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Technology assessment in purchasing: definition & important aspects for buyers
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Technology assessment in a nutshell:
Technology evaluation is a systematic process for analyzing and assessing technical solutions in terms of their performance, future viability and economic potential. For purchasing, this provides a sound basis for decision-making when selecting suppliers and products as well as the early identification of technological risks and opportunities.
Example: An automotive supplier carries out a 3-month technology evaluation for new battery systems, comparing 5 different suppliers on the basis of 20 defined criteria and thereby identifying an innovative supplier that offers 30% higher energy density at 15% lower costs.
Contents
What is technology assessment in purchasing?
Technology assessment in procurement refers to the systematic process of identifying, analyzing and evaluating new and existing technologies in terms of their potential for the company. The aim is to make well-founded decisions on the integration of technologies into procurement strategies. This includes assessing the degree of innovation, benefits, risks and costs in order to remain competitive and increase efficiency in the supply chain.
Core elements of technology assessment
Significance for purchasing
Technology evaluation is essential for procurement in order to remain competitive in the long term and to optimize processes. By identifying relevant technologies at an early stage, procurement strategies can be made more innovative and costs can be reduced. It also makes it possible to select suppliers with advanced technologies and build strategic partnerships.
Technology assessment in procurement: from manual analysis to data-driven decision-making
Technology assessment in purchasing is essential to ensure a company's competitiveness and innovative strength. While conventional methods were often based on manual processes and subjective assessments, the increasing complexity of the market requires more efficient approaches. The digital transformation and the need for fast, well-founded decisions make it necessary to realign evaluation processes.
Old: Manual technology assessment
Traditional approach: In the traditional technology assessment, information was mainly collected and evaluated manually. Supplier selectors held detailed discussions with suppliers, visited trade fairs and analyzed technical data sheets. Decisions were often based on personal experience and simple calculations in spreadsheets. This approach was time-consuming and offered little standardization. In addition, the results were characterized by subjective assessments, which led to inconsistent decisions. The lack of integration of market analysis and long-term trend analyses made it difficult to recognize technological developments at an early stage and react strategically.
New: Data-Driven Decision Making
Data-driven decision making: Modern technology assessment in procurement uses data-driven approaches to decision-making. By using specialized software solutions and AI technologies, large amounts of data from different sources are aggregated and analyzed. Real-time market data, life cycle cost analyses and risk analyses are incorporated into comprehensive models. Predictive analytics enables predictions to be made about technological trends and their potential impact on the company. This approach enables an objective, transparent and efficient evaluation, reduces risks and supports strategic investment decisions. The integration of such tools into existing ERP systems also optimizes processes and promotes collaboration between departments.
Practical example: Introduction of a data-based evaluation system at a mechanical engineering company
A leading mechanical engineering company was faced with the challenge of efficiently evaluating the large number of available technologies. By implementing a data-based evaluation system, the company was able to reduce the analysis time per technology by 50%. Over 2,000 technology options were evaluated in terms of costs, benefits and risks. AI-supported algorithms were used to identify the most promising technologies, which led to an increase in innovation management by 35%. In addition, savings of over 15 million euros were realized through optimized investment decisions. The increased transparency and standardization of the process promoted cross-divisional collaboration and strengthened the company's competitive position.
Conclusion on technology assessment in purchasing
Technology assessment in purchasing is an indispensable tool for future-oriented companies. It not only enables the systematic analysis and integration of new technologies, but also secures long-term competitive advantages. Success depends to a large extent on structured evaluation processes, cross-functional cooperation and the continuous development of expertise. Companies that use technology assessment strategically and integrate it into their purchasing processes are ideally equipped for future challenges and technological developments.
