Thursday 19th October 2017
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British business stifling innovation by failure to ditch old-fashioned ways of working with suppliers

Summary
 
 

British business stifling innovation by failure to ditch old-fashioned ways of working with suppliers

Across the country, businesses are putting their competitive edge at risk by failing to seek out the best deals on offer online, according to findings unveiled today.

When it comes to sourcing professional services, most firms say they are reluctant to choose new suppliers over existing ones, even though they could be paying less and getting better service.

Despite this, while nearly everyone (94%) is comfortable in their personal life shopping via an online platform for goods such as Amazon or Ebay, less than half (39%) are willing to embrace buying services in the same way in their business life.

Half of those polled by blur Group said they could expect to save up to 20% from sourcing services online but three quarters (75%) also admitted that ‘peer group pressure’ inside their organisations prevented them from doing business with service providers outside their existing networks, stifling fair competition.

The study, which surveyed 300 decision makers within UK businesses and 141 UK service providers, found that whilst 89% of business buyers believe there are better service providers available than their existing network, the vast majority (89%) were still likely to approach their existing service providers when a new project arose.

In contrast, 93% of decision makers admitted they would like to find a service provider offering a more innovative and fresh approach to those they currently work with, however 83% revealed that procurement processes often prevent them from doing so.

As a consequence of constantly working with the same network, two thirds (66%) of decision makers felt that service providers often got jaded before projects were finished, leading to unsatisfactory results.

This approach to awarding contracts by decision makers was echoed by the service providers themselves. Eight out of ten (81%) found that most pitches are won by companies with existing relationships rather than the best ideas, whilst 93% admitted they had participated in new business pitches where they stood ‘no chance of winning’ as the client had a clear favourite from the outset of the process. 86% believed they had been added to pitch lists simply to make up the numbers.

Old, traditional way of doing business New, liberated way of doing business Preferred suppliers lists A level playing field Who you know What you know Choosing a large, well established ‘safe’ supplier Choosing the supplier who best answers the brief Taking countless man hours comparing suppliers Choosing quickly from a shortlist of three of the most suitable Complacency Innovation

Commenting on the findings, Philip Letts, blur Group CEO, said: “Existing barriers in the offline space mean there is a lot less innovation than there could be.  We are calling on businesses across the UK to embrace s-commerce and liberate themselves from the tyranny of tradition.”

To find out more about s-commerce, or services commerce – how it differs from e-commerce and how it’s changing the face of modern business around the world – watch our video with Philip Letts here…

http://www.youtube.com/watch?v=FJSEc3XwYB8

To find out more about how to contribute to blur Group’s ‘Liberate Manifesto for Change’ visit https://www.facebook.com/liberatebusiness and tweet @Liberate_Biz  #LiberateBusiness