Martin Duggan, e-Marketplaces and the NDIS

© 2014 IBM Corporation

Smarter Social Programs Roundtable Series

E-marketplaces and the NDIS

Martin Dugganwww.ibm.com/curam-research-institute

© 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


Examples of online market places examples…ebay, Amazon TripAdvisor, Allhomes – that people are using today – and will expect……..


Some the key characteristics of these e-marketplaces

Relationship based

Facilitates Transaction Efficiency

Feedback/ transparency

Open to all

Consumer choice

Data driven

Provider reachLight touch regulation/

moderation

Personalised


An e-marketplace for NDIS – what could it look like?

Buyers Sellers

Agregator

Market DrivenUnregulated

Buyers Sellers

Market Managed Regulated

Data

Services

Orders

Orders

Services


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 requirements1.Large and growing market of individual buyers and sellers2.Communicate relevant value propositions to individual customers3.Manage relationships with individual customers4.Plan service delivery and forecast service demand5.Develop agile service delivery models to manage fluctuating demand6.Manage the cash flow implications


E-marketplace options

Federal

DSP

`

DSP

` ``

State

“Unregulated”e.g. Ratemytradie, Amazon etc

Industry Supportede.g. UK Work Program

State Regulated/Supportede.g. US HCR, ON CPIN

Federally supportede.g. Japan Age Care


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

Martin Duggan, e-Marketplaces and the NDIS

Healthcare

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