Test and Buy Innovation
Outcome-focused and agile procurement attracts innovation to solve complex digital challenges
The NSW Government developed an innovation procurement model and piloted centralised support to help agency buying teams adopt innovation-friendly buying practices that:
- used outcome-focused challenge statements instead of prescriptive specifications
- engaged suppliers early through collaborative discovery processes
- made it easier for small and medium enterprises to participate in procurement
- provided space for testing and iterating solutions with end users.
This work was supported by procurement reform initiatives, digital and innovation capability uplift, and a shift in culture toward shared risk and experimentation.
Achievements
The outcomes demonstrate how procurement can be a powerful enabler of digital innovation and public value when reimagined for agility, trust, and collaboration. As a result:
- projects were delivered faster, with better alignment to user needs
- participation was increased from a more diverse supplier base
- government teams future-proofed investments through access to latest technology
- suppliers welcomed the clarity, openness, and fairness of this way of working with industry.
Engagement
The Test and Buy Innovation team directly supported multiple buying project teams to navigate the complex procurement landscape and to adopt innovation friendly practices. They also engaged ICT and procurement practitioners across the NSW Government to build and validate the agile, outcome-focused Test and Buy Innovation model.
Department leading the project
Department of Customer Service