acquisitions business model business innovations and to-be model

Version 5 – July 10, 2009Slide 1

Acquisitions Business ModelBusiness Innovations and To-be Model

Version 5 – July 10 , 2009


1. Present the Acquisitions as-is business model

2. Elaborate the proposed innovations

3. Present the Acquisitions to-be business model

For the innovations to the business model:

The challengesThe proposed actionsThe benefitsThe changes to the business model

For the business model:

Description of the canvas and the components of the business model (in the annex)

Objectives

Information provided


Procurement As-isSERVICES

CHANNELS

RELATIONSHIPS CLIENTS

REVENUE STREAMSCOST CENTRES

KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Suppliers - goods & services

OGDs- own authority- delegated authority

Treasury Board

IT Service Branch

Staff

Instruments

IT tools

Commodity Classification

Authorities

Data

Staff

Inter-departmental committees

Account executives

Events

1-800 service

Government of Canada

OGDs

Other governments

SMEs

Acquisitions Stewardship

Contracting- Specialized - Complex- Standard- Custom- Common- Unique- Low-dollar value- Routine

Commodity

Expert Services

Create & administer contracts & instruments

Advise clients

Analyse data and trends

Marketing & communications

Training

Vendor registration

Operations staff

Phone, fax, e-mail

IT tools and web sites

Electronic interfaces

E-tendering

Canadian Commercial Corp.

Appropriations

Fees

Salary and O&MIT transferIT maintenance & development


CHALLENGES


Contracting- Specialized - Complex- Standard- Custom- Common- Unique- Low-dollar value- Routine

Commodity

Expert Services

SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

o Standardize our terminology to describe procurement

o Re-balance workload, with clients taking responsibility for routine procurement

o Support clients that lack capacity or capability to do routine procurement

o Emphasize PWGSC’s increased focus on value added, complex procurement

o Standardize our terminology to describe procurement

o Re-balance workload, with clients taking responsibility for routine procurement

o Support clients that lack capacity or capability to do routine procurement

o Emphasize PWGSC’s increased focus on value added, complex procurement


INNOVATIONS

Focus Contracting service on added value service

- Enterprise- Complex- Standard

Implement classification of procurement based on Dynamic Baseline Model

Create a client-procurement support service bundle

- Commodity management

- Routine procurement

Align delegated authorities with client capability

Clients have responsibility for routine procurement

Full cost recovery for routine procurement support service

SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES


BENEFITS

Focus Contracting service on added value service

- Enterprise- Complex- Standard

Implement classification of procurement based on Dynamic Baseline Model

Create a client-procurement support service bundle

- Commodity management

- Routine procurement

Align delegated authorities with client capability

Clients have responsibility for routine procurement

Full cost recovery for routine procurement support service

SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

o A common reference for procurement across the GC

o Client focus is on lower dollar and routine procurements, where time to delivery is important

o PWGSC focus is on higher complexity and risk, where we provide key added value

o For clients who do not have capacity for routine procurement, a support service will be in place

o Full cost recovery for work we do under the routine procurement support service.

o A common reference for procurement across the GC

o Client focus is on lower dollar and routine procurements, where time to delivery is important

o PWGSC focus is on higher complexity and risk, where we provide key added value

o For clients who do not have capacity for routine procurement, a support service will be in place

o Full cost recovery for work we do under the routine procurement support service.


Procurement To-be


Contracting- Enterprise- Complex- Standard

Procurement support- Commodity management- Routine procurement

Expert services

StaffInstrumentsIT toolsExpanded delegation of authorityData standards & reporting


GC dept’s & Agencies- Routine procurement

Treasury BoardIT Service BranchCommodity Classification

SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

AppropriationsFees Routine procurement


SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Staff

Inter-departmental committees

Account executives

Events

1-800 service

CHALLENGES

o The phone help service is a referral service that lacks in-house expertise, most often clients rely on line-staff for assistance

o The primary contact and information source for clients is the line staff

o In order for clients to take on more of the routine procurement they will need active (person) support – passive (information) support may be insufficient

o We lack a significant, regular departmental client engagement event as a venue for high level organization-based discussions on trends and challenges in public sector procurement

o We lack an effective mechanism for knowledge sharing across our department and with our clients

o The phone help service is a referral service that lacks in-house expertise, most often clients rely on line-staff for assistance

o The primary contact and information source for clients is the line staff

o In order for clients to take on more of the routine procurement they will need active (person) support – passive (information) support may be insufficient

o We lack a significant, regular departmental client engagement event as a venue for high level organization-based discussions on trends and challenges in public sector procurement

o We lack an effective mechanism for knowledge sharing across our department and with our clients


INNOVATIONSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Create support centres beginning with routine procurement

Linkage to departmental service fairs

Create communities of practice as a resource for clients

Commit funds to design and operate procurement support centres

Create communities of practice as a resource and communications channel for staff


BENEFITSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Create communities of practice as a resource and communications channel for staff

Commit funds to design and operate procurement support centres

o Focussed support for clients to enable them to do routine procurement

o Improved communications and best practices sharing across our organization

o Improve opportunities for clients to find resources of knowledge and best practice for procurements within their authority (legislated or delegated)

o Focussed support for clients to enable them to do routine procurement

o Improved communications and best practices sharing across our organization

o Improve opportunities for clients to find resources of knowledge and best practice for procurements within their authority (legislated or delegated)

Create support centres beginning with routine procurement

Linkage to departmental service fairs

Create communities of practice as a resource for clients


Procurement To-be

StaffInter-departmental committees

Account executives

Events

Support centres

Bi-Annual Conference

Communities of Practice

Create & administer contracts & instrumentsAdvise clientsAnalyse data and trendsMarketing & communicationsTraining Vendor registrationInformation sharing (communities)


Support centres

SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES


CHALLENGESSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Staff

Instruments

IT tools


Authorities

Data

Operations staff

Phone, fax, e-mail



E-tendering


o Instruments are hard to find, understand and use

o Variations and differences in tools make them hard to use

o It is hard to find what you need and hard to understand what you find

o Instruments are hard to find, understand and use

o Variations and differences in tools make them hard to use

o It is hard to find what you need and hard to understand what you find


INNOVATIONSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Re-design instruments to focus on client usability

Improve access and reduce variation in our tools

Bring information resources, tools and interfaces together under a single portal

Enable client access to information on procurements through the portal


BENEFITSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Re-design instruments to focus on client usability

Improve access and reduce variation in our tools

Bring information resources, tools and interfaces together under a single portal

Enable client access to information on procurements through the portal

o Optimized instruments and tools through increased access and usability

o Focussed support for clients to enable self-serve routine procurement

o Better information sharing with clients on the status of their procurements

o Optimized instruments and tools through increased access and usability

o Focussed support for clients to enable self-serve routine procurement

o Better information sharing with clients on the status of their procurements


Procurement To-be

StaffOptimized instruments and IT toolsExpanded delegation of authorityData standards & reporting

Operations staff

Phone, fax, e-mail

Acquisitions portal

E-bidding


SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES


CHALLENGESSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Operations staff

Phone, fax, e-mail



E-tendering


o Electronic communications are increasingly the norm for a large segments of the business communities

o The Government of Canada is lagging behind other comparable jurisdictions in the implementation of electronic commerce

o Electronic communications are increasingly the norm for a large segments of the business communities

o The Government of Canada is lagging behind other comparable jurisdictions in the implementation of electronic commerce


INNOVATIONSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Resolve legal and policy impediments to the implementation of electronic bidding

Extend electronic tendering to include the submission of electronic bids


BENEFITSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

o Renew Canada’s leadership in the development of public sector electronic commerce

o Engage supplier community in commodities where electronic bidding has become the norm or a common process

o Renew Canada’s leadership in the development of public sector electronic commerce

o Engage supplier community in commodities where electronic bidding has become the norm or a common process

Resolve legal and policy impediments to the implementation of electronic bidding

Extend electronic tendering to include the submission of electronic bids


Procurement To-be

Operations staff

Phone, fax, e-mail

Acquisitions portal

E-bidding


SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES


CHALLENGESSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Staff

Instruments

IT tools


Authorities

Data

o The GC commodity classification (GSIN) terminology and labels are an increasing problem. The GSIN suffers from duplication and discrepancies in the classes and groups and it requires major revision

o There are incompatibilities between PWGSC procurement data and department financial system data that increase the difficulty of providing effective business intelligence

o Data gathering for intelligence in commodity management and spend analysis is a major effort for PWGSC

o The GC commodity classification (GSIN) terminology and labels are an increasing problem. The GSIN suffers from duplication and discrepancies in the classes and groups and it requires major revision

o There are incompatibilities between PWGSC procurement data and department financial system data that increase the difficulty of providing effective business intelligence

o Data gathering for intelligence in commodity management and spend analysis is a major effort for PWGSC


INNOVATIONSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

Adopt an international standard for commodity classification managed

Partner with TB on data standards and reporting

Take a leadership role in the development of data standards and reporting on procurement for the GC


BENEFITSSERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES

o Easier for businesses to work with the GC (using common private sector classification references)

o Reduce management burden for PWGSC

o Improve capability of PWGSC to provide business intelligence by standardizing information provided by clients

o Improved integration with information form procurement systems and potential for reduced reporting burden

o Easier for businesses to work with the GC (using common private sector classification references)

o Reduce management burden for PWGSC

o Improve capability of PWGSC to provide business intelligence by standardizing information provided by clients

o Improved integration with information form procurement systems and potential for reduced reporting burden

Take a leadership role in the development of data standards and reporting on procurement for the GC

Adopt an international standard for commodity classification managed

Partner with TB on data standards and reporting


Procurement To-be




SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES



Procurement To-be


Contracting- Enterprise- Complex- Standard

Procurement support- Commodity management- Routine procurement

Expert services




Government of Canada

GC Dept’s & Agencies

Other governments

SMEs

StaffInter-departmental committees

Account executives

Events

Support centres

Bi-Annual Conference

Communities of Practice

Create & administer contracts & instrumentsAdvise clientsAnalyse data and trendsMarketing & communicationsTraining Vendor registrationInformation sharing (communities)

Operations staff

Phone, fax, e-mail

Acquisitions portal

E-bidding


AppropriationsFees Routine procurement


Support centres

SERVICES

CHANNELS



KEYRESOURCES

KEYPARTNER

KEYACTIVITIES



The Business Model Canvas

Finance

ClientsInfrastructure OfferThe business model describes the rationale of how an organization creates, delivers and captures value

The canvas elaborates the business model through nine basic building blocks that cover the four main areas of a business: clients, offer, infrastructure, and financial viability.

The business model is a blueprint for a strategy to be implemented through organizational structures, processes, and systems


ClientsClient Segments

An organization serves one or several client segments

Channels

Value propositions are delivered to clients through communication, distribution, and sales channels

Customer/Client Relationships

Client relationships are established and maintained with each customer segment

The Nine Building Blocks of the Business Model

Value PropositionsSolve client problems and satisfy client needs with value propositions


INFRASTRUCTUREKey Resources

Key resources required to offer and deliver the value propositions ...

Key Activities

… by performing a number of key activities

Key Partnerships

Key partnerships are formed to acquire some resources and perform some activities

Financial ViabilityRevenue Streams

Revenue streams result from value propositions offered to clients

Cost Structure

All the infrastructure elements result in costs

acquisitions business model business innovations and to-be model

Documents