1

Operational example ofe-procurement system (Korea)

1ContentsIV. Contributions to Public ProcurementIII. Interface services of KONEPSII. Services of KONEPSI. Background of KONEPSAgenda IV. KONEPS in the worldThese are agendas of my presentation.Ill start with background of KONEPS explaining the objectives of KONEPS and how was developed it.After that, Ill continue with full of description regarding different type of services provided by KONEPS including interface services,which are fundamentally important component of KONEPS.And then, Ill explain regarding how KONEPS contributed to public procurement during this period.The last content would be how actually KONEPS system has been expanded around the world.2

Now, Let me talk about background of KONEPS.3

Objectives of KONEPSIssues before KONEPSManual process based on paperBefore KONEPS was developed, all the work was done manually.Obviously all the suppliers and contractors had to visit separately to participate in the bidding process.Also, they had to register separately to each entity. That was very inefficient and not transparent.4

Corruption-Free Via reduced direct contact between officials and suppliersTransparencyVia the real time information release

Objectives of KONEPSTherefore, Public Procurement Service of Korea decided to develop e-procurement system providing totally integrated IT solution in order to enhance transparency by decreasing face-to-face contact.It was also designed to provide information on a real time basis, increasing efficiency and specially helping to prevent any kind of corruption.

5Development of KONEPS

Electronic Document Exchange System (1997)Online Shopping Mall System (1998)e-Tendering System (2000)e-Guarantee and e-Payment System (2001)PreparationPeriod(1997-2001)

Govt-wide Expansion(2002-2004)As one of 11 e-government projects, KONEPS was developed for the use of the whole public organizations (2002), Disaster Recover System(2003), Data Warehouse, CRM(2004)

This is brief history of development of KONEPS.First period was preparation from 1997 to 2001 and we developed these systems.In second period, as one of 11 e-government Projects, KONEPS was developed for the use of the whole public organizations.After 2005, many systems and features were added into KONEPS system such as Obviously we are continuing to improve and try to incorporate new technology and solution.

*11 Projects: Services for people and companies: Tax information/National Finance system/Digital document/Educational Information Platform6

Services of KONEPSNow, Ill talk about services of KONEPS.7

KONEPS StructureThe on-line procurement system which integrated whole processes are processed automatically. And this system is composed of 4 major modules e-bidding, e-contracting, e-purchasing and e-payment.The on-line procurement system which integrated whole processes are processed automatically. And this system is composed of 4 major modules e-bidding, e-contracting, e-purchasing and e-payment.

Event registration, price assessment, auction management, and evaluation are managed by the e-bidding system.Contract registration, modification contracting, and contract closure are managed by the electronic contracting system.

Payment request, expenditure management, fee management are managed by the electronic purchasing system.

And finally, product registration, product list inquiry, e-Mall are managed by the online shopping mall.8KONEPS System Architecture

CertificateWeb ServiceID/PWIntranetData Linkage

Disk

MOSF

MOPAS

KFTC

CA

Surety supplier

Association

KAMCO

MOESTPublic Organizations.PPS contractingofficials

Info AnalystSuppliers

Korea ON-line e-Procurement SystemIntranet

KONEPS PortalKONEPS infoMY KONEPSSurvey

Integrated NoticeRegistrationBid NoticeOpening ResultSearch

ClassificationSearchClassificationIdentifierContract Info.

InfoLinkageInfoLinkageInfo LinkageInfoLinkagee-Procurement Process SystemBidding/NegotiationQuotation ComparisonPrequalificationCost CalculationContract WritingContract reviewingContract MakingDelivery managementContract ModificationPayment RequestPaymentSupport Service SystemUser RegistrationUnfair Businesses ReportIndividual user ManagementUser ManagementReceipt of GuaranteeGuarantee managemente-SuretyPayment ListMonetary TransferTransfer ResultBill Managemente-PaymentContract Method DecisionDelivery RequestProcurement requestDocument distribution / External Linkagee-Document Form ManagementDocument circulation/Security ManagementCirculation System ManagementInfo Linkage ManagementProcurement RequestAwardingContractingContract ManagementSupplier PerformancePast Performance Technician Info.PQ, Eligibility Test Result SearchStatistics Management

DecisionSupportProduct ManagementProduct Info SearchStockpilingConstructionForeign ProcurementDomestic ProcurementOffice SuppliesQ&AEDMSHomepageGovernment Product Management Portale-Shopping MallGeneral AdministrationSystem

E-CatalogClassificationManagementBest ProductUnit Price ContractProduct SearchMAS

External SystemsExternal UserInternal User

IntegratedNoticeBusinessInfoBusinessPerformanceCatalogPrice Info

Internet Closed NetworkGovernment NetworkPPS Integrated SystemInternal LinkageHere, we have the basic conceptual diagram of KONEPS. The diagram can be divided into three main components.

various modules of the main system, KONEPS, is shown in the center of the diagram.In the main system, there are e-procurement process system, support service system and document distribution system.E-procurement process system has core services such as procurement request, awarding and contracting.And Support Service System which supports e-procurement process system has services such as user management, e-surety, e-payment and etc.And Document distribution system is used for interfacing with internal system and external system.These systems are connected with KONEPS for sharing information and processing transaction.9Qualifying Evaluation SystemOn-line Biding Opening

Notification to candidates

Material SubmissionEligible Test

Missing the Adverse Material

KONEPS

Credit rating agencies

Product Certification Authority

Patent office

Association

Buyer

Supplier

Preparing MaterialsNow Ill explain about additional services for user convenience.

One of attractive system is qualifying evaluation system.There are certain types of bidding in public procurement in Korea. One of them is bid by qualifying evaluation.This bid is evaluated by financial status, technical capabilities, their past performance record and credibility.

In the past, each supplier prepared those documents for this bidding and submitted those documents to PPS.After that, PPS performed to evaluate with lots of papers in several days.

But now, with the qualifying evaluation system, they can evaluate supplies based on the data of the related associations system is interfaced with KONEPS.So the qualifying evaluation process now it can be done in just few seconds.

For example, a construction supplier who wants to participate the bidding, they do not need to submit those paper documents or certificates regarding their past performance record, financial status and technical capabilities. And now those documents are exchanged electronically between KONEPS and external systems.10Shopping Mall System

This slide describes process of the online shopping mall system.By accessing this system, public institution can search the products in demand, put them in the shopping basket. After that, generates corresponding purchase orders and sends them directly to the suppliers. Then the supplier delivers the products.This system provides better quality products and services to public institution.Also small supplier which has good technology can participate to the public procurement marketplace easily.11Past Contract Performance I/f system

Financial SystemKONEPS

Buyer

supplier

Contract performance IssueContract Performance Issue System

Search the contract Information

Approve

Request

Other e-procurement system (20)

Total Contract Information DBPayment DataContract DataNow, Ill explain about past Contract Performance Interface system.In Korea, sometimes PPS uses past contract performance for suppliers qualification before contracting.In the past, suppliers had to visit every organizations to prove their past contract performance.But now is possible to prove their contract performance history accessing through interface system in KONEPS.

Supplier requests their contract performance to buyer institution and when they approve, it would be able to issue their performance document based on the total contract information database.

For preventing document counterfeiting, KONEPS uses a prevention solution against copying document.12On-Line Proposal Evaluation System

submit proposal directly ? examiners off-line assessment ? Overcharge of examiners fee ?

KONEPSexaminerSupplierSupplier

ProposalUpload

Access Certification On-Line EvaluationVideo conference Convenience for Supplier Convenience for Examiner Reduce of examiners fee

Allow accessApply DRM examinerDBBuyerResult

This is On-Line Proposal Evaluation System.In Korea, there is a special contract by negotiation. supplier who wants to participate that bidding, they must submit Proposal documents.Then, the Proposal Evaluation process is performed by special committee, this committee evaluates each with technical score.Finally, PPS decides considering technical score and price score to select the winner.

With On-Line Proposal Evaluation System, supplier can upload proposals with the DRM technology and members of committee can access our system for evaluation.DRM(Digital rights management) is consists for access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals to limit the use of digital content and devices.The result of evaluation is encrypted and sent to KONEPS server. And then, PPS confirms the result of evaluation.13Smart phone service

SupplierMobile Bidding SystemBidding ServiceSmart PhoneResult of Bid OpeningCertificates

KONEPSGateway serverAccess AuthenticationXML ConversionInterfacePKIS/WWi-FiWASWAS

DB ServerwebwebWebKONEPS System3G

Ubiquitous e-government implementation Increased Convenience Customer satisfaction increased

Bluetooth

Security token

This is about Smart phone service for user convenience.This service will be launched by next month and enables users to use KONEPS anywhere, anytime.Unlike cell phone service, this service will increase more convenience to users and customer satisfaction.Also, e-bidding service is very secure with high level encryption algorithm and uses finger print security token.14Electronic Illegal Bids Analysis SystemFair trade

KONEPSBidding/opening info.

audit

expert

operator

Data Analysis

LinkageIllegal e-bidding through rental certificates

Provide objective indicator to catch illegal symptom by public certificationIllegal Electronic Bids Analysis SystemDetect symptomAdditional analysisConform resultRequest investigationJudicial authoritiesCyber investigate unitUser authority managementcreate data for illegal stateIllegal state indicatorsearch with Various methodstatistics and enterprise dataUser connect recordIndividual informationIP, certificationMac AddressAccess controlNow Ill explain about Electronic Illegal Bids Analysis System which identifies illegal e-bidding through released certificate to unauthorized user.For analyzing illegal activity, to score uses users connection record, IP address, Mac address, individual information.And then system is grouping by IP similarity and bid participation similarity .And the result is shown the probability. For example, suspicious activity of this supplier is 80%.15

Interface Services of KONEPSNext, let me talk about Interface service which enables KONEPS as perfect system.16Development Background

Customer-Oriented Web services

Following international standard

Different environmentSharing process and informationimprovement of relative business and efficiency Connect with organization & enterprise which have different environment Sharing information and process through web service based connectivity apply ebXML, Web Service, XML and international standard relative to securityEach unique system may use its own processes and data types under different environment. And organization needed to share process and information while KONEPS became bigger and had more information.KONEPS also adopted the e-document global standards such as ebXML for future extensions and modifications.So PPS developed Interface services for improvement of relative business and efficiency.17Standard API Web ServiceStandard APIWeb Service Provides linkage client API thru the most efficient method for the linkage of KONEPS to the institute which has different operation environment and platform. Enables sharing KONEPS process and information via web-based linkage. Provide the communication and security architecture which complies with the international standard.SOAP

XML

KONEPSWEBRelated association B

Related association A

Related association C

SOAP

XMLSOAP

XMLSOAP

XMLKONEPSStandard API Server SystemStandard API Client SystemStandard API Client SystemStandard API Client SystemThis diagram shows us how standard API web service works.API means Application protocol interface.KONEPS has Standard API Server System and any system which Standard API client is installed can share information with KONEPS.18Standards of KONEPS API XML Schema1.0Security StandardsPKCSXMLENCXMLDSIGMessaging Structure StandardsSOAP with AttachmentSOAP 1.1ebXML TRP 2.Oe-Document StandardsCCXPATH 1.0XSLT 1.0Information Provision Service StandardsUDDI 3.0.1WSDL 2.OProtocol Standard (HTTP)XML 1.0Registry & Repository Different Standards Used in KONEPSHere are main standards of KONEPS system. It is the most effective way to interface with other external systems.19Interface ServicesConnected with 100 external organizationsClassificationInformationOther e-Procurement Systemsupplier, unfair trade, bid, contract, bidder InformationIntermediate warranty, Intermediate credit gradeKONEPS OrganizationContract, Catalog, business license, certification of corporatepayment of tax, stamp tax, closed or shutdown infoAssociationBusiness management, evaluated price of construction capacity, result priceSW business declare, SW business experience, contract infoWarranty InsuranceBid info, contract infocontract/bid/deposit/defect/payment/insuranceBankbond for national housing, network loan, regional development public bondSupplierCatalog information, contract, result of inspectCredit rating agenciesGrade of creditCertification AuthorityProduct, technique certificationThis is current status of Interface services in KONEPS.KONEPS is connected with 100 external organizations to provide better information and functions for user convenience.The following classification of external organizations are other e-Procurement System, Association, Warranty Insurance, Bank, Credit rating agencies and etc.20

Interface Service Finance SystemGovernment Finance system is one of examples with interface linkage service.

There is a inter-connection between KONEPS and government finance system.The main reason consists of managing the purchasing planning and control according to the budget from purchasing requests until payment process.

Upon the completion of delivery or performance, the contractor requests inspection/acceptance. The inspection/acceptance request is sent to Dbrain which is a government finance system.When the inspection result is received, the contractor submits the invoice, and the public buyer generates the payment request. The payment request is sent to the DBrain, and the payment is made to the contractor through electronic remission.

21

Now, let me talk about how KONEPS contributed to public procurement.22

Transparent Public Procurement AccomplishedSecondly, all the contract processes are shown on a real time basis. Therefore, bidders can have real time information. For example, an eligibility test to determine a successful bidder is completed and disclosed right away. Likewise, request for payment is also managed through KONEPS. Thus, suppliers or contractors no longer need to visit public organizations. This has resulted in transparent procurement practices.23

Promotion of Private e-Commerce DevelopmentThirdly, the development of KONEPS has made great contributions to the expansion of e-Commerce.For the first time in Korea, PPS applied a digital signature authentication in electronic bidding. This means that the users and bidders participated in the use of certified electronic transactions. This has strengthened the base for e-Commerce. It also promoted the firm establishment of a certified authentication market. It includes internet banking and online stock trading.24

Enhancing Procurement CapabilitiesLastly, via KONEPS, PPS manages and provides integrated information on enterprises and products. PPS also provides information on best practices and analyzes procurement performance results. Each public entity is able to gather information for its own procurement and formulate effective policies. Hence, public entities have been able to greatly enhance their capabilities of carrying out procurement activities. 25

E-procurement in the world26

RussiaArmeniaTunisiaSenegalUzbekistanIranIndonesiaJamaicaPeru

Costa Rica

Vietnam

System implementation and Feasibility analysis underway

MongoliaKONEPS Exported OverseasWith excellent benefit of KONESP and know-how of management, lots of country have interests.There was feasibility study in Iran, Tunisia, Uzbekistan.27KONEPS Exported OverseasVietnam e-GP Pilot System Operated since Jul. 2010Costa Rica MER-LINK Commenced Full Service in Dec. 2010Mongolia Mongolian e-GP System Implementation by Aug. 2011

e-GP Pilot System of Vietnam is operating since Jul. 2010,and Mer-link of Costa-Rica was commenced full service in Dec. 2010Also, Mongolian e-GP System will be implemented by Aug. 2011.

Ok. This is the end of my presentation.Now Ill take any question.28THANK YOU!29

Obstacles & Lessons Learned .30

Coping with Obstacles in Establishing KONEPS

31Now, I will talk about the methods taken to overcome obstacles in establishing KONEPS.Above all things, PPS was faced with internal resistance.Some of our employees were concerned about losing discretionary power and the possible termination of PPSs existence.In order to tackle these obstacles, PPS helped employees to share the awareness of the need for change through a lot of meetings and seminars.We raised their awareness that PPS would not be able to survive unless it innovated procurement work.We also presented a clear vision of creating KONEPS as the worlds best e-Procurement service provider.

Coping with Obstacles in Establishing KONEPS

32Construction of KONEPS had to be promoted as a government-wide project.This means that PPS had professionally managed critical issues such as revision of laws and regulations, and establishing linkage with external systems.Because of these reasons, PPS operated a Committee comprising of members from 10 ministries. It included the Ministry of Finance and Economy and the Ministry of Information and Communication. Through this Committee, PPS collected various opinions.

Coping with Obstacles in Establishing KONEPS

33The most difficult and last obstacle was the attitudes of relevant parties.First of all, the public organizations were not willing to cooperate because they had a strong belief that procurement work should be done through face-to-face contact. Suppliers felt insecure about the way the entire procurement process would be handled online. They expressed concern about the possible inconvenience.In order to resolve these problems, PPS provided regular training programs. PPS also operated full time educational centers at the regional PPS offices. The instructors emphasized the transparent and efficient features of KONEPS. They also focused on the safety aspects of KONEPS, including its digital signature and encoding technique. Overcoming all these difficulties, PPS finally launched KONEPS in October 2002.Government leadership and commitment Integrate and share all information about government procurementMake a single e-procurement system for all public organizationsStandardize procurement process and electronic document (XML) with digital signatureTake the step-by-step approach from integrated bid information and e-bidding Need to make clear rules and regulations according to the reforming the process

Lessons learned 34Contract Performance Issue System

Financial SystemKONEPS

Buyer

supplier

Contract performance IssueContract Performance Issue System

Search the contract Information

Approve

Request

Other e-procurement system (20)

Total Contract Information DBPayment DataContract Data . , , .

,KONEPS , .

, , DB .

DB . , .

/ , 2 .

- : - (DRM) : , , . - 2 : / - : . 35Attempted introduction of banner ads Revenue by Banner advertising on KONEPS Portal

KONEPS

Connect a standard ad screen

supplier Advertising PortalConsidering no website supplier, connect the standard ad screen Advertising costs apply differential depending by Banner ads location

Negative views about Profitable business of Government

Product sales screen on KONEPSKONEPS .() , , KONEPS .KONEPS . . KONEPS .36System Management and Inspection AP Management and Development Entrusted System Development Group (Samsung SDS) Handles user request Database management Internal Agent (Service Division) - Examines and approves requests - Verify final results Entrusted System Development Group (Samsung SDS) Analyze request and present solution Request for deployment after development Internal Agent (Development Division) - Inspection and approval of modification request - Test deployed result Entrusted System Operation Group (Sun Micro Systems) System Deployment Manage DB history and log Internal Agent (System Division) - Check result after modification - Inspection of DB history and logDevelopment RequestRequest of examination and approvalModification RequestRequest of examination and approvalRequest of examination and approvalResult ReportResult VerificationRequest handle procedure of the ITSM Mutual check between internal/external and functional organization Constant monitoring using real-time log update (Log-Saver, Read-only CD) and inspection programCall Center Information Request Inquiries Irregularity Report Update RequestService DeskITSM SystemThis diagram shows how outside requests are managed and finally reflected upon the system.

When different requests, inquiries, irregularity reports are received at the call center, the agent determines the scope of the problem.If the problem is a simple information request or inquiry the agent will handle it. However, if the problem needs further analysis, the agent will pass down the request to the service desk.

At the service desk, complicated inquiries and data modification requests will be handled. However, if irregularities are found in the system, the agent will request for development to the AP management and development group.

The requested AP management and development agent analyzes the problem and present solution to it, and after requesting to and being approved by the internal agent, the development agent will modify the application accordingly.After the modification, the agent requests for system implementation to the system management and inspection group.The system management agents will deploy the solution to the system, and finally the modification will be also checked by the internal agent.37Call Center System Private Area : 660, Agent seats : 54 Superintendent, Meeting Room, staff lounge etc. Proportion Administrators: Customer Manager(1), Workgroup Leaders(5), Agents : 46Headcount Direct Operating by PPSOperation

.KONEPS / , .

KONEPS , , , Q&A, , .

.KONEPS 10 , 4 19 .

660 54 . , 1 46 5 .

1 .38Response 80% of calls under 20 sec of waitKey Performance IndicatorKey Performance IndicatorKPICustomerResponseServiceLevelCall SolvingAt FirstCustomerSatisfactionPercentage of Customer Response 96.2% Average 70% 2 times per Year Call Center SystemKey Performance IndicatorKONEPS .

96.2 % , 20 80% 70% . 2 .

. . .

, . , 50 , 10 .

39IP-PBX Call Center SwitchboardCTI Call Center MiddlewareIVRAuto-answer ServiceC-Rec VoiceReal time recording SystemAnySupportRemote Assistance SystemConsultation APP.Agent Convenient Featuresreceipt and question history managementMajor EquipmentCall Center System /, .

IP-PBX : , , .CTI : , , , , IVR : , , , .C-Rec Voice : . , AnySupport : , PC , // App : . , .

40

Contributions to Development of SMEs2010191,258193,6634,3844,46798.8%311,896 97.2321,0593197.232KONEPS . * SME(Small and Medium Enterprises)

2010, KONEPS 19 98.8% .2010 97.2% 31 , 29 9 .

41

KONEPS Management Now, Let me talk about management issue.42Lets Think!Convenient ways to use KONEPS ?How to operate KONEPS ?Problems during KONEPS operation ?First of all, Lets think about theses things.

What are convenient ways to use of KONPES? We developed e-procurement system very well. But its not over. How can we operate system well? What problems were occurred during operation of KONEPS? And how we resolved?43KONEPS Management Efficient Operation ?

Stable Operation ? High level Operation ? Outsourcing by Professional IT supplier 3-Years Long-term contract SLA ITSMSo weve been thinking these things.

How can we operate system efficiently?How can we operate system stably?How can we operate system with high quality?

There is no answer. However Ill talk about several methods which we and PPS have taken for the last 10 years.

PPS adopted outsourcing contract for better operation with professional IT supplier.And this contract is 3-Years Long-term contract for stability.Also concludes SLA agreement to provide excellent service for users.

44Outsourcing

Function Implement and Additional DevelopmentImpact Analysis by Legal, policies change Application Function Improvements, TestNew Service

Application Operation Error Correction, Simple Function Change etc. Maintenance activities Application Optimization activities Application Environmental Modification

Education Support and Project Management

Application version Control etc. Business consultation and Administrative processing support performance management Product Management Call Center team supportQuality Management / SLA Management Contract ManagementEducation Support for KONEPSWorkforce Management / Partner Management Service Optimization

Support Services

Version Control

Core business focus Cost savings Efficient operation quality serviceOutsourcing often refers to the process of contracting to a third-party.Outsourcing scope of KONEPS is following.

Support new service from function implement and additional development.Service optimization from Application operation.Service support from education support and project management.Version Control like application version control.

So, PPS is able to focus on their work from KONEPS operation with outsourcing.45Long-term Contract Stable Operation Phased improvement of service quality Generalized trend of long-term contract in the private (3~5 years) Since 2005, long-term contract ( KONEPS)

Short-term Contract (1 year) - Frequent replacement of the operating personnel - Can not utilize the accumulated know-how

Long-term Contract (3 Year) - Stability of the operating personnel - Annual Service ImprovementThis is about Long-term contract.

After implementation of KONEPS, PPS concluded outsourcing every year.But there was frequent replacement of operator and could not utilize the accumulated know-how.

So PPS changed the way of contract like every 3 year.With long-term contract, PPS is able to operate KONEPS stably and service quality had been improved.46SLA (Service Level Agreement) High Level Operation Minimize disability and Identify obstacles in advanceSLA (Service Level Agreement)SLM(Service Level Management)PlanningLevel Mgt PlanInitial RunReview/ImprovementSLA reviewSLM Process review

Sustainable managementReviewReportMonitoringSLA createCatalogue SPI, SLA DraftNegotiation

Level reviewConclusionSPI (example)Key Application Utilization RateSR Error RateThe average processing timeCompliance of the processing timeKey personnel issuanceSR The number of abortedNow Ill explain about SLA.

SLA is a document which has aim of core service and responsibility between service delivery and client.SLA activity minimizes disability and Identifies obstacles in advance.

SPIs(Service Performance Indicator) for KONEPS are rate of core application utilization, rate of service request error and etc.And the result is collected in every month.

SPI: Service Performance Indicator47ITSM System Standardized Multilevel Approval ProcedureAdoption of the ITIL 2.0 procedure (05)ITIL (Information Technology Infrastructure Library)Collection of international standards used by the leading IT service companiesSuccessful implementation of the ITILFirst public institution to receive ISO20000, an international certificate for ITIL implementation (Oct. 2005) Establishment of Automatic ITSM (06)Development of Automatic IT Service Management System in accordance with ITIL standardsIncreased speed and stability of system updatesTo manage the vast, sophisticated system of KONEPS, we have adopted the ITIL procedure in the year of 2005. The ITIL is a library of international standards developed by many leading IT companies such as IBM and Microsoft. KONEPS has successfully implemented the ITIL procedure and received the ISO20000 for the accomplishment.The establishment of IT Service Management system which is a specific implementation of ITIL has proven to increase speed and stability of system updates.48ProblemsDecrypting error occurs when bid opened, Attachments are not opened specify processing method When user's PC error occurred Server down due to user congestion Establish disorder treatment guidelines Auto-delay announcement processed

Bid Submission time Error Apply Certified Accredited hours

Collusion with a certificate Rentals Personal certificate identification, Report & Awards , Fingerprint RecognitionAfter the initial development, occurs doubts about security of bid and Transparency of System Held the Presentation to suppliers and media etc.

Now, Ill talk about several problems which was occurred during management KONEPS and how we handle it.

After the initial development, occurs doubts about security of bid and transparency of system.So, PPS held the presentation and demonstration to suppliers and media.

Next, there was decrypting error in the process of bid opening.After inspection of problem, it was caused from user's PC error.So PPS specified processing method When user's PC error occurred.Furthermore, we enhanced program for minimize errors.

While KONEPS was bigger, server down due to user congestion was happened.So PPS established disorder treatment guidelines and developed auto-delay announcement function.Also added more server and upgraded systems.

When user send a bid document under server time is not accurate, theres problem.So KONEPS uses synchronized time which is managed by Korean government.

Lastly, Collusion with a certificate Rentals.KONEPS added process of using personal certificate identification and adopted fingerprint recognition technology last year.49

Revenue ModelThru KONEPSAt this time, lets think about revenue model through KONEPS.50Certificate issuance costs

KONEPSUser1.Request for User registrationPPS Approver

Certification Authority5. Approval application information(Face to face)6.Certificates issued4.Payment2. Approval3.Request for Certificate issuance

Certificate-issuing authority can impose the costsex) 110 dollars/1 KONEPS adopted certificate based log-in and all electronic documents are encrypted and add digital signature.This certificate is issued by CA(Certificate Authority) with payment.51Contract Agency Fee

KONEPSOrganization1. Contract Request

PPS5. Product Delivery 7. Payment 4.Contract2. Receipt of the request3. Notice PPS receives a fee for the contractex) Fee rate is determined by the amount of the contract (0.5%~1.0%)6. Inspection8. Fee Payment

SupplierWhen organization cannot perform contract, they can request Contract Request to PPS through KONEPS.And PPS performs contract on behalf of that organization.In this case, PPS receives a fee for the contract, less than 1% of the amount of the contract.52KONEPS Service fees

KONEPS1. Tender Notice4. Fee Payment2. Bidding3. Bid Opening PPS receives a fee for KONEPS Serviceex) Fee rate is determined by the amount of the tender 5 ~ 20 dollarsOrganization

Supplier

PPSFee Payment ??ex) Consider changing payer by the benefit principle

When organization uses the complete function of e-bidding system,PPS receives a fee for KONEPS service.Fee rate is determined by the amount of the tender, 5 to 20 dollars53Revenue of Bidding link

KONEPS

Bid Information supplier2. Apply Web Security Solutions3.Impossible to extract data4. Provide Information By linkageex) real time : 7000 dollars per year batch service : 3000 dollars

1.System Failure thru Crawling

KONEPS

Information

Bid Information supplier5. Payment Bidding Information for SaleIn Korea, there are many private companies which collect bidding information, analyze this information and sell the result of analysis.The information of bidding is very valuable, so we blocked the collection activities and sell this bidding information.54PPS Education CenterOrganization

Education Center

1. Training Courses Information2. Training Request3. Training costs Paid4. Education Completed Revenue through user education

Different Training costs depending on the courseex) 100 dollar for 5daysLastly, PPS has education center.There are many courses such as bidding, contracting and etc.And students who want to participate must pay for it.55