2AGENDA 9.00 Opening of meeting 9.05 Approval of agenda, minutes, Goal setting9.15 Feedback on the specific actions10.00 Questionnaire, planning of interviews10.30 Coffee break10.45 Finalisation of positions and recommendations12.00 Discussion of strategy scenarios13.00 Lunch.13.30 Final report: structure etc. 14.30 Thee/coffee break14.45 Final report: content15.45 Next steps, allocation of tasks16.00 End of meeting
3Planning and progress Planning: June: Report ready September: Presentation in EB meetingPlan for today:finalise step 3,review the work done in de previous stepsplan the activities needed to finalise the report
4Expected results 3nd meeting Consensus about the final questionnaire,Consensus about conclusions and recommendations, including positions and actionsConsensus about the structure, line of reasoning and tone of voice of the reportConsensus about the Content:Reference FrameworkQuick wins and pitfallsStrategy scenariosPlanning of activities to finalise the final report
5Comments PaulDirectors want to cooperate in procurement. COTS is an aspect of this.If we think that there are no possibilities for cooperation in procuring COTS we should say soAlso give indications of long term possibilitiesReport should be sharp and very direct: it should get them out of their chairs
6QuestionnaireActions:Agree on questionsPlan interviews
7Conclusions last meeting Strategy scenarios are part of the positions and actionsWe will first define the positions and recommendationsThis will lead to a better modelAnd concepts for strategies
8Positions & actionsDifferent situations require different types of procurementAction: analyse further, differentiate between situations and procurement strategiesConcentrate on roadside systems, they form largest part of budget. This is independent from procurement strategyProfessionalising the procurement process and the implementation of the European Procurement Directives will lead to harmonisation of procurement strategies.Action: define procurement model reflecting different procurement strategies and NRA roles
9ConclusionsProcurement strategies determine the extent COTS products can be usedNRA’s have different roles therefore may have different procurement strategiesThe trend towards using functional requirements and service contracts limit the options for specifying COTS products directlyHowever COTS can be specified indirectly through the use of standards and common functional specifications.Existing technical specifications can be used to define common functional requirementsNRA’s can use their influences in the national and European ITS organisations on the ongoing standardisation processes in the ITS industry
10Some other conclusions Most countries do not have a formal procurement strategy. In some cases there are several formal and/or informal strategies that are used in parallel.There is no common architecture and it is doubted that there will be a common European one in the future that will be used in practice.
11Reference framework Layer model Boston matrix variant Procurement modelSWOT /PEST Model Analysis
12StrategiesFind out where your ITS budget is going and try to find out how you can reduce costs, risks and improve the implementation speed.Find out which small investments have huge impactsThree procurement strategies“Classical” procurement using mix of functional and technical specifications“Professional” procurement using functional specificationsProcurement of service contractsFocus on maintenanceIntegral contractsFollow the trend of standardisation already going on in industryApproach COTS US report: define capability level NRA for each situationRole of NRA determines strategy: Manager of assets or manager of facilities, etc
14Final report Look and feel: Structure Line of reasoning Tone of voice ContentReference frameworkQuick wins and pifallsStrategy scenariosAttachements
15Final report Structure: Executive summary Introduction COTS definition Reference frameworkRelevant issuesStrategiesQuick wins and pitfallsConclusions and recommendationsPositionsAnnexes
16Relevant issuesThe procurement strategy of a NRA determines the extent COTS products can be used.The present trend towards the procurement of large projects based on functional specifications and service contracts makes COTS less relevant. The NRA can only benefit indirectly from COTS and should influence this through the specifications and requirements.In any case the use of COTS products should lead to lower costs, lower risks and faster implementations..The ITS industry is innovative and presents continuously new ITS products to the NRA’s.It is a challenge for NRA’s and the market to fit these products into the ITS architecture used by the NRA.
17Relevant issuesThe largest part of ITS budget is spent on just a few (COTS) products and services. Most budget is spent on roadside equipment.Share knowledge about lifecycle costs of ITS COTS products. BenchmarkingThe specific national role of a NRA determines the available competences within the NRA organisation, this in its turn determines the role the market will play.COTS products have specific application domains.Good products can be useless when used in the wrong situation.
18Quick winsUse open standards for interface specifications: more suppliers, easier/cheaper maintenance.Develop common functional specificationsUse industrial developed products with a large number of (configurable) interfaces. This makes that there is no need for a (single) standard.Use products that have been tested and implemented in another situation or country, these then become a COTS-product for you.Write tenders in international languages so to make it possible that “new” suppliers can enter your market
19Pitfalls Over hasting in buying process Time to market reduces continuously, industry is bringing new product faster to the market so you must be aware that you are not part of the testing phase.Customisation as part of COTS is very expensive if you haven’t described it in the tender specificationsCOTS may work in one situation, but not in othersIntegrating COTS products may not lead to the required product, they may function very well individually but if you put them together it is not what you desired.If you cannot control COTS products you have a problem.Attractive all-in-one COTS solutions don’t exist. This is sales talk. Know the limits of each COTS productCOTS products are designed for large markets. So maybe you pay to much for what you want because you get more functionality than you need.As a customer you are just a number if you have a problem with a COTS product, you have to take it (the COTS product) as it is.
20Benefits of COTSCOTS products are based on proven technology and can be implemented fastYou can respond quickly to political questions and issues that need fast implementationCOTS products are more easy to maintain,Standard spare parts, you don’t have to have your own stock of spare parts., you can just replace the defect parts.Low and high end solutions available/possibleFeedback to industry makes products betterBenchmarks possible when you compare the products in common situationsYou have less chance to forget anything in a specification, most of them are integrated in the COTS products anyhow.Quick delivery possible, you don’t have to reserve productions slots.