© 2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

e-Procurement Solution for Government of Karnataka

A Case Study

HP Confidential 27 March 2005

Customer Overview

• Customer Background/Profile:

Government of Karnataka (GoK) is a leading state in India. GoK is the seventh rank in per capita income among major states in India. It contributes to 5% of the country’s population and 5.5% of national GDP.

• Customers objective:

Government of Karnataka has decided to adopt eProcurement in a phased manner. GoK aims to implement a single, unitary end-to-end eProcurementsolution in the State. The Business model is a Public-Private-Partnership (PPP). The project is for a duration of 66 months

HP Confidential 37 March 2005

Overall ArchitectureGovernment offices

���

�Operation Center�

�Tendering

Room�Administrative Contract Officer

Operator

� Supplier�

Internet�Office�

HP Confidential 47 March 2005

Technical components

• N-tiered architecture

• Designed to Scale horizontally

• Highly available solution to meet 99% uptime

• LDAP server for user/supplier directory information

• Use of Digital Certificates – SafeCrypt to provide Digital certificate and Sub CA facilities

• Suppliers to access via the internet and Government employees to access via the Extranet

HP Confidential 57 March 2005

Department criteria for e-Procurement

Based on the following criteria certain rules were prepared to plan the roll-out:− Procurement value and volumes

− IT and network readiness

− Compactness of Department

− Centralization/decentralization of procurement

− e-Tendering experience

− capability to deploy all the modules during the pilot phase itself

HP Confidential 67 March 2005

e-Procurement Functional Architecture

HP Confidential 77 March 2005

Solution Building Blocks

� Application server�

Linux (RedHat)

eGovPKI-Base (HP)

JBOSS

Business logics (HP)

Reports Generator

�Web server�

Apache

Presentation modules

(HP)

� Data Base server�

Linux (RedHat) Linux (RedHat)

MYSQL

� PC�

Windows

Internet

explorer

eGovPKI-Base : a package software to control PKI

HP Confidential 87 March 2005

Indent Management

HP Confidential 97 March 2005

e-Tendering

HP Confidential 107 March 2005

HP Confidential 117 March 2005

e-Auction

HP Confidential 127 March 2005

Roll out

Pilot

Readiness

Initia tion

Interfaces to Ex terna l

Applications

Unit Testing

Process Definition & End User Tra ining

Customizati

on

Data

M igra tion

Business

Process Definition,

Review ,

Sign Off

Ex ecutive

App Program

Integration Test

User Acceptance

Test

Effectiveness Review

Pilot

Support

Roll Out

Project Initia tion

Detailed

System Study

H/ w , N / w Sizing, Procurement. Site

Prepara tion

Core

Team Tra ining

Applica tion BPR

ePrcourement Implementation Methodology

HP Confidential 137 March 2005

Focus Areas

• PKI Implementation

• E-Payment framework

• Management of Change

• Training

• Facility Management

HP Confidential 147 March 2005

PKI Implementation

HP Confidential 157 March 2005

e-Payment Framework

• Tracing payment with Transparency

• Reform in EMD payment

• Sharing benefits out of EMD with contractors

• 360 degree tracing of payment through handshaking mechanism with the bank

HP Confidential 167 March 2005

Management of Change (MoC)

8. Assess if behavior has changed & how to adjust the plan

7. Identify actions that motivate employees to change

6. Develop/Deliver specific training for new process / tool

1. Identify MOC risks & develop strategies/plans to mitigate risks

3Stakeholder

Analysis

2Organizational

Alignment

7Staff

Commitment

8User

Adoption Assessment

4ChangeImpact

Assessment

5Communication

Plan

6User

Training

3. Document expectations and issues

2. Engage sponsors for their support

1MOC Risk

Assessment &

Plan

5. Communicate(what, to whom, when, how)

4. Assess what’s changing & who is impacted?

HP Confidential 177 March 2005

Training

• Targeted training− Suppliers/Contractors

− Government users

− Goods/Works/Services procurement

• Dry-run exercises

• Dedicated mentor for each department

HP Confidential 187 March 2005

Facility Management – SLA Based services

HP Confidential 197 March 2005

Challenges

• Department buy-in− Dedicated resources

− Workshops

• Centralized Supplier Registration− Amendments are being made

• Non-standard master data− Educate on the new format

• Non-standard tender documents− Insist the need to use standardized tender documents

approved by Karnataka Transparency act in Public Procurement (KTPP)

HP Confidential 207 March 2005

Challenges (Cont..)

• Legacy Integration− Cross-over to make the legacy team understand the

need

− Suggest and handhold in the legacy upgrade activity

HP Confidential 217 March 2005

Questions/Discussions