Cost Center A department that only spends money — measured by how little it spends, not what value it creates. Like comparing two chefs solely on who bought cheaper groceries, ignoring whose food tastes better.
SEI Supplier-Enabled Innovation — the formal process for capturing new ideas, products, or cost savings through suppliers. Like having a suggestion box for your vendors, but with a budget and evaluation process attached.
Gainshare A contract mechanism where both buyer and supplier split the financial upside from an innovation — like two business partners agreeing to share profits from a new product they built together.
Stage-Gate A checkpoint process where ideas must pass defined criteria before advancing. Like a video game: you can't reach level 3 until you beat the boss at level 2. Prevents bad ideas from consuming resources.
IP Framework The upfront agreement on who owns what when two companies create something together — like a prenup for innovation. Specifies ownership, licensing rights, and exclusivity before any work begins.
TCO Total Cost of Ownership — the full lifetime cost of something, not just the purchase price. Like comparing cars by adding up the sticker price, fuel, insurance, and repairs over 5 years, not just the dealer quote.
