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Title: eProcurement

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Strategy for e-Procurement
June 7th 2004
Presentation by Reynolds Alex P.A.
Confidential. Not for free circulation
Tour de Presentation
  • eProcurement challenges
  • Possible Models for Implementation in Govt
  • Suggested approaches applicable in India
  • Wipro experience learnings in roll-out of
  • Wipro Strengths Capabilities
  • Customer testimonials

Our clients Industry leaders
Diversified client profile
Driven in pursuit of excellence
Some e-procurement Govt/ PSU clients (e-GP)
  • OGC - Office of Govt Commerce - U.K
  • Govt of Chattisgarh
  • Govt of Karnataka
  • Govt of Tamilnadu
  • Indian railways
  • State Bank of India its associates
  • IOCL
  • BPCL
  • BHEL
  • Unit Trust of India
  • IDBI

eProcurement challenges
  • Buyer Adoption
  • Strong Leadership , Political support and
    top-down approach is critical
  • Securing high level support to negotiate better
    prices through volume aggregation
  • Commitment to the business model and approach
    chosen for roll-out
  • Commitment in achieving process efficiencies and
    effecting changes in legal regulatory framework
    to streamline the process changes
  • IT readiness -infrastructure user training

eProcurement challenges
  • Supplier Management
  • Relationship must be beneficial to suppliers
  • Providing support services for suppliers who
    are not yet prepared to go online
  • Working with smaller businesses not enabled for
  • Continuing to build and sustain relationships
    with suppliers

eProcurement challenges
  • Integration to Legacy Back-end systems
  • Current applications are customized hence
    integration big challenge
  • Many Govt depts are still running manual systems,
    implementation of pre post procurement systems
    and building integration is critical
  • IT infrastructure readiness in terms of hardware,
    software, connectivity/ linkage is below par
  • Government would intend to leverage existing
    investments and hence integration assumes

eProcurement challenges
  • Security data sharing
  • Internet enabled procurement means transaction on
    public domain ,perception holds contradictory to
    the confidential nature of the bidding process
  • Physical bidding process provides documentary
    proofs and the electronic system is assumed to be
    incapable of providing the same
  • e-Procurement process is about data sharing,
    communication is competitive - security of such
    a system is of paramount importance
  • Evolving regulatory frame works
  • Choice of technology in the rapidly changing
    technology landscape

Integrated Commerce Platform Easy Source
Possible Models of Implementation
From Customization
to Configuration
From Unified to
From technology Solution to
Business Solution
Development Road Map
Phase 1
Phase 2
Drawing Collaboration
Phase 3
Phase 4
Priority of deployment
Suggested approach models
  • ASP or Hosted Model
  • License Model
  • ASP model graduating to transfer of technology

Implementation risks mitigation strategy
  • Poor system design
  • Inadequate or inefficient purchasing process
  • Poor Systems performance / Software failure
  • Security Breaches
  • User suppliers adoption
  • Mis-representation of process by users
  • Connectivity for SME

Maturity Level
Security is paramount
Wipro learnings experience in roll-out of e-Pro
in the Govt
  • Public bodies successful in implementing
    e-Procurement make and communicate clear policy
    decisions and directives to all concerned stake
    holders with measurable performance indicators
    and objectives
  • Governments identify areas of process improvement
    and automation , with a view to process
  • Outline specific road map with time lines for
    implementing e- Procurement in terms of
    applications as well as government departments 
  • Phase wise implementation approach
  • Deployment e- Procurement through the hosted
    model and then move on to actual transfer of

Wipro learnings experience in roll-out of e-Pro
in the Govt
  • Applications /e- procurement processes that can
    offer immediate quick wins in terms of tangible
    savings are given a higher priority
  • Applications that result in process improvement
    and efficiencies are deployed in subsequent
  • A overall process automation vision is created
    and implemented in pilot departments
  • Subsequently the entire set of e-Procurement
    applications is rolled out to other departments
  • Security is given prime importance in these
  • Applications process should preferably adhere
    to World Bank guidelines along with local
    statutory requirements

The Integrated Business Process
Typical Integrated Business Model
From disparate business processes
To integrated business processes
From Multiple applications to single application
From islands on information to a centralized
business information
Suggestions for e-GP system Implementation
  • Suggestions based on experience with GOI, State
    Govt Implementations
  • GOI Should make clear policies to implement
    e-Procurement across all the government
    departments and communicate to all concerned
    stake holders with measurable performance
    indicators and objectives
  • GOI should detail specific road map with time
    lines for implementing e-Procurement in terms of
    applications as well as government departments
  • GOI should conduct a business process study of
    procurement to arrive at feature list , best
    practices model for e-Procurement that can be
    rolled across all the government departments in
    the country. A suitable consultant with prior
    experience in e-Governance and e-Procurement in
    India may be appointed to do this as well as the
    above activities

Suggestions for e-GP system Implementation
  • GOI should engage in establishing a suitable
    vendor or empanel two to three vendors who can
    provide infrastructure, applications, domain
    knowledge, process re-engineering knowledge
  • All departments should be directed to use the
    applications with specific incentives for using
  • Evaluation of computer literacy of the users in
    departments, the task of improving the computer
    literacy should be entrusted to a separate set of
  • Complete spend analysis of government spending
    and the correct e-Procurement tools to address
    various types of spends should be carried out

Suggestions for e-GP system Implementation
  • GOI to implement e-Procurement in a phase wise
    manner starting with Reverse Auctions addressing
    major spend in pilot departments, GOI realize
    quick wins and boost the E Procurement initiative
  • The next phase should cover ETMS for the pilot
    departments the integrated reverse auction as
    well electronic tendering in the pilot phases
    should be carried out on an ASP basis
  • The ETMS and Reverse Auction combination should
    be then rolled out to other departments and GOI
    should allow the process to stabilize over a
    period of 1 to 2 years
  • The eventual transfer of technology should be
    planned subsequent to stabilization of ASP model

Wipro e-GP Credentials 01markets
Chhattisgarh Experience - Difficulties
  • Process of modification of tendering rules and
    guidelines took too long because of frequent
    transfer of officials
  • Lack of awareness of nitty-gritties of web based
    tendering process among senior IAS officers
  • Availability of computers and internet
    connections in some government offices posed a
    big problem
  • Absence of a secretary level nodal officer for
    e-governance / web based tendering created

Chhattisgarh Experience - Achievements
  • Savings for contractors in document fees
  • Instant access to all tender notices and tender
    documents for contractors
  • PWD officials handling tender publication on the
    web and bid opening on the web on their own
  • All tenders above 1 crore and 40 above 50 lakhs
    being now handled through tendering
  • 90 Reduction in tender preparation time and 80
    in preparation of bid comparison charts
  • NABARD can now monitor tender progress on
    monitoring projects funded by them

Our Key Differentiators
"Our decision to have a long term partnership
with Wipro stems from the confidence we have in
them based on their excellent track record in
handling mission critical IT projects, depth of
technical expertise and world class quality
processes - Paul Grice, Chief Executive-
Scottish Parliament
Quality leadership
We are delighted to partner with a reliable and
known name like Wipro - 01markets as we venture
out to streamline our procurement processes. The
Almana group has always prided in its ability to
be at the cutting edge of technology when it
comes to operational issues and we are happy to
extend this to a key area like purchasing." Dr
Aisha Almana, Director - Almana Group of
Hospitals, Saudi Arabia
Proven reliability
01Markets is a committed and professional team
and offers several services in connection with
eProcurement. They have carried out nearly 20
e-Sourcing Projects for JK Organization in a most
professional and transparent manner in the
shortest possible time. We are satisfied by the
results achieved. We have planned more number of
e-Sourcing projects in the near future. - Mr S
K Dham, Senior GM - Materials, JK Organisation,
Commitment to go the extra mile
"The e-procurement software developed by Wipro-01
markets, was successfully implemented for
conducting Online web tendering online bidding.
The process was completely transparent, in line
with existing policies an extension of
e-governance initiatives taken up by us in line
with our state governments' policies. The
training imparted by Wipro to the participating
vendors ensured that the process was completed in
time. This has benefited the corporation in
reduction of overall cycle time and costs. - R.
Sreekumar, CMD, Karnataka State Police Housing
Corp. Ltd.
Assured cost-savings
Partnering with Wipro Why should you?
From the first day in dealing with Wipro,
theres been nothing but quality character,
highest integrity, highest quality work. As a
Joint Venture, you wouldnt find a better
partner. As a supplier, you wouldnt find a
higher quality partner . Jack Welch - GE I
believe, that within two or three years, it will
be a commonsense for anybody wanting to source a
complex IT project or services, to ask
themselves, Have we talked to Wipro to ask
whether they can help us to get this done.
Bill Gates, Chairman, Microsoft Inc.
For more information contact Reynolds Alex Head
- eGovt Procurement (India, APAC, ME and
UK) reynolds.alex_at_wipro.com 9845276803 9811690122
Our Promise With utmost respect to human
values, we promise to serve our customer with
integrity, through a variety of innovative,
value for money products services, by applying
thought, day after day.
www.01markets.com www.wipro.com/government
Security Breaches
  • Data at Source
  • Authentication thro Digital Certificate
  • Application is PKI enabled
  • Digital certificate policy maintained in the
  • Data in Transit
  • Data transmitted thro 128 bit encryption
  • Data transmit thro Hypertext Transport Protocol
  • Application enabled for Secure Socket Layer (SSL)
  • Data At rest
  • Data Hashed(SHA1) Stored in Encrypted algorithm
  • Encrypted transaction data
  • Data signed with private key
  • Server Access Restricted
  • Fire Wall

Security Breaches
  • Application Level
  • User application rights
  • User role/ rule Based Data Access
  • Windows authentication to resources
  • Server Restricted Access
  • File Authorization
  • IP security Protocol
  • Passwords Are Hashed

User/ Supplier adoption
  • Ease of use
  • Resemblance of traditional formats
  • Awareness training
  • Interactive self help training material
  • Incentive for usage
  • Educate, advantages to suppliers
  • Support
  • System flexibility to change

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