Business Model Canvas Procurement Tools for NZ SMEs

Earlier, we discussed that we plan to develop unique procurement tools for SMEs. These will help businesses (1-49 fte) to improve their sustainable & innovation procurement. Entrepreneurs, business owners, consultants, and students alike often use the Business Model Canvas from Osterwalder & Pigneur. (Below, & their Strategyzer website).

 This BMC model helps SMEs to define or improve their value proposition (orange) towards customers. The BMC also helps SMEs to organise their key activities, key resources, and key partners (green) that are needed to realise the #value_proposition.

The business model is a good system approach on a company level but does hardly consider that companies work in a value chain (Porter, 1995), which we would now call an entrepreneurial ecosystem (e.g. Acs ea. 2017). In such ecosystems, numerous SMEs with their B2B buyer-seller relations will add value to the product or services we may buy as end-customers. (Blue arrows).

Approximately 20,000 academic articles discuss several aspects on the BMC. However as mentioned in our 1st blog, we have been unable to find relevant articles on how sustainable or innovative supplier offerings from #key_partners (critical or key suppliers) can help SMEs to improve their value proposition. Similarly, most entrepreneurial blogs or websites do discuss some procurement cost-savings or 101 on procurement. However, we found little validated online material on strategic partnering with suppliers, or how to create value with suppliers. Hence, we develop two types of procurement tools related to the #BMC.

SMEs are important in many economies, and good procurement in SMEs has huge leverage effects. After all, 30 to 60% of economic value and sustainable impact are not created in SMEs but in their supply chains*. All SMEs in NZ combined buy 90 to 130 billion NZD of goods & services. This is a huge sum, and our procurement tools can help SMEs on their #bottom_lines: realise cost-savings, improve supplier performance, reduce supply chain risks. And especially on their #top_lines: realise innovative and sustainable products and services for their customers. And of course realise good outcomes for other stakeholders!

When SMEs use these tools, they also optimise their ‘normal’ procurement. Tools will be easy-to-use, web-based and interactive. Think about a green supplier pain-gain model, or a set of supplier innovation best-practices for newbies or for more experienced entrepreneurs. We will co-create such tools with interest groups for general usage, and for specific purposes. Such as with Māori SMEs, with SMEs who want to reduce their CO2 emissions with suppliers, or with SMEs who want to import from overseas suppliers.

We plan to run the project from October 2021 to October 2024. It is a collaboration between Dr Barbara Allen (Victoria University, NZ), Professor Margreet Boersma (Hanze University, NL), associate Professor Nic Naismith & Dr Anne Staal (both AUT, NZ). Experts from Grant Thornton play an important role in testing the new tools with industry partners and interest groups.

More info to follow!

Please contact us if you want more info or want to participate in this research! Contact: Dr Anne Staal, Auckland University of Technology ([email protected]).

* Check McKinsey, 2020, Exhibit 3; Johnsen, 2019, page 3.