Ireland has laid a solid foundation for the digital transformation in public procurement through the mature use of e-procurement platforms for the tendering phase of the procurement cycle, as well as a supportive policy framework which encourages the use of data and digital tools for the transformation of government processes and services. However, gaps in areas such as the pre- and post-tender phases and the collection and use of data present opportunities to make public procurement more efficient and effective.
A digital transformation strategy for public procurement could establish a shared vision and direction for change. A successful strategy would require clear objectives to guide its development and implementation. Reflecting the principle that digital transformation should not be undertaken for its own sake, the three proposed objectives for Ireland’s digital transformation strategy reflect broader public procurement goals:
Building a more effective and user-centric public procurement system: digital transformation should enhance procurement through the redesign of processes to take advantage of digital tools and platforms and increased data availability. It should improve existing platforms and introduce new tools to simplify processes and complete the digitalisation of the procurement cycle.
Creating a supportive environment for the strategic use of procurement: digital transformation leverage data and digital tools to make it easier to implement and measure the use of procurement to pursue a range of policy goals.
Laying the foundations for enhanced evidence-based decision-making: by giving public buyers the tools to use data effectively, digital transformation can allow them to make informed decisions. With the appropriate analytical tools, data can be used to track individual procurements, guide the development of procurement strategies, and provide inputs for procurement policymaking.
The strategy should also ensure alignment with broader Irish and European strategies and plans, ensuring that the digital transformation of public procurement supports government priorities and benefits from initiatives and actions being implemented under other strategies. Digital transformation should be embedded in procurement policymaking, rather than seen as simply an enabler.
Ireland will also need to define the scope and timeline of the strategy. Applying the strategy to all Irish contracting authorities would align with the legal and policy framework and improve chances of success. A wider implementation means that more contracting authorities and economic operators benefit from interoperability and standardisation and decision makers benefit from data that cover more of the public sector and the supplier market. The timeline should be long enough to provide stability but remain sensitive to the rapidly changing digital procurement environment. This suggests a longer-term, phased strategy that is periodically reviewed and re-assessed. Assuming the strategy is launched in 2025, a 6-year term would balance the need for stability with the need for agility and align with Ireland’s broader digital and public sector transformation strategies.
Successful implementation requires clearly defined roles and responsibilities for the digital transformation strategy. Drawing on its experience in managing the national procurement platform and shaping government-wide procurement policy, the Office of Government Procurement should lead the digital transformation of public procurement in Ireland. Ireland’s sectoral central purchasing bodies should be integral partners in executing the strategy. Their ownership and proactive engagement are essential to drive digital initiatives and tailor them to the specific needs of their sectors.
As the primary users, contracting authorities and economic operators should be placed at the centre of the digital transformation of public procurement. Their inputs will be invaluable to inform the development and implementation of digital tools and platforms that can make procurement more effective and efficient. Consultation with other government bodies responsible for digitalisation and for public sector transformation will be essential to ensure alignment with broader government initiatives and engagement with civil society can help to ensure that the digital transformation of public procurement enhances transparency and accountability.
Effective governance structures will be critical to maintaining co-ordination and integration. In selecting a governance model, Ireland will need to balance providing autonomy, enabling agility and innovation with ensuring coherent implementation. Regardless of the level of centralisation, the governance system should include working-level bodies and communities of practice to direct projects and facilitate co-ordination, as well as high-level bodies to provide overall strategic direction and oversight.
Strategic principles provide a link between high-level digital transformation objectives and the selection and delivery of individual projects and initiatives. As key considerations for decisions around investment and implementation, they can help to ensure a common approach to issues such as data, interoperability or emerging technologies. The following are proposed as principles to guide the implementation of Ireland’s digital transformation of public procurement:
Digital by design: Embedding digital solutions when introducing new policy initiatives or revising existing processes can reduce complexity and ensure that digital transformation address real-world needs.
User-centric: the wide variety of public procurement users requires a user-driven approach. Mechanisms for involving users in design and ensuring that their diverse needs are met will need to be carefully considered.
Strategic data governance: decisions about how data are collected, shared and used will be critical to the success of the digital transformation strategy. Although Ireland is also developing a procurement strategy that will include a pillar on data, the implementation of the digital transformation strategy should consider how data can be used in planning, delivery, evaluation and monitoring.
Interoperability: given the complexity of the public procurement landscape in Ireland, there is a risk that transformation may happen in a piecemeal fashion. Rather than approaching transformation on a sector-by-sector or platform-by-platform basis, the digital transformation should seek to create an interoperable digital “ecosystem” of platforms and tools.
Emerging technologies: the use of emerging technologies, such as AI, hold the potential to increase productivity and responsiveness. Decisions about the use of emerging technologies should be guided by factors such as alignment with the objectives of the strategy, a clear value proposition, and the ability to scale and integrate with existing tools and platforms.
