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
Efficient
Convenient &
Transparent
Services
to
the Citizens & Businesses
through
Information & Communication Technologies
Essence of e-Government
Enhanced Value for Customer
G2B Life Cycle
– multiple interactions
•Approvals
•Permissions
•Returns
•Taxes
•Permits
•Compliance
Expand
Close
Operate
Start-up
•Approvals
•Permissions
•Registrations
Explore
Opportunities
•Project Profiles
•Infrastructure
•State Support
•Approvals
•Compliance
Productivity Enhancements in
Government & Business
Government
Business
• 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
• 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
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
E-Auctions
Contract
Management
Indent
Management
E-Tendering
Catalogue
based
Procurement
e-Procurement Scenario
Payment
Systems
Buyers
Logistics
Systems
Consultants
e-Procurement
System
Suppliers
Contractors
The Buy-side
Issue
Approach
Complexity of Procurement
Procedures
Procurement Reforms
Wide Range of items to be
procured
•Conduct an ABC Analysis
-Goods
-Works
-Services
•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 Andhra Pradesh
Gatetrade, Denmark
State of North Carolina, USA
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, anywhere
with 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
Disaster
Recovery
Centre
Virtual
Front
Office
RD
Data Centre
MCA Gateway
Physical Front Offices
Govt
Secure
Repository
•Showcase(4)
•Non-Showcase (41)
•SEZs (8)
•Temporary(4)
ROC
PAO
Portal
MCA = Ministry of Company Affairs; RD = Regional Director
ROC = Registrar of Companies
; PAO= Pay & Accounts Officers
STAKEHOLDERS
MCA HQrs
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