government and education online buying trends

©2009 Yeoman Technology Group – All rights Reserved

Government and Education Online Buying Trends

Originally broadcast as a Webinar – Feb 2010

©2009 Yeoman Technology Group – All rights Reserved

AgendaOverviewRise of Online SystemsChange in actual purchase

Rise of non-bid purchasesRise of RFI

Core ChallengesMonitoringResponding

Next StepsQ & A

©2009 Yeoman Technology Group – All rights Reserved

About Yeoman

Slightly Different Approach to Sales and Distribution

Focus on entire webSegment into ‘channels’Match customer buying patterns

Manufacturing, Publishing, and Technology CreatorsRely on usage statistics to support any assumptions$1 rule applies

©2009 Yeoman Technology Group – All rights Reserved

The Big Myth – There is not “One Internet”

DirectMajor

E-TailersBid / Auction Supply Chain

SystemsReferral /Associated

Knowledge Centric Social Centric

There are groups of distinct sites and systems. Each has their own group of competitors, sites, and systems. They ARE NOT searchable or accessible from one spot.

©2009 Yeoman Technology Group – All rights Reserved

Traditional Sales & Distribution Model

Manufacturer

Distributor

Retail

Partners

OEM Consultant

Direct

Sales Team

©2009 Yeoman Technology Group – All rights Reserved

Internet Delivery not consistent

Manufacturer

Distributor

Retail

Partners

OEM Consultant

Direct

Sales Team

Direct

ETailers

Bid

Supply Chain

Referral

Social

©2009 Yeoman Technology Group – All rights Reserved

Gov / Ed Online Activity

Early Internet focused on home built systemsMost failed, except for FedsNew rise in relying on third parties for bids

Huge rise in debit card sub $10k purchasing

©2009 Yeoman Technology Group – All rights Reserved

Migration away from direct systems

DirectMajor

E-TailersBid / Auction Supply Chain

SystemsReferral /Associated

Knowledge Centric Social Centric

Bottom line: Switching to a third party vendor for posting and management lowers cost for organizations, but makes tracking opportunities more complex

©2009 Yeoman Technology Group – All rights Reserved

Who’s Online?

Federal Government

(>90%)

State Government

(>75%)

Large Cities (>75%)

Towns (<50%)

Universities (>60%)

Colleges (<50%)

NOTE: Based on Yeoman analysis of bid levels and activities

©2009 Yeoman Technology Group – All rights Reserved

Who’s OnlineFederal Government is most advanced

Notifications, Grants, and some submittalsEasy monitoring and tracking

States are varied100% have online posting27% have some type of online catalogOnly 43% have active City/Town usageMix of free and fee based access

Towns, Colleges, and UniversitiesNo consistencyWide variation within states and college groups

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Can’t There Be One System?

Highly UnlikelyFed Gov’t not allowed to mandate to StatesStates not allowed to mandate to Cities or UniversitiesCities/Towns not allowed to mandate to school DeptUniversities not allowed to mandate to individual departments

System Design and Control Public Input and

Local Rule

©2009 Yeoman Technology Group – All rights Reserved

Rise of Ecommerce / Debit Cards

Easier buying process

Many push limits way above $500 ($10k in some cases)

Helped by major player willingness to set up terms and custom sites

E-Taile

rs

•Great systems

•Multiple Brands

Direct

Sites

•Need to support CC

•Multi-quote limits

Auctions

•Question on quality

•Can’t accept gov’t terms

©2009 Yeoman Technology Group – All rights Reserved

Online Bid SystemsOver 100 different vendors

Public PostingVendor Registration & ManagementFull catalog systems

Plus suite of Monitoring optionsOnvia, Bidsync, Rfp.com, Schoolbid, etcNone can get all areas automatically

Too many variations and rules between systemsNo standard classifications or descriptionsNeed management process with human element

©2009 Yeoman Technology Group – All rights Reserved

All Levels of Sales Process Online

RFI / RFP

Pre-solicitation

Advance Notice

Bid

Short List

Sole Source

©2009 Yeoman Technology Group – All rights Reserved

Starting pointAssess current program

How do you find opportunities now?Direct or downstream partners

If you rely on downstream, audit their approachKey Elements of program

Complete monitoring for target customersDaily review of major systemsRegistration and certification in all relevant systemsTight tracking and reporting of opportunities and resultsTied by to larger sales operations

©2009 Yeoman Technology Group – All rights Reserved

Yeoman Online Bid Management Service

Online Gov / Ed Presence

Daily review and update of target

opportunities

Company registration and

certification

Monitoring of all major systems

Cost effective alternative to doing it yourselfManagement and Tracking of target marketFiltered opportunities presented to youAction step decision is yoursAutomatic Results TrackingFixed Monthly Fee

©2009 Yeoman Technology Group – All rights Reserved

Questions / Comments?

Thank you for attending

www.yeomantechnologies.com

800-667-6098