In Business Relationships, It’s All About H2H (Human to Human)

Simona Pop shares her Big Idea on why procurement technology needs to promote – not obstruct – trust, transparency and common goals.

Register as an online delegate for the London Big Ideas Summit 2017 here.

We know that many organisations are still mired in decades-old procurement processes. Besides the inherent inefficiency of paper-based workflows, spreadsheets and other manual tools, the real concern lies in their opacity.

One of the things I’ve learned working with various businesses and multiple stakeholders within supply chain and finance is that there is no real B2C/B2B divide. It’s all H2H: human to human. The concept was coined by Bryan Kramer and is the real foundation for every single business relationship we cultivate, internal or external.

Now, human beings are complex creatures, but for all their complexity, they greatly appreciate simplicity. Finding, understanding and communicating the complex in its most simplistic form is the recipe for success when it comes to relationships.

And a more recent way of translating the very complex into simple formats is technology. For many however, the subject of technology is a double-edged sword to be approached with extreme caution. It is seen as both a huge challenge and an opportunity depending on the maturity of the business and its stakeholders. Zooming in on procurement departments in particular, distinct feelings of inertia and unease prevail when it comes to tech.

So many procurement professionals I have sat down with continue to apply traditional tools to the purchase-to-pay process even though better, more efficient alternatives are available to them. The reasons? That mighty focus on cost savings is undermining the VOI (value on investment) and the temptation to keep things as they are because “if it’s not broke, don’t fix it or risk it” is holding organisations in a “vintage” status quo that’s affecting their competitive edge on a daily basis.

The current climate is very much a head in the sand affair. Procurement processes that have been around for the past 10, 20, 30 years are characterised by a great degree of opacity. The reason for this is the historic dependence on paper, manual work and fragmented software systems. This opacity means the relationships between departments/stakeholders within a business are not exactly what you would call fully functional. There was a time when things had to be this way because that was the best there was. That is no longer the case and pretending nothing has changed is far more dangerous than “risking” change.

Always reacting to situations as opposed to being proactive towards challenges is a symptom of traditional process that needs upgrading. The ability to stimulate internal collaboration and valuable relationships is affected by the permanent race against time. There isn’t one finance professional I’ve met who isn’t completely incapacitated by “month end” as a result of delayed purchase approvals or lack of a PO system. Incomplete or delayed information passing between departments opens the door to fraud and perpetuates false data. These draining complexities can be simplified by shining a light on proceedings. That light? Technology.

Technology is an agent of empowerment, not a antagonistic nuisance that must be adopted just because everyone else is doing it, with no real merit of itself. The key advantages technology brings are speed and transparency. Moving the information processed from paper/desktop to cloud/mobile and delivering it in real time as opposed to post-fact is all about simplicity. Eliminating the need for 100 spreadsheets, lengthy manual approval chains and data entry clerks will empower people from the bottom up, the top down and across the board. Accessing objective information and using it in real time will ensure each task is performed to the best standard and in full compliance.

A move towards value-based relationships is already happening as businesses are acknowledging that well-functioning relations are worth as much as good prices or good bonuses. Trust, common values and clear, real-time communication are all hallmarks of good service. Something every business needs to achieve to stay competitive, right?

In conclusion, using technology to empower the talented people across the P2P process is the key to better relationships and ultimately, better business. Accessing data in real time and performing tasks on the go will not only make people better practitioners but better collaborators too. The human-to-human foundation of successful business is based on trust, transparency and common goals. Given the goal of procurement is to make a business successful, promoting trust, efficiency and transparency should be a natural move.

This article was first published on Spend Matters.

Stay tuned for more Big Ideas from Simona Pop as we lead up to the Big Ideas Summit 2017!

Join the conversation and register as a digital delegate for Big Ideas 2017 now!

Resistance Is Futile, Disruption Is Coming!

Massive changes are coming to procurement pros, whether they like it or not! Is it high time we started embracing, instead of resisting, them?

Mark Stevenson is one man who understands the key trends heading our way. An expert on global trends and innovation, he will be setting the scene with our opening keynote at the Big Ideas Summit 2017 in London.  We caught up with Mark ahead of the event to get to know him a little better!

Tell us a bit about yourself?

I’m an entrepreneur, an author, an occasional comedy writer, a musician, and, as some people like to define me, a futurologist, but I’m not at all keen on that particular term.

What don’t you like about the term Futurologist?

I think it’s a fairly dodgy profession overall if I’m honest. There are no qualifications required and it’s often associated with prediction and, of course, you can’t really predict the future, you can only make it. Also people who identify themselves as future-experts are as apt to be shaped by the culture in which they are embedded or dogged by their own prejudices and wish-lists as the rest of us, and tend to predict accordingly. For instance many futurologists are overly tech focused. My work is more about the questions the future asks us about the interplay of technology, economics, society and politics. My job is to help people and organisations to ask the right questions about the future and then convince them to answer those questions in a way that makes the world more sustainable, humane, compassionate and just.

 What are the key challenges procurement and supply chains face in the next decade?

Supply chain issues are hugely important at the moment and supply chain professionals are having a lot of questions asked of them.

The first challenge to overcome is achieving greater supply chain transparency. Plenty of procurement professionals, particularly in larger organisations, have no clue where they are actually buying from. When the Rana Plaza building in Bangladesh collapsed in 2013 killing over 1,000 factory workers, many high-street brands were called out and, it materialised, ignorant of their involvement. Tragedies like this have forced high street companies to better audit their supply chains but there’s still a long way to go.

Secondly, organisations need to make their supply chains more sustainable by adopting science-based targets – addressing agricultural sustainability and reducing carbon emissions to give a couple of examples.

You’ve often advocated science-based targets in the past. Could you explain the concept in more detail? How could procurement apply these targets?

Science-based targets are a really simple idea and a very good way to think about sustainability. When it comes to dealing with environmental sustainability companies tend to say ‘this is what we can do, this is what we’re aiming for’ but, in reality, it doesn’t mean a whole lot when a multinational organisation vows to reduce its carbon emissions by 10% by the year 2034! That’s a recipe for planetary disaster.

Instead, organisations must figure out what they have to do based on scientific facts. The Science Based Targets campaign (a partnership between

Carbon Disclosuse Project, UN Global Compact, World Resources Institute and WWF) helps companies determine how much they must cut emissions to prevent the worst impacts of climate change. Coca- Cola, Walmart and HP signed up to this and if they can do it, anyone can.

And, by saving the world you’re also saving your business. Companies who take this stuff seriously will out-perform because they’ll become more efficient and they’ll attract the most forward-thinking, young talent who want to work for companies of which they are unashamed.

In your experience, how open are organisations to new technology trends?

Not very! Organisations tend to be comfortable operating as they always have done.

Upton Sinclair put it well: ‘It is difficult to get a man to understand something when his salary depends on his not understanding it.’ Take Blockchain, it could take away the untrustworthy parts of banking: bankers, who will naturally resist this particular technology!

Another example is driverless tech- it doesn’t take an expert to predict that the 3.5 million US truck drivers would be wary of such an advancement – and rightly so. So we have to find a transition plan for them – which culture resists. But it’s a business responsibility to prepare for the changes and approaching transitions, you have a duty of care to your employees and not being future-literate is a dereliction of that duty. Remember, Blockbuster, the DVD rental company went bust the same week that Netflix released House of Cards.

If you had one key message for our delegates at Big Ideas, what would it be?

Wherever you work and wherever you end up in the next 15-20 years, remember that it’s going to be a very turbulent time. Massive disruption lies ahead and the bad news is that our current institutions and businesses are unfit for purpose. Ask yourself: what’s my best effort for myself, my family and for society (and remember they’re all related). If you don’t, you can prepare to be very irrelevant and very unhappy!

Join the conversation and register as a digital delegate for Big Ideas 2017

Why Procurement Needs Clearer Insight into Industry 4.0

The impact of Industry 4.0 is already being felt. But procurement needs greater understanding in order to thrive in the digital era.

Download your copy of ‘Procurement 4.0 – The Digitalisation of Procurement’ on the Fraunhofer IML website.

In our previous article we introduced the concept of Procurement 4.0 – the profession as it might look in Industry 4.0. The key findings of BME’s study into the impact of digitalisation highlighted that procurement faces some major changes in the coming years.

And alongside those changes, there will be an array of challenges, and also benefits, to be faced. In this article, we’ll examine the significance of Industry 4.0 in procurement, but also why the profession needs to find consensus.

Industry 4.0 – Scope and Impact

The BME and IML study showed that many procurement leaders believe that Industry 4.0 has a very high influence on their organisation. Equally, they expect this influence to increase in the next few years.

There is consensus from survey participants that digitalisation will have a huge impact on the organisation as a whole. However, there is less agreement of its overall impact on the procurement profession itself. For many, continuing to look at procurement as a separate entity is impossible in the digital era.

But could this lack of consensus stem from a lack of a common definition of Industry 4.0? When we have discussed the fourth industrial revolution in the past, concepts such as ‘automation’, ‘robotics’, ‘digital’ and ‘technology’ have all been used.

However, similar terms have been used in the past to describe Industry 3.0. BME have concluded from this that the line between 3.0 and 4.0 is not clear, which may be causing confusion. There are two interesting quotes in the report worth considering to highlight the differences of opinion:

“Industry 4.0 is not a thing of the future – it already exists in the present day!”

“The next revolution, which will completely transform our cooperation on every single level.”

Neither one on its own appears to be unusual. However, when seen side-by-side, they serve to highlight two distinct groups. One which sees the changes already taking place; the other which sees them as a future occurrence.

How Organisations Have Prepared

Has your procurement organisation started its digital journey? How confident would you be at pinpointing the changes so far?

If these two, polar-opposite, opinions exist, in a small sample, it highlights a level of unpreparedness in the profession. In the study, only 5 per cent said that no digitalisation activities had taken place. But, interesting, a quarter of respondents claimed the first steps were now being taken.

However, without a pre-defined starting point, then some activities that are already in-progress may be overlooked. Some organisations may be making progress in Industry 4.0 without realising it, or considering it relevant.

Something as simple as an e-procurement system, or digital P2P process, might not be considered as an Industry 4.0 change. Particularly if this change happened a few years ago.

Prof. Dr Michael Henke, believes “Companies often attribute these developments to the third industrial revolution and do not realize that this was nevertheless an important step towards industry 4.0.”

Impacting Procurement Strategy

Currently, it is unlikely that you will find either Industry 4.0 or Procurement 4.0 contained in strategy documents. However, there is likely to be mention of digital transformation, digitalisation, and innovation.

Contained within these objectives will be more common procurement strategies for realising these objectives. Within the BME study, over half of organisations were accounting for digitalisation in procurement strategy.

However, only 20 per cent claimed to have fully explored the impact of Industry 4.0 on their organisations. In spite of this, nearly half of the organisations have a department dedicated to ‘Industry 4.0’. This is a central team, usually comprising of senior management level employees.

“The companies that have already included Industry 4.0 in their company strategy are often already more advanced in the implementation of Industry 4.0 as a company without a corresponding strategy ” Prof. Dr Henke continues.

Taking Procurement Forward

As with most activities, the incorporation into strategy is not sufficient for action. Digitalisation needs to have a specific roadmap, complete with action plans, timelines, and responsibilities.

As well as this, the activities need to be seen from an organisation-wide perspective. Consideration of this topic without full functional input will only hinder coordination.

The perception of these strategies is also key. Though many of the participants considered digitalisation to only be playing a supporting role in order to move procurement forward.

The Association Supply Chain Management, Procurement and Logistics (BME), founded in 1954, is the leading professional association for supply chain managers, buyers and logisticians in Germany and Central Europe.

Fraunhofer IML, founded in 1981, is a global expert on all fields of internal and external logistics. The Institute also currently heads up the largest logistics research centre in Europe.

To download your copy of the report, visit the Fraunhofer IML website.

The procurement function must adapt and evolve to accommodate technology changes and be ready to embrace what we’re calling Procurement 4.0. The question is: Are We There Yet? Join the conversation and register as a digital delegate for The Big Ideas 2017 in London. 

Work-life, work-death and the right to disconnect

It’s a tale of two cities when it comes to work-life balance. Tokyo continues to struggle with a dangerous culture of self-sacrifice through “overwork”, while in Paris, lawmakers have recently enshrined French workers’ “right to disconnect”.

It’s 10.00pm. The kids are asleep, you’ve tidied the kitchen and you’re considering whether to fire up Netflix or turn in for a relatively early night. Your phone gives a soft “ding” and you reach for it, wondering which of your colleagues is emailing you at this hour.

Put. The Phone. Down.

2017 may be the year that we see the turning point in the fight against the “always-on” work culture, which has rapidly eroded the border between work and private lives. Unpaid overtime has surged as businesses increasingly judge employees by their availability, while employees themselves fall into the trap of “just checking one more email” in the evenings. Hyper-connectivity has led to increased levels of stress, sleeplessness, relationship problems, and, in places where the culture has reached an extreme level – death.

Karoshi

Yes, death. If you’re concerned about where the always-on work culture might be heading, there’s no need to imagine a dystopian future where employees work until they drop dead from exhaustion. The situation already exists in Japan, where the notoriously gruelling work culture has given rise to a phenomenon called karoshi, or “work-death”. As much as 21% of the workforce puts in more than 49 hours a week, while compensation claims from families whose loved ones have literally worked themselves to death peaked at over 2300 cases last year.

You won’t find 12-hour work-days on any contract of employment or job description, yet the culture of unpaid overtime (or “service” overtime) is so firmly entrenched in Japan that it may as well be a part of scheduled working hours. Overtime is unforced, yet workers feel it’s compulsory due to managerial and peer pressure. The results are devastating, and it’s not just elderly members of the workforce who are dying. Alarmingly, employees in their 20s suffering from heart attacks, strokes, and suicide triggered by karoshi.

Overwork culture exists in every profession, from manual labour to office work. Joey Tocnang, a 27-year old trainee from the Philippines employed as a steel-cutter in a Japanese factory, was working between 78 and 122 hours of overtime a month before he died of heart failure at his firm’s dormitory in 2014. Matsuri Takahashi, a 24-year-old employee of the advertising giant Dentsu, was driven to commit suicide in 2015 due to stress brought on by long working hours. She regularly worked over 100 hours of overtime per month in the firm’s internet advertising division, and had even posted calls for help such as ‘I want to die” on social media.

According to a government whitepaper, 22.7% of Japanese companies polled between December 2015 and January 2016 said some of their employees logged more than 80 hours of overtime each month – the official threshold at which the prospect of death from work becomes serious. Karoshi has its roots in Japan’s massive rebuilding efforts after the devastation of WWII, and gained traction in the economic booms of the 1970s and 80s.

There is hope of change, though. Posters are going up on the walls of workplaces all over Japan as part of the government’s efforts to reign in the culture of self-sacrifice. A new generation of professionals called “Freeters” are breaking the cycle by demanding to be paid casual rates (by the hour only) rather than salaries. But the real solution may lie in France. 

The right to disconnect

From January this year, French companies with over 50 workers are required to guarantee the right of their employees to ignore their smartphones after hours. The laws were passed after increasing pressure from France’s trade unions compelled the Labour Ministry to defend the country’s highly protected workplace laws and 35-hour working week.

The law applies to the company, not the individual, which means that compulsive email-checkers can work all hours if they’d like to, but cannot be pressured by their organisations into doing so. Businesses now need to enter into negotiations with their employees to define their rights around switching off, and must publish a charter that explicitly sets out the demands on employees out-of-hours.

Some French companies, including French insurer Axa, have taken proactive measures to limit out-of-hours communication and reduce burnout among works, including cutting email messaging in the evening and weekends, and even destroying emails that are sent to employees while they are on holiday.

The comparison between Paris and Tokyo is not strictly equal, as you cannot fairly compare someone checking emails in their pyjamas with a steel-worker putting in dangerous amounts of overtime in a factory, but it is useful to highlight extreme examples, such as Japan, to help combat the creeping culture of unpaid overtime.

Smartphones are, of course, a double-edged sword in that they can potentially offer enormous work-life balance benefits. A working parent, for example, could leave the office two hours early to pick their kids up, making up the time later that evening. But flexibility arrangements usually still come within the paid work-day and do not pressure employees to “gift” unpaid overtime to their businesses.

What can I do?

  • Recognise that “just checking one more email” on your smartphone is working overtime.
  • Talk to your manager about the right to disconnect, and make sure you bring up any instances when you feel you’re being pressured to work unpaid overtime.
  • Speak up whenever you see “overwork culture” advocated in your workplace or on social media.

In other news this week in procurement:

Procter & Gamble calls for an improved media supply chain

  • P&G, a global advertiser with a marketing and advertising spend of $2.8 billion per annum, has called for a “transparent, clean and productive media supply chain” at a digital advertising leadership conference in Florida this weekend.
  • Chief Marketing Officer Marc Pritchard called media supply chains “murky at best, and fraudulent at worst”, advocating viewability standards including improved compliance and measurement.
  • Common frauds include “bot views”, where advertisers report millions of digital hits that are actually views by bots, rather than humans.

Read more on CNBC.

British Standards Institution releases Slavery Index

  • BSI has published its annual Human Trafficking and Supply Chain Slavery Index, revealing an increased risk of modern-day slavery entering European countries.
  • Russia, Slovakia, India and Pakistan are identified in the Index as “severe risk source countries” that may export modern-day slaves to the UK.
  • Italy is also identified as a high risk nation – partly due to the conflict in Syria, while Greece and Turkey are additionally categorised as high risk countries.

Read more on the BSI website.

Leading Procurement into the Future – Big Ideas Summit 2017

2017 is a pivotal year for the procurement profession. The Big Ideas Summit 2017 will help lay the ground work for the changes ahead.

We firmly believe that 2017 will be the year that everything changes for procurement. No longer a transactional function, procurement is driving value for organisations across the world. But the journey doesn’t stop there.

As the pace of change increase even further, procurement needs to adapt and evolve in order to maintain its position. Technology will play a major role in this evolution across the profession, and throughout the supply chain.

To help procurement find its feet in Industry 4.0, and to help lead it into the future, Procurious is once again gathering the brightest minds in the profession for the Big Ideas Summit 2017. This year, we’re doing a spot of globe trotting as we host events in Singapore, Sydney, Chicago and Dubai but we’re kicking things of in London!

Leading from the Front

If you’re new to Procurious, or missed our previous events, let us set the scene for you. The first event of 2017 will take place in London on Thursday the 23rd of February. The event will bring together 40-50 established thought leaders, senior decision makers and industry experts, to discuss procurement’s future.

This is a unique opportunity for delegates, and the wider community, to gain insight into the trends shaping our profession. Once again, we’ll be inviting the community to get involved as digital delegates, and to help drive the conversations online.

By getting current and future procurement leaders discussing key trends, risks and issues, it will help prepare us all for the journey ahead. These leaders will then have tangible outcomes they can take back to their organisations to drive innovation and change.

Among our key themes underpinning the entire event this year are:

  • Industry 4.0 and how it’s reshaping procurement
  • Rebuilding your workforce for  Workforce 4.0
  • Procurement in the digital age
  • Authentic Leadership – Inspiring Trust and Driving Change in Uncertain Times

Be Brave or Be Dead

Procurious has once again secured a fantastic list of keynote speakers and expert panellists. Kicking off Big Ideas 2017 will be respected futurist, entrepreneur, and author, Mark Stevenson.

Setting the scene and providing a context for the day ahead, Mark will draw on his own experience to discuss the key components procurement need to be aware of. These are: geo-politics; geo-economics; and geo-technology.

Stevenson will also outline the technology ‘waves’ coming in the next decade, and argue that companies that can take advantage of these waves will not only attract the best staff, they will seriously outperform all their rivals.

Why take part?

As savvy social networkers you’ll already be of the mind that social media can be used to create a global stir. We want to amplify these Big Ideas throughout the global procurement community, connect with one another, start meaningful conversations, and ultimately drive change.

All keynote sessions will be captured on film and offered exclusively to registered attendees. As a ‘digital delegate’ you’ll also be able to access a rich collection of supporting material including articles, interviews and video content following the event.

Register for the London Big Ideas Summit 2017 here. You can also get involved in real time via social media, on Twitter, LinkedIn or Facebook, using the hashtag #BigIdeas2017.

Be brave -Join the global movement today.

Big Ideas Summit 2016: Big Idea #33 – Sharing Knowledge Openly

Collaborative working and knowledge sharing benefits everyone in procurement. It’s time to learn from one another.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Harnessing Knowledge Sharing

Nicola Robinson, Knowledge Manager at CIPS, says that procurement professionals have a huge knowledge collateral at their disposal. And she also believes that by sharing this knowledge openly, everyone can benefit.

CIPS have led the charge at bringing trusted sources of information to the procurement profession. Nicola believes that the profession can bring all their collective knowledge together, harness it, and all learn from one another.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 19,500 like-minded procurement professionals from across the world.

Claim Your 60 Seconds of Fame: What’s Your Big Idea In 2017?

Looking for a way to build your personal brand and market yourself as a global procurement superstar? Here’s your chance to share your Big Idea with over 19,000 colleagues on Procurious! Get ready to launch your reputation as an influencer and help shape the global conversation for 2017.    

The Big Ideas Summit 2017 in London takes place on 23rd February. Register as a digital delegate here

Put yourself in the frame

In the lead-up to the world’s most innovative procurement event, we’re putting out the call for members of the Procurious community – that’s YOU – to share your Big Ideas via a 60-second video.

Why? Because we’re flexing our 19,000-strong community muscle to crowdsource innovation directly from our members! By sharing Big Ideas, we’ll break down competitive barriers, learn from colleagues with unique insights into procurement, and come away energised by a rush of new concepts that will launch the profession into new and exciting territory.

Amplifying your Big Idea is not only important for the profession, but it’s very good for your career. Although it’s not quite Hollywood, putting your video up in lights on Procurious offers an unprecedented chance to grow your profile as a thought-leader and a true influencer in procurement.

Join an all-star line up 

At the Big Ideas Summit 2016, we asked the thought-leaders gathered in the room to record their Big Ideas live on camera for the world to see. The result? We now have a remarkable library of Big Ideas available to all members under the Procurious Learning tab. The quality of ideas was amazing, and the range of viewpoints was even more so. From Guardian Journalist Lucy Siegle talking about fast fashion…

To RBS CPO, Laura Faulkner, on why procurement needs to focus on people…

… the scope for fresh, innovative ideas is unlimited! But Big Ideas videos aren’t just for the superstars appearing at the Summit itself – it’s over to you to help build on this groundswell by creating a 60 second video that will make YOUR mark on the profession.

Who can contribute?

Anyone and everybody! Whether you work in indirect or direct procurement, whether your focus is manufacturing, technology or logistics, whether you’re a CPO or a student – your ideas deserve to be shared. That’s because every procurement professional possesses unique insights based on differences in personal background, role, industry, and business type.

It’s super easy to create a 60-second video via your computer, phone or YouTube. You’ll find our recommendations on the best ways to create and share your video with Procurious at the end of this article.

Need more inspiration? Check out this 2016 Big Idea video from one of our community members (and competition winner), Kelly Barner:

How to submit your Big Idea

It doesn’t matter whether you film your Big Idea on your phone, tablet, laptop or PC- we’re not picky! But, to help you out, we’ve put together a list of some of our recommended methods for reaching out to us. Once you’ve completed your film, you can reach us by email (Procurious@Procurious.com) or on Twitter (@procurious_).

Youtube

Alternatively, if you have always dreamed of being an Internet star, YouTube might be the tool for you.

  • Head over to https://www.youtube.com/uploadand either select a readymade video to upload, or hit ‘Webcam capture’ to film your piece on the spot.
  • Select ‘Start recording’ to get the camera rolling (remembering to tick ‘Allow’ should you be prompted by YouTube’s Privacy Settings)
  • When done press ‘Stop recording’ followed by ‘Continue’.

Don’t be daunted by filling-out the ‘Basic info’ – all that’s required is a title, short description, and some tags. For your title we’d suggest using something along the lines of: My Big Idea is… [insert here]

In order to make your video easy to find, we’d recommend using the #BigIdeas2017 and Procurious tags – but feel free to add more!

Click ‘Publish’ when you’re happy and remember to send us the YouTube URL when it’s live.

Email and phone

Want to submit your video using a good old-fashioned email? We’ll accept that too! Did we mention we’re not picky?

Attach your video to an email with the subject line ‘My Big Idea Video’ and send to Procurious@Procurious.com.

If you’re using an iPhone or iPad you can also record your video using iMessage. Android and Windows Phone users can choose to use Skype (Windows Phone has Skype already built-in)

We look forward to sharing your videos with our Procurious community of 19,000+ members! Happy shooting, and be sure to register as a Big Ideas Summit digital delegate so you can catch the wave of Big Ideas in 2017.

Grab A Cheeky Donut! 5 Procurement Resolutions You Can Actually Keep

It’s that time of year again. January has come and gone and you’ve realised that, despite the best of intentions, you’re not actually going to deliver on your personal New Year’s resolutions.

Rather than despairing about all those unrealistic “get fit” goals, how about refocusing your energies on some professional resolutions that will truly benefit your procurement career? The beauty of these targets is that they can actually be met, and won’t be broken in a cheeky late-night fridge raid.

The year has barely begun but we’ve already heard some profound advice from procurement leaders around the world, but here’s the skinny – the real McCoy – the five goals you REALLY need to focus on to reach the top.

So, grab a donut (breaking a healthy-eating resolution while doing so), adjust your focus and rebuild your resolutions to become a world-beater in 2017.

  1. Get tech-savvy

Late last year, I predicted that IT procurement professionals will become the next generation of CPOs (Chief Procurement Officers).

So, if you want to stay in the race, you’ll need to get tech-savvy very quickly. This means making the time to upskill yourself so you will have the confidence to make decisions such as:

Decision Skill-set
Whether to store your company’s precious customer data in the cloud or in data centers. Learn about big data analytics and understand the benefits of the cloud versus data centers.
How to protect your company’s IP and customers’ privacy from hackers. Keep up-to-date with the rapidly changing (and fascinating) world of cyber-security.
How to comply with privacy legislation. Build a relationship with your organisation’s lawyers to learn about data protection laws.
Which technology vendors you should (or shouldn’t) tie your company’s future to. Familiarise yourself with the technology landscape and the big players.

2. Become a Play Maker

Last year on Procurious we talked a lot about procurement’s game changers.

When visualising what type of procurement professional you want to be, you could do worse than become what The GC Index calls “The Play Maker”. It reads a little like a horoscope, but to quote – “Perfectly placed right in the intersection of all GC Index’s four profiles, this individual is interested in people and relationships. They’re best equipped to take on the all-important task of stakeholder engagement, but also managing upwards (C-level) and outwards (supply markets). Play Makers at their best will lead through building productive relationships and helping others to do the same”.

To me, the Play Maker sounds like the perfect procurement professional. A relationship expert who is equally at ease managing the C-suite and suppliers will go a long way very fast.

BME’s landmark Procurement 4.0 study also highlighted how procurement will need to network both vertically and horizontally, inside and outside the organization, to thrive in Industry 4.0.

  1. Put on a show

CPOs today are paid to drive global change and (in case you didn’t know), storytelling lies at the heart of every successful change programme.

I recommend that CPOs and other change-drivers adopt the “the Disney formula”, which involves a core idea (the story) being cleverly communicated through a number of different channels. This technique can be easily adapted into a formula that’s relevant for procurement pros: “the book, the movie, the merchandise, the ride – and the tweet”!

If you can’t see how Disney’s storytelling formula could be adapted to your change-management programme, there’s no need to reinvent the wheel. Save yourself some time and energy by finding your own inspirational company who demonstrate best-practice, steal their formula, and get to work!

  1. Network your face off

The “n-word” makes most people cringe and break into a cold sweat – but overcoming your fears and mastering the art of networking is well-worth the effort.

Inspired by Kathryn Minshew’s piece for the Harvard Business Blog titled “Network Your Face Off”, Kate Lee of Fronetics wrote a clever blog article for Procurious where she gave seven reasons why you should focus on developing your network in 2017.

Here are the facts – professionals with larger networks earn larger salaries, they’re offered more professional opportunities, they stay in their jobs longer, they are more “in the know”, and (last but not least), they’re happier!

  1. Cyber-study

If one of your resolutions is to build a habit of continuous learning, you’ll need to throw out your old perceptions of professional development and adapt to the brave new (online) world. You can now access the latest thinking and procurement insights on your laptop, smartphone or other device, 24 hours a day, 7 days a week, 365 days a year. This means there is absolutely no excuse for you not to be plugging those career competency gaps!

Procurious’ learning section is organised into bite-sized microlearning videos ranging from 2–12 minutes, giving you the ability to learn from the best in the business in the time it takes to fetch a coffee.

Never forget that simply asking questions is often the best way to get the answers you need. With 19,000 members (and counting) on Procurious, the possibilities to engage in insightful and relevant discussions are limitless.

Finished your cheeky donut? While you’re picking at the crumbs, let’s make a commitment – to our professional selves, to our procurement teams and to our companies – to supercharge our procurement efforts this year with relevant and achievable career goals. Here’s to an exciting and transformative 2017 for everyone!

A Whole New World: The Cognitive Computing Era

The age of cognitive tech is coming, whether procurement likes it or not! How can we be ready for the changes coming our way? 

Register your attendance for our free webinar, Man & Machine, which takes place on 8th February 2017. 

A New Era Of Computing

 We’ve entered into a new era of computing: “the cognitive computing era”, which follows the eras of programmable and tabulating systems and represents a massive jump forward that will transform how enterprises operate.

This new era is defined as such because there is a fundamental difference in how these systems are built and how they interact with humans. Traditional programmable systems are fed data, knowledge, and information, and they carry out and return results of processing that is pre-programmed. In this case, humans are doing most of the directing.

Cognitive technology is different; it accelerates, enhances and scales human expertise to solve more complex problems by understanding language and interacting more naturally with humans. It can reason to find patterns and form hypotheses, making considered arguments and scenarios planning. And this is exactly what Watson is about.

Watson is a cognitive technology that can think like a human and is available as SaaS products and a set of open APIs (Applications Programming Interface) such as natural language classifier, speech to text, text to speech, visual recognition, etc.

What Does Watson Mean For Procurement?

This disruptive technology, by creating a new digital ecosystem, is pushing Procurement to create a new business model, moving away from objectives centered on cost take out and taking a new customer centric and revenue growth approach. CPOs must employ the right strategy, structure, skillset and cognitive technology if they want to be in a strong position to demonstrate their relevance and value to the organization.

Procurement organizations and their leaders need to embrace the reality and potential for Artificial Intelligence (AI) and cognitive procurement as readily as they would accept other technologies and developments. AI will bring changes and challenges but it will also bring amazing opportunities for the profession.

As we apply AI to certain procurement tasks and processes, we will begin developing internal capability and expertise.

Applying Cognitive Tech To Procurement

Cognitive technology has already proven to be particularly helpful at helping procurement with a number of specific tasks and programs. These include:

  • Quickly sorting through very large amounts of structured or unstructured data. This is especially useful for benchmarking and supplier analysis
  • Providing very detailed supplier assessments of a single supplier, a group of suppliers or the whole supply base
  • Providing in-depth risk assessments, identify hidden risks, and calculate rate risks
  • Supporting and validating decision-making during supplier selection

More generically, cognitive computing will undeniably be a key ingredient to innovation, helping to find new ways of operating, providing new insights, uncovering new opportunities and last but not least it will elevate procurement professionals to the well-deserved advisor role by extending their capabilities and growing their experience.

How Can Procurement Prepare For The Changes That Are Coming? 

The question that so many procurement organisations are asking is how can they make cognitive tech a reality and where to start?

Adopting and integrating cognitive solutions into an organization is a journey and not a destination.

Firstly, CPOs need to be clear about what matters the most. In order to grow their company’s business and best benefit from the technology, they must set realistic expectations and develop long-term plans with incremental milestones

Secondly, transformation doesn’t happen by itself. It requires the vision and support from the top. As an example, Bob Murphy, IBM’s CPO, is the biggest driver of change in terms of transforming his organization. He saw the potential in cognitive technology and the prospects for Procurement and became an evangelist within the team; encouraging, sponsoring and demanding we embrace this opportunity.

Thirdly, leveraging big data is a key area to take advantage of, especially in data management. This ensures that organisations have the right structure and strategy. At IBM, we have appointed a Procurement Data Officer and also hired data scientists within the procurement team as we understood that procurement needed to take a more active role in extracting and analyzing data to demonstrate its value especially by leveraging the data we are managing and generating. (i.e data in RFP answers, ….)

The Race Is On – Can Procurement Shape Up In Time?

With cognitive technology, procurement teams will be equipped with the tools to navigate the procurement process quickly, easily and more compliantly. This will allow more time for procurement teams to focus on strategic supplier activities after contract signature, such as performance management or supplier collaboration and innovation programs. But is the function ready for this shift?

Embedding such advanced technology requires some serious changes in skills and competencies within our teams. Procurement leaders will have to search for procurement professionals not only focusing on their core competencies, such as category expertise, negotiation skills or market knowledge, but it will be more and more important to hire people with the “right” soft skills. The function must onboard and retain people with excellent relationship management and analytical skills and with a high aptitude to work with advanced technology and financial acumen.

The procurement landscape will have to reshape to a more business leading capability that has to operate in a much more virtual and networked environment where emerging roles of data scientists, business relationship managers and innovation scouts, to mention a few, will be increasingly required.

In short, beyond just being capable of creating visible savings, the role of the procurement organisation will have to shift its focus beyond cost reduction efforts, and move towards a trusted advisor role; accurate, fast and efficient.

There’s no doubt about it, late adopters of the digital transformation or organisations failing to take into consideration the growing exigencies such as speed, value for money, collaboration will be soon perceived as road blockers rather than enablers.

Join Procurious’ free webinar, hosted by Tania Seary with Manoj Saxena, Pascal d’Arc and Nathalie Fekete to make sure you’re ahead of the cognitive technology game. 

 

 

Learning the Fine Art of Creativity

We live in an ideas economy where creativity is the new currency. So is it possible for those with less artistic flair to learn how to get their creative juices flowing? 

Register as an online delegate for the London Big Ideas Summit 2017 here.

Everyone’s A Little Bit Creative 

Many of us enjoyed a childhood spent imagining, innovating and creating whether we were painting pictures, constructing dens from cardboard boxes or inventing fantastical make-believe games.

Indeed, the vast majority of research into child psychology suggests that we are all born naturally creative but we subsequently endure an education system or working environment in which our imaginations are more or less stamped out of us.

James Bannerman, a creative change agent and author of Non-Fiction best-seller Genius: Deceptively Simple Ways to Become Instantly Smarter, firmly believes that everyone has the capacity to be creative and innovative. Of course, some adults demonstrate greater potential than others but by employing certain techniques and embracing our inner creativity, we can all achieve additional moments of pure genius.

In a world where innovation is the new currency, procurement teams that fail to execute their ideas with originality will fall behind and die. James will be on hand at the Big Ideas Summit 2017 in London to give our CPOs and online delegates tips to release the creative genius in their teams.

Innovate Or Die

The maxim that organisations must innovate or die has never been more true thanks to rapid technology developments and fierce competition. In procurement, CPOs need to foster their intrapreneurs and work to achieve what Bannerman calls a ‘return on inspiration’:

“ It is easy to become fixated by Return On Investment in business, and often with good reason. The problem with traditional ROI, however, is that it is built upon ‘known returns’.

Creative Thinking, however, is more closely connected with ‘surprise returns’. You don’t always know what you’re going to get at the end of it – because creativity involves ‘the defeat of habit by originality’ (as Arthur Koestler once said in his 1964 classic The Art of Creation.

Yet, to those with an open mind, it can still be worth exploring the world of “return on inspiration”, as the ad agency Golley Slater referred  to it,  to see what comes out the other side”

At the Big Ideas Summit 2017, Bannerman will be putting 50 CPOs through their paces as he introduces them to lateral thinking exercises.

“ During our interactive session we will look at the C.A.N.D.O. model – which I write about in Genius!  This pinpoints the 5 main ways to come up with new ideas, whatever the challenge and whatever the problem: New Connections, New Alterations, New Navigations, New Directions and New Oppositions.

Before we explain what they are, and how they can be used in the real world of work, however, we’ll start off with a few Lateral Thinking exercises.

Take the question ‘What do you lose everytime you stand up ?’ for example. Many people struggle with this question, because they approach it far too rigidly and logically.”Maybe you lose your balance?” or “Maybe you lose the comfort of your chair” etc… If you apply a little Lateral Thinking and spin the question around, however, it can start to become much easier. ‘What do you gain everytime you sit down’ ? You gain a lap!

Join the conversation and register as a digital delegate for Big Ideas 2017 now!