Author: Alan Paul, CEO, Sourceit
In workplaces that have less structure and much greater independence, where we can bring our own technology to work and use it to innovate, what does the future hold for procurement?
Disruption has become something of a buzzword lately. With brands like Uber, Airbnb, Airly and Tesla making headlines in Silicon Valley it’s very easy to get swept up in the momentum; where is technology taking us and how can it lead us to better outcomes?
Is technology fear making you freeze?
After speaking at a Young Innovators conference in Denver Colorado recently, I met with delegates afterwards to discuss their technology challenges.
Our conversation revealed that whilst technology was viewed as a great enabler and business simplifier, they were fearful of the cost and effort required for implementation – so fearful, that many had resisted changing existing legacy technology even when they knew it was bad for business.
It reminded me of Kodak, a story so powerful in reminding us how an inability of a company to act due to fear of change, risk aversion and desire to protect the status quo killed a global business.
When it comes to legacy software, perception might be that it’s better the devil you know. But we have reached a new era of the digitally connected individual, one who values instant access to information. The digitisation and connections of our personal environment is leading to the same changes within the workplace, allowing buyers to become more productive and engaged in the buying process.
Procurement teams have successfully become more integrated into businesses through a combination of people and technology and have delivered strong savings and operational improvements, but where are the future incremental improvements going to come from?
Reinventing the rules with the cloud
It’s becoming very clear that cloud-based applications are and have re-invented all the rules.
Cloud based applications are driving a fundamental shift that will transform many aspects of procurement and strategic sourcing.
Procurement teams are beginning to understand the benefits new technologies can bring to an organisation, even when it means that buyers are working with, and bringing software and applications of their own choice into the workplace.
Traditionally we have focused only on the team, today we are witnessing the rise of the individual within a team. A future where procurement individuals are connected to the organisations approved suppliers but continue to use their own technology to improve those interactions and connections. This is allowing them to find and deliver incremental improvements businesses are demanding.
The trend is right in front of us, our work environments have transitioned from structured workplaces to become open and community based; the same is occurring with our technology decisions. We still come to the office each day but work in an environment that has less structure, more innovation, flexibility and freedom.
Bring your technology to work day
Today you can bring your own technology into the office, use it to drive innovation, supplier connections and collaboration and then connect to the business mainframe to download and upload data.
The future will see more individuals challenging existing processes and demanding better connected applications that are just as fluid and flexible in business as they experience in their personal lives.
Our future procurement leaders will look for solutions that simplify key processes, are easy to implement and use and gather the key data that can be utilised to improve decision making.
Finally, I recently came across the following quote from a CPO in an Accenture article, “it’s gotten to the point now where technology is evolving faster than my mind is conceptually able to digest it”.
Welcome to the world of you, the procurement individual!
Alan is a thought leader and CEO of sourceit, a technology company that has led the market in the development of simple and easy to use sourcing applications for a wide of direct and indirect categories.
Sourceit offers three different products for buyers:
- RFQ – request for quote software for products and services
- Market – a specialized procurement and job management application for marketing services, and
- Catalog – an inventory management and on-demand product/services ordering application.