Optimising financial processes

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Something to Consider: Digital Transformation is Helping Procurement Do More With Less

Something to Consider October 2019 3

Digital Transformation and Procurement

Digital Transformation is making it easier for procurement to do more with less according to the latest Hackett Group’s research. But the research also shows a lack of focus on the top 5 priorities for 2019: improving analytical capabilities, aligning skills and talent with business needs, leveraging supplier relationships, enhancing agility, and achieving true customer-centricity.
So let’s start with what is going well! 30-40% respondents said digital transformation has had a high impact on enhancing performance and optimizing the service delivery model and this is only expected to increase.
RPA sees the highest adoption growth rate among digital technologies. There are a range of other procurement areas that can benefit from automation of repetitive work so this is set to increase.
However, the research found that procurement’s actual transformation focus for 2019 is poorly aligned with its actual priorities. Less than 1/3 of all procurement organizations have a major initiative in place to improve skills and talent with business needs, and even fewer said they intend to focus on improving customer-centricity and supplier relationship management capabilities.

Failing to address the five critical development areas poses a significant risk. You need the right people, with the right skills in place, to take full advantage of what digital transformation can offer. Equally agility is critical if procurement is to be able to respond to market changes.

You can find a summary as well as the full research survey and results here
Our ‘Something To Consider’ snippets are framed as small, digestible, ‘dashes of insight’ around the pillars of what we define as “World Class Finance” – Process Optimization, Financial Control and Compliance, and Risk Assurance, all underpinned by technology enablement and integration.