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Case Studies in G2B .. transforming business environment

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. e-Government & Productivity e-Procurement Issues in Public Procurement

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Case Studies in G2B .. transforming business environment

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  1. Case Studies in G2B.. transforming business environment J Satyanarayana As part of the Capacity Building Workshop under the Joint Economic Research Program (JERP)

  2. 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

  3. e-Government&Productivity

  4. What is e-Government ? • It is the • Transformation of government • to provide • Efficient • Convenient & • Transparent • Services • to • the Citizens & Businesses • through • Information & Communication Technologies

  5. Essence of e-Government Enhanced Value for Customer

  6. 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

  7. 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 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 Government Productivity Enhancements in Government & Business

  8. e-Procurement- efficiency & transparency

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. Components of a typical e-Procurement System E-Auctions Contract Management Indent Management E-Tendering Catalogue based Procurement

  15. e-Procurement Scenario Payment Systems Consultants e-Procurement System Buyers Suppliers Contractors Logistics Systems

  16. The Buy-side

  17. The Sell-side

  18. The ‘e-Procurement system’ side

  19. A case Study in e-Procurement

  20. GeBiZ, Singapore Public Procurement Service, Korea State of Andhra Pradesh Gatetrade, Denmark State of North Carolina, USA International Experiences

  21. 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

  22. 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

  23. 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

  24. Case Study on MCA21.. a project that transforms all G2B transactions under Company Law

  25. 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.

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. MCA21 Portal

  32. 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

  33. 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

  34. Thank You ceo@nisg.org

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