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Learning from our experience - A journey with a lot of hard work

This title and description highlights the journey of IBM's e-Procurement Transformation, emphasizing the importance of changing backend processes and integrating supply chain and procurement.

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Learning from our experience - A journey with a lot of hard work

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  1. Learning from our experience - A journey with a lot of hard work - It’s about changing backend processes more than putting up websites

  2. Integrated Supply Chain Procurement Production Fulfillment Transforming IBM Business Processes Integrated Product Development ibm.com Wave 3 e-procurement e-care e-commerce Wave 2 Suppliers Customers Customer Relationship Management Wave 1 Finance Human Resources Employees

  3. Running the Infrastructure Before Now • 25 data centers • One CIO • One integrated, global network • Four standard configurations • 155 data centers • 100+ local "CIOs" • 31 separate, private networks • Hundreds of client configurations

  4. IBM's e-Procurement Transformation Roadmap Phase I 94-95 Process Design Phase 2 96-97 Deployment Phase 3 98 -> Web Integration Centralized Organization Commodity Council Structure Globalization of Teams Skills Enhancement Common Management System Supplier Feedback/Survey Cost Savings Metric Procurement Spend Analysis e-Procurement Enablement Supplier Integration/Collaboration Absolute Competitiveness/Total Cost Management Process/Transactions /Spend Supplier Coverage Business Model Alignment Joint Procurement/Client Scorecard Process Reengineering Transaction Automation Linkage to Other Reengineering Initiatives Supplier Involvement Common Systems Deployed Worldwide Change Management Competitiveness as Measured Against Industry Client Feedback/Survey Development/Client Alignment

  5. Before Now IBM Results: Procurement Purchase order processing time 30 Days 1 Day Contract cycle time 6-12 Months 30 Days Average length of contracts 40+ Pages 6 Pages Rate of "maverick buying" 30% Less than 2% Internal satisfaction with procurement 40% More than 85% Note: Procurement Costs Government 20% Commercial 4% IBM 1% Total savings: $9B

  6. Success Factors What really makes a difference?

  7. Facilitating...enabling participants e-Communities e-Democracy e-Government (internal) Wave 4 Gov, Educ, and business collaboration Knowledge Provider Citizen/Gov't Collaboration Online Voting Reengineered Processes Wave 3 Workforce Development Transformation Potential Legislative Collaboration Online transactions Wave 2 Robust Portal Dept/agency Transactions Legislative Info Online Wave 1 Community Info Online

  8. Real world issues: Successful Approach: Challenge: Funding - Central fund to supplement implementations - Retaining a portion of the savings in agencies Change Management - Senior Management leadership - Workforce development show the way to a new role Policy & Standards - Organization wide policy decisions: privacy, security, taxation -Centralized IT Standards -open architecture, network, IT security Customer Focus - Functions, applications and information organized by targeted constituencies - Measure channel usage -Track customer satisfaction Marketing to the public - Have an end to end marketing plan - Advertising and incentives drive up usage - Mandate use when feasible Digital Divide - Create a sustaining economic engine

  9. Keys for Planning for Success • Strategy • Define a Government Roadmap • Use Consultation to set Priorities • Architecture • Take Control of Architecture • Build Inventory of Information System Assets • Reduce # of databases • Create Key e-Government Infrastructure • Single point of access for sign-on & changing levels of access • Privacy Standards • Train Employees

  10. Where do we go from here? • Government's are making progress however much remains to be done • Next Steps • Leverage economic impact of G2B • Drive cross agency integration and transformation • Implement applications for workforce development (G2E) • Streamline overall government processes (G2G)

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