Executive Summary
The report analyses the Procura+ Case Study. The case study describes the inDemand model as a current demand-driven model that helps procure innovation in public companies through co-creation. The report discusses SWOT analysis as an analytical tool to identify the procurement process’s strengths, weaknesses, and undercurrents. Forces such as improved innovation, enhanced user engagement, transparency, and decreased risk failure have been discussed in the report. The report discusses improved creation as a strength that encourages innovation enhancement and solutions that align with the real-world demanding contexts. Enhanced user engagement is demonstrated through collaboration where stakeholders and organizations have collaborated to identify and develop effective procurement solutions. The procurement process is recognized as a model that identifies and solves risks early. Transparency is demonstrated through all stakeholders’ involvement and open innovation. The strengths have been identified by the analytical tool chosen while evaluating the procurement case.
The analytical tool also identifies weaknesses, such as increased complexity, difficulty measuring success, and potential bias during the procurement case evaluation. The report illustrates that measuring the model’s effectiveness and efficiency is challenging. The procurement process also has a high potential for bias since stakeholders have options in any co-advent process. The analytical tool identifies undercurrents responsible for the procurement process, such as facilitation and communication, clear project goals, and supportive organizational culture. The analysis discusses that the undercurrents have influenced the procurement process positively, enabling it to achieve its objectives. The report also provides different evidence-based recommendations that can innovatively enhance the process. Concepts like open innovation, co-creation, change management, procurement innovation, learning, and digital platforms are used to back up the analysis.
Introduction
The InDemand model is a singular technique where companies with unfulfilled needs and external organizations come together and find solutions. The organizations involved receive finances from territorial development agencies and business assistance from market professionals to increase sustainable success chances. The Procura+ participant in this instance is the Servicio Murciano de Salud (SMS), which has shown its dedication to modern health, counting on healthcare experts and helping implement actual innovation. SMS seeks an international solution for the current follow-up of chronic illnesses like epilepsy. The center of focus is the patient, assigned to experts, family members, and other critical members of the patient. The participant has procured an entire solution called Epilepsy Communication Channel (EPICO) that was effectively co-generated and tested in InDemand. EPICO utilized the model to pinpoint the problem of enhancing accessibility for and follow-up on patients with epilepsy. inDemand project brought various procurers from different European regions to test the model. The model has been tested by multiple innovation projects, such as EPICO.
The main objective of InDemand is the promotion of innovation by merging the demand that recognizes what it requires with the solution development in the procedure of co-generation. The analysis aims to evaluate the procurement procedure’s strengths, weaknesses, and undercurrents, providing a basis for recommendations. Analytical tools, such as SWOT analysis, will be used to evaluate the case study. The report will also provide evidence-based recommendations for the procurement process.
Evaluation of the Procurement Case
Analytical Tools
SWOT analysis is used as an analytical tool to evaluate the Procura+ Case Study since it is a strategic analytical tool utilized to assess an organization’s competitive position. The tool is designed to provide a factual and realistic look at the strengths and weaknesses of the company or a procedure. In this instance, the analytical tool is utilized to provide an authentic and realistic look of the InDemand model, identifying the strengths and weaknesses of the model.
Strengths, Weaknesses, and Undercurrents
Strengths
Improved Innovation
InDemand model encourages the enhancement of innovation and practical solutions that cope with real-world demanding scenarios. The model is suited to ever-transforming technologies like modern solutions. The process is designed for innovation procurement in public companies, promoting creativity and enhancement. InDemand model shows that there are quicker options to the systematic ones that need minimal effort. Promoters of the model have determined that the model promotes open innovation. The model involves end-users who utilize innovative techniques to solve problems. The procedure aims to promote innovation by combining the demand that determines what it needs with the solution development in the process of co-creation (Malm et al., 2020, pp.75-108). In this case, the demand identifies what it requires in the health experts of the Murcian Health Service, and the solution development involves health experts with technology organizations. The increased innovation outcome is a higher success rate in modern solutions. The solutions are successful because customer and a progressive feedback procedure, and an international vision of requirements have developed them.
Based on InDemand model, regions like Navarra and Aragon have launched programs to procure innovation. The value of the model’s innovation has been demonstrated on 22 projects. Aragon and Navarra regions and the InDemand community have procured innovation for an accumulated 150,000 euros from 6 projects. The model has also made Cherries procure an innovation of 150,000 dollars for three projects and an InDemand-RTC of 350,000 dollars for twenty anticipated projects (Procura Plus, 2022). There is more visibility for innovation since talent is put in value. Innovative individuals see changes and creative chances instead of barriers in their daily activities.
Enhanced User Engagement
Collaboration between the public region teams and their stakeholders is promoted by the InDemand model, ensuring procurement problems are solved effectively. The model also ensures solutions are straightforward and meet the needed requirements. Various partners have collaborated and led the SMS project. Procurers from different regions of Europe have collaborated to test the model described as quicker, learner, and needing fewer resources and overheads via pre-commercial procurement.
Various organizations were called to co-generate an innovative answer in the Neurology sector of Santa Lucia Hospital. Oxiframe Company was chosen from the other companies by the committee. The organization awarded operates with the organizations that proposed the issue and develop with effective solutions following an open-innovation strategy. The organization then interacts directly with end users to develop and test the solutions. Neurologists worked together with patients, and the organization engaged in a co-creation procedure for one year of an application of 120 patients. An open tender for the answer was prepared by SMS, where PULSO collaborated with Oxiframe and won. The developed solution of the model was tested for two months with patients at the Hospital of Cartagena, hence considering how companies have used co-generation models to show the engagement of patients and healthcare professionals. The collaboration makes the model more critical and sustainable than other models. Therefore, the model improved user engagement by offering collaborative surroundings and solving procurement problems successfully.
Decreased Risk Failure
The model ensures that possible risks are identified and mitigated earlier, enhancing the opportunity to implement innovation initiatives. InDemand model was used by EPICO to identify the issue of enhancing accessibility for epileptic patients that provided an effective solution for the patients. Companies such as PULSO and Oxiframe came together and utilized the model to prepare and open tender for health solutions earlier hence decreasing risk failure.
Transparency
The procedure promotes transparency by including stakeholders in the solutions’ co-creation. The model involves the supplier, procurer, supporters, and funders making every activity open and transparent to all members involved. The committee involved identifies the relevant actors who can provide effective solutions. For instance, the decision committee selected Oxiframe organization after a tender process to co-create an innovative solution on epileptic patients. The transparency is critical in any business since it makes stakeholders accountable and measure their trustworthiness. InDemand model demonstrates transparency by aligning answers with real desires reducing resources wastage and causing price-powerful procurement outcomes.
Weaknesses
Maximized Complexity
The model is in a manner that is co-advent and consume more time and resource-intensive, needing careful control and cooperation. For instance, the tender of coming up with a 5-month co-creation procedure was achieved by many patients who were 120 and took one year. The procedure consumed more time, and it required many patient stakeholders for it to be successful. The process is complex requiring experimentation of more instruments to ensure it promotes open innovation. Some of the procedures were put off by the European community because of the internal resources required to set them up and a lot of time taken to co-create solution. Testing the efficiency of the developed solution also consumes more time. For instance, there is a solution that was tested at the Hospital of Cartagena that took 2 months with 54 patients and a wider group. The model proposes more resources and time to co-create an effective solution, especially in Information Communication Technology and digital areas making the model more complex.
Difficult when Measuring Success
The effect of the model’s innovation outcomes can be challenging to quantify, making it difficult to evaluate the entire efficiency. When measuring the success of the procurement process, it seems there was a challenge since the procedure was taking more time to be tested for effectiveness and efficiency.
Potential to Bias
The members option in any co-advent technique can introduce bias, restricting opinions and solutions diversity (Brynskov et al., 2022). The errors can come from the choice of features utilized to build the InDemand model. The model’s possibility of bias can limit the stakeholders from offering their best on procurement process. The model is complex since it is co-advent and consumes more time and resources.
Undercurrents
Facilitation and Communication
Skilled facilitation and strong communication are critical when giving directions to members through co-advert procedure and ensuring effective thoughts of trade off. The model has led people and organizations through procedures toward the set goals in a way that encourages participation and innovation. Facilitation of the model has influenced procurement activities positively, making them easier and simplifying the procedures of achieving goals. The model has promoted collaboration where it has created a collaborative environment for decision-making and meaningful discussions and cooperations.
InDemand model significantly influences communication between patients and healthcare professionals, especially those involved in epilepsy. The model has improved satisfaction of patients enhancing life quality for direct conversation between patients and healthcare professionals (Ruggiero et al., 2021, pp.1-17). The patient has been the main focus of the model, ensuring care continuity and community improvement between patients, family members, and doctors. The communication is co-created within members involved in the organizations implementing the model. It focuses on change that needed to take place, but not dictating what must be carried out when working for solutions. Skilled facilitation and solid communication were mostly influenced by the collaborative environment generated by InDemand model.
Precise Project Goals
Precisely defined goals of a project provide a model for the co-advent way, aligning solutions with an organization’s goals. Objectives are high level statements in every organization that provide a general context for what is to be achieved and should be aligned to business objectives. Procurement objectives of the model has provided a roadmap to be followed holding all stakeholders accountable (Pikkarainen et al., 2020, p.39). The model is a demand-driven strategy that focuses on a demand-driven co-creation procedure that aligns actual needs with procurement. The promoters of the model were initially frustrated by several solutions that had no commercial traction since the needs addressed were perceived to be unimportant by the procurers. The objectives promote innovation, leading to a high rate of success in modern solutions. The model’s goals have also influenced regions such as Aragon and Navarra to procure innovation. InDemand goals play a vital role in stakeholders’ performance and well-being.
Supportive Organizational Culture
A supportive organizational culture encouraging collaboration and innovation is critical for the successful application of the InDemand model. The manner in which organizational culture changes towards innovation is critical when working with the model. For instance, the management can set many approaches and actions but when organization’s personnel do not purchase them, the model loses its importance, particularly in public administration. Transforming perceptions on needs identification, being innovative, and open to collaborations when solving problems makes the model more sustainable.
The implementation of the model has been made successful by collaborative and innovative environment created by the stakeholders. Organizations like Oxiframe have created public innovation procurement to provide digital solutions and continuity of care. Stakeholders have been actively participated in creating and exchanging ideas, needs, standard practices, and legitimate restrictions making the model more valuable and sustainable to organizations (Miller and Lehoux, 2020, p.104075). Supportive organizational culture has also influenced the model by creating collaborative surroundings. The collaboration has added value to organizations needed for successful procurement. Organizations have come together and utilized the model to come up with effective solutions to procurement issues affecting healthcare delivery.
Recommendations
InDemand models need some improvement to further procure innovation in public companies. Increased procurement innovation allows problem-solving, providing creative insights that enable an organization to look at things from a different view. Productivity can be increased when procurement innovation is at higher heights since it helps in finding means of enhancing existing procedures, streamlining activities, and implementing new forms of addressing challenges.
Innovation champions should be introduced in the procurement groups to shift a cultural change towards encouraging innovative solutions. The champions can cultivate an organizational culture that values risk-taking, experimentation, and progressive enhancement. Innovation champions have strong confidence and enthusiasm for innovation via getting the support and cooperation of the critical stakeholders, hence creating new ideas and opinions on the development of a solution. The concept of innovation champions who participate in promoting innovation in an organization aligns with this recommendation.
Collaborative platforms should be used to enhance co-creation and leverage modern technologies. The platforms can leverage creation gear to influence information sharing, communication, and collaboration among project’s stakeholders. Collaborative platforms can give stakeholders the essential resources and tools to coordinate together while in the different locations, reducing downtime and enabling them to be more productive at their convenience. The platforms are highly cost-effective since members can work remotely and share information from any place minimizing office expenses. The stakeholders can save costs while maintaining effectiveness and productivity. The concept of open innovation and modern platforms, as illustrated in relevant literature, aligns with this recommendation.
Stakeholders should be provided with a progressive training and education to know how co-creation system works and contribute effectively. To maximize optimal implementation of the model, training and education are critical since it provides better understanding of the model. For instance, the implementation of the model was maximized when the organizations that joined the Community of procurement received training and mentorship. Training can improve skills and knowledge to match on different changes like ever-changing technology hence impacting stakeholders’ performance positively. Stakeholders need to be empowered for effective performance. Stakeholders feel a greater sense of autonomy, confidence, and value in their activities improving their productivity levels. Regular training and education prevent idleness and can help stakeholders re-evaluate their skills and procedures influencing organizational culture. During the learning sessions, stakeholders can address challenges together and rely on one another for different opportunities through collaboration, hence improving their ability to co-create innovative solutions. The concept of learning aligns with this recommendation.
Summary
InDemand model employs both co-creation and demand-driven strategies. The model increases the ability of health components to identify and find solutions of health entities, while generating opportunities for organizations. The added value of the co-generation procedure between Information Technology and healthcare companies is the generation of modern solutions with high rate of success since client have been involved in the development of the solution.
SWOT analysis is used to identify strengths, weaknesses, and the undercurrents for the procurement procedure. The analytical tool identified strengths for the procurement procedure, such as improved innovation, enhanced user engagement, decreased risk failure, and transparency. Weaknesses like maximized complexity, potential to bias, and difficult in measuring success were identified by the analytical tool. The tool also identified undercurrents, such as facilitation and communication, clear project goals, and supportive organizational culture. Concepts such as open innovation, co-creation, change management, procurement innovation, and digital platforms concept support InDemand model in Procura+ Case Study. By applying a structured strategy and integrating relevant model and concepts, the analysis targets to provide an in-depth understanding of strengths, weaknesses, and undercurrents of the procurement procedure. The analysis also provides evidence-based recommendations that are grounded in best practices and literature to innovatively enhance the procurement procedure.
References
Brynskov, M., Raitisoja, G., Campolargo, M., Kerschot, H., Bianchi, I., Fagiani, F., Fontana, M., Mariani, I., Secchi, M., Sserwanja, I. and Guan, B. (2022) DIGISER. Digital Innovation in Governance and Public Service Provision. https://re.public.polimi.it/handle/11311/1229401
Malm, H., Pikkarainen, M. and Hyrkäs, E. (2020) Impact of coupled open innovation on company business models: A case study of demand-driven co-creation. Journal of Innovation Management, 8(3), pp.75-108. https://journalengineering.fe.up.pt/index.php/jim/article/view/2183-0606_008.003_0006/461
Miller, F.A. and Lehoux, P. (2020) The innovation impacts of public procurement offices: The case of healthcare procurement. Research Policy, 49(7), p.104075. https://doi.org/10.1016/j.respol.2020.104075
Pikkarainen, M., Hyrkäs, E. and Martin, M. (2020) Success factors of demand-driven open innovation as a policy instrument in the case of the healthcare industry. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), p.39. https://doi.org/10.3390/joitmc6020039
Procura Plus. (2022) InDemand, a new demand-driven co-creation model that helps to procure innovation in public organizations, Procura+ award winning tender. European Sustainable Procurement Network.https://procuraplus.org/fileadmin/user_upload/Procura__case_studies/Procuraplus_case_study_Murcia_Health_Service.pdf
Ruggiero, S., Kangas, H.L., Annala, S. and Lazarevic, D. (2021) Business model innovation in demand response firms: Beyond the niche-regime dichotomy. Environmental Innovation and Societal Transitions, 39, pp.1-17. https://doi.org/10.1016/j.eist.2021.02.002
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