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Next Generation Digital Procurement | Accenture

The digital revolution is coming to procurement. While many businesses have embraced eProcurement systems and cloud-based tools, digital procurement demands more than that. Is your business ready? Learn three considerations before you move forward.

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Next Generation Digital Procurement | Accenture

  1. 1. It’s time to upgrade your thinking. NEXT GENERATION DIGITAL PROCUREMENT
  2. 2. Next Generation Digital Procurement Will Change Everything The digital revolution is coming to procurement. Will you be ready? 3.0 Operate and interact with information outside your own data ecosystem 2.0 Recording why decisions are made in the procurement process 1.0 Recording data and transactions through use of eProcurement technologies
  3. 3. Procurement is expected to help stakeholders in the business make the best purchasing decisions and deliver optimal value. The procurement problem is not new… But current policies and tools are geared toward driving a process rather than an experience or outcome. For stakeholders, it’s an obstacle to be avoided rather than a useful tool. SMOOTH EXPERIENCE SOLID PROCESS OUTCOME DRIVE Robust process end-to-end Resistance free purchasing =+
  4. 4. True, companies have enthusiastically embraced eProcurement systems and even cloud-based procurement tools. But these simply replicate the same tedious procurement processes with new software rather than upgrading the purchasing experience. …but the future creates a new solution
  5. 5. Digital procurement enables the “Amazon-like” experience employees now want in the workplace—but currently aren’t getting. Better Experiences Better Control Making procurement more attractive to stakeholders is critical to increasing the procurement organization’s influence over the half of the company’s spend it doesn’t control—and increasing the effectiveness of how that spend is managed.
  6. 6. By streamlining and simplifying how people make and execute buying decisions, digital procurement encourages stakeholders to ‘embrace the process’ instead of circumventing it. Users simply see valuable information presented that they can act on. Compliance and controls are embedded in the model instead of being visible obstacles to be overcome. Data-Driven Procurement Truly digital procurement is defined not by a rigorous process but by putting deep and rich data at the fingertips of stakeholders.
  7. 7. A true digital procurement organization automates repeatable tasks to boost efficiency and potentially drive down costs. OUTCOME DRIVEN It equips stakeholders across the business with real-time access to insights and analytics through Artificial Intelligence (AI) and easy-to-use online tools. EMPOWERS STAKEHOLDERS It deploys new and smarter ways to infuse data models to enrich day-to-day operations and decision making. INTELLIGENT DECISIONS And it transforms how buyers interact with suppliers and other third parties by serving as a platform for new levels and types of collaboration. MEANINGFUL INTERACTIONS Benefits of Next Gen Procurement
  8. 8. Five Key Factors for Success MORE DATA Data sourced from outside, as well as inside, the organization to inform not just ‘what’ has been purchased, but ‘why’ it was purchased. TECHNOLOGY TOOLBOX To make sense of data, and provide advanced intelligent support, you need to combine the right technology— especially AI, natural language processing, analytics and bots. INTUITIVE USER EXPERIENCE Intuitive user experiences will encourage stakeholders to actually use the online procurement tools. SKILLS & TALENT Generating true value requires a cross-functional team of people from Data Scientists and AI experts, category experts and design professionals. POLICIES & PROCEDURES To ensure everyone understands their new responsibilities, a review of policies and procedures is needed along with an updated operating model.
  9. 9. IT TAKES TIME It typically takes three to five years to collect the relevant data, develop the necessary systems and processes, and build the underpinning analytics and AI. That’s why it’s critical for companies to begin moving today. IT TAKES MONEY Building a digital procurement organization also requires a big investment. Fortunately, digital procurement capabilities are increasingly available as-a-service, which could eliminate the upfront investment to build them, and also dramatically accelerate the transformation. IT TAKES VISION Although the benefits of digital procurement can be substantial, it’s a big departure from how procurement has traditionally operated. That’s why companies should to consider a partner to help them define what the future procurement organization will look like for them Three Considerations for Moving Forward
  10. 10. The reality is, every industry today faces its own individual challenges. And as part of their response, companies should think hard about what they need from their procurement organization. That’s something Accenture has been focusing on as we work with companies around the world to define, and prepare for the next generation of procurement. Find out more by visiting: www.accenture.com/digitalprocurement The Next Steps