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University of Nebraska
Technology Procurement
Objectives for Today
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University of Nebraska Overview
IT Procurement – Past
IT Procurement – Present
Transition
Strategic Sourcing of Technology at UNL
Results
University of Nebraska System
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University of Nebraska – Lincoln
University of Nebraska Medical Center
University of Nebraska - Omaha
University of Nebraska – Kearney
Technology Procurement History - UNL
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Tactical
Decentralized Across Campus
Individual Departments Made Purchases
Some Coordination Through Information Services
IS Made Major Software Purchases, e.g. Microsoft
Little Collaboration with Procurement Services
Current Approach
• Strategic Sourcing Plan
• Centralized in Procurement Services
• Dedicated IT Procurement Team in Procurement
Services
• Hardware Specialists
• Software Specialists
• Software License Compliance
• Software Deployment
Transition
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Business Case
Leadership Support
New Chief Information Officer
Strategic Sourcing Success in Other Areas
Shift in Organizational Culture
E-Procurement in Place
Funding Sources
New Team Members with New Skill Sets
From Tactical to Strategic
• SWOT Analysis
Strengths
1. Significant buying power
2. Education contracts exist
3. Support from executive management and IT
4. E-procurement and electronic bid process
5. Policies and procedures in place
From Tactical to Strategic
• SWOT
Weaknesses
1. IT procurement decentralized for years
2. Buyers and suppliers do not have central
point of contact
3. Technology not used to full potential
4. Individual purchases
5. SRM did not exist
From Tactical to Strategic
• SWOT
Opportunities
1. Demand consolidation
2. Supplier consolidation
3. E-procurement catalogs to drive spend
4. Contracts nearing expiration
5. Suppliers eager to participate
6. Collaboration with Big Ten Universities
From Tactical to Strategic
• SWOT
Threats
1. Resistance to change
2. Software compliance
Audits and Fines
3. Lack of supplier support in key areas
Strategic Plan
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Spend Analysis
Supplier Optimization Targets
IT Sourcing Teams
Standardization
Supplier Selection
Contract Negotiation or Renegotiation
Order and Payment Process
SRM – Supplier Relationship Management
Software Procurement
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Bring Under Procurement Services
Policies and Procedures
Meet with Campus, College, and Department IT Staff
Desktop Management Software (Asset Management)
Microsoft SCCM (System Center Configuration Management)
Determine Inventory
Determine Compliance
Gather Software Agreements
Negotiate or Renegotiate Agreements
Software Purchase and Deployment
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Build Software Catalog in eSHOP
Include the Most Commonly Used Software
Currently 161 Titles
Purchase in eSHOP Triggers Deployment
Deployed by Procurement Software Distribution &
Asset Manager
• Track Inventory and Compliance
• Markup on Catalog Items
Results
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Single Point of Contact
Standardized Hardware
Contracts that Favor University
Majority of IT Purchases through Procurement
Services
Supplier Consolidation
Consistent Spend Analysis
Department Business Reviews
Software Compliance
Adopted System-wide at University of Nebraska
Results
• $3.2 million of Savings in 1st year
due to
Strategic IT Sourcing by Procurement Services
Questions
• Gary Kraft, Director of Procurement Services
University of Nebraska – Lincoln
[email protected]
• Bradley Logan, Senior Technology Sourcing Manager
University of Nebraska – Lincoln
bradley [email protected]
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Gary Kraft - A Strategic Approach to Technology Procurement