Why data is key to unlocking procurement’s desire to drive innovation

Guest blog by James Himsworth, Procurement Consultant at Oxygen Finance Limited #LPSInnovation

In a recent event we asked a local authority Chief Procurement Officer to field questions from suppliers. These questions revealed a common assumption: the belief that suppliers, rather than procurement, are responsible for driving innovation.

This is a fundamental misunderstanding of the role that procurement teams want to play. Good procurement teams not only seek to not only buy cost-effectively and maintain business continuity, but also improve service delivery by embracing innovation where they find it.

Barriers to innovation

Yet, despite the desire to innovate, procurement teams face several challenges that stop them from driving innovation effectively, including:

Responsibility for spending an ever-increasing slice of public sector budgets, now more than 70% within local authorities.
The need to continue finding savings in already-optimised directorates.
Understanding and managing new areas of spend, such as electric vehicle charging grids and solar panels.
Limited time to search for new technologies and alternative providers.

But given the weight on their shoulders, how can already under-pressure procurement teams also be expected to lead on innovation? The answer, at least in part, lies in the unique dynamics of the public sector.

The role of data in driving innovation

A key strength of public procurement teams, when compared to their private sector counterparts, is their freedom to work in collaboration, rather than in competition with procurement teams in other public bodies.

This brain trust, guided by the transparency data that public sector bodies publish, provides a rich source of intelligence, and promotes interrogation on how the best and brightest buyers are solving problems within their fields, to the benefit of all; a rising tide that lifts all boats.

The power of procurement intelligence

Procurement intelligence tools such as Oxygen Insights leverage and enhance this transparency data so that public bodies can learn from neighbouring authorities and other parts of the public sector, gaining insights into new suppliers and better ways of providing services.

This data aids, informs, and accelerates procurement processes, allowing procurement teams to learn from the best minds in their market and circulate new ideas and solutions more efficiently throughout the public sector. Naturally, this intelligence is also available to suppliers, who can use it to identify likely buyers in their markets, allowing new vendors, and therefore further innovation, to gain a foothold.

Delivering rapid innovation through procurement teams, not despite them

Looking to procurement as an accelerant for innovation is not just desirable but a necessity if public sector organisations are to continue to deliver more with less. By leveraging data, using the right tools, and adopting a collaborative mindset, plus the increased market engagement the Procurement Act 2023 will encourage, public sector procurement teams can truly be an enabler for innovation, delivering better services that we can all benefit from.

Local Public Services Programme

techUK's Local Public Services Programme provides the forum for local public services to engage with industry to better understand the innovations out there, horizon-scan how the technologies of today and tomorrow can re-imagine local public services and solve some of the most pressing challenges our communities and places face. It also helps connect suppliers with each other, identify new business partnerships to help grow an ever thriving local government ecosystem.

Learn more