The PPS (Public Procurement Service, www.pps.go.kr) of KONEPS (Korea On-line E-procurement System) is emerging as a paragon of home and abroad institutions, needless to say its diffusion groundwork preparation into public organizations.
PPS' KONEPS civic operation commission project, which was introduced in the van of not only civic enterprise, but also internationally, pays off greatly. From its seminar regarding KONEPS's operation commission example study held on November 14 in Seoul, A member of PPS said that "KONEPS has overcome the doubts of public IT service operation commission, which has been raised continuously from related business and academic circles in the past."
A PPS official responsible for KONEPS's operation explained that "as a result of the PPS introduction of innovative price calculation and its operation commission's operation system in late 2005, the PPS's service has gained KONEPS's operation stability and effective budget management."
In fact, despite the continuous increase of KONEPS users, customer satisfaction appears to be steadily improving KONEPS's operation stability has been secured, and the service obstacles have diminished. According to the PPS's statistics, user increase rate appeared to be 190,000 in 2004, 220,000 in 2005, and 240,000 in 2006. Nevertheless, customer satisfaction degree appeared to be 74.5% in 2004, 76.8% in 2005, and 80.3% in 2006. KONEPS's obstacle rate also has been diminished by 0.11% in 2004, 0.05% in 2005, and 0% in 2006.
Since the PPS has introduced KONEPS's operation commission system in 2005, operation commission scale has continuously increased thanks to continuous service improvement and additional development projects. However, by introducing a performanceoriented contract management system, the PPS became efficient in budget management, according to its officials.
The service has concluded a threeyear long-term contract since the PPS introduces its operation commission system in 2005, paying attention to long-term operation efficiency and performance stability. Thereby, outsourcing business providers can result in qualitative improvement of the service in the long run, according to PPS officials.
Many years contract mode
The PPS, on the other hand, held a seminar regarding KONEPS's operation commission on November 14 to recertify KONEPS operation commission's stellar performance over past three years. In a presentation regarding KONEPS's operation commission innovation performance report, director Kwak Young-hee, Information Management Team, PPS, said that "the PPS has boosted KONEPS's stability, external and in-house confidence by means of introducing performance-oriented operation commission contract system and constructing ITIL-based ITSM (IT Service Management) system."
Accordingly, PPS's vision is to serve as the best public material resources procurement and management-specialized institution by increasing KONEPS system's stability and efficiency, boosting KONEPS service's confidence level, and by establishing an e-Government service operation's exemplary case, according to Kwak.
By means of many years contract mode, KONEPS was able to improve its service quality gradually, Kwak said. For example, accumulated knowhow utilization was difficult in the past by shortterm contracting and frequent change of the operator.But now, KONEPS secured operation stability by a long-term contract, contrary to the case for annual service replacement.
By reflecting operation process's improvement into next year operation plan, KONEPS brought about obstacle minimization and customer satisfaction improvement through effective system management, Kwak said. In regards to major performances of KONEPS, he first of all named that this system was able to develop as a worldwide Best Practice by developing convenient and diverse customer-oriented content such as Ubiquitous technology and Web services and by means of system improvement like e-procurement's stability and security strengthening.
By means of advanced IT operation system introduction of KONEPS and automation system construction, system operation' stability and confidence have been boosted, the director said.
The best e-Government model
Concerning advanced operation commission project's example report, program coordinator Mr. Oh Yeon-chil, Information Management Team, PPS, pointed out: "For KONEPS, it is necessary to secure operation's efficiency through operation organization's consolidation and manpower's rearrangement."
Furthermore, he said that standardized operation procedure is insufficient to secure stability and confidence about service operation.
Nevertheless, Mr. Oh named as regarding staple outcome in the meantime that KONEPS has acquired BS15000 certification on November 2005 for the first time for public organizations and operation commission innovation also was adapted as e- Government excellent example. What's more, Oh said: "PPS' KONEPS has provided a model for the sake of competitiveness strengthening of domestic IT service industry plus customer satisfaction degree improvement through customer-oriented service operation improvement."
In conjunction with such PPS' bold operation commission contract innovation attempt, the press reported: "It is expected to be linked to e-Government service's quality ultimately and our country SI business circles competitiveness boost as it is diffused to public IT service at large and is established as a pan-governmental IT service standard operation model."
The press further said that PPS allowed domestic barren IT outsourcing (ITO) market to bud by outsourcing this KONEPS system operation. In connection with tasks in the years to come, Oh said: "PPS is in the van of pan-governmental IT service operation innovation such as ITSM construction or advancement-model operation commission, but more aggressive efforts are needed like consulting commercialization or knowledge-model IT contract consulting service development."
IT Governance needed
Through his presentation regarding ISO2000 certification and ITSM construction example, deputy director Kim Eul-sig, Information Management Team, PPS, introduced: "KONEPS is a pangovernmental e-Procurement system which 36,000 public institutions and 170,000 enterprises are using, allowing each notch institutions and enterprises to carry out procurement affairs on-line if they hold PC alone connected to Internet."
KONEPS' major functions include the whole procurement affairs online dealing, One-Click purchase support through E-Catalogue [shopping mall], and One-Stop service embodiment connected to 80 external institutions such as the Ministry of Government Administration and Home Affairs and finance institutions.
He boasts that KONEPS is the largest e-marketplace through which yearly 44 trillion won (US$47.8 billion) is dealt, 180,000 persons visit every day, and approximately 140,000 documents are transacted online. On top of that, 6 trillion won (US$6.5 billion) is dealt through shopping mall and e-bidding rate is 93%.
With regard to its operation outcome, Kim noted: "KONEPS has boosted public procurement's transparency, improved procurement administration's productivity and efficiency by reducing annual 4.5 trillion won worth, and hauling civic e-Commerce development by diffusing e-Commerce infrastructure.
As a result, international community is recognizing KONEPS as the best e- Government model. Moreover, KONEPS serves as an object of benchmarking from several countries in the world and is assessed as a representative example of Korea e-Government service, Kim presented.
Professor Hwang Kyung-tae, Dongguk University, advised IT governance development direction for PPS by saying that for more systematic IT management, IT management system construction including EA, PPM etc. and efforts for IT governance mechanism construction are needed.
He further proposed that for IT management process/system's construction, IT governance is necessary and continuous/ effective change management is needed for the settlement of IT management process/system whose propulsion is under way.