Value that it can deliver to public procurement pp

1 2nd European Conference on e-public procurement - May 27th - IST Lisbon

May 27th, 2014 IST Lisbon

Vaue that Information Technology (IT)

can deliver to public procurement

http://contratacion-publica-electronica.es/


AGENDA Value that IT can deliver to public procurement



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



MAIN MESSAGES Value that IT can deliver to public procurement



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.



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



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)



VALUE OF INFORMATION TECHNOLOGY

Value that IT can deliver to public procurement



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



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



IT uses in public procurement: platforms



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.



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.



STAGES AND PROBLEMS IN THE TRANSFORMATION




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).



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)


http://agmetalminer.com/2014/05/21/new-report-billions-in-the-balance-it-procurement-exposed/






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.



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.



THE PYRAMIDE OF TRANSFORMATION




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



FINAL THOUGHTS Value that IT can deliver to public procurement



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.



May 27th, 2014 IST Lisbon

Value that Information Technology (IT)

can deliver in public procurement

Thank you very much for your attention !!!!

Manuel Canno

[email protected]

www.contratacion-publica-electronica.es

@econtratacion


http://www.contratacion-publica-electronica.es/





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Value that it can deliver to public procurement pp