A general framework of different procurement strategies is introduced to help managers review their project portfolio to find more effective ways of using both internal and market resources in information systems development. Major decision criteria the specificity of system design and the uncertainty involved in requirements specification are adopted from transaction cost economics to determine what procurement strategies should be used in different situations. According to our Procurement Principle, systems that are company-specific and involve high uncertainty have to be internally developed because they require both the specific knowledge and intensive interaction between developers and users. More standard requirements indicate the use of outside consultants or software contractors who have experience and knowledge about a similar type of systems. For routine systems common in many organizations, acquisition and tailoring of a software package provides the most efficient procurement strategy. The Procurement Principle is also empirically tested with data from recent system development projects in major Finnish companies. Partial support was gained for the framework, but some interesting deviations were also detected, such as a tendency to rely on in-house development of even routine systems.
Procurement Management Information System (PMIS) for Improving Public Procurements in Afghanistan
Procurement Management Information System (PMIS) is a smart system which collects, stores and synthesizes the procurement related information all over the country. It is an online based central and integrated data management system concerning to the procurement activities. PMIS uses centrally updated data warehouse to track, record and verify the procurement history and current capabilities of the contracting parties’ viz. contractors, suppliers and consultants. During bidding, bid evaluation and contract execution PMIS serves as necessary source of transformation of authentic information and bridges between the bidders and procuring authority. PPMO can be an appropriate authority to undertake the central data management system. Procurement Management Information System (PMIS) can be a smart remedy in reducing inefficiencies, manipulations and fraud & corruption during tendering and contract execution.
Following are our challenges to go for adopting PMIS in public procurements:
- Reluctance of public authorities and political circle to adopt a smart and alteration –free system.
- PMIS is fully online based. Lack of continuous electricity supply and internet connections every places of country.
- Limitation of proper level of computer skills among public personnel’s and contracting parties.
- Proper mechanism of data encryption in online system should be established.
- Without clearly stating in the procurement act and guideline to go for an online based system is made, it is difficult to adopt PMIS.