Martin Duggan, e-Marketplaces and the NDIS
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An e-marketplace is an online location that allows companies and individuals to connect as buyers and sellers of products and services. It provides functions like catalogs, ordering, and requests for quotes/proposals to facilitate commerce. E-marketplaces increase efficiency by making negotiations, transactions, and delivery easier. The National Disability Insurance Scheme (NDIS) in Australia created individual buyers and sellers in the disability services sector, opening up the possibility of an e-marketplace. Research was conducted including interviews with providers, government agencies, and experts. An e-marketplace could take different forms like unregulated like Amazon, industry-supported, or state-regulated models and require a commercially-based delivery model to manage relationships, service demand,
Martin Duggan, e-Marketplaces and the NDIS
- 1. © 2014 IBM Corporation Smarter Social Programs Roundtable Series E-marketplaces and the NDIS Martin Duggan www.ibm.com/curam-research-institute
- 2. © 2014 IBM Corporation2 E-Marketplaces - what are they and what are the used for? An e-marketplace is an internet location owned by a company or consortium which allows other companies or individuals to get new suppliers or buyers for their products as well as develop trading networks which makes negotiating, settlement and delivery easier and more efficient. A site is termed as an e-marketplace when it caters to many buyers and sellers by providing commerce related functionalities like auctioning (forward or reverse), catalogues, ordering, wanted advertisement, trading exchange functionality and capabilities like RFQ, RFI or RFP. Source : Wikipedia Applicable for social services?? Until NDIS came along and gave rise to buyers and sellers
- 3. © 2014 IBM Corporation3 Examples of online market places examples…ebay, Amazon TripAdvisor, Allhomes – that people are using today – and will expect……..
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- 7. © 2014 IBM Corporation7 Some the key characteristics of these e-marketplaces Relationship based Facilitates Transaction Efficiency Feedback/ transparency Open to all Consumer choice Data driven Provider reach Light touch regulation/ moderation Personalised
- 8. © 2014 IBM Corporation8 An e-marketplace for NDIS – what could it look like? Buyers Sellers Agregator Market Driven Unregulated Buyers Sellers Market Managed Regulated Data Services Orders Orders Services
- 9. © 2014 IBM Corporation9 To explore this in an NDIS context, we commissioned some research “Evaluating the business model for Social Program Management in the Australian NGO Disability Market” by Jon Sidall Part of a structured analysis looking at new and emerging markets and business models Completed as part of a company sponsored MBA Programme at the University of Exeter, UK 17 Interviews in Australia were completed – Disability Service Providers & representative bodies – Commonwealth and State Government Agencies – Industry experts Business Model requirements 1.Large and growing market of individual buyers and sellers 2.Communicate relevant value propositions to individual customers 3.Manage relationships with individual customers 4.Plan service delivery and forecast service demand 5.Develop agile service delivery models to manage fluctuating demand 6.Manage the cash flow implications
- 10. © 2014 IBM Corporation10 E-marketplace options Federal DSP ` DSP ` `` State “Unregulated” e.g. Ratemytradie, Amazon etc Industry Supported e.g. UK Work Program State Regulated/Supported e.g. US HCR, ON CPIN Federally supported e.g. Japan Age Care
- 11. © 2014 IBM Corporation11 Conclusion Dynamic markets where buyers have a choice of services from a range of providers offering value for money E-marketplaces are the enabler for dynamic markets – they are providing this now for a broad range of goods and services - why not social services Requires a commercially based delivery model One that can deliver the data required
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