PCP/PPI Challenges and chances Johan Lundström, Swedish Competition Authority

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1 PCP/PPI Challenges and chances Johan Lundström, Swedish Competition Authority

2 The Swedish Competition Authority The Swedish Competition Authority is a state authority working in order to safeguard and promote competition and supervise public procurement in Sweden Provides procurement assistance and support Provide guidance and support for innovation procurement 200 employees. Located in Stockholm "Economic welfare through effective markets"

3 SILVER what is it? SILVER = a development project A pre-commercial procurement of new robotic solutions that assist the elderly in continuing living independent at home even with physical or cognitive disabilities. SILVER = an international consortia for performing the project A buyer s group, consisting of providers of health care to the elderly in their homes, and innovation actors. Total budget for development contracts is EUR, funded jointly by the buyer s group and by the EC Commission, FP7. Planning and performing the PCP, as well as learning and dissemination (establish and execute an agreed PCP process for cross-border PCPs) is funded by the EC Commission, FP7. 3

4 SILVER Consortium Innovation Organisations Technology Strategy Board (Coordinator) United Kingdom Aalto University Finland Brainport development NL the Netherlands Forum Virium Helsinki Finland Ministry of Health represented by NL Agency the Netherlands Region of Southern Denmark VINNOVA - Sweden Procuring authorities City of Eindhoven the Netherlands City of Odense Denmark City of Oulu Finland City of Stockport United Kingdom City of Vantaa Finland City of Västerås Sweden 4 4

5 SILVER Challenge: Make elderly more self-reliant + less care from care givers Possible to care for 10% more care recipients with the same amount of care givers by Need for new robotics solutions that can take over all or part of the work of care givers. These solutions should target assisting elderly and those caring for them with personal activities of daily living: Personal hygiene and grooming Eating and drinking Functional transfers, etc. 5

6 SILVER PCP Set-Up Start Prepare PCP Publish PCP and inform market Phase I: Solution design Evaluate tenders and award framework contracts Evaluate projects and exercise options for phase II Phase II: Prototype development End Phase III: Small-scale product/ service development Evaluate projects and exercise options for phase III

7 Lessons about transnational procurements Advantages Learning from colleagues Larger budget More efficient use of public money EC funding possibilities Challenges Language differences take time Getting on the same level of understanding needs and process Difficulties in comparing: e.g. comparing costs was not possible Travelling takes time (communicating via internet helps a lot) 7

8 General learnings from Swedish PCP Needs identification User involvement List problems/ challenges (not solutions!) Dont focus on goods or services Quantify the need Easier said than done! Organization Public sector not used to working in projects. Lack of understanding, no system för resource allocation Mandate from the mangement Important to show the benefits of a successful project Dedicated resources and project organization with steering group and reference group Should contain mixed competences Consider size and level of management. Difficult to get decisions and meetings 8

9 General learnings from Swedish PCP Realization How to reach new or other suppliers? Social media (expert networks LinkedIn, Facebook etc.) Supplier- and dialogue days to present the project and process. Possibility for speed dating Trade organizations Adjacent industries? The procurement Describe the need/ goal/ function, not desired solutions. Expert groups for the evaluation. Both technical knowledge and business competence. Dragons den? Use shall requirements with great care 9

10 General learnings from Swedish PCP So what do the suppliers think? Not used to the PCP process. Spend time on explaining the project and the process. Wake the market early. Need time to commit resources and to motivate to the mother company/ HQ why to put effort into innovation projects. Show future business volumes and benefits Access to test, development and implementation close to a demanding customer with special compentencies 10

11 Success factors for finding projects Technology intensive areas Procurer and technical officer specialized in certain areas, not diversified in many. See the problems every day. E.g. Water and waste companies. Engineering pride the latest and the best. Fast decisions regarding budget, reallocation of resources, initiation of projects etc. Organized cooperation/ buyers groups / trade organizationser. Find the enthusiast

12 Success factors for finding projects cont. Often external consultants are managing the projects or deeply involved Have a natural drive to see the project through and not to loose speed. Invoicing.. Oftenly have project management expertise More likely to have a helicopter perpspective than other employees Employees dont see development of the daily business as a primary task No structure for incentives of rewards for employees. Should run the the daily operation The other operations can function as usual

13 Success factors for finding projects cont. Vehicle. Is there an organization and capacity? Political will? Follow the money. What problems cost most? Regulations. Problems or needs as a result? Intermediaries. Innovation Centers and Test beds.

14 To keep in mind Plan for dissemination of the result? Cooperation with other similar organizations? A clear connection with the problem owner? Otherwise risk of becoming a research project. Who found the need? Research institute searching projects?