RELATIONSHIP DEVELOPMENT & CULTURE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
178
Figure 6.5. Is guidance or direction given to suppliers on areas to focus innovation effort? – All respondents
Figure 6.6. Is guidance or direction given to suppliers on areas to focus innovation effort? – Leaders / fast followers / followers
0% 10% 20% 30% 40% 50% 60%
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
0% 10% 20% 30% 40% 50%
ALWAYS
DON'T KNOW NEVER OCCASIONALLY OFTEN
ALWAYS
DON'T KNOW NEVER OCCASIONALLY OFTEN
© 2014 State of Flux
© 2014 State of Flux
Figure 6.7. Is guidance or direction given to suppliers on areas to focus innovation effort? – Industry sectors
○ ALWAYS ○ OFTEN ○ OCCASIONALLY ○ NEVER ○ DON’T KNOW
0% 10% 20% 30% 40% 50% 60% 70% 80%
FINANCIAL SERVICES
MANUFACT URING
OIL AND GAS
FOOD AND BEVERAGES
IT / HIGH TECH
UTILITIES
PUBLIC SECTOR
HEALTH CARE
PROFESSIONAL SERVICES
AUTO MOTIVE
© 2014 State of Flux
GUIDED INNOVATION
The overwhelming majority of companies at least give some guidance or direction to suppliers on innovation. Referring to figure 6.6 . we can see that leaders, fast followers and followers opted more frequently for the guided approach. An industry sector perspective on guided innovation reveals that the automotive sector has the highest proportion of companies adopting the approach, followed by food and beverage ( figure 6.7 ). The sector least likely to be giving guidance is the public sector. This would appear to correspond with the public sector reporting itself as poor at harnessing supplier innovation.
Organisations that are actively seeking more supplier generated innovation, often debate the best way to go about it. Do we throw the doors open and risk being swamped by hundreds of ideas that will be a mix of blatant sales pitches, top of head ideas that have not been tested, well intentioned but not relevant ideas, etc. But we know that buried in there somewhere could be the game changing idea.
or
Do we try and direct suppliers towards innovation that will address some of our major business challenges, thereby saving time and effort on both sides. However, we risk missing the big ‘off the radar’ idea that could change the business permanently. Our question to organisations was to what degree are they adopting the second approach and giving suppliers guidance on innovation ( figure 6.5 ).
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