Itac itc supply chain council   introductory meeting june 11 2013 with ssc f inaljune10
Upcoming SlideShare
Loading in...5
×
 

Itac itc supply chain council introductory meeting june 11 2013 with ssc f inaljune10

on

  • 325 views

Demystifying the value of the IT supply chain so that Government can buy the way Industry sells.

Demystifying the value of the IT supply chain so that Government can buy the way Industry sells.

Statistics

Views

Total Views
325
Views on SlideShare
325
Embed Views
0

Actions

Likes
0
Downloads
3
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Itac itc supply chain council   introductory meeting june 11 2013 with ssc f inaljune10 Itac itc supply chain council introductory meeting june 11 2013 with ssc f inaljune10 Presentation Transcript

  • •  To highlight the value of the supply chain •  To identify its vital role in selling, delivering and integrating innovative IT solutions to customers •  Profile how the ICT supply chain works in Canada •  Illustrate how each level works together to support government •  Demonstrate how the supply chain is evolving to support new innovations and the evolving IT requirements of many organizations. •  To gain a greater perspective on the purpose, importance and value of the current structure of the ICT supply chain •  To help SSC make better and more informed procurement decisions related to the supply, service, and delivery of ICT solutions to government AGENDA 2
  • ICT SUPPLY CHAIN IN CANADA 3 Sharon Chamberlin, Chamberlain Consulting Group
  • THE SIZE Ø  ICT 2012 IDC estimate $44.8B Ø  Growth for 2013 is 5.4% ($47.15B) Ø  Public sector (GOV’T | EDU | HEALTH) represent the largest IT opportunity in Canada Ø  Public sector (GOV’T | EDU | HEALTH) consume the largest share of IT in Canada Ø  The Canadian federal government was largest single purchaser in 2012 Estimated 2013 All Canadian ICT and Government Spend by Product & Service Data Source - IDC Market Analysis 4
  • •  Industry Canada’s 2011 statistics illustrate the integral role small and medium technology companies play in the supply and service of ICT solutions nationwide. •  The ICT sector accounts for 3.0% of total employment with a highly educated workforce (45.1% of workers had a university degree in 2011 compared to the national average of 26% )(source Industry Canada). (source IDC Market Analysis) •  Colleagues participating in today’s presentation can speak directly to their partnerships and how the majority stem within the second largest group of Companies by Employee Size. (shown in red in the second diagram) 5
  • TIERED APPROACH TO SOLUTION DELIVERY STRUCTURE TOUCH POINTS INTRODUCTIONS OEMS DISTRIBUTORS SOLUTION PROVIDERS 6 Kelly Hutchinson, MarketWorks Ltd.
  • THE STRUCTURE 7
  • ICT SUPPLY CHAIN ~ Current Touch Points for GoC CAG spend “The government relies on smaller suppliers: Smaller businesses are already significant suppliers of goods and services to the Federal Government. SMEs have historically accounted for approximately 43% of the value of government purchases and 66% of government contracts” Source PWGSC Web Site “Importance of SMEs” Data for Map Source: Computer Acquisition Guide(CAG), taken on June 10, 2013 8
  • INTRODUCTION: OEMs •  191 OEMs serving government today ( 40 IT hardware | 151 IT Software) •  More than 80% of the IT hardware manufacturers rely on the channel to support gov’t •  Most mainstream software publishers leverage the channel for supply and service •  Every OEM listed on the CAG leverages distribution logistics to deliver their IT solutions •  On average, each OEM has 25-50 solution providers authorized on their Standing Offers nationwide and 10-15 go-to partners for complex IT solution delivery and support. •  OEMs invest millions of dollars in developing their solution provider channel to adopt and support new innovations they bring to market. •  While many OEMs have the capability to go direct it is not their go-to-market strategy OEM will be our multi-purpose definition for today’s presentation. It is meant to cover a range of the following that includes these types of IT companies: •  Original Equipment Manufacturers •  Technology Suppliers •  IT Hardware Vendors •  IT Software Publishers 9
  • A FEW WORDS FROM OUR OEMs TODD MADGETT, CISCO SYSTEMS CANADA GREG LARNDER, MICROSOFT CANADA GARY DRYSDALE, HP CANADA Let us briefly turn it over to our colleagues to give us their insights on the following: •  Company | Name | Title | Role •  # employees in Canada •  # employees and locations dedicated to Fed Gov’t •  # of Solution Providers, # of SPs selling to Fed Gov’t •  % of business that stems from Fed Gov’t procurement •  % of Fed Gov’t business that is direct and indirect •  Type of investments made in channel development •  Type of value solution providers add to your business •  Impacts current change is having on Fed Gov’t business 10
  • INTRODUCTION: DISTRIBUTION •  An intermediary between OEMs/Solution Providers •  Three Types of Distributors: 1.  Broadline: Logistics Machine, Breadth of Offering 2.  Value Add: Enterprise IT Solutions Focused 3.  Specialty: Focused Solution Segment •  OEMs leverage distribution to act as indirect sales channels, allowing use of its sales force, technical capabilities, Inventory systems, logistical services, & breadth of customer relationships to cost effectively distribute OEMs products globally. •  VARs/Solution Providers leverage a range of services through distribution: •  Pre and Post Sales Technical Support •  Training and Certification •  Configuration and Integration Services •  Financing Options •  Complete Marketing Services •  Solutions Selling Support •  Electronic Commerce Solutions 11
  • A FEW WORDS FROM DISTRIBUTION RICK REID, TECH DATA Let us briefly turn it over to our colleagues to give us their insights on the following: •  Company | Name | Title | Role •  # employees in Canada •  # employees and locations dedicated to Fed Gov’t •  # of Solution Providers, # of SPs selling to Fed Gov’t •  % of business that stems from Fed Gov’t procurement •  Investments made in channel enablement •  Impacts current change is having on Fed Gov’t business 12
  • INTRODUCTION: IT SOLUTION PROVIDERS IT Solution Providers are an OEMs authorized sales and service agents that have evolved with time and technology. Historically known as resellers that “add value” to technology procured, these IT organizations are enterprise solution focused, helping clients achieve operational excellence. •  Corporate Memory: Majority serving government for 10-20 years •  Solutions Portfolio: On average 20 alliances, vendor neutral, best in class offering •  Full Service Offering: Consultants + Solution Architects + Systems Integrators + Support •  IT Specialists: Skilled architects, system/solution engineers, business mgmt. professionals •  Investments: Ongoing training, certifications, lab equipment, research and development •  Value to OEMs: Client relationships, architecture, expanded sales force, increased service levels, pre/ post sales support, technical integration, contract management, renewal services, add-on opportunities •  Added Value: Solution development and validation cross technology integration solution innovation through new technology adaptation, impartial advisor, transformation specialists. 13
  • A FEW WORDS FROM OUR IT SOLUTION PROVIDERS SCOTT HARPER, SOFTCHOICE CORPORATION DARLENE KELLY, TERAMACH TECHNOLOGIES Let us briefly turn it over to our colleagues to give us their insights on the following: •  Company | Name | Title | Role •  # employees in Canada •  # employees and locations dedicated to Fed Gov’t •  Types of ICT solutions sold to Fed Gov’t •  % of business that stems from Fed Gov’t procurement •  Unique value proposition to Gov’t •  Types of investments made to support Gov’t •  Impacts current change is having on Fed Gov’t business 14
  • IT SOLUTION PROVIDERS Equally important to note, these small and medium IT companies have invested more than a decade of their business efforts in supporting the Government of Canada. The following insights noted below stem from an informal questionnaire MarketWorks sent to federal IT solution providers in September 2012 •  81% of respondents stated that federal government is of extreme importance to their business, corporate/commercial business followed •  Nearly half (45%) of respondents stated that their business supported departments nationwide, while 35% of respondents were regionally focused •  On average, almost 55% of IT solution providers business revenues are derived from federal government contracts •  IT solution providers are leveraging multiple procurement vehicles to sell products, services and solutions to the federal government. •  Federal IT solution providers continue to revise their approach through an increased focus on professional services, managed services and support. 15
  • COMMITMENTS TO GOVERNMENT Ottawa Offices Sales Teams Training & Certifications Lab Equipment Skilled Professionals Custom eCommerce Sales Support NMSO Admin Teams Custom eCommerce Inventory Service Expansions NMSO Costs Sales/Admin Teams Partner Development Training & Certifications *200+ organizations (CAG)*131 organizations (CAG) 5 main organizations supporting OEMs and SPs 16*Data for Image Source: Computer Acquisition Guide(CAG), taken on June 10, 2013
  • TIERED APPROACH TO SOLUTION DELIVERY Just-in-time Inventory Availability and Shipping Accuracy Staging and Scheduled Roll Out Expertise Configuration and Integration Services Innovative Technology Products Skilled Solution Provider Channel Customized Solutions for Government Broad Solutions Portfolio Impartial IT Advisor Solution Development and Validation Skilled Architects On-Premise and Managed Solutions Corporate Memory Full Service Approach Trusted Solutions Knowledgeable Teams Alignment to IT Modernization Agenda Innovation Motivated SMEs 17
  • CLOSING REMARKS ICT SUPPLY CHAIN COUNCIL 18 Linda Oliver, ITAC
  • MOVING FORWARD ENGAGEMENT PROCESS •  Formalize an ongoing relationship with SSC •  Provide advice to SSC, including insights and perspectives on supply chain issues and concerns •  Help SSC develop procurement strategies aligned with the fundamentals of the supply chain to leverage maximum benefits for SSC and the Canadian economy 19