PROJECT REPORT

On
“BUSINESS OPPORTUNITY IN SMARTCARD AND TENDER MANAGEMENT”

FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF
“MASTER OF BUSINESS ADMINISTRATION”
FROM GGS IP UNIVERSITY
DELHI

BATCH: 2017-2019

SUBMITTED BY: SUBMITTED TO:

KAPILDEV S PROF. DHARINI RAJE SISODIA

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) – 201306
 Certificate of Training – Industry Mentor

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. KAPILDEV S of MBA 2017-19 Batch from Army Institute of
Management & Technology, Greater Noida has undergone Summer Internship Project in our
organization. His/her project title was BUSINESS OPPORTUNITY IN SMART CARD AND TENDER
MANAGEMENT, supervised under Mrs . Lakshmy.P.N (Industry Mentor/ Guide) from 01ST June
2018 to 27TH July 2018. His conduct and effort during the Internship is highly appreciable.

Authorized Person
Signature
Name
Designation
(With stamp)

i
 Supervisor Certificate – Faculty Mentor

This is to certify that Kapildev S, a student of Master of Business Administration, Batch 2017-
19, Army Institute Management & Technology, Greater Noida, has successfully completed his
project under my supervision.

During this period, he worked on the project titled “Business opportunities in smart card and
tender management” in partial fulfillment for the award of the degree of Master of Business
Administration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been submitted to
any university for award of any degree. His performance and conduct has been good.

(Signature)
Prof. Dharini Raje Sisodia
AIMT-Gr. Noida
Date:

ii
 Certificate of Originality

I, Mr.Kapildev S, Roll No. 26 of MBA 2017-19 Batch of Army Institute of Management &
Technology has undergone a Summer Internship in ITI Ltd for duration of 8 weeks on a project
title “Business opportunities in Smart card and Tender management”, hereby declare that this
project is my original piece of work.

Signature of the student:

Student Name: Kapildev S
Date:

iii
 Acknowledgment

I want to show my sincere gratitude to all those who made this study possible. First of all I am
thankful to the helpful staff and the faculty of Army Institute of Management and Technology.
Second I would like to extend my sincere thanks to my Industry Guide, Mr. Sabu Joseph, for his
untiring cooperation. One of the most important tasks in every good study is its critical
evaluation and feedback which was performed by my faculty guide Prof. Dharini Raje Sisodia.
I am very thankful to my Faculty as well as Industry guide for investing his precious time to
discuss and criticize this study in depth, and explained the meaning of different concepts and
how to think when it comes to problem discussions and theoretical discussions. My sincere
thanks go to my Institute and family, who supported and encouraged me.

Kapildev S
MBA 14

iv
 EXECUTIVE SUMMARY

The project focuses on the study of business opportunities in smart card and tender management. The
project tries to study the scope of smart card in Indian industry in various applications like use of
smart card in driving license and the future of smart card business for ITI.

The project is the result of my two months internship at ITI Limited, which is a Central Government
Owned manufacturer of telecommunications equipment in India. A Smart Card Driving
License (SCDL) is a tamper-proof Driving License in the form of a plastic card with an embedded
microprocessor chip of 64 kb memory which will have all information about the DL-holder stored in
it. Earlier driving license was issued in the form of a book but with technological advancement, getting
smart card license has become easy. With all the benefits that smart card offers, it is used extensively
today.

Tender management is a process adopted by bid mangers that involves a strategic planning. It can be
defined as a structured process starting from invitation to tender to designing an
effective tender response to meeting the authority compliance to wining of contract.

The project will help to understand business opportunities in smart card and management of tender and
its operation.

v
 TABLE OF INDEX

Chapter Topic Page No

1 Introduction 1

Objectives of The Research 10

2

3 Literature Review 11

4 Research Methodology 16

5 Data Analysis & Interpretation 17

6 Findings, Recommendations & Conclusion 29

7 Bibliography 31
 CHAPTER I
INTRODUCTION

1.1 Smart Card

A smart card, chip card, or integrated circuit card (ICC), is any pocket-sized card that has
embedded integrated circuits. Smart cards are typically made of plastic. Many smart cards
include a pattern of metal contacts to electrically connect to the internal chip. Others
are contactless, and some are both. Smart cards can provide personal
identification, authentication, data storage, and application processing. Applications include
identification, financial, mobile phones (SIM), public transit, computer security, schools, and
healthcare. Smart cards may provide strong security authentication for single sign-on (SSO)
within organizations. Several nations have deployed smart cards throughout their populations.
The first main advantage of smart cards is their flexibility. There is no need, for example, to
carry several cards: one card can simultaneously be an ID, a credit card, a stored-value cash card,
and a repository of personal information such as telephone numbers or medical history. Such a
card can be easily replaced if lost, and, because a PIN number (or another form of security) must
be used to access information, is totally useless to people other than its legal bearer. At the first
attempt to use it illegally, the card would be deactivated by the card reader itself. The second
main advantage is security. Smart cards can be electronic key rings, giving the bearer ability to
access information and physical places without the need for online connections. They are
encryption devices, so that the user can encrypt and decrypt information without relying on the
unknown, and therefore potentially untrustworthy, appliances such as ATMs. Smart cards are
very flexible in providing authentication at a different level of the bearer and the counterpart
other general benefits of smart cards are:

 Portability
 Increasing data storage capacity
 Reliability that is virtually unaffected by electrical and magnetic fields.
 Smart card Electronic commerce

Smart cards are turning out to be a fundamental piece of the transformation of retailing into
electronic commerce. The impressive growth of the Internet is making electronic shopping at
least a real possibility, if not a habit, among computer users. However, the business model used
in current electronic commerce applications still cannot enjoy the full potential of the electronic
medium. Moreover, concerns about the reliability of an invisible counterpart and about the safety
of the Internet for credit card information increase the wariness and thereby limit the use of the
electronic shopping on the part of customers. Of the estimated 360 billion payments that took
place in the United States in 1995, approximately 300 billion could not have taken place using
the existing electronic media. Such transactions involved micro-payments p; i.e. payments for

1
less than $10 p; which are virtually outside of the electronic arena for lack of a payment method
compatible with such low amounts. Credit cards or checks are simply too expensive to use for
micro-payments, and the e-cash currently being experimented on the World Wide Web does not
seem to have the characteristics to appeal to shoppers. For this reason, smart cards could be a
fundamental building block of widespread use of electronic commerce, since they are an
instrument to pay at a low cost for transactions involving small amounts.

1.2 Tender management

The tendering process should adopt and observe the key values of Fairness, clarity, simplicity,
and accountability, as well as establish the concept of apportionment of risk to the party best
placed to Access and manage it. The principle of tendering is to ensure that true competition is
achieved, and tenders received are evaluated by applying certain criteria. These criteria may be
expressed in Terms of financial matters, comprising a simple assessment relating to tender sums,
or more complex financial evaluation, including Consideration of projected costs over the life
cycle of the completed Project. It can also address other non-financial factors such as time,
proposed methods, levels of capability; or sometimes a mixture of all these criteria. All
Tenderers should be able to bid on an equal Basis, meaning that they must receive the same
information and, most importantly, this information should be sufficient in content and accuracy
to allow them to properly assess the implications of the project and bid accordingly. The
tendering process is not always easy, and every activity in the tendering process has a time and
cost implication. Therefore, it makes economic sense not to overburden the Tenderers with
Unnecessary information requirements, and to concentrate on those which are relevant to the
work which is to be undertaken? Faced With competing financial pressures most construction
contractors Will carry out their own assessment of the projects for which they wish to tender, and
will be less inclined to bid for those where the Procedures involved are perceived as overly
complicated or onerous. Also, since preparation costs are included in their overheads, these will
ultimately be passed on in the form of higher prices. Tendering can also be used for the
procurement of plant and Equipment not associated with a construction project. The tendering
process should adopt and observe the key values of Fairness, clarity, simplicity, and
accountability, as well as establish the concept of apportionment of risk to the party best placed
to Access and manage it. The principle of tendering is to ensure that True competition is
achieved, and tenders received are evaluated by applying certain criteria. These criteria may be
expressed inters of financial matters, comprising a simple assessment relating To tender sums, or
more complex financial evaluation, including Consideration of projected costs over the life
cycle of the completed Project. It can also address other non-financial factors such as time,
proposed methods, levels of capability; or sometimes a mixture of all these criteria. All
Tenderers should be able to bid on an equal Basis, meaning that they must receive the same
information and, most importantly, this information should be sufficient in content and accuracy
to allow them to properly assess the implications of the project and bid accordingly. The
tendering process is not always easy, and every activity in the tendering process has a time and
cost implication. Therefore, it makes economic sense not to overburden the tenderers with
Unnecessary information requirements, and to concentrate on those which are relevant to the
2
work which is to be undertaken? Faced With competing financial pressures most construction
contractors Will carry out their own assessment of the projects for which they wish to tender, and
will be less inclined to bid for those where the Procedures involved are perceived as overly
complicated or onerous. Also, since preparation costs are included in their overheads, these will
ultimately be passed on in the form of higher prices. Tendering can also be used for the
procurement of plant and Equipment not associated with a construction project.

1.3 Telecommunication

Telecommunications refers to the exchange of information by electronic and electrical means

over a significant distance. A complete telecommunication arrangement is made up of two or
more stations equipped with transmitter and receiver devices. A single co-arrangement of
transmitters and receivers, called a transceiver, may also be used in many telecommunication
stations. Telecommunication transmission of signs, signal, messages, words, writing, image and
sounds or information of any nature wire, radio-optical of information
between communication participants includes the use of technology. It is transmitted either
electrically over physical media, such as cables, or via electromagnetic radiation. Such
transmission paths are often divided into communication channels which afford the advantages
of multiplexing. Since the Latin term communication is considered the social process of
information exchange, the term telecommunications is often used in its plural form because it
involves many different technologies. Early means of communicating over a distance included
visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and
optical heliographs. Other examples of pre-modern long-distance communication included audio
messages such as coded drumbeats, lung-blown horns, and loud whistles. 20th and 21st-century
technologies for long-distance communication usually involve electrical and electromagnetic
technologies, such as telegraph, telephone and teleprinter, networks radio, microwave
transmission, fibers optics, and communication satellites.

1.3.1 TELECOMMUNICATION IN INDIA

India's telecommunication network is the second largest in the world by a number of telephone
users (both fixed and mobile phone) with 1.206 billion subscribers as on 31 March 2018. It has
one of the lowest call tariffs in the world enabled by mega telecom operators and hyper-
competition among them. As on 30 March 2018, India has the world's second-largest Internet
user-base with 412.60 million internet subscribers in the country. (www.wikipedia.org)
Major sectors of the Indian telecommunication industry are telephone, internet and television
broadcast Industry in the country which is in an ongoing process of transforming into next-
generation network, employs an extensive system of modern network elements such as
digital telephone exchanges, mobile switching centers, media gateways and signaling

3
gateways at the core, interconnected by a wide variety of transmission systems using fiber-
optics or Microwave radio relay networks. The access network, which connects the subscriber to
the core, is highly diversified with different copper-pair, optic-fiber and wireless
technologies. DTH, a relatively new broadcasting technology has attained significant popularity
in the Television segment. The introduction of private FM has given a fillip to the radio
broadcasting in India. Telecommunication in India has greatly been supported by
the INSAT system of the country, one of the largest domestic satellite systems in the world. India
possesses a diversified communications system, which links all parts of the country by
telephone, Internet, radio, television and satellite.
Indian telecom industry underwent a high pace of market liberalization and growth since the
1990s and now has become the world's most competitive and one of the fastest growing telecom
markets. The Industry has grown over twenty times in just ten years, from under 37 million
subscribers in the year 2001 to over 846 million subscribers in the year 2011. India has
the largest mobile phone user base with over 1183.41 million users as of March 2018.
(www.wikipedia.org)Telecommunication has supported the socioeconomic development of India
and has played a significant role to narrow down the rural-urban digital divide to some extent in
India. The government has pragmatically used modern telecommunication facilities to deliver
mass education programmers for the rural folk of India.

1.4 COMPANY PROFILE

India’s first Public Sector Unit (PSU) - ITI Ltd was established in 1948. Ever since, as a
pioneering venture in the field of telecommunications, it has contributed to 50% of the present
national telecom network. With state-of-the-art manufacturing facilities spread across six
locations and a countrywide network of marketing/service outlets, the company offers a
complete range of telecom products and total solutions covering the whole spectrum of
Switching, Transmission, Access and Subscriber Premises equipment.
ITI joined the league of world-class vendors of Global System for Mobile (GSM) technology
with the inauguration of mobile equipment manufacturing facilities at its Mankapur and Rae
Bareli Plants in 2005-06. This ushered in a new era of indigenous mobile equipment production
in the country. These two facilities supply more than nine million lines per annum to both
domestic as well as export markets.
The company is consolidating its diversification into Information and Communication
Technology (ICT) to hone its competitive edge in the convergence market by deploying its rich
telecom expertise and vast infrastructure. Network Management Systems, Encryption and
Networking Solutions for Internet Connectivity are some of the major initiatives taken by the
company.
Secure communications are the company's forte with a proven record of engineering strategic
communication networks for India's Defense Forces. Extensive in-house R&D work is devoted

4
to specialized areas of Encryption, NMS, IT and Access products to provide complete
customized solutions to various customers

1.4.1 Company Vision and Mission

“To re-establish leadership in manufacturing and supply of telecom equipment and also to retain
the status of the top turnkey solution provider.”

1.4.2 Aim
 To regain status as a largest indigenous manufacturer of telecom equipment and consolidate
share in new technologies
 Sustain its status of the top turnkey service provider of the country in telecommunication.
 Respect both internal and external customers.
 No liquidated damages.
 Reducing cycle time from dispatch to realization

1.4.3 INFRASTRUCTURE AND FACILITIES

PHYSICAL SETUP

 In-house R&D
 Network System Unit capable of undertaking Turnkey jobs
 Self-contained component evaluation center
 Fully automated assembly lines
 In Circuit Tester (ICT)
 PCB manufacturing facilities
 Modern Chemical, Metallurgical Labs
 Mechanical fabrication/Machine shops with modern CNC machines
 Moulding& Die casting
 Fully fledged state of the art tool rooms.
 SMT (Surface Mount Technology)
 Environmental testing
 Component approval center approved by Department of
 Telecommunications
 ISO 9000 compliant Quality Management Systems.

5
1.4.4 RESEARCH AND DEVELOPMENT

ITI’s technological strength lies in its vibrant R&D Unit. products developed by R&D
forms a major portion of the company’s turnover. The resources include:

 An exclusive core R&D manned by highly qualified and talented engineers

 with ISO 9001 certification and representation in national and international
 Level quality standard panels.
 State-of-the-art design aids
 Modern facilities for complete equipment and system evaluation.
 Comprehensive vendor evaluation facilities.
 Approval and qualification facilities to match international
 Standards.
 Customized Telecom and IT solution expertise.
 Expertise in adapting imported technology/products to the
 Country’s requirement.

1.4.5 PALAKKAD PLANT

Palakkad Unit was established in 1976, as the Nation’s first Electronic Switching System
Manufacturing Unit, to manufacture large digital switches and digital trunk exchanges, in
collaboration with Alcatel. Today, they are the leading Switching Equipment Manufacturers for the
National Telecom Network with a capacity of producing over 1 million lines of fixed-line switches
per annum. Over the years; they have diversified into various other products and solutions. ITI
Limited Palakkad Plant situated in the State of Kerala specialized for Electronic switching
equipment. The Plant awarded ISO 9001(2000E) and ISO 14000(2004).

1.4.6 CURRENT PRODUCT PORTFOLIO

 Large Digital Switches and Digital Trunk Exchanges(OCB)

 Double-Sided &Multi Layer Printed Circuit Boards (PCB)
 Assembly of state-of-the-art Surface Mounted Devices(SMD)
 SIM Cards/Smart Cards/ National ID Cards
 Managed Leased Line Network(MLLN)
 Stand-alone Signaling Transfer Point(SSTP)Equipment
 Integrated Manufacturing Management System (IMMS) and other
 Customized software solutions.
 VRLA Battery (80 AH to 2000 AH).
 VOIP Products.

6
1.5 BUSINESS OPPORTUNITY IN SMARTCARD AND TENDER MANAGEMENT

 RFP document (Request for Proposal) for the issuance of smart card driving license.
Overall detail of tender such as:
 Total tender AMOUNT
 Earnest Money Deposit (EMD)/ BID security amount
 Pre Qualification Criteria
 Eligibility CRITERIA

 This tender to the management they have approved to address this tender as all the
conditions stipulated in the tender document

 Management department has given the approval for doing the further action
For that formally we prepare the approval for addressing the tender pointing the total tender
amount and EMD (Earnest Money Deposit) amount in detail

 RFP document majorly focuses on the total amount that will cost on the manufacturing
of the product and the documents to be submitted for the tender.

 Request for proposal (RFP) is a document that solicits proposal, often made through a
bidding process, by a company interested in the procurement of a commodity to submit business
proposals.

 RFP mainly comprises of the different section such as

 Technical part and the financial part I

 In the Technical part, we have to collect the documents:

 Pre-qualification criteria
 Eligibility criteria
 Scope of work
 Are the common and generally appearing part in RFP.

The bidder's proposal is acceptable only after the compliance of each and every criterion in the
technical part.
The financial part of a bidder is checked if and only if they win in technical part

7
  In the financial part, we have to collect the document
 SOR (Schedule of Requirement)
 BoQ (BILL OF Quantity)

 What all the document that I have to prepare in technical proposal and based on that
we have prepared a checklist so that I can know about the document that has to be submitted

 As per the checklist, we have to prepare the Technical documents Such as :

 Self Declaration
 Clause by Clause compliance etc

 A tender is a submission made by a prospective bidder in response to an invitation to

tender. It makes an offer for the supply of goods or services. In construction, the main tender
process is generally for the selection of the contractor that will construct the works. However, as
procurement rules have become more complex, so tenders may be sought for a wide range of
goods and services and contractors may take on additional functions such as design and
management.

 In E-tendering process the bidder can submit the document, both Technical AND
Financial in the tender published Portal itself if WE don’t have the account in the specific
Extender Portal We need to register first THEN only we are proceded for the Bid Submission.

 As we completed the documentation of technical and financial part the next part is to
submit the bid for that in the e-tender portal we searched for the specific tender using tender id
after login. By clicking the link of bid submission a new window is opened where we can
browse each and every document we prepared and upload the same.

 After submitting the technical part document we are redirected to upload the financial
document.
The bid can be submitted only after the success full submission of technical and financial part

1.6 Nature of Business Development

Business development is about growing a business. The process of identifying opportunities,

developing relationships, and securing profitable work for the firm is called business development.
Business development is a smart combination of strategic analysis, marketing, and sales.

Even more relevant is businesses’ willingness to let young workers and interns participate in this
function. Business development professionals can be involved in everything from the development of
8
their employers' products and services, to the creation of marketing strategies, to the generation of
sales leads, to negotiating and closing deals. The job of the business development professional is
typically to identify new business opportunities-whether that means new markets, new partnerships
with other businesses, new ways to reach existing markets, or new product or service offerings to
better meet the needs of existing markets-and then to go out and exploit those opportunities to bring in
more profits.
Business Development is related to strategic management as well. So, it’s very important for the
business development manager to have adequate knowledge about strategic management. The
following tasks of strategic management are related to the business development work.

9
 CHAPTER II

OBJECTIVE OF THE RESEARCH

2.1 To study the scope of the Smartcard in the Indian industry

2.2 To study implementation of smart card based Driving license
2.3 To study tender management and operation at ITI Limited.
2.4 To study Future of ITI in the Smartcard business

10
 CHAPTER III
LITERATURE REVIEW
3.1 Smart card data use in public transit

Smart card automated fare collection systems are being used more and more by public transit agencies.
While their main purpose is to collect revenue, they also produce large quantities of very detailed data
on onboard transactions. These data can be very useful to transit planners, from the day-to-day
operation of the transit system to the strategic long-term planning of the network. This review covers
several aspects of smart card data use in the public transit context. First, the technologies are
presented: the hardware and information systems required operating these tools; and privacy concerns
and legal issues related to the dissemination of smart card data, data storage, and encryption are
addressed. Then, the various uses of the data at three levels of management are described: strategic
(long-term planning), tactical (service adjustments and network development), and operational
(ridership statistics and performance indicators). Also reported are smart card commercialization
experiments conducted all over the world. Finally, the most promising research avenues for smart card
data in this field are presented; for example, comparison of planned and implemented schedules,
systematic schedule adjustments, and the survival models applied to ridership. (Pelletier et. al., 2011)

Research highlights
► Smart card automated fare collection systems are being used more and more by public transit
agencies.

► Smart card systems obey to different hardware standards, but software is usually closed and site
specific.

► Smart card data can be useful to transit planners and researchers

► Smart card data can be used for strategic, tactical and operational tasks.

► most researchers agree that more can be done with the data: destination estimation, network
performance, travels behavior. However, socio-demographic data on individual are usually not
available

11
3.2 Big data, smart cities and city planning

Big data is defined with respect to its size but attention paid to the fact that the data I am referring to is
urban data, that is, data for cities that are invariably tagged to space and time. I argue that this sort of
data are largely being streamed from sensors, and this represents a sea change in the kinds of data that
we have about what happens where and when in cities. I describe how the growth of big data is
shifting the emphasis from longer-term strategic planning to short-term thinking about how cities
function and can be managed, although with the possibility that over much longer periods of time, this
kind of big data will become a source for information about every time horizon. By way of conclusion,
I illustrate the need for new theory and analysis with respect to 6 months of smart travel card data of
individual trips on Greater London’s public transport systems. (Batty, M. 2013).

3.3 The potential of public transport smart card data

The potential role of smart card data for travel behavior analysis is considered. Case studies of smart
card experience in Britain are examined, of the pensioner concessionary pass in Southport,
Merseyside, and the commercially operated scheme in Bradford. The nature of smart card data puts an
emphasis on concept definition and rules-based processing. Using smart card data, estimates may be
made of card turnover rates, trip rates per card on issue, and inferences made of the proportion of
linked trips. In comparison with existing data sources, much larger samples may be obtained, and
behavior analyzed over much longer periods. However, there are limitations, mainly that trip length is
not recorded on systems based on validating cards only on entry to a bus, and that certain types of data
still require direct survey methods for their collection (such as journey purpose). Hence, a
complementary role may be identified for smart card data Vis a Vis existing data collection methods,
rather than entirely superseding them. Transport service providers should also ensure that their smart
card retailing strategy does not undermine the quality of the data in the initial years of the scheme,
therefore limiting its use during this period.(Utsunomiya, M., Attanucci, J., & Wilson, N. (2006).

3.5 Internet payment system using smart card

An architecture and system uses a smart card for payment of goods and/or services purchased on-line
over the Internet. A client server on a client terminal controls the interaction with a consumer and
interfaces to a card reader which accepts the consumer's smart card. A payment server on the Internet
includes a computer and terminals that contain security cards to handle the transaction, data store and
collection. Also connected over the Internet is a merchant server advertising the goods and/or services
12
offered by a merchant for sale on a web site. The merchant contracts with an acquirer to accept smart
card payments for goods and/or services purchased over the Internet. A consumer uses his smart card
at the client terminal in order to purchase goods and/or services from the remote merchant server. The
Internet provides the routing functionality between the client terminal, merchant server and payment
server. The client terminal emulates a security card in interacting with the smart card, and the
responses received are grouped together and sent as a draw request message to the payment server.
The payment server then emulates the smart card in an interaction with the security card. The security
card delivers the expected smart card signature to the payment server and/or on to the client terminal
or merchant server to reduce message traffic between the entities on the network. The comparison of
the smart card signature to an expected value can occur at any location. Encryption is used for
security.(Davis, V. M., Cutino, S. C., Berg, M. J., Conklin, F. S., & Pringle, S. J.2010)

3.6 Decision Support for Web-based Prequalification Tender Management System

In the ninth Malaysian Plan, the government attempts to optimize the use of Information
Communication and Technology (ICT) infrastructure in delivering information to the people (Unit,
2006). Web-based application is being used as a medium to distribute useful information to the people
in the most effective way. Most of the public sectors in Malaysia are utilizing Web system in their
daily practices, but in several complicated processes, they are still using conventional way in
processing the related documents. One of the examples is tendering processes in construction industry.
Tendering processes in construction industry normally will consume longer time to process all tender
documents and there are some standard procedures to be followed. Standard procedures for
construction in Malaysia are underlined by Department of Work (JKR). As the government is moving
towards electronic tendering for the construction industry at the national level, most of public sectors
publish open tender advertisements in government Web services but application to handle electronic
tendering processes in construction industry has not been completely developed yet. Thus, the
construction industry remains to be the most complex and fragmented industry in Malaysia (Weng &
Alsagoff, 2006). Prequalification is an initial phase in tendering processes where all tender documents
will be screened out to select the compliance contractor. Prequalification is important as it can
minimize risk of construction projects. In this phase, the contractor has to fulfill the tender documents
according to the client request. It also provides an analysis on the tender documents by filtering the
qualified contractors that have completed all tender documents properly. Since some of tendering
processes are confidential and involves many parties such as clients, consultants and constructors, we
proposed Web-based application for prequalification tender management system in construction
project or known as PreQTender to facilitate these processes. The proposed model is expected to
benefit in terms of security of tender documents, reducing tender administration in terms of workload
and paperwork, thus increasing productivity and efficiency in daily responsibilities. Furthermore,
handling documents electronically is also to ensure fair and transparency processes. The PreQTender
provides an automated decision making process that reduces the use of manpower and processing time
of the tenders. Web-based Decision Support System (DSS) Source: Decision Support Systems, Book
edited by: Chiang S. Jao, ISBN 978-953-7619-64-0, pp. 406, January 2010, INTECH, Croatia,
downloaded from SCIYO.COM www.intechopen.com 360 Decision Support Systems has reduced
13
technology barriers and made it easier and less costly to serve decision relevant timely information to
the client wherever and whenever they may need it (Delen et al., 2007). The PreQTender is being
developed to support contractor selection process. This paper is organized as follows. First section
described the current practices of tendering process. Second section continues with literature review.
Third section is explanations of problem statement. Fourth section illustrates the research framework
of PreQTender. Fifth section is expected result and lastly ends with conclusions. (Noor, N. M. M., &
Mohemad, R. 2010)

3.7 Web-based prequalification for tender management system in construction projects

Tendering processes need some improvements as they being used widely by government and private
sector. The improvements that attempts to apply is to used Web services technology as a medium to
process all the tenders that submitted by the interested contractors. This study is to develop an efficient
Web application for prequalification tendering processes. Decision Support System (DSS) is used as a
tool to help decision making (DMs) for selecting contractors. This work will process tender and it will
generate the short listed of the qualified contractors those eligible contractors into the evaluation
process. (Abdullah, A. I., Noor, N. M. M., & Man, M. 2008)

3.8 Deconstruction of the telecommunications industry

The telecommunications industry is undergoing a radical transformation, creating exciting new

opportunities and new challenges for infrastructure and service providers. The established valuechain
is increasingly being deconstructed, with the entry of powerful new players and radical restructuring of
the industry. Rapid technological developments and increasing market turbulences have added new
dimensions to an already complex scenario. Many tested business models, as well as related
frameworks, tools and techniques, have become obsolete. The paper uses recent evidence to illustrate
the evolving telecommunications value chains and market structure, examine the underlying
theoretical and practical reasons for such changes, and highlight the strategic implications for the
various players involved. The paper concludes that some of the current changes in the
telecommunications industry are very radical, and all players need to re-evaluate their strategies and
market positions and make hard decisions as to where to go next. The value chains are rapidly
evolving into value networks, with multiple entry and exit points, creating enormous complexity for
all the players involved. Further research is urgently needed to map out the telecommunications value
chains and value networks that are possible in the context of the new economy; identify the different
players and the possible strategies and business models that they can adopt; develop new conceptual
frameworks for understanding the current changes in the telecommunications and related industries;
and create new tools and techniques for identifying opportunities and threats and for making new
strategies.(Li, F., & Whalley, J. 2008)

14
3.9 Determinants of customer loyalty in the wireless telecommunications industry

This paper reports the results of research investigating the determinants of the propensity to switch
wireless service providers. A model generated from the data rather than from a priori theory is
presented, and it is found to uphold the strong relationship between customer satisfaction and customer
loyalty exhibited in prior studies. In sharp contrast to the prevailing industry practice of ‘locking in’
customers by means of restrictive contracts, this research suggests that wireless service providers are
better off improving customer satisfaction in order to minimize customer defection. This would imply
shifting scarce resources to customer retention through improved service, saving costs of expensive
customer acquisition campaigns. The paper also proposes two methodological innovations. First, the
research employs the ‘Tetrad methodology’ as an exploratory technique prior to building a Structural
Equation Model (SEM) making it possible to identify drivers of loyalty—direct or indirect—when it
might not be known a priori what these drivers might be. Secondly, the paper proposes an approach to
estimating moderator effects on the relationship between satisfaction and customer loyalty.(Eshghi, A.,
Haughton, D., & Topi, H. 2007)

15
 CHAPTER IV

RESEARCH METHODOLOGY

4.1 Research methodology

Research methodology is the process to collect information and data for the purpose of making
business decisions. These include interviews, surveys and other research techniques. This study used
the secondary data for the analysis.

4.2 Sampling strategy

Sample data was selected using secondary data.

4.2.1 Secondary data

Secondary data is one type of the quantitative data that has already been collected by someone else.
Secondary data is the data that has been collected for another purpose. It involves less cost, time and
effort. Secondary data is the data that is being reused.

External sources of secondary data used are:

1. Websites
2. Journals
3. Books
4. Magazines
5. Newspaper

16
 CHAPTER V

DATA ANALYSIS

5.1 To study the scope of the smart card in the Indian industry

Smart Card Application Segments and Sub-segments Covered in this Report These are the industry
which are currently using smartcard facilities
 Telecommunication.
 National Population Register Project.
 Public Distribution System.
 Pay TV.
 Loyalty Cards.
 Financial Services. Credit / Debit Cards. Financial Inclusion.
 Travel Identity. Driving License.
 Automated Fare Collection. Metro Rail Projects.

5.2 To study implementation of smart card based driving license

A Smart Card Driving License (SCDL) is a tamper-proof Driving License in form of a plastic card
with an embedded microprocessor chip of 64 kb memory which will have all information about the
DL-holder stored in it. Though not applicable in all Indian states yet, this Smart Card DL is a far
superior than the normal driving license as it holds the license holder information on one single card.
All the biometric data of the applicant like their blood group, thumb & fingerprint, retina scan, body
markings, etc., are recorded on the smart card DL and is also held by the RTO / RTA office. For this
purpose, the RTO department of each state (where these types of licenses are issued), has special
software installed that can read the embedded information in SCDL. The biggest advantage of this
Smart Card DL is that one no longer has to constantly worry about the driving license tearing, getting
cut, getting wet, etc., making it easy to carry in one wallet itself. Another useful advantage of this
Smart Card type DL is that it will help the transport department maintain and safe keep the data of
licence holders, which can be helped to track and trace any defaulter with the help of their biometric
data. A smart card driving license is far superior than the normal driving license as it can hold
information. Here are some of the benefits of smart card driving licenses that are going to steer the
future.

17
 Advantages of a Smart Card Driving License

 The Smart Card Driving License will store all details of the holder including signature, photographs,
biometrics and personal details. As these details will be held in electronic form readable only by
special devices, there will be no way to tamper these details or fake identity.
 The State Transport Departments that offer Smart Card Driving Licenses will also offer mobile hand
- held terminals to traffic policemen who will be able to decode the information held by the card in a
jiffy.
 The information carried by the smart card including the date of issue can only be modified.
Information carried by the Smart Card Driving License cannot be erased which provides for a
permanent audit trial.
 Smart Card Driving Licenses will prevent the issuance of fake registration certificates and bogus
driving licenses.
 The data in Smart Card Driving License is stored in an optical strip that is designed to prevent
unauthorized access and tampering of data.
 The Smart CBard Driving Licenses are expected to positively impact road safety since the driving
licenses cannot be tampered and all information will be recorded. It will also enhance efficiency in
law enforcement.

Documentation for Smart Card Driving license

When applying for a Smart Card Driving License, you must submit the documents given below.
Keeping the necessary documents handy will not only speed up the Smart Card Driving License
application process but will also make it hassle free. Here is a list of documents that you will require to
get your SCDL.
 Completely filled application form for Smart Card Driving License.
 Medical Certificate - Form 1 A and 1 which is to be signed by a certified Government doctor (if
applicable).
 Application Fees
 Copies of passport size photographs
 Age Proof - any one document from the below given list:
 10th Class mark sheet
 PAN Card
 Transfer certificate from any school (with the date of birth printed on it)
 Birth Certificate
 Passport
 Address Proof - any one of the below-given documents
 Aadhaar Card
 Passport
 Ration Card
 House Agreement
 Recent utility bills (gas bill/electricity bill or telephone bill)

18
  In case you reside in another city, you can submit a copy of a recent utility bill plus the rental
agreement as address proof. Alternatively, you can also get a letter from your employer

SMART CARD BUS WITH

HOLDER
Validation SMARTCARD
VALIDATION READER AND GPS
(boarding)

user info fares

Boarding data PLANNED ROUTES AND RUN

FOR THE BUS

SMARTCARD ISSUE LOCATION

SIVT SERVER
User and card info

SMARTCARD RECHARGING LOCATION

USER BOARDING
DATA DATA

Financial Transaction
OVERALL PLANNED
ROUTES AND RUN
report

SERVICE OPERATION
ACCOUNTING SYSTEM INFORMATION SYSTEM

19
5.3 To study tender management and operation at ITI Limited.
PROJECT DEFINITION AND
SCOPING

SELECTION PROCESS OF
TENDER

TENDER PREPRATION
TENDER DOCUMENTATION

SELECTION PROCESS

CALL FOR TENDER

RESPONDING TO INVITATION
TO TENDER & DEVELOPING
THE COMMERCIAL OFFER

TENDER MEETING &ENQUIRIES

TENDER PERIOD

AMENDMENTS TO TENDER
DOCUMENT

SUBMISSION &CLOSING OF
TENDER

20 TENDER MEETINGS & ENQUIRES

 TENDER ANALYSIS

TENDER EVALUATION TENDER CLARIFICATION

TENDER SELECTION AND AWARD

5.3.1 Project tender objectives

The objectives of the tendering process are to

• provide an environment that encourages interest and competitive offers from suitably qualified and
experienced construction contractor so obtain a fair price and best value for undertaking construction
works

• obtain a clear understanding of the rights and obligations of all parties

• allow resolution of general issues requiring clarification to all tenderers

• allow resolution of specific matters only relevant to a particular

tenderer’s bid

• reduce the likelihood of misunderstandings and disputes during

the construction phase

• secure a construction contractor to undertake and meet the

5.3.2 Project tendering choices

There are a variety of approaches in which a lot feeder may approach the market and conduct the
tender process. These include
21
5.3.2.1 Call for Registration (CFR) - A Call for Registration is an approach to market used by a lot
feeder to seek details about potential suppliers of a good or service.

5.3.2.2 Expression of Interest (EOI) - An Expression of Interest is used primarily to determine the
market’s ability or desire to meet the lot feeder’s procurement need, after which the lot feeder may
need to collect additional information to make procurement decisions. An EOI is not an invitation to
bid, is not binding on either party and is usually followed by a selective Request for Tender based on a
more detailed specification.

5.3.2.3 Request for Information (RFI) – A Request for Information is commonly used on major
procurements particularly if the lot feeder’s requirements could potentially be met through several
alternate means. A RFI is not an invitation to bid, is not binding on either party and in some
circumstances may be followed by a selective RFT, RFP or RFQ.

5.3.2.4 Request for Quotation (RFQ) – A Request for Quotation is used when detailed specifications
of a good or service are known and competitive bids are to be evaluated, mainly on price.

5.3.2.5 Request for Proposal (RFP) - A Request for Proposal is used to directly purchase goods or
services when the lot feeder clearly understands its business needs but does not have defined details of
the solution. This approach is often used for the procurement of professional services.

5.3.2.6 Request for Tender (RFT) - A Request for Tender is used when a lot feeder is seeking
potential suppliers for a scope of work that has been designed and specified in detail. A RFT is often
used for building and construction works, plant and equipment and evaluation is based on price and a
range of technical factors. This approach is outlined in detail below.

5.3.2.6.1 Project definition and scoping

The commencement of the Request for Tender (RFT) is the development of the project definition and
scope which will set the scene for the success of the entire process. In the best interests of the project,
it is recommended that the lot feeder ensures the following

• A Project Brief is prepared that clearly defines the scope of the project for which Tender Documents
are to be prepared. This document must define all project requirements (including envisaged
functional goals, performance, technical criteria, completion dates or term date requirements) for the
project. Any known constraints associated with the delivery of the contract should be identified up
front (e.g. public access requirements, availability of land, limits to work, approval conditions). Failure
to include all scoping requirements may result in expectations not being met, and disputes or increases
in cost at a later date.

22
• A cost estimate is established based on the scope defined in the Project Brief, which should include
the proposed risk allocation between the lot feeder and the tenderer. Costs need to be estimated for all
resources associated with the project (including labor, materials, and supplies). In this way, the
proposed scope may be adjusted in line with the budget.

• A time estimate is established based on the scope defined in the Project Brief. This involves the
definition, sequencing and duration estimation of individual project activities.

• A cost/benefit exercise is carried out, taking into account the initial cost estimate, time estimate and
expected costs/revenues over the life of the project.

• An appropriate budget is allocated and finance arranged to develop the project.

• Appropriate time is allowed to undertake these activities.

5.3.2.6.2 Selection process

The four main processes for the selection of tenderers are outlined below:

Selection process Description Examples

Open or public The lot feeder invites tenders by way of public Simple projects that are low risk
tenders advertisement without and low cost.
restriction on the number of tenders received.

Selected/ The lot feeder invites a select number of tenderers Repetitive works regularly carried
approved/invited for a particular out by a lot feeder.
tenderers project. In some cases, the lot feeder will have an Specialised projects
established register
of approved contractors for particular types of work.
In these cases,
tenderers have a recognised capability to undertake
the type of project
planned. Tenderers are generally invited on a
rotational basis.
The register of contractors needs to be reviewed and
updated on a
regular basis.

Pre-qualified The lot feeder invites expressions of interest by way Complex projects that are high risk
tenders of public and high cost.
advertisement for pre-qualification for a specific
project or specific
types of projects.
Evaluation is carried out against the defined
selection criteria.
A selected number of pre-qualified tenderers is then
invited to tender

23
Direct The lot feeder negotiates with a single tenderer Highly specialised projects in
negotiation which
only one entity has the required
skill and current capacity to
undertake the work.

5.3.2.6.3 Tender documentation

The content of the tender documentation will vary for particular projects according to factors such as
project size, complexity and delivery method. The documents will contain the evaluation criteria,
the evaluation procedures and the proposed timing of the evaluation process as outlined.

Document Type Description

This document contains a project summary, a listing of tender documents
Notice to relating to the project, key dates,
tenderers validity period of the tenders submitted, contact details, number of copies of the
tender required and details
of tender submission location and timing.
This document details the overall tender process including the delivery method,
Conditions of
probity issues,
tendering
communication issues, the criteria for selection and the evaluation process.
These documents request specific information from the tenderers concerning the
works. For example,
tenderers are generally required to provide an overall cost, a breakdown of this
cost, a program, details
Tender form and of key personnel, plant and equipment, subcontractors to be used and
schedules methodologies. The tender form is
a formal statement of the tenderer’s offer to supply services in accordance with
the tender documents. A
useful example of a tender form can be found in Australian Standard AS 2125 -
1992.
This document contains the general conditions of contract which sets out the
contractual basis for carrying
Conditions of
out the works.
contract
In addition, special conditions are sometimes included which are unique to the
lot feeder and/or project.
Depending on the type of delivery method chosen, this document may be a
project brief or a detailed
Specification
technical specification of the works. These documents set out the performance
and technical criteria for the

24
 project.
The number and standard of drawings provided is dependent on the chosen
Drawings
method.
Additional information concerning the project may include Development
Additional Approval Conditions,
information Environmental Impact Study (EIS) reports and other documents relevant to the
development of the project

5.3.2.6.4 Cost of tender documents

The cost of printing tender documents can sometimes be quite high. A document fee to cover printing
costs is sometimes charged, or a refundable deposit is charged to encourage the return of complete
and undamaged sets of tender documents. The amount of any document charge or refundable deposit
and the conditions for the return of deposits must be clearly stated in the tender advertisement.

5.3.2.6.4.1 Amendments to tender documents

A structured review of the tender documents prior to the issue will minimize the requirement to amend
tender documents due to errors or omissions. Where significant issues arise that make it necessary to
amend the tender documents during the tender period, the amendments advised as an addendum,
forwarded to all tenderers. Each addendum is issued in sufficient time for all tenderers to consider
the amendments properly and fully before tenders close. The tender period may need to be extended,
particularly if the addendum issued late in the tender period. Each addendum contains a returnable
covering sheet so that tenderers can acknowledge its receipt in writing. A statement of confirmation
that allowance has been made for each addendum is required in the submission of the tenders. The lot
feeder should ensure that each tenderer acknowledges receipt of each addendum in writing and
confirms in their tenders that allowance has been made for each addendum.

5.3.2.6.4.2 Submission and closing of tenders

It is recommended that the lot feeder ensures that:

• The security and confidentiality of all tenders received is achieved following the closing of tenders.
Procedures for the security of documents, access to documents and the availability of price-sensitive
information are to be developed in advance of the closing of tenders.

• Tenders are generally received in a secure tender box and opened in the presence of a specially
qualified team (not less than two people).

• One copy of each of the tenders (the original) is separately stored in a secure location from working
copies, for reference purposes.

• Typically, the timing of the closing of tenders is

25
  not earlier than 2.00 pm.
 not on a Monday or day following a public holiday.

• Each tenderer is informed in writing that its tender has been received.

• In the event that the lot feeder is prepared to consider late tenders and non-conforming offers, the
conditions in the tender documentation should describe how the lot feeder will treat late
tenders and non-conforming or alternative offers.

5.4 To study future of ITI in the smart card business

The future of Smart Cards is looking bright. The many existing and potential benefits smart card has to
offer both the public and the private sectors of the industry raise the interests of many large
corporations such as Wachovia and Motorola. Compared to the conventional magnetic stripe cards,
smart cards offer increase security, convenience, and economic advantages. Reducing fraud, reducing
time to complete redundant paperwork, and having the potential to have one card to access diverse
networks and applications are just some of such examples. The discussion for the future of the smart
card across the global industries can be divided into public and private sectors and are discussed
below.

5.4.1 Public Services

With the increase in the application development (due to the implementation of the smart card
standards) and reducing cost in technology, plans for the card’s usage have increased. However, the
majority of the applications are either being piloted or implemented in Europe, but are not widely
accepted in the U.S. just yet.

5.4.2 Health Services

Health cards with multiple functions are issued to patients in France. The card can be used to store
information such as administrative, medical, biological, and pharmaceutical records. The card
simplifies the administrative process and enables doctors to have access to more complete and
comprehensive healthcare information.

5.4.3 Education

Multifunction ID cards are issued to students at university campuses and schools. The card has the
function of identifying the student and also acts as an electronic purse and can be used purchase
products from stores or tickets to public transportation.

26
5.4.4 Transportation

Rechargeable contact-less cards allow ticket-less and cash-less travels. Parking and
telecommunications can also be paid using the smart card. This will simplify the passenger boarding
process.

5.4.5 Welfare

The card can be used to identify the holder using a series of personal keys and fingerprint. The
cardholder then uses the card to access government databases and receive the welfare payment. The
security will help eliminate fraud.

5.4.6 Entitlement Documents

Information such as those on a driver’s license can be stored on the smart card, along with an up-to-
date driving record including fines and offenses. The new system can help the government keep track
of individual’s records and have a higher success rate in collecting fines.

5.4.7 Telecommunication

The card can be stored with cash values and thus remove coins from public phones. This will reduce
vandalism and operating costs, and increase revenue (the study has shown that people using the card
tend to talk longer on the phone).

5.4.8 Private Industry

Originally developed as a stored-value card to make small value transactions (< than $20) easier.
Today, over 80% of transactions are in the form of cash. Using smart card can lower transaction cost,
handling cost, and costs associated with banking system infrastructure supports. The card will bring
many conveniences to the consumers by combing the functions of multiple cards into one and given
the ability to make transactions on/offline and peer-to-peer. The card is currently widely used in
Western Europe and Asia, and which leads to potential advancement in markets such as banking,
Internet, and electronic commerce.

5.4.9 Banking

The limitations of the magnetic stripe and the problems with fraud and bad debt can make smart cards
a better choice. It not only can store 80 times more information than the traditional card, but it can also
help banks to have better control over credit risks by enabling banks to customize credit lines based on
individual cardholder’s risk profiles and alter the parameters dynamically as needed. Also, the
financial institutes can also offer more personalized products and services to fit cardholder’s lifestyles.

5.4.10 Internet

The card can contain all necessary personal data for easier Web connection and personalize
networking. The card, with all personal information such as user’s ID, e-mails, settings for electronic
appliances, and phone numbers stored on the card itself instead of a remote device, will be able to
27
allow network connection anywhere globally as long as there is a phone or an information kiosk. As
appliances become generic tools, users will have the convenience of carrying the card alone to have
personalized networking experience.

5.4.11 Electronic Commerce

According to the Gartner Group, it is expected that Internet purchasing will grow to $20 billion by
2000 worldwide, with security and portability in payment transaction over the network continue to
play an integral role to the success of this marketplace. The SET protocol will provide a mean to
transport customer data and payments information securely over the Internet without having to be
locked into using one PC. Electronic cash stored on cards will enable consumers to make
micropayments (penny-payments) over the internet.

28
 CHAPTER VI

FINDINGS & CONCLUSION

6.1 FINDINGS

The study shows the business opportunities present in smart card. With the technological
advancement we can understand the various uses of smart card. The project also studies the
process of tender management which is crucial for any business in growing their business.

29
6.2 CONCLUSION

The project describes various uses of smart card and how it is presently used by organisations to
improve their transactions as well as getting information regarding their customers. The project
also describes the process of tender management at Indian Telephone Industries Limited.
Tender management helps in business development as well as strategic management.

30
CHAPTER VII

BIBLIOGRAPHY

31