Contents

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Contents

• Concept and Service .. 1
• Background of Digitalization . 4
• Operational Performance .. 7
• Achievements ..... 9
• Factors for Success ..16
• Recent Innovations and Future Plan22
• Comparative Study .25

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1. Concept and Service
1.1 A Cyber Market for the Entire Public
Procurement

• A single website for public procurement

• GePS provides integrated bidding information
  including detailed specifications and criteria
  for the evaluations, etc
• One-time registration enables participation in
  all bidding

• Online transactions

• All processes are digitalized from purchase
  request, bidding, contract, to
  payment, and information is provided online
• Accessible to information of 67 other
  institutions whose systems are linked
  with GePS, and one-stop service is available

• Just by connecting to the Internet, public
  organizations and private businesses can process
  their procurement work online based on the
  autonomy of each procuring entities.

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1. Concept and Service
1.2 Internal External System Architecture
Portal
Goods classification system
e-Procurement system
e-Procurement ASP
Supplier supporting service
Contracted products catalogue
Unit contract system
Use
Linkage
Integrated notice
User registration
E-Guarantee
Commercial products catalogue
Suppliers Performance
E-Payment
Documents distribution and outside linkage
Linkage
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1. Concept and Service
1.2 Legal Framework

• Public procurement contract
• Act on Contracts to which the State is A
  Party (ACSP)
• Similar processes for public procurement based on
  the ACSP from central government, local
  government to state-owned enterprises
• Revising for e-Procurement in 2002
• Only three mandatory use of GePS Integrated bid
  notice, Registering the black list of
  businesses, Annual report of contract amount
• Voluntary use of GePS e-Bidding, e-Contracting,
  sharing the database of businesses, etc
• Approval of e-documents are applied from other
  Acts
  for example Digital Signature Act,
  E-Government Act, etc.

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2. Background of Digitalization
2.1 To Enhance Public Trust by Improving
Transparency Efficiency
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2. Background of Digitalization
2.2 Steps to GePS (1/2)

• PPS e-procurement (EDI, 19972001)
• PPS adopted EDI to initiate e-procurement
• As a centralized procurement agency, PPS accounts
  for 30 of the entire public
  procurement
• E-procurement applied to procurement of goods and
  to the online shopping mall in 1997, expanded to
  construction and services in 2000, and upgraded
  from EDI to XML based on the Internet in 2000
• In 1997, we started with 20 public organizations
  as users
• In 2001, digitalization extended to all work
  including bidding, contract, and
  payment
• e-bidding service were shared on request with the
  other organizations
• Per-capita productivity rose by 75(from 280 to
  489 cases annually)

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2. Background of Digitalization
2.2 Steps to GePS (2/2)

• Government-wide expansion (GePS, 20012002)
• Prompted as one of the 11 e-government projects
• Government-wide efforts made by creating a task
  force comprising relevant institutions and
  businesses
• Utilization enhanced by expanding participation
  and receiving various requests
• The GePS launched in October 2002 after the
  BPR/ISP for GePS started in July 2001
• BPR Business Process Reengineering /
  ISP Information Strategy Planning
• We built the DRS(Disaster Recovery System),
  DW(Data Warehousing), CRM(Customer Relationship
  Management System), and Ubiquitous Service
  from 2003 to 2005.

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3. Operational Performance
3.1 Utilization Volume

• 220,000 users from 30,000 organizations (buyers)
  and 150,000 businesses (Suppliers)
• Jointly used by all organizations from the
  central and local governments
  to state-owned enterprises
  including all entities belonging to themselves
• Records a daily average of 100,000 website hits,
  and exchange 100,000 documents online which, in
  the past, were delivered via mail or in person

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3. Operational Performance
3.2 Transaction Volume (US 43 Billion annually,
FY2005)

• 91 of all biddings were conducted online
• 18 million businesses participated in 141,000
  biddings amounting to US 24
  billions
• Construction materials, software and office
  supplies, which are regular purchase items of
  public organizations, were ordered by one-click
  purchasing in the shopping mall according to
  the unit costs, which were contracted by PPS
• US 7 billion for 510,000 orders
• Other transactions of US 12 billions including
  single source contracts were made electronically

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4. Achievements
4.1 Enhanced Procurement Administration

• Raised productivity
• Saved annual transaction costs of US 4.5 billion
• US 4.1 billion of business expenses was saved in
  terms of time and transportation (US
  0.4 B for public organizations)
• Improved transparency
• Achieved a crystal clear administration by
  providing information in real time and expanding
  the provision of information
• Promoted fair competition by expanding bidding
  opportunities
• Reduced face-to-face contacts between businessmen
  and officials

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4. Achievements

• Appendices users opinion
• GePS Influence on productivity for businesses

• I can reassign the employees duty because of
  GePS from the paper or routine work to management
  or sales divisions for more productivity (a CEO
  of a private enterprise)
• Before GePS, the time required for participating
  in a bidding took at least half day, but now
  only 1 minute is enough for the same work. Our
  company participated in bids 2,000 times a year
  (a clerk of a
  construction company)
• I used to check the gazettes and newspapers at
  all times for information, but now, I start my
  day surfing GePS with a cup of morning coffee
  (a businessman in charge of sales )

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4. Achievements

• Appendices users opinion
• GePS Influence on transparency for businesses

• Before GePS, we sometimes formed collusion with
  our rivals for prearranged bidding in front of
  the bidding place But now the chances of such
  irregular practices are virtually non-existent
  (a clerk of a construction company)
• I used to visit the agency for the contract
  process, so I sometimes felt uncomfortable,
  pondering whether I had to give a gift to my
  clients or not, but now I dont need to visit
  the client, so I am happy with the newly changed
  situation (a businessman in charge of sales)

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4. Achievements

• Appendices users opinion
• GePS Influence on productivity and transparency
  for public organizations

• Before GePS, in some cases, over 1,000
  participants came to attend just one bid in
  that case regardless of their job positions, all
  members of our agency had to support the
  execution of the bidding from the registration to
  bid opening for several days But now I can
  finish all of my work alone at my PC in ten
  minutes A total of 210,000 people participated
  last year (a
  city-official in charge of procurement)
• Because of the peculiar characteristics of
  procurement arising from conflicting interests,
  citizens had doubts about transparency, however
  hard we may have tried But now, most of the
  biddings are implemented by GePS. I feel
  citizens trust improving (a city-official in
  charge of procurement)

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4. Achievements
4.2 Leading the Development of E-Commerce

• Expanded the experience of E-Commerce
• Public organizations and businesses accumulated
  the e-procurement experience and utilized it for
  online transactions
• Created an environment for PCs and the Internet,
  and fostered the mindset for
  e-Commerce
• Improved the security of E-Commerce
• Facilitated the establishment of infrastructure
  for digital signature and security
  including PKI encryption
• PKI Public Key Infrastructure
• Accelerated the application of digital signatures
  to ensure security for private
  sector transactions

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4. Achievements
4.3 Worlds Best E-Government Operator (1/2)

• Received with the Public Service Award (UN,
  Jun. 2003)
• Evaluated as the best e-government service
  provider (OECD, May 2004)
• A strong pull-through effect on ICT use in the
  private sector and no further actions are required

• Reflected the standardized process in the UN
  global standard (UN/CEFACT, Mar. 2005)
• Registration ? Public Invitation ? Tender/Opening
  Tender ? Publication of Award

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4. Achievements
4.3 Worlds Best E-Government Operator (2/2)

• Best practice model for e-procurement from around
  the world
  (UN, E-government Readiness Index, Nov. 2004)
• Accentuated the integrated portal approach

• BS15000 acquisition from BSI (British Standard
  Institution, Nov. 2005)
• Certificate for providing IT Service according to
  the global standard processes (ITIL Information
  Technology Infrastructure Library)

• The PPS has a keen interest in supporting the
  international community to innovate the public
  procurement by sharing our experiences.

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5. Factors for Success
5.1 Overcoming Weaknesses
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5. Factors for Success
5.2 Established Government-wide Promotion System
(1/2)

• Operated an E-Government Special Committee as a
  top
• taskforce for building e-government (Jan.
  2001 Jan. 2003)

• Strong inter-ministerial initiative
• The Committee assumed full management of
  e-government projects
• The President himself checked the progress of
  projects directly through the
  committee
• Joint efforts by officials and private sector
  specialists in the Committee
• Public Vice-ministers planning and budgeting
• Private Specialists applying new ICT

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5. Factors for Success
5.2 Established Government-wide Promotion System
(2/2)

• 11 projects for e-government under the principle
  of Selection and Concentration
• GePS is one of the projects including
  government-wide civil service, education,
  national finance, tax, social insurance,
  integrated personnel management, etc

• Top budgetary priority for the e-government

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5. Factors for Success
5.3 Integration of User Input

• Best practice of collaboration

• Established the board of GePS development with 9
  organizations under E-Government Special
  Committee
• A total of 90 organizations and businesses
  participating as a user or institutions linked
  with GePS
• Operated as advisory committees, trial boards,
  workshop members, etc

• Extension of use with PR

• Continuous practical training of users
• Built nation-wide education system for various
  organizations including regional offices and
  outsourced institutions
• Persuading users to promote voluntary use
• No more red tapes, no more corruption, no more
  waste of time, etc

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5. Factors for Success
5.4 Well-Developed Infrastructure

• Bridged the Digital Divide among different
  regions and companies

• Ranked first in terms of Internet connection
• 35 million Internet users(73.4 of the
  population), 12 million households with broadband
  Internet subscribers(75), etc
• No problem occurred in e-biddings with 60 million
  participants

• Encouraged technology development of e-commerce
  by legislating and revising laws

• Digital Signature Act (Feb. 1999), Framework Act
  on E-Commerce (Feb. 1999), Electronic Promotion
  Act on Administration Processes for the
  Establishment of an e-Government (March, 2001),
  etc.

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5. Factors for Success
5.5 Continuous Efforts for the Innovation
Building up the Ontology-based e-catalogue
(2006)
Development of CRM for customized services (2004)
Expansion of Use (2003)
Provision of ubiquitous service including mobile
e-bidding (2005)
Establishment of GePS (2002)
CRM Customer Relationship Management System
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6. Recent Innovations and Future Plan
6.1 Individually Customized Service(2004)

• Face-to-face consultation services through a
  computer screen are provided by establishing Web
  Call-Center
• Differentiated services are provided for each
  customer by introducing
  Customer Relationship Management (CRM)

6.2 Focusing on the Ubiquitous Service(2005)

• Mobile service channels shift away from the PPS
  homepage to wireless channels such as PDAs
• Wireless e-bidding and property management
  through Radio Frequency Identification (RFID)

• About 200 participants monthly through PDA

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6. Recent Innovations and Future Plan
6.3 Semantic Web based E-Catalogue(2006) (1/2)

• 620 thousands products registered totally, but
  only 80 thousands for the purchase currently

• Mostly used for the governments property
  management by providing unique classification
  and identification code
• UNSPSC United Nations Standard Products and
  Services Code
• Well developed for the property management with
  rapid increase in number of registered products
  340 thousands(2002) ? 620 thousands(2005)

• Expanding to 150 thousands products for the
  purchase within 2006

• Adopting private e-marketplace strategy for
  developing items for the customers satisfaction
  except for the complicated bidding processes
• Upgrading the GePS shopping mall for more
  convenient one-click service

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6. Recent Innovations and Future Plan
6.3 Semantic Web based E-Catalogue(2006) (2/2)

• Established the ONTOLOGY infrastructure from 2004

• Provided a universal ontology repository with
  browsing, searching, and downloading capabilities
  in order to facilitate e-catalogue sharing and
  interoperability by restructuring the database on
  the base of semantic web

• Applying the Ontology-based e-Catalogue System to
  the upgraded shopping mall and supporting
  interoperation with private sectors in 2006

• Providing the integrated reference to many kinds
  of different standards and more opportunities for
  the private businesses to enter the GePS
  e-catalogue
• Most advanced performance of searching the
  products
• Supporting the private businesses and
  e-marketplaces to establish their own e-catalogue

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7. Comparative Study
7.1 Advices to Establishing e-Procurement System

• Integrate and share all information about public
  procurement
• Make a single e-procurement system for all public
  organizations
• Standardize procurement process and electronic
  document (XML) with digital signature
• Take the step-by-step approach from integrated
  bid information and e-bidding
• Need to make more clear rules and regulations
  according to the reforming the process

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Thank You
Ja Hyun Koo (jkoo_at_pps.go.kr) Director General of
the Headquarters for e-Procurement Public
Procurement Service of Korea (www.pps.go.kr /
www.g2b.go.kr)