Fujitsu: How to combine Big and Small. #techUKDigitalPS

SMEs have a massive contribution to make, in delivering truly transformative public services, but they need the right framework to plug into. 

It’s been traditionally hard for SMEs to get an influential seat at the table for big transformation initiatives in government, not helped by a combination of cost of sale, ability to share risk and Systems Integrators keeping them at arm’s length. This is changing with DaLAS, but only if big suppliers create the right next-generation collaborative eco-systems. 

I’ve lived through both IT in-sourcing and out-sourcing in my previous time as a civil servant and both models have undeniably been dominated by big Systems Integrators, who whilst they have always worked with SMEs to deliver change in their government contracts, invariably held these smaller players at arm’s length from the end client. 

Governments across OECD have long recognised the importance of SMEs (not just technology sector ones) as crucial to national economies and in the UK there have been various efforts to address their participation in public sector contracts, including KPIs for the level of SME contract awards in departments. However, latterly this evolved into an important watershed moment with the emergence of the DaLAS framework, which takes SME participation in government Digital Contracts to the next level. 

A key aim of DaLAS is to improve the engagement and use of wider supply chains, allowing for many new suppliers to engage, but significantly removing barriers to entry for SMEs, with among other things helpful structuring of lots that apply solely to SMEs as well as supplier KPIs that drive collaboration and the creation of healthy ecosystems. 

However, there are still two “elephants in the room”: - 

1. For suppliers, Government has always been a long sales cycle and whilst rightly there are checks and balances on spend and strong due diligence through structured competitive RFx/ITT exercises (even when it’s via a framework), this is still a big barrier to entry for smaller organisations. Moreover, there is rightly a culture of Proof of Value, Proof of Concept, Alpha/Beta etc and often a tacit expectation that suppliers make an “investment” in these, which is fine, but again easier for the big organisations. 

2. Supplier Governance, Control and Design Fidelity (business, technical and service) across a programme lifecycle and a delivery eco-system is crucial to ensure the formation of a viable transformed live service. Understandably government doesn’t want to go back to an unhealthy reliance on small numbers of Systems Integrators but equally needs to be realistic about its own capability and resourcing of controls to manage an increasingly complex supplier eco-system. 

So, for me it comes down to getting the best of both worlds, the strength in depth of large suppliers and the agility and innovation of SMEs, hence my modification of Monday’s theme title. This will come down to big bidders putting the right “Digital Delivery Partnerships” together, encompassing a range of SME partners and an ability to crowdsource the right skills from that eco-system to the right place and at pace. 

In a multi-partner environment, this relies on governance and control models that can ensure delivery teams are best in class and meet the right cultural, quality and behavioural requirements. But this requires a framework to bond them into, which connects to the clients own ‘Strategic Supplier Relationship Management’ model, giving a voice and presence to all participants large and small, but crucially fostering a ‘one-team’ operating culture aligned to evolving collaborative working standards such as BS11001 and, ISO44001.  

So… DaLAS is genuinely a welcome and significant evolution of the way the government will procure IT Technology and Services moving forward, giving SMEs their rightful opportunity to participate in the next wave of Government Digital Transformation. I have no doubts that it will be a game changer, but also that it will cause the best large suppliers to “sharpen their pencil” on the way collaborative eco-systems and supply chains are formed, managed and exercised. 

This article was written by Peter Wilson, Industry Advisor at Fujitsu. Pete is an experienced senior leader in the IT industry. Peter has helped clients get the maximum value from Digital Transformation and has held 30+ years of experience at the forefront of major Transformation Programmes, in a variety of senior roles, whether that’s to consult on the Design, Value Risk, Roadmap, Benefits of transformation or to simply share a wealth of best practice from other global Public Sector Organisations. Learn more about Pete, by visiting his LinkedIn.

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