Ivalua has announced the findings of a worldwide survey of supply chain, procurement and finance business leaders, on the status of their digital transformations, the obstacles encountered and keys to success.
The research, conducted by Forrester Consulting and commissioned by Ivalua, used a digital maturity index to assess organizations’ structure, strategy, process, measurement and technology to determine the true level of digital maturity. It found that most organizations are significantly overestimating their maturity. Only 16% of businesses had an advanced level of digital maturity in procurement, giving them a source of competitive advantage over rivals, though 65% assessed themselves as advanced.
“Procurement leaders have the opportunity to deliver a true competitive advantage for their organisations,” said David Khuat-Duy, Corporate CEO of Ivalua. “Digital transformation is critical to success, but requires a realistic assessment of current maturity, a clear vision for each stage of the journey and the right technology.”
Obstacles differ significantly based on the stage of transformation, indicating a need to assess technology based on both current needs and future ones. Early in the journey, lack of budget and executive support are primary obstacles, while more advanced organisations struggled with poor integration across their source-to-pay systems. As a result, advanced organisations were most likely (60%) to be planning to implement a full ePurchasing suite.
The study revealed that organisations frequently make poor choices with regards to technology, which impedes digital transformation. Over three-quarters (82%) switched or are considering switching technology providers. The primary reasons for switching are poor levels of supplier onboarding (30%) and poor user adoption (27%). Onboarding suppliers quickly is critical for any technology adoption, yet just 17% of organisations are able to onboard new suppliers in less than one month, with 59% taking 1-3 months per supplier.
“To ensure that technology empowers procurement transformation, rather than constrains it, leaders must consider their current and future requirements when evaluating options,” added David Khuat-Duy. “Doing so ensures a steady progression along their journey and the ability to gain an edge on competitors.”
Download the full “Executing a Successful Procurement Transformation” study.