Before developing a business case, it is crucial for a local authority to assess the market. This consists of conducting an intelligence study, to gain a good overview of the current state of the technology or service that will be procured, important trends, and factors driving the cost. The ultimate scope of this assessment is to become an “intelligent customer”.
Before developing a business case, it is crucial for a local authority to assess the market. This consists of conducting early market engagement, to gain a good overview of the current state of the technology or service that will be procured, important trends, and factors driving the cost. The ultimate scope of this assessment is to become an “intelligent customer”. There are several activities that can be carried out to assess the market.
Some examples are:
- engaging with potential suppliers of the service or technology provided
- participating in conferences
- issuing market surveys
- collecting case studies
- desktop research.
Additionally, it is advised to engage with other local authorities that have tried to reach or are trying to reach a similar outcome.
You should be asking the following questions:
- When do your contracts end and can you extend them?
- What are the strengths and weaknesses of the current service?
- What are your key drivers? What are your objectives?
- Do you have a procurement strategy in place? How does it fit with your other strategies?
- How long should the contract be?
- What type of contract should you have?
- What is the scope of work?
- Have you got the internal resources to deliver this?
- What timetable are you working to? What are your key milestones?
This will allow a local authority to further shape your specification, gather ideas on new innovative products, and understand if there are any changes within the market that may influence your requirements.
Early market engagement provides the foundation for a successful procurement by helping buyers make fully informed decisions.
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