The complexities of people and their behaviours during digital transformations of procurement systems forms the basis of a new research by Ivalua.
Based on three years of empirical evidence, surveys, interviews, and academic research, Using Behavioural Science to Drive Adoption of a Digital Procurement Platform unpacks how people behave in digital transformations.
Global spending on digital transformation is forecast to reach $2.8 trillion in 2025 – more than double the amount allocated in 2020. (IDC research)
But despite investment due to accelerate this year, a high percentage of transformation projects fail and only 30% to 50% succeed, the paper says.
To find out why, author of the paper David Loseby looks at the motivators, opportunities, and capabilities developed in a new context of the digital transformation from the perspective of adoption as a primary enabler to success and business case delivery.
David demonstrates how to apply both theories and methods from behavioural science as a means of addressing the behavioural change associated with adoption of digital transformation programmes along with significantly improving both the speed of adoption and sustained use of a digital procurement platform and/or technology.
David, MCIOB Chartered, FAPM, FCMI, FCIPS Chartered, MIoD, FRSA is Managing Director of Aquitaine Strategy Limited and previously the Group CPO for Rolls Royce plc.
He is also a doctoral researcher in Behavioural Science and a Visiting Scholar at the University of East Anglia. David is also the Editor in Chief for the Journal of Public Procurement (JoPP) and the Editor for the International Journal of Physical Distribution and Logistics Management (IJOPDLM).
“Successful adoption of digital procurement platforms are, and continue to be, fraught with challenges,” David says.
“They may often be seen by employees as a threat to their jobs and favoured working practices and processes. Furthermore, implementing a digital procurement platform is often seen as an IT or Technology programme rather than a people-centred change programme which heavily relies upon its success based on the adoption by users, approvers, super users, analysts, reporters, and interested parties. Thus, creating a perceived lack of organisational justice for those who are directly and indirectly affected.”
Hackett’s Key Issues Study highlights how digital transformation is an “essential enabler of procurement organisations’ ability to deliver new services.”
Of the enterprise priorities aligned to procurement businesses reported to Hackett, enterprise digital transformation retained top spot with 61 % of companies reporting a major initiative for the 2022 agenda.
Key takeaways from Using Behavioural Science to Drive Adoption of a Digital Procurement Platform include:
- a clear methodology and approach to drive adoption, over and above compliance
- key statistics to articulate your own business proposition
- a comprehensive set of references to support the investment of a behavioural science-led approach.
- a clear list of interventions and policies needed to make the adoption of a digital procurement platform a success.