Competition begins before the call for tenders

The article also examines how far data can help us anticipate the future and where the limits of data-driven understanding lie. A single procurement procedure does not reveal whether something is an exception or a sign of a broader shift in demand. When procurement data from different public sector organisations is examined together, however, it may reveal trends that cannot be detected from an individual call for tenders.

Businesses need greater visibility into future demand

The government proposal concerning the national public procurement data repository is currently under consideration by Parliament. The repository is intended to bring together information on procurement procedures and completed procurements, as well as purchase invoice data from central government, municipalities, wellbeing services counties and the Social Insurance Institution of Finland.

Bringing these datasets together could provide businesses with early signals of changing demand. It could give them more time to develop solutions, strengthen their capabilities and find partners before a procurement procedure begins.

"Businesses do not invest in the past. They invest in what they believe will happen next,” says Sanna-Maria Bertell, Senior Adviser at the Confederation of Finnish Industries (EK).

Services built on open data could make these market insights available to small and medium-sized enterprises that lack the resources to analyse large datasets themselves.

Data alone does not guarantee understanding

The same data could help public sector organisations identify developments such as declining competition, rising prices and changes in procurement practices. More data, however, does not automatically lead to better decisions.

“The public procurement data repository addresses the problem of access to information, but it does not automatically solve the problem of understanding. Procurement data tells us what happened, but rarely why it happened or whether the outcome was the best possible one,” says Seija Friman, Project Director at the State Treasury.

The article also extends its perspective to Europe and considers whether comparable procurement data could help Finnish businesses identify new markets beyond Finland. It also asks whether competitive advantage comes from spotting a tender opportunity or from anticipating shifts in public sector demand.

From the past to the future

The Invisible Market, written by Henni Purtonen, Communications Specialist at the State Treasury, is part of the State Treasury's 150th anniversary article series. The series brings together perspectives on the past, present and future. The articles explore societal change from different angles and highlight the forces shaping society. Rather than offering ready-made answers, the series invites discussion and new interpretations.