1. How artificial intelligence can revolutionize public procurement September 2018
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2. Transparency
Govts are mandating publication of tenders, contracts and spending. Transparency ensures fair competition and allows citizens to hold government to account.
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3. The data is useful We can already use the data to
understand what we’re buying,
how suppliers perform and where to source from.
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4. Single bids and avg days for suppliers to respond (UK)

5. Capita: Average revenue per customer, number of customers

6. 4.5% 2017 increase in number of tenders for outsourcing:
Outsourcing tenders
2017 increase in number of
tenders for outsourcing:
4.5%
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7. 0.7% 2017 fall in est. value of tenders for outsourcing:
Outsourcing tenders
2017 fall in est. value of
tenders for outsourcing:
0.7%
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8. The savings challenge
The cost of savings is often too high, too much aggregation, contracts that are too long, too little competition.
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9. The savings challenge
Suppliers will ‘bid to win, deliver to profit’. Planned savings disappear with change orders and poor contract management.
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10. The savings challenge
Future savings will need to come from innovative sources of supply that drive competition, and better management of contracts.
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11. Exploiting data fully We can already use open data to
understand what we’re buying,
how suppliers perform and where to source from.
@spendnetwork | @open_opps | @ianmakgill

12. Performance data
We can also monitor suppliers and their contracts. Are they delivering on time and on budget? When do they fail to deliver?
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13. Continuously improve
We can use data to show where we are going wrong, and seeing what delivers better outcomes. Economic development? We can prove what works.
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14. Savings from data
Using data to find the right products from suppliers that deliver, at the best price throughout the contract.
Anything that deviates from this is a false economy.
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15. New analysis techniques
Having large, cohesive datasets (tens of thousands of documents) gives us the ability to spot and prevent problems early and make better decisions, using predictive analytics.
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16. New analysis techniques
Descriptive
analytics
Diagnostic
Predictive
Prescriptive
What happened?
Why did it happen?
What will happen?
How can we make
it happen?

17. New opportunities
Predictive and prescriptive analytics change how we will work, instead of taking a “hit and hope” approach to tendering we can predict outcomes early.
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18. New opportunities
Predicting which suppliers will deliver late or over budget or prescribing how to structure tenders that optimise the best pricing strategies.
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19. New opportunities
Finding the optimum sourcing strategy. Using thousands of tenders to find the correct methods for getting value from a market.
@spendnetwork | @open_opps | @ianmakgill

20. New opportunities
Identifying non-competitive tenders before they’re published, showing where they might be improved.
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21. We need open data
We need the data to know what is happening in markets and to use that as ‘learning’ data for algorithms.
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22. We need open data
We need this data to be structured so that details of a contract from multiple buyers can be analysed in the same way.
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23. We need open data
Open data keeps us honest, makes sure we don’t use these tools to restrict or distort markets.
@spendnetwork | @open_opps | @ianmakgill

24. Like to know more?
If you’d like to know more about predictive analytics and using data to improve procurement, come speak to me after.
@ianmakgill
@open_opps
@spendnetwork | @open_opps | @ianmakgill