ADVANCING INNOVATIVE PROCUREMENT IN UTILITIES
04 November 2003 - European Institute for Research and Strategic Studies in Telecommunications GmbH (EURESCOM)

In mid-October, the EU project INNO-UTILIITIES was launched at a kick-off meeting in Heidelberg, Germany. The main goal of the project is to develop innovative procurement processes in utilities focusing on telecommunications as a key enabler and exemplary utility.

Utilities like telecommunications, electricity, water, and gas are taken for granted in 21st-century Europe. However, their steady and uninterrupted availability at a low price is no matter of course, but depends on permanent innovation. Especially in the area of utility procurement processes, there is a large potential for innovation and higher efficiency.

INNO-UTILITIES will analyse both technical and non-technical aspects of procurement. Particular focus is placed on the interdependencies between telecom networks and e-procurement processes in utilities. 'Our goal is to drive innovation in procurement and to make procurement a driving force for innovation in utilities,' explains project co-ordinator Anastasius Gavras from Eurescom. The project aims at making procurement in utilities more cost-effective and more secure. 'The trend towards e-procurement makes telecommunications a key enabler for all utilities,' says Mr Gavras. E-procurement offers SMEs a promising area for developing profitable innovative solutions for utilities providers.

As one of the first deregulated sectors in the European Union, telecommunications is also interesting as a model for other utilities. The project will identify procurement models from the telecoms industry that could be adopted by other utilities.

Among the expected results of INNO-UTILITIES will be policy recommendations for innovation-friendly procurement and the prototype of a secure e-procurement system, which will be first tested by the members of ETNO, the European Telecommunication Network Operators Association.

The project has a duration of two years and is funded by the European Union under Framework Programme 5 in the area 'Innovation and SMEs'. Project partners are Eurescom as co-ordinator, the Greek SMEs Virtual Trip and Erevnon, the Universities of Patras (Greece) and Lund (Sweden), and Portugal Telecom.

http://www.eurescom.de

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