Even if ICT professionals and buyers update their market intelligence frequently, there is always a risk of their knowledge being outpaced by innovation and technological change. It's unlikely that even the most knowledgeable ICT strategist or specialist can be across every new or emergent technology domain and capability.
This is compounded by the fact that larger enterprises tend to be better known due to their marketing reach, whereas many less familiar small to medium enterprises (SMEs) can be more nimble, innovative and disruptive.
Rather than making risky assumptions, it's important for ICT professionals and buyers to seek outside expertise and learn about the most recent developments. Instead of making assumptions about the best solution, buying teams and their advisors should focus on the problem and the value of solving it.
Some buyers may have experience with using an outcome-focused approach to market. However others might not be aware it is possible, have doubts about the benefits, not know when to use it or how to start.
The risk of locking out innovation
Buyers with the least knowledge often have the highest confidence in their ‘innovation solutioning’ prowess (Figure 1). They are the most at risk of designing a sourcing approach around established solutions that could lock potential innovation out of a tender.
As buyers gain greater technology solution knowledge and experience, they become more aware of the gaps in their knowledge. As their confidence in pre-determined solutions falls away, they can become more open to innovative possibilities.
Impacts to innovative problem solving
Making assumptions about the solution can have several impacts on the ability of a buying project to access innovation or solve a problem. Expand the headings below to learn about each impact.
- Buyers can make assumptions about a solution to address a superficial problem, but might find it doesn't address the underlying causes or solves the wrong problem.
- Missed requirements: Important requirements and nuances may be overlooked, leading to a solution that doesn’t fully address the problem.
- Stakeholder misalignment: The solution might not meet the needs of all stakeholders, leading to dissatisfaction and resistance.
- Buyers can have difficulty finding suppliers of innovative products or solutions, especially when the products or solutions do not fit established procurement categories.
- An innovative solution might be difficult to compare to known solutions, have broader application than the procurement scope or exceed requirements set in a tender.
- Innovators solve problems using novel approaches and emergent solutions that buyers may not yet know, understand or anticipate.
- Emerging technology solutions can support additional use cases that an individual buyer might not prioritise but which could generate future benefits across the NSW Government.
- The rapid changes in the ICT and digital industry mean that assumed solutions are more likely to become outdated once delivered.
- This can be true even for technology experts within government. Missing out on the latest market developments makes it challenging for the NSW Government to future-proof its technology investments.
- The chosen solution may rely on older technologies that do not leverage the latest advancements, resulting in reduced efficiency and effectiveness.
- Innovative solutions that could offer better results might be missed if they are not identified and considered.
- Known 'out-of-the-box' solutions might superficially appear to meet buyer requirements but can end up needing unplanned customisation or having significant integration constraint.
- Solutions that are not well-researched might face compatibility and integration issues with existing systems.
- Assumptions may lead to underestimating the complexity of implementation, resulting in delays and disruptions.
In 2022 and 2024, suppliers of innovative and emerging technology solutions were engaged to provide feedback on NSW Government innovation practices. They identified the following barriers to innovation:
- Lack of two-way communication connecting problems to solutions across NSW Government as a barrier to innovation.
- Emerging technology suppliers stated that they preferred not receiving prescriptive tender specifications and assessment based on a narrow, or standard set of criteria of an assumed solution. They preferred to be asked how well a solution solves a problem. A clear, concise, well-defined problem was cited as an essential component of innovation. It provides suppliers with an understanding of business and users’ needs and affording them the freedom to solve it as they choose.
- When buyers overlook suppliers of emerging technology due to assumptions about the end solution, those suppliers take their business to other jurisdictions. Attracting the brightest and best innovators has been stated as a key objective of the NSW Government so it can build a world-class innovation partnership ecosystem.
The advantages of focusing on the problem (mitigants)
Adopting an outcome-focus, or focusing on the problem to be solved, has several advantages over assuming a solution.
Expand the headings below to learn more about each advantage.
- According to some accounts, inventor of the automobile, Henry Ford knew that horses were too slow. But this wasn’t really the problem that needed solving. Ford’s customers thought they needed a faster version of what they already had, but Ford understood their deeper purpose – to get from one place to another faster. This distinction helped him avoid engineering a faster horse and instead opened the doors to engineer something that had never existed before.
- Not every idea should be executed. Not every problem needs to be solved. A well-framed problem statement helps determine what delivers highest value and what should stay on the drawing board.
- Emerging technology providers may offer opportunities to modernise. Innovative suppliers heavily market the ‘latest thing’ to potential buyers. These services might not be successful, meaningful or valued by the business and users. Understanding and starting with the problem delivers the best return on investment.
- Undertaking a design discovery can help trace root causes, confirm the value of solving the problem and concisely articulate the challenge to be solved.
- Buyers, stakeholders, designers, solution providers and users each have a different mental model of what a solution or product should be. The biggest advantage of framing a problem is the ability to align these views.
- Engagement and mobilisation of key stakeholders and structured collaborative problem shaping help drive information sharing and build scope consensus. Following the practical steps to collect multiple perspectives sparks effective conversations, shared understanding and sound decision making. With a united view and formal sign-off on the ultimate purpose of a solution, the buying process can run more effectively and efficiently.
- When the problem is clearly stated at the beginning of a buying project, it helps uncover opportunities for the market to solve challenges. Had the buying team assumed a solution and set specifications, these opportunities might have gone unnoticed.
- Because problem statements are rooted in a user’s purpose, they also help move away from assumptions and see what barriers stand in the way of successfully reaching an end goal.
- Innovative solutions that could offer better results might be missed if they are not identified and considered.