88253 ASIAN DEVELOPMENT BANK INTER AMERICAN DEVELOPMENT BANK WORLD BANK STRATEGIC ELECTRONIC GOVERNMENT PROCUREMENT – STRATEGIC PLANNING GUIDE – 2 This document was prepared for the Procurement Harmonisation Project of The Asian Development Bank, The Inter-American Development Bank and The World Bank. Copyright  June 2004. All rights reserved. Member States and their governmental institutions may reproduce this work without prior authorisation, but are requested to reference the source. Disclaimer The views expressed in this document are purely those of the writers and may not, in any circumstances, be interpreted as stating an official position of The Asian Development Bank (ADB), The Inter American Development Bank (IDB) or The World Bank. The ADB, the IDB and the World Bank do not guarantee the accuracy of the information included in this study, nor do they accept any responsibility for any use thereof. Reference herein to any specific products, specifications, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favouring by the ADB, the IDB or the World Bank. 3 Contents Introduction................................................................................................... 5 What is e-GP?................................................................................................ 6 Why E-GP?.................................................................................................... 8 Why a Strategic Implementation Plan?...................................................... 9 A Guide to Implementation ....................................................................... 12 Institutional Capacity ................................................................................................. 13 Government and Institutional Leadership .............................................................. 13 Governance .................................................................................................................. 15 Management and Planning ..................................................................................... 16 Policy ........................................................................................................................ 16 Legislation and Regulation...................................................................................... 17 Infrastructure and Web Services .............................................................................. 17 Options for Government .......................................................................................... 17 Business Functionality and Standards ...................................................................... 18 Standards .................................................................................................................. 18 Functionality ............................................................................................................ 19 E-Tendering Functionality ...................................................................................... 19 E-Purchasing Functionality .................................................................................... 20 E-Contract Development, E-Contract Management .............................................. 21 Private Sector Integration .......................................................................................... 21 Private Sector ........................................................................................................... 21 Other Issues ................................................................................................................. 22 Developing Strategic Implementation Plans ............................................................ 23 Evaluation .................................................................................................................... 24 Further Assistance ...................................................................................... 25 4 Introduction Many countries have discovered that the transition to e- government, and all the benefits that this entails, can require the extensive re-engineering of public sector management, service design and delivery, legislation and even community expectations. E-government is a reform programme which exploits the potential of online technology, but is not delivered merely through the design, acquisition and application of this technology. Like other parts of an e-government program, implementing e- GP is a reform strategy, and like any reform strategy, will be developed, customised and owned by each jurisdiction if it is to succeed. An e-GP implementation strategy is sensitive to all of the elements that distinguish one jurisdiction from another including management and leadership culture, regulations, skills and expertise, etcetera. This guide is intended to provide an awareness of the issues and critical success factors that will generally be found in any successful e-GP strategy and is aimed at assisting jurisdictions and organisations develop their own implementation strategy for this sensitive and high value activity of government. This Guide has been designed to complement other reports including Strategic e-GP - An Introduction for Executives and the Strategic e-GP - Implementation Roadmap. Important to an understanding of this challenge is also the idea of standards as outlined in Strategic e-GP - Standards. These reports are intended to support Ministers, executives, managers, procurement personnel and technologists find the way forward that best suits their jurisdiction in this important area within the broader concept of e-government and can be found on www.mdb-egp.org Some jurisdictions may initially want to implement only limited functionality such as advertising tender opportunities and associated information. However even a relatively simple activity such as this will require attention to some aspects related to leadership, planning, and management, to ensure the activity is competently managed and achieves its benefits for all the stakeholders involved. Others will have more ambitious intentions. Regardless of their agendas or progress, jurisdictions are welcome to draw on this guide and associated reports for planning, management and progress evaluation of e-GP as well as many other elements of e-government. 5 What is e-GP? Electronic Government Procurement (e-GP) is the application of an efficient high quality management framework to public sector procurement, facilitated through online information and processes. E-GP has the potential to strengthen the accountability, transparency, efficiency and effectiveness of this sensitive high value government function. Figure 1 shows the traditional operating environment of government procurement with its multiple influences, often split accountabilities and complex regulatory and management frameworks. Figure1 Government Procurement Businesses & Business Associations Media G B O U Executives V S Procurement Personnel E I R Legislation & Regulations N N E Policies & Management Protocols M S E Various Managers & Finance Personnel S N T Communities Politicians Online technology provides the potential to significantly reform the accountabilities and performance of this activity. However, as implied in Figure 1, this reform cannot be expected to succeed simply as a technological add-on to an already complex environment. Effective e-GP implies that changes occur across areas of personnel and executive behaviour, skills, regulations and legislation, operational policies, financial reporting, business 6 behaviour as well as transparencies and accountabilities. Few, if any, of these changes will occur simply through the acquisition of some hardware and software, and if this is the understanding and intended starting point to e-GP then jurisdictions may find that the funds might better be spent on other priorities. E-GP facilitates higher quality outcomes for government procurement through its twin attributes of accessibility and interoperability, which enable: greater business access and competition for government expenditure (creating commercial benefits for business and price and quality gains for government), greater and easier access to real time and historic information for management and audit (enabling higher quality decision making and planning as well as greater transparency and accountability), and integration and automation of many workflow processes for transactions and other supply chain management activities improving efficiency and reducing processing costs. E-GP does not displace professionalism or accountability in government procurement even though it can displace manual handling of the mundane and routine processes inherent in traditional supply chain management. 7 Why E-GP? There are generally three broad objectives for an e-GP strategy. These are illustrated in Figure 2. Frequently, developing What objectives are to be countries have a stronger focus on the governance issues with targeted? others more interested in the effectiveness and efficiency goals. Transparency? Most jurisdictions also have an interest in the third objective – Value for money? economic and business development. In some cases, such as Economic Korea, enhanced policy making capacity is also defined as an development? objective for e-procurement. Service delivery? Figure 2 Reform Objectives for E-GP GOVERNANCE Transparency Accountability E-GP EFFECTIVENESS Objectives Efficiency Value-for-money ECONOMIC DEVELOPMENT Business development Competitiveness All three objectives are mutually compatible and can be pursued simultaneously for much the same costs as aiming for just one of How and with whom is this these levels alone. The issues are primarily about design, strategic vision and/or standards and management rather than resources. objectives shared? However while all of these benefits are mutually compatible it does not follow that the pursuit of just one or two will automatically deliver all three. For example greater transparency How will the objectives be and accountability, as well as efficiency of transactions can be carried through into the generated from an e-GP framework built around closed standards, design principles and but such a framework will have restricted interoperability and specifications? play less of a catalytic role in technology take-up more broadly through the economy 8 Why a Strategic Implementation Plan? Implementing a worthwhile e-GP strategy is not simple. It involves many players, operating systems and regulations as already illustrated in Figure 1. The challenges for this strategy will come from both inside and outside of government and can include: • Weak policy and operational leadership. E-GP involves Is Government committed to significant change management and a weak leadership reform? framework will invite fragmentation of objectives, interoperability and methodologies. • Weaknesses in management, planning and ambiguous or divided ownership of the reform programme, rigid processes and regulations, poor contract management, Are key executives committed staff apprehension and departmental imperialism to reform? • An assumption that e-GP is primarily about technology and therefore is to be implemented by technologists. • Regional economies that are often dominated by small and medium enterprises (SMEs) with widely varying, but commonly low awareness, understanding, or skill in What management relation to new technology. capabilities are available to • Apprehension that is often widespread amongst SMEs drive this as a reform that sometimes perceive new online technologies as a programme? threat to business. This apprehension is heightened if Government buying agencies begin dealing directly with the online catalogues of major corporations thereby locking out small, offline and regional players. • Government activity, especially procurement, is sometimes subject to intense scrutiny and must be How will key stakeholder undertaken within a tight policy, accountability and support and commitment be probity framework – a framework that is poorly gained? understood by private sector service providers. • Confusion over standards or the emergence of competing closed trading environments and limited interoperability. • Uncertainty about the legislative environment around e- commerce. • Inadequate access and connectivity to communications infrastructure. What awareness raising • Poor pre-existing procurement practice, legislation and needs to be done and with regulation. whom? There is sometimes also a view that e-GP is a technology system that should operate in a competitive environment such that multiple systems should prevail within government all competing for government workflow. It is preferable to regard the 9 technology supporting e-GP as infrastructure rather than a service and, like most infrastructure, efficiency is ensured through regulated management rather than expensive duplication Is e-GP technology perceived which itself requires regulation to ensure interoperability. Also as a service or as there is sometimes an intention to charge fees for participation by infrastructure? businesses. This will slow the implementation or even stall the programme altogether. Compounding these issues is the complexity of government procurement which precludes the possibility of a one-size-fits-all model for acquisitions. The sweep of government procurement is extensive and varied, ranging from the acquisition of minor items such as office supplies through to major construction, telecommunications, defence, hospital supplies and complex services. This supply side, or government procurement, affects thousands of suppliers, thousands of line items and is usually managed by hundreds or even thousands of procurement managers within government. Government procurement can easily account for more than one third of public expenditures. There are also significant design and regulatory risks. The How well do the stakeholders benefits of e-GP can be negated: understand this as a reform programme? if it is not integrated with reforms of management and regulation that obfuscate transparency and accountability through their very complexities, if processes obstruct the potential of online information to open up the market for government supply, if the information flows relate poorly to audit and management requirements, if there is poor interoperability between government agencies, and if routine processes continue to be managed manually alongside technology. The potential for e-GP can also be defeated if access or interoperability of the enabling technology is restricted by cost, infrastructure, licenses, legislation, limited interoperability with other networks, or if business does not have the confidence to engage. Finally, it is a common perception that the benefits of e-GP derive from the displacement of manual handling of the substantial processes associated with procurement. While these workflow savings may be significant for major organisations they can be secondary compared to the potential for new ways of 10 doing business, the scope for innovation, consolidation, compliance, business intelligence and collaboration. The management of the technology issues will be secondary to the management of the business and personnel issues in a successful change strategy. An e-GP implementation strategy is a reform strategy that seeks to minimise these considerable risks and ensure that maximum advantage is obtained from the opportunities provided by online technologies. It is management, leadership, professional development and reform, rather than technology, which will successfully drive e-GP implementation. 11 A Guide to Implementation An e-GP implementation strategy is sensitive to all of the elements that distinguish one jurisdiction from another including management and leadership culture, regulations, skills and expertise, etcetera. Accordingly an e-GP implementation strategy, like any reform strategy, will be developed, customised Is the need for a strategy and owned by each jurisdiction if it is to succeed. This guide is appreciated? intended to provide an awareness of the issues and critical success factors that will generally be found in successful strategies. A risk managed approach to e-GP implementation will include the five key components as shown in Figure 3: Figure 3 An E-GP Implementation Strategy GOVERNMENT & INSTITUTIONAL LEADERSHIP FUNCTIONALITY MANAGEMENT & LEGISLATION, STANDARDS REGULATION & POLICY E-GP STRATEGY INFRASTRUCTURE PRIVATE SECTOR & WEB SERVICES ACTIVATION Figure 3 illustrates that, to deliver maximum impact, an e-GP implementation strategy will address the key elements common 12 to many government reform programmes that involve multiple agencies including: Are the dimensions of an e- GP strategy understood? Political and executive leadership and authority. Management procedures, regulations and legislation. Broad stakeholder involvement. Infrastructure. Technology. What will be the scope of the e-GP strategy? An e-GP implementation strategy is not simply a strategy for the Goods & services? scoping and acquisition of technology although this will form a Works & component of its requirements. The technology will not construction? successfully drive e-GP implementation and alone may merely Trading add an additional layer of cost. organisations? Institutional Capacity Government and Institutional Leadership An essential element for successful e-GP implementation is Is government prepared to unambiguous government leadership for the purpose of defining formalise its endorsement in the vision of what is to be achieved and activating the process by terms of policy and which it will be achieved. The vision will probably be resources? constructed around the objectives outlined above. This leadership in turn will probably have been inspired by a champion. This leadership delivers sponsorship, endorsement and authority for the vital ingredients of: A vision and objectives for e-GP. Lead agency role definition and coordination. Procurement management reform and implementation. Will the government endorse, Stakeholder activation and commitment (government, empower and resource a lead business, community). agency to implement e-GP? Resource support (influence, funding & expertise) for implementation and sustainability of e-GP. The effective operational translation of this leadership is crucial and the government will need to nominate a lead agency to implement its policy and manage the risks. A suitable agency may already exist (a specialist procurement agency, for example, Does the lead agency have may be appropriate). Lead agency endorsement identifies an comprehensive terms of authority to lead and manage the development and operation of reference for e-GP? the transformations required for government e-procurement. 13 The introduction of effective e-GP cannot be expected to succeed through fragmented or devolved implementation. There are many reasons for this. For example, devolved implementation of Is devolved implementation a e-GP is likely to include adoption of disparate standards, whether consideration? open or propriety, leading to difficulties of interoperability, costly licensing and lock-in or expensive re-alignment at later dates. The expertise required to guide government through these issues is scarce enough on a whole-of-government basis and does not exist on an individual agency basis in most cases The idea of a lead agency in this exercise is important for it defines the need for management and technical expertise and funding as well as coordination and collaboration across government. This lead agency will also need to draw on the What government agencies expertise of other major agencies and recognise their individual should participate in a lead requirements: in doing so it would be an advantage to undertake consultative group? its roles in an inclusive rather than exclusive way. The development by the lead agency of a multi-agency participation group to help guide development and implementation issues can provide an important advantage. For these reasons Cabinet-level sign-off and lead agency establishment are important first steps to establish leadership, coordination and effective outcomes as well as the mechanism by which the requisite expertise can be assembled. This central lead agency role to ensure common standards and coordination essential for technology to be able to be effective should not be confused with centralisation of business processes or control. The accountability for business processes remains firmly with agency managers and is not transferred to the technology or to the lead agency. Thus the systems should be preferably designed around common platforms or at least common standards but retain flexibility to be customised around the individual business processes of each agency or decision points within agencies. Complementing this political leadership is a requirement for institutional or organisational leadership. The lead agency How will procurement staff requires resources and expertise not just in technical areas but be included in the change also to undertake change management. A fear by procurement process? managers is that they will be ‘disintermediated’ by technology. Participation by procurement managers of the transition to this new environment as part of change management is imperative. 14 An e-GP strategy will be strengthened by: A change management strategy that builds awareness and ownership amongst procurement personnel. Professional procurement development and retraining at What expertise is required? manager and officer levels. Access to high-level policy, management and technical advice. Restructuring to recognise the higher skill levels that How will the expertise be result from e-GP reform. acquired and maintained? The change management process will recognise that for professional procurement officers these new approaches offer new opportunities and up-skilling rather than ‘disintermediation’. What professional development is required and Technology affects the skill requirements for procurement but is where will this come from? not a substitute for inadequacies in this area. Labour savings will be available but these will occur predominately with officials for whom procurement is mundane processing or is just one of a range of duties (smaller agencies) and for whom the disintermediation of their procurement processing will often represent welcome relief allowing for greater productivity in other responsibilities. Governance E-GP provides the capacity for more meaningful management information supporting decision making about procurement methodologies ranging from spot purchasing, fixed term What changes need to be contracts, multi-agency aggregation or even to outsourcing. The made to the management of same technology brings together greater transparency on the one procurement? hand with the potential for improved management performance on the other. This transformation will change the management and policies around government procurement with new audit and compliance regimes and greater management information How effective /efficient is the available about all aspects of procurement allowing management current process/how is this to not only challenge its traditional supply requirements but to measured? look more intelligently at shared service options, leasing versus purchase and various alliance possibilities but also at procurement methods themselves such as reverse auctions, business profiling and panel contracts. What new processes (if any) For some of these developments new regulations and legislation are required? are likely requirements. Procurement regulation and management guidelines in the public sector seek to support fair, 15 transparent, accountable, effective and sustainable outcomes. Technology is not a substitute for poor procurement regulation, legislation or poor management practice. For it to deliver its objectives the technology needs to be founded within effective legislative and management frameworks. . Management and Planning To deliver its benefits e-GP implementation will need to be planned, managed and coordinated by a lead agency. At a What will this cost to second level e-GP is unlikely to deliver full benefits if it is to implement and sustain long- operate with inappropriate management practices within the term? various government agencies. Desirable initiatives would include: A management and operational structure to enable a lead Is effective project agency to plan and manage both the implementation of e- management available? GP and its ongoing sustainability. A review of current procurement processes to identify reforms that may be enabled by e-GP. Consideration of the application of quality assurance standards to the revised process. Which steps need to be Specification of a procurement data warehouse and progressed first as they have reports to government and for buyer/supplier usage. long lead times? A readiness assessment and baseline indicators for current procurement performance. Consultation with stakeholders. Policy Government policy may need to be defined to give support, and direction to an e-GP programme that is disseminated, understood What policy development and by stakeholders and consistently applied. At another level guidelines are required? government procurement policies may require amendment. E- GP will not deliver its potential if it is required to operate within an inefficient procurement policy framework. An e-GP strategy will be strengthened with: A review of current procurement policies and their What policy reform is application, development, management and effectiveness. desirable? A determination of e-GP policies and their relationship for policies on e-Government and e-Commerce. Revised policy dissemination and monitoring for compliance and effectiveness. 16 Legislation and Regulation E-GP, like e-government generally, is likely to impact on a range Who is responsible for of business and public sector legislation as well as on regulation and do they have procurement legislation although often it is possible to initiate sufficient legal and elementary e-GP without legislative amendment. E-GP will be administrative powers for of limited effectiveness if it is required to operate against reform? inefficient or ineffective procurement legislation or regulations, guidelines or management protocols. It would be desirable for an e-GP reform process to include: What form of internal / external regulation is in Reviews of scope, effectiveness, and application of place and how effective is it? current legislation and regulatory framework, guidelines and management protocols with a special focus on the impact of technology. What legislation may be Identification of responsibilities and resourcing to reform required? legislation and regulatory functions with the expertise and consultation that relates to online technology. Development of a comprehensive regulatory framework What reform of procurement to include the online environment. guidelines may be required? Monitoring of the effectiveness of the legislative and regulatory framework. Infrastructure and Web Services The potential of online technologies arises from the twin attributes of interoperability, which is determined by standards, What access to the Internet is and connectivity which is a function of infrastructure and web required by businesses? service availability. For developing countries and remote communities connectivity and related variables of bandwidth and reliability can be the principal hurdle to e-GP and e-government generally. What is the current access by government, the private Options for Government sector and the community to the Internet? The cost of enhancing the telecommunications infrastructure can be prohibitive for many governments, but there is a range of other initiatives that can be affordable and even almost costless. A strategy for e-GP should consider carefully these options, What design and service some of which may require co-ordination rather than additional options are available to resources including: government to enhance access? • Kiosk services, retail connectivity (eg internet cafés) • Service industry development 17 Catalogue development Business systems integration Electronic Trading Associations • Peering facilitation • Hardware interoperability (between internet, fax, post, etc) • Bandwidth design & compression • Wireless Included here are elements that would, in developed countries, be regarded as strictly private sector responsibilities such as electronic trading associations (ETAs) and peering. However for many countries these are frequently at such a level that some government facilitation (or regulation) can be desirable. An e- GP infrastructure readiness assessment may be useful at the outset, recognising that weak infrastructure and web services may reflect weak demand which will, in turn, be influenced by e- GP. Business Functionality and Standards Standards The benefits of e-GP can be greatly diminished if access is restricted by cost, infrastructure, licenses, legislation, limited Does the Executive interoperability with other networks, or if business does not have understand the strategic the confidence to engage. The prospects of locking into significance of standards? proprietary solutions, or into dead end standards are of great commercial, economic, and social significance. These issues will increase over time as the technologies evolve and become What expertise will monitor even more powerful. and advise on standards? Standards are the key strategic vehicle through which access and interoperability are ensured. A partial list of issues around which What technical or other standards development for e-commerce is relevant would include: standards will be adopted? Catalogue management Security Authentication Are these open standards? Signatures Supplier identification Records management Legislation Which standards bodies will Reliability maintain these? 18 The management of the standards issue is made more difficult because the development of standards is in a constant state of tension between open standards and proprietary solutions from which developers can extract economic rents, while the development of open standards sometimes lags business GOVERNANCE requirements. Transparency Accountability The very nature of commerce demands that the development and adoption of standards in these and other areas should not only be appropriate within the context of local business and national policies but also consistent or interoperable with international trading partners. Functionality Does the functionality The functionality of e-GP comes in two parts and is guided by support government policies the structure of government business dealings – especially by the on: division between simple and complex procurement. A third part Governance? could be added to include contract management. Case studies Efficiency? suggest that ninety percent of procurement transactions are for Small business? less than $US 3000 and account for perhaps 15% of total Management? procurement. For higher valued procurement (typically above $US 25000 – 50000) a public tendering process is the usual methodology. Figure 4 shows the principal modules in a comprehensive framework. An incremental approach to these elements is desirable, commencing with e-tendering. What consultations are to support the design of E-Tendering Functionality functionality? E-tendering functionality is relatively simple, low cost to implement and maintain, and provides significant value to businesses. Functionality can be increased incrementally and includes: All tendering opportunities information on a single internet site. Online registration for businesses. Is the functionality practical Online search tools. for small and remote Open access via the internet to all original bidding businesses? documents Electronic bid submission by suppliers. Customization options for agencies. 19 The technically most demanding element of this service is sometimes regarded as the security demands of online tender lodgment, although potentially all elements have strong security requirements. The role and status of parallel systems for a phase-in period is a policy issue to also be addressed. Figure 4 E-Procurement Functionality E-commerce Portal ONLINE QUOTING & PURCHASING G B O U SUPPLIER CATALOGUES V Technology Interface FMIS Connections S E Supplier Registry Buyer Registry I DATA WAREHOUSE Supply Chain & Business Intelligence R N N E ONLINE CONTRACT DEVELOPMENT M S E S ONLINE CONTRACT MANAGEMENT N T ONLINE TENDERING Information Technology Infrastructure & Web Services E-Purchasing Functionality E-purchasing functionality is relatively complex because there is a need to integrate workflows and transactions, as well as manage a wide variety of purchases and information flows for many buyers and many sellers. Some of the basic functionality often includes: Online registration of businesses. Purchasing policies available online. Buyer authorization management. Online quotations and information flows E-Purchasing transactions. 20 Financial management integration. Data warehousing. Reverse auctions. Online catalogues. Will the functionality represent an attractive value Small and medium businesses will be hesitant to invest in this proposition for businesses? level of functionality without government leadership and proof of concept via e-tendering. Businesses will need to invest in online cataloging and other elements while government agencies will need to engineer significant changes to work practices for e- purchasing to realize its potential. E-Contract Development, E-Contract Management Will the functionality be Online contract development is primarily aimed at improving suitable for the full scope of internal efficiencies and transparency of government agencies, the project? Construction for while e-contract management targets efficiencies for both example? agencies and businesses (especially construction businesses). Some of the functionality can include: Management and monitoring of contract performance. Management and monitoring of contract payments. Management of contract variations. Management of contract completion and final evaluations. Management of guaranties. Does the functionality Contract templates and best practice guides. strengthen government policies and does it deliver all For all of these elements – e-tendering, e-purchasing, e- of the objectives? development, and e-management – it is essential to address business needs both of suppliers and agencies, change management, procurement management as well as technical design: Project design Procurement process review System specifications/performance System scope (business/technical) Is the design user friendly? System development/ acquisition/ hosting/ support and How is this known? maintenance Private Sector Integration Private Sector All markets, including those relevant to e-GP, are comprised of a ‘buyer’ side and a ‘seller’ side. The participation of the private sector 21 cannot be taken for granted. .Experience suggests that the most effective way to promote business activation is through the immediate value proposition. A business activation strategy will address existed contracted suppliers, non-contracted suppliers and may also work with What awareness building the service industry that supports business applications. A checklist for needs to be done? supplier activation may include: Current readiness for and awareness of e-GP • Contracted suppliers Sell value proposition Letters, online follow-up Meetings and training What is the value-proposition • Non contracted suppliers for business and who is Sell value proposition communicating this? Connectivity Industry association involvement • Service industry development Catalogue development Business systems integration • Electronic Trading Associations support • Business selection and listing policies • Remote business strategy What business involvement is • Charging policies required? • Banking • Supplier – supplier interoperability • Catalogues • Kiosk services Also relevant is the structure of the e-GP implementation programme itself where business is initially uncertain about the benefits. A fully integrated e-purchasing strategy is likely to be How will suppliers be relatively complex and expensive for business to integrate, brought on board? whereas e-tendering is easily picked up by business often at little or no cost and represents an effective means of activation of the private sector, forming a foundation on which higher value services can be built. Other Issues These are just some of the issues that are relevant to the concept stage of e-GP. Other issues to be addressed include: • Ownership & management How will these be • Banking integration – suppliers recognised? • Banking integration – buyers • Document management 22 • Purchase card integration • Data warehouse mapping • Supplier-supplier connectivity Developing Strategic Implementation Plans This Guide is intended to assist jurisdictions and organisations to develop their own implementation plans for e-GP. A standard Where to from here? template for such a plan is not practical in view of the various agendas, levels of readiness and foundations that exist between jurisdictions. Figure 5 E-Procurement Reform Vision and Vision and Goals Goals Scoping Study Scoping Study Key Issues Key Issues Strategic Framework Strategic Framework Action Plans Action Plans APPLIED IMPLEMENTATION APPLIED IMPLEMENTATION & CHANGE STRATEGY & CHANGE STRATEGY Management and Management Development of and Development Framework Resources of Framework Resources Implementation and Implementation Change Management and Change Management Strategy Strategy Implementation Management Implementation Management && Evaluation Evaluation This discussion and the associated questions are designed to alert managers and executives of many of the important issues, risks and desirable features that a strategic implementation plan will recognise. 23 Where e-GP is being addressed at an early stage it may be desirable for a jurisdiction to support its strategic planning process with a preliminary scoping study to map out its issues, the key players and processes as well as the management framework needed to drive the process, as shown in Figure 5. This scoping study would include a brief analysis of the strengths and weaknesses of the existing conduct of procurement, its efficiency, effectiveness and the public and business confidence that it commands. Such a study could also make recommendations about an appropriate lead agency, a phased implementation schedule, resourcing and methodology, the realistic potential for a change agenda around e-GP and the essential elements for success. Evaluation This e-GP guide is intended to encourage jurisdictions to develop their awareness and understanding of these and other issues at an early design stage of public sector technological enablement. Who will report on progress and outcomes and when? E-GP can be a complex programme of reform of work practices and business systems. The success or failure of an e-GP strategy should be evaluated in terms of whether it delivers its objectives rather than in terms of whether the supporting technology Who will evaluate the becomes operational. achievement of the objectives? The ongoing evaluation of the success of the implementation of e-GP should be an integral part of the programme including: Performance monitoring (using the baseline and Who will receive the periodically measurements on key indicators). evaluation report? Benefits monitoring. Procurement outcome monitoring and reporting. Process and system evolution. Is the e-GP strategy and its This evaluation needs to be outcome-based in terms of the three implementation transparent? objectives outlined previously – transparency, efficiency and business development. A formal evaluation plan will identify the areas where the strategy needs adjusting and prepare managers for the demands of transparency that can be expected from a program of this significance. 24 Further Assistance The World Bank, The Inter-American Development Bank and The Asian Development Bank have combined to provide an implementation strategy and toolkit designed to assist with the understanding and implementation of electronic procurement within the public sector (e-GP). It is recognised that each jurisdiction may be at different stages in appreciating and exploiting new technologies and that the process is often iterative. The framework recognises this and is designed to: • Assess and help define policy objectives; • Assess a jurisdiction’s potential for partial or full exploitation of online technologies for government procurement; • Explore the challenges facing public sector service managers and executives; • Identify resourcing, risks and multi-discipline team requirements; • Define ownership issues, providers and resource requirements; • Guide measures of progress. Designed to be thought provoking, promote discussion and suggestions that can be actioned, the framework is also intended to: • Examine the circumstances of jurisdictions to establish a baseline of understanding and needs; • Elicit stakeholder feedback mechanisms to clarify issues and expectations; • Prompt ongoing issues management and development. The framework includes: • An Introduction for Executives to the issues, • an E-GP Assessment designed to assist jurisdictions identify their current preparedness and key issues, • an E-GP Implementation Roadmap, • a discussion of the important issue of Standards, • this e-GP Guide To Implementation Planning to assist jurisdictions to develop their own strategic implementation plans, and 25 • a Web Site www.mdb-egp.org that enables cross-country comparisons of e-GP development. It is anticipated that these resources will be complemented with additional links, reports and discussion papers as these become available to build a comprehensive forum for e-GP. Jurisdictions are invited to use these resources to assist their development of this strategically important component of e-government. 26