Patricia
Hewitt - E-Commerce Minister
<Top>
I define e-commerce in its widest sense to mean the
flow of information across electronic networks. And
as such, it is the essential ingredient of the information
age into which we are all moving.
There is no doubt that e-commerce is beginning to
introduce major changes, not just to business and
commerce, but to the way that people run their lives.
Truly imaginative uses of the advantages of e-commerce
are only just beginning - but already the new direction
that both businesses and consumers will take is becoming
clear. The opening of new opportunities is both driving,
and being driven by, an explosion in internet-related
business technologies - as consumers explore the new
options open to them, and businesses see a huge variety
of new ways of delivering products and services. But
as we become more used to the technologies, consumers
will expect the convenience of online facilities and
the e-commerce environment to become more competitive.
Businesses will need to be able to meet this demand,
both to keep current markets and reach new ones.
The
Vision - why is it needed?
<Top>
The target of making the UK the best place in the
world to trade electronically by 2002 was announced
in the Government's Competitiveness White Paper in
December 1998. And the Government's vision for achieving
this in the UK is set out in the Performance and Innovation
Unit (PIU) report on e-commerce (e-commerce@its.best.uk).
The report sees us as a powerful and innovative country
leading a strong and successful single European market.
We need this vision because of the enormous impact
that e-commerce will have on the economy. It is intermediary
organisations for example, because manufacturers and
consumers are able to deal directly (on the Dell pattern).
But other jobs will be created, for instance in distribution,
and in new industries such as "information brokering".
The monetary impact of e-commerce will also be significant.
UK e-commerce revenues will probably exceed £10bn
this year. And transactions have the potential to
grow tenfold over the next two years, reaching around
4% of total UK Gross Domestic Product (GDP) by 2002.
Their contribution, however, is likely to be disproportionately
greater. E-commerce tends to put downward pressure
on inflation and increases economic growth. Figures
published by the US Department of Commerce suggest
that in the years 1995 to 1998 e-commerce-related
industries were responsible for 35% of US real economic
growth, while representing only 8% of US GDP. In 1996
and 1997 these same industries are believed to have
lowered overall US inflation by 0.7%.
Internationally, the UK has key advantages which
help us to capitalise on the opportunities that e-commerce
presents. Not only is the English language used on
more than 80% of websites worldwide, we also have
particular advantages. First, in strong overall levels
of awareness of e-commerce - 13 million people have
access to the internet in Britain already. Second,
in our excellent performance in the development of
third generation mobile phones and a liberalised telecommunications
market. And third, in our world-beating introduction
of interactive digital TV.
The micro-economic impact of e-commerce is increasingly
acknowledged. Firms can make revolutionary changes
in the way they manage information, deal with their
suppliers and sell products and services. This can
bring great cuts in costs and benefits to the consumer.
The next step is to act on this knowledge. It is a
worrying fact that a recent survey showed that more
than 50% of the UK's senior executives had never received
a technology briefing - and even more worrying that
most of them didn't feel the need for such a briefing!
Why
we need to change <Top>
E-commerce offers great advantages, but is dangerously
easy to ignore for established businesses, because
its practices and technologies are so different. However,
as the Prime Minister himself has pointed out: "if
you don't see the internet as an opportunity, it will
be a threat". Within 2-3 years, the internet will
be as commonplace in the office as the telephone.
So any company that doesn't embrace e-commerce risks
going out of business. And any individual without
IT skills risks losing their job. If the UK fails
to capitalise on the opportunities that e-commerce
presents, then jobs and prosperity will be eroded
by competition from overseas. Businesses must move
quickly in this fast-changing world. It is vital to
realise that the internet is a "weightless" place,
where business can defy gravity - small enterprises
can leap over lumbering giants in a single bound!
We are, for example, seeing some businesses splitting
into small, fast-moving new units to take advantage
of this - perhaps even competing with their parent
company. The Government does not exclude itself from
the e-commerce revolution. We can learn from Industry
about business process change, and are keen to respond
to the needs of the people of the UK - who are our
customers. In particular we need to learn how to deliver
the information and services they want, when they
want them, 24 hours a day, 365 days a year. We can
only do this by moving to a wholly new, information
age model of government.
How
can the Government help? <Top>
The UK has the expertise and the technology. I believe
that it also has the imagination to lead the way in
the information age. The Government wants more businesses
to take up e-commerce opportunities and sees for itself
a clear role in encouraging the UK to take up the
challenges.
In September last year, the Prime Minister appointed
me as e-Minister and Ian McCartney as Minister in
the Cabinet Office with special responsibility for
information age government issues. At the same time,
Alex Allan was appointed as e-Envoy. Together we intend
to lead the UK into the information age. Our aim is
to help everyone in the UK take advantage of the opportunities
e-commerce presents. We need to modernise markets,
by getting the national and international market framework
right and helping businesses to carry out a higher
percentage of transactions on e-commerce networks.
We must also ensure that we become a nation of confident
people - equipped with the skills to use the technology
effectively. And the ability to access e-commerce
networks from home at lower cost. Above all, we must
transform public service delivery to give us leading-edge
government in this information age.
But anything we do will be meaningless unless people
such as you, the readers of Government Opportunities,
are prepared to take part in the revolution and to
let us know what is working and what is not.
For more information on our programme and strategy,
please visit the e-Envoy's web site at: www.e-envoy.com
The "e-Forum" on the website is open for dialogue
- help us to carry it on: take part, and follow the
Government in taking up the challenge of the information
age.
First published Government Opportunities March
2000.
Electronic
Tendering in the European Public Procurement Market
<Top>
Every year in the European Union (EU), public contracting
authorities purchase goods and services worth around
720 billion ECU ($800 billion). This substantial procurement
market involves some 400,000 contracting authorities
and many times more private sector suppliers. Improving
efficiency in the procurement process can lead to
major savings for public authorities.
Public procurement has a major role in achieving
the objectives of the European single market, which
include:
- generating long-term growth and creating jobs;
- increasing European competitiveness in global
markets; and
- ensuring value-for-money for taxpayers.
Within this context, public procurement is governed
by two fundamental policy principles: open competition
and transparency.
The Internal Markets Directorate of the European
Commission has enshrined these principles in a body
of legislation - the Public Procurement Directives.
These specify detailed procedures for carrying out
procurement above certain thresholds.
Study
into the Implementation of Electronic Tendering
<Top>
On behalf of the Internal Markets Directorate, a
consortium, led by Ernst & Young, recently conducted
a study into the potential use of electronic commerce
in European public procurement (both above and below
the legal thresholds). The study produced a vision
of how electronic procurement could work in Europe,
as well as a set of strategic recommendations for
action, including pilot projects. The following discusses
some of their conclusions.
Trends
in Electronic Commerce <Top>
It is believed that the public sector should adopt
a flexible approach to Electronic Procurement and
be able to adopt the best of the practices, tools
and protocols that are emerging in the private sector,
as long as they are widespread and easy to use. Developments
in public sector electronic commerce have therefore
been analysed for the report to give a view of a short-term
future electronic commerce landscape. One of the most
important elements of this landscape will be services
produced by infomediary companies, such as Business
Information Publications Ltd.
These infomediary services may include an electronic
meeting place for buyers and suppliers. Information
is provided in usable value-added forms accessible
via online services. Such services could reflect both
public and private sector needs. Infomediary networks
can also be similar to Virtual Procurer Networks:
here, control of the system is 'outsourced' to the
infomediary as opposed to being in the hands of the
buyers.
Focus
on Short-Term Strategy - Infomediaries and Virtual
Networks
<Top>
The infomediary model is at the heart of Ernst &
Young's recommendations, because:
- EDIFACT and EDI provide good solutions for the
later phases of the procurement lifecycle (ordering
and invoicing), but the start-up costs are high
and they lead to closed communities.
- The infomediary is a flexible, low-cost solution
which can focus initially on making the complex
earlier phases of procurement more effective by
providing value-added services, some of which are
shown below.
Greater use of the electronic retailers/suppliers
for occasional, low-value, simple goods is also envisaged;
and electronic catalogues for frequent low value purchases
of simple goods. However, they conclude that no direct
action is needed at an EU level to make this happen,
although global decisions on payment and security
mechanisms would speed up the acceptance of these
channels.
Value
Added Services for Suppliers <Top>
Automated searches and e-mail notification of public
sector contract
opportunities (BiP's TRACKER service)
Translation Services
Information on current contracts soon to expire
Information on contracts awarded to competitors
Past buying histories of procurers
Teaming/subcontracting partners
Advice on preparing bids
Single place to submit bids
Marketing seminars etc
Competitive analysis/credit ratings
Legal and consultancy services
Value
Added Services for Procurers <Top>
Seminars and training programmes
Qualifications and professional development
Sharing specifications and tender documents
Identifying partners for joint purchases
Screening bids
Activities (electronic commerce, legal etc) in other
Member States
Job vacancies
Expertise on sectoral procurements
Brokering relations with similar procurers
Procurer-driven virtual networks are less relevant
for public purchasing as only the largest public procurers
would have the ability to take on the pivotal role.
However, the basic principle of the virtual network
which covers the whole procurement lifecycle can be
adapted to involve infomediaries which would take
on the driving role and prevent the exclusivity of
the procurer-driven versions.
Infomediaries work both for complex and non-complex,
and for above- and below-threshold purchases.
Many of these services are already provided by BiP
and are well known to our subscribers.
How BiP's etendering infomediary environment
works
Electronic
Transmission of Contract Announcements
<Top>
Hundreds of public procurement professionals are
now producing their contract announcements not in
word processor documents, but in bespoke database
format using the new BiP PrOJECt Online.
Accessible on the Internet, PrOJECt not only provides
the issuing authority with the means to produce and
transmit their notices for publication in the OJEC
and other contract information publications, electronically
using email, but also ensures that these notices are
fully compliant with the requirements of the EC Procurement
Directives. PrOJECt uniquely validates compliance
with the Directive timescales and the mandatory information
requirements before it will accept transmission.
Entering data within PrOJECt also allows authorities
to retain copies of all notices within a secure password
protected bespoke online database for later interrogation
and PrOJECt has additional fields for the registration
of other information pertinent to that announcement,
such as date of publication and OJEC number. This
additional feature can be extended to include all
aspects of the subsequent tendering process, so that
all data - the original notice, expressions of interest,
received tenders, evaluation and notice of award can
be processed within a single standard data format.
PrOJECt also allows for varied levels of administration.
Once this notice is received by the publishers an
email confirmation is sent.
Deposit allows for the creation of additional information
pages linked via the internet directly from the original
contract notice. Having additional information immediately
available to clarify the requirements has reduced
the number of expressions of interest from companies
not fully understanding the requirement or not capable
of satisfying it. It has also reduced the number of
calls received by the issuing authority from companies
seeking further clarification, thereby releasing resources.
Supportive
Contract Information Online
<Top>
Contractors wishing to work with the public sector
also now have available to them the unique information
resource of BiP's Purchaser Profiler. This free website
details information on virtually every UK public body.
Companies accessing Purchaser Profiler can search
for specific public bodies and access their Buyer
Guide which gives invaluable information on the department's
requirements, purchasing processes and procedures.
Purchaser Profiler also highlights key procurement
personnel, the department's current open contracts,
past requirements, future contracting opportunities
and current suppliers lists.
Electronic
Expressions of Interest <Top>
To ensure universal access to electronic tendering,
UK contractors can use REQUEST software, specially
developed by BiP to allow them to input in database
form all the information likely to be required by
departments when issuing a tender notice.
When preparing an expression of interest, contractors
merely access their BiP REQUEST software program and
enter the title of the contract announcement, the
contract number and the issuing authority's address
details into a new response form. Then they return
to their data stored in REQUEST and click on those
items applicable to the expression of interest. Selected
data, such as contact details, CVs, Environment Policy
etc, is automatically transferred to the new form.
Once all required information has been imported into
the new Expression of Interest form, it is emailed
to the issuing authority.
Evaluating
Electronic Expressions of Interest <Top>
To facilitate the receipt and evaluation of electronic
Expressions of Interest public authorities can use
RECEIPT.
The RECEIPT software allows authorities to view REQUEST-generated
Expressions of Interest in text, spreadsheet and graph
format, so facilitating rapid evaluation for selection
of those candidates to be invited to tender.
Financial
Evaluation and Verification Online
<Top>
BiP's gateway to Companies House and Dun & Bradstreet
allows instant validation of companies' accounts and
credit ratings.
Select
Lists & Supplier Appraisal <Top>
SELECT allows authorities to electronically maintain
select lists of pre-evaluated suppliers and appraisals
of suppliers for their own and other departments'
use in a format that is easily transmittable and at
no cost.
Electronic
Invitations to Tender
<Top>
Those who are not to be invited are informed by email.
Those invited are similarly informed by email, and
are provided with a website address and pass code
which allows them to access BiP's Vault Service where
the contract's specific tender documentation has been
deposited by the issuing authority along with the
department's Standard Terms of Contract. These can
then be down-loaded by the tenderer. The Vault is
protected by digital certificates.
Vault
- Encryption and Storage of Electronic Tenders
<Top>
Once completed by the tenderer, the tender document
is now returned encrypted to BiP's Vault service,
a secure internet site, access to which is impossible
until a specific previously selected date and time.
Only when this time has passed can access be obtained
by the issuing authority and then only by the person
holding a passcode.
Contract
Award <Top>
When the contract has been awarded, all tenderers
are informed by email and a notice is produced using
PrOJECt for transmission by email to the relevant
publication.
Supplier
Management <Top>
By reverse engineering the information contained
in BiP's database, Public Bodies can retrieve information
on supplier's and the Public Sector's requirements
in a wide range of formats. For instance, BiP's data
may be used to identify:
- Good suppliers, to ensure they are made aware
of your intended
- procurement;
- To which authorities suppliers are contracted;
- Similar contracts currently open to tender - potential
"piggy-back"
- procurement;
- Potential procurement partnering opportunities
- through PINs;
- Recent awards - to discuss client experiences;
- Contracts that potential suppliers hold - to secure
more references;
- Monopoly suppliers;
- Contracts of which other Public Sector bodies
can purchase - and so saving
- tendering;
- Bad procurement practice; and
- Past procurement notices - for use as templates.
To facilitate this, BiP's systems are firewalled
to GSI Standards.
The
Way Ahead <Top>
BiP is by far the largest disseminator of open contract
information within the United Kingdom and is therefore
aware of the vital role it has in ensuring electronic
tendering is introduced in a way which empowers all
to participate through open and accessible gateways
and related services.
For further details of PrOJECt, VAULT or any of our
other Electronic Tendering products, please contact
Gillian Cameron at Business Information Publications
Limited, Park House, 300 Glasgow Road, Shawfield,
Glasgow G73 1SQ. Tel. (0141) 332 8247. Fax. (0141)
331 2792.
For other information on our Free online services,
including Purchaser Profiler, Supplier Profiler and
Supplier Guides visit our extensive web site at: www.bipcontracts.com.
This site also contains demo sites for all our online
open contract information services.
BiP
Supplier Profiler
<Top>
BiP are pleased to offer organisations interested
in supplying their products and services the opportunity
to register details of their organisation within our
Supplier Profiler site, free of charge.
Supplier Profiler is a free internet service designed
to provide your company with new business opportunities.
Supplier Profiler lists sufficient detailed information
on your company to allow potential clients to assess
the services your company offers and its trading status.
Supplier Profiler is accessible to all and is promoted
to the Public Sector by BiP as a reliable source of
information on companies with which they already trade,
or organisations with which they may wish to trade
in the future.
So why not take a few minutes to complete the Supplier
Profiler forms and accept this offer of a free promotion
of your company?
When completing the Supplier Profiler form for your
company, care should be taken to ensure its accuracy.
However, it is not necessary to complete all sections.
Information which you consider to be confidential
or sensitive may be withheld.
Your company's address and your website address will
be automatically linked to your home site to facilitate
further enquiries.
BiP Supplier Profiler can be found in Marketplace
"http://www.bipcontracts.com"
