Sell SIde perspective
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
94
Figure I. The buy side’s ability to attract, evaluate and implement innovation – sell side / buy side
Figure H. The degree to which being part of an SRM programme helps sell side companies present innovations to the buy side – sell side
2% HELPED GREATLY
50%
○ SELL SIDE ○ BUY SIDE
11% DON'T KNOW
40%
18% HELPED QUITE A LOT
30%
14% NOT HELPED
20%
10%
55% HELPED A LITTLE
0%
VERY GOOD
GOOD
POOR
DON'T KNOW VERY POOR
© 2014 State of Flux
© 2014 State of Flux
Figure J. Perception of barriers tomore effectivemanagement of innovation – buy side / sell side
○ SELL SIDE ○ BUY SIDE
LACK OF TIME / RESOURCES
NO FORMAL PROCESS TO MANAGE EXTERNAL INNOVATION
MORE PRESSING PRIORITIES
LACK OF CLEAR INTERNAL OWNERSHIP
COMPLEXITY OF THEIR ORGANISATION
INTERNAL RESISTANCE TO CONSIDER EXTERNAL IDEAS
NO STRATEGY REGARDING EXTERNAL INNOVATION
THEY ARE NOT ACTIVELY SEEKING SUPPLIER INNOVATION
NO BARRIERS
OTHER (PLEASE SPECIFY)
0%
10%
20%
30%
40%
50%
© 2014 State of Flux
INNOVATION
account the fact that for some sell side companies, presenting innovation to customers is a sales channel and as a result they would always want more opportunities. However, it is clear there are opportunities for improvement. Both the buy and sell side share the same view of the barriers to more effective management of supplier innovation ( figure J ). The only area where the sell side opinion differs is in external ideas; they report a higher level of resistance or lack of interest.
Buy side feedback does suggest that the delivery of supplier innovation is making some progress, albeit slow. Last year, we asked sell side companies if SRM programmes were helping them to position innovation with the buy side. The results were more encouraging last year, with 45% suggesting SRM was helping – unfortunately this figure has fallen back this year to 20% ( figure H ). The sell side assessment of how well the buy side are able to manage innovation is broadly consistent with how the buy side view themselves ( figure I ). We have to take into
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