Tendium launches in the midst of the coronavirus crisis
About two years ago, the research company Tendium started with the vision of streamlining the public procurement process with the help of AI. By better matching what buyers want and what suppliers can offer, citizens get better service. In the midst of the burning corona crisis, it is time for Tendium to launch its AI-based web service for intelligent monitoring and qualification of business opportunities in the public sector.
Åsa Zetterberg, Director of the Association of IT & Telecom Companies and Hannes Dernehl, CEO of Tendium, discussed the corona crisis, why better procurement is a matter of democracy and what is important for research and innovation companies right now.
Åsa: How is it with you right now?
Hannes: It's difficult to navigate, because we don't know how long this crisis will last. We are all facing a strange future and as a research company we are particularly worried. Many millions have been invested in research in recent years, but now that the capital market is severely affected, there is a risk that the long-term perspective will be lost, something that greatly affects innovation and research companies.
Åsa: How has your business been affected by the crisis?
Hannes: I think we have been affected differently than others. We are working on streamlining public procurement. Now that the market is going down in general, many people are looking to the public market. We saw a temporary downturn with fewer tenders, but now it is turning around again. We are launching our service this week, so for all of us working here, the situation is twofold. We are taking a risk in the midst of the worst crisis, while our service can improve and facilitate public services. Something that is particularly important right now.
Asa: Have you used any of the action programs?
Hannes: Spontaneously, the crisis packages that the government has developed don't really feel adapted to companies like ours. We find it difficult to see how we can qualify, but we are analyzing the programs to see what they mean. They feel more adapted to industry than to research and innovation companies. So, apart from the reduction in social security contributions, which is automatic, we have not yet used any other measure.
Asa: How do you keep the right focus?
Hannes: We are around 25 people right now, full and part-time, who have all been working in a focused way since the launch. We are a good team with a warm culture. Of course we follow the guidelines, but we try to have fun even though most of us work remotely. So our Friday meetings and AW are currently digital, which still works well. We are also very transparent with all employees, which is especially important during a crisis.
Answer: How does your service work?
Hannes: We collect historical procurement data and use machine learning, text analytics and advanced graph databases to, among other things, analyze and visualize competition in public procurement. This gives us data that no one else has. We can accurately describe what the market looks like, what is required and what requirements suppliers need to meet in order to participate in individual tenders. We can also produce help guides to support both smaller companies that are not traditionally involved in public procurement, and larger companies in highly competitive sectors, for example. With the help of AI, we want to streamline the entire procurement process, for both buyers and suppliers.
Answer: Why is it important?
Hannes: We see it as a matter of democracy. If the focus of procurement is only the lowest price, many good companies are screened out who cannot or do not want to compete with only the lowest price. A well-functioning public market requires that the most competent and qualified companies with a focus on quality, sustainability, innovation and social responsibility are also included in the procurement process. In this way, it will be better for society as a whole.
Åsa: What do you need as a research company right now?
Hannes: What we are seeing in connection with the corona crisis is that investments in innovation can be particularly vulnerable. Export successes such as Spotify, for example, were founded on innovation. If we don't invest in innovation going forward, we won't get a new Spotify. If we don't get a new Spotify, we won't get any new jobs. And that is very important right now!
You can read more about Tendium on their website here.