Business Transformation: From A Supply-Driven To A Demand-Driven Approach in the Experience of Consip SPA

In Italy, the transformation of government procurement began in 2000 with the model developed by Consip SpA (a public company owned by the Ministry of Economy and Finance) for all public agencies across the nation. The paper is aimed to reconstruct the path taken by the public procurement reform in Italy gradually evolving from a supply-driven to a demand-driven approach. The Italian procurement transformation has co-existed with two different approaches to reform, which are working in parallel and sometimes at cross-purposes. A supply-driven approach focuses on tightening the controls on spending to tap economies of scale. A demand-driven approach focuses on decentralization and development of Electronic Public Administration MarketPlace (MEPA). The paper discusses the role Consip has played and is still playing to centrally guide the decentralization of public e-procurement, and shows the results of a sample investigation aimed at analysing the level of satisfaction of small/medium firms participating in the MEPA