2014 Global SRM Research Report - Customer of choice

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT 

BUSINESS DRIVERS & VALUE 61

 PUBLIC SECTOR The public sector’s overriding priorities are cost and risk with 94% and 83% respectively of organisations reporting them as important / very important to achieving their objectives. Only 78% reported improvement in service levels and improved end customer experience as being important business drivers for SRM. The public sector has the lowest proportion of respondents reporting benefits with cost reduction, cost avoidance and end customer experience being the only business drivers where more than 50% of respondents are reporting benefits. Customer of choice – Customer of choice benefits are not ranked highly by the public sector. Around 50% believe that more supplier innovation, access to the best supplier people or joint service development are important reasons for investing in SRM. Benefits reported are also at a very low level, with just 6% engaging in joint service development as a result of their SRM programme.

Figure 1.23. Business drivers versus benefits reported (as % of respondents) – public sector

○ BUSINESS DRIVERS

○ BENEFITS REPORTED

0% 20% 40% 60% 80% 100%

© 2014 State of Flux

22% of public sector organisations are included in our leader, fast follower and follower groups.

 HEALTHCARE

Figure 1.24. Business drivers versus benefits reported (as % of respondents) – healthcare

Healthcare’s focus is on cost and risk. 83% are putting cost at the top of the list as the most important business drivers, closely followed by risk. Service level improvements are also considered important. Healthcare is unique in our study in that the proportion of companies reporting cost reduction as a benefit exactly matches the proportion identifying it as a business driver. Other business drivers don’t do quite so well with just over half of respondents reporting risk reduction and service level improvement. Customer of choic e – Customer of choice benefits are recognised by the healthcare sector as important business drivers. Around six in ten identify supplier innovation, access and retention of the best supplier people and joint product and service delivery as important. 31% of healthcare sector responding organisations are included in our leader, fast follower and follower groups.

○ BUSINESS DRIVERS

○ BENEFITS REPORTED

0% 20% 40% 60% 80% 100%

© 2014 State of Flux

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