Getting started with PPI

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Innovative solutions can generate substantial long-term gains. In the short term, however, PPI does involve taking risks. It is important for your organisation to be aware of this, and to be able to manage the risks effectively. Be aware, in advance, that invitations to tender for innovative solutions place a great demand on the professionalism of your procurement process.

You can use your procurement policy to encourage the development of innovative solutions in the market. The difference between a regular procurement process and a PPI procedure lies mainly in the formulation of the requirement and the way you interact with the market. The guiding principles for PPI are as follows:

Begin early
Get to know the market
Actively assess and manage the risks involved
Competition is not simply a formality
Use flexible procedures
Aim for broader performance-based rather than rigid technical specifications
Make information freely available to all bidders
Determine a strategy for managing intellectual property
The terms of the contract are determinative

Government Innovation tool chest

The innovation tool chest provides practical tools that can be used to conduct a targeted search for an innovative solution or to consciously provide scope for companies to deliver innovative solutions. Besides tools, the innovation tool chest offers sample procedures for a PPIprocess, and case studies showing how these tools are used in practice.