Wipro Consulting

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E-PROCUREMENT
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E-Procurement-Components
E-Marketplace
Contract / Catalogue Mgmt
Common Platform For e-buy/e-selling across
Industry
E-Tendering
Scheduling Receipt Inspection Payment MIS
Indenting Tendering Bidding Evaluation Reverse
Auction Award
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E-Procurement Initiatives
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Key Initiatives
Municipal Corporation of Delhi
Departments such as Education, Conservancy,
Sanitation, Engineering, Health and Horticulture
Common procedures but differential workflow
Wipro Approach
Management Challenges
Benefits

• Install and implement an Electronic Procurement
  System.
• Adherence to CVC Guidelines and IT Act 2000.
• Reduce underhand practices and introduce
  transparency
• Reduce the cycle time and cost involved in the
  tendering process
• Introduce efficient procurement to pay process
• User Awareness

• Electronic tendering
• Payment gateways
• Digital signature
• Anti collusion security system
• Change Management
• Implementation and integration of the IT network
• System administration of the Electronic
  Procurement System
• Integration with Public key infrastructure (PKI)
  and Payment Gateway.
• Provision of digital certificates for the users
  and vendors.
• Impart training to corporation staff and vendors
  (300 users, 5000 contractors)
• Availability of a Service Help Desk.

• Processing of over 14000 Tenders in a span of 12
  months
• Greater transparency
• Overall cost saving
• Access to new contractors
• Reduced human error and misuse
• Reduced contractors collusion
• Reduction in unfair practices 
• Capacity enhancement

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Key Initiatives
Government of Assam
Departments such as Roads, NH Works, Building,
RIDF ARIASP Departments are handling schemes
like PMGSY, MPNA, State Plan, NABARD, CRF, NHAI,
NLCPR, World Bank Asian Development Bank Funding
Wipro Approach
Management Challenges
Benefits

• Solution to handle multiple procedure/ policies.
• Catering to World Bank norms, CVC Guidelines.
• Enhance user base/ access to tenders
• Reduce the cycle time and cost involved in the
  tendering process
• Seamless submission of bids
• Reduction in unfair practices
• User awareness

• Customization Implementation of Solution.
• Deployment of team for administrative support
  functions.
• User friendly application for faster adaptation.
• Facilitation and consultancy in adoption to
  electronic tndering.
• Impart training and administrative support.
• Uninterrupted services.
• Procurement worth INR 3000 Crores processed

• Enhanced transparency
• Processing of 103 tenders in a period of 30 days.
• Better and more responsive contractors
• Reduced tender cycle time (90 days to 30 days)
• Minimal human error and misuse
• Reduced contractors collusion
• Reduction in unfair practices 
• Maturity level in a period of less than a year

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Few Other Major Initiatives

• Govt. of Chattisgarh
• Govt. of MP
• National Thermal Power Corporation Ltd.
• Punjab National Bank
• Indian Oil Corporation Ltd.
• National Fertilizers Ltd

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E-Procurement- Essentials

• Senior Management Involvement
• Procurement Process Mapping
• Compliance to World Bank, ADB, GFR, CVC, CAG,
  etc.
• Scalable and Robust Technology Following
  UN/CEFACT standards
• Data Security Integrity
• Change Management
• Effective Business Model

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Data Security

• A security standard for e-tendering must at least
  address thefollowing issues
• Access control based on both role and workflow
• Appropriate use of encryption (PKI) at different
  stages of a tender
• Time locking denial of access to bid data
  before cut-off date
• The system must be tamper-proof or at least
  tamper-evident to effectively prevent collusion
• The system must be able to transfer access
  control and privileges from one official to
  another without the need to share passwords,
  digital certificates, etc and otherwise breach
  security protocols

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Wipro Implementation Approach - Overview
Phase 1 Current State Assessment
Phase 2 Development of IT Processes
Phase 3 Implementation of the Processes

• Interaction with process owners to understand the
  existing processes developed and the extent of
  usage. We use our proven methodology that
  includes questionnaires, observations and
  interactions. The key objective is to
• Assess the Extent of process development and
  rollout
• Assess the overall process framework and its
  workability
• Understand organizational dynamics and key
  challenges

• Implementation is the critical component of the
  overall project. Phase 3 activities typically
  include the 4 stages of implementation
• Stage 1 - Implementation Roadmap
• Stage 2 - Process Implementation
• Stage 3 - Synthesis and Integration
• Stage 4 - Consolidation, Training Handover

• Post a Current State Assessment, commence the
  exercise of process development and
  documentation.
• The objective of this Phase would be to analyse
  and document the processes in the chosen process
  areas as per scope with specific process
  objectives. The phase would include
• Process Documentation
• Develop implemental procedures
• Develop KGIs / KPIs
• Development of a Implementation Roadmap

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Approach Methodology Success Factors

• Early process re-engineering
• Best performing enterprises examine and fix
  business processes before applying automated
  solutions. Slapping an e-procurement solution on
  an inefficient process will not fix that process.
• Strong focus on user adoption
• End users will resist change, especially a change
  that may affect their current working practices
• Involvement of all affected stakeholders in
  implementation
• Getting input from all internal groups and all
  affected suppliers typically speeds system
  acceptance and minimizes implementation problems

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Change Management

• Assess impact of personal and organizational
  change
• Identify Change Agents and Recipients
• Facilitate effective leadership
• Develop and facilitate communication plan
• Create performance measures
• Involve through practice, training and workshops
• Define new roles and skills, Rewards /
  Recognitions
• Celebrate change with public display
• Provide training, adopt new values, attitudes and
  identities
• Monitor change

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Next Steps
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E-Procurement Govt. Initiative
Office Memorandum no. No. 8(5)/E.II (A)/2006
dated July 5, 2006 of Dept of Expenditure, Min of
Finance. In the recent meeting of the Apex
Committee held on June 13, 2006, it was,
inter-alia, decided that all Departments/PSUs may
ensure that procurements above a certain
threshold value (in financial terms) are
necessarily undertaken through e- Procurement.
The appropriate threshold value for this purpose
may be finalized by the Ministries/Departments
concerned in consultation with their Integrated
Finance Division (IFD). All Ministries/Departments
are, accordingly, advised to ensure compliance
of the above instructions under intimation to
this Department.
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E-Procurement- Next Steps

• Capacity Building
• Modifications in GFR to enable standardization
• Review of Accounting Procedures to speed up
  adaptation of e-Payments
• Alignment with CCA
• Process Re-engineering to reap full benefits
• Awareness programs for supplier community

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E-Procurement provides focus on
And brings new culture in the organization
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It assists in attaining higher level of
capabilities
Business Performance
Could Be
Should Be
With Additional Resources
With Present Resources
As Is
Time
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Discerning Opportunities where others perceive
Obstacles
THANKS!
Amit Sharma Senior Consultant Wipro
Consulting amit.sharma1_at_wipro.com 91 9811044111