The Norwegian public sector emarketplace ehandel.no experiences and challenges on interoperability

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1 det det offentliges offentliges markedsplass markedsplass The Norwegian public sector emarketplace experiences and challenges on interoperability May 11th 2004 André Hoddevik, Programme manager Programme for Electronic Commerce in the Norwegian Public Sector

2 Agenda The Programme for Electronic Commerce in the Norwegian Public Sector The emarketplace Main challenges on interoperability

3 Norwegian public sector procurement Norway: 4,5 million inhabitants Total spending: 26 billions, employees Central government: 13 billions, mly Local and regional authorities: 8,4 billions, mly Public procurement regulations: Below thresholds: Common national regulations. Publication of tenders obligatory above Above thresholds: EU and WTO/GPA based Monitored by ESA (EFTA Surveillance Authority) and national body (KOFA) Procurement policy is a decentralised responsibility Very few framework agreements entered into centrally Multiple entity specific, local and regional framework agreements

4 The Norwegian ecommerce Programme overview The overall responsibility for the programme is in the Ministry of Labour and Government Administration Participation in programme activities are open for central government entities and local/regional authorities Duration from 1999 including 2004 Programme goals: The use of electronic commerce in public procurement shall contribute to a lowering of the procurement related costs and increase the quality of the public procurement processes Released resources shall contribute to an increased service production in the public sector organisations and an increased focus on their core activities The single most important project under the Programme is the establishment of an electronic marketplace for public procurement the emarketplace

5 Basis for the emarketplace the ecommerce Programme perspective To provide public sector entities and their suppliers with easy access to an affordable and easy to use e- procurement solution This implied a focus on establishing an operational e- procurement service A limited project budget ( over 5 years) This implied a focus on establishing a durable concept rather than developing a system solution General scepticism towards big government IT-projects This implied a focus on establishing an operational e- procurement service with minimal risk for the public sector Focus on the emarketplace as a tool for dissemination of e-procurement in the public sector not a goal in itself This implied a focus on lowering the threshold for taking e- procurement in to use and to arrange for changed behaviour both on a user level and on an organisational level

6 Basis for the emarketplace the user perspective Method and practical tool for the different public sector entities to implement their over all procurement strategy Opening for more frequent competitions, less supplier dependency Opening for e-commerce with SME suppliers Method and practical tool to achieve savings related to: Reduced prices on purchased goods caused by higher use of existing framework agreements Reduced transaction costs by arranging for streamlined processes and the integration of internal systems in the procuring and selling organisations with the emarketplace Method and practical tool for compliance with public sector procurement regulations

7 Focus for the emarketplace Sourcing process Identify need Contract specification Tender notification Bidding Receipt of offers Evaluation Contract award Distribution Ordering Monitoring Browse catalogue Approved order Goods Message flow and control approval Reporting Accounting Payment Ordering, invoice handling and payment processes Initial focus on support for the ordering process and to arrange for simplified invoice handling Immediate and future focus on support for the sourcing process

8 General challenges Creation of high quality e-catalogues Suppliers need to focus more on the creation of electronic catalogues rather than paper based. This in order to make them user friendly to buyers in an electronic interface User adoption Behaviour on organisational and personal level need to be changed both in the public sector entities and in its future suppliers Implementation and achievement of savings The calculated ROI is high for the public sector entities (18-24 months), the attention must be drawn to actual realisation of savings both on the buying and selling side

9 Challenges on interoperability Regulation of electronic co-operation operation between buyer and seller Collaboration Protocol Agreement (CPA) CPA as an annex to the commercial agreement Sourcing process Identify need Contract specification Tender notification Bidding Receipt of offers Evaluation Contract award Distribution Ordering Monitoring Browse catalogue Approved order Goods Message flow and control approval Reporting Accounting Payment Ordering, invoice handling and payment processes

10 Challenges on interoperability Identify need ecatalogues: Sourcing process Process for establishment and maintenance/updating Bidding Contract Quality of information Tender Receipt of specification Mandatory notification vs. Optional attributes offers Product classification (UNSPSC) Evaluation Contract award Distribution Ordering Monitoring Browse catalogue Approved order Goods Message flow and control approval Reporting Accounting Payment Ordering, invoice handling and payment processes

11 Challenges on interoperability Sourcing process Identify need Contract specification Tender notification Open infrastructure: Bidding Evaluation Distribution Platform Receipt of Independent Contract Model (PIM) Ordering Platform offers Specific award Realisation (PSR) Ownership to information Monitoring Browse catalogue Approved order Goods Message flow and control approval Reporting Accounting Payment Ordering, invoice handling and payment processes

12 Challenges on interoperability summary emarketplace services should be established as an integral part of an open infrastructure for electronic business, this implies a Need to focus on description of public procurement processes on a platform independent level Need to focus on a method for description of the different platform dependent models Need to focus on better understanding of responsibilities between buyers and sellers when trading electronically

13 Documentation available in English www. Programme description The emarketplace for the Public Sector - Experience gained form the establishment project emarketplace specifications eprocurement solution functional specifications ecommerce platform functional specifications Technical documentation Platform Independent Model (MDA/UMM/ebXML) Platform Specific Realisation (xcbl 3.0) Articles and presentations

14 Questions? Further enquiries can be directed to: André Hoddevik Phone: Telefax: www. Thank you for your attention