Data-Driven Decision-Making in the Public Procurement System: The Case of Norway

Abstract

The thesis explores into Data-Driven Decision Making (DDDM) in public procurement in Norway. Public procurement is crucial for the efficient use of collective resources, to foster competition in the supplier market, and to support social objectives such as innovation, climate/environment, and improved working conditions. The study examines mechanisms influencing the implementation of DDDM and its effects on the efficiency of the procurement system.

The research identifies a lack of literature and knowledge on DDDM and feedback mechanisms in public procurement. The findings reveal that a significant portion of Norwegian public procurement units do not analyse consumption in their operations. These results suggest that a lack of analytical skills and organisational factors such as the centralisation of the procurement function affect the implementation of DDDM.

Furthermore, the results show low implementation of DDDM at both policy and operational levels within the public procurement system, highlighting how the absence of uniform data structures and standard measurement methods impacts feedback. This lack of structured feedback reduces information flow across the system, which in turn affects the efficiency of the procurement system.

The research proposes a broad framework to enhance DDDM in public procurement. This framework is designed to facilitate better integration of data and feedback mechanisms, thereby improving collaboration among various stakeholders. By encouraging digital motivation and investment in BI systems, the framework offers suggestions on how public organisations can become more data-driven, reduce inefficiencies, and contribute to improved efficiency in public enterprises.

The findings in this thesis explain the current state of DDDM implementation and provide insights for leaders and practitioners to promote a data-driven practice in public procurement. This, in turn, can contribute to more informed decision-making, which can benefit us all.