There's a lot of detailed explanation in this article, and it's not always as clear as it could be (especially as it mixes semantic and learning analytics-based approaches) but it's definitely on the right path, no matter how well this specific application performs. The idea is to analyze what we mean by different competencies, and then perform text-based analytics on students' work to find instances of the use of those competencies in order to assess their competency levels. The authors assert "This experimental study using the SoLearn system has indicated that this approach is efficient in modelling and evaluating students' competencies." Of course, it needs to be more than just efficient; it needs to be accurate.
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