Memorandum from Dynex Semiconductor Ltd
(EM 27)
EXECUTIVE SUMMARY
1. This submission is prepared by a medium
sized manufacturing business, Dynex Semiconductor Ltd Lincoln,
UK and provides evidence of its experiences with the East Midlands
Development Agency over the past year.
2. It highlights the experiences with a Business
support programme, High Growth East Midlands (HGEM). It shows
that prior to engagement on the programme the business did not
have a very strong impression of emda, but that during
the programme the engagement with emda became strong and
successful. The success is ascribed to emda's use of a
sector knowledgeable account manager and their selection of a
professional coach. This contrasts with prior patchy and unfocussed
connections to emda via local agencies. HGEM led to other
useful business connections with both emda and other bodies.
The outcome was positive for the business.
3. It is recommended that the use of sector specific
account management be applied as a priority over agents that are
determined by geography. Also it is suggested that businesses
should be targeted with selected support packages by emda.
Further adoption of HGEM and similar support packages is encouraged
INTRODUCTION TO
DYNEX SEMICONDUCTOR
LTD
4. Dynex is a long established Lincoln,
UK based designer and manufacturer of semiconductor components
for power electronic systems. Originally part of GEC-Marconi,
the company was bought out by a Canadian businessman in January
2000 and became a public listed business on the Toronto venture
stock exchange. The business has grown substantially in recent
years from a period of contraction and retrenchment in the period
2000-05. The business employs 265 people and had a turnover of
around £18.5 million in 2008 up from £10.3 million in
2005, and exports around 80% of output.
5. Dynex joined the East Midlands High Growth
Programme (HGEM) in May 2008. This programme is the East Midlands
Development Agency's flagship business support programme supporting
businesses up to £20 million turnover and with demonstrated
growth potential
6. In October 2008 75% of the common shares
of Dynex's Canadian holding company, Dynex Power Inc., was acquired
by CSR Times Electric (China) "TEG": the leading rolling
stock electrical system provider and integrator for the railway
industry in China. TEG is engaged in developing, manufacturing
and selling railway power electronic equipment and other electrical
components including power semiconductor devices.
7. This submission is based on Dynex's experiences
during the period since May 2008 when it engaged with the HGEM
programme. It has been prepared by Dynex management.
HIGH GROWTH
EAST MIDLANDS
PROGRAMME
8. Prior to joining HGEM Dynex had experienced
only occasional engagement with emda both directly and
via Lincoln local agencies such as Business Link and Lincolnshire
Enterprise. In general the business was not knowledgeable about
local regional business support, and connections with the regional
agencies had been patchy and unfocussed. At that time we did not
have a strong impression of local business support, mostly delivered
by local Lincoln agents, nor have any clear established direct
connections with emda.
9. We were alerted to HGEM by a cold shot E-Mail
and we decided to apply to join, although we were initially unsure
if it was appropriate to Dynex. We are now aware that had we not
applied then we would have missed what became an important connection
with emda, and picking out the E-Mail from our very busy
inboxes was quite by luck. If there is any substantial criticism
of the programme it was that Dynex was not alerted to the programme
directly, for example by the Lincoln or Lincolnshire based agencies
that knew of Dynex's business and its interest in growth at that
time.
10. The initial contact with HGEM was through
PERA an East Midlands based technology-based consulting and training
group. Our first contact was very successful, leading to a strategic
review of the business and proactive assistance in applying for
and being engaged by HGEM. It was the strength of that first contact,
who had engineering business knowledge, that gave us our first
favourable impression and encouraged Dynex to proceed to commit
time and resource to the programme.
11. An account manager at PERA was assigned
to Dynex for the programme, The support offered by the account
manager was a key highlight of the programme. Throughout the account
manager also worked diligently with Dynex to achieve greater engagement
with emda. In our opinion this is a model that could be
followed in other business support areas.
12. The programme assigned a professional
coach. Great care was given by emda to the selection of
the coach and the identification of the key areas where support
would enhance Dynex's growth potential. The work with the coach
was the most important and successful part of the programme and
has led Dynex to devote more time to developing its staff and
getting more from its organisation.
13. Other activities within the HGEM programme
were less effective for Dynex. Training at Nottingham University
Business School, training at Pera Middle Aston and networking
events were useful and high quality, and would clearly be highly
beneficial to other businesses, but did not achieve the same strong
output at Dynex as that of the one to one coaching.
OTHER BENEFITS
14. Owing to the commitment by the account
manager and the HGEM management at emda other connections
resulted.
15. The East Midlands China Business Bureau were
engaged who have since assisted with Dynex's relationship with
CSR Times Electric.
16. Assistance and support with Chinese
visits to the region were provided by both emda, and through
their agencies, the City and the County Council. This proved invaluable
in building relationships with Dynex's new owners and investors
from China.
17. emda introduced the China Britain
Business Council, and they are now providing business training
to give staff a better understanding of how to work with our Chinese
Parent Company and new Chinese Customers
OUTCOMES
18. The HGEM programme has improved Dynex's
focus on strategic growth and helped to establish a growth and
innovation culture, it has encouraged management to develop its
staff more effectively to make better use of natural skills and
talents, it has better prepared Dynex to embrace the opportunity
brought by its link to China, and it has brought Dynex closer
to emda so that future support can be more effective.
RECOMMENDATIONS
19. The HGEM programme acted as a focal
point for Dynex to engage with emda. This one-stop-shop
or account manager approach has given greater clarity to the relationship
between Dynex and emda. Adoption of account management
across a broader range of programmes is recommended including
the use of a sector knowledgeable account manager.
20. Location of the contact can be anywhere within
the region as E-Mail and telephone communication deals with day
to day matters with only occasional need for face to face discussion.
Less emphasis should be placed on using geographically local agents
to engage on support programmes and greater emphasis placed on
quality and sector relevance.
21. Programme engagement to be more proactive
and target businesses. For example the HGEM programme could have
found Dynex and matched us to the programme: we were already known
to emda via its agents as an eligible business.
22. Continue to build and develop the HGEM
programme and apply its model to other support initiatives.
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