Standing out from the crowd: How tech providers can better compete on social value

Society’s understanding of social value has advanced dramatically in a few years. The base was initially set low; showing a cursory understanding of the concept, together with well-intentioned tactical activity like volunteering or tree planting it was sometimes sufficient to get a foot in the door with local councils.

Several years of reforms to procurement legislation, notably the Social Value Act 2021, have changed that. As local authorities have become more knowledgeable and demanding about the potential for social value, so too, suppliers have needed to offer more sophisticated and informed tender responses.

All of this is a good thing. The benchmark level of understanding has increased, leading to greater likelihood of genuine impact for local communities. But in this more sophisticated procurement landscape, how can digital and technology companies set themselves apart?

Add sophistication to tenders by applying ‘layers of value’

At Social Value Business, we are increasingly working with clients to consider and articulate their commitments in terms of ‘layers of value’. We apply three lenses to bring structure, clarity and innovation to tender responses. Let’s look at some example ‘layers’ in practice.

This includes the social value activity already being delivered as standard by an organisation. It includes, for example, the creation of apprenticeships, development of your employees and investment in their health and wellbeing. It’s about how you create pathways into digital careers and reduce the skills gap. And it also includes your existing sustainability programmes – from sustainable data centre operations to responsibly sourced hardware. It includes your existing community partnerships, too – your chosen charities, volunteering schemes and educational outreach.

2. Value that’s contractually required

This second category relates to specific requirements that are mandated within a tender or framework notice. It’s about commitments made ‘over and above’ your standard activities. Typically, this might include additional apprenticeships, jobs created, work experience hours or a requirement to place a proportion of spend within the local catchment. It might require new partnerships to be forged specific to the contract, or carry targets for biodiversity net gain, for example.

3. Value delivered through special projects

We believe this third ‘lens’ is where organisations can truly demonstrate innovation. Often it’s the element of a tender notice that’s left open to interpretation… perhaps under the banner of ‘additional community benefits’. Don’t be fooled; although often vague, this represents a critical opportunity for tech providers to differentiate themselves. Consider Microsoft’s AI for Good programme, tackling global issues such as climate change. Or IBM’s SkillsBuild, offering free online learning resources to individuals. Smaller scale examples might include programmes to tackle digital exclusion at a community level. Or (within healthcare) the introduction of Blue Box health monitoring, empowering carers with the tech capability to check on a patient’s condition. This third layer requires a thorough understanding of the social need, the objectives of the tender and a creative approach to collaboration, to devise something truly impactful.

4. Leverage your core skills and operations

Digital and tech providers have unique, well-defined and sought-after skills, both at a company level and as a workforce of individuals. Technology dominates every facet of how we live, work and socialise, with 80%+ of customer interactions taking place digitally. So when thinking about social value across the layers, it makes sense to start with tech as a force for good, the application of your skills, resources and operations to some of society’s biggest challenges. Technology has a central role in delivering the UK’s Net Zero commitments, connecting communities, facilitating opportunity and in reducing isolation.

Conduct meaningful 360-degree engagement

Under the new Procurement Act, there is a greater focus on demonstrating engagement to show that social value initiatives are genuinely wanted and meaningful. Many organisations fall down on proper stakeholder engagement and research. When devising your social value approach, consult with employees, customers, service users, and community partners – including charities, local councils, community safety officers, faith groups and social enterprises. Take time to build a thorough understanding of issues and where you can contribute. Cross reference with resources such as regional place-making strategies and the Indices of Deprivation.

Adopt national standards

Accreditations such as the Social Value Quality Mark® provide independent assurance and verification of your social value. This isn’t just about validating metrics, but extends to your culture, behaviours, processes and delivery. The SVQM is recognised by an increasing number of local authorities. In a competitive environment, it tells commissioners that your organisation is committed to business that benefits society.

Measure what matters

Finally, technology providers can differentiate themselves by prioritising meaningful outcomes, backed up by legitimate measurement. Consider, for example, how many of your apprentices will move into sustainable employment. Or, in the context of a digital inclusion programme, what difference it’s making to people in terms of increased independence and wellbeing? MeasureUp is a free, accessible tool that supports measurement of quality of life. It’s a great resource for any organisation looking to calculate the true difference they make.

By taking a more thoughtful, structured approach to social value creation, backed up by robust engagement and measurement, tech companies can stand out from the crowd and better compete for business.

Central Government Programme activities

The techUK Central Government Programme provides a forum for government to engage with tech suppliers. We advocate for the govtech sector, evangelise tech as a solution to public sector challenges, facilitate market engagement, and help make the public sector an easier market to operate in. Visit the programme page here.