Investment in procurement technologies skews heavily toward foundational technologies easing core work, research from Gartner has revealed.
Research shows investment in technologies for spend analysis and procure to pay were the two most prominent (69%) when it comes to being implemented or already implemented.
More than half of respondents said e-sourcing and contract lifecycle management were also being implemented or already in place.
Seven in 10 boards of directors have accelerated their digital business initiatives in the wake of COVID-19 disruption.
Jeremy Suter, Senior Principal advisory at Gartner, will reveal the advancements in procurement technologies and adoption of next-generation applications at PASA’s ProcureTECH virtual event May 11 and 12 2022.
With a rapidly evolving technology landscape, procurement functions must ensure they are taking advantage of the options available to them and seize the opportunity while it lasts.
At ProcureTECH 2022 Jeremy will cover:
- the changing procurement technology landscape
- where procurement functions are investing
- what’s next once core technologies have been implemented.
Adoption of the right technologies has long been recognised as one of the three key pillars for building procurement capability – the others being ‘people’ and ‘process’.
Gartner’s ‘Peer Insights on Procurement Technology Investments’ found there are three key obstacles procurement leaders face as they implement core technologies:
- Change management not always effective in getting end users to adopt technologies in the right way.
- Staff still tend to have an overriding mindset that procurement best delivers value through human intervention.
- Vendors present technologies as seamless, but in reality it’s more complex to tie solutions together across organisational silos.
Procurement functions appear less focused on investments in advanced next-generation technologies, according to the research.
Current levels of implementation for next-generation procurement technologies, pit robotic automation technologies as the most prominent.
Almost a quarter of procurement leaders surveyed said automation technologies were already, or being implemented, in their organisation.
More than half of respondents claim artificial intelligence, advanced sourcing optimisation and advanced contract analytics were not currently being pursued.
Why procurement functions are less focused on advanced technology investment
- Functions are still working on extracting the full value from core foundational technologies they have now.
- Need clean, high-quality foundational data first in order for more advanced technologies to work efficiently.
- Staff need the skills to interpret data, spot trends and opportunities, link together data to form insights, otherwise the benefits will go unrealized.
Procurement’s perception as a lower priority than other corporate functions for technology investments is the top challenge to securing new technologies, Gartner found.
Almost three quarters (71%) of respondents say procurement technology investments are a low priority when setting the company’s IT budget. Download the research.
Explore procurement technologies in full
The 2022 ProcureTECH programme will address key challenges procurement teams are facing when making the business case, selecting and implementing the right technology solutions.
By attending ProcureTECH procurement professionals will not only have the chance to explore what new technologies and innovations are now available, and what they can do.
The event programme will cover key topics on eProcurement project managers’ agendas. Speaker organisations include Spend Matters (direct from the US), Gartner, Deloitte, KPMG, ArcBlue, the Australian Tax Office (ATO) and more.