Introduction to the Governmental Program for
Electronic Commerce in the Norwegian Public
Sector and the Marketplace Project
André Hoddevik
Programme Manager
Abstract
• Introduction of the Governmental Program for
Electronic Commerce in the Norwegian Public
Sector
• Pilot project: Electronic marketplace for public
procurement
– Rationale
– Functionality
– Implementation plan
Background for the Norwegian Ecommerce initiative
• Program initiative supported by the Cabinet and proposals
from two ministries:
– Ministry of Labour and Government Administration: Budget
proposal 2001 – Programme for renewal of government
administration
– Program proposal approved in Cabinet June 1999
– Ministry of Trade and Industry: eNorge (Norwegian equivalent
to EU’s eEurope)
– Ministry of Trade and Industry: White paper 41 (1998-99) –
“About electronic commerce and business”
– Ministry of Labour and Government Administration: “Action
plan for IT-development in government administration 19982001”
– Ministry of Labour and Government Administration is
responsible for government purchasing strategies
– Ministry of Trade and Industry is responsible for public
procurement regulations
Program participants
• Program ownership: Ministry of Labour and
Government Administration
• Steering group with representatives from 5
ministries, the Norwegian Association of Local
and Regional Authorities and the Office of the
Auditor General (observer)
• Program management: Government
administration services, Public procurements
department
• Program participation open for central
government entities and local/regional
authorities
Program 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 organisations and an increased focus
on their core activities.
Qualitative goals
Quantitative goals
• Increase time for vital person• 50% of purchasing transactions
nel to perform core activities
shall be done via electronic
commerce by the end of 2003
• Increase over all procurement
competence in public sector
• 20% of procurement expenditures
shall be handled via electronic
• Be a demanding customer in order
commerce by the end of 2003
to achieve better terms
and conditions
• Reduce obsolete stock and errors
in the procurement process
• Increase financial control
Electronic marketplace
rationale (I)
• Method and practical tool for the different public
organisations to implement their over all procurement
strategy
– I.e: Norwegian public procurement are highly decentralised,
but with central services on establishment of framework
agreements in selected product categories and advice-giving
(with focus on legal questions)
• 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 a complete or partial
integration with internal systems in the procuring and selling
organisations
– Simple access to key information on suppliers and their
products in the qualification process
Establishment of the marketplace –
reasons for a central initiative
• Co-ordination
– Implementation of common demands towards the suppliers from
the public procurement entities
• Sharing of workload with the public procurement entities
– The procurement entities can focus on their own organisational
structure, and on their internal procedures and IT systems
• Control
– Establish a business model that gives ownership to information
created on the marketplace to the originator
• Functionality
– Make sure that public sector functional and formal needs are met
• Cost
– Reduced investments and minimal operations cost
• Time to market
– Single focus on creating a marketplace solution that meet public
sector needs
Electronic marketplace –
pilot participants
Intention agreement on pilot participation signed with the
following public sector entities:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Norges Landbrukshøgskole
Fredrikstad kommune
Tromsø kommune
Skedsmo kommune
Oslo kommune
Bergen kommune
Trondheim kommune
Statens vegvesen
Rogaland fylkeskommune, Randaberg, Stavanger, Sandnes og
Sola kommune (ARNE-samarbeidet)
Forsvarets overkommando – ARGUS
Sør-Trøndelag fylkeskommune
Hamar kommune
Skien kommune
Steinkjer kommune
Bærum kommune
Larvik kommune
Norges teknisk- naturvitenskaplige universitet (NTNU)
Focus for the Electronic
marketplace
Contract establishment process (Example)
Identify
Behov
need
KontraktsSpecify
grunnlag
Browse
catalogue
Place
order
KunAnnounce
gjøring
mottak
Receive
and
og
evaluering
evaluate
Order
confirmed
Goods
receipt
and
control
Tildeling
Award
and
og
distribusjon
distribute
Invoice
OppFollow up
følging
Payment
AccountReporting
ing
Order and payment process (Example)
• The marketplace will support information
exchange and transactions in both types of
processes
Electronic marketplace
rationale (II)
• The marketplace will be…
– Available on the internet
– Financed from user fees
• Areas of use
– Initial phase: Place orders according to central and entity
specific framework agreements, retrieve information from
vendor database
– Forthcoming phases: Integration with back end systems,
catalogue buying (outside existing agreements), contract
establishment etc.
– Development after the initial phase to be decided from user
feedback and their identified needs
• Technology
– The procurement organisations and the suppliers should be
able to choose their way of electronic communication and
their level of integration between the marketplace and their
internal systems regardless of the choice made by their
trading partners
Public procurement
entity
Common interface
Vendor database
Product catalogues
Order and payment
Statistics/spending
Third party services
Sales support
and/or ERP
system
ODBC
Flat files
EDIFACT
XML
www
E-mail
Telefax
www.ehandel.dep.no
Common interface
Financial
system
Electronic marketplace functionality outline
EDIFACT
Third party services
XML
Calls for tender
www
Tender delivery
E-mail
• E-procurement
solution: OrderingTelefax
Order and
payment
functionality,
third party services and
Maintenance
of info
Marketplace main components:
integration services
• E-commerce platform: Transaction tier,
Supplier
information tier, vendor registry and
hosted services
• Infrastructure for operations, third party
services, openness and security
The E-commerce Platform
and its surroundings
Subscribers
1…n Web client
Internet/other
er
Internet/oth
Transaction Tier
Information Tier
Infrastructure
Internet/other
Internet/other
Service Providers
n Back office
office
2 Back
integration
office
1 Back
integration
integration
1…n
1…n Web client
Internet/other
Internet/other
Internet/other
Internet/other
1…n Web client
Hosted sell
side
3rd party
sell sides
n Back office
Back office
2 integration
Back office
1 integration
integration
E-procurement
Solutions
1…3
1…n Web client
Hosted buy
side
Internet/other
Internet/other
n Back office
Back office
2 integration
Back office
1 integration
integration
Sellers
E- commerce Platform
n Back office
office
2 Back
integration
office
1 Back
integration
integration
Electronic marketplace
• Definition of–users and implementation of authorisation rules
• Definition of availability to
access and usage
framework agreements
Tasks:
• Adjustment of internal routines and
Framework agreement on access to the marketplace (e-commerce
systems
Tasks: platform + e-procurement solution) available
for entities
in theroutines
public and
• Adjustment
of internal
• Establish electronic product catalogue
sector and in the utilities
sectortraining etc.
systems,
• Establish catalogues with agreement
specific prices and conditions
• Adjustment of internal routines and
Publicetc.
sector/utility entity
systems, training
signs subscription agreement
Framework agreement supplier enters
catalogue content
Functionality:
• Access to relevant catalogues (as
defined in own organisation)
• Possibility to create order or
requisition (dependent of
authorisation level
• Intuitive and easy to understand
user interface
Marketplace functionality available for requisitioner/end user in public sector entity
Electronic marketplace –
implementation plan
Tentative plan
May ‘01:
June ‘01:
July ‘01:
Sept. ‘01:
Nov. ‘01:
Feb. ‘02:
June ‘02:
Qualification of suppliers of e-commerce platform
and e-procurement solutions
Deadline for qualification admission
Request for tenders to qualified suppliers
Deadline for submission of bids
Decision on selection of suppliers of e-commerce
platform and e-procurement solution: IBX AS
chosen as supplier of both
Commence pilot testing of marketplace
(e-commerce platform + e-procurement solution)
Marketplace in to operations phase
Questions?
• Further enquiries can be directed to:
André Hoddevik
[email protected]
Phone: +47 22 24 96 67
Telefax: +47 22 24 95 96
Visit our homepage: www.ehandel.dep.no
Thank you for your attention!