The initial cost stems from the search costs. For those who have registered companies they might or might not have compliance with PPADB. This is the main procuring body that is deemed independent from government influence in tender and procurement approvals. The establishiment of PPADB was to be able to regulate and categorize different jobs (tenders), their limits and also to provide compliance and certification. So, for those without certification and compliance, they encounter the first stumbling block. When they submit their tender documents, the selection criteria automatically cuts them or disqualifies them.
Then the capacity criteria kicks in that basically seeks scale the ability of an entity to provide the required service or deliver the specified product. Now those who score high, naturally will be eligible for selection with the final stage: the dreaded Financial Cost criteria. This is whereby the procurement board determines the lowest cost attributed to the needed specified product.
Now, the nonsustaining factor comes in where we paint the following scenario:
Case in Point: Company X decides to go into procurement. Solely for tendering. Where is the classical dichotomy here? Yes. The tenders are not always going to be available. Unless if its contract based. Which translates to the same company having to renew that contract all over and over again. Yes, the Classical porter Five Forces model becomes a moot point since new entrants, barriers to entry, bargaining power of suppliers and purchasers becomes futile. Other companies that implements imitative strategy end up failing since the contract is taken up by only one company.
Innovation is stifled because all other ideas that are proposed end up on the 'Tendering System'. The idea originators do not get compensated for their Intellectual Property or get royalties for their efforts. That's a story for another day, the delayed process of Trademarking, IP & Royalties and the rampant and blatant pirating that is ripping through our local music industry. Intellectual Pioneer, stand up! I salute you Legendary Visionary in your endeavor to fight this. Innovation is killed because those guys with ideas have no platform to express them. The diversification depends on the government hand-outs that are tenders. The system has to be reviewed. Has to be changed. I am really dancing up and down for the e-govt because it shall thrust us to levels where innovation is a given, not by chance. My country has the potential to go far.
Now, the nonsustaining factor comes in where we paint the following scenario:
Case in Point: Company X decides to go into procurement. Solely for tendering. Where is the classical dichotomy here? Yes. The tenders are not always going to be available. Unless if its contract based. Which translates to the same company having to renew that contract all over and over again. Yes, the Classical porter Five Forces model becomes a moot point since new entrants, barriers to entry, bargaining power of suppliers and purchasers becomes futile. Other companies that implements imitative strategy end up failing since the contract is taken up by only one company.
Innovation is stifled because all other ideas that are proposed end up on the 'Tendering System'. The idea originators do not get compensated for their Intellectual Property or get royalties for their efforts. That's a story for another day, the delayed process of Trademarking, IP & Royalties and the rampant and blatant pirating that is ripping through our local music industry. Intellectual Pioneer, stand up! I salute you Legendary Visionary in your endeavor to fight this. Innovation is killed because those guys with ideas have no platform to express them. The diversification depends on the government hand-outs that are tenders. The system has to be reviewed. Has to be changed. I am really dancing up and down for the e-govt because it shall thrust us to levels where innovation is a given, not by chance. My country has the potential to go far.
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