IT Procurement Lessons learnt in the NHS

Transcription

1 1

2 IT Procurement Lessons learnt in the NHS Matthew Perrott Strategic Contracts

3 Agenda IT Procurement Considerations Software and Hardware The C Word Buying Complex Solutions Benefits of IT and Procurement 3

4 a bit about me 8 years in NHS Wales Shared Services Partnership covering; Utilities Medical Supplies Pharmaceutical Homecare services Enteral & Parentral Feeding Home Oxygen Services UK Framework with DoH 2015 took post as Strategic Procurement Lead IM&T at NWSSP February 2017 joined NWIS Strategic Contracts Manager primarily focussed on GP systems and 111 Wales procurement. 4

5 IT Procurement Considerations 5

6 Informatics Through the Ages Palaeolithic Cave Art: c. 75,000 BP Stone for inscriptions: c. 3,500 BCE Paper: c. 2,500 BCE Clay tablet for writing Cuneiform: c. 3,500 BCE 75 BCE Wax tablets: c. 1,400 BCE Author: John Frankish,

7 IT Procurement Considerations Its nothing out of the ordinary just Goods and Services Security and Certainty through Conformance Innovation through Performance There is no leading edge Adapt what you have, Adopt what you need or Innovate Don t look at IT for cash releasing savings IT enables the savings but doesn t create them Systems create efficiency users create effectiveness There is always a way to create quality value though 7

8 IT Procurement Considerations Terms and Conditions are King! Hardware Simple Purchase of Goods Hardware with support Goods and Services Software Licensed goods Systems and Solutions - Managed Service Nearly always use a model form / standard contract Ensures ability to manage Creates level field for integration services 8

9 Terms and Conditions Public Sector Crown Commercial Services Supply of Goods and Provision of Services Replaced SIMCON & SSCON requires more tweaking for fist use but has excellent coverage Model Form Services & ICT Contract Developed by Government Legal Services (UK Cabinet Office) Developed in partnership with Public Sector and Supplier market Groups Made up of a number of documents or Schedules in addition to the Terms and Conditions 9

10 Software and Hardware 10

11 Software Everything and anything needs to be licensed Licences need to be applied to; servers where the software resides, the applications accessing it for data The instances that run Terms of the licences are rigid and usually only valid from the day that the license key is delivered. The clock starts ticking if you have installed or not timing is critical Asset sweat relies on up to date records and own audit ability 11

12 Software how to approach it 2 main approaches to licencing User Based Licensing Device Based Licencing Using only one approach will cost more money than needed All licencing needs a hybrid model and lots of thinking Application is critical An acute hospital ward has 4 device terminals and 12 users TGA office has 500 users and 300 devices 12

13 Software how to approach it Asset management software to manage all of the organisations licenses Harvest and re-issue licences from devices or users Allocate licences Manage the contract renewal cycle and aggregate demand Transparency of users across the organisation SAP UK Ltd and Diageo Great Britain Limited 54M awarded to SAP for missed license payments by third party access to data made available to Diageo customers 13

14 Hardware Devices & Infrastructure PC s,laptops, Tablet & Mobile Devices Multimedia and Hub devices Storage Network devices, load balancers, firewalls. Capital Items, Conformance based specification, volume purchase wide market. Think long term, obsolescence, model supersedes and monthly price variation to USD exchange 14

15 Hardware the difficulties Typical hardware procurement hurdles Brand comfort Interoperability Quantifying the unquantifiable Understanding the future needs and opportunities Unpicking the technical reasons from the technical noise Managing a fair and transparent specification 15

16 Hardware Environment On Premise Hosting Datacenter Provisioned Third Party Hosted The C word 16

17 17

18 Cloud Services Simply put, cloud computing is the delivery of computing services servers, storage, databases, networking, software, analytics, and more over the Internet ( the cloud ). Companies offering these computing services are called cloud providers and typically charge for cloud computing services based on usage, similar to how you re billed for water or electricity at home. Microsoft,

19 Cloud Services Structure IaaS Infrastructure as a Service (IaaS) A virtualized computer environment delivered as a service over the Internet by a provider. Infrastructure can include servers, network equipment, and software. PaaS Platform as a Service (PaaS) A computing platform (operating system and other services) delivered as a service over the Internet by a provider. An example is an application development environment that you can subscribe to and use immediately. SaaS Software as a Service (SaaS) An application delivered over the Internet by a provider. Also called a hosted application. The application doesn t have to be purchased, installed, or run on users computers. 19

20 Cloud Services The benefits Zero Capital overhead On demand services only pay when you need them Infinite capacity Security and Backup Technical expertise more experts Organisational agility and market responsiveness Instant version update control Focus on the What not the How 20

21 Cloud Services The Pitfalls There is no return Subscription for life Always online no bandwidth = no production Where data is stored at rest, exchanged and compute differ Visibility of network Terms and non-negotiable Add on s come at a cost in a closed market 21

22 CLOUD Services Things to consider Looks great in the short term but it s a long term game Consider the compute and business process that are core Its offshoring for the digital era Great for peripheral activities Do the cost savings balance the technical risk Can you create synergies with suppliers and customers Dos third party hosting offer as effective a solution In NHS Wales there is a zero cloud policy for all PID and CD However GPs will have on O365 and Cloud device reg services Secure connections to third party hosting for hybrid solutions 22

23 Buying Complex Solutions Similar to a building or infrastructure procurement Set timescales political & regulatory obligations Budget Constraint Spider-web integration with existing infrastructure We know what we want but not how we want it No two contracts are the same What do complex systems look like? 23

24 Welsh System Integration design WRDS WCP WCP WCP Welsh Integration Services Image Capture LIMS RIS RIS RIS eform Library Documents (WCRS) Content Index Results and Reports (WRRS) Imaging Archive (WIAS) Primary Care Record RIS RIS Cardiology RIS RIS Other Diagnostics Medicines Archive CCUS Database Master Patient Index (MPI) Welsh Integration Services PAS CCUS

25 Buying Complex Solutions For requirements of this nature NHS Wales use Competitive Dialogue The key features are: PQQ OJEU Advert Shortlist Detailed Dialogue Trial ISFT Trial feedback Call Off Award Evaluation ISFT 25

26 Feature Stages of a Competitive Dialogue Detailed Dialogue to refine our requirements to develop Supplier understanding of our requirements Trial ISFT to improve consistency of the final bids follows Detailed Dialogue last opportunity for bidders to get feedback on understanding of requirements ISFT the final submissions Clarifications this is not negotiations or changes strict management via Secure esourcing portal Contract Award 26

27 Benefits of IT Procurement It enables the business to strive Creates a robust basis for strategic development Secures the foundations to deploy services to customers Creates business synergies up and down stream It s the second most important resource after people When IT & Procurement professionals work together as partners the business is robust in exploiting its strength, defending its weakness, spotting opportunities and blocking threats. 27

28 Questions 28