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.
This product (Innovation-driven Procurement) is a 26-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately 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 a framework for understanding procurement strategy, emphasizing 3 key components: Company DNA, Role of Procurement, and Type of Innovation. Each component plays a crucial role in shaping how procurement functions within an organization.
Starting with Company DNA, the slide suggests that open innovation can be positioned either as an additional resource or as a core element of the company's strategy. This indicates that the organization’s foundational values and operational principles significantly influence how it approaches procurement and innovation.
Next, the Role of Procurement is highlighted. It states that procurement is not just a transactional function, but is actively leading open innovation initiatives. This suggests a shift towards a more strategic role where procurement can drive innovation rather than merely support it. The open innovation function is noted as having the lead, which implies that procurement is increasingly responsible for integrating innovative processes and contract management.
Finally, the Type of Innovation is discussed, with a spectrum ranging from more disruptive to more incremental innovations. This differentiation is vital for organizations to understand the nature of the innovations they are pursuing and how procurement can align with these goals.
The concluding note emphasizes that while Company DNA serves as a foundational input rather than a direct lever, it remains essential for defining procurement's role and vision within the broader innovation strategy. This insight is critical for executives looking to enhance their procurement strategies to foster innovation effectively.
This PPT slide outlines the critical role of Procurement Strategy in enhancing the value proposition of procurement within an organization. It emphasizes that a significant shift in the Procurement Operating Model is necessary, driven primarily by innovation. The text suggests that innovation can substantially elevate the effectiveness and perceived value of procurement functions.
Three key components are identified as driving the Procurement Strategy: Company DNA, Type of Innovation, and Role of Procurement. "Company DNA" likely refers to the inherent characteristics and culture of the organization that influence its approach to procurement and innovation. Understanding this aspect is crucial for aligning procurement strategies with the broader organizational goals.
The "Type of Innovation" component differentiates between disruptive and incremental innovations. This distinction is important as it guides how procurement can adapt its strategies to leverage different types of innovations effectively. Disruptive innovations may require a more agile and responsive procurement approach, while incremental innovations might focus on optimizing existing processes.
Lastly, the "Role of Procurement" highlights how procurement can be positioned not just as a cost center, but as a strategic partner in driving innovation. The slide suggests that when procurement is given a clear mandate with explicit objectives, it can operate effectively in a "push" mode, actively promoting innovation internally and externally.
Overall, this slide serves as a foundational overview for organizations looking to rethink their procurement strategies in light of innovation. It encourages leaders to consider how their procurement functions can evolve to better support organizational objectives and drive value.
This PPT slide focuses on the critical need for the right talent in procurement to successfully implement transformational changes. It emphasizes that beyond traditional procurement skills, organizations must identify and cultivate a workforce equipped with specific attributes. The objective is clear: to grow procurement talents that align with broader organizational innovation goals.
Key questions guide this initiative, highlighting the necessity of understanding employee profiles, career paths, and sourcing strategies for desired talent. The attributes listed are essential for navigating the complexities of modern business environments. Strong business acumen is vital for comprehending organizational dynamics and competitive positioning. An international background is also crucial, enabling employees to engage effectively within global innovation networks.
Leadership and influence are underscored as necessary skills for promoting innovation visions and engaging stakeholders. Communication skills are equally important, facilitating collaboration with both internal teams and external suppliers. The slide suggests that embedding innovation objectives into compensation structures can further motivate and align talent with organizational goals.
The mention of a 20% annual turnover objective indicates a proactive approach to talent management, aiming to encourage diversity in profiles and skills. This strategy not only addresses immediate talent needs, but also positions the organization for future adaptability and growth. Overall, the slide presents a comprehensive framework for developing a robust procurement talent pool that is essential for driving innovation and achieving strategic objectives.
This PPT slide outlines 3 distinct organizational patterns for an innovation-driven procurement structure. It categorizes these patterns into 3 roles: Category Manager, Innovation Buyer, and a Hybrid Approach, which combines elements of both.
The first column focuses on the Category Manager role. This position emphasizes expertise in market knowledge, cost modeling, and benchmarking. The responsibilities include developing mid-term action plans, managing supplier panels, and setting market share targets. Scouting for new suppliers and leveraging supplier innovation are also key activities associated with this role.
The second column introduces the Innovation Buyer. This role is crucial for organizations aiming to enhance their procurement processes through innovation. The Innovation Buyer is tasked with identifying and integrating innovative solutions from suppliers, which can lead to significant improvements in procurement efficiency and effectiveness.
The Hybrid Approach, presented in the third column, merges the functions of both the Category Manager and the Innovation Buyer. This model allows for a balance between long-term innovation initiatives and short-term procurement needs. It suggests that organizations can benefit from having dedicated roles that focus on both immediate procurement requirements and the exploration of innovative supplier solutions.
Overall, the slide emphasizes the importance of structuring procurement organizations to foster innovation while maintaining operational efficiency. Each organizational pattern offers unique advantages, and the choice among them should align with the organization's strategic goals and market dynamics. Understanding these roles can help potential customers assess how to optimize their procurement functions for greater impact.
This PPT slide presents a framework for selecting key suppliers through a Supplier Selection Matrix. This tool is designed to help organizations identify which suppliers to cultivate closer relationships with, based on their existing and future capabilities. The matrix is divided into 4 quadrants: Star, Dilemma, Laggard, and a section indicating no specific Supplier Relationship Management (SRM).
The "Star" quadrant highlights suppliers that are capable both today and in the future. These suppliers represent the ideal partners for development, as they can provide immediate value while also aligning with future needs. The "Dilemma" quadrant includes suppliers that may not currently meet all requirements, but have the potential to develop capabilities over time. Engaging with these suppliers can be a strategic move, as they may evolve into valuable partners.
In contrast, the "Laggard" quadrant identifies suppliers that lack current and future capabilities. These suppliers are less likely to contribute to innovation or strategic goals and may not warrant further investment in relationship-building.
The slide emphasizes the importance of developing closer ties with suppliers, suggesting that such relationships can lead to negotiating valuable benefits, including exclusive access to innovations. This approach can enhance an organization's competitive positioning by leveraging supplier capabilities effectively.
Overall, the Supplier Selection Matrix serves as a practical guide for executives looking to optimize supplier relationships and drive innovation through strategic partnerships. Understanding where suppliers fit within this matrix can inform decision-making and resource allocation.
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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