SHared SerVICeS CaNada,IT ModerNIZaTIoNAND eMerGING MarKeToPPorTUNITIeSFOR SMaLL aNd MedIUMeNTerPrISeSPrePared For:Office ...
The opinion, analysis, and recommendations presented within this report are drawn from research and analysis commissioned ...
eXeCUTIVe SUMMaryThe Government of Canada has embarked upon a modernization initiative designed to reduceoperational costs...
TaBLe oF CoNTeNTSStudy Overview -----------------------------------------------------------------1        Objective ------...
STUdy oVerVIeWOver the past several decades, the Government of Canada has adopted new technologies to betterserve Canadian...
The Government of Canada recognizes the critical importance of these IT service companies, not only interms of providing s...
SeCoNdary reSearCH • Researched all organizations that contributed to the study, their documented plans and priorities,   ...
to streamline, optimize and modernize their operations, and IT companies can help department  executives with their portfo...
With so many unknowns, and new questions and challenges cropping up every day, stability is a long   way off. Officials wi...
Technology Manufacturers and distributors  Technology manufacturers and distributors are important players in the governme...
reCoMMeNdaTIoNS For SMes                   12           13                        14 Figure D: How To Navigate Change and ...
priorities and direction. Ultimately, everyone benefits as better collaboration results in a more  seamless execution and ...
Support the CIos  While departments have transitioned much of their IT infrastructure to SSC, many projects and  services ...
reCoMMeNdaTIoNS For PWGSC  The study findings have enabled MarketWorks to develop recommendations, at the request of  PWGS...
reCoMMeNdaTIoN # 3:adopt new mechanisms to support impacted departments in their IT transformation   1. Develop an intrade...
aPPeNdIX a - FooTNoTeS1 GTEC 2011. Corinne Charette, Chief Information Officer, Government of Canada, Keynote Speech.http:...
13  Report on the State of Aging IT Across The Government of Canada: Treasury Board of CanadaSecretariat (TBS). 2012. http...
aPPeNdIX B - GoVerNMeNT eNGaGeMeNTTyPE      ORGANIzATION               PARTICIPANT TITLE                        DATE      ...
TyPE       ORGANIzATION              PARTICIPANT TITLE                       DATE         PuRPOSESTEWARDS   Office of the ...
about MarketWorks Ltd.MarketWorks is a marketing consulting firm focused on the Canadian public sector.We work with client...
PUBLIC SECTOR MARKET DEVELOPMENTpage 18        •   w w w . m a r k e t - w o r k s . c a   •
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Shared Services Canada, IT Modernization and Emerging Market Opportunities for Small and Medium Enterprises

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Shared Services Canada, IT Modernization and Emerging Market Opportunities for Small and Medium Enterprises

  1. 1. SHared SerVICeS CaNada,IT ModerNIZaTIoNAND eMerGING MarKeToPPorTUNITIeSFOR SMaLL aNd MedIUMeNTerPrISeSPrePared For:Office of Small and Medium Enterprises andStrategic Engagement, Public Works andGovernment Services CanadaPrePared By:Kelly Hutchinson, MarketWorks Ltd. PUBLIC SECTOR MARKET DEVELOPMENT
  2. 2. The opinion, analysis, and recommendations presented within this report are drawn from research and analysis commissioned bythe Office of Small and Medium Enterprises, Public Works Government Services Canada, and independently conducted andprepared by MarketWorks Ltd. MarketWorks Ltd. (including its directors or employees or entity associated with MarketWorks Ltd.)accepts no liability or responsibility resulting directly or indirectly from the disclosure of the report findings to any third partyand/or the reliance, either in whole or in part, by any third party on the report. MarketWorks Ltd.’s opinions, analysis, andrecommendations relate to prevailing conditions and information available at the time of printing. The sole purpose and use ofthis report is to provide guidance to small and medium enterprises in the information technology field, and to assist inunderstanding government’s current and transformative landscape, and better navigate it as a result, and no express or impliedwarranty is provided. Any use or reference to any part of this report must cite MarketWorks Ltd.
  3. 3. eXeCUTIVe SUMMaryThe Government of Canada has embarked upon a modernization initiative designed to reduceoperational costs and upgrade its aging technical infrastructure. As part of this initiative, thegovernment created Shared Services Canada (SSC), an organization that will consolidate and managethe technical infrastructure that supports 43 government departments. This new information technology(IT) architecture will result in process and cost efficiencies that will have a direct impact on thegovernment’s bottom line.Inevitably, the modernization project has disrupted a number of stakeholder groups, both inside andoutside government. Not only has it impacted the departments whose IT framework is beingtransitioned to SSC, but it has also reverberated up the supply chain that provides government with ITsolutions. Perhaps most impacted within this supply chain are small and medium enterprises (SMEs)who have come to depend on government contracts and procurement agreements that are modelledon yesterday’s framework.In order to prosper within the new IT environment, many SMEs will have to expand their serviceportfolio and modify their approach to business development and relationship management.Fortunately, government is committed to helping them adapt to, and succeed in, the new framework byproviding guidance, resources and support. SMEs are encouraged to participate in government-industry engagement events, take advantage of funding programs, review all publicly availableinformation related to the modernization initiative and keep abreast of trends and advancements in theIT space. In doing so, they will develop the understanding, the relationships and the expertise requiredto effectively partner with government and support the modernization program.As they orient themselves to their new environment and make the necessary changes to theirrespective business models, SMEs should continue to pursue business opportunities within the federalgovernment. Department executives are still responsible for IT projects and services independent ofSSC, and they require industry support to maintain, optimize and modernize their portfolio-specificoperations. SMEs are also encouraged to build relationships with organizations outside of the 43partner accounts that have transitioned their IT infrastructure to SSC. In supporting these organizations,SMEs will gain valuable experience, develop new areas of expertise, build strategic relationships andcreate new revenue opportunities.More than ever before, government seeks to work with innovative, proactive, self-sufficient IT solutionsproviders. Government is committed to helping SMEs succeed, to their mutual benefit; however, theonus is on SMEs to seek out and make use of the available information, resources and opportunities tobetter understand the government’s objectives. When they do, they will demonstrate their value andwill elevate themselves from IT provider to IT partner. • w w w . m a r k e t - w o r k s . c a •
  4. 4. TaBLe oF CoNTeNTSStudy Overview -----------------------------------------------------------------1 Objective ----------------------------------------------------------------2 Methodology -----------------------------------------------------------2Findings --------------------------------------------------------------------------3Recommendations for SMEs ------------------------------------------------7Recommendations for PWGSC -------------------------------------------10Appendices ---------------------------------------------------------------------12 Appendix A - Footnotes --------------------------------------------12 Appendix B - Government Engagement-----------------------14 • w w w . m a r k e t - w o r k s . c a •
  5. 5. STUdy oVerVIeWOver the past several decades, the Government of Canada has adopted new technologies to betterserve Canadians. Indeed, Canada continues to be among the global leaders in leveraging technology tofacilitate interdepartmental collaboration, secure sensitive information and offer accessible services toits citizen stakeholders.However, as it ages, the existing information technology (IT) infrastructure has begun to strain under thepressure of new demands exacted by over 100 government departments and millions of Canadianscoast to coast. No longer is it efficient or fiscally prudent to maintain disparate systems performingduplicate tasks. Not only is it wasteful in the context of a growing deficit, but it can also jeopardizeCanadians’ access to reliable government services—or, worse still, the security of their personalinformation. According to Corinne Charette, Chief Information Officer (CIO) of the Government ofCanada, “it became clear that renewing our IT environment ‘as is’ would simply not be feasible. It wouldpresent an important funding impact… and would most certainly not represent good value for moneyfor the taxpayer.”1 To reduce operational costs, modernize its aging IT infrastructure and enhance service delivery, the Government of Canada announced the formation of Shared Services Canada (SSC) on August 4, 2011. SSC will enable IT infrastructure improvements that will underpin modern programs and the delivery of citizen- centric services that are more secure, Figure A: SSC Mandate: IT Infrastructure Renewal more accessible and more cost effective. In all, SSC will consolidate more than100 email systems, 300 data centres and 3,000 networks across 43 of the government’s most IT-intensivedepartments.The creation of SSC—coupled with the cost containment measures of the Deficit Reduction Action Plan(DRAP)2—will help the Government of Canada balance the budget by 2014-2015. What’s more, byrelieving them of the burden of maintaining their own network and data centre infrastructure, it willallow key departments to focus on modernizing department- or program-specific IT services that theywill continue to manage.Now over a year old, SSC is rounding into shape. The organization is in the process of learning abouttheir new partner accounts as they assume responsibility for a growing number of systems, platformsand applications. As part of this process, SSC has begun to group similar portfolios and infrastructurerequirements with a view to achieving greater efficiencies—both in terms of costs and effort. They arealso developing policies and protocols to support their mandate and the thousands of IT infrastructurecomponents they now oversee.Change of this magnitude is inevitably—and purposefully—disruptive. Not only are SSC and dozens ofgovernment departments struggling with how to seamlessly transition and consolidate disparate systems,but hundreds of IT service providers are being forced to adapt to a new business reality almost overnight.Their biggest—and sometimes only—customer has become financially constrained as government hashad to freeze projects, reduce staff and transition resources as part of the modernization initiative. What’smore, the relationships and procurement channels on which they have built their business have changed.This is an unfortunate and unavoidable consequence of the restructuring. • w w w . m a r k e t - w o r k s . c a • page 1
  6. 6. The Government of Canada recognizes the critical importance of these IT service companies, not only interms of providing specialized products and expertise to government departments, but also in terms ofthe overall health of the IT industry and the larger economy. The continued success of government-focused small and medium IT service providers (SMEs) within the modernization framework is especiallyvital and of paramount concern.STUdy oBjeCTIVeThe office of Small and Medium enterprises and Strategic engagement (oSMe-Se), a division of PublicWorks and Government Services Canada (PWGSC), commissioned this study from MarketWorks to: • Explore the impacts on small and medium companies in the Information Technology field in the context of restructuring initiatives across government; • Address recent questions from small and medium IT companies regarding their potential business opportunities with the federal government as a result of these initiatives; and • Provide feedback on how SMEs can play a role within the new procurement framework.STUdy MeTHodoLoGyIn collecting information and compiling this study, MarketWorks relied on primary and secondaryresearch methods.PrIMary reSearCH • Consulted with resellers and vendors in the IT field to assess: how they have fared over the past year since the creation of SSC; how they have been impacted by the modernization initiative; and how they plan to adapt to the new IT framework within government. • Met with Change Agents3 (officials within organizations responsible for driving the modernization agenda) to determine their vision for the modernization project and the roadmaps and processes they have developed. • Met with Stewards4 (officials within organizations responsible for facilitating government-industry Sellers Buyers engagement) to determine what resources and Figure B: The Canadian Federal IT Community programs are available to assist IT SMEs to innovate and grow their business. • Met with Clients5 (officials within the 43 departments that have transitioned IT infrastructure to SSC, as well as those in lesser-impacted departments and arm’s-length organizations) to seek the perspective of those being directly impacted by the modernization effort, as it relates to SME relations and procurement.page 2 • w w w . m a r k e t - w o r k s . c a •
  7. 7. SeCoNdary reSearCH • Researched all organizations that contributed to the study, their documented plans and priorities, and other relevant material available online. • Reviewed publicly available studies and documents, including the Data Centre Feasibility Study6 (Track 2), the Jenkins Report7 and the SSC Report on Plans & Priorities.8 • Attended industry sessions, including the Industry Engagement Day for the Email Transformation Initiative hosted by SSC and PWGSC, and a CIO Breakfast with Corinne Charette of Treasury Board Secretariat on Software Transformation hosted by the Information Technology Association of Canada (ITAC). • Attended a Public Sector Business Committee meeting hosted by ITAC and an IT Infrastructure Roundtable discussion regarding SSC’s plans hosted by the Canadian Advanced Technology Alliance (CATA).FINdINGSCHaNGe aGeNTS Those responsible for driving the modernization agenda suggest that small and medium companies in the IT field currently selling into departments will need to change how they do business with government in order to prosper. Many of these companies rely on business models that support yesterday’s framework. Government is moving away from the transaction-based supply chain IT to which resellers have grown accustomed. They now seek creative and innovative solutions providers in all corners of the country that can support their modernization requirements. Truly innovative companies have developed a broad solutions portfolio by working with a diverse clientele on many different projects. It is these types of companies that government will seek to partner with moving forward, and that are most likely to succeed. Change Agents who collaborated with MarketWorks on this study point out that IT resellers who wish to work with government must also be flexible. The transformation is a massive undertaking, and procurement systems will change accordingly. It will take time for things to stabilize. That said, there is currently plenty of opportunity both within and outside of SSC. Of the $4.75B that government spends each year on IT, more than half is still controlled by CIOs at a department level. Departments outside Figure C: SSC’s Organizational Structure: Portfolio Breakdown of SSC that are federally appropriated have been mandated under the DRAP • w w w . m a r k e t - w o r k s . c a • page 3
  8. 8. to streamline, optimize and modernize their operations, and IT companies can help department executives with their portfolio-specific challenges. Change Agents also recommend that SMEs focus on niche areas of IT, possibly supporting the Science Portfolio with vertical solutions that would enhance their operations value (see Figure C).STeWardS To date, the government’s IT buying behaviours have stunted the market somewhat. Lengthy federal sales cycles and intensive IT demands have distorted the federal IT community and have inhibited some departments and suppliers from keeping pace with technology. However, the modernization initiative should not come as a surprise to SMEs, given that government has been signalling their intent to change for some time. Those that will be the most challenged have not adapted their business models to recent reforms. Government is committed to helping SMEs succeed in the new business environment by providing resources and support. By organizing industry engagement sessions on specific solution opportunities, collaborating with industry associations and commissioning reports like this, the government will assist IT companies in navigating the new landscape. The onus is on the supplier community to seek out and make use of the available resources. Just as importantly, government is committed to working with its own departments and organizations to help them understand how their respective supplier collectives can support the transition. OSME-SE, the strategic engagement division within PWGSC, is working with impacted departments to ensure they are familiar with existing procurement systems and supplier communities. Government also supports SMEs through programs that counsel, guide, develop, fund, test, and adopt innovative IT solutions. Programs such as the Canadian Innovation and Commercialization Program (CICP)9 and the Industrial Research Assistance Program (IRAP)10 provide IT suppliers with the support and resources required to transition and grow.GoVerNMeNT aCCoUNTSWithin the 43 partner departments Just as the IT supplier community is struggling to adapt to recent and ongoing changes, so too are the government departments most impacted by the modernization initiative. Complicating things further is the fact that the scope of services provided by SSC continues to expand. SSC now offers optional, peripheral services to support the infrastructure projects that remain their core area of focus. Partner departments now have the option to transition other projects and programs to SSC, if it makes sense to do so. Nevertheless, there continues to be opportunities for SMEs within impacted partner departments— including within the Canada Revenue Agency (CRA) who collaborated with MarketWorks on this study. While many of their IT employees have transitioned to SSC, CRA has retained a complement of staff responsible for driving program-specific IT projects. They continue to seek support from SMEs to provide and service desktop applications, business applications and hardware devices for projects that are outside of SSC’s mandate. CRA suggests that SMEs seek to assist SSC with their transition plans. It can take up to two years to architect and deploy a complex software solution, and suppliers may be able to add value to the process—particularly if they helped develop the current IT infrastructure for government.page 4 • w w w . m a r k e t - w o r k s . c a •
  9. 9. With so many unknowns, and new questions and challenges cropping up every day, stability is a long way off. Officials within impacted departments and organizations recommend that SMEs need to “keep their ear to the ground” and stay abreast of new developments by becoming better informed and connected.outside the 43 partner departments By their very nature, agencies, Non-governmental Organizations (NGOs) and Crown Corporations— like the Bank of Canada who collaborated with MarketWorks on this study—are a step removed from the modernization initiative. However, like government departments, they are keen to work with the supplier community, and they have high expectations when it comes to a potential supplier’s preparedness, level of expertise and capability to help them achieve their mandate. These arm’s-length government organizations must adhere to the DRAP and must modernize their IT operations. While there are currently no plans to transition their IT infrastructure to SSC, they are innovating in the same spirit—and may require comparatively more third-party support given that they continue to maintain their own IT infrastructure. It is possible that, at some point in the future, components of their IT infrastructure may be absorbed into SSC (excluding certain organizations or functions that must remain outside of direct government control). This possibility could become more plausible and could be accelerated if SMEs do not help these organizations to sufficiently modernize their IT infrastructure.SUPPLIer CoMMUNITyIT resellers The majority of federal IT providers are well-established companies that have been working with the Government of Canada for 10 years or longer. Typically, they are very dependent on government contracts, with many deriving more than half of their revenues from government IT sales. These federal IT providers have been significantly impacted by the modernization initiative to date. The SMEs that collaborated with MarketWorks on this study revealed that business is down 10% to 25% on average, and the vast majority of companies surveyed are nearer the higher end of this range. Government business is down much more than anticipated, owing to budget cuts and workforce layoffs resulting from the DRAP. Nearly all of the federal SMEs surveyed stated that they are commodity focused, with more than 80% of their government revenues coming from IT hardware sales. While they work closely with departmental IT staff, they typically have not developed strong relationships with department executives. As a result, most are not well positioned to support an organization-wide IT restructuring. The majority of SMEs surveyed stated that they are being negatively impacted by the government’s modernization initiative, or that they believe they will be negatively impacted in one to three years’ time. Most plan to respond by seeking new opportunities outside of government, while others intend to grow their service portfolio, find new government customers and expand their hardware offerings. Interestingly, few SMEs stated their intent to increase their level of knowledge through training, education and advanced certifications. Of the private sector SMEs that MarketWorks consulted, most have the expertise that government requires, but few see value in pursuing government business. They view federal government business as complex, hardware-centric, low margin and offering little opportunity to sell innovative IT solutions. • w w w . m a r k e t - w o r k s . c a • page 5
  10. 10. Technology Manufacturers and distributors Technology manufacturers and distributors are important players in the government’s IT supply chain because they provide SMEs with logistics and solution delivery support. Like SMEs, they have seen a decline in revenues from government IT sales over the past year, and they are revisiting their channel strategies and channel partnerships as a result. Manufacturers and distributors surveyed by MarketWorks revealed that they are not convinced their existing sales channels—that is, the SMEs that resell their hardware—are properly equipped to support government’s modernization requirements. As a result, many are taking a “wait and see” approach, and will not finalize their channel plans until they have a clear indication of where government is headed. Others are looking to larger consulting companies like Deloitte, IBM and PricewaterhouseCoopers for development support, knowing that government has a history of seeking guidance from these firms and thus surmising that developing these relationships may improve their position. Most manufacturers had not considered working with private sector IT providers to support the government’s new requirements. While these providers certainly have the expertise and service portfolio to support the modernization program, they are not currently authorized as suppliers on the National Master Standing Offer (NMSO)11—nor have they shown an interest in pursuing government business.page 6 • w w w . m a r k e t - w o r k s . c a •
  11. 11. reCoMMeNdaTIoNS For SMes 12 13 14 Figure D: How To Navigate Change and Align To OpportunityGeT INForMed The government did not transform overnight. It has taken several years of audits, reports, assessments, standing committees, industry engagements and trials to achieve the current state. In the spirit of transparency and open access, all of these resources are available to the federal IT community. SMEs who aspire to work with government clients within the new modernization framework are encouraged to first get informed. Only once they truly understand the government’s challenges, decisions and go-forward strategies can they effectively support their clients’ IT requirements. This analysis will also help SMEs identify gaps in their service portfolios, which they can fill through training or by partnering with another provider. This is a time-intensive but critical step that will help SMEs elevate themselves from IT provider to IT partner. The supplier market is now much more competitive, and government clients are expecting more from SMEs than ever before. Providers who invest time up front will demonstrate their preparedness and, more importantly, their value as a partner.CoNNeCT aNd CoLLaBoraTe While government is driving the modernization initiative, they rely heavily on input from the industry to identify optimal and innovative solutions and the most pragmatic approach. Per the Jenkins report (Special Report on Procurement - Innovation Canada: A Call to Action), “procurement can be important in promoting business innovation because it is a complementary demand-pull instrument with greater direct impact than supply-push programs.” Indeed, government is leveraging the modernization agenda to engage with the supplier community earlier, more frequently and more openly than ever before to make them aware of their plans, • w w w . m a r k e t - w o r k s . c a • page 7
  12. 12. priorities and direction. Ultimately, everyone benefits as better collaboration results in a more seamless execution and a higher-quality outcome. SMEs that succeed in the new business environment will take advantage of the following networking and information sharing opportunities:Industry engagement days Moving forward, government will host Industry Engagement Days before tendering major IT projects. These half-day sessions will be the first phase of the procurement process, and will be a forum where government can share their plans to re-engineer, consolidate and standardize specific IT systems. Industry Engagement Days are posted on MERX, and all interested IT suppliers and associations are invited to attend.associations Government works closely with many industry associations, including but not limited to: the Canadian Advanced Technology Alliance (CATA); the Canadian Information Technology Providers Association (CITPA); and the Information Technology Association of Canada (ITAC). In the interest of transparency and collaboration, government participates regularly in meetings and events hosted by these and other associations. Most of these associations have committees focused on public sector development through which SMEs can stay connected to government.roundtables Industry roundtables, like the quarterly IT Infrastructure Roundtable (ITIR), afford the opportunity for regular touch points and an open dialogue. These events allow government to keep abreast of the most innovative solutions and to seek guidance from the industry in order to validate their approach and make necessary adjustments. SMEs that participate in these roundtables will be on the front- lines of government engagement.Portfolio discussions Collaborating with government doesn’t have to happen only during planned events. SMEs are encouraged to reach out directly and regularly to those responsible for managing the various portfolios within SSC to learn more about their plans and priorities and to explore ways in which they can support specific components of the consolidated IT infrastructure.SUPPorT ModerNIZaTIoN The government’s modernization project is moving quickly and picking up steam. There are multiple ways in which federal IT providers can actively support the modernization plans and develop new business opportunities.Partner to align with SSC opportunities As government begins to seek input and guidance from larger consulting companies, shrewd SMEs will improve their position by building relationships and alliances with them. Despite their expansive solution portfolio, these consulting companies will require third-party resources to support the government’s IT requirements, and the current provider community is more knowledgeable when it comes to these accounts.page 8 • w w w . m a r k e t - w o r k s . c a •
  13. 13. Support the CIos While departments have transitioned much of their IT infrastructure to SSC, many projects and services remain the responsibility of individual departments. The CIOs who make IT decisions to support their respective lines of business control, collectively, a multi-billion dollar budget. By supporting and modernizing these projects, SMEs will ensure that there is no need for CIOs to engage SSC for help.develop Business outside SSC accounts While they do not yet have to transition their IT infrastructure to SSC, organizations outside of the 43 partner accounts have been mandated to modernize under the DRAP. In fact, these organizations can voluntarily engage SSC, which has been granted permission to take on additional clients outside of the 43 accounts designated by the Order of Council. By supporting these organizations and assisting them in achieving their modernization objectives, SMEs will ensure that they do not seek outside help.Innovate Portfolio SMEs are encouraged to expand their service offering by pursuing training and education opportunities and by obtaining advanced professional certifications. Not only will this better position them to support SSC and their service portfolios, but it will also improve their ability to support department-specific solutions. Specialized solutions that meet a department’s unique needs are less likely to be absorbed into a “whole-of-government” approach down the road. (See Appendix for funding programs and stewardship information that can provide SMEs with financial support and guidance to help them innovate strategically and cost effectively.)MaINTaIN aLIGNMeNT More than ever before, government seeks to partner with innovative, proactive, self-sufficient solutions providers that can help them achieve their IT objectives. SMEs must become more connected to government and stay connected through associations, industry events and the Stewards who are responsible for facilitating government-industry engagement. Government will rely on suppliers to keep abreast of solution trends in order to ensure that technology doesn’t outpace procurement processes as it has in the past. In short, government is looking to partner with a new breed of SME, and those who take a more active and proactive approach will be best positioned to succeed. • w w w . m a r k e t - w o r k s . c a • page 9
  14. 14. reCoMMeNdaTIoNS For PWGSC The study findings have enabled MarketWorks to develop recommendations, at the request of PWGSC, to improve engagement and information sharing between internal and external stakeholders impacted by the modernization initiative. The successful execution of the strategies and tactics outlined below will facilitate government-industry engagement, as it relates to IT reform.reCoMMeNdaTIoN # 1:Improve communication with SMes 1. Host a government-industry town hall. This annual event would bridge the communication gap by sharing the government’s “big picture” modernization strategy—including roadmaps, key milestones and execution plans—with SMEs. This interactive session would foster innovation, facilitate alignment and motivate new and existing solution providers to support government’s plans and priorities. 2. Incorporate a “Government Modernization” section within BuyandSell.gc.ca. Create a page on BuyandSell.gc.ca to aggregate information related to the modernization initiative. By making it easy for SMEs to access key documents and resources—including, but not limited to, presentations, reports, studies, funding mechanisms and information about government-industry events—government will help them stay connected to the process and better navigate the new framework. Consider incorporating an RSS feed into the site to enable real-time updates. Note that the site would have to be updated regularly for it to be of any sustained value to SMEs. 3. Modify communications strategy. Government should simplify its approach when communicating with SMEs and package information in succinct, digestible communiqués. Deliver less information more frequently to ensure clarity and to maintain close engagement. Share information through new channels and amplify existing channels to reach a broader audience. 4. Offer training. PWGSC should consider offering a class to assist IT-focused SMEs, as an extension of the basic and more general course that teaches suppliers how to do business with the federal government. This advanced class could focus on helping IT solutions providers better navigate and grow within the new modernization framework.reCoMMeNdaTIoN # 2:develop closer, more strategic relationships with distributors 1. Leverage distributors as a communications channel. Working with and through distributors, government can connect with virtually every SME across Canada. By leveraging distributors’ communications vehicles and attending their events, government will be able to amplify their message and reach SMEs in every corner of the country. 2. Consult more regularly with distributors. The Government will benefit from consulting more regularly and more strategically with distributors. They will prove to be insightful advisors, given their procurement knowledge and their close relationship with SMEs. MarketWorks recommends that government host a quarterly or semi-annual roundtable to collaborate with distributors, to explore ways to more effectively engage SMEs and help them succeed within the new IT framework.page 10 • w w w . m a r k e t - w o r k s . c a •
  15. 15. reCoMMeNdaTIoN # 3:adopt new mechanisms to support impacted departments in their IT transformation 1. Develop an intradepartmental network. MarketWorks recommends that PWGSC work with OPO and SSC to create a formal committee to facilitate intradepartmental collaboration and the sharing of information and insights related to the transformation efforts. This will ensure a more cohesive and consistent approach to communicating IT modernization plans and priorities across impacted organizations. 2. Host education sessions. By ensuring that the 43 partner departments are comfortable managing the IT systems and services that remain in their control, OSME will reduce the likelihood that these departments will seek assistance from SSC. As a result, SMEs will stand a better chance of maintaining current business and winning new contracts. 3. Re-evaluate in one year. OSME should reassess the state of government-industry relations in one year’s time. This will allow government to benchmark against the findings of this study, by determining where enhancements have been made and how government-industry engagement could be further improved. • w w w . m a r k e t - w o r k s . c a • page 11
  16. 16. aPPeNdIX a - FooTNoTeS1 GTEC 2011. Corinne Charette, Chief Information Officer, Government of Canada, Keynote Speech.http://www.tbs-sct.gc.ca/cio-dpi/gtec/ks-do-eng.asp. Accessed on September 20, 2012.2 Deficit Reduction Action Plan (DRAP): Office of the Information Commissioner of Canada. 2012.http://www.oic-ci.gc.ca/eng/abu-ans_cor-inf-inf-cor_drap-pard.aspx. Accessed on September 20, 2012.3 Change Agents: Federal government organizations that develop the plans and priorities related to ITmodernization and related transformation initiatives. Such as: officials within Shared Services Canada(SSC), the Acquisitions Branch of Public Works and Government Services Canada (PWGSC) and theChief Information Officer Branch of Treasury Board Secretariat (TBS).4 Stewards: Federal government organizations that help those impacted by modernization to engage,align, navigate, and grow amid transformation. Examples: Office of Small and Medium Enterprises(OSME) in Public Works Government Services Canada (PWGSC), and Office of the ProcurementOmbudsman (OPO), and the Industrial Research Assistance Program (IRAP) in National ResearchCouncil of Canada (NRCC).5 Clients: Departments, agencies and Crown Corporations within the Government of Canada that areimpacted by the IT modernization agenda, and related transformation initiatives. Examples: the Bank ofCanada, Canada Revenue Agency (CRA) and Canada Mortgage and Housing Corporation (CMHC)6 Data Centre Feasibility Study (Track 2): PricewaterhouseCoopers. 2011. http://www.tpsgc-pwgsc.gc.ca/services/efcd-dcfs/documents/volet2-track2-eng.pdf. Accessed on September 20, 2012.7 The Jenkins Report: (Innovation Canada: A Call To Action. Review of Federal Support to Research andDevelopment – Expert Panel Report). Industry Canada. 2011. http://rd-review.ca/eic/site/033.nsf/vwapj/R-D_InnovationCanada_Final-eng.pdf/$FILE/R-D_InnovationCanada_Final-eng.pdf. Accessed on: September 20, 2012.8 Report on Plans and Priorities: Shared Services Canada (SSC). 2012-2013. http://www.tbs-sct.gc.ca/rpp/2012-2013/inst/gss/gss-eng.pdf. Accessed on September 20, 2012.9 Canadian Innovation and Commercialization Program (CICP): Public Works Government ServicesCanada (PWGSC). 2012. https://buyandsell.gc.ca/initiatives-and-programs/canadian-innovation-commercialization-program-cicp/overview-of-cicp. Accessed on September 20, 2012.10 Industrial Research Assistance Program (IRAP): National Research Council Canada (NRCC). 2012.http://www.nrc-cnrc.gc.ca/eng/irap/index.html. Accessed on September 20, 2012.11 National Master Standing Offer (NMSO): An NMSO is a convenient method of supply commonlyused by departments and/or agencies that are repeatedly ordering the same goods or services. Forfurther information please reference: https://buyandsell.gc.ca/for-businesses/the-procurement-process/standing-offers. Accessed on September 20, 2012.12 Auditor General Report on Aging Information Technology Systems: Office of the Auditor Generalof Canada. 2010 Spring Report. http://www.oag-bvg.gc.ca/internet/docs/parl_oag_201004_01_e.pdf.Accessed on September 20, 2012.page 12 • w w w . m a r k e t - w o r k s . c a •
  17. 17. 13 Report on the State of Aging IT Across The Government of Canada: Treasury Board of CanadaSecretariat (TBS). 2012. http://www.tbs-sct.gc.ca/it-ti/rsai-revt/rsai-revttb-eng.asp. Accessed onSeptember 20, 2012.14 Reports on Plans and Priorities (RPP): Treasury Board of Canada Secretariat (TBS). 2008.http://www.tbs-sct.gc.ca/rpp/index-eng.asp. Accessed on September 20, 2012. • w w w . m a r k e t - w o r k s . c a • page 13
  18. 18. aPPeNdIX B - GoVerNMeNT eNGaGeMeNTTyPE ORGANIzATION PARTICIPANT TITLE DATE PuRPOSECHANGE Shared Services Canada Dan Murphy Consultant 2012-04-26 To identify how SSC willAGENTS operate, transform departments, transition service delivery and engage suppliers while supporting SMEs. Public Works & John Penhale Director 2012-05-03 To learn how the Government Services procurement landscape is Canada, Procurement going to adapt to the Strategy and Performance modernization agenda. Management Directorate Shared Services Canada Grant Westcott Chief Operating 2012-05-08 To identify how SSC will Officer operate, transform departments, transition service Benoît Long Senior Assistant delivery and engage suppliers Deputy Minister, while supporting SMEs. Transformation, Service Strategy and Design Erin Cimino Advisor to the Chief Operating Officer Public Works & Normand Masse Director General 2012-05-16 To learn how the Government Services procurement landscape is Canada, Services and Levent Ozmutlu Senior Director going to adapt to the Technology Acquisition modernization agenda. Management Sector Shared Services Canada Jerome Thauvette Email 2012-07-12 To identify how SSC will Consolidation operate, transform departments, transition service delivery and engage suppliers while supporting SMEs. Treasury Board of Canada Corinne Charette Chief Information 2012-07-16 To better understand the Secretariat, CIO Branch Officer holistic vision behind departmental transformation, Pierre Boucher Deputy Chief and how TBS sees SSC and Information Officer others working with SMEs going forward. Public Works & Vicki Ghadban Director General of 2012-08-07 To learn about this new role Government Services Transformation inside the Acquisitions Canada, Business Branch, and discuss plans and Management Section priorities around procurement reform. page 14 • w w w . m a r k e t - w o r k s . c a •
  19. 19. TyPE ORGANIzATION PARTICIPANT TITLE DATE PuRPOSESTEWARDS Office of the Procurement Frank Brunetta Procurement 2012-04-26 To gain insight into the new Ombudsman Ombudsman cases brought forth currently that are a direct result of the Lorenzo Ieraci Deputy modernization efforts. To also Procurement identify how they see this Ombudsman activity changing in the coming year. National Research Council Dr. Manfred Hubert A/Executive 2012-07-10 To learn about the IRAP Canada, Industrial Director program and identify if this Research Assistance program can helps SMEs Program transition and align to the new IT agenda. Public Works & Shereen Miller Director General 2012-08-07 To learn how SMEs are Government Services reacting to date, how many Canada, Office of Small have engaged their office, and Medium Enterprise and where their concerns lie in the face of IT Modernization.CLIENTS Canada Mortgage & Dorène Hartling Director 2012-07-13 To understand how a Crown Housing Corporation Corporation is supporting modernization mandates and to also gain insight into their plans and priorities for their internal services going forward. Bank of Canada Sylvain Chalut Chief, Information 2012-08-13 To understand how a Crown Technology Corporation is supporting Services modernization mandates and to also gain insight into their plans and priorities for their internal services going forward. Canada Revenue Agency, Debra Lahey Assistant Director 2012-08-20 To understand how a line IT Contracting Section department is supporting modernization mandates and to also gain insight into their plans and priorities for their internal services going forward. • w w w . m a r k e t - w o r k s . c a • page 15
  20. 20. about MarketWorks Ltd.MarketWorks is a marketing consulting firm focused on the Canadian public sector.We work with clients to bridge the government-industry gap to facilitate innovationand collaboration, and to improve delivery of public services. We are committed,responsive and passionate when it comes to helping government more effectively andefficiently serve Canadians coast to coast.For More INForMaTIoN CoNTaCTKelly HutchinsonPresident, MarketWorks1 Rideau Street, Suite 700Ottawa, ON, K1N 8S7Tel: (613) 731-9328kelly@market-works.capage 16 • w w w . m a r k e t - w o r k s . c a •
  21. 21. PUBLIC SECTOR MARKET DEVELOPMENTpage 18 • w w w . m a r k e t - w o r k s . c a •

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