Supplier Innovation Management
Work with suppliers to identify opportunities for co-innovation (for example, adapting processes and products/services, or co-investing in research and development).
Improvement Planning
Practices-Outcomes-Metrics (POM)
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