091023b Acca Unlocking Innovation Through Procurement

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presentation to ACCA on 23 Oct 2009 on procurement strategy for innovation

presentation to ACCA on 23 Oct 2009 on procurement strategy for innovation

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  • 1. Unlocking innovation through procurement to increase capacity in public services Dr Gordon Murray 23 October 2009
  • 2. The commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle
  • 3. Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review Determine the need Supplier selection Contracting Ordering Expediting Follow-up/ evaluation The commissioning cycle The purchasing cycle procurement
  • 4. Maximise opportunities throughout the Procurement Cycle 8. Closure / Review Need 1. Identify Need 2. Develop Business Case 3. Define Procurement Approach 4. Supplier Appraisal 5. Tender Evaluation 6. Award Contract 7. Manage Implementation of Contract
  • 5. Policy & strategy
    • Set innovation as a procurement objective & KPI
    • Ensure access to procurement know-how
    • Use cross-functional teams
    • Focus on outcomes/outputs
    • Publish long-term plans
    • Develop approach to unsolicited openings
    • Encourage early dialogue with the market
    • Accept variants
    • Use ‘lots’ and pilots
  • 6. Competitive procurement
    • Incentivise innovation
    • Evaluate risks
    • Evaluate variants
    • Test the business case
  • 7. Post award
    • Risk/reward share
    • Embed within contract management continuous improvement plan
    • Collect and learn from the lessons (on both sides)
  • 8. Utilise Gateway Stages 4. Supplier Appraisal 5. Tender Evaluation Challenge Challenge Challenge Challenge Challenge Challenge 8. Closure / Review Need 1. Identify Need 2. Develop Business Case 3. Define Procurement Approach 6. Award Contract 7. Manage Implementation of Contract
  • 9. A procurement policy and strategy to unlock innovation
    • Strategic objective
    • Focus on outcomes
    • Cross-functional teams
    • Recognise the market as an asset
    • Performance manage
  • 10. Unlocking innovation through procurement to increase capacity in public services Dr Gordon Murray 23 October 2009