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Innovation through procurement

-High-level considerations
-Market creation
-Predictable demand
-Competitive neutrality
-Innovation through procurement

What can public sector competition and market competitiveness do for innovation and continuous improvement?

This is not just about 'big bang' high technology change, but also improvements in process and procedure. The following factors, for consideration, may encourage innovation:

  • Identify the key suppliers and understand the market place,
  • Be aware of forthcoming developments,
  • Early and continuing dialogue with potential suppliers, on their product /service developments and plans,
  • Signalling demand plans and profiles for known and anticipated requirements,
  • Use outcome specifications to avoid constraining the solution, by detailed specification. Allow the market to respond with its solutions,
  • Consider developing a formal structure / process to call for and collect new ideas and innovations,
  • Be willing to take and manage risk - your organisation's appetite for risk could limit the potential,
  • Use competitive dialogue to explore the solution with potential suppliers.

Reference: Capturing Innovation, OGC, 2004  (PDF).

Additional OGC guidance on this subject is scheduled for the Spring of 2007.

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