PROCUREMENT INNOVATION MODEL: Smart City & Initiatives-Procurement Innovation Model Services as the part of SDP’s Management Consulting & Government Advisory service offering for Public, Private and Social sector clients.
Product/ Service Delivery Duration:
Min 2-3 months depending upon Size of offering required and Scope of Work.
Ideal Client Type:
Public, Private and Social sector clients: International Agencies, National Governments-Ministries; Local Governments-Municipalities, Development Authorities, Smart City SPVs/ offices, Private Companies.
What is in the package of Product/Services (Deliverables)?
- Smart City & Initiatives-Procurement Innovation Model Report.
- Support services for Smart Cities & Initiatives-Procurement Innovation Model framework, activation & transformation.
Product Offering/SoW Overview:
Identification of Challenges or Needs.
Translation of the Identified Challenges into Functional Requirements.
Assessment of Regional Tenders types, engagement models and Awarding of Contracts
The meaning and limitations of public procurement for innovation: a supplier’s experience.
Building capability for public procurement of innovation.
Risk management in public procurement of innovation: a conceptualization.
Forward commitment procurement and its effect on perceived risks in Smart City & Initiatives.
Public procurement for innovation elements in the Smart City & Initiatives.
Provision of knowledge inputs to the innovation process
Provision of R&D results, and thus creation of new knowledge, primarily in engineering, medicine and natural sciences.
Competence building, for example, through individual learning (educating and training the labour force for innovation and R&D activities) and organizational learning. This includes formal learning as well as informal learning.
Formation of new product markets.
Articulation of new product quality requirements emanating from the demand side. III. Provision of constituents
Creating and changing organizations needed for developing new fields of innovation.
Networking through markets and other mechanisms, including interactive learning among different organizations (potentially) involved in the innovation processes. This implies integrating new knowledge elements developed in different spheres of the SI and coming from outside with elements already available in the innovating firms.
Creating and changing institutions – for example, patent laws, tax laws, environment and safety regulations, R&D investment routines, cultural norms, and so on. – that influence innovating organizations and innovation processes by providing incentives for and removing obstacles to innovation.
Support services for innovating firms. Incubation activities such as providing access to facilities and administrative support for innovating efforts.
Financing of innovation processes and other activities that may facilitate commercialization of knowledge and its adoption.
Provision of consultancy services relevant for innovation processes, for example, technology transfer, commercial information, and legal advice.
Public demand: state buys for own use and/or to catalyze private market-General procurement, Strategic procurement, Cooperative and catalytic procurement.
Support for private demand Direct support for private demand.
Training and further education.
Regulation of demand or of the interface demander–producer Regulation of product performance and manufacturing.
Regulation of product information
Process and ‘usage’ norms
Support of innovation-friendly private regulation activities
Regulations to create a market
Systemic approaches Integrated demand measures
Integration of demand- and supply-side logic and measures.
- Bridging the chasm between the innovators and early adopters and the pragmatists to scale up early market technologies and make them mainstream.
- As government purchase is so large, this helps bring innovative solutions to the market and provide the necessary scale.
- Increased profits: either through reducing costs, finding new markets or increasing market share;
- Supplier management: improving communication with the supply base, identifying strategic suppliers vital to their supply chain and improving supplier performance to share subsequent savings;
- Controlling risks internally and externally-Internally improving the identification and management of risks leads to better control of risks and minimizes any unpleasant surprises.
- Externally create stronger relationships leading to better communication and a better awareness of potential issues/upcoming risks and opportunities.
- Understanding of market and suppliers, First tactical and analytics, Introduction of ERP systems.
- Effective internal comms and collaboration.
- Purchasing involved in strategic decision making.
- Data visibility aiding faster decision making.
- Value contribution of Purchasing aligned to business objectives.
- Rapid and accurate monitoring of spend data
- Supplier integration, cooperation and partnership.
Additional Free Offerings:
PROCUREMENT INNOVATION MODEL
The legal framework-For public procurers to know the best available solutions, they need to be able to engage in a transparent, open dialogue with suppliers. There is natural risk-aversion from public procurers to do so out of fear of allegations of corruption.
The cost barrier and the business case-When conversations with public procurers turn to the costs of sustainability and innovation, there is a lot of resistance to considering an item, solution or process that appears costlier than the business-as-usual alternative.
The public procurer skill set-The public procurers’ work need to be strengthened to fully utilize the potential of innovative, sustainable procurement: market engagement, the design and evaluation of performance-based tenders, and the monitoring of contracts on compliance with the promised performance.
Risks and regulations: the purchasing function can contribute by identifying innovative solutions to transform constraints linked to the control of risk and regulatory compliance into a competitive advantage for the business;
Operational excellence: the purchasing function can be a proactive source of creativity and collaboration with internal clients and suppliers to enhance existing processes and reduce costs through the identification and introduction of new materials, technologies and alternative solutions;
Differentiation: being involved in the company’s product and service roadmaps and tightening collaboration with internal clients and suppliers to become business partners.
Poor communication across functions
Low knowledge of markets and suppliers
Slow/ineffective decision making
Collaboration across the business