Will Laing Presentation

Report
Collaboration in ICT – A presentation to
the West Midlands
24th January 2014
Will Laing, Senior Relationship Manager – Local Government
Why collaborate at all?
Information
• £187bn public sector spend on good s and services – over 200,000 suppliers
• £40bn in CG: over 50% supplied by the Top 39 suppliers
• The £500m LG software market is dominated by 3 suppliers (70% share)
• A public sector organisation should be able to access knowledge on commercial engagements with suppliers
from across the public sector – we need to end self-defeating “commercial confidentiality”
Capability
• Leverage
• Specialist skills
• Shared services
• Improved supplier management and performance
• Driving innovation – internally and through supply chains
Efficiency
• Lower costs of procurement
• Faster and more agile
• Better outcomes on price and quality
2
Commercial Reform
Objectives
Crown Commercial Service to be operational
• Revised Governance arrangements and senior management team
• Driving Service, Savings, and Reach (e.g. Managed Service rather than “just frameworks”)
• Covering both Central Government and Wider Public Sector
• Increase “true” Spend Under Management from approximately £1Bn towards the longer term goal of £10Bn+
(SUM stated today to be £11Bn)
• Advisory as well as a Direct Commercial service (Procurement and Contract Management)
Building Capability
• Moving from approximately 600 staff today (450 GPS and 150 Efficiency Cluster) towards c1,000 by 2016/17
• Formal programme to develop the senior leadership to be a High Performing Team
• Formal recruitment hub established and showing results; significant recruitment activity
• Improved technology plan to be established and implemented
Common goods and services to be transferred
• By end 2014/15, substantial spend will have been transferred
• Four trailblazer departments leading the way with spend and people transferred into CCS
3
Commercial Reform
Crown Commercial Service - reforming the commercial landscape
Retained
departmental
commercial activities
Common but
complex
transactions –
joint working with
depts
Transfer of
additional
commercial
activities to CCS
CG & WPS
Spend &
Procurements
currently
transacted by
CCS
4
Commercial Reform
“We are creating a world leading
organisation, providing fully managed end-toend direct commercial and advisory service”
Strengthening functional
leadership and improving
commercial capability
Extending our involvement
in complex commercial
activities e.g BPO
Transferring operations to
CCS - 4 trailblazer depts
circa £5bn of spend
Developing managed
services and building world
class commercial capability
The new DNA for commercial activities
£
High
Time
spent on
value
added
activity
Managed Commercial Services delivered centrally - once on behalf of Government
Before going
to market
Developing
requirements that
shape markets and
the supply base to
Government
Procurement
Process
Simplifying process
and reducing
turnaround times &
supplier bid costs
Contract and
supplier
management
Improving contract and
supplier management
capability through
application of new
standards
Published pipelines
Av’ge turnaround times for EU
procurements now less than 100 days
(200 days in 2011)
Low
Cross Government contract review
Circa 20% of spend is now with SMEs
(baseline 6% - direct spend only)
Before
Goal
5
Commercial Reform
UNCLASSIFIED
What CCS will expect from suppliers
6
To embrace
competition
To be innovative
through proposals
for how we can
improve services
To deliver savings
for taxpayers
To provide
opportunities to
SMEs in the supply
chain
To deliver what we
are asking for as
an intelligent client
To deal effectively
with CCS as one
customer - the
Crown
To make a
reasonable but not
excessive profit
To demonstrate
high levels of
corporate
responsibility
To be transparent
through open book
accounting
Commercial Reform
Early examples of CCS in action
Digital services
Framework
Energy
Facilities
management
• Managed service provides access
to a pool of 175 agile digital
services suppliers (84% are SMEs
and 38% are new suppliers to
government).
• £2bn worth of energy procured
and delivered across the public
sector in 2012/13 with savings to
the public purse in excess of
£109m.
• New contracting model being
procured. Estimated savings over
current model in the region of 10%
to 15% (up to £350M) over the life
of the vehicle (4 years).
G- Cloud
• 4th Generation contracting vehicle in place
providing access to 1000 suppliers (84%
are SMES). £64m of spend transacted
through G-Cloud since inception in April
2012 via circa 4000 procurements.
• 63% of business by value has been won by
SMEs.
7
Commercial Reform
ICT Category Management
Governance Structure
Society of London Treasurers
London
Procurement
Strategy Board
London
Connects
ICT Cat Mgt Project
Board
GPS Delivery
Team
Camden
(Terry
Brewer)
Wireless
8
Commercial Reform
Newham
(Geoff
Connell)
Datacentres
Camden
(PMO)
Haringey
(David
Airey)
Apps
SRM
Enfield
(Tim
Kidd)
eAuctions
The National Strategy
LGA National Procurement Strategy for Local Government
• ICT one of three priority categories (construction and energy are the others)
• National category lead is Terry Brewer, Divisional Director, LB Harrow
• ICT leadership provided through SOCITM and the Local CIO Council
• A first iteration of the category strategy for ICT is with the LGA’s National Advisory Group for Procurement
(NAG4LGP)
Key Themes
• Local ownership and local leadership – each region can address its own priorities
• Technology opportunities – desktop alliance, data centre rationalisation, digital innovation in service delivery and
citizen access
• Savings – our own target is 20% of the £2.1bn spend over three-years
Operational Delivery
• Major national agreements developed in partnership between CCS, GDS and the Pro5
• CCS has a significantly expanded regional Customer Service function
• Drive as much input and influence as possible from customers
• Have defined roles for LG staff that want to get involved
9
Commercial Reform
LG Software Applications - Now
£500m + spend per year in Local Government
Councils report common issues around value, technology capability
and service support
Multiple, independent budget-driven solutions – often extending failing
agreements
A complex pattern of bespoke deployments and licensing model
creates lock-in
A complete lack of transparency and control
Huge waste and lost opportunity
10
Commercial Reform
LG Software Applications –
A Major Opportunity for 2013/14
A common procurement platform which enables access to
ALL major systems
All commodity unit costs explicit
Flexible access through direct award and further competition
A range of technology models: hosted, licensed, SAAS
A master standard SLA to enable agile deployment
Developed, owned and used by Local Government
TCO reduction? …could be up to 50%
11
Commercial Reform
Proposed Procurement Vehicles & Lot Structure
Transactional IT
Procurement System (TIPS)
Transactional portal for
COTS IT Hardware and
Software Products
IT Products, Associated
Services and Solutions
IT Products & Value Add
Services
Commodity Software
Solution Services
ERP
Finance / Accounting
1
Contract
Packaged Software & Value
Add Services
HR
CRM
Information Assurance
(Product and Services)
End User Computing
Devices
Document Management
Data Management
6
4 Lots
12
Commercial Reform
Lots
IT PASS – Framework Agreement structure
IT Products, Associated Services and Solutions (IT PASS)
Targeted
Audience
Anticipated
Suppliers
IT Product and Value
Added Services
Value Added Services
 Value Added
Resellers
 Large Account
Resellers
10 – 15 Suppliers
Packaged Software
10 – 15 Suppliers
Service
Requirement
 Wider range vendor
neutral products
 Close to the box IT
hardware related
services
 IT consumables and
accessories.
 Value-add associated
services
 Wide range vendor
neutral products
 Enterprise Software
licenses
 Implementation and
configuration services
 Value added
associated services
Framework
Access
 Further
competitions
 Further
competitions
13
Commercial Reform
Information
Assurance
 Large Account
Resellers
IT End User
Computing Devices
 End User Devices
providers
7 – 12 Suppliers
3 – 7 Suppliers
YE
S Accredited vendor

YE
S
Desktop computer
neutral IT Product
providers
 Secure destruction &
disposal
 HMG compliant facility
(List X )




bundle
Laptops,
Tablets,
Thin client,
Hybrid device
 P2P
 Further competition
 Regular eAuction
 Further competition
Contact Details
Will Laing
[email protected]
07775 561287

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