eProcurement

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(No Transcript)
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Strategy for e-Procurement
June 7th 2004
Presentation by Reynolds Alex P.A.
Confidential. Not for free circulation
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Tour de Presentation

• eProcurement challenges
• Possible Models for Implementation in Govt
• Suggested approaches applicable in India
• Wipro experience learnings in roll-out of
  eProcurement
• Wipro Strengths Capabilities
• Customer testimonials

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Our clients Industry leaders
Diversified client profile
Driven in pursuit of excellence
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Some e-procurement Govt/ PSU clients (e-GP)

• OGC - Office of Govt Commerce - U.K
• Govt of Chattisgarh
• Govt of Karnataka
• Govt of Tamilnadu
• Indian railways
• State Bank of India its associates
• IOCL
• BPCL
• BHEL
• Unit Trust of India
• IDBI
• SIDBI

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eProcurement challenges

• Buyer Adoption
• Strong Leadership , Political support and
  top-down approach is critical
• Securing high level support to negotiate better
  prices through volume aggregation
• Commitment to the business model and approach
  chosen for roll-out
• Commitment in achieving process efficiencies and
  effecting changes in legal regulatory framework
  to streamline the process changes
• IT readiness -infrastructure user training

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eProcurement challenges

• Supplier Management
• Relationship must be beneficial to suppliers
• Providing support services for suppliers who
  are not yet prepared to go online
• Working with smaller businesses not enabled for
  e-Procurement
• Continuing to build and sustain relationships
  with suppliers

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eProcurement challenges

• Integration to Legacy Back-end systems
• Current applications are customized hence
  integration big challenge
• Many Govt depts are still running manual systems,
  implementation of pre post procurement systems
  and building integration is critical
• IT infrastructure readiness in terms of hardware,
  software, connectivity/ linkage is below par
• Government would intend to leverage existing
  investments and hence integration assumes
  importance

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eProcurement challenges

• Security data sharing
• Internet enabled procurement means transaction on
  public domain ,perception holds contradictory to
  the confidential nature of the bidding process
• Physical bidding process provides documentary
  proofs and the electronic system is assumed to be
  incapable of providing the same
• e-Procurement process is about data sharing,
  communication is competitive - security of such
  a system is of paramount importance
• Evolving regulatory frame works
• Choice of technology in the rapidly changing
  technology landscape

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Integrated Commerce Platform Easy Source
Possible Models of Implementation
From Customization
to Configuration
From Unified to
Modular
From technology Solution to
Business Solution
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Development Road Map
ds
Phase 1
Phase 2
Drawing Collaboration
Phase 3
Phase 4
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Priority of deployment
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Suggested approach models

• ASP or Hosted Model
• License Model
• ASP model graduating to transfer of technology

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Implementation risks mitigation strategy

• Poor system design
• Inadequate or inefficient purchasing process
• Poor Systems performance / Software failure
• Security Breaches
• User suppliers adoption
• Mis-representation of process by users
• Connectivity for SME

Maturity Level
Security is paramount
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Wipro learnings experience in roll-out of e-Pro
in the Govt

• Public bodies successful in implementing
  e-Procurement make and communicate clear policy
  decisions and directives to all concerned stake
  holders with measurable performance indicators
  and objectives
• Governments identify areas of process improvement
  and automation , with a view to process
  re-engineering
• Outline specific road map with time lines for
  implementing e- Procurement in terms of
  applications as well as government departments 
• Phase wise implementation approach
• Deployment e- Procurement through the hosted
  model and then move on to actual transfer of
  technology

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Wipro learnings experience in roll-out of e-Pro
in the Govt

• Applications /e- procurement processes that can
  offer immediate quick wins in terms of tangible
  savings are given a higher priority
• Applications that result in process improvement
  and efficiencies are deployed in subsequent
  phases
• A overall process automation vision is created
  and implemented in pilot departments
• Subsequently the entire set of e-Procurement
  applications is rolled out to other departments
• Security is given prime importance in these
  applications
• Applications process should preferably adhere
  to World Bank guidelines along with local
  statutory requirements

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The Integrated Business Process
Typical Integrated Business Model
From disparate business processes
To integrated business processes
From Multiple applications to single application
From islands on information to a centralized
business information
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Suggestions for e-GP system Implementation

• Suggestions based on experience with GOI, State
  Govt Implementations
• GOI Should make clear policies to implement
  e-Procurement across all the government
  departments and communicate to all concerned
  stake holders with measurable performance
  indicators and objectives
• GOI should detail specific road map with time
  lines for implementing e-Procurement in terms of
  applications as well as government departments
• GOI should conduct a business process study of
  procurement to arrive at feature list , best
  practices model for e-Procurement that can be
  rolled across all the government departments in
  the country. A suitable consultant with prior
  experience in e-Governance and e-Procurement in
  India may be appointed to do this as well as the
  above activities

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Suggestions for e-GP system Implementation

• GOI should engage in establishing a suitable
  vendor or empanel two to three vendors who can
  provide infrastructure, applications, domain
  knowledge, process re-engineering knowledge
  consulting
• All departments should be directed to use the
  applications with specific incentives for using
  e-Procurement
• Evaluation of computer literacy of the users in
  departments, the task of improving the computer
  literacy should be entrusted to a separate set of
  vendors
• Complete spend analysis of government spending
  and the correct e-Procurement tools to address
  various types of spends should be carried out

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Suggestions for e-GP system Implementation

• GOI to implement e-Procurement in a phase wise
  manner starting with Reverse Auctions addressing
  major spend in pilot departments, GOI realize
  quick wins and boost the E Procurement initiative
• The next phase should cover ETMS for the pilot
  departments the integrated reverse auction as
  well electronic tendering in the pilot phases
  should be carried out on an ASP basis
• The ETMS and Reverse Auction combination should
  be then rolled out to other departments and GOI
  should allow the process to stabilize over a
  period of 1 to 2 years
• The eventual transfer of technology should be
  planned subsequent to stabilization of ASP model

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Wipro e-GP Credentials 01markets
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Chhattisgarh Experience - Difficulties

• Process of modification of tendering rules and
  guidelines took too long because of frequent
  transfer of officials
• Lack of awareness of nitty-gritties of web based
  tendering process among senior IAS officers
• Availability of computers and internet
  connections in some government offices posed a
  big problem
• Absence of a secretary level nodal officer for
  e-governance / web based tendering created
  delays.

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Chhattisgarh Experience - Achievements

• Savings for contractors in document fees
• Instant access to all tender notices and tender
  documents for contractors
• PWD officials handling tender publication on the
  web and bid opening on the web on their own
• All tenders above 1 crore and 40 above 50 lakhs
  being now handled through tendering
• 90 Reduction in tender preparation time and 80
  in preparation of bid comparison charts
• NABARD can now monitor tender progress on
  monitoring projects funded by them

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Our Key Differentiators
"Our decision to have a long term partnership
with Wipro stems from the confidence we have in
them based on their excellent track record in
handling mission critical IT projects, depth of
technical expertise and world class quality
processes - Paul Grice, Chief Executive-
Scottish Parliament
Quality leadership
We are delighted to partner with a reliable and
known name like Wipro - 01markets as we venture
out to streamline our procurement processes. The
Almana group has always prided in its ability to
be at the cutting edge of technology when it
comes to operational issues and we are happy to
extend this to a key area like purchasing." Dr
Aisha Almana, Director - Almana Group of
Hospitals, Saudi Arabia
Proven reliability
01Markets is a committed and professional team
and offers several services in connection with
eProcurement. They have carried out nearly 20
e-Sourcing Projects for JK Organization in a most
professional and transparent manner in the
shortest possible time. We are satisfied by the
results achieved. We have planned more number of
e-Sourcing projects in the near future. - Mr S
K Dham, Senior GM - Materials, JK Organisation,
India
Commitment to go the extra mile
"The e-procurement software developed by Wipro-01
markets, was successfully implemented for
conducting Online web tendering online bidding.
The process was completely transparent, in line
with existing policies an extension of
e-governance initiatives taken up by us in line
with our state governments' policies. The
training imparted by Wipro to the participating
vendors ensured that the process was completed in
time. This has benefited the corporation in
reduction of overall cycle time and costs. - R.
Sreekumar, CMD, Karnataka State Police Housing
Corp. Ltd.
Assured cost-savings
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Partnering with Wipro Why should you?
From the first day in dealing with Wipro,
theres been nothing but quality character,
highest integrity, highest quality work. As a
Joint Venture, you wouldnt find a better
partner. As a supplier, you wouldnt find a
higher quality partner . Jack Welch - GE I
believe, that within two or three years, it will
be a commonsense for anybody wanting to source a
complex IT project or services, to ask
themselves, Have we talked to Wipro to ask
whether they can help us to get this done.
Bill Gates, Chairman, Microsoft Inc.
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THANK YOU
?
For more information contact Reynolds Alex Head
- eGovt Procurement (India, APAC, ME and
UK) reynolds.alex_at_wipro.com 9845276803 9811690122
QUESTIONS
Our Promise With utmost respect to human
values, we promise to serve our customer with
integrity, through a variety of innovative,
value for money products services, by applying
thought, day after day.
www.01markets.com www.wipro.com/government
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Security Breaches

• Data at Source
• Authentication thro Digital Certificate
• Application is PKI enabled
• Digital certificate policy maintained in the
  policy
• Data in Transit
• Data transmitted thro 128 bit encryption
• Data transmit thro Hypertext Transport Protocol
  Secure
• Application enabled for Secure Socket Layer (SSL)
• Data At rest
• Data Hashed(SHA1) Stored in Encrypted algorithm
• Encrypted transaction data
• Data signed with private key
• Server Access Restricted
• Fire Wall

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Security Breaches

• Application Level
• User application rights
• User role/ rule Based Data Access
• Windows authentication to resources
• Server Restricted Access
• File Authorization
• IP security Protocol
• Passwords Are Hashed

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User/ Supplier adoption

• Ease of use
• Resemblance of traditional formats
• Awareness training
• Interactive self help training material
• Incentive for usage
• Educate, advantages to suppliers
• Support
• System flexibility to change

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