Information Technology Reference
In-Depth Information
Discussion Questions
1.
The new e-tendering system allows contractors to down-
load and upload tender documents online, track the status of
tenders, and receive e-mail alerts. The system was developed
and deployed in stages. First, the MCD required companies to
submit tenders and bids online. Secondly, the MCD set up an
online and offline backup system to safeguard the tender
information against equipment failure. The MCD also pro-
vided a telephone help desk available to contractors 24 hours
a day.
The MCD leases data center space from the Center for
Development of Advanced Computing (C-DAC). The Web-
based e-tendering system was developed by information sys-
tems company Wipro, which has since installed the system in
several other government agencies in India.
The new system has eliminated the need for companies
to physically send representatives to the MCD headquarters.
It has also provided bidders with privacy and the government
with transparency. Bidders need no longer fear intimidation
from competitors since no one knows who is bidding. Bids are
placed in an anonymous fashion, freeing contracting decision
makers from outside influences. Now contracts are awarded
on a bidder's merit and bid, and not according to who knows
whom.
The MCD went to great lengths to sell contractors and
government staff on the new way of doing business. It con-
tracted Wipro to train hundreds of users and thousands of
contractors. At first, only 70 percent of the engineers used the
system, with the remaining engineers not willing to touch a
computer. After about six months, the advantages of the sys-
tem won over the holdouts.
The new e-tendering system has been a huge success,
with over 30,000 tenders placed over the system—the world's
highest volume in numbers by any government organization.
The MCD increased the number of transactions it handles
each week and reduced the time it takes to award a contract
from 90 days to 30 days.
Still, Arun Kumar sees other areas that need improve-
ment. He and his team are testing an e-procurement system
that they hope will streamline approvals. The contract
approval cycle currently takes two to three months because
it's a manual task that involves a certifying authority auditing
the process and paperwork. If Arun can reduce this time by
two-thirds, that would really make a big difference.
Why did Aselsan need to make the huge investment in an
ERP system? Why was its old system insufficient?
2.
What challenges did Aselsan face while developing its
ERP system?
Critical Thinking Questions
1.
How does the quality of an ERP system contribute to a
business's ability to compete in the global market?
2.
How do information systems support collaboration among
companies involved in a project?
Sources:
SAP Staff, “Aselsan, Defense Manufacturer Supports New Project-
Based Business Model with SAP Software”, SAP Customer Success Story,
September 2007,
http://download.sap.com/solutions/business-suite/erp/
site,
www.sap.com,
accessed June 30, 2008; Aselsan Web site,
www.aselsan.com.tr,
accessed June 30, 2008.
Delhi is the second largest city in India, with a population of
over 17 million. Located on the banks of the Yamuna River,
Delhi was established in 1000 BC, making it one of the oldest
cities in the world. Delhi is governed in part by the Municipal
Corporation of Delhi (MCD), which has a staff of over 100,000
working in 107 offices across 12 geographic zones. Recently,
the MCD has been working to move its staff online, migrating
from a paper form-driven system to online automation. Those
in charge of the project are learning that changing the
work processes of an organization of this size is no small
undertaking.
One of the MCD's most challenging tasks has been
procuring contractors, services, and products for use on city
projects. The traditional procedure for procurement involved
getting the word out to let the community know that a project
was planned and contractors were needed. Businesses that
wanted to bid on the contract would then travel to the MCD,
sometimes over hundreds of miles, to bid on the project. The
process of bidding and negotiation might take months, until
one contractor finally won the contract.
The time-honored bidding system, referred to as tender-
ing, was far from convenient or fair. In many cases, eligible
companies lost contracts because they missed the deadline
by minutes due to travel delays. Corruption in the system also
treated participants unfairly, with some companies using
intimidation techniques to keep competitors from bidding on
contracts. It was time to bring the MCD's tendering system
into the digital age.
Arun Kumar, an executive engineer at the MCD, took on
the responsibility of making that transition. Arun has com-
pleted the installation of an e-tendering system that auto-
mates much of the bidding process and is working to go
farther and establish a complete e-procurement system.
Discussion Questions
1.
What were some of the biggest challenges in implement-
ing the new e-tendering system at the MCD?
2.
What benefits does the new system provide for the MCD
and its contractors?
Critical Thinking Questions
1.
Compared to a business, what considerations might be
different for a government agency designing an enterprise
system?
2.
Why do you think some engineers were hesitant to coop-
erate with the MCD in using the new system?
