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Piia Moilanen, Business Finland &
KEINO (twitter @MoilanenPiia)
How public innovative
procurement speeds up API
and platfo...
Case DigiOne, Joint Platform for Education
Reform
2018 city of Vantaa wanted to develop a
new digital platform for teachin...
Global edtech market is huge,
growing and in a state of flux…
• Global market is huge, growing and in a
state of flux:
• e...
DigiOne objectives
31.3.2021 4
Most of operational objectives
can be achieved only if data is
available and teachers’ time...
Why public sector should
invest in platforms and APIs?
• APIs and platforms enable/boost
• creation of data
• availability...
DigiOne Management Model
After the project, the responsibility
for ecosystem coordination and the
ownership of the platfor...
Organization models of platform and data
services for public actors
Public sector aims legally secure models that allow
Qu...
DigiOne is Investing in Ecosystem Creation
DigiOne’s ecosystem:
• network of actors
• the data, services, and
know-how the...
Need to network: Pioneering procurers should
participate business&innovation ecosystems
Orchestrator:
directs the network ...
DigiOne- procurement policy
DigiOne services are developed, built or
tendered by DigiOne. DigiOne is owns
their IPR’s. The...
DigiOne service model
Procurements, many ways to boost innovation
• DigiOne’s service concept includes the service platform and the
services bui...
Challenges
Platform and API economies
require public authorities to
renew procurement processes
31.3.2021
Esityksen tekijä...
31.3.2021 14
Too slow pace 70%
Too
labourious
38%
Tech skill gaps
60%
Unfavourabale
IPRs 33%
Innovation procurements-speci...
Innovation procurements-special challenge:
how to raise interest among companies?
31.3.2021 15
Are you interested in innov...
2-5
%
Great Opportunity in Public
Procurement
31.3.2021
Esityksen tekijä 16
• in the EU around 14% of GDP is spend on the
...
31.3.2021 17
SCALING !
Scaling up the customer
base for the platform/APIs
I am happy to share my thoughts with you!
You ca...
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apidays LIVE Helsinki & North - How public innovative procurement speeds up API and platform-based R&D in private sector by Piia Moilanen, Business Finland

apidays LIVE Helsinki & North 2021 - APIs, Platforms, And Ecosystems - Transforming Industries And Experiences
March 15 & 16, 2021

How public innovative procurement speeds up API and platform-based R&D in private sector
Piia Moilanen, Chief Advisor at Business Finland

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apidays LIVE Helsinki & North - How public innovative procurement speeds up API and platform-based R&D in private sector by Piia Moilanen, Business Finland

  1. 1. Piia Moilanen, Business Finland & KEINO (twitter @MoilanenPiia) How public innovative procurement speeds up API and platform-based R&D in private sector?
  2. 2. Case DigiOne, Joint Platform for Education Reform 2018 city of Vantaa wanted to develop a new digital platform for teaching. Old systems needed a major overhaul. 2019 funding was granted for the project This is achieved by building an open ecosystem and a national service platform for education. Goal is to improve learning and well-being by changing the way educational services are produced in Finland.
  3. 3. Global edtech market is huge, growing and in a state of flux… • Global market is huge, growing and in a state of flux: • education: over € 6 000 billion, +5% • edtech: € 25 billion, +18% • low degree of digitalisation (2-3%) • Public sector has huge role in education • Around the world, governments have focused largely on • putting more hardware in classrooms, • digitizing existing learning resources. • Schools often pick technology. So they get the products they need. • Globally it has had resulted in only diminishing returns for learning. • This approach limits also learning about what works at scale. …but why platform reform? • Finland has high quality public school system, skilled teachers • Pretty digitalized public sector
  4. 4. DigiOne objectives 31.3.2021 4 Most of operational objectives can be achieved only if data is available and teachers’ time is freed from routine work Most of technological objectives can be achieved only if common rules and standards for the game are introduced Most of ecosystem’s can be achieved only if platform scales up and companies want to join
  5. 5. Why public sector should invest in platforms and APIs? • APIs and platforms enable/boost • creation of data • availability of data • Innovation is increasingly data-based • Data enhance information based decision making of government, businesses and citizens • Open data creates a window of opportunity for governments to stimulate new economic activity
  6. 6. DigiOne Management Model After the project, the responsibility for ecosystem coordination and the ownership of the platform will be transferred from Vantaa to municipal inhouse company, Kuntien Tiera. The goal is that in 2028 there will be ~ 70 municipalities using the service. The cities of Espoo, Oulu, Tampere, Turku and Vantaa as well as Kuntien Tiera Ltd have signed a cooperation agreement for the long-term development of the DigiOne service platform and ecosystem.
  7. 7. Organization models of platform and data services for public actors Public sector aims legally secure models that allow Questions and challenges Predictable and trustworthy ownership Scaling at least in the public sector • E.g. Easy entry of public actors into the platform • Sufficiently low usage fees • More about procurement in-house status: http://www.sigmaweb.org/publications/Public- Procurement-Policy-Brief-39-200117.pdf The development of a functioning market and creation of new innovations and businesses --> platform ecosystem Motivation and financial model to further develop the platform to stay competitive & up-to-date Commercialization of software, its components, data or other IP, e.g, to the private sector or export markets Scenarios e.g for 5-10 years: • Need for services? Competitive situation? • Investment needs, financing possibilities? Business models & opportunity to collect payments • Need for Inhouse -status? • Need to scale in / outside public market? How functions/services should be separated/owned • E.g. Integration platform? Data infra? API’s ? • How e.g. state –aid can be used (competitive neutrality issues)? Legislation development, ownership policy?
  8. 8. DigiOne is Investing in Ecosystem Creation DigiOne’s ecosystem: • network of actors • the data, services, and know-how they produce are combined into a whole. Ecosystem parties include: • service users, education providers, research & assessment organizations, platform owners, service providers, content producers. Ecosystem also includes a variety of background actors e.g. authorities
  9. 9. Need to network: Pioneering procurers should participate business&innovation ecosystems Orchestrator: directs the network and vision work, activates joint R&D&I projects. Ecosystem parties: companies, researchers, public bodies. The ecosystem seeks significant new business, exports Public sector opportunities in ecosystem • increase and accelerate RDI work? • Producing references? Developing the market? • Help scaling new solutions Accelerate systemic change e.g. by creating API- ”standards, data models etc?
  10. 10. DigiOne- procurement policy DigiOne services are developed, built or tendered by DigiOne. DigiOne is owns their IPR’s. These services, like teaching planning, will be the same for all platform users. DigiOne’s services are mainly developed with open source. DigiOne-influenced commercial services will be produced in cooperation with innovative commercial operators and, the service provider owns their IPR’s. Commercial services are developed & owned entirely by operators. DigiOne supports education providers in procurement e.g. by including ensuring technical compatibility
  11. 11. DigiOne service model
  12. 12. Procurements, many ways to boost innovation • DigiOne’s service concept includes the service platform and the services built around it. • Some services will be produced by DigiOne or strategic partners. • More often there is room for commercial market players. • DigiOne compatibility is expected from commercial service providers, • e.g. through API interfaces, compliance with the rules of the game of the common ecosystems e.g. security and ethical aspects. • The goal is for DigiOne’s openly documented interfaces to encourage the creation of new innovative services. • DigiOne’s core data and data warehouses will be compiled on the data platform so that this data can be utilized in the ecosystem. 31.3.2021 12 Boosting adoption and scaling of innovations, market access for SMEs Enhancing systemic change by setting e.g. ”standards”, market change Enhancing possibilities for innovation Innovating within procurements -increasing customer based R&D
  13. 13. Challenges Platform and API economies require public authorities to renew procurement processes 31.3.2021 Esityksen tekijä 13 E.g 69% of French Govtech startups claim that it is “more difficult” to work with the public sector than with the private sector, and 6/10 startups find it “extremely difficult” to respond to a call for tenders.
  14. 14. 31.3.2021 14 Too slow pace 70% Too labourious 38% Tech skill gaps 60% Unfavourabale IPRs 33% Innovation procurements-special challenges: how to increase tech know-how and speed up? Major problem in innovative public procurements? (n=21 growth AI-companies)
  15. 15. Innovation procurements-special challenge: how to raise interest among companies? 31.3.2021 15 Are you interested in innovative public procurements? (n=21 growth AI companies) Do you engage willingly market dialogues? (n=21) YES 95% NO 5% NO 80% YES 20%
  16. 16. 2-5 % Great Opportunity in Public Procurement 31.3.2021 Esityksen tekijä 16 • in the EU around 14% of GDP is spend on the purchase of services, works and supplies. • In many sectors such public authorities are the principal buyers. • The public sector can use procurement e.g. to boost growth and investment, and to create an economy that is more innovative • rasing the amount of innovative procurement by one percent (1%) could boost customer based R&D by ~ € 20 billion/year
  17. 17. 31.3.2021 17 SCALING ! Scaling up the customer base for the platform/APIs I am happy to share my thoughts with you! You can follow DigiOne http://www.digione.fi/digione-eng/ Scalability of commercial components and microservices Scalable business and organisation model Economies of scale –> cost efficiency for the public sector

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