SAP Labs India:

Co-innovation in public procurement system

Group 2
Barnali Roy (PGP13014)
Harish V (PGP13025)
Nirjhar Datta Choudhury (PGP13036)
Richa Prasad (PGP13045)
SVSK Balagangadhar (PGP13047)
Anitha Raj (PGP13069)
Karthik Chandra Akula (PGP13091)

Case Introduction
Protagonist:
Ramakrishna Potluri, Lead Consultant, SAP
OILGIAN
Task:
To design an e-tendering module as a part of e-procurement
solution for public sector
Alternatives Available:
To create the solution In-house
Involve the system integrators to design the solution
To create the solution directly with the customer
Dilemma :
Which business model to follow to make the public-private coinnovation successful ?

Co-creation

Knowledge sharing
Sharing of
Infrastructure
Enhanced solution
and better product
for Indian Public
sector
Strengthen relation
with SAP

System
Integrators
Quick Solution
But Ownership and
productization of
solution would be
questionable

In-house
Will lack domain
expertise
Infrastructural
dependencies

Comparison of the Alternatives

SAP-OILGIAN Journey

SAP solutions helped OILGIAN in

standardizing the processes
Challenges:
To standardize more than 200 business

processes
Around13000 users
More than 500 off shore and onshore locations
In just 30 months

The e-procurement module

It involved the acquisition of good and services with out the use of paper
processes
It improved efficiency
The main dimensions were technology, process reengineering and change
management
Components involved: Consolidation of requirements, publishing the requirement
to the bidders and tender fee requirements. (fig shown in next slide)

The e-tendering module

Business Need

Important factors for e-tendering: transparent and auditable

processes, fairness in vendor selection, improvement of corporate
image

Wanted e-tendering to hold the log of activities for audit

Added security

Enable sharing of technical audit reports to vendors

e-Procurement Components
Tender Fee
Payment

Publish
Requirement

Consolidate
Requirement

Download
Tender

Upload Bid

Reverse
Auction

Bid Opening
&
Comparison

Tender Award

Supporting
Document

Enhanced
Supply Base
Reduced
Spend

Different Business Models

The exchange or the bartering coinnovation

Two alliance partners provided/shared

resources to serve the client effectively

Disadvantage:
It was not highest value creator
In additive mode, the rare and complementary
resources helped in receiving value and formed a
fringe business model

Different Business Models

Contd.
The Synergetic integration model

Involved reinforced working, trust, independence and relationship

alliance
Components: Deep domain knowledge, fusing of resources and
collaborative spirit which creates high value in long run
# Adopted this model to build the e-tendering module

Advantages:

Collective technical capabilities of both SAP and OILGIAN

Simplicity of SAP
Adaption of technology by OILGIAN
IT Support from SAP
Learning capabilities of both

Thank You