Public clients – clinics or care facilities – often face the problem in their procurement projects that they do not know the market of potential bidders and their service portfolio exactly. There are recognised needs that are not (yet) offered on the market. In these cases, it is not only permissible but also advisable to conduct a market survey or analysis before initiating a procurement procedure.

In this article, you will learn 5 steps to carry out a well-founded market analysis with the aim of using the results of the analysis for a subsequent “open market consultation” (OMC).

STEP 1. Identification of needs

The starting point of a well-founded market analysis is the identification of an “unmet need” in a specific subject area. This identified need is then broken down into one or more specific sample or use cases. There is already a Procure4Health Insight on the issue of needs identification – the Insight #3: Challenge identification: How to identify innovation needs? Read and download it in https://community.procure4 health.eu/p/p4h-insights

STEP 2. Breaking down into use cases

It is important to break down the needs defined in the previous process into sample or use cases that are as concrete as possible. The use cases determined in this way must then be verified by the stakeholders/procurers. Only when this has been done, the next step – the actual market exploration or analysis – can take place.

STEP 3. Market analysis

The market analysis consists of several coordinated sub-steps:

a) Desk research
Carrying out comprehensive research using existing scientific databases (e.g. ebscohost.com, sciencedirect.com, etc.), specialised literature and online resources. The aim is to collect and structure existing knowledge and information on the product/process for which the procurement requirement exists.

b) Discussions with experts
Direct dialogue with experts from a specific subject area also makes it possible to gain insights into the state of the art in research and technology and to identify current market developments. These discussions help to close potential gaps in existing knowledge.

c) Attendance at trade fairs, symposia and themed events
In addition to the discussions with experts described above, participation in trade fairs offers the opportunity to gain an overview of current trends, innovations and products on the market. Initial contacts with potential suppliers can also be made here.

d) Analysing the products and processes available on the market
A detailed analysis of what is available on the market, be it products, processes, services or business models, is crucial. This enables the identification of existing solutions and potential gaps in the market.

e) Analysing patents and standards – State-Of-the-Art (SOTA)
A comprehensive prior art search is carried out by analysing the current patent situation and searching for existing standards – both national and international – in the relevant subject area. This helps to understand the technological development and the legal framework.

STEP 4. Summarising the results

The final step before conducting an Open Market Consultation (OMC) is to review and collate the researched facts and results from the various parts of the market analysis. This enables the creation of a comprehensive picture of existing offers, innovative solutions, challenges and potential gaps in the market. The OMC can then be prepared with the help of a “market report”.

STEP 5. Open Market Consultation (OMC)

The summarised results serve as the starting point and basis for the Open Market Consultation. This phase enables a wide range of stakeholders to contribute their perspectives, ideas and concerns. The OMC is an important step to further validate the market and confirm the need for innovative solutions.

Closing remarks

The guidance for a well-founded market analysis for a successful Open Market Consultation is a decisive contribution to the development of sustainable solutions. A systematic approach, starting with the identification of needs through to open consultation, creates a solid foundation for the development of innovative products and services. Insights No.5 thus provides valuable guidance for all stakeholders who want to actively participate in shaping sustainable markets..

If you liked this article about Innovation Tender preparation and want to get examples from real use cases, don’t miss the Procure4Health Insight #5. Guide to a well-founded market analysis for a successful OMC that you will find in the Procure4Health Community platform.

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An associated webinar is available in YouTube!