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Representative POMs are described for Supplier Innovation Management at each level of maturity.

1Initial

• Practice

  Best endeavours of available personnel.

  Outcome

  There is no path for improving IT suppliers, and there are the possible additional costs of replacing key suppliers who don't have long-term capability.

  Metric

  Key IT supplier churn rate

2Basic

• Practice

  Assess IT supplier innovation collaboration opportunities for a limited number of key suppliers, particularly in response to any major incidents impacting on the rest of the business.

  Outcome

  There is improved IT supplier performance and quality.

  Metric

  Historical analysis: IT supplier related incidents impacting on business, # of remedial courses required

3Intermediate

• Practice

  Look for supplier innovation, where appropriate, with preferred suppliers, seeking opportunities for mutually beneficial interactions, such as joint product development, focused on improving cost effectiveness and risk reduction.

  Outcome

  The innovative capabilities of suppliers can be harnessed to create product and service offerings that are ideally suited to the business.

  Metric

  # of active project collaborations with suppliers Business value delivered to the organization through supplier project collaborations.

4Advanced

• Practice

  Implement a long-term development program with key IT suppliers sharing the risks associated with adapting processes and products/services and co-developing capabilities related to talent and innovation.

  Outcomes

  • There is improved alignment between the organization and IT suppliers to eliminate gaps between the organization roadmap and IT supplier capability.
  • This reduces risk by enabling longer term relations with suppliers.

  Metric

  % of key suppliers with long-term development programmeHistorical analysis: Tier 1 IT supplier churn rate

5Optimized

• Practices

  • Explore innovation opportunities relating to new and disruptive technologies with key suppliers.
  • Make significant direct investments in suppliers (via capital or time) in joint initiatives with agreement on risk sharing.

  Outcomes

  • There are exceptionally strong links between the organization and IT suppliers and opportunities for joint value created.
  • The expertise, good practices, and innovation capabilities of suppliers can be leveraged, enabling organizational agility and innovation.

  Metric

  # of suppliers that identify the organization as a priority customer# of joint innovation projects undertaken with key suppliersHistorical analysis: $ Investments in IT supplier initiatives