The Digital Shift: Why Procurement Needs a Survival Guide

Procurement has come a long way from its back-office days. Now, it's a core driver of value, efficiency and innovation. But as exciting as that is, the digital shift isn't always smooth.

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Here's the truth: digital transformation is powerful because it changes everything. It's not just about automating tasks or cutting costs. It's about reimagining how procurement works and aligns with your organization's goals. Done right, it can unlock incredible value, as highlighted in recent reports and research from Deloitte and The Hackett Group:

• Procurement ROI can increase by 2.5 times compared to peers.
• Digital leaders manage 21% more spend, cut costs faster and reduce maverick spend by nearly 60%.
• Operating costs drop by 21%, freeing up resources for higher-value activities.

Sounds great, right? But here's the catch: it's not easy. Only 35% of organizations achieve their digital transformation goals (source: BCG).?

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Why? Some of the root causes are:

• Resistance to change.
• Misaligned priorities.
• Lack of 'meaning' (the 'why').

And that's just the tip of the iceberg! But don't worry, to help you address the complexities of digital transformation, we are launching a series called“A procurement transformation survival guide for practitioners: How to embrace digital without getting lost on the way?"

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Here's what you'll find in our upcoming content:

• Setting the stage: what digital transformation is and what it means for procurement; how to recognize the need; what are the unique barriers, pitfalls and lessons from failed initiatives.
• Building the foundation: where to start; how to build a digital roadmap; the critical role of data; identifying quick and long-term wins; how to make the case for digital.
• Driving organizational adoption: how to identify and engage key stakeholders, build coalitions to support the transformation journey; the psychological aspects of change, addressing resistance and building a culture of adaptability; aligning goals across teams.
• Designing and implementing the transformation: addressing the gaps (people, process, technology); designing the organization; rollout options and strategies; skills allocation.?
• Making technology work for you: how to select the right technology; navigating the vendor landscape; avoiding the pitfalls in tech selection; how to build a flexible, scalable tech stack.
• Measuring and sustaining success: defining success metrics and tracking ROI; adapting to emerging technologies and future trends.

It's?a survival guide?built for the realities of procurement.

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Be on the lookout for the first articles in this series!

— Bertrand Maltaverne, Lead Analyst of Upstream Procurement