Question:
Prior to the project workshop and the project surgeries, you will be required to submit your project proposal
(see Appendix A). Proposals need to be approved by your line manager before you submit to your
Programme Lead. Once the Programme Lead receives all the proposals, they will be sent to the programme
sponsor for final approval. Once the approval process is finalised, copies of all the proposals will be sent to
the tutor who will be running the project surgery sessions in order that they are aware of what projects you
are working on and can prepare appropriately for your one-to-one discussions.
Once your project is approved, you must not change it. If for any reason, that is acceptable to your
management and CIPS, you do need to change your project, then you must submit another project proposal
which will need to go through the approval process again. When completing your proposal you should
consider carefully the following:
Proposed Title – this can be refined at a later stage, the most important thing is that the title provides
a clear indication of the research covered
Aims and Objectives – the clearer these are the more likely you are able to keep in mind what you set
out to do
Proposed structure
Main method(s) to be employed
o Questionnaires
o Statistical treatment
o Interviews
Sources of information to be used
Reasons for selecting this topic
Deliverables
Solution:
Final Project: Re-modelling of IT Procurements with a Digital Transformation. A Case Study of Sidra medicine Sourcing Approaches
Executive Summary
The core aim of this project was evaluating the best strategy adopted in re-modelling of IT procurement by embrace of digital transformation in Sindra Medicine Organisation. This is for ensuring the organisation adopt a successful sourcing and procurement of right product and at the right time by increasing efficiency and effectiveness of their operations. The evaluation which has been carried out by focusing on non-trading items in the organisation and particularly medicine supplies. A successful achievement of the identified aim would lead to Sidra achieving below sustainable outcomes;
For the purpose of appreciating the importance of using technology in remodeling Sidra Medicine, a set of analysis tools have been applied including the Porter’s 5 Forces (complexity analysis), supplier preferencing, stakeholders analysis and more. Also, set of CIPS tools and techniques have been applied for analysing the contract management and best practice in remodeling of the IT procurements with digital transformation. The data used in the evaluation have been sourced through the application of both the primary and secondary data. This is guided by current Sidra business portfolio and also risk management. The findings in this assessment indicate that to avoid incurring the $70 million in losses from their current procurement system, remodeling would mean improved efficiency and effectiveness hence cost reduction. Sidra Medicine similarly has improved on their approach of products and suppliers management with risks management being efficient. This is in the various taxonomies and categories of appropriate spend information.
In line with the findings analysis and data, a set of recommendations could be generated for current report. These are;
Table of Contents
1.1 Project Title (Key Terms) 4
2.3 Why Project Matters and Objectives 10
1. Determine the business requirement 16
2. Make a list of potential vendors. 16
3. Choose a vendor and negotiate contract conditions. 17
4. Make an order for something. 17
5. Take possession of the products and services. 17
6. Make a payment + reconcile the documentation. 17
Step 1: Definition of the category. 20
Step 2: Evaluate the Category’s Function. 20
Step 3: Evaluate Your Work. 20
3.1 Sidra Medicine ERP system as Current eProcurement Approach. 20
3.2 Digital Procurement Remodelling in Sidra Context 25
5.3 Sidra Procurement Team Implementation of Re-Modelling of their Procurement System.. 41
6.0 Conclusion and Recommendations 44
Appendix 1: ERP System Purchasing Order Lifecycle. 53
Appendix 2: Sidra Medicine Portfolios. 54
Figure 1:Sidra Procurement Phases 6
Figure 2: Change Strategy Influencing Factors 13
Figure 3:Organisation Change and Culture Acceptance. 14
Figure 5:Organisation Matrix Structure. 17
Figure 6:Sidra Procurement Cycle. 18
Figure 7:CIPS Notes Category Management Model 21
Figure 8:Sidra Medicine STEEPLE Analysis. 23
Figure 9:Sidra Medicine Stakeholders Analysis 24
Figure 10:Sidra Medicine Product Life Cycle Phases 25
Figure 12:Industry 4.0 in Remodelling of Sidra Procurement system.. 30
Figure 13:Porter’s 5 Forces Analysis 31
Figure 14:Kraljic Matrix Analysis 32
Figure 15:Sourcing Strategies features potential for Sidra organisation. 33
Figure 16:Risks in the Project Implementation. 38
Figure 17:Different Supply Risks and Mitigation. 38
Figure 18:Stakeholders mapping through change process inclusion. 41
Figure 19:Rationale for remodelling Sidra Procurement 42
Figure 20:Challenges of digitisation of the procurement system.. 43
Figure 21:Sidra Implementation of Tuckman theory of group dynamics 44
Figure 22:Sidra Implementation of the Remodelling of their procurement Belbin Model 46
Table 1:Summary of PESTLE Factor Analysis: 9
1.0 Introduction
1.1 Project Title (Key Terms)
A future development in supply chain management and procurement (SCM) is instrumental in today organizations due to their impact on efficiency, reducing costs of operations and effectiveness. According to Handfield et al. (2019), this ensure an organization is positioned for leveraging on competitive advantage and broadening their market dominance. Particularly, in current COVID-19 pandemic, in Qatar Health sector, there have been complications impacting the success of their operations. Following the pandemic, the healthcare industry was forced to make immediate operational changes. When it comes to adopting and refining new technologies and improving digital transformation maps, the healthcare industry has lagged behind many other industries and sectors prior to a pandemic. According to a recent study on digital maturity, healthcare organizations lag behind other industries by nearly a decade in implementing business technology that can aid with consumer engagement. Increasing expenses are putting a lot of pressure on the healthcare business, and organizations are scrambling to stay competitive and run more efficiently (Boncz, Kaló, Mohamed Ibrahim and Greenberg, 2013).
Considering the Sidra Medicine (SM), despite of already investing on ERP system which is an improvement of the previous ERP solution, Lawson, the organisation is perhaps yet to integrate a re-modelled procurement system informing on the necessity for the organisation initiating investment in famous industry 4.0 technologies (Jahani et al., 2021). Remodelling of their procurement would mean that Sidra organisation leverages on competitive advantage and dominate Qatar healthcare sector. The organisation would be able to source products in right time and quality/quantity. The remodelling would imply that the procurement process currently adopted in SM would be improved in the figure 1 areas;
Figure 1: SM Procurement Phases
As illustrated in figure 1, the organisation can prioritise on technology embrace in categorising and managing their spend by embrace of technologies such as Cloud technology, Artificial Intelligence, Machine Learning and Blockchain, some healthcare tailored tools. Also, by remodelling the system, up to 40% of the entire costs are saved with globally renowned procurement organisation reducing process costs. For processes optimisation, digital technologies which include cloud practice, infrastructure development and application. This is to ensure that they have remodelled their services provision process. By integrating the identified technologies in different phases of their procurement cycle, the issue of resources would be solved. Also, the management, CIO and executive directors would be able to work collaboratively hence lowering the overall resources demand.
In the hospital, digital transformation and technology have always played a vital role in improving healthcare conditions, and it also plays a key role in easing some of the difficulties faced by hospitals and clinics dealing with the challenges. Telehealth, artificial intelligence, and secure infrastructures can help hospitals become more efficient, minimizing human error and eventually enhancing patient safety. Although the idea of using technology in healthcare has been around for a while, its popularity has skyrocketed in recent years. In the field of medicine, AI has allowed for amazing advancements. It can be used to speed up DNA analysis from 30 hours for one sample to 96 hours for 96 samples in one day. It has been widely used in imaging and radiology to provide information about tumours and aid in treatment decisions. Furthermore, AI has demonstrated that by analysing large amounts of data, it can uncover trends and symptoms that humans have never discovered before (Kruczek, 2019).
A successful remodelling of the procurement system would act as an e-gateway for the organisation; procurement & business through an active engagement of potential bidders, interact and respond to tenders by Sidra organisation. This is while offering highly secure, simplified, pre-governing and efficiency in the management of the online tenders by application of a web-based technique. A successful integration of the system would, mean Sidra and all their stakeholders are safe from issues associated with access, timely delivery, documentation and strategies and as such lowering the overall costs incurred.
Therefore, it is important to consider the scope of remodelling of procurement system could lead to Sidra leveraging on health care sector in Qatar success and also dominating the healthcare sector in Qatar. This is evidenced from figure 2 final phase of implementation of buyers procurement, review of contracts and performance measurement process.
1.2 Project Scope
As per Gartner, in the past, technology procurement professionals had two responsibilities: reduce costs and reduce risk. However, with the advent of cloud services and the digitization of companies and many business units, the job description has expanded to include a number of new responsibilities. According to Luke Ellery, research director at Gartner, “technology acquisition is no longer a tactical activity.” “It now serves a strategic purpose and has the ability to set us apart from the competitors.”
In recent years, Sidra medicine (SM) has already been “trying and rolling” many techniques and operating models that may or may not seem to be the best choice, based on many different indicators and assessments. Throughout this case, a lot of organizations, partners, and staff were undoubtedly impacted in various ways, including the inability to completely focus on the fundamentals, process efficiency, continuous quality, employee training, trends & market approaches, strategic relationships & suppliers, and so on. Procurement department and IT Procurement, like a subcategory, has been in the same boat, taking a more reactive strategy rather than becoming a highly proactive and long-term vision institution.
In this case, a variety of entities, departments, and individuals were undoubtedly impacted in various ways, including the inability to fully focus on the core, process efficiency, ongoing excellence, capacity building, patterns and economies, partnership opportunities & distributors, and so on.
The point of the project is to investigate and then recommend programs and techniques for re-modelling and modernizing the IT Procurement (ITP) category within SM and Procurement & Contracts (P&C) department, with a goal of improving processes, standardizing and optimizing, and harnessing expense with added value to the preparedness program, particularly because managing SCM/ P&C in healthcare is a highly complex and detailed focus procedure, given the risk behind. Different values and better buying decisions would arise from a more integrated, centralized approach. How to make sure ITP isn’t just another reactive IT expenditure way of managing. How to ensure that ITP isn’t taking a classic approach to renewals, purchases without adding value to the project, process, IT suppliers, capex future projects and etc. IT stakeholder management, digital transformation, using the newest methods such as cloud, mobile technology, IoT, AI, all are key factors in ITP as possible enablers for more values, specifically automated processes with increased end-to-end efficiency, transparency with a real-time costs, and certainly business value.
1.3 External Environment
The rationale of evaluating the external environment in this assessment is the digital transformation of the procurement system in SM. This is affirmed by CIPS (2021) findings that note that procurement professionals need to assume a long-term view of risk as they focus on operating in an increasingly Volatile, Uncertain, Complex and Ambiguous (VUCA) world. The rationale of this is that by embrace of modernised technology, a detailed integration, visibility and control of the organisation, guiding the category managers, different management, including IT executives. Through an embrace of contemporary procurement technology this provides an opportunity of integrating, achieving visibility and controlling organisation hence achieving cost saving in the organisation. In Qatar business environment are currently adopting the use of spend analytics, eSourcing, effective category management, eProcurement (ecatalogs and eInvoicing) and more. A common advantage of organisations embracing the use of these techniques and approaches is their ability of being appropriately positioned in pursuing their organisation strategic agenda successfully. Also, their procurement teams are appropriately positioned contributing to an increased operation value. For instance, in Qatar healthcare sector, organisations adopting the use of this have unique products design, sales and marketing, sustainable operations, high-level market share and profitability.
In regard to sourcing of the non-trading materials in pharmacy, medical equipment and other facilities, through an embrace of modern technology after a successful remodelling, a set of external factors influence the need for the change. To explain the identified factors by use of PESTLE factors in macro-environment, this harness/influence change strategy as summarised in table 1;
Table 1: Summary of PESTLE Factor Analysis:
| PESTLE Aspects | Analysis |
| Political | Qatar government require organisations in healthcare sector to integrate modernised technologies in their PS&MGood Qatar international relations with Western countries (main providers of procurement technologies |
| Economy | Today, as a result of COVID-19 pandemic, available businesses opportunities for organisations have reduced hence limited resources availableGovernment spending on the healthcare sector has significantly reduced affecting the organisations sustainability |
| Social | Qatar healthcare sector clients dynamics changing with Millennials and Generation Y who prefer technologies in procurement process |
| Technology | Qatar is known in Middle East as having the best technology development and embraced by all the providersProcurement technologies have rapidly grown over the years |
| Environment | Embracing green policy strategies necessitating smart procurement sustainable strategies in their working environment |
| Legal | Qatar Ministry of Health have initiated legislations requiring all the organisations in holistically embracing technology in procurement processPolicies require Qatar healthcare organisations to embrace technology in their procurement approaches |
| Ethics | The strategies include use of technologies for promoting strict procurement strategy in tandem with Health Safety and EnvironmentHealthcare providers must ensure they are appropriate embracing best procurement approaches for healthcare materials that meet their healthcare needs |
2.0 Background
2.1 Qatar and Healthcare
Procurement is the act of acquiring the goods and materials that an organization needs, whereas inventory control is the method of turning those things into commodities and effectively delivering them to customers (The peninsula Qatar, 2022). Qatar has produced a number of remarkable works under the country’s political system and the 2030 vision strategy, such as winning the bid to host the 2022 FIFA World Cup, and surviving regional economic and geopolitical obstacles in the past years. (Yang et al., 2021). Notwithstanding this substantial progress, Qatar matter of the fact on oil and gas (O&G) revenues, which could be one of the main reasons why SCM is so important to the country in order to ensure that it can respond to huge needs, where perhaps not much has been produced and manufactured in the country. However, with the 2017 blockade, the method and climatic conditions have slightly changed. A number of facilities and industries have been approved for operation, with a total investment of over $ 68 billion. Therefore it is extremely important that Qatar does manage its supply chain and procurement well, as there is huge pressure and investments on different fields, from making the world cup to oil and gas, steel, airline industry and more (Yang et al., 2021).
As per various studies and insurer perspectives, Qatar’s healthcare strategy is routinely recognized as among the finest in the Arabian Peninsula, if not the globe. Qatar’s government clinics and hospitals are all well and utilize highly trained medical personnel, thanks to significant governmental expenditure. Hamad Medical Corporation (HMC), which oversees Qatar’s government medical institutions, manages the universal healthcare system. Qatari nationals and residents have access to significantly subsidized and comprehensive public healthcare through HMC hospitals across the country. Sidra Medicine is among the nation’s biggest institutions, and it works closely with HMC to aid and assist the national health – care efforts.
2.2 Sidra Medicine Hospital
Sidra Medicine (Sidra) is a hospital, committed to provide a world-class tertiary healthcare services for women and children in Qatar. Observed by Qatar Foundation a well-known non-profit organization that has number of subsidiaries in different sectors, including but not limited in Education, Science, and Community Development (QF). Weill Cornell Medicine-Qatar, Georgetown University, Carnegie Mellon University, and HEC Paris are among the leading international institutions in Education City, as are newly established national research institutes like Qatar Biomedical Research Organization and Qatar Environment and Energy Research Facility. SM is a component of Qatar’s vibrant education and training ecosystem, and they are building an innovative community to assist promote scientific breakthroughs by investing in medical science via strong connections with premier institutions of higher learning (Sidra Medicine, 2022). Sidra started 14 years ago, with a mission besides being top healthcare institution, to be innovative, ultramodern facility with research centre. The hospital was built with a more than $10 billion expenditure by the Qatar Foundation/ Government. Given some difficulties along the way Sidra has been just recently opened, its outpatient facility in 2016, followed by its inpatient hospital in January 2018 featuring some advanced technologies and services with close to 250 beds of capacity, previously planned 400+. Currently there are around 4000 employees and the aim is to reach a number of 5000.
2.3 Why Project Matters and Objectives
The purpose of this paper is to standardize the best technique and procedures for the IT Procurement category in SM, which may be used to reflect and update other categories such as Pharmacy, Medical equipment, and a General category, what we call Facilities. Digitalization is driving practically everyone, particularly IT procurement, to keep up with the market and national developments. Procurement and IT stakeholders must collaborate in the following ways. What will be the strategic direction and vision of the IT Procurement as category, will management be supportive of such changes, a collaboration with key executives and how to approach Vendors strategically?
The point of the project is to investigate and then recommend programs and techniques for re-modelling and modernizing the IT Procurement (ITP) category within SM and P&C department, with the goal of improving processes, standardizing and optimizing, and harnessing expense with added value to the preparedness program, particularly because managing SCM/ P&C in healthcare is a highly complex and requires specific regulations.. Different values and better buying decisions would arise from a more integrated, centralized approach. How to make sure ITP isn’t just another reactive IT expenditure way of managing. How to ensure that ITP isn’t taking a classic approach to renewals, purchases without adding value to the project, process, IT suppliers, etc. IT stakeholder management, digital transformation, using the newest methods such as cloud, mobile technology, IoT, AI, all are key factors in ITP were enabling more values, specifically automated processes with increased end-to-end transparency on real-time costs, and business value should be done.
In order to inform on the necessity for process of change, a set of strategies for change in line with the CIPS guidelines can be put into account. As illustrated in figure 2, the various factors of interest are environment, market demands, business, entity and cultural imperatives. Further, the leadership and employees mindsets would need to be put into account.
Figure 2: Change Strategy Influencing Factors
Source: CIPS (2021) Materials
Additionally, in order to adopt the remodelled modern approach where technology for instance as one of the main drivers, Sidra would for instance need to go through various cultural acceptance aspects. In line with Balogun and Hope Model Gustafsson et al. (2021), the characteristic of their change embrace is incremental. Therefore, Sidra procurement system would need to go through a consistent adaptation and evolution. The manner in which these operations are altered is implemented gradually (see figure 3);
Figure 3: Organisation Change and Culture Acceptance
Further, the process of change is informed by the fact that SM organisational practices as illustrated in the background, issues with efficiency and on-time decision making include the necessity of noting the critical influence of generating revenues and costs management. For instance, by embracing traditional strategies, the organisation policies and procedures are misaligned with efficiency allowing further movement of their activities particularly in healthcare field. Also, the ERP system is ineffective and have issues with daily support and strategic practices. The organisation is yet to integrate modernised technologies or utilising emerging and mature technologies and tools in accelerating or capturing value to function in more effective and organized way.
Being an appropriate strategy in SM, they are impacted by immense cost overruns in incurred procurement costs, delayed engagement and possibility of suppliers and uncoordinated procurement process. Hence, as part of improvement of the current systems in the organisation, the potential outcomes would include;
- Business gains as they would remodel their procurement strategy, increase confidence and capacity of the approach, managing talents and competencies of their employees
- Improving their relations with all stakeholders (see stakeholders analysis), this would ease the prioritisation of the change orders in the pipeline. By improving the current ERP system, SM would be able to successfully implement the technical and commercial evaluation
- Improved and robustness in their systems and policies hence mitigating the gaps in the procurement system transformation strategy
- Currently, less than 10% of the overall SM resources would need to be applied in prioritising on execution of a digital vision and integrating IT category with great success.
From the organisation lack of robust systems and policies, it is evident there is an instrumental gap in procurement system transformation process and enterprise-level digital remodelling capability. Currently, Procurement of non-trading products and services is still identified as being at an infancy stage of growth due to the scope of development of Qatar procurement systems. Despite the significant organisation development in the management of COVID-19 pandemic particularly in their trade supplies, non-trading services are still noted as unsustainable with progressive growth being projected. Hence, this include a critical chance for establishing a high-level improvement and detailed procurement partnership with other stakeholders increasing strengths of their procurement foundation. The implication of this would be mitigating the existing gap in procurement transformation agenda and enterprise scope digital transformation capacity. Currently, less than 10% of overall resources in Sidra medicine are applied for success in executing digital vision and integrating ERP and modernised technologies as part of their strategy.
Additionally, this project include success in remodelling of Sidra Medicine operations by successfully improving their current ERP system which is faced by a set of issues as earlier noted. This is while ensuring they are prioritising on the current encountered issue of resources, lack of capacity and also qualified professionals. Hence, successful eProcurement approaches used would be in tandem with the 5 Rights of Procurement strategy (CIPS, 2018).Therefore, SM could successfully adopt strategic procurement strategy for improving efficiencies and effective practice. As summarised in figure 4, remodelling to digital and their current procurement system would be impacted by a set of aspects;
Figure 4: Summary of 5 Rights of Procurement Model in SM Digital Procurement remodelling
In summary of the identified 5 Rights model analysis for appropriateness of SM digital remodelling, it is essential for the organisation successfully coordinate all suppliers of their non-trading products. This is nevertheless linked with suppliers’ compatibility scope, credible practice, reliable operation and possible innovativeness and growth development. This is with a will to possess an increased commitment for consistency in improving and development of sustainable practices.
2.2.1 Sidra Medicine Procurement Supply Chain Management Structure
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