Technology has always changed the world, but it’s never changed this fast. It’s so fast, in fact, that some industries find it difficult to keep up. The UK’s public sector is working hard to remain abreast of trends in technology and serve as a good example to other industries.
We will look at some of the top technology trends in 2024 and determine their impact in the public procurement marketplace.
Artificial Intelligence & Machine Learning
Artificial Intelligence is increasingly prevalent in procurement and the UK government is taking steps to ensure it continues. As proof, the Deputy Prime Minister’s speech on 28 February 2024 announced that the Government is dedicating £110 million to accelerate AI deployment in the public sector.
The rapidly growing number of suppliers in public procurement has prompted the Cabinet Office to publish Procurement Policy Notice (PPN) 02/24. The notice advises UK government bodies about tackling AI in public contracts. The idea is to ensure that contracting authorities know the advantages and risks of AI systems in procurement.
Advantages include:
- Locate and process vast amounts of complex information
- Real-time data
- Informed decision-making and bid writing
- Improve overall efficiency by up to 60%
- Save up to 40% on processing costs
- Task automation improves efficiency by up to 40%
Risks include:
- Open Source generative AI systems could provide inconsistent, conflicting, or incorrect data
- Sources of information aren’t always referenced – data is not verifiable
- Generative AI’s inability to factor in all elements in bid writing, like supplier-specific resources, techniques, and experience.
- Suppliers who use the same contract information will deliver identical or almost identical bids
- AI systems might not be sufficiently robust and reliable to protect public data from cyber threats and data breaches.
Machine Learning
Machine learning assesses vast amounts of data and uses the findings in a predictive capacity. Machine Learning technology learns from experience and uses data to improve its performance.
Machine learning starts with simple, repetitive tasks like invoice processing and learns to include more complex tasks, like contract negotiation.
You can help ML learn by inundating it with data. Artificial Intelligence and ML technology use data as training material, honing their analysis skills to extract quality, relevant information.
The tech is great, but there is still an essential human element to procurement. Ensure that your systems are geared to facilitate collaboration between man and machine.
The National Quantum Strategy
This is another sector that the Government is determined to conquer so it can be used in essential services. including procurement. It created the £15 million Catalyst Fund to drive the adoption of new technology across various industries in public procurement.
It does this through supply chain optimisation and massive data analysis. Data analysis helps supply chains optimise decision-making, identify cost-saving opportunities, better allocate resources, and reduce risk in a fluid market.
Cybersecurity In A Digital World
According to the 2022 National Cyber Security Centre’s annual review, Britain is the ‘cyber attack capital of Europe’. Ransomware is the most commonly used of cyber threats. Computer systems are blocked until companies meet criminals’ demands. Inaccessibility isn’t the only risk. There’s also the threat that sensitive data will be released into the public domain.
The risk is particularly severe in public sector organisations like the NHI, which store sensitive, private, and confidential data that must be protected against data breaches. Inaccessible systems pose a real threat to people in A&E or who are scheduled for life-saving surgery.
Supplier training to close security gaps
Not all data breaches are malicious. Improperly trained employees might unintentionally cause major damage. Regular training sessions ensure staff stay on top of cyber security technology trends and developments.
Route to market and cyber safety
The procurement process also impacts cyber security. For instance, frameworks that use Cyber Essentials (a government-backed scheme) enable organisations to conduct a cyber self-assessment to determine their security levels. Suppliers are also checked to ensure they have the required safety accreditations, so buyers can access cyber-secure suppliers on the framework.
There’s also the National Cyber Security Centre (NCSC). The NCSC ensures that suppliers are tested by independent parties. This ensures they understand cyber threats and know how to mitigate potential attacks.
Sustainable Tech Solutions and Energy Efficiency
Procurement can help the Government reach its net zero goals. Sustainable technology suppliers must meet the standards set by the Government in the Greening Government ICT and Digital Services Strategy 2020 – 2025. To meet the standards, business leaders must use sustainable technologies that do the following:
- Eliminate Scope 3 carbon emissions – emissions from organisations that are indirectly linked to primary suppliers.
- Use remanufactured technology, which is one of the top technology trends in procurement. It’s eco-friendly and improves energy efficiency, delivering a cost-effective solution to go green in the public sector.
- Create a circular economy by sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. It’s about preserving resources in the supply chain and minimising your impact on the environment.
Blockchain & Crypto
Blockchain technology is a decentralised digital ledger that improves security, efficiency, and transparency in all transactions. It’s the perfect audit trail because each step is signed and creates an unbroken record of procurement activities.
The latest developments in blockchain tech deliver additional benefits, including increasing productivity and boosting accuracy, efficiency, and speed. Streamlined supply chain management then generates cost savings during the procurement process.
There are still some kinks in the chain, though. For example, the technology can be complicated to implement and there are no hard and fast regulations. It’s up to organisations to ensure their blockchain technology complies with existing procurement regulations.
Cryptography
Blockchain technology goes hand-in-hand with cryptographic techniques, which provide security for sensitive procurement data and transactions. Cryptography is, in fact, an essential element in cyber security and falls within the ambit of the NCSC.
In a nutshell, cryptography uses encryption algorithms to secure data. Some of its benefits include utmost confidentiality, indisputable communication trails, data integrity, and user authenticity.
The Government is determined to stay on top of tech trends in crypto technology. The National Cyber Security Strategy is determined to leverage strategic technology trends to cement the country’s reputation as industry experts in cyber power, with a special focus on its cryptographic capabilities.
Challenges
The various industries in the public sector face different challenges in digital transformation, but certain issues are common to all public sector bodies.
Common challenges
Here are five common challenges that hold back the adoption of emerging technologies in a digital world.
Poor planning and preparation
A sound transformation plan accurately identifies and meets your organisation’s needs. Poor planning could result in wasted resources as organisations invest in digital tools that are unsuitable for purpose.
Old tech
Outdated infrastructure is inefficient, expensive to run, and can’t keep up with evolving technology requirements across industries. The longer it takes for decision-makers to upgrade their systems, the trickier the integration because backward compatibility only goes so far.
Accredited suppliers
Public sector suppliers don’t need any accreditations, but there’s always a risk with unaccredited enterprises because they haven’t proven their quality and control. This could result in delays, disruptions, and poor quality goods, services, or works that endanger public safety.
Look for suppliers who have:
- ISO 9001 certification: International standard for quality management
- ISO 27001 certification: Quality of security measures
- C-Level leadership: Trusted strategic consultancy experts
Skills shortages
The entire country is experiencing skills shortages, including tech experts in public procurement. There simply aren’t enough IT professionals (especially in-house IT professionals) to ensure a seamless transition into the modern technology landscape.
Budget
Budget is a big issue in public sector procurement. There are only so many pennies to go around. Organisations want to spend their pennies on initiatives or programmes they consider priorities. The thing is that digital transformation is a priority.
Technology & Marketing
Technology trends also impact Business-to-Government (B2G) marketing.
Data is everything. Without data, organisations can’t make informed, strategic decisions and marketing campaigns turn to virtual dust. Technology can collect and process huge amounts of data quickly. It analyses and interprets the data for key decision-makers to dial up or dial back certain aspects of their campaigns.
Automation and Artificial Intelligence technology streamline marketing processes by taking on time-consuming and repetitive tasks. Employees are free to nurture business relationships, focus on improving and refining current campaigns, and keep a watchful eye out for emerging technologies.
Cadence Marketing specialises in B2G marketing with a range of services, including market research and targeted email marketing.
Our partner, BiP Solutions, has decades of experience in the B2G arena, from digital platforms to techniques that boost the customer experience. This enables us to provide outstanding support and guidance as you investigate the importance of technology and digital business trends in marketing.
Contact us now for more information on specialised B2G marketing services.
