BT 2011 Annual Report Download - page 27

BUSINESS REVIEW
24
OUR LINES OF BUSINESS
Mobility
We provide a range of value-added services to help customers
exploit the benefits of mobile computing, from flexible working
solutions through to services to enable customers to improve the
efficiency of both their supply chains and workforces.
Operating review
Last year our focus was on improving the business through better
financial and operational execution and the implementation of a
strengthened controls environment. In 2011 we have reshaped and
refocused our business to serve our customers better and
established a significantly more competitive cost base.
We have continued to improve the efficiency of our operations, and
reduce costs, helping to deliver a 7% reduction in net operating
costs. We achieved this through:
•improving service levels to take out cost of failure
•working with our external suppliers to improve contract terms
•reviewing our network and changing our network topography
•rationalising our network assets and our operations
•improving the service we get from suppliers around the world.
We have made changes to our global delivery model to improve
contract execution. We improved our bid management processes
and created three global bid management centres to standardise
processes and share best practice. We have continued improving
the start-up of major contracts, including standardised and
accelerated start-up processes to improve contracts in the early
stage of delivery.
During 2011, as part of our commitment to global customers in key
industry sectors, we created four global strategic sector teams to sit
alongside our four regions: Banking & Financial Markets; Commerce
– comprising manufacturing, logistics and pharmaceuticals;
Consumer Packaged Goods; and Government & Health. Customers
in these sectors will benefit from a range of industry focused
products, solution design and infrastructure, as well as sector
specific customer management and service teams.
During the year we signed contracts with a total order value of
£7.3bn, up 10% over £6.6bn last year. The market environment
continues to be challenging with fewer very large deals, longer lead
times and pricing pressure all having an impact.
GLOBAL
BANKING &
FINANCIAL
MARKETS
GLOBAL
CONSUMER
PACKAGED
GOODS
UK
EMEA & LATIN AMERICA
UNITED STATES & CANADA
ASIA PACIFIC
GLOBAL COMMERCE
(MANUFACTURING,
LOGISTICS &
PHARMACEUTICALS)
GLOBAL
GOVERNMENT
& HEALTH
Notable contracts signed in the year include:
Customer Contract
Unilever A four-year extension to our
existing contract to supply
managed services in over 100
countries.
UBS A new five-year contract for the
provision of global voice and data
network services, including a
videoconferencing network and
audio conferencing services.
Network Rail A two-year extension of our
networked IT services contract.
Defence Fixed A three-year extension to our
Telecommunications DFTS agreement with the UK
Service (DFTS) Ministry of Defence.
Southwest One (working in Provision of a high-speed
partnership with Somerset network to 269 schools and
County Council, Taunton educational establishments
Deane Borough Council, in Somerset, UK.
Avon and Somerset Police
and IBM)
Ministerio de Defensa Provision of internet access,
de España, Spain security platform, and on-site
professional services to the Spanish
government.
DigitPA (Agency for the A seven-year contract to connect
Digital Public Administration), 340 offices in 125 countries,
Italy providing communication services
and managing a global network.
During the year we continued to execute on our larger customer
contracts, for example working with other London 2012 Olympic
and Paralympic Games technology partners, under the direction of
the London 2012 Organising Committee, BT is building the
communications infrastructure that will support the
communications needs of the event. The project is on track.
We have made good progress on our large NHS contracts. Our work
delivering clinical information systems at 80 NHS organisations
across London and the South of England is now enabling around
170,000 healthcare professionals to provide better, safer patient
care. N3, the secure national broadband network built and
managed by BT for the NHS, now serves over a million NHS users.
The Spine, the secure database and messaging service delivered by
BT, continues to support the increased use of key transformational
services, such as Choose and Book, the electronic appointment
booking system, which saw the number of appointments booked
electronically recently exceed 25m.
During the year the UK Government announced a review of all
public sector spending and BT entered into discussions with the
Government on new arrangements designed to deliver efficiencies.
In October 2010 BT announced the signature of a Memorandum of
Understanding with the UK Government under which all of BT’s
central Government contracts remained in place.
During 2011 we launched new products and service
enhancements, such as virtual data centre offerings, and a series of
enhancements to our OneVoice collaboration and communications
tools. New industry specific products and services were also
launched, such as the collaboration suite for financial markets
which includes a next generation range of trader voice and
collaboration services.
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