Itac itc supply chain council introductory meeting june 11 2013 with ssc f inaljune10
1.
2. • To highlight the value
of the supply chain
• To identify its vital role
in selling, delivering
and integrating
innovative IT solutions
to customers
• Profile how the ICT
supply chain works in
Canada
• Illustrate how each
level works together to
support government
• Demonstrate how the
supply chain is
evolving to support
new innovations and
the evolving IT
requirements of many
organizations.
• To gain a greater
perspective on the
purpose, importance
and value of the
current structure of the
ICT supply chain
• To help SSC make
better and more
informed procurement
decisions related to
the supply, service,
and delivery of ICT
solutions to
government
AGENDA
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3. ICT SUPPLY CHAIN IN CANADA
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Sharon Chamberlin, Chamberlain Consulting Group
4. THE SIZE
Ø ICT 2012 IDC estimate $44.8B
Ø Growth for 2013 is 5.4% ($47.15B)
Ø Public sector (GOV’T | EDU | HEALTH) represent the largest IT opportunity in Canada
Ø Public sector (GOV’T | EDU | HEALTH) consume the largest share of IT in Canada
Ø The Canadian federal government was largest single purchaser in 2012
Estimated 2013 All Canadian ICT and Government Spend by Product & Service
Data Source - IDC Market Analysis 4
5. • Industry Canada’s 2011 statistics illustrate the integral role small and medium
technology companies play in the supply and service of ICT solutions nationwide.
• The ICT sector accounts for 3.0% of total employment with a highly educated
workforce (45.1% of workers had a university degree in 2011 compared to the
national average of 26% )(source Industry Canada). (source IDC Market Analysis)
• Colleagues participating in today’s presentation can speak directly to their
partnerships and how the majority stem within the second largest group of
Companies by Employee Size. (shown in red in the second diagram)
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6. TIERED APPROACH TO SOLUTION DELIVERY
STRUCTURE
TOUCH POINTS
INTRODUCTIONS
OEMS
DISTRIBUTORS
SOLUTION PROVIDERS
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Kelly Hutchinson, MarketWorks Ltd.
8. ICT SUPPLY CHAIN
~ Current Touch Points for GoC CAG spend
“The government relies on smaller suppliers: Smaller businesses are already significant suppliers of
goods and services to the Federal Government. SMEs have historically accounted for approximately
43% of the value of government purchases and 66% of government contracts”
Source PWGSC Web Site “Importance of SMEs”
Data for Map Source: Computer Acquisition Guide(CAG), taken on June 10, 2013 8
9. INTRODUCTION: OEMs
• 191 OEMs serving government today ( 40 IT hardware | 151 IT Software)
• More than 80% of the IT hardware manufacturers rely on the channel to support gov’t
• Most mainstream software publishers leverage the channel for supply and service
• Every OEM listed on the CAG leverages distribution logistics to deliver their IT solutions
• On average, each OEM has 25-50 solution providers authorized on their Standing Offers
nationwide and 10-15 go-to partners for complex IT solution delivery and support.
• OEMs invest millions of dollars in developing their solution provider channel to adopt and
support new innovations they bring to market.
• While many OEMs have the capability to go direct it is not their go-to-market strategy
OEM will be our multi-purpose definition for today’s presentation. It
is meant to cover a range of the following that includes these
types of IT companies:
• Original Equipment Manufacturers
• Technology Suppliers
• IT Hardware Vendors
• IT Software Publishers
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10. A FEW WORDS FROM OUR OEMs
TODD MADGETT, CISCO SYSTEMS CANADA
GREG LARNDER, MICROSOFT CANADA
GARY DRYSDALE, HP CANADA
Let us briefly turn it over to our colleagues to give us their insights on
the following:
• Company | Name | Title | Role
• # employees in Canada
• # employees and locations dedicated to Fed Gov’t
• # of Solution Providers, # of SPs selling to Fed Gov’t
• % of business that stems from Fed Gov’t procurement
• % of Fed Gov’t business that is direct and indirect
• Type of investments made in channel development
• Type of value solution providers add to your business
• Impacts current change is having on Fed Gov’t business
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11. INTRODUCTION: DISTRIBUTION
• An intermediary between OEMs/Solution Providers
• Three Types of Distributors:
1. Broadline: Logistics Machine, Breadth of Offering
2. Value Add: Enterprise IT Solutions Focused
3. Specialty: Focused Solution Segment
• OEMs leverage distribution to act as indirect sales channels,
allowing use of its sales force, technical capabilities, Inventory
systems, logistical services, & breadth of customer relationships
to cost effectively distribute OEMs products globally.
• VARs/Solution Providers leverage a range of services through
distribution:
• Pre and Post Sales Technical Support
• Training and Certification
• Configuration and Integration Services
• Financing Options
• Complete Marketing Services
• Solutions Selling Support
• Electronic Commerce Solutions
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12. A FEW WORDS FROM DISTRIBUTION
RICK REID, TECH DATA
Let us briefly turn it over to our colleagues to give us their
insights on the following:
• Company | Name | Title | Role
• # employees in Canada
• # employees and locations dedicated to Fed Gov’t
• # of Solution Providers, # of SPs selling to Fed Gov’t
• % of business that stems from Fed Gov’t procurement
• Investments made in channel enablement
• Impacts current change is having on Fed Gov’t business
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13. INTRODUCTION:
IT SOLUTION PROVIDERS
IT Solution Providers are an OEMs authorized sales and service
agents that have evolved with time and technology.
Historically known as resellers that “add value” to technology
procured, these IT organizations are enterprise solution focused,
helping clients achieve operational excellence.
• Corporate Memory: Majority serving government for 10-20 years
• Solutions Portfolio: On average 20 alliances, vendor neutral, best in class offering
• Full Service Offering: Consultants + Solution Architects + Systems Integrators + Support
• IT Specialists: Skilled architects, system/solution engineers, business mgmt. professionals
• Investments: Ongoing training, certifications, lab equipment, research and development
• Value to OEMs: Client relationships, architecture, expanded sales force, increased service levels, pre/
post sales support, technical integration, contract management, renewal services, add-on opportunities
• Added Value: Solution development and validation cross technology integration solution innovation
through new technology adaptation, impartial advisor, transformation specialists.
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14. A FEW WORDS FROM OUR
IT SOLUTION PROVIDERS
SCOTT HARPER, SOFTCHOICE CORPORATION
DARLENE KELLY, TERAMACH TECHNOLOGIES
Let us briefly turn it over to our colleagues to give us their insights
on the following:
• Company | Name | Title | Role
• # employees in Canada
• # employees and locations dedicated to Fed Gov’t
• Types of ICT solutions sold to Fed Gov’t
• % of business that stems from Fed Gov’t procurement
• Unique value proposition to Gov’t
• Types of investments made to support Gov’t
• Impacts current change is having on Fed Gov’t business
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15. IT SOLUTION PROVIDERS
Equally important to note, these small and medium IT companies
have invested more than a decade of their business efforts in
supporting the Government of Canada.
The following insights noted below stem from an informal questionnaire
MarketWorks sent to federal IT solution providers in September 2012
• 81% of respondents stated that federal government is of extreme importance to their business,
corporate/commercial business followed
• Nearly half (45%) of respondents stated that their business supported departments nationwide,
while 35% of respondents were regionally focused
• On average, almost 55% of IT solution providers business revenues are derived from federal
government contracts
• IT solution providers are leveraging multiple procurement vehicles to sell products, services and
solutions to the federal government.
• Federal IT solution providers continue to revise their approach through an increased focus on
professional services, managed services and support.
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16. COMMITMENTS TO
GOVERNMENT
Ottawa Offices
Sales Teams
Training & Certifications
Lab Equipment
Skilled Professionals
Custom eCommerce
Sales Support
NMSO Admin Teams
Custom eCommerce
Inventory
Service Expansions
NMSO Costs
Sales/Admin Teams
Partner Development
Training & Certifications
*200+ organizations (CAG)*131 organizations (CAG) 5 main organizations
supporting OEMs and SPs
16*Data for Image Source: Computer Acquisition Guide(CAG), taken on June 10, 2013
17. TIERED APPROACH TO SOLUTION DELIVERY
Just-in-time
Inventory
Availability and
Shipping Accuracy
Staging and
Scheduled Roll
Out Expertise
Configuration and
Integration
Services
Innovative
Technology
Products
Skilled Solution
Provider Channel
Customized
Solutions for
Government
Broad Solutions
Portfolio
Impartial IT Advisor
Solution
Development and
Validation
Skilled Architects
On-Premise and
Managed Solutions
Corporate Memory
Full Service
Approach
Trusted Solutions
Knowledgeable
Teams
Alignment to IT
Modernization
Agenda
Innovation
Motivated SMEs
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19. MOVING FORWARD
ENGAGEMENT PROCESS
• Formalize an ongoing relationship with SSC
• Provide advice to SSC, including insights and perspectives on supply
chain issues and concerns
• Help SSC develop procurement strategies aligned with the
fundamentals of the supply chain to leverage maximum benefits for
SSC and the Canadian economy
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