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
Start-up
Explore
Opportunities
Approvals
Permissions
Registrations
Project Profiles
Infrastructure
State Support

7. Productivity Enhancements in Government & 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
Business
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

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. typical e-Procurement System
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 Issue Approach Complexity of Procurement Procedures
Procurement Reforms
Wide Range of items to be procured
Goods
Works
Services
Conduct an ABC Analysis
Select ‘A’ items initially
Organizational Resistance
Change Management
Lack of IT Skills among employees
Training
Lack of resources with Government
Public-Private-Partnership

17. The Sell-side Issue Approach
Difficulties in changing over to new systems of tendering
Supplier adoption
Low levels of technological skills
Training
Help Desk
Difficulties in access to site
E-Procurement help centres
Resistance to change
Change Management

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

19. A case Study in e-Procurement

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

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 % 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

24. 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

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

26. 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.

27. 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

28. 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

29. Architecture of MCA21 STAKEHOLDERS Virtual MCA HQrs Disaster 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

30. 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

31. 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

32. MCA21 Portal

33. 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

34. 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

35. Thank You