STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
BUSINESS DRIVERS & VALUE 49
Figure 1.5. Business drivers versus benefits reported (as % of respondents) – leaders
○ BUSINESS DRIVERS ○ BENEFITS REPORTED
0% 20% 40% 60% 80% 100%
Figure 1.6. Business drivers versus benefits reported (as % of respondents) – fast followers
0% 20% 40% 60% 80% 100%
Figure 1.7. Business drivers versus benefits reported (as % of respondents) – followers
0% 20% 40% 60% 80% 100%
© 2014 State of Flux
THE BUSINESS DRIVER AND VALUE GAP
business drivers and when they do there is more emphasis on operations and performance. Leaders, and to some extent fast followers, are far more likely to be identifying customer of choice related business drivers. Figure 1.5 shows how SRM is delivering benefits against business drivers at a ratio of about 50%. That is, half the companies who have identified their important business drivers are seeing actual benefits in the corresponding area. For leaders, this figure is just over 60%. However, the gap is not uniform. Leaders are much closer to parity between business drivers and value for areas such as cost reduction, cost avoidance, risk reduction and supplier innovation.
Value is only value when it is aligned to the strategy and objectives of the business, in other words the key business drivers. Therefore, a more meaningful analysis to determine if SRM is delivering what the business needs is to compare what the most important business drivers are and the degree to which SRM is delivering value in these areas. The following analysis looks first at leaders, fast followers and followers. It then provides an industry sector perspective. The business drivers considered important by leaders and fast followers are broadly similar. Fewer followers are able to identify their key
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