Change Management Content

CPO masters of complexity (Part 2): A new approach to augment talent

Deloitte's 2019 Global CPO Survey shows that many procurement leaders are finding it hard to balance a variety of competing demands for their limited resources. One common theme expressed was the challenge of how to find, recruit and retain the talent required to implement and optimize a more digitally complex and increasingly sophisticated procurement function. Many organizations are using this opportunity to challenge the traditional operating model, including the roles, responsibilities and skill sets required for this new digital world.

Demand for top talent in the global procurement space continues to outpace supply, even as the expectations from the corporations they serve continue to increase. While investment in training in both technical and softer skills appears to be rising, the CPOs surveyed felt the negative impact of a “talent drain” on their ability to keep pace with the increasing complexity of reducing costs and risks while implementing digitally-enabled procurement functions.

Not all ‘digital’ transformation is the same: 6 degrees of difficulty [PRO]

Buzzwords abound out there, and a lot of common words are used by folks without necessarily having a common understanding of the meaning. For example, take the phrase “digital procurement transformation.” Even the individual words themselves alone can have different interpretations:

* Digital — Does this mean digitization of procurement processes through workflow automation, or is it something broader?
* Procurement — Is this all of source-to-pay or just procure-to-pay? Or just everything that a procurement department does, including broader supply chain efforts?
* Transformation — Can this just be incremental, continuous improvement, or does it have to be a more discontinuous transformation program?

The problem for practitioners is how to cut through the clutter of this terminology and more easily learn from others surrounding adoption of “digital” in different ways. For example, there is certainly a lot to learn just in terms of better implementation of systems for automating good old-fashioned sourcing, requisitioning, ordering, receiving and paying.

But, there are also higher order digital capabilities that go beyond just automating the proverbial cow path. For example, advanced analytics such as bid optimization can enable new sets of sourcing processes that were not really feasible before. Similarly, techniques such as community-based procurement that use technology across firms can create new value beyond automating within a single firm.

There is actually a spectrum of digital related competencies from basic source-to-pay workflow automation all the way through to procurement-enabled disruptive value chain initiatives. So, if you have mastered some of these basic capabilities for digital transformation and procurement, it is time to raise the “degree of difficulty” and see how others are faring in terms of picking the higher hanging fruit.

In this Spend Matters PRO analysis, we will outline six levels of digital procurement sophistication, and also see how more than 400 organizations stack up based on the latest research.

Procurement Consulting Analysis: A review of KPMG’s procurement systems/technology practice [PRO]

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KPMG is a noted procurement solutions and technology consultancy, with a large, mature and experienced global practice for systems integration (SI). It has developed working relationships with a range of technology firms, including Coupa, Ivalua, SAP Ariba, Oracle and most recently GEP. It has hundreds of customer deployments under its belt.

This Spend Matters PRO analysis provides background on KPMG’s systems integration/technology practice in the procurement solutions market. It includes facts and figures, like a list of how many people at KPMG are trained to implement each tech firm’s solution. But, primarily, this PRO analysis highlights the voice and experience of KPMG’s clients. We also offer data-driven recommendations and analysis for organizations considering KPMG as a systems implementation and consulting partner.

This report is based on extensive primary research by our Spend Matters team and from our SolutionMap’s customer reference process, where real-life customers share their vendor experiences and help us rank vendors. Spend Matters surveyed a range of KPMG clients in Q2 and Q3 2019, collecting qualitative and quantitative insights from organizations that had gone through implementations, change management, transformation and related initiatives as part of procurement technology deployments. KPMG also provided facts and figures about its practice directly to Spend Matters.

Sponsored Article

A ‘Big Picture’ Procurement Mindset

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There is a considerable difference between what procurement can do with an eProcurement platform, what they should do, and what they actually do. Part of the problem is the level of technology segmentation that exists in the typical enterprise. Procurement has technology, legal has technology, sales has technology, etc. Everyone transacts with and stores their information separately. It may not be intentional, but it prevents companies from getting the full benefit of the technology they implement.

Huge strides have been made in digitizing procurement, but the work is not nearly done. Procurement needs to move into a larger business role where it is highly involved in the development and execution of enterprise-wide business strategy — and therefore enterprise-wide technology and data development.

If procurement is to think “big picture” when it comes to data and technology, it has to include suppliers as well. Corcentric has some reasons why.

The value of branding: 9 tips for procurement to create a strong brand, improve its standing

Spend Matters welcomes this guest post by Amanda Prochaska, the president of High Performance Procurement. Part 1 of this two-part guest series appeared yesterday and was written by Charlotte de Brabandt, a member of the Institute for Supply Management’s Thought Leadership Council.

For years, procurement’s role has been to reduce costs, or at least this is how it has been seen by others.

Procurement has always been a value provider, not just a cost-cutter. It is unfortunate that in the past it has been looked at so negatively, with such a narrow view. Perhaps this was because the procurement environment was heavily focused on negotiating prices. It did not focus so much on people or assets. The bottom line was always price and value.

However nowadays, most of the low hanging fruit where an easy monetary negotiation could be made is gone. And procurement is moving more toward being known as the value providers.

Part of making the transition to value providers is to change the brand of procurement. Learning from those who do this well, here are nine tips that marketers use to create a strong brand.

The value of branding: 6 ways procurement can redefine its brand, change misperceptions

Spend Matters welcomes this two-part guest series by Charlotte de Brabandt, a member of the Institute for Supply Management’s Thought Leadership Council, and by Amanda Prochaska, the president of High Performance Procurement, whose article will appear tomorrow.

Procurement professionals are not typically known for their ability to be great marketers. However, having a strong brand ensures procurement is at the very center of any business strategy. Look at any of the world's great brands and you will see that they all use their brand strength to gain attention. Strong brands are simply the key to creating value, and when this is done well, the full potential of procurement is realized.

Unfortunately, procurement’s brand has been largely left to their customers to define. These include definitions like “those are the people who negotiate contracts,” or “they buy stuff,” or “they are slow and non-responsive.”

As procurement professionals, we understand we deliver much more value than how we are being defined. So, what does it take to proactively define the value of procurement? Let's look at six tips:

Hackett finds stark differences in typical digital procurement use vs. world-class digital transformation

Digital transformation is impacting businesses all around the globe, with procurement functions in particular feeling the pressure to redefine their role within organizations. While some procurement professionals are still working to increase their percentage of spend under management and generate savings at a tactical level, the recently released World-Class Procurement: Redefining Performance in a Digital Era report from The Hackett Group highlights significant gaps between how a sample peer group of procurement departments operate and perform versus the top performing departments, or world-class procurement operations.

4 key takeaways from SynerTrade’s Paris customer panel

In Spend Matters’ last article on SynerTrade’s recent conference in Paris, we talked about how SynerTrade has heard the call of the digital procurement revolution and is readying itself for the revolution by turning its source-to-pay solution into a platform that, through an enhanced API, can easily integrate best-of-breed partner products to provide customers with the tools and intelligence that SynerTrade doesn’t have (as no single vendor can do everything, and the best know enough to not even try).

In this article, we are going to discuss the four key takeaways that the customer panel left us with:
* Measure and Track Quarterly — and React
* Don't Go Too Fast with Tech
* Start with Something Simple That Works and Delivers Value
* Progress Takes Patience

How to hire contingent workers around the globe — and stay in compliance

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The world is getting smaller every day, helped along by technologies that allow us to connect to people, activities and companies around the globe. Businesses are able to incorporate workers from anywhere, sometimes as seamlessly as if they were next door. While communicating with workers may be simpler, engaging them for work can be a complicated matter.

Many companies are adopting a flexible approach to the way they want to source, engage and manage their contingent workforces domestically in the U.S. and across the globe. However, those same companies often struggle to deal with the complicated issues surrounding worker classification, including vetting and compliance for a global contingent workforce.

To find out how companies can successfully navigate these tricky issues, we spoke with John Smith, managing director, Americas, at CXC Global.

CPOs can get the top procurement technology but not make material gains

The mantra of tech companies is that modern businesses must have high-powered procurement technology to reduce costs, automate manual tasks, save time, generate insight and allow for more strategic work. While true, the benefits are not the whole story. Chief procurement officers need to know what they are “digitally transforming” and why. The digital CPO must have a vision for how technology is going to improve procurement, why it will be good for customers and what to do next with all the data, insights and “time saved” by intelligent process automation.

Despite power of data, many organizations lag in making it key to their decision-making culture, a Deloitte survey finds

In today’s hyper-connected, data-driven business world, the amount of available data is overwhelming. And while the concept of “big data” has been around for more than a decade, many companies are still lagging when it comes to using that data to make decisions. Insight-driven organizations (IDO), according to a recent Deloitte survey, are those that have made a transition to relying on data and analytics, instead of intuition, to make many of their business decisions. Technologies, led by artificial intelligence (AI), have the ability to support these insight-based decisions, giving companies a competitive advantage when they integrate them.

Coupa’s 3 Special Forces Teams (Part 3: Value Engineering + Customer Success) [PRO]

In the final installment in our series covering Coupa’s 3 Special Forces teams (see Part 1: Corporate Development and Part 2: Alliances + Business Development), we cheat a bit from a series title perspective. And that’s because Coupa’s final special forces team essentially represent two functions in one (although they are in fact different groups): value engineering (sometimes called “value optimization”) and customer success.

Our analysis today begins by defining what value engineering and customer success functions do (and not do) for enterprise software/Saas/cloud companies. Then we provide the details behind Coupa’s programs. And finally we explore how Coupa leverages these two areas in ways that disproportionately benefit its broader operations in business spend management (BSM).

Jason Busch serves as Managing Director of Spend Matters Nexus, a membership, research and advisory organization serving technology acquirers (private equity, corporate development, etc.) and CEOs. The views expressed in this research brief are his and do not necessarily reflect that of the Spend Matters analyst team. But he would like to thank his colleague Pierre Mitchell for his review and input on this piece, given his deep experience in this area. Research note: This brief is based on extensive primary research. Beyond already available public information, no data or insights were provided by Coupa. However, a fact-check was provided to Coupa for informational purposes to ensure accuracy.