The project is a fundamental element of your Corporate Award
programme and has 3 dimensions:
• The organisation reflected in the business benefits to be
derived from a successful outcome
• The individual reflected in the personal growth and challenge
represented in the scope of the work
• The academic rigour, depth of research and quality of analysis
underpinning the project option appraisal and conclusions
reflected in award of professional accreditation
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;
- 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.
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;
- Improving application of digital procurement tools and systems for costs overruns reductio, time savings, knowledge development for experts and skills specialization, accuracy increase and harnessing efficiencies and success of Sidra Procurement System’
- Providing a holistic category management of IT procurement for organizing an appropriate, effective collaboration with end-users and key stakeholders
- Achieving a successful stakeholders inclusion and management for guaranteeing Sidra Medicine appropriate decision making, on-time and accuracy on retention and growth of their market
- To ensure the procurement department is passed through frequent capacity development opportunities for improving their overall skills, competency and talents development
- To prioritise on establishing collaborative business relations with their vendors for securing where they are sourcing their IT system and other sourced materials
- Approving their budget for carrying out an appropriate risk evaluation for establishing risks exposed to by all their suppliers
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
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