Case Studies in G2B .. transforming business environment

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Case Studies in G2B.. transforming business
environment

• J Satyanarayana

As part of the Capacity Building Workshop under
the Joint Economic Research Program (JERP)
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Overview of Presentation

• e-Government Productivity
• e-Procurement
• Issues in Public Procurement
• Basic Concepts of e-Procurement
• Case Study of e-Procurement in AP, India
• MCA21
• Objectives
• Business Model
• Current Status

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e-GovernmentProductivity
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What is e-Government ?

• It is the
• Transformation of government
• to provide
• Efficient
• Convenient
• Transparent
• Services
• to
• the Citizens Businesses
• through
• Information Communication Technologies

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Essence of e-Government
Enhanced Value for Customer
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G2B Life Cycle multiple interactions

• Approvals
• Permissions

• Returns
• Taxes
• Permits
• Compliance

Expand

• Approvals
• Compliance

Close
Operate
Explore Opportunities
Start-up

• Approvals
• Permissions
• Registrations

• Project Profiles
• Infrastructure
• State Support

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Productivity Enhancements in Government
Business
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e-Procurement- efficiency transparency
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Issues in Public Procurement

• Lack of a common Public Procurement Policy
• Public Procurement Law and regulations
• Dedicated Agency
• Transparency in Procurement Act
• Lack of model bidding documents and contract
  documents
• Complicated procedures for bidding, approvals and
  payments.
• Lack of skilled resources
• No centralized system of registration of
  suppliers
• Delays in making payments to suppliers

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Range of Procurement Services

• Indent Generation Approval
• Procurement Process
• Tenders, Auctions, Reverse Auctions, Rate
  Contract, Catalogue Buying
• Demand Aggregation
• Bid Evaluation
• Award Purchase Order
• Supply Management
• Quality Management
• Inventory Management
• Payments Management
• MIS EIS

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Categorization of Procurements

• By Category of Goods Services
• Goods
• Services
• Civil Contracts
• By Nature of Procurement
• Tenders
• Rate Contract Catalogue Buying
• Auctions, Reverse Auctions
• LCB, NCB, ICB
• By Size / Volume of procurement
• High Value, low volume
• Low value, High Volume
• By Portfolio of services needed
• Requisition, Bid Process
• Evaluation, Award, PO
• Supply, Quality check, Inventory Management
• Payment, Accounting, Audit
• MIS, EIS

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What is e-Procurement ?

• Its a collaborative procurement of goods,
  works and services using electronic methods in
  every stage for bringing in efficiency
  transparency

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Objectives of e-Procurement

• To act as the catalyst for procurement reform
• To enhance transparency, monitoring and control
  in procurement process
• To bring in economies of scale through
  aggregation of demand
• To reduce cost of doing business for both
  government and suppliers
• To establish level playing field and fair
  competitive platform for the suppliers

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Components of a typical e-Procurement System
E-Auctions
Contract Management
Indent Management
E-Tendering
Catalogue based Procurement
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e-Procurement Scenario
Payment Systems
Consultants
e-Procurement System
Suppliers
Buyers
Contractors
Logistics Systems
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The Buy-side
Issue Approach
Complexity of Procurement Procedures Procurement Reforms
Wide Range of items to be procured Goods Works Services Conduct an ABC Analysis Select A items initially
Organizational Resistance Change Management
Lack of IT Skills among employees Training
Lack of resources with Government Public-Private-Partnership
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The Sell-side
Issue Approach
Difficulties in changing over to new systems of tendering Supplier adoption
Low levels of technological skills Training Help Desk
Difficulties in access to site E-Procurement help centres
Resistance to change Change Management
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The e-Procurement system side
Issue Approach
Difficulties in establishing maintaining the system By sharing responsibility through PPP
Lack of Financial resources for maintenance transaction handling Designing appropriate business model Levy of service charges
Concerns of Confidentiality of bids Authenticity of bids Digital Signature Certificates
Varying requirements of Multiple Departments Process Reforms Standards-based system
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A case Study in e-Procurement
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International Experiences
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Case Study of e-Procurement in the State of
Andhra Pradesh, India

• Idea arose in 2000
• Workshop on e-Procurement held
• Involving key e-Procurement vendors
• Pilot designed with 4 government agencies
• Focus on e-tendering
• PPP Model designed
• Proposal sought from top 10 e-Procurement vendors
  in the world.
• Project entrusted to the bidder offering least
  fee for providing e-Procurement services
• Extensive training given to buyers suppliers
• Help Desk established for hand-holding

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GoAP e-Procurement Key Achievements

• Achieved transaction volume of about US 10 bil
  since launch in Jan 2003
• Currently 70 of Government procurement happens
  through the portal
• Reduction in average tender processing time from
  6 months to 1.8 months
• Increased participation in bids through online
  submission noticed to the extent 70-100 in many
  cases
• Significant cost savings
• average reduction to the extent of 20
• Over 600 Departmental users and over 1500
  suppliers provided hands-on training
• Winner of Golden Icon Award for Exemplary
  e-Governance Initiative

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Critical Success Factors of e-Procurement

• Effective Procurement Policy Reform
• Process re-engineering to transform government
  procurement
• Sound legislative and regulatory framework
• Well-designed Business Model
• Adequate participation and commitment from
  participants
• Effective Communication Strategy to disseminate
  benefits
• Strategies for adoption of buyers suppliers
• Flexible systems for meeting requirements of all
  agencies
• Effective Training and Change Management plan
• Developing effective skill-base in new
  procurement methodologies
• Open standards based, interoperable technology
  infrastructure

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Case Study on MCA21.. a project that
transforms all G2B transactions under Company Law
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Vision of MCA21
To provide all the Companies registered in
India, a convenient and secure access to
Government services, anytime, anywhere with
certainty and speed.
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Benefits to Stakeholders

• Businesses
• Registration of Companies filing of returns
• Citizens
• Access to records
• Grievance redressal
• Professionals (Chartered Company Secretaries)
• Efficient services to clients
• Financial Institutions
• Registration verification of charges of
  Companies
• Ministry of Company Affairs
• Ensuring better Compliance with Company Law
• Employees
• Efficiency in delivery of services

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Approach to Implementation

• Extensive consultations with Stakeholders
• Proof-of-Concept developed
• Public Private Partnership Model adopted
• transparent process for selection of Partner
• Goal is delivery of efficient services
• not the supply of Technology components
• Project is driven by Service Level Agreement
• with rewards penalties
• Sharing of Risks Rewards

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Architecture of MCA21
Virtual Front Office
STAKEHOLDERS
MCA HQrs
Disaster Recovery Centre
RD
Data Centre MCA Gateway
Portal

• Physical Front Offices
• Showcase(4)
• Non-Showcase (41)
• SEZs (8)
• Temporary(4)

ROC
Govt Secure Repository
PAO
MCA Ministry of Company Affairs RD Regional
Director ROC Registrar of Companies
PAO Pay Accounts Officers
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Highlights of Technology Model

• Based on Service Oriented Architecture
• XML Standards, Web Services
• Introduction of Digital Signatures
• compliant with IT Act 2000
• International Standards of Security
• compliant with BS 7799
• Disaster Recovery Centre
• Public Trust Confidence in a PPP model
• through Government Secure Repository
• Digitization of 60 million legacy records of
  Companies
• Workflow Automation in 27 Offices of MCA
• Interoperability through MCA Gateway Standards
• Comprehensive Training Change Management by
  Partner

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Business Model of MCA21

• Business Model driven by rigid SLA
• 18 parameters of Service
• 9 customer-facing
• 3 employee-facing
• 6 technology related
• Flexibility to bidders to optimize costs
• Open Standards based solution
• Open Competitive Bidding Process
• Payments to Partner for provision of Services,
  not for supply of technology components
• Bid Process is neutral to the number capacity
  of individual components deployed by Partner
• Compliance to SLA is the touchstone

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MCA21 Portal
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Current Status of MCA21

• Project Rolled out throughout India
• Data of over 600,000 companies available online
• Over 50 services provided online
• e-Filing mandated from 16th September 06
• Program Management Unit set up
• To monitor compliance with SLA
• To assess quality of Services

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Conclusion

• National Productivity can be enhanced through
  effective G2B initiatives
• e-Procurement enhances transparency efficiency
  in public procurement
• Electronic Interface with Companies can save
  time, effort and cost.
• PPP models are ideal for G2B projects

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• Thank You
• ceo_at_nisg.org