How INNOVO can disrupt any industry
Cost Savings and Increased Sales
INNOVO offers savings to any organisation that buys (all sectors: private, public and non-profit).
It also makes it easier for companies who sell to other organisations (B2B).
Buyers and Suppliers co-operate via the INNOVO platform to unlock and share 2 types of savings:
- Buyers buy together with other Buyers from the same Supplier generating economies of scale. This enables the Supplier to efficiently sell unsold wasted spare capacity. During trials, Suppliers offered 5.8% savings initially rising to 14.0% at full capacity.
- Buyers make it easier for Suppliers to sell to them by telling Suppliers when they are ready to buy. This saves the Supplier on customer acquisition costs. During trials, Suppliers offered an additional 7.4% savings.
Total savings were therefore 7.4% + (5.8% rising to 14%) = 13.2% rising to 21.4%.
Suppliers join INNOVO for free to find new customers ready to buy their product. They can profitably sell their spare capacity and share some of their usual customer acquisition costs via the platform.
Suppliers can also use INNOVO proactively to take customers from their competitors. The Supplier invites the target customer to join INNOVO where the customer can save on everything it buys. The Supplier offers the customer the above INNOVO savings which it can access by posting a procurement request on INNOVO. This is likely to prompt the customer to immediately demand INNOVO savings from the Supplier’s competitor.
INNOVO is free to both Buyers and Suppliers. Buyers can use it for existing and new Suppliers.
It works alongside existing procurement platforms and processes. It is a free B2B sales channel.
The scale of the savings and the use of it to take market share can yield a substantial impact on profitability and competitive advantage. Industry disruption arises when different organisations adopt the use of the platform at different times.Adopters Relative to Non-Adopters
Adopters can use INNOVO immediately to achieve the following compared to non-adopters:
- Lower costs
- Increased sales from direct new customer acquisition on INNOVO plus pricing advantages from lower costs.
- Higher profitability
As a result of these, adopters gain additional competitive advantages such as higher returns to shareholders and higher levels of capital investment. INNOVO can be used to buy capital equipment.Early Adopters Relative to Later Adopters
Early adopters in an industry have additional advantages over later adopters:
- A Buyer introducing a Supplier to INNOVO enables it to save across its own supply chain. The Buyer can leverage a share of these savings having introduced the Supplier to INNOVO.
- Early adopters can use INNOVO to take target customers held by their competitors.