Korea Online e-Procurement System


Published on

Public Officials Capacity Building Training Program
for Government Innovation

Seoul, December 11, 2007

Published in: Education, Technology, Business

Korea Online e-Procurement System

  1. 1. Public Officials Capacity Building Training Program for Government Innovation Seoul , December 11, 2007
  2. 2. D adang Solihin Delegation Head Public Officials Capacity Building Training Program for Government Innovation
  3. 3. Contents <ul><li>Concept and Service ………………….…………. 1 </li></ul><ul><li>Background of Digitalization ……………………. 4 </li></ul><ul><li>Performance ………….………………………….. 7 </li></ul><ul><li>Achievements …………………………………..... 9 </li></ul><ul><li>5. International Recognition…………………………14 </li></ul><ul><li>6. Factors for Success ……………………..……….16 </li></ul><ul><li>7. Innovations ……… … ………………………………22 </li></ul><ul><li>8. Lessons Learned ….………………… … … … …….25 </li></ul>
  4. 4. 1.1 Cyber Market for the Entire Public Procurement <ul><li>Single Window </li></ul><ul><li>Integrated bidding information </li></ul><ul><li>(specifications and criteria for the evaluations) </li></ul><ul><li>One-time registration for all bidding participations </li></ul>1. Concept and Service <ul><li>Online transactions </li></ul><ul><li>E- purchase request, bidding, contract, payment </li></ul><ul><li>One-stop service (including internet banking) </li></ul><ul><li>Accessible to information of 80 institutional systems linked to KONEPS </li></ul>- 1 -
  5. 5. 1.2 Internal & External System Architecture Use Linkage Portal Integrated notice Commercial products catalogue Contracted products catalogue Goods classification system e-Procurement system e-Procurement ASP Supplier supporting service Unit contract system Linkage User registration E-Guarantee Supplier’s Performance E-Payment Documents distribution and outside linkage 1. Concept and Service - 2 - Public Organizations (Buyers) PPS Operation Private Businesses (Suppliers) Certification- Related agencies Ministry of Government Administration and Home Affairs Construction- related Associations Korea Financial Telecommu- nications & Clearings Institute Surety insurance Ministry of Finance And Economy Construction CALS
  6. 6. <ul><li>Public procurement contract </li></ul><ul><li>Act on Contracts to which the State is A Party (ACSP) </li></ul><ul><ul><li>Similar processes for public procurement based on the ACSP from central government, local government to state-owned enterprises </li></ul></ul><ul><li>Revised for e-Procurement in 2002 </li></ul><ul><ul><li>Mandatory : Integrated bid notice, Registering the black list of businesses, Annual report of contract amount </li></ul></ul><ul><ul><li>Voluntary : e-Bidding, e-Contracting, sharing the database of businesses </li></ul></ul><ul><li>Approval of e-documents are applied from other Acts </li></ul><ul><ul><ul><li>e.g. Digital Signature Act, E-Government Act, etc. </li></ul></ul></ul>1.2 Legal Framework - 3 - 1. Concept and Service
  7. 7. PUBLIC CONFIDENCE 2. Background of Digitalization - 4 -
  8. 8. <ul><li>PPS e-procurement (1997~2001) </li></ul><ul><ul><ul><li>1997: EDI ( 20 public organizations users) </li></ul></ul></ul><ul><ul><ul><li>online shopping mall (goods) </li></ul></ul></ul><ul><ul><ul><li>2000: construction and services included </li></ul></ul></ul><ul><ul><ul><li>in the shopping mall based on XML </li></ul></ul></ul><ul><ul><ul><li>2001: e-bidding, contract, payment </li></ul></ul></ul><ul><ul><ul><ul><li>e-bidding service were shared on request with the other organizations </li></ul></ul></ul></ul>2.1 Steps to KONEPS (1/2) 2. Background of Digitalization - 5 -
  9. 9. <ul><li>Government-wide expansion (2001~2002) </li></ul><ul><ul><li>2001: One of the 11 e-government projects </li></ul></ul><ul><ul><ul><li>Government-wide efforts made by creating a task force comprising relevant institutions and businesses </li></ul></ul></ul><ul><ul><ul><li>Utilization enhanced by expanding participation and receiving various requests </li></ul></ul></ul><ul><ul><li>2002: KONEPS launched after the BPR/ISP started in 2001 </li></ul></ul><ul><ul><li>* BPR: Business Process Reengineering / ISP: Information Strategy Planning </li></ul></ul><ul><ul><li>2003-5: Built the DRS (Disaster Recovery System) , DW (Data Warehousing) , </li></ul></ul><ul><ul><li>CRM (Customer Relationship Management System) , and Ubiquitous Service </li></ul></ul>2.1 Steps to KONEPS (2/2) 2. Background of Digitalization - 6 -
  10. 10. <ul><li>35,000 organizations (buyers) + 157,000 businesses (Suppliers)  248,000 users </li></ul><ul><li>Records 178,000 daily website hits & 140,000 electronic documents exchange per day </li></ul>3.1 Utilization Volume 3. Performance - 7 -
  11. 11. 3.2 Transaction Volume FY2006 (US$ 44 Billion) 3. Performance - 8 - Shopping Others Bidding 27B 11B 6B 44B Transaction Volume
  12. 12. <ul><li>Raised productivity </li></ul><ul><ul><li>Saved annual transaction costs of US$ 4.5 billion </li></ul></ul><ul><ul><ul><li>US$ 4.1 billion of business expenses was saved in terms of time and transportation (US$ 0.4 B for public organizations) </li></ul></ul></ul><ul><li>Improved transparency </li></ul><ul><ul><li>real time information provision and expansion of contract disclosure </li></ul></ul><ul><ul><li> Promoted fair competition by expanding bidding opportunities </li></ul></ul><ul><ul><li>Reduction of the need for personal contact </li></ul></ul>4.1 Enhanced Procurement Administration 4. Achievements - 9 -
  13. 13. <ul><li>Expanded the experience of E-Commerce </li></ul><ul><ul><li>Public organizations and businesses accumulated the e-procurement experience and utilized it for online transactions </li></ul></ul><ul><ul><li>Created an environment for PCs and the Internet, and fostered the mindset for e-Commerce </li></ul></ul><ul><li>Improved the security of E-Commerce </li></ul><ul><ul><li>Facilitated the establishment of infrastructure for digital signature and security including PKI encryption </li></ul></ul><ul><ul><li>* PKI : Public Key Infrastructure </li></ul></ul><ul><ul><li>Accelerated the application of digital signatures to ensure security for private sector transactions </li></ul></ul>4.2 Support for E-Commerce Development 4. Achievements - 10 -
  14. 14. <ul><li>2003: the First UN Public Service Award </li></ul><ul><li>2004: the Best e-Government Service Provider (OECD) </li></ul><ul><li>2004: Best practice model for e-procurement from around the world (UN, “ E-government Readiness Index” ) </li></ul><ul><li>2005: Reflected the standardized process in the UN global standard (Registration -> Public Invitation -> Tender/Opening Tender -> Publication of Award </li></ul><ul><li>2005: BS15000 acquisition from BSI (British Standard Institution) </li></ul><ul><li>the management service standard for IT service </li></ul><ul><li>(ITIL : Information Technology Infrastructure Library) </li></ul><ul><li>2006: the Global IT Excellence Award in the public sector </li></ul><ul><li>(the 15th World congress on Information Technology) </li></ul>5. International Recognition - 11 -
  15. 15. 6.1 Overcoming Weaknesses 6. Factors for Success - 12 - Obstacles Strategies <ul><li>inter-ministerial cooperation </li></ul><ul><li>Established government-wide promotion system </li></ul><ul><li>Difficulty in integrating user inputs for providing user-friendly service </li></ul><ul><li>Activated user input at the initial developmental stage </li></ul><ul><li>Digital Divide </li></ul><ul><li>Well-developed infrastructure </li></ul>
  16. 16. 6.2 Established Government-wide Promotion System (1/2) <ul><li>Operated an E-Government Special Committee as a top </li></ul><ul><li>taskforce for building e-government (Jan. 2001 ~ Jan. 2003) </li></ul><ul><li>Strong inter-ministerial initiative </li></ul><ul><ul><li>The Committee assumed full management of e-government projects </li></ul></ul><ul><ul><li>The President himself checked the progress of projects directly through the committee </li></ul></ul><ul><li>Joint efforts by officials and private sector specialists in the Committee </li></ul><ul><ul><li>Public: Vice-ministers planning and budgeting </li></ul></ul><ul><ul><li>Private: Specialists applying new ICT </li></ul></ul>6. Factors for Success - 13 -
  17. 17. <ul><li>11 projects for e-government under the principle of Selection and Concentration </li></ul><ul><ul><li>KONEPS as one of the projects </li></ul></ul><ul><ul><li>(government-wide civil service, education, national finance, tax, social insurance, integrated personnel management, etc) </li></ul></ul><ul><li>Top budgetary priority for the e-government </li></ul>6. Factors for Success - 14 - 6.2 Established Government-wide Promotion System (2/2) Fiscal Year 1998 1999 2000 2001 2002 E-Government Projects Budget (US$ M) 223 271 333 420 489 Change(%) - 21.3 23.0 25.9 16.6 Total Budget (US$ M) 90,283 98,065 106,087 119,418 124,966 Change(%) - 8.6 8.2 12.6 4.6
  18. 18. 6.3 Integration of User Input <ul><li>Best practice of collaboration </li></ul><ul><li>Established the board of KONEPS development with 9 organizations under E-Government Special Committee </li></ul><ul><li>A total of 90 organizations and businesses participating as a user or institutions linked with KONEPS </li></ul><ul><ul><li>Operated as advisory committees, trial boards, workshop members, etc </li></ul></ul><ul><li>Continuous practical training of users </li></ul><ul><ul><li>Built nation-wide education system for various organizations including regional offices and outsourced institutions </li></ul></ul><ul><li>Persuading users to promote voluntary use </li></ul><ul><ul><li>NO MORE: red tapes, corruption, waste of time </li></ul></ul><ul><li>Extension of use with PR </li></ul>6. Factors for Success - 15 -
  19. 19. <ul><li>Ranked first in terms of Internet connection </li></ul><ul><ul><li>35 million Internet users(73.4% of the population), 12 million households with broadband Internet subscribers(75%), etc </li></ul></ul><ul><li>No problem occurred in e-biddings with 60 million participants </li></ul><ul><li>Bridged the Digital Divide among different regions and companies </li></ul>6.4 Well-Developed Infrastructure <ul><li>Encouraged technology development of e-commerce by legislating and revising laws </li></ul><ul><li>Digital Signature Act (Feb. 1999), Framework Act on E-Commerce (Feb. 1999), Electronic Promotion Act on Administration Processes for the Establishment of an e-Government (March, 2001), etc. </li></ul>6. Factors for Success - 16 -
  20. 20. <ul><li>Face-to-face consultation services through a computer screen are provided by establishing Web Call-Center </li></ul><ul><li>Customer Relationship Management (CRM) </li></ul>2004: Individually Customized Service 7. Innovations 2005: Focusing on the Ubiquitous Service <ul><li>Mobile service from the PPS homepage to wireless PDAs </li></ul><ul><li>Wireless e-bidding and property management through Radio Frequency Identification (RFID) </li></ul>- 17 -
  21. 21. <ul><li>Established the ONTOLOGY infrastructure from 2004 </li></ul><ul><li>- a universal ontology repository with browsing, searching, and downloading functions on the base of semantic web </li></ul>- 18 - 7. Innovations <ul><li>835,000 products registered totally </li></ul>- Mostly used for the government’s property management by providing standard classification* and identification code ( * UNSPSC: United Nations Standard Products and Services Code) 2006: Semantic Web based E-Catalogue
  22. 22. <ul><li>Integrate and share all information about public procurement </li></ul><ul><li>Make a single e-procurement system for all public organizations </li></ul><ul><li>Standardize procurement process and electronic document (XML) with digital signature </li></ul><ul><li>Take step-by-step approach from integrated bid information and e-bidding </li></ul><ul><li>Need to make clear rules and regulations according to the reforming the process </li></ul>Tips on Establishing e-Procurement System - 19 - 8. Lessons Learned
  23. 23. Thank You
  24. 24. Dadang Solihin currently is Director for System and Reporting of Development Performance Evaluation -Bappenas. He holds MA degree (Economics), University of Colorado, USA. His previous post is Head, Center for Research Data and Information at DPD Secretariat General as well as Deputy Director for Information of Spatial Planning and Land Use Management at Indonesian National Development Planning Agency (Bappenas). <ul><li>Beside working as Assistant Professor at Graduate School of Asia-Pacific Studies, Waseda University, Tokyo, Japan, he also active as Associate Professor at University of Darma Persada, Jakarta, Indonesia. </li></ul><ul><li>He got various training around the globe, included Public Officials Capacity Building Training Program for Government Innovation, Seoul –Korea (2007), Advanced International Training Programme of Information Technology Management, at Karlstad City, Sweden (2005); the Training Seminar on Land Use and Management, Taiwan (2004); Developing Multimedia Applications for Managers, Kuala Lumpur, Malaysia (2003); Applied Policy Development Training, Vancouver, Canada (2002); Local Government Administration Training Course, Hiroshima, Japan (2001); and Regional Development and Planning Training Course, Sapporo, Japan (1999). He published more than five books regarding local autonomous. </li></ul><ul><li>You can reach Dadang Solihin by email at dadangsol@yahoo.com or by his mobile at +62812 932 2202 </li></ul>Dadang Solihin’s Profile