This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Transform procurement into an innovation powerhouse with insights from ex-McKinsey & Big 4 consultants. Explore strategies, processes, and culture for growth. Innovation-driven Procurement is a 26-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
Procurement is shifting from a traditional cost-cutting role towards a more strategic function, whereby it actively contributes to growth. With this shift, Innovation is beginning to play a more important role within Procurement. About 10% of mature Procurement organizations have already contributed significantly to their companies’ growth.
This framework focuses on how to transform Procurement into an Innovation-driven organization. In order for Procurement to truly embrace Innovation and support the Innovation Strategy, the Procurement Operating Model must be examined and adjusted accordingly.
We examine each of the 5 key dimensions in the Procurement function:
1. Strategy
2. Organization
3. Processes
4. People
5. Culture
Other topics discussed include Company DNA, Organizational Patterns, Agile Processes, the Supplier Selection Matrix, among other topics. This deck also includes a set of slide templates for you to use in your own business presentations.
This PPT provides a comprehensive guide on transforming procurement into an innovation powerhouse. It delves into five critical dimensions: Strategy, Organization, Processes, People, and Culture. Each dimension is meticulously examined to ensure procurement aligns with and supports the broader innovation strategy of the organization.
The framework outlines five key practices to foster innovation within procurement. These include setting outcome-oriented goals without constraints and organizing innovation tours to regions known for their advancements. The document also emphasizes the importance of forums where suppliers can propose ideas and commit to investments, ensuring a collaborative approach to innovation.
The role of procurement strategy is highlighted as a crucial lever for enhancing the procurement value proposition. By focusing on company DNA, the type of innovation, and the role of procurement, organizations can drive significant growth. This document also includes templates for organizational patterns, supplier selection matrices, and other tools to aid in the implementation of an innovation-driven procurement model.
This PPT slide outlines the critical role of Procurement Strategy in enhancing procurement's value proposition within organizations. A significant shift in the Procurement Operating Model is necessary, primarily driven by innovation. Three key components drive this strategy: Company DNA, Type of Innovation, and Role of Procurement. "Company DNA" refers to organizational characteristics influencing procurement approaches. The "Type of Innovation" distinguishes between disruptive and incremental innovations, guiding procurement strategies to adapt effectively. Disruptive innovations necessitate an agile procurement approach, while incremental innovations focus on optimizing existing processes. The "Role of Procurement" positions it as a strategic partner in driving innovation, operating effectively in a "push" mode when given clear objectives. This framework encourages organizations to rethink procurement strategies to better support their objectives and drive value.
This PPT slide outlines a framework for procurement strategy, focusing on 3 components: Company DNA, Role of Procurement, and Type of Innovation. Company DNA influences how organizations position open innovation as a resource or core strategy. The Role of Procurement emphasizes its shift from a transactional function to leading open innovation initiatives, integrating innovative processes and contract management. The Type of Innovation differentiates between disruptive and incremental innovations, guiding procurement alignment with organizational goals. While Company DNA serves as a foundational input, it is essential for defining procurement's role and vision within the broader innovation strategy.
This PPT slide outlines 3 organizational patterns for an innovation-driven procurement structure: Category Manager, Innovation Buyer, and Hybrid Approach. The Category Manager role focuses on market knowledge, cost modeling, and benchmarking, with responsibilities including developing mid-term action plans, managing supplier panels, and scouting for new suppliers. The Innovation Buyer is essential for integrating innovative supplier solutions, enhancing procurement efficiency and effectiveness. The Hybrid Approach combines the functions of both roles, balancing long-term innovation initiatives with short-term procurement needs. Each pattern offers unique advantages that should align with an organization’s strategic goals and market dynamics, optimizing procurement functions for greater impact.
This PPT slide outlines the critical need for talent in procurement to implement transformational changes. Organizations must cultivate a workforce with specific attributes beyond traditional procurement skills, aligning with broader innovation goals. Key questions focus on understanding employee profiles, career paths, and sourcing strategies for desired talent. Essential attributes include strong business acumen for navigating organizational dynamics and an international background for engaging in global innovation networks. Leadership, influence, and communication skills are vital for promoting innovation and collaborating with stakeholders. Embedding innovation objectives into compensation structures can motivate talent alignment with organizational goals. A 20% annual turnover objective indicates a proactive talent management strategy that encourages diversity in skills and positions the organization for future adaptability and growth. This framework is essential for developing a robust procurement talent pool to drive innovation and achieve strategic objectives.
The Supplier Selection Matrix is a strategic tool for identifying key suppliers based on current and future capabilities. It consists of 4 quadrants: Star, Dilemma, Laggard, and a section for suppliers with no specific Supplier Relationship Management (SRM). The "Star" quadrant includes suppliers capable of delivering immediate value and aligning with future needs, making them ideal partners. The "Dilemma" quadrant features suppliers with potential for development, suggesting that engagement can lead to valuable partnerships. Conversely, the "Laggard" quadrant identifies suppliers lacking both current and future capabilities, indicating limited potential for innovation. Developing closer ties with suppliers can yield benefits such as exclusive access to innovations, enhancing competitive positioning through effective leverage of supplier capabilities.
Source: Best Practices in Innovation, Procurement, Supplier Management PowerPoint Slides: Innovation-driven Procurement PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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