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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)
Overview of Presentation
1. e-Government & Productivity
2. e-Procurement
Issues in Public Procurement
Basic Concepts of e-Procurement
Case Study of e-Procurement in AP, India
3. MCA21
Objectives
Business Model
Current Status
e-Government&
Productivity
What is e-Government ?
It is the Transformation of government
to provide
EfficientConvenient &Transparent
Servicesto
the Citizens & Businesses
through Information & Communication Technologies
Essence of e-Government
Enhanced Value for Customer
G2B Life Cycle – multiple interactions
Close
Expand
Operate
Start-up Explore Opportunities
•Approvals•Permissions•Registrations
•Returns•Taxes•Permits•Compliance
•Approvals•Permissions
•Project Profiles•Infrastructure•State Support
•Approvals•Compliance
Productivity Enhancements in Government & Business
Business
• Improved business ecosystem
• Increased Velocity of Business• Ease of doing business with Government
• Transparency leads to higher investments• Time & Effort saved, goes to productive tasks
Government
• More effective Regulation improves the economy• Higher Growth Rate due to Productivity increase in
• Business, Manufacturing, Education• Increase in FDI due to better investment climate
e-Procurement- efficiency & transparency
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
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
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
What is e-Procurement ?
It’s a collaborative procurement of
goods, works and services using electronic methods in every stage for bringing in efficiency & transparency
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
Components of a typical e-Procurement System
Indent Management
E-Tendering
E-Auctions
Contract Management
Catalogue based
Procurement
e-Procurement Scenario
e-Procurement System
Suppliers
Consultants
Buyers
Logistics Systems
Contractors
PaymentSystems
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
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
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
A case Study in e-Procurement
International Experiences
GeBiZ, Singapore
Public Procurement Service, Korea
State of North Carolina, USAGatetrade, Denmark
State of Andhra Pradesh
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
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
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
Case Study on
MCA21.. a project that transforms all
G2B transactions under Company Law
Vision of MCA21
To provide all the Companies registered in India,
a convenient and secure access to Government services,
anytime, anywherewith certainty and speed.
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
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
Architecture of MCA21
Data Centre
MCA Gateway
MCA HQrs
RD
ROC
PAO
DisasterRecovery Centre
GovtSecure
Repository
Virtual Front Office
Virtual Front Office
Physical Front Offices
•Showcase(4)•Non-Showcase (41)•SEZs (8)•Temporary(4)
STAKEHOLDERS
Portal
MCA = Ministry of Company Affairs; RD = Regional Director ROC = Registrar of Companies ; PAO= Pay & Accounts Officers
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
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
MCA21 Portal
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
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
Thank You
ceo@nisg.org
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