Is procurement innovation restricted by risk-averse nature and non-competitive behavior?

The Procurement Innovation Pathway research report reveals that procurement is innovating and wants to take charge, but lack of competitiveness and risk taking may be affecting their progress. The results indicate that procurement needs to step out of its comfort zone and overcome the risk-averse nature, non-competitive attitude and absence of leadership skills in order to lead business innovation.

Out of the 100 UK Senior professionals surveyed by Morar Consulting, 69% considered themselves essential to business innovation today and 80% expecting to be so in the future. On average 76% said that they want to be part of different business innovations. However only 27% would like to be in charge and lead them. 86% said they want to be involved in all ongoing product innovations and service developments in the future – not only those within the procurement function.

“It’s fair to say that the average procurement function today is a vastly different place to what it once was. Procurement is innovating and there’s no doubt about that. But are they heading in the right direction or truly prepared to break the mold? Clear indicators of some discomfort with taking risks and really leading and riving innovation suggest it’s not yet realizing its full potential in this area.”

Daniel Ball, Product & Innovation, Medius

Procurement recognizes that there are many different factors influencing their ability to innovate. These include lack of skills, lengthy procedures and different interdepartmental views and opinions. However, only 14% of the procurement professionals, which took part in our study distinguished that competitiveness is essential when it comes to innovation and only 18% identified leadership as a skill within their team.