project of Association of Industrial Automation of Ukraine

1. DigitalTwins.Info
DIGITAL TWINS FOR PROCUREMENT
DIGITAL TWINS BASED ON OPEN STANDARDS

2. http://DigitalTwins.Info project summary
Project begin date: 15.01.2017
Project team: 3 members
Website: http://digitaltwins.info
For state companies
•Quality of procurement item benefits
•Anti-fraud benefits
•Process optimization benefits
For corporate end users
•ROI impact
•TCO impact
•Riscs mitigation
For industrial automation
system integrators & vendors
•Transparent competition rules
•Additional sales channel
•Products push channel
OUR Customers benefits
OUR milestones current and next
To involve the first clients Aug 17
To format and legalize ruleset Sep 17
To finalize dashboard v 1.0 Aug 17
To push clients for better description quality Oct 17
To promote legalized ruleset Nov 17
To extend analytics capabilities Nov 17

3. Procurement of "simple" products and "raw" materials on digital market at
digital age - "simplification" is an umbrella for "manipulation" and
"incompetence"
Informal way of describing procurement item can be the source of manipulation and unfair competition
(disqualifying proposals and suppliers as an major influence instrument). In the same time ignoring general
technical policies can significantly influence on quality, TCO and even on successful and legal operations of procured
equipment.
According to AIAEU data near 50%
of industrial automation tenders at
Prozorro system are going with
violation of technical policies.
Ignoring quality and long term
impacts during tenders, and
focusing on the price criteria is
pushing out most of the big market
players from procedure. Therefore
tenders are usually arranged
between small noname companies.

4. Digitalizing technical details of request and proposal gives formal, rule
based comparison
Tender item
description
(subject of
procurement)
Text
description
collected and
preprocessed
Linguistic
model
created
Engineering
model
created
KPIs
calculated
and published

5. Engineering solutions and systems for procurement – first time on market
1. An automatic transform from informal natural language description of proposal into fully digital
AutomationML system model, with lifecycle operations description added on B2MML language. This
automatic procedure from one side simplify the process, form other side make it formalistic - to avoid any
misunderstanding claims. It is based on natural language processing technologies, which utilize data
extraction and mining algorithms.
2. An automatic rules check on basis of digitalized models. It utilizes pattern recognition algorithms. Benefits
are near the same - simplification and better quality because of automation and avoiding of any
manipulations with technical expertise thanks to formalized rules.
Natural language
system description
Formal engineering
language
description
Expert decision
support system
with CAD/CAE
features1 2

6. Data is “the blood” of “Prozorro” system
Standardization is the way for
interoperability
Openness is the way for
Data Quality
Data
interchange
layer
OCDS
IEC 62424
IEC 62714
ISO 13584-32

7. Digital Twins moves Prozorro’s culture to 4.0
Done Jul-Sep 17
Marketing workflow
•We involve first client – Ukrainian Gas Mining company. Now
representatives of UGV are members of a project team and
participate in legalization workflow as an experts.
Legalization workflow
• We prepare content and initial draft of the ruleset and arrange a
discussion of it. We have negotiations with Ministry of Economical
Development of Ukraine about future implementation of this
ruleset standard.
Technical workflow
•We implement data load and lexical modeling stage. On this basis
we saw data quality issue. Less then 30% of data are available for
tusing in our model. We involved ProZorro and Smart Tender teams
(another commercial e-procurement developer) into discussion
how to cope with this issue.
To do Sep-Nov 17
Marketing workflow
•To find a leverages for show impact at UGV. At least reduce empty
description count.
•To involve other big companies into workgroup
Legalization workflow
•To find a lever for influencing data quality issue
•To continue developing ruleset
Technical workflow
•To improve analytical features of the dashboard
•To implement engineering modeling stage

8. Four major impacts of the project
• Declarative, promotional, “public discussion” impact pushing players to respect quality standards
• “Knowledge” impact – nobody can say “I wasn’t informed what I must do”
• “Risks” impact – nobody want to be a “National negative hero”
• “Status” impact – “public KPI dashboard” for every state company automation head and departments. “Best
DTO” nomination. From other side – same story for contractors – “Most innovative company” “Most effective
company”.
• Basic KPI impact
• “Direct model” cheating influence
• “Abstract description” cheating influence
• “Wrong CPV code” issue elimination
• Disqualification crosscheck.
• “Details hiding” elimination.
• Advanced KPI impact
• ROI impact
• TCO impact
• “Innovation level” and “complex thinking” impact
• Mission and long-term impact
• Increasing of technology level for state companies – we build “Industry 4.0 in Ukraine”
• Changing the rules at Ukrainian industrial automation market – from “hungry games” to “collaborative sector
growth”

9. How to evaluate the project impact –
depends on impact way set
Last 10 years we unite community, which is responsible for technical policies at
corporate sector. "Technical policy" is an instrument, which allow big
companies to drive their investments effectiveness and TCO goals.
For “public” &
“mission” impact
For “basic” impact
set
For “advanced”
impact
•By market players feedback
•By general indexes – like GDP portion on
Hi-tech industries, part of HI Tech cashflow
in total Ukrainian export, etc. …
•Analyzing dynamics of directly measured
KPIs at the project dashboard
•ROI deltas
•TCO deltas

10. Nothing new – just new combination of existing
technologies in different context
GATE
eCl@ss
AutomationML
Digital
twins
Prozorro OCDS
api
Rules
check
engine
KPI ML
ISO 22400
Based on combination of existing
standards and technologies –
stable and sustainable solution
Automation &
instrumentation
market
Engineering
market
Other
dictionaries –
other markets
With clear perspective on
scaling to other markets.
With clear business effect – as
driver to scale into corporate
sector.

11. Current “quality tendering” ruleset covers 4 most discussed topics around
procurement issues in the Ukrainian engineering communitySubjectrules
•Items selection
criteria (Primary
parameters set)
•Sustainability and
reliability ruleset
•TCO & ROI
requirements
•Services and
support rules
Contractorsrules
•Reference list
criteria
•Commercial
capabilities criteria
•Historical checks and
rules
Contextrules
•Integration criteria
•Industry specific
ruleset
Strategicrules
•Vendor selection
criteria
•Strategic partnership
conditions
•Innovation
implementation
rules

12. Additional input: Lets study the subcase:
Proposal A has BAD quality.
Consequences:
For customer – he will not achieve the goals –
and spend money for nothing.
For supplier B – he will get nothing, but save
useless Know-How
For supplier A – he will have an failed project
in portfolio. Formally – done – but feedback
will be strictly negative.
«Hidden technical details case”
customer
tender
Bid A
Bid B
Supplier A
Supplier B
10 M$
5 M$
9 M$
WINNER!
I will not publish my
technical details – to
avoid additional
questions. No details
– no reasons for
disqualification.
I will not publish my
technical details –
“Know How” will be
stolen
I will not ask for publishing
technical details:
1. This will reduce tender
participants
2. Comparison will be
more complicated
3. This is useless – price
is only criteria
Everybody lost. Greed begets poverty.
Keep the data open!