Danske Bank is using a system of workshops involving procurement, suppliers and consultants to solve business problems.
Bo Dungal, head of procurement innovation at Danske Bank, said they were “leveraging the brain power of our third party providers” by inviting them to tackle “pain points” in the organisation.
Speaking at ProcureCon Indirect in Copenhagen, Dungal said they invited competitors and firms from the start-up community to the events but it was critical to clearly define the problem and set success criteria.
“We bring our partners in,” he said. “‘We would like you to help us come up with a solution to this pain point’.
“As long as you define the problem you want to solve – what are the goals, the success criteria – our partners, through co-creation, design thinking – they will in a day, in a week, for free, create a MVP [minimum viable product] or prototype and we will get tomorrow’s best.”
Dungal said they had carried out workshops to solve problems with advanced analytics, their travel app and debt collection. “They fundamentally rethought the way debt collection should be handled,” he said.
Dungal said 23 such events had taken place since the programme was started one-and-a-half years ago. “It’s learning by burning,” he said. “Only one hasn’t been a success.
“We have 120 corporations waiting to do it, and they’re going to do it for free.
“When I ask, ‘Why do you want to do it for free?’ they say, ‘This is the best way to get to know Danske Bank’.”
Dungal said the rest of the business had taken some time to get on board with the workshops. “When we started this in the bank there was a huge corporate immune system,” he said.
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