Optimisation provided by artificial intelligence
Utilising digital methods leads to a qualitative leap in negotiations, allowing them to be conducted more efficiently and profitably. Using data science in negotiations is about understanding the specific and relevant issue of the negotiator and developing a data-based solution for it. To detect dormant optimisation potential, we analyse the relevant company data using cutting-edge advances in the fields of data science and mathematics. This enables us to create transparency, trust and a better basis for decision-making.
Welcoming
complexity as an
opportunity
Instead of allocating resources to reducing complexity, complexity itself should be treated as an opportunity to leverage new potential. Our data science team will find tailored solutions for even your most complex problems, such as allocation optimisation, combinatorial auctions or AI-based forecasting.
How to get a better outcome to your negotiations by
using mathematics and data science.
For what types of negotiations and in what phases of negotiations can digital solutions be used?
Regardless of whether it is competitive tenders, bilateral negotiations with monopolists, or even sales, digital solutions lead to better and faster results in many negotiation steps. In general, they are an important tool in preparing for negotiations – for analysing historical data and the market situation, and for evaluating options in monetary terms to enable comparisons. We have also developed digital solutions for competitive tenders and sales for the design of the tender and awarding of contracts, such as our Smart Allocations tool.
How does transparency in negotiations facilitate more efficient processes and better results?
The transparency of the data is a key prerequisite for a clear path of negotiation, for internal orientation, for optimised decision-making and, last but not least, for its acceptance. This applies to:
- Historical data: Knowledge of data from past negotiations and on market development strengthens one’s position in the negotiation process.
- Recent data: AI-supported optimisation of tender award packages with our Smart Allocations tool enables the ideal handling and management of complex awarding procedures. Savings are frequently possible even prior to the start of negotiations.
- Data relevant for the future: Here it is important to determine for which of the currently missing data points the systematic collection and analysis of data will offer the greatest added value.
When do digital solutions lead to a better result in negotiations?
Digital solutions always help when the problem becomes too complex for humans alone, such as with combinatorial auctions. Optimisation potential arises wherever problems have been simplified in the past to make them easier to handle. An example of this is imprecise demand estimation, because it is very difficult to trace the orders more precisely. Or because the allocation of contract packages to several suppliers was more a matter of rough estimation instead of attempting to find the mathematical optimum for the allocation decision.
What is the workflow of a typical data-driven negotiation project?
There are basically two ways to initiate such a process:
1. A pilot project
We identify one or more upcoming negotiations as pilot projects, analyse them and identify potentials.
We assist throughout the negotiation and develop solutions for the optimisation potentials identified.
These solutions are evaluated with the stakeholders of the company.
We determine the training needed to implement the solutions and train the respective individuals.
2. Determination of the need for action
We conduct a survey with everyone at the company who is involved in negotiations with the aim of determining the status quo with regard to the areas of PEOPLE-DATA-STRUCTURE.
The next step is to identify the potential for optimisation and to propose recommendations for action and possible solutions.
PRODUCTS
In simple settings, the ideal distribution of orders is not a problem. But what about complex allocations, supplier capacity constraints, multi sourcing or bundle allocation? How can you reduce existing complexity – will it come at the expense of possible savings? You are better off with our Smart Allocations tool, which unlocks all potential savings.
Online auctions present special opportunities and challenges. Access to the tendering process must be straightforward for the participants and the rules must be easily understood. The tendering platform must also be capable of depicting customised tendering mechanisms – with Smart Allocations integrated as needed. Our new in-house eAuction platform makes all of this possible.
One key obstacle in negotiations is when the other side is better informed about the costs and expected benefits of what is being negotiated. Here the company itself can often leverage data from past negotiations, sales or market prices to digitally support its negotiation and decision making.