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IT IT Procurement Lessons learnt in the NHS Matthew Perrott – Strategic Contracts Manager matthew.perrott@wales.nhs.uk @perrottmatthew
Agenda IT Procurement Considerations Software and Hardware The C Word Buying Complex Solutions Benefits of IT and Procurement 3
a bit about me… • 8 years in NHS Wales Shared Services Partnership covering; • Utilities • Medical Supplies • Pharmaceutical • Homecare services – Enteral & Parentral Feeding • Home Oxygen Services UK Framework with DoH • 2015 took post as Strategic Procurement Lead IM&T at NWSSP • February 2017 joined NWIS Strategic Contracts Manager primarily focussed on GP systems and 111 Wales procurement. 4
IT Procurement Considerations 5
Informatics Through the Ages Stone for inscriptions: Palaeolithic Cave Art: c. 3,500 BCE c. 75,000 BP Clay tablet for writing Cuneiform: Paper: c. 2,500 BCE c. 3,500 BCE – 75 BCE Author: John Frankish, 2017 Wax tablets: c. 1,400 BCE 6
IT Procurement Considerations • Its nothing out of the ordinary • just Goods and Services • Security and Certainty through Conformance • Innovation through Performance • There is no leading edge Adapt what you have, Adopt what you need or Innovate • Don’t look at IT for cash releasing savings • IT enables the savings but doesn’t create them • Systems create efficiency – users create effectiveness • There is always a way to create quality value though 7
IT Procurement Considerations • Terms and Conditions are King! • Hardware – Simple Purchase of Goods • Hardware with support – Goods and Services • Software – Licensed goods • Systems and Solutions - Managed Service • Nearly always use a model form / standard contract • Ensures ability to manage • Creates level field for integration services 8
Terms and Conditions • Public Sector – Crown Commercial Services • Supply of Goods and Provision of Services Replaced SIMCON & SSCON requires more tweaking for fist use but has excellent coverage • Model Form Services & ICT Contract Developed by Government Legal Services (UK Cabinet Office) Developed in partnership with Public Sector and Supplier market Groups Made up of a number of documents or Schedules in addition to the Terms and Conditions 9
Software and Hardware 10
Software Everything and anything needs to be licensed • Licences need to be applied to; • servers where the software resides, • the applications accessing it for data • The instances that run • Terms of the licences are rigid and usually only valid from the day that the license key is delivered. • The clock starts ticking if you have installed or not – timing is critical • Asset sweat relies on up to date records and own audit ability 11
Software – how to approach it • 2 main approaches to licencing • User Based Licensing • Device Based Licencing • Using only one approach will cost more money than needed • All licencing needs a hybrid model and lots of thinking • Application is critical An acute hospital ward has 4 device terminals and 12 users TGA office has 500 users and 300 devices 12
Software – how to approach it Asset management software to manage all of the organisations licenses • Harvest and re-issue licences from devices or users • Allocate licences • Manage the contract renewal cycle and aggregate demand • Transparency of users across the organisation SAP UK Ltd and Diageo Great Britain Limited £54M awarded to SAP for missed license payments by third party access to data made available to Diageo customers 13
Hardware – Devices & Infrastructure • PC’s ,Laptops, Tablet & Mobile Devices • Multimedia and Hub devices • Storage • Network devices, load balancers, firewalls…. • Capital Items, Conformance based specification, volume purchase wide market. • Think long term, obsolescence, model supersedes and monthly price variation to USD exchange 14
Hardware – the difficulties Typical hardware procurement hurdles • Brand comfort • Interoperability • Quantifying the unquantifiable • Understanding the future needs and opportunities • Unpicking the technical reasons from the technical noise • Managing a fair and transparent specification 15
Hardware – Environment On Premise Hosting Datacenter Provisioned Third Party Hosted The C word 16
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Cloud Services “Simply put, cloud computing is the delivery of computing services — servers, storage, databases, networking, software, analytics, and more —over the Internet (“the cloud”). Companies offering these computing services are called cloud providers and typically charge for cloud computing services based on usage, similar to how you’re billed for water or electricity at home .” Microsoft, 2017 18
Cloud Services Structure • Infrastructure as a Service (IaaS) • A virtualized computer environment delivered as a service over the Internet by a provider. Infrastructure can include IaaS servers, network equipment, and software. • Platform as a Service (PaaS) • A computing platform (operating system and other services) delivered as a service over the Internet by a provider. An PaaS example is an application development environment that you can subscribe to and use immediately. • Software as a Service (SaaS) •An application delivered over the Internet by a provider. Also called a hosted application. The application doesn’t have SaaS to be purchased, installed, or run on users’ computers. 19
Cloud Services – The benefits • Zero Capital overhead • On demand services – only pay when you need them • Infinite capacity • Security and Backup • Technical expertise – more experts • Organisational agility and market responsiveness • Instant version update control • Focus on the What not the How 20
Cloud Services – The Pitfalls • There is no return • Subscription for life • Always online – no bandwidth = no production • Where data is stored at rest, exchanged and compute differ • Visibility of network • Terms and non-negotiable • Add on’s come at a cost – in a closed market 21
CLOUD Services – Things to consider • Looks great in the short term but it’s a long term game • Consider the compute and business process that are core • Its offshoring for the digital era • Great for peripheral activities • Do the cost savings balance the technical risk • Can you create synergies with suppliers and customers • Dos third party hosting offer as effective a solution • In NHS Wales there is a zero cloud policy for all PID and CD • However GPs will have eMail on O365 and Cloud device reg services • Secure connections to third party hosting for hybrid solutions 22
Buying Complex Solutions • Similar to a building or infrastructure procurement • Set timescales – political & regulatory obligations • Budget Constraint • Spider-web integration with existing infrastructure • We know what we want but not how we want it • No two contracts are the same • What do complex systems look like? 23
Welsh System Integration design WCP Image WCP WCP Capture WRDS Welsh Integration Services LIMS Primary eForm Care Content Library Record Results and Imaging Index Documents Reports Archive (WCRS) RIS (WRRS ) (WIAS ) RIS RIS RIS RIS Cardiology Master Patient CCUS Medicines Index Database Archive (MPI) RIS RIS Other Diagnostics Welsh Integration Services CCUS PAS
Buying Complex Solutions For requirements of this nature NHS Wales use Competitive Dialogue The key features are: OJEU Detailed Trial PQQ Shortlist Trial ISFT Advert Dialogue feedback Call Off Award Evaluation ISFT 25
Feature Stages of a Competitive Dialogue • Detailed Dialogue • to refine our requirements • to develop Supplier understanding of our requirements • Trial ISFT – to improve consistency of the final bids • follows Detailed Dialogue • last opportunity for bidders to get feedback on understanding of requirements • ISFT – the final submissions • Clarifications – this is not negotiations or changes • strict management via Secure eSourcing portal Contract Award 26
Benefits of IT Procurement It enables the business to strive Creates a robust basis for strategic development Secures the foundations to deploy services to customers Creates business synergies up and down stream It’s the second most important resource after people When IT & Procurement professionals work together as partners the business is robust in exploiting its strength, defending its weakness, spotting opportunities and blocking threats. 27
Questions 28
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