-75%
Solution
Executive Summary
In this report, the importance of a selected category of spend to their customers has been established. This is by focusing on Royal Commission for Alula (RCU) organisation. Additionally, in this assessment, a brief market analysis has been used in evaluating the scope of procurement function in generating the value for money outcomes successfully developed. Since the COVID-19 pandemic, RCU has increased its scope of procurement of technology and cybersecurity. This is the areas of focus in this assessment by focusing on the identified category of spend. For attaining the different objectives, various models have been identified which entail the Porters-5 Forces analysis, STEEPLE analysis, SWOT and more.
In the different theories used for a detailed focus, it is evident that the IT spend category sourcing is core for RCU in their strategy of attaining the value for money outcomes. By achieving the value for money outcomes, the organisations have managed to achieve a high-level competitive advantage and dominating the Saudi Arabia (KSA) tourism sector. Also, through the identified Key Performance Indicators (KPIs) and attaining overall stakeholder interest, RCU has been able to achieve a high-level prioritisation of successful results attainment which are noted as sustainable and future-based.
In all the sections of this report, there are a set of gaps and weaknesses in to improve value for money results and to ensure entire stakeholders are included. The different recommendations to RCU have been developed and entail;
- RCU ought to ensure they are expanding the level of their IT sourcing strategy through inclusion of all stakeholders before coming up with the most appropriate supplier
- Other than an increased reliance on the international entities in offering the IT systems provision, an initiation of systems aligned with their practices by engaging expertise view to increase value for money
- Ensuring offering of appropriate and significantly discounted prices to engage local suppliers for attaining high value for money
- The different issues in cash flow lead to COVID-19 pandemic and conflicts in Russian and Ukraine, RCU mist ensure investing in appropriate uncertainty
- RCU need to improve the need to attain a consistent attainment of value for excellence, fair-based practice, embrace on innovation and honest
Table of Contents
1.1 RCU Organisation Background. 3
1.2 RCU Organisation Structure, Procurement Team.. 4
1.3 Identifying Category of Spend. 4
2.0 RCU Stakeholders and their Importance. 7
3.1 Market Analysis Theories/Models 9
3.2 Market and Trends Analysis. 11
3.3 Level of Competition in Market Place. 12
4.0 Procurement Function to develop value for money outcomes. 13
4.1 Supplier Preferencing Matrix. 15
5.0 Price/Costs Management for IT Spend Category in RCU.. 16
5.0 Conclusions and Recommendations. 19
Appendix 1: RCU Spend Category of Spend. 23
Figure 1:Different RCU Strategies. 4
Figure 2:Hierarchical Structure of RCU.. 5
Figure 3:Category Management Approach. 6
Figure 6:RCU Stakeholders Analysis. 9
Figure 7:Porter’s 5 Forces Analysis. 12
Figure 8:Summary of the players in KSA tourism sector 13
Figure 9:IT Category of Spend Graphical Representation. 15
Figure 10:RCU and Triple Bottomline Aspects 16
Figure 11:Suppliers Preferencing Matrix. 17
Figure 12:Improvement and reduction areas for money for outcomes achievement by RCU.. 18
Figure 13:Kraljic Matrix Analysis Process. 19
Figure 14:Summary of how RDU Achievement of value for money outcomes 20
Table 1:SWOT Analysis Summary. 10
Table 2:STEEPLED Analysis for RCU.. 10
Table 3:Value for Money in the identified category of spend. 14
1.0 Introduction
1.1 RCU Organisation Background
Royal Commission for AlUla (RCU) is highly ranked as a successful organisation managing natural and historical locations based in North- West Saudi Arabia (KSA). The success of their mandate is to ensure that KSA premier as a good destination for nature, culture management and heritage (RCU, 2022). The foundation of RCU is from the KSA Vision 2030 with their output approximated to range from SAR 120bn for KSA GDP development as at year 2035 (RCU, 2021). This is intended to improve the KSA economy by the input of AlUla organisation. Their commitment scope is influenced by achievement of excellence and appropriate positioning to work with institutions international by involving different players. The organisation practices is summarised in figure 1;
Figure 1:Different RCU Strategies
As evidenced in RCU (2022a findings identifying that the KSA government has in full made an investment of approximately $2 billion. This is as a seed capital to develop AlUla historical areas of growth. Further, more than $3.2 billion similarly include investment in public-private partnerships to prioritise infrastructures for projects success as at 2023 year. The rationale of this is what RCU (2022) including AlUla operating upto 25,000 kilometers square inclusive of lush Oasis valleys, Sandstones mountains and traditional cultural heritage sites.
1.2 RCU Organisation Structure, Procurement Team
The Procurement and Supply Management (PS&M) operate as autonomous department of the entity integrating a hierarchy structure as illustrated in figure 2. All the departments work in synch to guarantee RCU success.
Figure 2:Hierarchical Structure of RCU
Further, through actively collaborating in working in the different departments, for RCU, it achieves a high-level value for money outcomes. This is since their operations are modern and involve most successful suppliers in KSA and internationally. The identified initiatives are implemented by prioritising on CIPS (2022) as inclusive of the terms and ocnditions to minimise overall contractual risks and exposing them to challenges as they are working on advancing their contracts.
1.3 Identifying Category of Spend
As evidenced in CIPS (2022a) the category of spend entail a logic categorisation of areas of spend. In figure 3 summary, category management used include market analysis, internal and external environment analysis, stakeholders management, strategies and policy development, assessing risks and achieving continuous improvement.
Figure 3:Category Management Approach
In the summary offered in appendix 1, for RCU, their procurement is divided into categories of construction, artefacts, arts and wildlife and heritage, hospitality and tourism services, corporate services and community services. For this assessment, spend category in their broaders corporate services and in particular IT. In this spend category, the various identified products and services are in figure 4;
For evidencing the necessity of this spend category to RCU practices, Saudi Gazette (2022) identify the RCU a having partnered with the RAPT Group for launching the initial autonomous electric pod for transport visitors. Additionally, from the time COVID-19 pandemic emerged, promotion of scope of technologies use in their practices inclusive of working from home, marketing and virtual attendance to the historical areas has doubled.
1.4 Scope of Assessment
Through holistically applying IT system for RCU entity, in this report, evaluation of the category of spend to different stakeholders have been identified. Further, the prioritation here is to evaluate procurement function achieving value for money results. This is by evaluating strategies used to manage costs for the IT spend category. The different markets of sourcing have also been adopted effectively. The rationale of this is to secure important costs and success of investing in this category. The outcome of this has been what PWC (2022) identify as increased the capacity of the organisation to managing 2.5 million touriusts every year with 10,000 rooms fully booked. To the 2021 KSA GDP, this increased it to approximately 120 billion with upwards of 45,000 jobs created.
2.0 RCU Stakeholders and their Importance
As evidenced in CIPS (2022b) definition, the stakeholders are people who have sufficient impct on organisation level advanced and success in their practice. The suppliers can be categorised as illustrated in figure 5;
Therefore, considering the RCU operations in sourcing the IT system, it is evident that the different stakeholders are grouped into figure 5. In order to evaluate interest and power, Mendelow Matrix analysis has been used. In CIPS (2022c) these stakeholders are identified from various quandrants with procurement professionals appreciating their engagement level core for their practice and sharing information as illustrated in figure 6;
Figure 6:RCU Stakeholders Analysis
High-Power and Low-Interest- For this category, it entail the IT department in RCU organisation mandated with the role of exercising increased power to ensure they attain value for money. Also, a significant interest is attained for successful stakeholders relationship achieved.
Low-Power and High-Influence- In this spend category, the IT sourcing and admin team in the organisation is successful. This is to leverage on lowered power and interest, influence and influencing stakeholders relation being core.
High-Power and High-Influence- For suppliers procurement and supply teams and accountants influence successful stakeholders relationships and practices. To succeed in their practice, collaborative approach, consulktation and exchange of knowledge-based and increased in awareness.
Low-Power and Low-Interest- For boards of management and legal teams possess a low power and interest in the entire IT systems sourcing strategy. This ensure promoton of appropriate legislation, policy making and aligning most appropriate strategy with good organisation direction.
3.0 Market Analysis
3.1 Market Analysis Theories/Models
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