The document discusses IT governance for electronic public procurement. The European Commission aims to create a single pan-European public procurement market through interoperability and generalization standards. Individual contracting authorities are responsible for developing their own e-procurement plans, but guidance is needed to avoid failures and ensure plans align with the overall objective. Adopting the ISO/IEC 38500:2008 standard for IT governance can help contracting authorities develop effective plans, reduce costs and implementation times, and support the generalization of e-procurement across Europe.

1. IT Governace for e‐procurement
Applicability of the norm ISO/IEC 38500:2008 to reach
Applicability of the norm ISO/IEC 38500:2008 to reach
the interoperability and generalization
May 25th, 2011
Manuel J. Caño Gómez Antonio Folgueras Marcos
Mail: manuelj.canno@gmail.com Professor of the Informatics Department in the Carlos III University
Blog: www.contratacion‐publica‐electronica.es
afolguer@inf.uc3m.es
Twitter: @econtratacion
Twitter: @econtratacion
May 25th 2011 IT Governance for electronic public procurement 1

2. Agenda
1. Introduction
2. General Objective from European Commission
General Objective from European Commission
3. Individual Plans on each contracting authority
4. Challenges: interoperability and generalization
Challenges: interoperability and generalization
5. The norm ISO/IEC 38500:2008
6.
6 Some figures
Some figures
7. Conclusions
May 25th 2011 IT Governance for electronic public procurement 2

3. Introduction
Key messages of the presentation :
– General objective from European Comission a single pan
General objective from European Comission: a single pan
european public procurement market.
• Manchester Declaration 2005
• Means to get these general objective are interoperability and
generalization
– Objectives without plans are desires
Objectives without plans are desires
– Individual Plans are responsability of each contracting authority
• Eprocurement projects are complex enough to look for help in the IT
industry to fight against general failures (Standish group report)
i d fi h i l f il ( di h )
• ISO/IEC 38500:2008 can be a good option.
– Conclusion: How can we link individual plans and general objective to
p g j
success?
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4. General Objective
j
• A single paneuropean public procurement
interoperable and affordable market
• Key enabler: Interoperability and standards
Key enabler: Interoperability and standards
(PEPPOL, CEN BII, STORK)
• K di
Key driver: Generalization.
G li ti
– All the contracting authorities (with good and cheap
implementations).
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5. Individual Plans
• Plans are responsability on each public administration.
• B t
But …
• Do they (public administrations) need epp?
• Is epp mandatory ?
Is epp mandatory ?
• What is an epp project about?
• How much does it cost?
• What are the main functionality they must look for?
• And overall. How they are going to govern and manage IT
to reach the general objective: interoperability and
to reach the general objective interoperability and
generalization…..
– Standish group report summary
Standish group report summary…
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6. Challenges
g
• Interoperability and standars: on its way. Centralized and managed by
European Commission
European Commission
• What’s next: Generalization: Who is in charge? What are the main goals?
Is epp mandatory? So what are the main whys?
– Understanding the public procurement system (Leavitt 1965):
• People : with electronic format culture.
• Procedures: different to the existing ones.
ocedu es d e e t to t e e st g o es
• Structures: Simplication with electronic means
• Technologies: from paper to electronic format
– Identifying obstacles and barriers (Oxford Institute)
Identifying obstacles and barriers (Oxford Institute)
– Generating an holistic approach to the big Transformation
– Being supported by IT Governance at the top executive level on each public
administration (ISO/IEC 38500:2008)
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7. ISO/IEC 38500:2008
• The norm comprises definitions, principles and a model. It sets out six
p c p es o good go e a ce t at de e app op ate be a o to
principles for good IT governance that define appropriate behavior to
guide decision making:
– Responsibility ; who is in charge, with what resources, when it must be working
Responsibility ; who is in charge with what resources when it must be working
– Strategy; what are the priorities what is the right way (for each of us)
– Acquisition; why we need to buy anything, who, what and when
– Performance; we are able to follow the normal buying process
– Conformance; applying standards, and interoperability issues
– Human behavior. Having in mind all the people (interests, emotions..) involved
Human behavior. Having in mind all the people (interests, emotions..) involved
from the beginning.
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8. ISO/IEC 38500:2008
• The model for IT governance ISO / IEC 38500 defines three fundamental tasks of
government: Evaluate, Direct and, Monitor
which are respectively applied
to proposals for the use of IT,
projects implementation of
these proposals, and
operations that depend on it.
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9. Some figures for costs
g
• For Spain (numbers are simulated from 2009 EC statistics)
– Theoric Savings with electronic public procurement (2010)
•
•
Public Procurement volume: (15% GDP)……………………
Public Procurement volume: (15% GDP)
5 % Better price (concurrency) and potential savings: ……
150.000.000.000 €
150 000 000 000 €
7.500.000.000 € ↑ real data
– Cost of IT services for electronic public procurement implementation (generalization )
•
•
300 projects on general Admin (1.000.000 €): …………… 300.000.000 €
3.000 projects on regional Admin (500.000 €): ………….. 1.500.000.000 €
↓ simulation
• 5.000 projects on local Admin (100.000 €): ……………… 500.000.000 €
• Total cost implementation : …………………………………. 2.300.000.000 €
– Cost of IT services for electronic public procurement (with standish factor
Cost of IT services for electronic public procurement (with standish factor → ~ 50% overcosts)
50% overcosts)
• 50% more than theoric cost = …………………………….. 3.450.000.000 €
– Cost of IT services for electronic public procurement (with ISO 38500 → reduce overcosts )
• 25 % more than theoric cost = …………………………… 2.875.000.000 € (*)
( )
– Total theorical benefit = EPP savings – EPP costs: → ~ 4.625.000.000 €
• For Europe
– Spain represent more less 10 % of Europe GDP → ~ 46.250.000.000 €
()
(*) The cost of EPP can be seen as big costs but what are the costs of NON-EPP for our society?
g y
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10. Conclusions
• Interoperability tools and standards is an European Commission
task. It is on its way.
task It is on its way
• Generalization is a task of each contracting authority. It must be
g
given advice and coordination in orden to avoid implementation
p
failures (Standish Group report about chaos –see reasons of
failure‐).
• ISO/IEC 38500:2008 IT Governance can help to avoid such failures
and reduce time and costs from implementation.
• W
We need both (on‐time, on‐budget) in economic crisis time…. And
db h( i b d )i i ii i A d
in economic normal time too.
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11. IT Governace for e‐procurement
!! Thank you for your attention ¡¡
Manuel J. Caño Gómez
Mail: manuelj.canno@gmail.com
Blog: www.contratacion‐publica‐electronica.es
Twitter: @econtratacion
May 25th 2011 IT Governance for electronic public procurement 11