Dusseldorf Project Offers Lessons For eProcurement and eTendering, According to IDC
MILAN – FEBRUARY 20, 2003 – According to an IDC case study, the significant market potential of public procurement has traditionally been hindered by delays, asymmetry of information, and unnecessary spending.
Hidden opportunities will be revealed by reducing the price of items, curtailing transaction costs, and increasing transparency, even if slightly, on every purchase. eProcurement and etendering are expected to be the key sources of these advantages for years to come.
The municipality of Dusseldorf's etendering project is representative of how several public sector agencies are investing in IT solutions to modernize their procurement processes. The achievements and benefits associated with the Dusseldorf etendering solution are notable for:
Creativity and comprehensiveness of the strategic approach: IT applications automate both the negotiation platform and back office activities; thus creating an integrated and secure system
Rapid and relatively low cost of the implementation: Less than one year between the launch of the idea and the publication of the first electronic tender
Tangible productivity benefits: Significant reduction of processing time
Forward-looking strategy: Opportunity to integrate the system with partner authorities
To make this type of project successful, public sector organizations should think of etendering programs as strategic investments, and start by reviewing the full purchasing processes, launching the modernization on a small scale, concluding the pilot phase rapidly and extending the solution to many users. They must also choose IT vendors that support them with technological know-how and industry knowledge and that are able to offer a comprehensive solution including software and services.
"The Dusseldorf project provides some interesting indications on the consolidation of eprocurement trends in the public sector. Local government agencies are starting to consider eprocurement as an important part of their IT strategy, which represents a good market opportunity for suppliers. However, business and regulatory requirements, specific to the public sector vertical, remain very important and require vendors to offer industry-specific solutions supported by thorough and interoperable security technologies," said Massimiliano Claps, research analyst for the European IT Opportunity for the Public Sector area in IDC's European Vertical Markets group.
IDC's case study Managing Tenders in Dusseldorf with Administration Intelligence AG's Solution (IDC #PP01K) is available for purchase from your local IDC office or from http://www.idc.com.
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