Learning from our experience - A journey with a lot of hard work - Its about changing backend processes more than putting up websites

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

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

Phase I Process Design 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 Phase > Web Integration 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 Phase Deployment IBM's e-Procurement Transformation Roadmap

IBM Results: Procurement BeforeNow Purchase order processing time30 Days1 Day Contract cycle time6-12 Months30 Days Average length of contracts40+ Pages6 Pages Rate of "maverick buying"30%Less than 2% Internal satisfaction with procurement 40%More than 85% Total savings: $9B Note: Procurement Costs Government20% Commercial4% IBM1%

Success Factors What really makes a difference?

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

Challenge: Successful Approach: 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 Real world issues:

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

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