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  • London - Thomas House, 84 Eccleston Square, London, SW1V 1PX

    Edinburgh - 23 Melville Street, Edinburgh, EH3 7PE

  • 0800 689 5056 / +44 (0)207 859 4745
  • info@arum.co.uk

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Target operating model for public sector .

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Business issue

A major public sector organisation required a supplier to manage the collection, administration and enforcement for their BPO operation. Through a re-tendering process, the organisation wished to achieve a step-change in the cost of providing the services; an uplift in revenue (from £3.7b in 2010/11) by improving licence fee collection rates through innovation and process improvement; enhance public acceptability; and ensure collection service continuity throughout transition.

Arum’s solutions

  • Partnered with Capgemini to offer a strategic alliance proposition delivering revenue growth, reputation enhancement, cost reduction and service continuity.
  • Created an integrated Target Operating Model (TOM) with intelligence at its heart, focusing on customer service, data & analytics, strategy, arrears management, DCA panel management, field sales/collections & enforcement.
  • Design of arrears management and field solutions including DataEye® performance dashboard, collections specific analytics and scoring, new civil litigation process and advanced agent training.
  • selection of new outsource partners on arrears management and field.

Initial client benefits

  • Designed a TOM delivering all requirements and drivers.
  • Cost reduction through consolidation of operations, technology drivers, customer insight and extending customer universe.
  • Forecast £35m savings benefit per annum accrued through sales & self-service, customer service, back office, arrears management and field & prosecution.
  • Further savings delivered through Arum’s influencing of partners, including below average margin and costs reduced by £9m over life of contract.
  • Detailed analysis identified a £230m annual revenue uplift after TOM implementation.

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