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 Expand •Approvals
•Compliance •Compliance
Close
Operate

Start-up Explore
Opportunities

•Approvals •Project Profiles

•Permissions •Infrastructure
•Registrations •State Support
 Productivity Enhancements in
Government & Business

• More effective Regulation improves the economy

• Higher Growth Rate due to Productivity increase in
Government • Business, Manufacturing, Education
• Increase in FDI due to better investment climate

• Improved business ecosystem

• Increased Velocity of Business
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
E-Tendering
Management
Catalogue
based
Procurement
 e-Procurement Scenario

Payment
Systems Consultants

Buyers
e-Procurement Suppliers
System

Logistics Contractors
Systems
 The Buy-side

Issue Approach

Complexity of Procurement Procurement Reforms

Procedures

Wide Range of items to be •Conduct an ABC Analysis

procured
-Goods •Select ‘A’ items initially
-Works
-Services
Organizational Resistance Change Management

Lack of IT Skills among employees Training

Lack of resources with Public-Private-Partnership
Government
 The Sell-side

Issue Approach

Difficulties in changing over to Supplier adoption

new systems of tendering

Low levels of technological •Training

skills •Help Desk

Difficulties in access to site E-Procurement help centres

Resistance to change Change Management

The ‘e-Procurement system’ side
Issue
Difficulties in establishing &
maintaining the system
Lack of Financial resources for
maintenance & transaction
handling
Concerns of
• Confidentiality of bids
•Authenticity of bids
Varying requirements of
Multiple Departments
Approach
By sharing responsibility
through PPP
•Designing appropriate
business model
•Levy of service charges
Digital Signature Certificates
•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

MCA HQrs Disaster Virtual

STAKEHOLDERS
Recovery Front
Centre Office
RD
Data Centre Portal

MCA Gateway Physical Front Offices

ROC
•Showcase(4)
Govt •Non-Showcase (41)
Secure •SEZs (8)
PAO •Temporary(4)
Repository

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