© Primona och REUSE Company 2019
Procurement, purchasing and contract management has never been easier, prettier or smarter than with the introduction om AI.ENCOSE SPAIN Madrid 14:th November 2019
Ragnar LindholmHead of marketing, [email protected]+46-70-6960740
© Primona och REUSE Company 2019
Fleminggatan 20A
Stockholm
1998founded
+330Public sector organisations publish via Kommers+400
organisations
+100000Suppliers monitor procurements free of charge on
Kommers Annons on daily basis
Primona develops Kommers, for procurement and purchasing
© Primona och REUSE Company 2019
Primona co-operate with Spanish REUSE Company
❑Primona’s primary focus is to make the need-to-invoice-process efficient▪ Significant player in the public sector in Sweden.▪ Kommers Procurement include management of
structured templates, phrase libraries and a procurement library. Requirement texts have, until now, been left solely to the Procurement Officer.
▪ Identified need for assisting customers in requirement specification work.
❑REUSE Company, an expert in NLP▪ Experience from System Engineering and Requirement
Specification in the aerospace industry and automotive industry, where an incorrect specification can be life critical.
▪ See a large potential in addressing the public sector.
© Primona och REUSE Company 2019
Evolution of procurement systems
© Primona och REUSE Company 2019
Evolution of procurement systems
2000 BC
BCMARKET
How much for 10 sheeps?
2 cows!
© Primona och REUSE Company 2019
Evolution of procurement systems
Dear Sir!
Please
quote a
new doll
1880 AC
!
Dear
Madam!
Barbie
for
£ 0.75
© Primona och REUSE Company 2019
Evolution of procurement systems
1930 AC
© Primona och REUSE Company 2019
Evolution of procurement systems
1970 AC
UNA:+.? '
UNB+IATB:1+6XPPC+LHPPC+940101:0950+1'
UNH+1+PAORES:93:1:IA' MSG+1:45'
IFT+3+XYZCOMPANY AVAILABILITY'
ERC+A7V:1:AMD' IFT+3+NO MORE FLIGHTS'
ODI'
TVL+240493:1000::1220+FRA+JFK+DL+400+C'
PDI++C:3+Y::3+F::1'
APD+74C:0:::6++++++6X'
TVL+240493:1740::2030+JFK+MIA+DL+081+C'
PDI++C:4' APD+EM2:0:1630::6+++++++DA'
UNT+13+1' UNZ+1+1'
*Heathrow freight scheme ”LACES” is the basis for the UN/Edifactstandard in e-commerce
© Primona och REUSE Company 2019
Evolution of procurement systems
1995 AC
How much
for
Win95?
$250
+
Support
© Primona och REUSE Company 2019
Evolution of procurement systems
2014 AC
Contract specification
How much
for a PC?Tender
e-procuremente-tenderinge-auction
e-commercee-signing
e-contracte-orderinge-invoicing
© Primona och REUSE Company 2019
So….?
Procurement systemssimply evolve with other technical achievements
© Primona och REUSE Company 2019
Modern procurement systems
© Primona och REUSE Company 2019
What functionality does a basic procurement system provide today?
Suppliers (Tenderers)
Buyer(Procurement Officer)
Procurement portal Supplier portal
Planning
Contract Spec Work
Invitation/Publishing
Q&A
Tender opening
Evaluation
Decision and award
Contract, frame agreement
Archive and close
Search and monitor
Read and download
Q&A
Write tender
Submit tender
E-auction
Messages
Upload pricelist
e-Sign contracts
© Primona och REUSE Company 2019
Earlier versions of procurement systems were limited to publish files and receive tenders as files.
Create contract specification documents
Upload in procurement
system
Publish notice / invite
Receive e-tenders as document
Evaluate tender
documents
❑Contract specifications were created outside the platform❑Tenders were evaluated outside the platform
Older procurement system
© Primona och REUSE Company 2019
Newer procurement systems embed specification work and evaluation inside the platform
Create contract specification documents
Publish notice /
invite
Receive e-tenders
Automated evaluation of
tenders
❑The procurement process is planned inside the platform❑Contract specifications are created inside the platform❑Tenders are evaluated using automation inside the platform
Newer procurement system
Prepare evaluation
Plan Award
© Primona och REUSE Company 2019
Kommers
© Primona och REUSE Company 2019
• A modular business system for the entire procurement and purchasing process.
• From need and project start up to procurement, contract management, ordering, invoice management and follow up - in a fully integrated process. Traceability at all stage.
• Responsive and adaptive user interface through all modules. Intuitive use for minimal training. Support for mobile use.
• Available as a SaaS service or Single tenant system (eNterprise)
• Verified and selected for high security applications.
What is Kommers?
© Primona och REUSE Company 2019
18
SUPPLIER PORTAL(Kommers Annons)
SUPPLIER1 SUPPLIER2 SUPPLIER3
SYSTEM PARAMETERS
DATA
CUSTOMPARA-
METERS
DATA DATA
SUPPLIER ORDERSYSTEM
FINANCE SYSTEM
DATASOURCES
BI-SYSTEM
PROCURMENT PORTAL (core)
…
Buyer / Procurement officer
Supplier / Tenderer
CREDIT CHECKCOMPANIES
DMZ
Kommers Architecture
CUSTOMPARA-
METERS
CUSTOMPARA-
METERS
KOMMERS CENTRAL SERVICES
TAXAUTHORITY
E-SIGNING
E-SENTOOL(TED)
PROCUREMENTCATALOGUE
KOMMERS MONITORING
KOMMERS KAI
KOMMERS KAI
Possible if Kommers eNterprise
FIREWALL
© Primona och REUSE Company 2019
SUPPLIER RELATIONSSHIP MANAGEMENT
ORGANISATIONALNEEDS
SUPPLIER DATABASE
PROCUREMENTCONTRACT
MANAGEMENTPURCHASE
ORDERINVOICE
MANMAGEMENTPAY
RECLAIM AND SANCTION
PROJECT- AND COST CENTRE MANAGEMENT
A model for the entire procure-to-pay process
© Primona och REUSE Company 2019
SUPPLIER RELATIONSSHIP MANAGEMENT
ORGANISATIONALNEEDS
SUPPLIER DATABASE
PROCUREMENTCONTRACT
MANAGEMENTPURCHASE
ORDERINVOICE
MANMAGEMENTPAY
RECLAIM AND SANCTION
PROJECT- AND COST CENTRE MANAGEMENT
Modular design for the entire procure-to-pay process
© Primona och REUSE Company 2019
SUPPLIER RELATIONSSHIP MANAGEMENT
ORGANISATIONALNEEDS
SUPPLIER DATABASE
PROCUREMENTCONTRACT
MANAGEMENTPURCHASE
ORDERINVOICE
MANMAGEMENTPAY
RECLAIM AND SANCTION
PROJECT- AND COST CENTRE MANAGEMENT
From need to contract
© Primona och REUSE Company 2019
SUPPLIER RELATIONSSHIP MANAGEMENT
ORGANISATIONALNEEDS
SUPPLIER DATABASE
PROCUREMENTCONTRACT
MANAGEMENTPURCHASE
ORDERINVOICE
MANMAGEMENTPAY
RECLAIM AND SANCTION
From contract to invoice
PROJECT- AND COST CENTRE MANAGEMENT
23
SUPPLIER
Approve,
categorize, and
track current
vendors
CONTRACT
The Agreement catalog
displays valid
agreements with
approved vendors.
The contract related
goods and services
are structured in
articles, collected in
price lists and made
orderable
FREE TEXT ORDER
Enkel fritextbeställning
med orderrader följt av
attest
INVOICEPRICE LIST
ARTICLE
ORDER
Selection of articles in the
internal order shop
followed by certificate.
DELIVERY ATTEST
Checking the delivery
Logic and traceability
Who ordered?
Are you coming attesterade?
Who approved the delivery?
Which agreement was used?
Who is responsible for the agreement?
What are the commercial conditions?
How much have we ordered on the
contract?
How much have we bought from
this supplier?
Is it the right articles
ordered?
Is it the right prices?
Which articles have
disappeared or been added?
Have prices changed?
Who mede the
procurement?
Request
from who?
Kommers Project module can be used for control of the entire P2P-process
AC
TIV
ITY
TIME
NEED ANALYSIS
MARKET ANALYSIS
PROCUREMENT
CONTRACT/AGREEMENT
FOLLOW UP
REQUEST
Planned Current
RFI
Kommers ProjeCt
Kommers
Procurement
Kommers Enkät, Reklamation, Sanktion -------------------→
Supplier reccord
Kommers Market
PURCHASE ORDER
Kommers Contract
Kommers Order
25
AC
TIV
ITY
RESOURCE PLANNING
MARKET ANALYSIS
PROCUREMENT
CONTRACT
DEVIATIONS
REQUEST
Planned Current
Kommers Project
Kommers
Procurement
Kommers Survey, Reclaim, Sanction -------→
Kommers Market
AFTER MARKET ORDER
Kommers Contract
Kommers Order
PROCUREMENT
PROCUREMENT
CONTRACT
CONTRACT
TIME PLANNING
RFI
ORDER/DELIVERY
ORDER/DELIVERY
ORDER/DELIVERY
FOLLOW UP
Kommers Project module can be used for control of the entire P2P-process
26
Project
Request Procurement Contract
Interoperation between modules Survey
From PROJECT output is e.g. • Procurement templates• Field information for bookmarks• Article specification
From REQUEST comes e.g:• Commercial strategy• Project connection• Article specification
Output from PROCURMENT, e.g:• Supplier information• Tender prices• Contract paragraphs• Tender rank
In CONTRACT module:• Contract documents• Contract catalogue• Contract planning
SURVEY can be used for e.g:• Contract follow up
© Primona och REUSE Company 2019
Procurement officers are guided in a process specifically for the selected procedure.
© Primona och REUSE Company 2019
Example of a one-step procurement
PLAN AND CATEGORISE
CONTRACTSPECIFICATION DOCUMENTS
INQUIRYOPENING,
EVALUATION, AWARD DECISION
CONTRACT OR FRAME
AGREEMENT
ARCHIVE AND FINISH
MONI-TORING
REGISTER AND FOLLOW
CREATE TENDER
SUBMIT TENDER
RECEIVE AWARD
INFO
SIGN CONTRACT AND PRICELIST
ADDI-TIONS
SUPPLIER PORTAL
Buyer / Procurement officer
Supplier / Tenderer
PROCUREMENT AND PURCHASING PORTAL (CORE)
© Primona och REUSE Company 2019
Example of a two-step procurement
PLAN AND CATEGORISE
CONTRACTSPECIFICATION DOCUMENTS
INQUIRYOPENING,
EVALUATION, AWARD DECISION
CONTRACT OR FRAME
AGREEMENT
ARCHIVE AND FINISH
MONI-TORING
REGISTER AND FOLLOW
CREATE TENDER
SUBMIT TENDER
RECEIVE AWARD
INFO
SIGN CONTRACT AND PRICELIST
ADDI-TIONS
SUPPLIER PORTAL
Buyer / Procurement officer
Supplier / Tenderer
PROCUREMENT AND PURCHASING PORTAL (CORE)
APPLICATION PROCESS INCL.
Q&A
APPLICATION
© Primona och REUSE Company 2019
Example of a two-step procurement
© Primona och REUSE Company 2019
The Reference group function allows different internal groups participate in part of the procurement
© Primona och REUSE Company 2019
Selective and public invitation
Buyer / Procurement officer Supplier / Tenderer
PUBLIC
NOTICE
Monitoring service
A
B
C
Suplier
Buyer / Procurement officer Supplier / Tenderer
SELECTIVE INVITATION
A
B
C
Suplier
PROCUREMENT PORTAL SUPPLIER
© Primona och REUSE Company 2019
Procurement officers have the freedom to build specifications using various formats• Structured
criteria/contract specification (information and form based questions)
• Structured price/article specification
• Documents (files)
• Very large archives (for works)
© Primona och REUSE Company 2019
• Editing structured contract specification resembles what you expect from a word processor:
• Preview mode• Contents outline mode• Editing mode
• Possibility to create PDF
© Primona och REUSE Company 2019
A structured phrase is not just text, it consist of:
• Heading info• Name• Automatic numbering• Indent level, e.g. 1.2.3.4.5.6
• Text with full formatting including tables, pictures and book marks
• A criteria type definition• Information• Qualification criteria (on tenderer)• “Shall criteria” (for product/service)• “Should criteria” (3 different types)
• Attribute settings• Use as agreement paragraph• Supplier can add comment• Comment is mandatory• Supplier can refer to files• Assessment only by procurer
• Response options with value• Simple response to comply• Selection list• Multiple selection list• Form questions
© Primona och REUSE Company 2019
Structured format increase steadily
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2009 2010 2011 2012 2013 2014 2015 2016 2017 Prognos 2018
Andel strukturerade upphandlingar över total Kommers eLite + Kommers Inköp Gävleborg
Antal annonserade upphandlingar * Antal strukturerade över total* Direktupphandlingar Ratio
Andel strukturerat över totalAntal upphandlingar
© Primona och REUSE Company 2019
Master template (SuperAdmin)
12. This is a common criteria text
to be used in procurement and
templates
1. This criteria was typed in
manually for this template
1. This criteria was typed in
manually for this procurement
33. This is a common criteria text
to be used in procurement and
templates
45. This is a common criteria text
to be used in procurement and
templates
56. This is a common criteria text
to be used in procurement and
templates
38. This is a common criteria text
to be used in procurement and
templates
2. This text was copied from a
procurement
2. This criteria was imported from
file
3. This text was selected from a
Master library and therefore not
possible to edit
4. This criteria was imported from
file
4. This criteria comes from a
template
Template 1
1. This criteria was typed in
manually for this template
3. This text was selected from a
Master library and therefore not
possible to edit
Template 2
4. This text was selected from a
Master library and therefore not
possible to edit
Add from template
Add from procurement
Add from file
Import from Word/pdf
Create new
Phrase libraries and template hierarchy
5. This criteria comes from a
template
9. This criteria comes directly from
a Master library
Add from template
Add from procurement
Add from file
Import from Word/pdf
Create new
Add from template
Add from procurement
Add from file
Import from Word/pdf
Create new
3. This criteria was copied from
another procurement
6. This criteria comes from a
template and indirect from a
Master library
7. This criteria was entered manual
8. This criteria comes from another
template
Template (SuperUser) Procurement (ProcOfficer)
Master template 1 Procurement A
Phrase libraries and templates facilitate internal harmonisation…
1. GENERAL INFORMATION
Contract specification
2. SUPPLIER QUALIFICATION
3. ADMINISTRATIVE CONDITIONS
7. EVALUATION
8. ADDITIONAL CONTRACTUAL
CONDITIONS
4. REQUIREMENTS ON PRODUCT
5. REQUIREMENTS ON SERVICES
6. OTHER REQUIREMENTS
..however, they do not improve the quality of requirements on the product or service!
39
AFA.1 Det här kravet hämtades via
projekt. Är låst från projektmallen.
AFA.12. Det här kravet hämtades
via projekt. Är ej reigerbar.
AFA.13 Det här kravet hämtades
via projekt. Är redigerbar.
AFA.121 Det här kravet hämtades
via projekt. Är redigerbar.
AUA.1 Det här kravet kommer från
mall Konsult. Är låst
AUA.3 Det här kravet skrevs
manuellt
9. Det här kravet hämtades direkt
från AMA-mallen. Är låst.
8. Det här kravet kom från AMA-
mallen och är låst
Html/pdf stylsheet PDF
+ =
How a pdf-file is created
Structured document
Template management
40
Mastermall
41
Kommers proprietary import and export format
42
Settings (header)
Section (segment)
Name Rubriken på huvudkapitlet (segmentet)
Description Beskrivande text i html-format
IsAgreementSegment {True/False}
Ta med i avtalet även om inga stycken i
sektionen
SeqNo {#} Sekvensnummer på segment, första = 0
<Segments><Segment><Name>ALLMÄN ORIENTERING</Name><Description>I detta kapitel beskrivs upphandlingen och
kontraktsföremålet.</Description><IsAgreementSegment>true</IsAgreementSegment><SeqNo>0</SeqNo>
SegmentHolder Generella inställningar för alla segmentAutomaticNumbering {True/False} Automatisk numrering (Ja/Nej)
AllowRequestSecrecy {True/False}Tillåt att anbudsgivare begär sekretess på enskilt krav (Ja/Nej)
SegmentHolderType {CriteriaTemplateSet} Typ av format (idag endast en)
<?xml version="1.0" encoding="UTF-8"?>
<SegmentHolder>
<AutomaticNumbering>true</AutomaticNumbering>
<AllowRequestSecrecy>false</AllowRequestSecrecy>
<SegmentHolderType>CriteriaTemplateSet</SegmentHolderType>
Kommers proprietary import and export format
43
<Criterion>
<CriterionText>Hässle stad<br /> Kommunledningskontoret,
Tekniska avdelningen <br /> Norra Kringelvägen 11<br />
987 65 HÄSSLE STAD<br /> Tel. 0987‐65 43
21</CriterionText>
<AllowFileReference>false</AllowFileReference>
<AllowSupplierComment>false</AllowSupplierComment>
<AnsweredByProcurer>true</AnsweredByProcurer>
<CreateDate>2019-10-04T12:16:15.127</CreateDate>
<DeleteDate/>
<CriterionType>QualificationCriteria</CriterionType>
<DeletedInformation/>
<EspdId></EspdId>
<LockMode>NoLock</LockMode>
<Heading>Deltagande i en kriminell organisation</Heading>
<IndentCount>0</IndentCount>
<IndexNumber>1.1</IndexNumber>
<IsAgreementParagraph>false</IsAgreementParagraph>
<SeqNo>0</SeqNo>
<SupplierCommentMandatory>false</SupplierCommentMandatory>
<Options>
<Option>
<Description>Kravet uppfylls:</Description>
<Value>0</Value>
</Option>
</Options>
</Criterion>
CriterionText Beskrivande text i html
AllowFileReference {true/false}Om True visas filbläddrare och tillåt uppladdning av fil
AllowSupplierComment {True/False} Om True visas kommentarsfält och tillåt kommentar
AnsweredByProcurer {True/False}Om True stängs möjlighet att göra självuppskattning enligt svarsalternativen
CreateDate {YYYY-MM-DDTHH:MM:SS} Datum och tidpunkt då kravet skapades
DeleteDate {YYYY-MM-DDTHH:MM:SS} Datum och tidpunkt då kravet ströksCriterionType {
PureTextCriteriaQualificationCriteriaShallCriteriaShouldCriteriaShouldMultipleChoiceShouldMultipleChoiceExcluding
KravtypEndast informationstextKvalificeringskravSkakravBörkrav (enkelt binärt)Börkrav med flervalBörkrav med flerval, ett valbart
EspdId Guid med ESPD-kod för identifiering av kravetLockMode {
AllLockedLockedTextsLockedOptionsNoLock
Lås för redigeringAllt låstLåsta texterLåsta inställningarInget låst
Heading Rubrik
IndentCount {0,1,2,3,4,5} Indenteringsnivå 0-5
IndexNumber Indexnummer om numrering
IsAgreementParagraph {true/false} Om true är paragrafen uppmärkt som avtalsparagraf
SeqNo {#} Sekvensordning på kravet
SupplierCommentMandator {true/false} Om true kommer kommentar att krävasOption
DescriptionValue
SvarsalternativBeskrivande textMatematiskt värde (poäng/mervärde)
Paragraph (criterion)Kommers proprietary import and export format
44
<InformationRequests>
<InformationRequest>
<RequestText>Ditt svar?</RequestText>
<Mandatory>true</Mandatory>
<EspdId>005eb9ed-1347-4ca3-bb29-9bc0db64e1ab_Group[0]_Requirement[0]</EspdId>
<ResponseType>INDICATOR</ResponseType>
</InformationRequest>
Paragraph continue (criterion)
FortsättningInformationRequests
RequestTextMandatory {true/false}EspdIdResponseType
{INDICATORDESCRIPTIONEVICENCE_URLCODEDATEPERIODCODE_COUNTRYQUANTITYQUANTITY_INTEGERQUANTITY_YEARSAMOUNTPERCENTAGE
InformationsfrågaBeskrivande frågaObligatoriskt svarGuid med för id för svarsalternativetSvarstyp
Rullist Ja/NejSvarsfält fritextWebblänkKodDatumfältDatumintervallLandskodNumeriskt värdeHeltal nummerHeltal årBelopp och valutaProcentsats
Kommers proprietary import and export format
Tendering and evaluation
med Kommers gör vi inköp lättare...
Theori evaluation model
PRICE
QUALITY
Max budget
Lowest
quality level
Higher
quality no
feature
Unreasonably
low price
PRICE
QUALITY
Max
budget
Lowest
quality level
Higher
quality no
feature
Unreasonably
low price
0
Maximum
added
value
”Shall”
”Should”
Theori evaluation model
• Evaluation models are fundamental in procurement (public or private)
• The principle is that the tender proces (P) and quality (Q) are evaluated together to result in a ranking list (R) of the tenders.
med Kommers gör vi inköp lättare...
Svar på
krav&kriteriefråga
.
Modell
Svar på
artikel&prisfråga
∑ Q
∑ P
R
Resultat för
rangordning
Funktion (Q, P)
Efter utvärdering av
upphandlare
Efter justering
saknade artiklar och
förhandling
Theori evaluation model
• Evaluation models are fundamental in procurement (public or private)
• The principle is that the tender proces (P) and quality (Q) are evaluated together to result in a ranking list (R) of the tenders.
med Kommers gör vi inköp lättare...
Svar på
krav&kriteriefråga
.
Modell
Svar på
artikel&prisfråga
∑ Q
∑ P
R
Resultat för
rangordning
Funktion (Q, P)
Efter utvärdering av
upphandlare
Efter justering
saknade artiklar och
förhandling
Theori evaluation model
Example of evaluation model “Added value”
med Kommers gör vi inköp lättare...
.
Model
∑ Q
∑ P
RR= f (P, Q)
Anbudsgivare
/ Tenderer
Prisvärde /
Price value
(P)
Mervärde /
Addded value
(V)
Jämförelsepris
Comparison value
(C)
Rang
/Rank
(R)
8 1 167 000 kr 160 000 kr 1 007 000 kr 1
12 1 107 000 kr 60 000 kr 1 047 000 kr 2
17 1 267 000 kr 160 000 kr 1 107 000 kr 3
9 1 377 000 kr 260 000 kr 1 117 000 kr 4
12 1 207 000 kr 0 kr 1 207 000 kr 5
4 1 307 000 kr 100 000 kr 1 207 000 kr 6
2 1 307 000 kr 60 000 kr 1 247 000 kr 7
18 1 367 000 kr 60 000 kr 1 307 000 kr 87
5
6
14
4
21
• Exempel
Linjärskalemodellen
med Kommers gör vi inköp lättare...
.
Model
∑ Q
∑ P
RR= f (P, Q)
Anbudsgivare
/ Tenderer
Prisvärde /
Price value
(P)
Mervärde /
Addded value
(V)
Jämförelsepris
Comparison value
(C)
Rang
/Rank
(R)
8 1 167 000 kr 160 000 kr 1 007 000 kr 1
12 1 107 000 kr 60 000 kr 1 047 000 kr 2
17 1 267 000 kr 160 000 kr 1 107 000 kr 3
9 1 377 000 kr 260 000 kr 1 117 000 kr 4
12 1 207 000 kr 0 kr 1 207 000 kr 5
4 1 307 000 kr 100 000 kr 1 207 000 kr 6
2 1 307 000 kr 60 000 kr 1 247 000 kr 7
18 1 367 000 kr 60 000 kr 1 307 000 kr 8 7
5
6
14
4
Anbudsgivare /Tenderer
Anbudspris / Tender price (P)
Prispoäng / Price score (s)
Kvalitetspoäng / Quality score (Q)
Jämförelsetal / Comparison value (C) Rank (R)
8 380000 86,67 82 168,67 1
12 450000 75,00 85 160,00 2
17 300000 100,00 54 154,00 3
9 200000 100,00 53 153,00 4
12 150000 100,00 50 150,00 5
14 650000 41,67 100 141,67 6
4 850000 8,33 90 98,33 7
18 900000 0,00 86 86,00 8
6 950000 0,00 77 77,00 9
22 1300000 0,00 65 65,00 10
Example of evaluation model “Absolute linear score”
© Primona och REUSE Company 2019
So far procurement systems (e.g. Kommers) primarily assist as project management tools for administrating the procurement
© Primona och REUSE Company 2019
Requirement specification meet Procurement system
Requirement specification
Procurement system
Content Process
© Primona och REUSE Company 2019
So, why bother about AI?
“They were convinced that no one would ever want to look at their pictures on a television set”
Steven Sasson
Inventor of the digital camera at Kodak
© Primona och REUSE Company 2019
Introducing AI and Natural Language Processing in Procurement systems
© Primona och REUSE Company 2019
*
* Artificial intelligence
(AI)
Machine learning (ML)
Natural language processing (NLP)
Expert systems
Vision
Speach
Planning
Robotics
Deep learningSupervisedUnsupervised
Content extractionClassificationMachine translationQuestion answeringText generationText analysis
Image recognitionMachine vision
Speach to textText to speech
* = Current focus
© Primona och REUSE Company 2019
NLP in Kommers
❑Recently Primona implemented AI assistance in writing specifications in Kommers.
❑The solution is developed in cooperation with The REUSE Company, a Spanish organisation that specialises in requirement management based on NLP
❑The solution is using Natural Language Processing (NLP), following INCOSE Guide for Writing Requirements.
© Primona och REUSE Company 2019
Current implementation of KAI
❑Help when writing requirement text ▪ Provide feedback when working with individual
requirements.▪ Summary report on requirement text as PDF.▪ Feedback if a text use undefined words, can be
misinterpreted or use bad syntax.
❑KAI demand accurate requirement text▪ KAI does not like many requirements in the
same requirement text. ▪ KAI does not like long sentences or undefined
words.
❑Is not intended for analysing other text▪ KAI does not ”understand” pure information text▪ KAI does not provide feedback on completeness
or consistency of the contract document.
© Primona och REUSE Company 2019
Important design criteria
❑A Procurement Officer will learn the operation of KAI in less than 5 minutes.
❑Understanding the feedback from KAI is part of a 2-4 hour training in how to write good requirement specifications.
❑First target is to improve specification work in public sector, to reduce the “Death Spiral”.
© Primona och REUSE Company 2019
Target is to reduce the “The death spiral – effect”
Internalstakeholders
Tenderer/Supplier
Procurement officer
Unclear understanding
of needs
Unclear understanding
of needs
Incoplete and incorrect
requirements
Incoplete and incorrect
requirements
Bad product solving the
wrong problem
Bad product solving the
wrong problem
Interprete
Interprete
Fail in system test
Unhappy customer
Fail in system test
© Primona och REUSE Company 2019
KAI is an option integrated in Kommers. In pilot testing.❑A ”KAI icon” is visible in all locations where requirement text is edited
▪ System administration: Administration of structured templates▪ Procurement module: Application specification, Contract specification, The reference group
collaboration view ▪ Contract module: Where structured contract documents are created
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How do I use KAI in edit mode? (1 of 3)
❑1. When editing requirement text click on the KAI-icon ( ).❑2. In case KAI find potential specification errors it will display comment
remarks on words.
1.
2.
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3.
❑3. Click on a word the comment❑4. A comment window explain what KAI think is potentially wrong, and the
rule.
4.
How do I use KAI in edit mode? (2 of 3)
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❑5. You can remove a single comment or all commentso Icon Remove comment deletes the current commento Icon Remove all comments deletes all comments
❑6. It is possible to save and keep the sentences for now.❑7. Correct the error and try again using the KAI-icon ( )
5.
How do I use KAI in edit mode? (3 of 3)
6.
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How do I use the KAI-report? (1 of 2)
❑1. Go to the Contents page.
❑2. Click to selects the paragraphs to be analysed by KAI.
❑3. Click on More and ”Export to KAI pdf”
2.
3.
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❑4. Read the feedback from KAI. o The report starts
with a summary followed by feedback on each requirement paragraph.
4.
How do I use the KAI-report? (2 of 2)
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Current implementation based on the most important and basic rules in INCOSE guide
❑ Vague adjectives, ambiguous terms and expressionsWords like ”expensive”, ”fine”, ”safe”, ”dangerous”, etc.❑ Passive voice
▪ Lack subjects. Your meaning does not say "who does what"❑ Combinations
▪ Words that often tie together several paragraphs like "and", "additionally", "as well as", "/", "partly", etc.
❑ Exceptions and examples▪ Words that often tie together several paragraphs such as
"except", "exception", "eg", "about function", etc.❑ Number of verbs of the type SHALL
▪ Prefer one SHALL, WILL or SHOULD ❑ Long text
▪ Long requirements are no better than short ones, rather the opposite.
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KAISwedish
KAIEnglish
Kommers Centralservice
Procure-ment portal
KAI is currently implemented as a centralised service
Supplier portal
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Next step of KAI
❑Improvements to be decided based on the outcome of the pilot production test.
❑Foresee request for assisting in checking e.g. completeness. This may require development of libraries specifically for type of product, service or works.
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Summary
❑ Procurement systems are becoming increasingly advanced following other technological improvements. The primary focus is until now primarily to manage the process.
❑ Procurement systems keep track of the process, facilitate to follow rules and procedures.
❑ Artificial intelligence is normal technical evolution that help us improve efficiency and bridge resource shortages.
❑ NLP can be used for analysing the quality of the contract specification.
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[email protected]+46-70 - 696 07 40
Sources: World economic forum, Angus Maddison, Tradix, European comission, Science, Ny Teknik, Standford University,.
Images with license from iStock and roalty freefrom NASA.gov, Econews, Sweden.se, Railway technology UK och Norrbotniabanan.se
Simulation Kommers KAI 2030: Ragnar Lindholm, Primona.
Music: Bensound www.bensound.com
Sources: World economic forum, Angus Maddison, Tradix, European comission, Science, Ny Teknik, Standford University,.
Images with license from iStock and roalty freefrom NASA.gov, Econews, Sweden.se, Railway technology UK och Norrbotniabanan.se
Simulation Kommers KAI 2030: Ragnar Lindholm, Primona.
Music: Bensound www.bensound.com
[email protected]+46-72 - 232 24 63
Kommers Artificial Intelligence
help you when writing
specifications
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