortgage Lenders estimated that gross mortgage lending in June 2009 totalled £12.3 billion, up 17 per cent on May when £10.5 billion was lent.

Food retail market remains strong

Thu, 23 Jul 2009 11:49:23 GMT

Food retailing has proved resilient to the recession but big ticket purchases continue to suffer, it has been suggested.

According to the British Retail Consortium (BRC), good weather may have contributed to a pick-up in general retail over the last few months, but consumers are still reluctant to splash out on more costly items.

Richard Dodd, head of media at the British Retail Consortium, said the food market was strong in particular, simply because people still have to eat.

He added: "It is clear from our own figures that the retailers that have been facing the toughest times are the non-food retailers selling big ticket items like carpets, furniture and big electrical goods which are the sorts of things people will put off buying when they feel their finances are under pressure."

The latest TNS Worldpanel grocery market share figures, published for the 12 weeks ending 12th July 2009, showed year-on-year market growth of 5.9 per cent in the grocery sector.

A slight reduction in the headline growth rate was seen on the previous 12 weeks, but this was partly attributed to Easter phasing.

Morrisons again delivered the fastest growth this period, increasing sales by 9.5 per cent with market share rising 0.4 per cent points to 11.6 per cent.

Manufacturing contraction rate slows

Thu, 23 Jul 2009 11:48:23 GMT

A decline in the rate of manufacturing contraction has been seen, according to the Confederation of British Industry (CBI).

Some 43 per cent of firms surveyed by the CBI said output declined last month, compared to the 12 per cent that witnessed a rise, giving a balance of -31 per cent – somewhat more encouraging than the previous reading of -53 per cent.

However, the CBI says a return to growth could still be some way off, with at least another three months of negative expectations predicted.

The group adds that manufacturing firms have run down their stocks aggressively over the past quarter, while disappointing export demand was witnessed.

Ian McCafferty, CBI chief economic adviser, said the figures reinforced the view that the road out of recession will be "long and slow".

He added: "The further sharp decline in export orders is of particular concern as we are not seeing much of a boost from the relative weakness of sterling.

"There are also further indications that the inventory cycle may not be turning as quickly as many had hoped, with some manufacturers still having excess stocks of goods."

Last week, JATO Dynamics' latest monthly analysis indicated that the European car manufacturing market is showing signs of improvement.

Training important for employability

Wed, 22 Jul 2009 12:43:22 GMT

Participating in training and education schemes is an important step for individuals to take to make themselves more employable, it has been reported.

Gerwyn Davies, public policy adviser at the Chartered Institute of Personnel and Development (CIPD), said this was especially the case at present, with many people being forced to work part-time due to the lack of full-time jobs.

He was commenting after the Office for National Statistics found that the number of people in part-time employment was 7.53 million in the three months to May 2009, up 3,000 from the three months to February 2009.

Mr Davies said those working part-time should concentrate on qualifications as "the jobs outlook looks uncertain, not just for next year but beyond as hiring looks to remain quite muted".

He added: "The advice certainly is to use that extra day or couple of days that you've got to push the qualifications. Qualifications are still the main criterion for employers when they are selecting candidates."

Dr John McGurk, advisor for learning and talent development at the CIPD, recently claimed that workers must continue to receive training in order to raise their skill levels as the recession ensues.

Economist says swine flu unlikely to damage productivity

Wed, 22 Jul 2009 12:41:22 GMT

Swine flu is unlikely to have as severe an impact upon UK productivity as has been predicted, it has been claimed.

Commenting after the Ernst & Young ITEM Club summer forecast predicted gross domestic product could fall by as much as an additional three per cent this year due to the H1N1 virus, Defaqto economist Michael Baxter said this was likely to be an exaggeration.

He said that while staff absence was set to have an initial impact on business output, the fact that people tend to work harder when they return to the office should mitigate many of the losses.

However, where spending is concerned, Mr Baxter suggested that swine flu would have the impact effect of reducing expenditure "at a bad time".

"Clearly it will because if a huge wave of the UK population goes down with swine flu for a few days then they spend less," he stated.

"The counter to that, you could argue, is that by default that means they are saving more – they're paying off debt a bit quicker, so it's a bit of a swings and roundabouts situation."

According to the International Monetary Fund (IMF) growth in the United Kingdom is expected to gradually pick up through 2010, but the speed and strength of the recovery remain highly uncertain.

SMMT confident over car manufacturing future

Wed, 22 Jul 2009 12:40:22 GMT

The UK car manufacturing sector still has plenty to offer, according to the Society of Motor Manufacturers and Traders (SMMT).

John Procter, a spokesperson for the society, was commenting after Nissan announced it will be making Sunderland their UK base for electric car production.

He insists that there is still life in the sector, which can thrive again with a little government support.

Mr Procter said opportunities would be created by the new technologies being developed, although this did not mean that existing automotive businesses would be unable to prosper too.

He added: "We've got some good engine-producing facilities, in the UK we produce over three million engines for automotive use and somewhere in the region of 67 per cent of new car sales in the UK in 2008 had a major component like that which had been produced in the UK.

"We still have an awful lot to offer on existing technology platforms as well as creating new ones."

Mr Procter said the SMMT wanted to make sure is that the loans that have been offered to the car industry are now made accessible to safeguard its future.

BRC issues guidance for future of high street retail

Tue, 21 Jul 2009 15:40:21 GMT

High streets across the UK need to be planned and managed as new figures show around 15 per cent of retail spaces could be empty by the end of this year.

A new report by the British Retail Consortium (BRC) estimates that figure could be hit at the end of 2009, which would be over double the amount of stores which were vacant at the start of this year at seven per cent.

The amount of empty shops on British high streets currently stands at 12 per cent, which is three times more than during last autumn, according to the BRC.

As a result, the BRC has set out some recommendations it sees as key to solving the "long-term future of high street retailing".

It has called for public spaces to be well maintained, efforts given to reducing crime and for high streets to be given government backing - through no new property and business rate hikes - in order to help town centre businesses.

Stephen Robertson, BRC director-general, said high streets are "at the heart of local communities and economies".

He added: "They are a crucial part of our national retail mix but many of them are in trouble, facing difficulties that began well before the current recession.

"Some will flourish again as the economy recovers; others have to shape a different future as customers' needs change. But that cannot be left to chance."

The BRC recently announced that customers across the UK have halved their carrier bag usage in 2009, with a 48 per cent reduction seen in the first five months of the year.

CRM software market passes $9bn in 2008

Tue, 21 Jul 2009 15:39:21 GMT

Worldwide revenue for customer relationship management (CRM) software grew by 12.5 per cent during 2008, new figures have shown.

Research by Gartner found the global CRM software market totalled $9.15 billion (£5.56 billion), which was up from 2007 levels of $8.13 billion.

The firm claims that companies were increasingly investing in customer retention, analytics and on-demand solutions, which was driving the CRM software figures forward.

According to Gartner, Software as a Service represented almost 20 per cent of total CRM software revenue in 2008, while SAP was the market leader with a global share of 22.5 per cent.

Sharon Metz, research director at Gartner, said "actual market growth" was reflected by "higher contributions from emerging markets".

"Despite financial market volatility, the worldwide CRM market enjoyed its fifth consecutive year of double-digit growth as businesses continued to invest in solutions across all subsegments," she added.

James Fahey, founder and chief executive of the social networking community Independent IT Analyst, recently claimed that organisations are not obtaining enough "unbiased information" when it comes to screening CRM and sales force automation applications.

He added this failure could result in dissatisfaction with the CRM software chosen as a result.

Heatwave prompts high street spending in London

Mon, 20 Jul 2009 16:04:20 GMT

Retail sales across the city of London rose on the back of the heatwaves which hit the UK last month, new figures show.

Data from the London Retail Consortium found that like-for-like sales on the capital's high street increased by 4.7 per cent in June compared to the same month last year.

The national average for the UK was a 1.4 per cent rise year-on-year.

It is believed that hot temperatures during June played its part in the rise in sales, as people shrugged off their recession blues when the sun began to shine.

Visitors from overseas, spurred on by the weak pound, were also cited as a reason for the large hikes in sales figures for London's businesses.

Stephen Robertson, director-general of the British Retail Consortium, said London "outperformed the rest of the UK", adding that the whole country is still "nervous" about spending money on big ticket items due to the recession.

He added: "Sunshine and sales helped to boost London retail sales. Footfall in the capital was well up on a year ago as shoppers sought out summer clothes, sandals and outdoor goods."

The New West End Company predicts that ten million shoppers are predicted to have hit the West End's shops in the last month, with 40 retailers in the area launching their summer sales during the period.

Data security leading to communication failure in business

Mon, 20 Jul 2009 16:03:20 GMT

A new report has found that data security means different things to people across the business hierarchy.

The Business Case for Data Protection report from the Ponemon Institute found there was a disparity in the opinions of chief executive officers (CEOs) and C-level employees when it comes to data security.

Some 100 per cent of CEOs said data protection was a business-critical application, compared to only 65 per cent of C-level workers.

Responding to a data breach was deemed important or very important by 93 per cent of CEOs, however only 58 per cent of the other group agreed with this opinion.

Larry Ponemon, founder of the institute, said in an official blog post that what is evident is there is a "failure to communicate".

He added: "For a long time we've known that there's been something of a disconnect between the C-suite and the front lines of security and privacy.

Recent research from Tiscali found that 97 per cent of people in the UK would not want personal information about themselves freely available on the internet.

Despite this, people across the UK admitted to giving away huge amounts of personal data on social networking sites.

The internet provider has urged people to only share sensitive information with people they trust.