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Procurement's Innovation Sandbox: How Digital Garages Deliver Value

Procurement's Innovation Sandbox: How Digital Garages Deliver Value

 

“The world as we know it in procurement and tech will change beyond recognition over the next couple of years.” - Adam Brown

Procurement leaders are operating in a period of ongoing acceleration. The number of digital solutions seems to be in non-stop expansion, AI capabilities are evolving quickly, and expectations from the business are shifting right alongside all of this.

But what makes this moment particularly challenging is not just the pace of change, but the number of choices that come with it.

In this conversation with Adam Brown, we discuss what all this means for procurement in practical terms. Adam brings a perspective shaped by both enterprise transformation and close engagement with emerging technology providers. Our discussion focuses on how procurement leaders can navigate this unstable environment with intention, without losing sight of risk, value, and long-term impact.

The Rapid Evolution of the ProcureTech Landscape

The pace of change is creating pressure, but it is also creating possibility. For procurement leaders, this requires them to change how they evaluate technology. For example, traditional sourcing cycles and linear decision-making processes struggle to keep up with exponential change. Now, teams need to become more deliberate in how they scan the market, test solutions, and build internal understanding.

As Adam said, “If you reach a certain degree of maturity on a digital solution, what next? How do you become more appealing to the wider market? Well, do more.”

This observation gets at a broader trend across the procuretech landscape. As solutions mature, they expand into adjacent areas, often combining capabilities that were previously delivered by separate tools. This creates both opportunity and complexity for procurement teams.

On one hand, more integrated solutions can simplify the technology stack and reduce fragmentation. On the other, it requires more careful evaluation of where true differentiation lies. Leaders now have to consider how solutions fit together, where overlap may exist, and whether to consolidate, extend, or build capabilities internally.

Balancing Innovation and Risk with Startups

The role of startups in procurement innovation is well established. Many of the most forward-looking ideas originate from smaller, more agile companies. At the same time, when a large enterprise becomes a significant portion of a startup’s revenue, the relationship introduces risk. And this risk can extend beyond financial to things like product stability, support capacity, and long-term viability.

“It can be a big ask if you're going to work with a very small company or a new startup...we could be entirely 80, 90% or more of their revenue, which presents in itself a risk” as he pointed out.

What I found particularly relevant is the need for a more nuanced approach to engaging with startups. Rather than viewing innovation and risk as opposing forces, leaders need structured ways to explore new solutions while maintaining appropriate safeguards. Enter the digital garage, something Adam knows a lot about.

The digital garage model introduces a structured way to bring innovation and practicality together. What makes it effective is the emphasis on mutual value. Startups gain access to real-world feedback, while procurement teams gain early exposure to emerging capabilities in a controlled setting.

“The digital garage concept was to enable smaller, innovative companies to be able to showcase what they've done...but have that give back from 10, 20, 50, or even 100 procurement professionals who can also say, ‘well, this is the real world’ and help in both directions,” he said.

This approach addresses a gap that many organizations struggle with. Traditional procurement processes are not designed for experimentation. They are designed for selection and compliance. The digital garage creates a parallel path where learning and co-development can take place without the constraints of a formal sourcing event.

AI as a Platform Shift, Not Just a Tool

AI is often discussed in the context of specific use cases or tools. The implications extend beyond individual processes and into how work is structured, how decisions are made, and how teams operate. For procurement leaders, this raises important questions about capability building. Technology alone does not deliver transformation. Teams need to understand how to apply it, where it adds value, and how it changes existing workflows.

“AI is the superpower that's going to enable us to be more productive, more coherent, more of everything that we want to do. So that single thing will change everything. It's not a digital garage restriction. It's everything that you do,” Adam said. “Don't wait. Even, 90 days is too long. This week, do it now because it is moving at such a pace that you will end up so far behind so quickly. Start now, start small, start simple.”

What I find most practical about Adam’s advice on AI in procurement is the emphasis on starting with manageable steps. Small experiments, limited pilots, and focused learning efforts create a foundation that can be built upon. At the same time, there is an underlying urgency. The pace of change means that waiting for perfect clarity is rarely a viable option. Leaders who take early, informed action are better positioned to adapt as the landscape continues to evolve.

The broader takeaway from this discussion is that procurement’s approach to innovation needs to evolve alongside the technology itself. This includes how teams evaluate solutions, how they engage with suppliers, and how they build internal capability. There is no single model that will apply in every organization. However, the combination of structured experimentation, thoughtful risk management, and continuous learning provides a practical way forward.

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