1. Business Modelling for Strategic Planning PWGSC Procurement Renewal Virginie Ethier Lynn Ménard Mike Lachapelle

2. 2 Creating and using business models to change the business Linking the business model to the Branch strategic structure

3. Background

4. 17 th Annual Report to The Prime Minister on the Public Service of Canada: by the Clerk of the Privy Council: March 2010 Public service renewal must extend beyond the workforce to address the nature of the public service workplace…doing business better and more efficiently based on innovative approaches, best practices and new business models. In our view, the circumstances are right for the Public Service to reassess and transform its models for delivering on the business of government. Fourth Report to the Prime Minister: Prime Minister’s Advisory Committee on the Public Service: February 2010 Is understanding business models important

5. Why did we build a new business model for procurement  mandated to deliver a renewed vision for procurement across the Government of Canada The Minister & DM of PWGSC  drive the changes needed to accomplish the vision and strategy for the renewal of procurement across the GC Acquisitions Branch & Procurement Renewal Office Business Model Project  build a comprehensible model of the business operations of Acquisitions Branch and a new business model that reflects the renewed business strategy

6. What did we accomplish  A target business model with a 5-7 year window for implementing built on:  A procurement classification structure based on complexity, integrated with risk;  A services structure for procurement services and specialized services delivered by the Branch and the Regions;  A proposed Program Activity Architecture for the Branch aligned to the current business model and future model;  A portfolio of renewal projects within in a clear strategy to deliver the innovations

7. Business Model

8. How did we do it Three key phases Understand Design Implement

9. Building a new business model Understand Case Studies let us: test framework in context examine facets in detail build overall picture Research gave us: broad view of the business variations in business lines challenges and issues

10. Business Strategy Business Organization Information Technology Business Model Business Design Vision Mission Principles Values Goals People Structure Policies Processes Information Software Hardware Networks Data Rationale

11. BUSINESS MODEL CANVAS

12. BUSINESS MODEL CASE STUDIES Small & Medium Enterprises Seized Property Management Crown Assets Distribution

13. Building a new business model Design Built the as-is model: re-iteratively adjust language and views standardize key concepts Identified innovations: analyse the as-is model consider the challenges co-create many ideas

14. ACQUISITIONS AS-IS MODEL

15. bring people together to talk about: the clients…the challenges…the as-is… …and to generated ideas on how to create innovation in service delivery to improve the business BUSINESS DESIGN EXPERIENCE

16. Building a new business model Built prototypes: collected ideas into prototypes tested the prototypes with operations gave feedback to decision- makers Created to-be model: selected innovations most likely to succeed identified challenges met and benefits expected Design

17. Easier for Businesses Prototype model 5  Create a Advisory Council of Business for the ADM  Provide advisory and analytical services to all vendors  Expand regional structures to engage all vendors  Establish a single site vendor registration for the government of Canada  Enable electronic bidding by resolving outstanding legal and policy issues  Adopt more common commodity classification structure BUSINESS MODEL PROTOTYPE

18. Prototype model 5 Departments & Agencies PWGSC Easier for Businesses Create Advisory Council of Business All Suppliers Advisory & Analytical Services Provide Regional Delivery Structure Expand Single Registration For GC Establish E-Bidding Enable Adopt New Commodity Classification BUSINESS MODEL PROTOTYPE

19. Departments & Agencies PWGSC Create Advisory Council of Business All Suppliers Advisory & Analytical Services Provide Regional Delivery Structure Expand Single Registration For GC Establish E-Bidding Enable Adopt New Commodity Classification Prototype model 5 Easier for Businesses BUSINESS MODEL PROTOTYPE

20. ACQUISITIONS AS-IS MODEL

21. AS-IS MODEL CHALLENGES

22. ACQUISITIONS INNOVATIONS

23. INNOVATION BENEFITS

24. ACQUISITIONS TO-BE MODEL

25. Building a new business model Strategy: build strategy map identify priorities Projects: manage a portfolio of projects to achieve new business model integrate ongoing projects with planned initiatives Implement

26. Innovation Strategy Map

27. Strategic Integration

28. Business Model to Strategic Planning Program Activity Architecture Strategic Plan Business Plan Project PortfolioStrategy map

29. Service LinesService Bundle Services Value to Client Standard Complex Routine Support Procurement Planning Procurement Consulting Business Intelligence Procurement Contracting Procurement Support Knowledge Intensive Business Services Delivered good or service Analysis Instruments Guidance Enterprise Policy Advisory Asset Disposal Asset Trustee Organization Certification Professional Certification Product & Service Certification Specialized Asset Standards Revenues Managed Asset Standards Certification Commodity Management Acquisitions Service Structure

30. AB – Proposed PAA – Services View 2011-2012 Acquisitions Branch PAA Structure Draft: for presentation purposes only

31. 1.1.2. Procurement Support 1.1.2.1. Routine Procurement Support 1.1.2.2. Commodity Management 1.1.2.1.1. Routine Contract Service 1.1.2.1.2. Freight Services 1.1.2.1.3. Travel Booking 1.1.2.2.1. Commodity Planning 1.1.2.2.2. Procurement Instruments 1.1.2.2.3. Commodity- Based Directories 1.1.2.2.4. Supplier Registration AB – Proposed PAA – Services View 2011-2012 Acquisitions Branch PAA Structure Draft: for presentation purposes only

32. Seized Property Management Directorate 1.1.2. Procurement Support 1.1.4. Assets Management 1.1.2.1. Routine Procurement Support 1.1.3.1. Advisory Services 1.1.3. Knowledge Intensive Business Services 1.1.1. Contracting 1.1.1.1. Standard Contracting 1.1.4.1. Assets Seizure 1.1.4.2. Assets Disposal 1.1.3.1. Property Seizure Advisory Services 1.1.4.1.1. Seizure Coordination 1.1.4.1.2. Asset Trustee 1.1.4.1.3. Seizure Standards & Practices 1.1.4.2.1. Seized Property Disposal AB – Proposed PAA – Organization View 2011-2012 Acquisitions Branch PAA Structure Draft: for presentation purposes only

33. Questions

34. Business Modelling for Strategic Planning Thank You! For more information on: Acquisitions Branch Strategic Planning virginie.ethier@tpsgc-pwgsc.gc.ca lynn.menard@tpsgc-pwgsc.gc.ca Business modelling mike.lachapelle@tbs-sct.gc.ca