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Prozorro: State Procurement Platform Launched in Ukraine

Due to Agile approach adoption in software development the Prozorro, an innovative public procurement platform, was developed for the Ukrainian Government, resulting in a UAH 100 million turnover in the first year since the system was launched, saving up to 44% on purchases.

On February 09, Agile.Live organized a webinar with Aleksey Krasnoshchekov, the Product Manager of Prozorro. He told the story of its creation and explained the further developments of Prozorro Market for pre-threshold public procurement operations.

After the big change in legislation, entailing the reduction of the “sub-threshold” limits from $7k to $1.8k, the state customers needed an easy way to purchase the same-category goods promptly and at minimal effort.

The webinar participants studied several cases and learned how to submit a price quotation. They were also able to revise and shape the Agile principles that improved their backlog task management. In particular, they learned to identify the missing tasks in the backlog, decompose them, create MVP (minimum viable product), and change development priorities.

Now Prozorro Market, using the principles of Agile, plans to reach a turnover of UAH 0.5 billion in a year, with 6-7 thousand suppliers serving 5-6 thousand customers on the marketplace. To do this, the team plans to incorporate a product coverage import, massive prices update, and feedback processing. In the long run, it aims to transfer all the pre-threshold purchases of the state customers to the Prozorro Market and enable standardized services purchase.

Based on personal experience with the Prozorro, Alexey Krasnoshchekov gives the following advice on an Agile transition:

  • Start by understanding the problem you want to solve and how much value the customer will get. Decompose the problem and identify the customer’s major “pain.”
  • Come up with a set of hypotheses and metrics that would help you validate your assumptions.
  • Don’t try to deliver a finished product right away, start with an MVP.
  • Monitor the result.
  • Repeat everything from the beginning.

See the full webinar video here.

Alexey Krasnoshchekov’s presentation.

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