INNOVO Starts with Your Existing Suppliers
INNOVO – the New Global Commerce, makes use of a Platform Business Model. It is similar in construct to other platforms that have come to prominence in the Consumer market, such as UBER, AirBnB, Apple’s App Store and Facebook to name a few. It is also different in some critical respects.
Firstly, INNOVO is for the exclusive use of B2B trade, so the consumers/users on the platform are organisations. As will be appreciated, organisations behave differently than individual consumers when making purchases, so as a B2B platform INNOVO takes their buying journey into account.
Secondly, the consumer platforms face the ‘chicken-or-egg’ problem: users wont come to a platform unless it has value, and a platform wont have value unless users use it. That is to say these platforms are dependent on user scale, some critical mass number of users before value becomes available on the platform. This is not the case with INNOVO. At the most extreme of examples, with only two users, one Buyer and one Supplier value will be unlocked and value will be unlocked for both via an interaction on the INNOVO platform. Of course, more users will increase the scope and scale of value to be shared (See Network Effect Powering INNOVO), but the point here is that there is not some critical mass level, before value is unlocked.
To explain how this is the case:
The Problems INNOVO Addresses are fundamentally the waste in commercial transactions under the traditional model of commerce between businesses. INNOVO enables the New Global Commerce, by establishing a community founded on cooperation. It is via this cooperation as way of doing business that reduces the waste, creates the savings, which is shared immediately. The value will flow between a Buyer and a Supplier.
Buyers do not need to find new Suppliers to unlock savings from waste. All their current existing Suppliers, even those under fixed contracts, will be able to make savings via membership of INNOVO and these can be shared with the Buyer, immediately. So Buyers do not need to wait for large numbers of new, unknown Suppliers to join the platform. In any event, Buyers are unlikely to churn their existing Supplier base and the value is available from these existing Suppliers. Buyers simply have to invite their current Suppliers to join them on INNOVO.
Crucially, using INNOVO does not require adjustment to a Buyers existing procurement processes. It operates alongside these and as such allows all the current protocols between the Buyer and its Suppliers to continue.