Supplier partnerships should set out a formalized and robust way of managing, monitoring and developing supplier and commissioning party performance whilst at the same time minimizing risks to the business. focus on the overall relationship over time rather than the specific relationship around an ‘Partnerships’ individual, time-limited, contract. Yet traditional public sector procurement and supplier management practices can represent a significant obstacle to transformational government. From both the public and private sector sides of the market, there is strong evidence that such practices can stifle innovation and inhibit the ability of governments and industry jointly to undertake real life R&D and to pool intellectual property for mutual benefit. Equally, there is increasing consensus on new, approaches to supplier partnership, which are “smarter” already starting to develop and should be more widely adopted. Figure 9 summarizes some of the key elements of this shift. Traditional public procurement and Transformational Supplier Partnership supplier management Silo-based procurement, with requirements set An integrated strategic approach to the by individual agencies within the government… commissioning of services, across the government and in partnership with other public service delivery organizations with little ability to fund solutions that Budget alignment mechanisms enable effective …and benefit multiple organizations provision of common good platforms and services The government defines the technology and The government defines the outcomes and other inputs it wants to buy, and the immediate service levels it wants to achieve outputs it wants these to deliver Requirements are developed internally by the Requirements are developed iteratively, in government partnership between customer, commissioner and supplier The government brings its requirements to the Published pipelines of future requirements help market in a piecemeal manner to stimulate the market and enable suppliers to propose new cross-cutting solutions to deliver multiple requirements Government agencies define requirements Joint procurement initiatives, facilitated by in isolation from each other shared pipelines, enable shared services across more than one agency and also stimulate the market for standardized and replicable public sector solutions (including via Cloud Computing) Procurement and contracting is based around A range of more innovative delivery models are purchaser–provider, client–agent relationships deployed, including joint ventures and partnerships between government, industry and academia that promote collaborative solutions while safeguarding the intellectual property of each
Supplier partnerships should set out a formalized and robust way of managing, monitoring and developing supplier and commissioning party performance whilst at the same time minimizing risks to the business. ‘Partnerships’ focus on the overall relationship over time rather than the specific relationship around an individual, time-limited, contract. Yet traditional public sector procurement and supplier management practices can represent a significant obstacle to transformational government. From both the public and private sector sides of the market, there is strong evidence that such practices can stifle innovation and inhibit the ability of governments and industry jointly to undertake real life R&D and to pool intellectual property for mutual benefit. Equally, there is increasing consensus on new, “smarter” approaches to supplier partnership, which are already starting to develop and should be more widely adopted. Figure 9 summarizes some of the key elements of this shift. Traditional public procurement and supplier management Transformational Supplier Partnership Silo-based procurement, with requirements set by individual agencies within the government… An integrated strategic approach to the commissioning of services, across the government and in partnership with other public service delivery organizations …and with little ability to fund solutions that benefit multiple organizations Budget alignment mechanisms enable effective provision of common good platforms and services The government defines the technology and other inputs it wants to buy, and the immediate outputs it wants these to deliver The government defines the outcomes and service levels it wants to achieve Requirements are developed internally by the government Requirements are developed iteratively, in partnership between customer, commissioner and supplier The government brings its requirements to the market in a piecemeal manner Published pipelines of future requirements help to stimulate the market and enable suppliers to propose new cross-cutting solutions to deliver multiple requirements Government agencies define requirements in isolation from each other Joint procurement initiatives, facilitated by shared pipelines, enable shared services across more than one agency and also stimulate the market for standardized and replicable public sector solutions (including via Cloud Computing) Procurement and contracting is based around purchaser–provider, client–agent relationships A range of more innovative delivery models are deployed, including joint ventures and partnerships between government, industry and academia that promote collaborative solutions while safeguarding the intellectual property of each
Transformational_Government_Framework_Version_2.docx