Innovation has to do with uncertainty. Especially in health, uncertainty originates from complex problems with multiple interdependent layers and difficult to discern causalities. Emerging digital health technologies require different approach for successful implementation. Iterating solutions with idea-driven methods (i.e. business model canvas, lean start-up and design thinking) rarely (5% of the time) render a successful solution. This is especially true for SMEs, with innovation procurement lacking professional approach and process in defining the problem that closes the gap to successful implementation. In survey by BCG, corporations pinpointed the largest challenge for CEOs of the 600 most innovative companies is idea selection. Consequently, research suggests C-suite, procurement and innovation managers, lack tools to describe the need and create strategic understanding of root causes. Unique progressive mental models and tools are needed for exclusive decision frameworks to emerge to explore uncertainty systematically. Public procurement accounts for about 14% GDP in EU and offers an enormous potential market for innovative solutions. 1 in 20 EU companies were involved in public procurement of innovative solutions since 2011 (Innovation-Procurement.org) but only 5% succeed. 50-80% fail due to insufficient problem definition. Healthcare sector has traditionally struggled to consistently identify and adopt digital innovations, with high failures such UK NHS or Swedish Programme for IT.
The pedagogical model is learning-by-doing to design, create & validate a framework for problem definition. Public sector decision makers, strategists and contracting officers are trained in design of demand-based procurement, quality assurance and best practice of emergent digital technologies by learning how to:
1. FRAME: analyse problem drivers & system mechanisms to explore root causes/capture stakeholder incentives to change or resist change.
2. DESIGN: appraise the risks inherent with digital procurement/synthesize & design demand-based procurement
3. PROBLEM-SOLVING: construct problem decision framework and solutions horizon. Impact of knowledge gained will be demonstrated by the internal changes made within NHS to current processes & systems.
This course outlines system-design view, tools and methodologies for innovation procurement and adoption for decision makers, strategist and contracting officers in the public sector. We will teach how novel or “great” value propositions RfP and strategies come from defining problems, iterating theories and understanding systems. Innovation procurement is not a specific method or procurement procedure, but a formalised way of promoting development in and through public procurement. Innovation procurement can use broad range of methods and procedures. UP-rAIHSe is about teaching how to improve purchasing innovative goods and contracting of services not available on the market.