Value that it can deliver to public procurement pp

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May 27th, 2014 IST Lisbon

Vaue that Information Technology (IT)

can deliver to public procurement

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AGENDA Value that IT can deliver to public procurement

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Agenda

• Main messages.

• Context: Digital Economy.

• Concept of value

• Potential uses and information technology value in public procurement

• Stages and problems to get the IT value in public procurement

• The pyramide of transformation

• Final thoughts

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MAIN MESSAGES Value that IT can deliver to public procurement

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Main Messages

• Digital economy requires information technology

• Public procurement is a very important element of the modern economy

• Technology don`t introduce value in a automatic way, people are always needed

• Public procurement is not using nowadays all the potential value from IT.

• We can design the pyramide of transformation to help deciders understand the

context and to decide where they want to be.

• We have to give to the whole process a sense of urgency that boost the

organizational change: the digital transformation.

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CONTEXT: DIGITAL ECONOMY Value that IT can deliver to public procurement

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Context: Digital economy

• All sectors are nowadays in a digitization process

• Public procurement is a very important part of the value chain in public

administrations.

• Public administrations are a very important part of the economy

• Public procurement is suffering a big pressure to digitize: transition from

a administrative law environment to a productive lever.

• The digital economy is an economy other than industrial economy:

weighs less (software is eating the world, the petrol of data)

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VALUE OF INFORMATION TECHNOLOGY

Value that IT can deliver to public procurement

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Value of the information technology (IT)

• Information Technology cannot be an isolated tool neither e neutral tool.

• The value of IT in organizations is achieved leading organizational

change that transforms the organization.

• There are many mistakes to let the IT department to lead organizational

change.

• The top leaders must assume their role of leadership in organizational

change that represents the digitization of all economic sectors. In public

procurement also

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IT USES IN PUBLIC PROCUREMENT Value that IT can deliver to public procurement

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IT uses in public procurement: platforms

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How IT is being used in public procurement

HOW IS IT USED TODAY

• IT is nowadays used to produce paper, and information systems

based on data.

• With inefficient procedures in paper, completely opaque

• Processing by dossier, not as a whole.

• It is difficult to design public policies, implement and adapt them

HOW YOU MAY USE IT TODAY

• With automated systems that incorporate a useful degree of

automation in administrative law. Electronic dossiers, documents

and communications. E-Procurement end to end.

• Using the contract information when needed.

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Como se usa la TI en la contratación pública

HOW IT COULD BE USED IN FUTURE.

• Incorporating the elements of the third plataform

• Cloud: private with products delivered as services.

• Mobile: Communicaton between agents through the mobile

screen

• Social Network: interaction and transparency of the entire

process with the ongoing professionalization of the process with

the people involved.

• BigData: Ability to use information in the right form and at the

right time: Transparency, efficiency, competitiveness and

productivity.

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STAGES AND PROBLEMS IN THE TRANSFORMATION

Value that IT can deliver to public procurement

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Stages and problems in the transformation

STAGES

• Transposition: alignment with the digital economy?

• Learning and communication of the principles of the electronic format

transition.

• Efficient market for products and services related to e-procurement

(interoperability)

• Projects that materialize the transition to electronic format.

• Monitoring and supervision of the process (Pan-European

leadership).

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Stages and Problemas of the transformation

PROBLEMS

Analysis:

• “Billions in the Balance: Removing Barriers to competition and

Driving Innovation in the Public-Sector IT Market”. Paper from the

USA public sector (link to document)

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Etapas y Problemas de la trasformación

WHAT IS WRONG IN IT PROJECTS IN PUBLIC SECTOR

• No alignment on problem or desired outcomes.

• Weak leadership and governance.

• “Check the box” culture.

• Requirements too prescriptive

• Slow procurement process and closed markets.

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Etapas y Problemas de la trasformación

WHAT CAN BE DONE TO FIX IT PROJECTS IN PUBLIC

ADMINISTRATIONS

• Establish clear lines of authority and accountability

• Develop a simple needs and outcomes statement instead of voluminous

RFPs.

• Engaging the market early.

• Develop a cost/outcome (ROI)-focused program IT strategy.

• Encourage smart risk taking

• Reduce very burdensome requirements and speed up the procurement

process faster.

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THE PYRAMIDE OF TRANSFORMATION

Value that IT can deliver to public procurement

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The pyramide of Transformation

Few

IT use

Paper + DATA

Electrónic format Mandatory

Cloud, BigData,

Social networks, Mobile

Profesionalization

Intensive

in IT use

1st Plataform

2nd Plataform

3rd Plataform

Paper + DATA

Electronic format Mandatory

Cloud, BigData,

Social networks, Mobile

Profesionalization

Intensive

in IT use

Few

IT use

1st Plataform

2nd Plataform

3rd Plataform

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FINAL THOUGHTS Value that IT can deliver to public procurement

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Final Thoughts • In the digital economy the value is not extracted is created.

• The second platforms requires people to do. The third platform requires

people to think.

• We have to continuously create value.

• The digital economy is grouped into clusters.

• Public procurement can help to articulate more competitive territories to

attract investment and talent. (Smart Cities and competitive territories?)

• Public procurement is an essential part of the value chain to be used to

generate value steadily.

• We must impose a sense of urgency in the process of transformation

and use the pyramid of transformation to provide a clear vision for the

people involved in decisions about where they want to lead their

territory.

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May 27th, 2014 IST Lisbon

Value that Information Technology (IT)

can deliver in public procurement

Thank you very much for your attention !!!!

Manuel Canno

manuelj.canno@gmail.com

www.contratacion-publica-electronica.es

@econtratacion