Open data is freely (openly) available to anyone who wants access to public sector information. It is, by nature, transparent, which is one reason it’s so popular among public sector bodies and contracting authorities that want to join the transparency and accountability movement and earn the public’s trust.
Currently, open data is wending its way into public sector procurement and, in its own way, is helping suppliers and buyers adjust to the new Procurement Act’s regulations and policies.
We’re going to focus on the effect open council data has on government suppliers.
The Function of Open Data in Public Procurement
The Procurement Act 2023 aims to simplify the procurement process to encourage growth in the market. Open data fills four roles that support central and local authorities on this mission.
1) Increased Transparency in Government Procurement
Open data is shared freely. Everyone with a vested interest has access to the same public sector information. In procurement, all potential suppliers have the data they need to fully understand a contract’s terms, including required qualifications, experience, and evaluation criteria.
Clarification questions and answers are shared across the board and updates to government data are available in real time.
2) Enhanced Accessibility to Public Sector Information
With more government data available, suppliers gain insight into market trends and public bodies’ processes and preferences based on previous projects.
They also have access to more relevant tenders. This increases their chances of landing contracts because they can tailor their bids to meet exact requirements, including the requirements that are more implied – like preferred added value.
This is where insight into public bodies’ behaviour patterns shows its worth.
3) Innovation and Collaboration
When everyone connected to a contract published on a procurement platform shares information, the way is paved for collaboration. Ideas, opinions, and suggestions fly between stakeholders, creating a collaborative approach to problem-solving.
Their combined efforts often lead to innovative solutions that add value to the contract. For example, streamlined procurement processes, enhanced suppliers’ or buyers’ operating systems, more impactful social value initiatives, and time, energy, or cost savings.
4) Performance Monitoring
Suppliers must regularly assess their performance so they know if they’re on an even keel, an upward trajectory, or crashing and burning. Open data enables suppliers to analyse performance metrics to ensure that, at worst, their keel is even.
Open Data Challenges in UK Government Procurement
It’s not all love and roses. Some aspects of open data present suppliers with rather thorny problems. Consider the three below.
1) Data Overload for Government Suppliers
If you’ve ever seen a bewildered kid in a candy store, you’ll know that being surrounded by so much yumminess is overwhelming. It’s the same with open data, there’s so much of it available that it’s difficult to identify the datasets that have the most value for your procurement strategies.
You might have to enlist professional help – pros who know how to use advanced tools to extract exactly the right government procurement data you need.
2) Lack of Data Quality and Standardisation Across Central and Local Government
This is similar to the data overload problem. There’s a glut of information available, but how can you tell quality data from stuff that belongs in a bin?
What if you’ve spotted data with the potential to revolutionise your operations and boost your business up supplier lists, but you can’t use it? There is no standard format for open data. Chances are that you’ll miss a lot of promising info because it’s incompatible with your systems.
The solution could lie in the hands of a professional open data wrangler. It might be a good idea to put one on speed dial.
3) Competition in Central and Local Government Departments
This is kind of a double-edged sword. Everyone has the same public sector information. The playing field couldn’t be more level if it tried. This increases competition in what is already a highly competitive market. You have to work harder to stand out from the hordes.
But that’s not necessarily bad because competition drives innovation, which advances the field and generally leads to growth and a healthier bottom line.
Actionable Steps for Suppliers to Cement Their Organisation in Public Procurement
Suppliers can take advantage of open data opportunities to establish themselves as forces to be reckoned with in the public sector procurement market.
They can:
Invest in Data Tools
The most effective open data analysis tool for suppliers is analytics. There are independent analytics software providers with AI-driven tools that generate descriptive, predictive, and prescriptive analytics. Predictive analytics, which forecasts future trends and patterns, is especially handy for long-term planning and strategising.
Some eSourcing or eProcurement platforms include analytics in their services. This is convenient because there’s no hopping between sources. They’re also specifically designed for the B2G market and can deliver particularly insightful (niche) results about local authorities and other public sector bodies.
Focus on Niche Opportunities in Local Government
We’ve mentioned that open data is huge, so huge it can lead to analysis paralysis. But, if you can keep your head, you can search for niche tender opportunities. Filters enable you to drill down into specific sectors or regions. However, all government procurement platforms have search filters, so it’s not exactly new.
Open data goes a step further by matching searches to areas where needs are not being met. It’s a tremendous opportunity to leap into a gap and fill it with your brand’s unique services. Often, the first suppliers in an area are favoured, because they have good relationships with local buyers (provided suppliers have delivered value, of course) and have already had a positive impact on local communities.
Collaborate with Public Sector Entities
Early engagement is considered best practice in public sector procurement. It’s a great way for buyers and suppliers to get to know and understand one another. The resulting relationships, combined with the smart use of open data, enable both parties to get down to the specifics of each government contract.
This deep knowledge facilitates collaboration, as suppliers and buyers know exactly what contracts require and can identify opportunities for extra value. Post-award collaboration can lead to innovative solutions that drive local social, economic, and environmental value while implementing strategies that contribute to the government’s net zero goal.
Monitor Policy Changes
This has less to do with procurement regulations and more to do with data-related policies. The UK government is on a digitalisation mission, which is fab. However, digital technology advances too quickly for policies and regulations to keep up.
It’s up to you to ensure that you keep abreast of policy updates as they are developed. This is fairly often, especially when it comes to data security and privacy. Again, it’s up to you to adapt your procurement strategies to remain compliant with data regulations.
Open data provides valuable assistance because it can monitor data specifically filtered for changes and updates in real-time.
Taking Open Data to Market
Open data also benefits B2G marketing agencies. Agencies can use open data in market, competitor, and buyer research. Analytics based on open data findings can forecast industry trends and patterns and compare clients’ performance against other suppliers in the sector.
All this data is used to develop targeted and personalised marketing campaigns that speak directly to public bodies’ pain points, while providing an innovative solution, with the promise of added value.
Cadence Marketing specialises in market research, tailored to your marketing needs, for example, challenges specific to your niche and granular reporting and analysis.
Contact us to book an obligation-free consultation or to get more information on our range of services.
