Transcript eProcurement & security

Strategy for eProcurement
June 7th 2004
Presentation by:
Reynolds Alex P.A.
Confidential. Not for free circulation
Tour de Presentation
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eProcurement challenges
Possible Models for Implementation in Govt
Suggested approaches applicable in India
Wipro experience & learnings in roll-out of
eProcurement
▪ Wipro Strengths & Capabilities
▪ Customer testimonials
Our clients: Industry leaders
Diversified client profile
Driven in pursuit of excellence
Some e-procurement Govt/ PSU clients (e-GP)
• OGC - Office of Govt
Commerce - U.K
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Govt of Chattisgarh
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IOCL
Govt of Karnataka
Govt of Tamilnadu
Indian railways
State Bank of India & its
associates
BPCL
BHEL
Unit Trust of India
IDBI
SIDBI
eProcurement challenges
▪ Buyer Adoption
• Strong Leadership , Political support and top-down approach is
critical
• Securing high level support to negotiate better prices through volume
aggregation
• Commitment to the business model and approach chosen for roll-out
• Commitment in achieving process efficiencies and effecting changes
in legal & regulatory framework to streamline the process changes
• IT readiness -infrastructure & user training
eProcurement challenges
▪ Supplier Management
• Relationship must be beneficial to suppliers
• Providing support & services for suppliers who are not
yet prepared to go online
• Working with smaller businesses not enabled for eProcurement
• Continuing to build and sustain relationships with
suppliers
eProcurement challenges
▪ Integration to Legacy & Back-end systems
• Current applications are customized hence integration – big
challenge
• Many Govt depts are still running manual systems, implementation of
pre & post procurement systems and building integration is critical
• IT infrastructure readiness in terms of hardware, software,
connectivity/ linkage is below par
• Government would intend to leverage existing investments and
hence integration assumes importance
eProcurement challenges
▪ Security & data sharing
• Internet enabled procurement means transaction on public
domain ,perception holds contradictory to the confidential nature
of the bidding process
• Physical bidding process provides documentary proofs and the
electronic system is assumed to be incapable of providing the
same
• e-Procurement process is about data sharing, communication &
is competitive - security of such a system is of paramount
importance
• Evolving regulatory frame works
• Choice of technology in the rapidly changing technology
landscape
Possible Models of Implementation
Integrated Commerce Platform: Easy Source
From Customization
to Configuration
From Unified to
Modular
From technology
Solution to
Business Solution
Development Road Map
d
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Phase 1
Phase 2
Drawing
PhaseCollaboration
3
Phase 4
ETS
Priority of deployment
Application
Type of
Spend
Impact
Priority in
deployment
Electronic
Tendering
System
All
Process improvement
and efficiency
2
Dynamic
Pricing Engine
All
Savings (Reverse
Auctions)
1
Catalog
Low value
items
Compliance to contracts
4
Supply
Management
All
Process improvement
and efficiency
3
Suggested approach models
• ASP or Hosted Model
• License Model
• ASP model graduating to transfer of technology
Implementation risks & mitigation
strategy
• Poor system design
Maturity Level
• Poor Systems performance / Software failure
• Security Breaches
• User suppliers adoption
• Mis-representation of process by users
• Connectivity for SME
Security is paramount
• Inadequate & or inefficient purchasing process
Wipro learnings & experience in roll-out of e-Pro in
the Govt
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Public bodies successful in implementing e-Procurement make
and communicate clear policy decisions and directives to all
concerned stake holders with measurable performance indicators
and objectives
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Governments identify areas of process improvement and
automation , with a view to process re-engineering
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Outline specific road map with time lines for implementing eProcurement in terms of applications as well as government
departments
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Phase wise implementation approach
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Deployment e- Procurement through the hosted model and
then move on to actual transfer of technology
Wipro learnings & experience in roll-out of e-Pro in
the Govt
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Applications /e- procurement processes that can offer
immediate quick wins in terms of tangible savings are given a
higher priority
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Applications that result in process improvement and
efficiencies are deployed in subsequent phases
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A overall process automation vision is created and
implemented in pilot departments
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Subsequently the entire set of e-Procurement applications is
rolled out to other departments
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Security is given prime importance in these applications
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Applications & process should preferably adhere to World Bank
guidelines along with local statutory requirements
Typical Integrated Business Model
The Integrated Business Process
From disparate business processes
To integrated business processes
From Multiple applications to
single application
From islands on information to a
centralized business information
Suggestions for e-GP system Implementation
▪ Suggestions based on experience with GOI, State Govt
Implementations
• GOI Should make clear policies to implement e-Procurement
across all the government departments and communicate to all
concerned stake holders with measurable performance
indicators and objectives
• GOI should detail specific road map with time lines for
implementing e-Procurement in terms of applications as well as
government departments
• GOI should conduct a business process study of procurement to
arrive at feature list , best practices model for e-Procurement
that can be rolled across all the government departments in the
country. A suitable consultant with prior experience in eGovernance and e-Procurement in India may be appointed to do
this as well as the above activities
Suggestions for e-GP system Implementation
• GOI should engage in establishing a suitable vendor or empanel
two to three vendors who can provide infrastructure,
applications, domain knowledge, process re-engineering
knowledge & consulting
• All departments should be directed to use the applications with
specific incentives for using e-Procurement
• Evaluation of computer literacy of the users in departments, the
task of improving the computer literacy should be entrusted to a
separate set of vendors
• Complete spend analysis of government spending and the
correct e-Procurement tools to address various types of spends
should be carried out
Suggestions for e-GP system Implementation
• GOI to implement e-Procurement in a phase wise manner
starting with Reverse Auctions addressing major spend in pilot
departments, GOI realize quick wins and boost the E
Procurement initiative
• The next phase should cover ETMS for the pilot departments the
integrated reverse auction as well electronic tendering in the pilot
phases should be carried out on an ASP basis
• The ETMS and Reverse Auction combination should be then
rolled out to other departments and GOI should allow the
process to stabilize over a period of 1 to 2 years
• The eventual transfer of technology should be planned
subsequent to stabilization of ASP model
Wipro e-GP Credentials: 01markets
Leader
 Over 150 e-Procurement clients in India, Asia-pacific, Middle East & the U.K.
 More than 215 Categories (products and services) e-sourced:
 Over 700 e-Procurement projects till date (Almost 1 client goes e-live per day)
 500 man years of procurement - Process & Domain Knowledge
People
 CPM (ISM) & CPIM (APICS, USA) Certified Procurement professionals
 PCMM L5 practices for HR & people management; Dec 2001, World’s First
Process
Portfolio
Presence
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ISO 9001certified; Defined, documented & time-tested procedures
Critical Business processes’ Quality controlled using Six-Sigma
BS 7799 (British Standard for Information Security Mgmt System - UK-AS)
World’s First IT company to be CMM L5 & CMMi certified; Always cutting-edge technology
Integrated Commerce Platform (ICP):complete suite of e-Procurement solutions (COTS);
Procurement domain Consulting and e-procurement Best practices
Support in India and the world; World class infrastructure and local presence
Flexible and tailored Buyer - supplier Training services for effective usage & deployment
Integrity for fair, transparent and ethical e-procurement practices
Chhattisgarh Experience - Difficulties
▪ Process of modification of tendering rules and
guidelines took too long because of frequent
transfer of officials
▪ Lack of awareness of nitty-gritties of web based
tendering process among senior IAS officers
▪ Availability of computers and internet
connections in some government offices posed
a big problem
▪ Absence of a secretary level nodal officer for egovernance / web based tendering created
delays.
Chhattisgarh Experience - Achievements
▪ Savings for contractors in document fees
▪ Instant access to all tender notices and tender
documents for contractors
▪ PWD officials handling tender publication on the web
and bid opening on the web on their own
▪ All tenders above 1 crore and 40 % above 50 lakhs
being now handled through tendering
▪ 90 % Reduction in tender preparation time and 80 % in
preparation of bid comparison charts
▪ NABARD can now monitor tender progress on
monitoring projects funded by them
Our Key Differentiators
Quality leadership
"Our decision to have a long term partnership with Wipro stems from the confidence we
have in them based on their excellent track record in handling mission critical IT projects,
depth of technical expertise and world class quality processes“
- Paul Grice, Chief Executive- Scottish Parliament
Proven reliability
“We are delighted to partner with a reliable and known name like Wipro - 01markets as
we venture out to streamline our procurement processes. The Almana group has
always prided in its ability to be at the cutting edge of technology when it comes to
operational issues and we are happy to extend this to a key area like purchasing."
Dr Aisha Almana, Director - Almana Group of Hospitals, Saudi Arabia
Commitment to go
the extra mile
01Markets is a committed and professional team and offers several services in
connection with eProcurement. They have carried out nearly 20 e-Sourcing Projects
for JK Organization in a most professional and transparent manner in the shortest
possible time. We are satisfied by the results achieved. We have planned more
number of e-Sourcing projects in the near future.”
- Mr S K Dham, Senior GM - Materials, JK Organisation, India
Assured cost-savings
"The e-procurement software developed by Wipro-01 markets, was successfully
implemented for conducting Online web tendering & online bidding. The process was
completely transparent, in line with existing policies & an extension of e-governance
initiatives taken up by us in line with our state governments' policies. The training
imparted by Wipro to the participating vendors ensured that the process was completed
in time. This has benefited the corporation in reduction of overall cycle time and costs.”
- R. Sreekumar, CMD, Karnataka State Police Housing Corp. Ltd.
Partnering with Wipro: Why should you?
“From the first day in dealing with Wipro, there’s been
nothing but quality character, highest integrity, highest
quality work. As a Joint Venture, you wouldn’t find a better
partner. As a supplier, you wouldn’t find a higher quality
partner .”
Jack Welch - GE
“I believe, that within two or three years, it will be a
commonsense for anybody wanting to source a complex IT
project or services, to ask themselves, “Have we talked to
Wipro to ask whether they can help us to get this done.”
Bill Gates, Chairman, Microsoft Inc.
THANK YOU
For more information contact:
Reynolds Alex
Head - eGovt Procurement
(India, APAC, ME and UK)
QUESTIONS
[email protected]
9845276803; 9811690122
Our Promise
With utmost respect to human values,
we promise to serve our customer with
integrity,
www.01markets.com;
www.wipro.com/government
through a variety of innovative,
value for money products & services, by
applying thought, day after day.
Security Breaches
▪ Data at Source
• Authentication thro’ Digital Certificate
• Application is PKI enabled
• Digital certificate policy maintained in the policy
▪ Data in Transit
• Data transmitted thro’ 128 bit encryption
• Data transmit thro’ Hypertext Transport Protocol Secure
• Application enabled for Secure Socket Layer (SSL)
▪ Data At rest
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Data Hashed(SHA1) Stored in Encrypted algorithm
Encrypted transaction data
Data signed with private key
Server Access Restricted
Fire Wall
Security Breaches
▪ Application Level
• User application rights
• User role/ rule Based Data Access
• Windows authentication to resources
• Server Restricted Access
• File Authorization
• IP security Protocol
• Passwords Are Hashed
Back
User/ Supplier adoption
• Ease of use
• Resemblance of traditional formats
• Awareness & training
• Interactive self help training material
• Incentive for usage
• Educate, advantages to suppliers
• Support
• System flexibility to change
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