ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
CALL FOR TENDER FOR THE FULFILMENT, DISTRIBUTION AND CUSTOMER SERVICES
Closing date: 22nd December 2004 - 11h00 Paris time
Link to OECD Tender
SUBMISSION: 12:30 Wed 22 Dec 2004 - Sydney Time
e W 2004/12/22: Tender Submission - E-mail Notice 12:30 W 22 Dec 2004 Sydey Time
1 W 2004/12/22: Tender Submission - General Information on Tender response
2 W 2004/12/22: Tender Submission - Management Summary - THIS DOCUMENT
3 W 2004/12/22: Tender Submission - Technical & Services requirements
2 TENDER - MANAGEMENT SUMMARY
A Tender Timetable
B Scope of Tender
C New Markets
D Experience and background with On-line Services
E Key personnel for this project
F A New Model for Fees
A Tender Timetable
2Aa The tender was published by the Organisation for Economic Co-operation & Development
[OECD] on Mon 01 Nov 2004.
2Ab The tender stated that questions were required by Mon 29 Nov 2004.
2Ac The original Submission Due tender was Mon 13 Dec 2004.
2Ad The tender was placed on the Tender Information Management Service [TIMS] of the
Open Interchange Consortium [OIC].
2Ae A Number of Questions were received for the Tender from OIC Members interested in
responding to the tender.
2Af On Fri 12 Nov 2004 an initial 5 of these Questions were submitted to OECE.
2Ag On Fri 19 Nov 2004 an additional 8 Questions were submitted to OECD.
2Ah On Mon 29 Nov 2004 a third series of 3 questions was submitted to OECD.
2Ai On Wed 08 Dec 2004 an e-mail was received advising that the Response Date for
this tender had been revised to Wed 22 Dec 2004.
2Aj On Thu 16 Dec 2004 OECD provided a response to 14 of the 16 Questions submitted
by OIC members and 20 other Questions submitted by other interested parties
2Ak The two questions not answered are;
1 What is the Budget for the project
2 What is the weighting given by the selection Committee to succesful e-Commerce
On-line Service implementations
2Al Unfortunately this provided little time to convert the Responses to the OIC Web pages
for review by Interested parties before this Submission was due
2Am In addition the 2 week delay in receiving the response to those questions has taken
tender deadline too close to the Christmas period for a detailed correlated response.
B Scope of Tender
2Ba The Scope of the OECD Call for Tender was to provide a development path for OECD to
progress from a hard-copy Science, Medical and Technical [SMT] Publisher to an On-line
2Bb A great number of business initiatives to move from traditional paper based business
methods to an electronic business process have floundered in recent years due to the
desire to maintain a traditional paper based framework as the foundation for the new
2Bc Business Process Re-engineering is the term often used to explain that business processes
have to be re-engineered for effective On-line Services.
2Bd The major change for SMT Publishers is that the Subscription or Membership Front-end
module determines the effectiveness and responsiveness of the rest of the business process
2Be There are new Business Process Modules for On-line SMT Publishing:
A On-line Subscription/Membership
B Order Processing
C Inventory Management
D Financial Management
E Management Reporting
2Bf The cost structure in On-line SMT Publishing changes from the Cost of Publishing,
Distribution and Warehousing to a Cost of Education and New Market Development.
2Bg In addition the Royalty payment structure changes from being based on the number of
publications printed to the number of web-pages reviewed and responses to pro-active
2Bh The market also changes with On-line Publications. Because the cost of Publication
and Distribution is so much lower there has to a Value Added Service in now just producing
information but educating people how to use that Information effectively
C New Markets
2Ca On-line Publishing provides new markets. Markets which traditionally could not afford
the infrastructure for a loose-leaf administration service and hard-copy distribution
service can now afford On-line Publishing services provided the cost is spread over a
number of years and is not a significant up-front cost.
2Cb It is this new market Opportunities that have to be factored into the Financial Model
for the comparison of Cost of Investment [CoI] and Return on Investment [RoI]
D Experience and Background to On-line Services
2Da The Open Interchange Consortium [OIC] was formed in 1994 by a number of Electronic
Information Technology [EIT] consultants that were involved with a number of
disciplines including Database Management, Electronic Data Interchange [EDI], Remote
Learning and Data Communications.
2Db Since that time OIC Members have been researching and developing applications that utilise
the Internet to provide a range of On-line Services as prototypes for the OIC
2Dc The Research and Development for Electronic Information Interchange [EII] involved a
coding methodology similar in concept to the OECD Numbering System
2Dd This coding methodology was the brain-child of Leonard Arthur GOULD (1918-1996) who had
devised the code in 1963 while a representing the British Overseas Airways Corporation [BOAC]
at the International Air Transport Association technical committee ATA 100
2De This coding methodology is called the RUBAC - Rational Universal Business Automation Code -
Electronic Information Management methodology.
2Df In Mar 1997 the Commonwealth Bank of Australia in conjunction with two other OIC
Members Ourworld Global Network [OGN] and the Australian Industrial Development
Corporation [AIDC] provide the funding for the development of the Electronic Association
Information Management [EAIM] System as a prototype using the RUBAC EII Methodology
2Dg The OIC started as an On-line Electronic Information service by broadcasting events and
distributing event information electronically.
2Dh In Sep 1997 several of the OIC members became involved with the Y2K issue and worked with
the Australian Federal Government and other Australian Associations including the Australian
Computer Society [ACS] to raise awareness of the Y2K issue particularly for Small and Medium size
2Di In 1998 OIC members developed an e-Commerce Y2K Due Diligence process (Y2K Resource
Asset Management Program for Small and Medium-size Enterprises to provide a monthly
certificate to trading partners of progress with Y2K Compliance.
2Dj In Jun 1999 OICY2KRAMP was awarded 1st Prize in the "IT for SME" of the inaugural Global
2Dk The Trophy was presented by the King of Sweden to Guy BLOMBERG of the OIC..
2Dl In Sep 1999 Sun Microsystems joined the OIC to sponsor the XML & E-commerce Special
Interest Group [XZIG]
2Dm In Jul 2000 OIC Members developed the Tender Information Management Service [TIMS] to
provide OIC members with twice weekly e-mails on Government Consultancy and IT Tenders.
2Dn TIMS was developed as an XML Schema for Government Electronic tenders.
2Do In Mar 2001 the Australian Federal Government Department of Employment, Workplace
Relations and Small Business [DEWRSB] commission OIC Members to conduct a series of
surveys with NSW Local Government Agencies on "the relevance of XML in the adoption
of On-line Service Delivery.
2Dp In Feb 2002 the TIMS XML Schema was submitted to ebXML Australia as an XML Schema for
Government Electronic Tenders
2Dq In Jul 2003 an Electronic Subscription Service was released as an XML Application
2Dr In Nov 2003 the Australian Federal Government called for submission on "Australian
e-Commerce:Best Practice Model".
2Ds There were 5 submissions by OIC members out of a total of 18 accepted.
2Dt In Mar 2004 the Australian Government signed a draft Free Trade Agreement [FTA] with the US
2Du This FTA was reviewed by two Australian Senate Inquiry Committees. Each Committee called for
2Dv There were 214 submissions to the Senate Joint Standing Committee on Treaties [JSCOT]. The
Submission was made by the OIC XML & E-commerce Special Interest Group [XZIG]
2Dw There were 548 Submissions made to the Senate Select Committee on the Free Trade
Agreement between Australia and the United States of America. The two submissions by
the OIC XML & e-Commerce ZIG Management Committee are 391 and 391A
2Dx On 8 Jun 2004 the Senate Select Inquiry invited the OIC XML & E-commerce Committee to
Canberra to give evidence on Chapter 16: Electronic Commerce.
2Dz This invitation was issued by the Senate Select Committee because the OIC XML & E-Commerce
Submission was the only submission out of 548 received that referred to the implications of
Chapter 16: Electronic Commerce
E Key personnel for this project
2Ea NAME POSITION COMPANY EXPERTISE
2Eb Stephen GOULD Managing Director OTMG Pty Ltd On-line Services
Single Contract Manager - Australia
2Ec Nigel ROTH Managing Director SLB Breakers Group Warehouse/Distribution
OECD Local Contact - UK
2Ed Guy BLOMBERG Principal GMB & Associates EII Technical
2Ee Jim LEE Managing Director PTMS Australia Marketing Strategies
F A New Model for Fees
2Fa The History of EDI, E-Commerce and On-line Services is littered with expensive failures.
2Fb One of the major problems for SMT Publishers is justifying subscription and membership fees
for Electronic On-line services
2Fc In addition the Standards and Strategies that were developed for EDI and e-Commerce were
derived from a Financial perspective rather than from an effective Electronic Information
2Fd The experiences with On-line Service applications over the last 5 years has prompted OIC
members to develop and propose a new Model for Fees.
This Model is based on:
1 A percentage of the cost saving from print production and storage
2 A percentage of the Budget allocated to the project
3 A percentage for new business
4 A percentage of the saving from the cost of despatch
5 An on-going Royalty for hits on a web-page rather than downloading files
2Fe Hence the question asked on the Budget allocated for this project
2Ff Without the following figures it is not possible to provide a realistic Business Proposal
for OECD to consider.
2Fg The figures that are required are:
1 What is the Budget to provide the On-line Service for a 5 year period ?
2 What are the Current Print Publication costs ?
3 What are the Current Storage costs for the 300,000 Books currently held in Stock ?
4 What are the Current Postage, Packaging and Distribution costs ?
2Ga OIC Members have the expertise and experience to provide OECD with an On-line service
built around a full understanding of the OECD Numbering System
2Gb However the OECD Management Committee have to understand that to move to On-line
Services will require a total change in current Business Processes
2Gc That means a different Model has to be used to justify a Business Proposal