Data Sharing Transforms Public Procurement

Historically, information asymmetries plagued the buying process. Buyers didn't know the true value of goods or services and often just accepted a price as given. In the age of the customer, price information is easier to come by, making the buying process more efficient. In the public sector, the publication of budgets and spending through open data initiatives is a first step in this direction. Open data makes access to information and data sharing easier; data sharing makes organizations smarter. Forrester's notion of adaptive intelligence illustrates the value of data sharing. Not only must organizations analyze their own data for insights, but they must also consume external, complementary data to fully benefit from the power of information. This report demonstrates how the aggregation and real-time sharing of procurement data has brought adaptive intelligence into the public sector. It outlines the specific benefits of collaboration through open data and information sharing and suggests a business model through which commercial benefits can subsidize the public benefits. Aggregation of procurement data creates a win-win situation for buyers and sellers alike.