Case Study: Business Centres New Revenues
This Managed Office provider with several sites in prime locations was looking for ways to optimise capacity and to create new income streams. Traditional revenues from 'phone calls and internet access were falling, so increased supplementary revenue was key to their growth and sustainability.
Each Business Centre functioned as a stand alone. Switchboard operators were employed in each building and call answering times could be very long during peak periods. Due to lack of a telecom infrastructure and a network, they were unable to share resources between the centres. This lead to extra manning and increased staff costs overall.
In addition, some licensees had taken on more staff but couldn’t always justify the expense of renting more workstations, immediately.
We sat down with the sales and marketing team to understand licensee' issues. Very quickly, it became apparent there was an opportunity to "bolt on" value added IT and telecom services.
We produced a Convergence paper they signed up to. We installed an IP network with 45M internet pipes from the Internet serving all eight business centres. When an operator was busy or not responding, the calls were automatically switched to another location where the operator was free. This provided cover during peak periods, and also helped manage leave and lunch absences.
Licensee staff could work from home and other remote locations using the remote facility of IP. This instantly provided new revenue streams for the Business Centre and benefited the licencees with access to the full range of office technologies for their home workers.
We also recommended hot desking as way of increasing revenue. They introduced it charging £7.50 per hr. making use of vacant office space. Any licencee staff could visit the hotdesk area and log on …just as if they were in their own office.
We are now developing a revenue share model with Business Centres, packaging a menu of services that can be rented to licensees. This package includes IT, support, mobile contracts, 0800 numbers, home ADSL etc. We work on a 50:50 profit share. And Simplisity, simply takes care of the management of all of these services!