Sixty-seven percent of chief procurement officers think transforming their organization is a priority, reveals an Accenture survey. Yet 70% acknowledge that legacy technologies and processes are formidable barriers that trap value. How can organizations close the gap between their appetite for change and their ability to make it happen?
Digital on the outside—and inside
This is where digital comes in. Considering how digital continues to upend markets, industries and consumer expectations, this is no surprise. But digital can be a double-edged sword that brings businesses great promise and peril too. One of the biggest opportunities is to take a page from digital dynamo companies and make bold changes outside and inside the organization, especially within procurement.
Time to do things differently
Procurement organizations with intelligent operations are more likely to succeed. Combining uniquely human skills and applied intelligence, they unlock data to create new value for Procurement, stakeholders and the business as a whole. Here’s what makes them different:
1. Emphasis on experience
There’s an ease and elegance to the “procurement” experiences in our daily lives. The more people click, tap or swipe to make a purchase at home, the more they want the same experiences at work. Internal customers expect better and easier buying experiences.
Procurement leaders feel the pressure here—half say keeping pace with user experience expectations is the most challenging aspect of engaging stakeholders. While the explosion of digital makes it easy to double-down on the digital tools themselves to drive change, next-generation procurement never loses sight of the heightened importance to improve the “human” experiences.
2. Information over process
Compelling human and digital experiences are born from rich data and information, not from legacy processes. But shifting from a process-driven to a data-driven organization is no easy task. After all, compliance and box-checking are part of Procurement’s genetic code.
The good news is that there is an exciting evolution at play. Three of the top five business drivers that procurement leaders see impacting the business—real-time data access, data-driven decisions, and micro-targeting—depend on data. Organizations with intelligent operations will transform this awareness into clear data strategies and investments in data curation.
3. Powered by digitalData alone is not a silver bullet. Procurement organizations with intelligent operations do more to maximize its value. They apply the Triple A Trifecta—automation, analytics and artificial intelligence—to data to improve business processes and drive faster, more intelligent decisions.
Experience-focused. Insight-led. Digitally-driven.
Next-generation procurement moves beyond how things have always been done. Organizations that embrace these shifts as well as lean into the ecosystem and secure C-suite support are ready for meaningful change powered by intelligent operations.
What's preventing your progress to operating the next generation of procurement?