Susan Fitzgerald

eMarkets: 

eMarkets Susan L. Fitzgerald, CPPO, C.P.M.© Winbourne and Costas, Inc. Wednesday, September 26, 2001 GSA/CommerceNet, White House Conference Center Washington, D.C.

Slide2: 

e-Catalogs, e-Malls, e-Shopping Carts Vendor Product & Service Offerings On-Line Open Market, Contracts/Agreements or Schedules e-Bidding Solicitation Distribution Receive & Tabulate e-Bids or Proposals Reverse Auctioning e-Marketplace Bring Buyers & Sellers Together Punch Out Control & Reconciliation Level 3 Data Workflow e-Procurement Trends

Fee & Revenue Models: 

Fee & Revenue Models Government Pay Initial Investment or Fee Per Purchase Order Vendor Pay Transaction Fee Per Order Subscription, Bid/Quote Fee Catalog Maintenance/Hosting Fee Software License Fee Fee Determined by Market Different for Vendor Type, Commodity or Order Cap Reverse Auctions % of Savings, Transaction, Subscription, Hosting Fee Revenue Generating

Fee Principles: 

Fee Principles Fee Creates Behavior—Value Judgment e-Procurement Provider Needs to Eventually Get Paid—ROI Fee Should Support Behavior You Deem Necessary for Long Term Success If no one uses, transaction volume does not increase and host does not obtain dollars to get back initial investment. Transaction volume, great open market prices, and free to government is dependent on significant usage. Everyone Shares in the Costs and Benefits of Conducting Business Online Does Fee Pass Through to Government? Value Proposition & Measurement To Make Money, Requires Usage—To Get Usage Requires Political Consensus

Cultivating a New Paradigm: 

Cultivating a New Paradigm At the end of the day, is e-Procurement going to help you… Attain Organization Mission Achieve Better Prices,Values and Controls Reduce Administrative Burden Satisfy Stakeholder Requirements Manage Your Business?

How Could It Affect You?: 

How Could It Affect You? Small Purchases Sourcing Socio-Economic Initiatives Best Value Reverse Auctions Service Contracting Authentication Open Integration

Impediments—Risk and Fear: 

Impediments—Risk and Fear Legislative Authority Mandatory vs. Voluntary Use “Customer” Satisfaction Investment in Time—Value Add—Easier than Current Processes One Point of Data Entry Funding Budget & Appropriations Vendor Acceptance & Impact on Small, Minority, Disadvantaged Ownership ASP or Government Functionality Process Reengineering Integration to Front & Back-end Systems

Keys to Success: 

Keys to Success Attainable Goal(s)—Focus on Vision Walk Before You Run—Method(s) of Procurement Simplicity—Easier than Current Process Executive & Government Support Governing Body, Executive, Finance, IT, Procurement Investment of Customer—Focus Groups Supplier Enablement & Engagement Current, Accurate Data What do you use now? What does the data look like? How do you leverage? Fees, Revenues and Impact—Value & Savings Communication and Marketing

Market Research: 

Market Research ROI Promises Government & Vendor Perspective Guarantee of Expenditures Levels System Spend = Expectation for Suitable Procurement Candidates through Solution Catalog Content Management Who does it and what does it mean? Government vs. ASP vs. Vendor Total Cost and Fee(s) & Potential Pass Through Transaction, Catalog, Subscription, Bid/Quote Government and Administrative Functions Provider Reliability & Continuity

Slide10: 

Simple and Easy to Use—Faster Transactions Contracts at Buyer’s Fingertips Immediate Access to Small Purchase Vendors Leverage Buying Power Increased Reporting Capabilities Search Socio-Economic Vendor Requirements Reduction in Administrative Processing Costs Average Cost to Process PO Manually = $75 to $150 Average Cost to Process Electronically = $1.50 Focus on making better buying decisions and negotiating complex procurement actions Saves Taxpayer’s Dollars Government Benefits—ROI

Vendor Benefits: 

Vendor Benefits Enhances Market Visibility & Access Capture Greater Market Share Ensure Vendor is Everywhere that Customer is Buying Publish Once & Sell to Many Increases Sales Productivity Reduce Cost of Selling to Fragmented and Regulated Market Promote Products with 24 x 7 Digital Sales Agents Free Sales Staff to Focus on High End Sales and Customer Service Streamlines Order Processing—Speeds Delivery Reduces Administrative Costs Reduce Cost of Doing Business with Government

Policy Decisions: 

Policy Decisions Mandatory vs. Voluntary Utilization Optional Yields Approx. 15-20% of Transactions Mandatory Yields Approx. 80-90% of Transactions Funding Model and Limitations Appropriated vs. Vendor Key Legislative & Stakeholder Buy-in Governing Body, Executive Office, CIO, CFO Small & Disadvantaged Community Impact Balance Transaction Fee and Impact Government Hosted vs. Application Service Provider (ASP) Integrate with Front & Back-End Systems

Implementation Race: 

Implementation Race High Usage & Dollar Items—Repetitive Buys Contract & Price Agreement Spend Maximize Utilization Eliminate Administrative Expenses Work Flows & Approvals Change Purchase Thresholds Audit Trails & Protest Disposition Stakeholder Buy-In and Expectations Executive, Regulatory, Administrative, Customer, Vendor, Other Governmental Entities Leverage Existing and Future Technologies

Making Your Vision a Reality: 

Making Your Vision a Reality 30 Ft View – How will it improve financial position and procurement function, while facilitating the attainment of governmental initiatives? What is impact on government procurement reform? What are government priorities and how does it affect everyday business?