What’s The Catch-22 In Procurement Technology?

From here to eternity: what does the future of procurement technology  look like? Download Wax Digital’s Procurement 2020 report here

Procurement technology has undergone a long road of change that has consequently altered procurement functions, processes and the very nature of the business itself. But while we spend much of the time understanding how technology is governing what we do today, it’s how technology is shaping the procurement role in the future that should be our focus.

There is a widespread belief that procurement ‘intelligence’ could significantly change the goalposts for the profession, and go beyond informing and processing data, to predicting, learning and deciding.

Procurement technology’s Catch 22

With analytics and intelligence comes a dilemma. Do you outline the questions you need to answer before you perform analysis, or use the data to work out the answers to ‘what you didn’t know, you didn’t know’? It’s a catch 22 scenario.

Thanks to big data and artificial intelligence (AI), this dilemma is becoming easier to manage. A procurement system using intelligence exhibited by machines can learn from users’ mouse clicks, purchases, and line of information to make its own choices, rather than requiring approval from users.

That doesn’t necessarily mean that procurement skills and knowledge will become any less sought-after. But those in demand are likely to change, perhaps even for the better, if cognitive technologies allow experts to think, consult and use their human skills more wisely.

Our panel’s three key intelligence priorities were:

  1. Anticipating supply and demand decisions

    The power of big data enables procurement systems to foresee the needs of the business, such as anticipating demand based on historical spending or seasonal demands. And the data that systems are based on will only expand as new internal and external dimensions are added to the mix, such as social media and newsfeeds, assessing demand more accurately. Intelligent systems may then begin to question human decisions, such as the validity and need for supplier orders and assessing the risk and ongoing performance of suppliers. Supercomputer IBM Watson’s ability to answer questions shows AI’s and sophisticated analytical software’s ability to surpass a human’s ability to answer high-functioning questions, and to work as an instructor to human processes.

  1. Uber-personalisation

    From marketing to IT, departments across the organisation use purchasing systems, meaning that there are different roles and backgrounds to accommodate. Through machine learning, procurement could lead the way in uber-personalisation, in which its systems are integrated with others such as ERP and CRM to determine and define each users’ preferences and needs.

  1. Intelligent supply relationships

With the introduction of AI comes a potential new landscape of supplier management, as eTendering, eSourcing and contract management have the potential to become more automated. This could see systems monitoring supplier behaviours and performance based on buyer feedback, or keeping a close check on adherence to contract terms; and possibly even interpreting eAuction behaviours and leading negotiations to make sourcing decisions on the procurement professional’s behalf. 

Even with vast use of intelligence, the procurement department will still require human involvement. While intelligence can be used to purchase everyday office products such as paper, strategic projects like building a new office will require procurement’s involvement in business planning and meetings, meaning that procurement professionals should strengthen their strategic skills in this area to ensure that they’re indispensable. But a new type of ‘colleague’, which is highly efficient and has extreme attention to detail, could well be on the way. Combining intelligence with vital people skills is how you can make procurement a strong and effective force in the business.

Learn more in Wax Digital’s Procurement 2020 report, a set of future gazing in-depth interviews with global senior procurement professionals and experts.  Integration of procurement technology in the wider business was the first topic. 

The Cabinet of Procurement Curiosities

What’s the weirdest, wackiest item you’ve ever had to source? JAGGAER takes a spooky look into its cabinet of procurement curiosities.

People buy odd things for curious reasons. The same holds true when buying for an organisation – with great purchasing power comes access to some really weird objects.

Procurement Curiosities

We explored our purchasing catalogue to see what we could uncover. Many of these items seem bizarre at first, but they all serve an important purpose for the right person. We bought a few things based on how strange they sounded, only to discover how practical they were.

We’d love to hear about the weird items Procurious readers have purchased or the ones lurking deep within your catalogues. Here’s a sampling of JAGGAER’s collection of curiosities. All of them are real. Some of them are genius.

The Dimensional Lever Punch-Monkey

Sounds like a gag-gift – unless you’re a craft maven or a teacher. The Punch Monkey is actually a tool that punches shapes out of paper – monkey shapes, to be precise. Teachers and crafters use the Punch-Monkey to punch out shapes for projects, borders and other creative pursuits.

Scientific Baby Hippy

We love the mental image this one conjures up – and we have emailed a sketch to the Cartoon Network. But a Baby Hippy is actually a model of a baby’s lower torso, hips and legs that is used to train medical personnel. Ever wonder how paediatric nurses are so good at giving those dreaded vaccinations? Thank the Scientific Baby Hippy.

Rock Crusher

We’re not talking about a monster truck. (Monster trucks are actually one thing we don’t have in our catalog.) But we can hook you up with rock crushers in a variety of sizes. Rock crushers can range in price from $65 to over $30K. They are used – you guessed it – to crush rocks.

Ejector Fork

Sounds like something Elroy Jetson might have used to launch his peas Astro’s way. In real life, an ejector fork has a slightly less exciting existence. It’s a utensil used to transfer and release pipettes containing small volumes of liquid in research labs. If we find a supplier for the Elroy version, you will read it here first. That would be awesome.

Pseudo Drowned Victim Scent

When you need a reliable way to train search dogs, pseudo scent is the way to go. This man-made compound mimics the smell of a human corpse, and maintains its scent for up to 30 minutes in still or running water. But if you spill some on you, and your date likes it, we recommend moving on.

Rat Brain Slicer

Don’t worry: this is not used in the Food and Beverage industry. It’s actually an essential tool for scientists studying the effects of drugs, chemicals and disease on the brain. The brain slicer allows researchers to isolate and prepare sections of rat brain tissue for study.

What procurement curiosities are lurking in your catalogue? Share them in the comments below!

Michelle Douglas is Director of Integrated and Digital Marketing at JAGGAER.com.

5 Ways to Avoid Spreading Fake News in Procurement

Have you ever been guilty of presenting fake news or “alternative facts” to your CFO? Integrity is a cornerstone of the procurement profession, but benefits realisation is one area where supply managers sometimes play fast and loose with the facts.  

It seems everyone is talking about fake news at the moment. The term came to the fore after the U.S. election, when Hilary Clinton called out fake news as a contributing factor to the Democrats’ defeat. Since then, President Trump’s team have wholeheartedly embraced the term, regularly branding unfavourable reports as “fake news” and even describing selected media outlets (such as CNN and Buzzfeed) “fake news organisations”.

After Trump’s press secretary Sean Spicer’s first press conference contained provable falsehoods about the size of the inauguration crowd, campaign manager Kellyanne Conway came to his defence by saying that Spicer was simply presenting “alternative facts”, much to the delight of Twitter users who immediately converted the term into a hashtag.

Fake news can be dangerous – putting aside whether or not it influenced the U.S. election, the phenomenon has inflamed racial tensions, led to at least one shooting (the “Pizzagate” gunman), while more recently the two nuclear powers Israel and Pakistan exchanged tense words over a news report that proved to have no verifiable source.

The good news is that solutions are popping up all over the globe. The BBC is setting up a “fake news” team, Italy plans to establish commissions of experts to rule on the veracity of news, while Germany has threatened to fine social media platforms including Twitter and Facebook for spreading fake stories.

How does fake news apply to procurement? Let’s look at two examples – firstly, the CPO’s role as the organisation’s trusted advisor and arbiter of facts, and secondly, the risk of feeding “fake news” about cost savings upwards to the CFO.

 The trusted advisor in times of crisis

When a disruptive event takes place, procurement needs to be known as the calm centre of the storm. Let’s take Brexit as an example. After the shock result in June last year, a rising sense of panic took hold of markets while business leaders worldwide were rattled. Media organisations began to speculative on the potential fallout of the Brexit vote, leading to the danger of knee-jerk reactions from CEOs and other decision-makers.

It was gratifying to see that one week later, the CEOs of the world’s two biggest professional bodies for procurement and supply management released statements that contained essentially the same message of reassurance. Importantly, both statements emphasised the procurement professional’s role as the suppressor of speculation and the guardian of facts.

ISM’s Tom Derry spoke to Procurious about his organisations’ decision to release a supplementary Report on Business revealing that the impact of Brexit on US CPOs’ buying decisions was negligible. “There has been an enormous amount of speculation about the impact of Brexit, fed by a sense of unease and uncertainty”, said Derry. “ISM was in a position to gather real data and put the information out there so businesses can make informed decisions based on facts, rather than fear, concern or emotion.”

Similarly, the late CIPS CEO David Noble urged procurement and supply professionals to “act as the suppressor of panic, not the creator”. Noble said that how supply managers behave “is fundamental to how the business manages these coming weeks and months. Supply chains can emphasise or exaggerate concern, which can then be magnified all the way down the chain.”

Benefits realisation – procurement’s very own “fake news”

While the Brexit example demonstrates how procurement can either supress or endorse speculation originating in the media, there’s one area where CPOs are guilty of generating fake news themselves – the realisation of negotiated savings and other benefits.

In a report commissioned by members of The Faculty Roundtable entitled Making it Stick, researchers found that 50% of contracted savings are not making their way to the bottom line in leading Australian organisations. Without effective contract management to realise the full value of savings and other benefits, procurement professionals risk damaging the integrity of the function. Eventually, the falsehood will catch up with them when the CFO calls them into their office and demands: “Where’s the money?”

That’s why, to avoid being a purveyor of false data, CPOs must address the fundamental shortfalls that are costing organisations hundreds of millions in unrealised savings.

Five ways to turn “fake news” into real, bankable savings

Procurement teams are adept at finding the money, but it takes a whole organisation to keep the money. Given the uncertain business climate facing organisations internationally, driving savings and other value to the bottom line is an absolute priority facing the C-level today.

  1. Encourage enterprise-wide ownership and alignment with Procurement’s targets (shared targets).
  2. Bust silos through true cross-functional collaboration, particularly between procurement and finance.
  3. Work to eliminate maverick spend and other non-compliance that undermines procurement’s gains and damages supplier relationships.
  4. Establish crystal-clear benefits definitions, measurements and validation processes, agreed upon across the organisation.
  5. Create a cost-conscious culture to enable CPO-level efforts to expand the value that procurement contributes.

In short, as a CPO you’ll need integrity to win the trust and respect of your team, your peers, and your suppliers. Your willingness to accept or even endorse fake news, such as panic-driven speculation or unrealised savings, will very quickly erode this respect and lose the confidence required to run an effective procurement function.

9 Tips For Negotiating A Pay Increase

The end of the financial year is approaching, which means many companies are preparing for performance reviews. Is this a good time to ask for a pay rise? 

If you’ve been thinking about asking management for a pay rise, you’re probably not alone. The end of the financial year provides the ideal forum to talk about your achievements and can also be an opportune time to raise the issue of a pay rise. However, your performance is only one of the considerations influencing a pay rise. The economy, your employer’s financial performance and what your department has contributed to the organisation’s bottom line will also all play a part in the decision-making.

According to a survey by Salary.com, more companies are planning for larger salary budgets in 2017 than smaller ones. In fact, more than twice as many survey respondents on average are planning to offer larger increases in 2017 than 2016. So you could be in with a shot.

However, bringing up the topic isn’t something most people are comfortable with. To help you prepare, consider these things.

  1. Verbalise your worth

Some people assume their manager is already aware of their achievements, so they shouldn’t really need to ask for a pay rise. But this isn’t necessarily the case.

Your boss will be looking to award a pay increase to staff who can demonstrate that they have gone above and beyond. So, in your meeting, give clear examples to demonstrate how you’ve delivered beyond what is expected of you. Structure this just like a CV and focus on actual outputs and achievements, rather than general statements about how hard you work.

This could include times when you’ve taken initiative or financially or tangibly contributed to the business. Be sure to also give details about any additional tasks or responsibilities you’ve taken on. Having a written pitch supporting your assertion for a pay rise could also help the negotiation.

  1. Demonstrate your value

Take the time to research what similar roles to yours pay in other companies, which can help you set realistic expectations of yourself and your employer. Take some time to look through online jobs platforms, the newspaper and perhaps even recruitment companies in your field might have some related pay information they could share.

Generally, if you’re asking for a higher salary, you’re not in a position of power. In face-to-face negotiations, research finds that the more powerful person will usually win out. So, if you’re negotiating with your boss, you might like to at least start the negotiations over email or phone before sitting down and discussing it together. 

  1. Don’t give an ultimatum

You might have kicked some goals for your company and feel confident about your place in the food chain, but giving them an ultimatum might get you want in the short term, but it could also damage your relationship or career in the long term. A good negotiation tool can be to find out your replacement cost to the company, particularly if you’re working on projects with tangible deliverables, and mention this during the meeting.

  1. Watch your body language

Pay attention to what your body language says during the meeting. Stay relaxed, speak slowly and have open body language during the meeting (no crossed arms). Avoid getting defensive and be confident and convincing by coming to the meeting prepared.

  1. Be a learner

Demonstrating your ability to learn will demonstrate dedication. Whether you attend courses to improve your skills a few times a year or develop a lifelong habit of daily learning or micro-learning (such as reading about a new topic related to your job description on the commute to work or in your lunch break), this is something that management will look upon favourably.

  1. Don’t name your price

Don’t be the first person to say how much you’re expecting in a pay rise. For all you know, your boss could be thinking of a figure far higher than you’re predicting, so let them speak first. If your efforts to ask them to name a number isn’t working, give a narrow range that you’d be happy with. 

  1. Be realistic about timeframes

Don’t raise the possibility of a pay rise and expect it to be introduced the following week. While your company should have money in the budget to financially reward key staff, it’s rare that a pay rise will be approved and implemented immediately.

  1. Make sure you listen

Choosing the right phrases and making sure you say enough but not too much is paramount. Making sure you’re not suggesting that you’re underpaid and that there’s no aggression in your meeting is vital. Once you’ve presented your thoughts, make sure you let your manager respond, and listen with an open mind. If your manager decides not to increase your salary, ask for feedback and for ways you can improve your performance over the next year. 

  1. Discuss more than just pay 

If you’ve been turned for financial remuneration for your hard work, consider alternatives to an increase, such as asking for more workplace flexibility or additional training. Have this idea ready so that if your initial request is rejected, you can ask for an alternative.

WikiLeaks Reveals CIA Interference in iPhone Supply Chain

WikiLeaks has released new information on CIA programs aimed at monitoring Apple device owners. Has the CIA redirected iPhone shipments to its own facilities to infect them with spyware?

President George W Bush visits CIA Headquarters, March 20, 2001.

For many readers of the latest data dump from the controversial website WikiLeaks, two surprising facts stood out:

  1. The CIA has been hacking iPhones, Macbooks and other Apple products for a decade
  2. To install the malware, the CIA requires physical access to “factory fresh” machines. WikiLeaks suggests this is done through redirecting Apple’s supply chain through their own facilities

What has the CIA been up to?

According to the documents, CIA’s Embedded Development Branch (EDB) implants malware called NightSkies 1.2, a “beacon/loader/implant tool” that apparently allows the CIA to “gain persistence” (spy) on the device. Notably, this program has been in use since 2008. WikiLeaks also describes a project called “Sonic Screwdriver”, which allows spies to remotely hack a Mac computer from a USB accessory plugged into the machine. The release also contains details of other malware products with striking names such as “DarkSeaSkies”, “DarkMatter”, “SeaPea”, “Triton”, “Dark Mallet” and “DerStake”.

Listen to WikiLeaks’ Julian Assange’s commentary on the CIA’s malware specifically developed for Apple products:

How is the malware installed?

According to the CIA documents, NightSkies 1.2 is physically installed by a CIA operative on “factory fresh iPhones”, or handsets that users haven’t yet interacted with.

The two key words here are “physically” and “factory fresh”. The malware cannot be installed remotely, which means the CIA agent needs to get their hands on their target’s phone to install the program. This brings to mind a Hollywood-style manoeuvre where the operative would somehow pickpocket the target, install the malware with a USB, and return it to the unsuspecting iPhone owner who will never realise they’re being tracked.

However, as the iPhone needs to be “factory fresh”, WikiLeaks believes it’s possible the CIA has redirected iPhone shipments to install the tool. The organisation wrote:

“While CIA assets are sometimes used to physically infect systems in the custody of a target, it is likely that many CIA physical access attacks have infected the targeted organization’s supply chain including by interdicting mail orders and other shipments (opening, infecting, and resending) leaving the United States or otherwise”.

This raises two questions, neither of which are answered in the WikiLeaks documents:

  • Is the CIA infecting Apple products en-masse, or are they only intercepting, infecting and re-sending specific phones that have been ordered via mail by persons of interest?
  • Does the CIA visit the factory floors of Apple’s suppliers to install the malware?

Has Apple responded?

Yes. Apple has released a statement pointing out that nearly 80 per cent of the vulnerabilities exploited by the CIA have already been fixed with security patches (years ago in some cases) and added that it “will continue work to rapidly address any identified vulnerabilities.”

In its statement, Apple did not directly condemn the CIA for interfering with its products, choosing instead to distance itself from WikiLeaks:

“We have not negotiated with WikiLeaks for any information. We have given them instructions to submit any information they wish through our normal process under our standard terms. Thus far, we have not received any information from them that isn’t in the public domain. We are tireless defenders of our users’ security and privacy, but we do not condone theft or coordinate with those that threaten to harm our users.”

In other news procurement news this week…

London Mourns Victims of Westminster Attack 

  • Thousands of Londoners gathered in central London to honour the victims of Tuesday’s terrorist attack
  • On the 22 March, Khalid Masood drove into pedestrians on Westminster Bridge before crashing his rented four-wheel drive into a fence outside parliament
  • He attacked two police officers as he tried to enter the building, fatally stabbing Keith Palmer before he was shot. Five people, including the attacker, died, and at least 50 people have been injured.
  • On Thursday evening, a candlelit vigil was held in Trafalgar Square. In what was a moving tribute to those affected, the Mayor of London, Sadiq Khan, addressed the crowd to much applause and a minute of silence was observed.

Read more on BBC

Avian Influenza resurfaces in Asia

  • An outbreak of H7N9 avian flu that has been described as the worst in seven years is dramatically impacting the poultry industry across China, Japan and South Korea.
  • The outbreak has been linked to over 140 human deaths in China in January and February, along with enormous stock culls including 30 million chickens in South Korea alone.
  • Chinese poultry imports are expected to grow by 10%.

Read more on the Wall Street Journal.

Starbucks announces aggressive expansion plans

  • Starbucks will open 12,000 new cafes globally by 2021, including 3,00 new stores in the U.S.
  • The new stores will require a workforce of 240,000, with the company planning to hire 25,000 military veterans and military spouses.
  • Starbucks has also announced it would hire 10,000 refugees in response to Donald Trump’s executive order calling for an immigration ban.

Read more on MarketWatch.

Real Relationships Really Matter

It doesn’t matter what technology your organisation adopts, or what digital transformation you endure; procurement relationships will always be essential for success. 

At the Big Ideas Summit 2017, we once again challenged our thought leaders to share their Big Ideas for the future of procurement. Chris Cliffe discussed why relationships really matter.

The world around us is changing. You can’t turn anywhere these days without hearing the phrase ‘Digital Transformation’. Everyone’s writing about technology and the race to automate and use augmented intelligence in business.  IBM’s ‘Watson’ is soon expected to be in regular use within procurement teams across the globe. But, the reality is that the vast majority of organisations, be they Private, Public or Not-for-Profit Sectors, are only at the start of this adventure.

Of course, it is crucial that our organisations do focus on adopting technology. The role of the CIO, for example, is at least equally important to that of the CPO. Yet the technology focus cannot be at the expense of the human focus.

Relationships really matter.

In fact, in the next decade or so, relationships will increasingly be the differentiator as ‘process’ and ‘transactions’ become automated and ‘value adding’ activities become the sole human focus.

Buyer Supplier Relationships

It might seem an obvious place to start but buyer supplier relationships are so often overlooked.  I think we can, in the main, agree that a ‘tender’ process in itself delivers zero value. Value for Money can only be obtained from good performance of the resulting contract. If we put ‘procurement’ theory to one side for a moment and look at ITIL Service Management, it clearly states that “good people can make a bad contract work, equally, bad people can make a great contract fail”.

Having the right relationships, between the right people, on both sides of a contract is how you get best value. Investing time and effort into building, nurturing and maintaining good relationships between buyer and supplier teams will facilitate far more value from contracts. It doesn’t pay to   let and forget!

Let’s assume a big problem happened last week.

Scenario 1: You call your account manager to complain, having not spoken to them in months, because ‘someone’ messed up.

Scenario 2: You call your account manager that you spoke to recently. You know they’ve just returned from their first family holiday in five years. They’ve had an awful couple of years for various personal reasons and, in fact, they’d even booked a restaurant you recommended. Whilst they were away, a junior member of their team was covering and they may have dropped the ball.

In both scenarios, the same issue has arisen and it needs fixing.  But I suspect the majority of us will approach those two calls differently and outcomes from these calls may also be different. Think about whether you could start both calls with the phrase, “How can I help you fix this problem?”

Stakeholders

Stakeholders: An increasingly over used, catch-all term to dehumanise people who we go to work with day in, day out. Investing time and effort into establishing relationships with the key individuals within our businesses will pay you back in spades. Ask questions. Be interested. Get under the skin of the challenges your colleagues face. Don’t be constrained by the perception of silo’s.

We must always remember why we do what we do. The purpose of Procurement is not to further the cause of procurement. Of course, a very happy side effect of an effective, modern, highly engaged and enabling procurement team is that the reputation of the profession will increase to everyone’s benefit, but that cannot be the motivation. The role of Procurement is simple. It exists to facilitate and enable the organisation(s) it supports in achieving its vision, mission and goals.

In human terms, we are there to help our colleagues enjoy work through enabling their success and in achieving their objectives. This is a differentiator between good and bad procurement in my mind. Establishing relationships with stakeholders based on a genuine interest in understanding their challenges and seeking to support them overcome obstacles proactively, will lead to game-changing relationships rather than relationships based on reactively promoting procurement process, policy and procedures.

Career Development and Credibility

Relationships really matter for professional development, career development and credibility. Take a look at the Deloitte CPO Survey 2017, or any recent recruitment agency survey. There will always be analysis pointing out how the procurement profession is dogged by a lack of soft skills and how there’s a real talent shortage with regards to interpersonal capabilities. I believe we all need to take  responsibility for learning and development; it is up to individuals to own the preparation for longer term career aspirations.

Relationships really matter with those in your network. The aim isn’t to collect as many LinkedIn connections as you can, but it is to connect to as many people as you can. Connect in this sense means to talk, ask, listen, learn, impart knowledge and most importantly follow up on conversations. Being market aware and having your finger on the pulse is an incredibly important part of being a credible professional in terms of managing contracts and suppliers and with developing productive relationships with colleagues.

Investing time and effort into building, nurturing and maintaining productive relationships really matters.

Four Ways To Ensure You Still Have A Job In 2020

Futurist Anders Sorman-Nilsson warns that unless we act now, there’s a good chance we’ll find ourselves unemployed as early as 2020. 

Sorman-Nilsson spoke with Philip Ideson as part of Procurious’ Even Bigger Ideas, a 5-part podcast series sponsored by State of Flux. You can access the series exclusively on Procurious.

Futurist Anders Sorman-Nilsson wants procurement professionals to ask themselves two crucial questions.

  1. Firstly, think about your future career, your employability, or your entrepreneurial plans for the future. Given the kind of work you’re doing today, can a computer, an algorithm or artificial intelligence do it faster, cheaper, and more efficiently in the future?
  2. Imagine jumping into a time machine and travelling to 2020. You step out of the machine, expecting to find yourself further up the career ladder, successful and wealthy. Instead, you discover yourself lying on the couch, watching daytime television, and no longer employable. What happened?

Roll up your sleeves and conduct a pre-mortem

Business are familiar with conducting post=mortems, particularly after a project or initiative has failed. Sorman-Nilsson advocates for “pre-mortems” instead: “Imagine that in 2020, your personal employment brand is now defunct. You’re no longer employable. What were the trends that you missed? What were the signals you chose to ignore? And what were the education investment decisions that you chose to delay that led to your personal brand’s demise?”

“Finally, ask yourself what change will you make today to prevent that outcome from happening?”

Job-stealing robots are already here

It’s notable that when Sorman-Nilsson talks about time-travel to the future, he doesn’t pick a far-off date decades down the track. He chose 2020, less than three years away. That’s because the AI disruption is happening already. Self-driving cars are a reality, machines have automated a lot of blue-collar work and AI is already impacting white-collar work. “In Japan recently, 34 humans in complex insurance claims processing were made redundant in favour of an insurance firms’ investment in IBM Watson to do those claims instead. We’re really just scratching the surface of what’s possible with artificial intelligence and computing power.”

Four actions to take today to save your career in the future

  1. Examine your skill set and focus on where you, as a human being, might still have some kind of competitive advantage over a robot. Where can your emotional intelligence (EI) compete with, or complement, artificial intelligence (AI)? In a world where everything that can be digitised eventually will become digitised, what are the fundamental human skills that you add to a profession that’s largely about numbers?
  2. Learn to speak digital: “You don’t need to speak Java or know the intimate details of cloud computing and data science, but you need to be comfortable in speaking digital. Digital really is the global language of business for the future.”
  3. Embrace the gig economy: As corporates start opting for robots instead of humans, it’s time to take matters into your own hands and offer your personal brand through increasing entrepreneurship.
  4. Invest in your education: “While we’re already experiencing fundamental shifts, we do have some time to prepare ourselves, but this means we need to really invest in our own learning, and our own agility in the way we position our skills. Aim to invest in at least one new skill every year.”

Anders Sorman-Nilsson is the founder of Thinque – a strategy think tank that helps executives and leaders convert these disruptive questions into proactive, future strategies. His latest book is titled Digilogue: How to win the digital minds and analogue hearts of tomorrow’s customer. 

Are you a CPO in the Asia-Pacific region? Don’t miss out on seeing Sorman-Nilsson’s keynote at PIVOT: The 10th Annual Asia-Pacific CPO Forum in May 2017.

Everything You Need To Know About Bitcoin In One Super Infographic

 The precise workings of Bitcoin are still a mystery to many but here’s everything you need to know about the rise of the digital currency. 

Bitcoin is a digital currency which uses peer-to-peer technology. It doesn’t require a bank for making online transactions worldwide and is also known as the first cryptocurrency that does not use central repositories. As such, it’s classified as a decentralised currency by the U.S. treasury.

The currency was first introduced in 2008 to a cryptographic mailing list. On 9th January 2009, the first version (1.0) of Bitcoin was released and on 12th January, the first transaction took place.

Presently, Bitcoin prices are climbing and there’s a whole host of significant, and widespread, clients. Pennsylvania was the first state in U.S. to  accept Bitcoins back in 2013.

UK bank, Barclays, have revealed that they will be the first to facilitate  users in making charitable donations using the currency outside their system.

Total Processing has created an infographic to explain The Rise and Rise of Bitcoin since 2008.

Toby Dean works on behalf of Total Processing in content creation and marketing. He creates engaging graphics and content that help businesses stand out from the crowd. Over the past seven years has worked with dozens of SME’s in both an agency and freelance capacity.

Negotiation, Trump-Style – The Winner Takes It All

Negotiation with suppliers can be done using hardball tactics, so long as there is no genuine need for an ongoing relationship.

In the New Yorker last year, Tony Schwartz, the ghostwriter for Donald J Trump’s The Art of the Deal said:

‘He lied strategically’.

‘I put lipstick on a pig’.

Rather than inviting more in-fighting than a Taiwanese parliament, let’s focus on the negotiation trap inherent in Trump’s behaviour.

Whether you’re for or against him, Trump’s negotiation tactics are more obvious than a bogey hanging out of your left nostril on a video conference call. Let’s look at his top five tactics:

  1. Huge ambit opening positions – if he wants $2.50, he asks for $1 Billion.
  2.  Flattery – ‘You’re a good guy, a great guy, the best’!
  3.  Bluster – ‘This is going to happen my way, it always does … believe me’.
  4.  Anger (feigned or real) – ‘This deal is so bad, so wrong, you’re making me really mad’.
  5.  Insult and intimidation  – ‘You’re a loser, you’re crooked, you are going down big time’.

These tactics may or may not have worked, but it’s fair to say that at best, they are transactional.

The Winner Takes It All

A deal can be done using these tactics as long as there is no genuine need for an ongoing relationship. The winner takes it all, the loser’s standing small. (Sorry, too much ABBA in adolescence).

Interestingly, a lot of people have asked me if I think Trump’s tactics could be useful for them.

My short response is ‘If you plan on renewing that client, want referrals or would like to be treated as a trusted adviser for a while, then probably not’.

However, when I ask them if they’ve been subjected to these, and other, tactics from clients including senior managers and Procurement, most say ‘All the bloody time’.

Many sales managers and sales people are aware of these tactics being used against them, yet are so keen to get the deal that they succumb, subjecting their company to poor margins, ridiculous stress to meet deliverables and a culture of subservience.

How to address the key tactics in Trump’s playlist

  • Huge ambit opening positions: Plan your own positions, especially your walk away. Politely refuse to discuss offers outside that range. Get back to discussing what the client is trying to achieve
  • Flattery: If you’re desperate for approval, ring your best friend, your mum or ask your dog if he loves you mid-lick. You don’t need approval and validation from clients.
  • Bluster: Ignore or say ‘thanks for sharing that, so let’s look more closely at the issues on the table’.
  • Anger: Keep asking questions like “Why is this so bad? Why do you want to still pursue this then? What would you like to do from here? (my personal favourite).
  • Insult and intimidation: See Anger, or coolly refuse to continue until the behaviour stops.

Unless you don’t care whether your client gets a great result or not, transactional negotiation styles won’t work very well.

Equally, whether they are the President of the United States or the Chief Procurement Officer, you should build a skilful, tactical wall and get them to pay for it.

Elliot Epstein is a leading Pitch Consultant, Keynote Speaker, Corporate Sales, Negotiation and Presentation trainer who gets sales results rapidly. He has coached and trained high profile corporates globally in presenting, selling, negotiating and pitching. Visit Salient Communication for more information.  

This article was first published on LinkedIn.

No More Guessing Games! Time To Use Innovative Data Leveraging

There’s no longer a need for guessing games when it comes to  driving value! Innovative data leveraging is possible in any environment and can help to lead organisations towards an analytics enabled procurement.  

Join BravoSolution’s webinar, Innovative Data Leveraging for Procurement Analysis, which takes place on 28th March.

Many purchasing executives are looking to drive procurement transformation but this is reliant on three major factors:

  1. Level of stakeholder engagement
  2. Ability to align with the overall business strategy
  3. Use of advanced tools and technologies

My research suggests there exists a noticeable gap between procurement executives’ explicit intentions of driving value for the business, and documented results in these three areas.

These gaps can be attributed to a lack of critical data and analytical insight that can support a truly meaningful conversation with the business about spend, supply base, and supplier performance.

Annual budgeting becomes a guessing game, with little input solicited or provided by procurement. It might be due to a lack of data. Or, it could be procurement’s inability to take the lead in order to anticipate and gather the data required. This disconnect is causing significant challenges for businesses.tech

BravoSolution is running a  webinar on the 28th of March, Innovative Data Leveraging for Procurement Analysis.  I will be  discussing a common process that every executive we met with cited as critical for engaging stakeholders and building analytical insight. We call it “innovative data leveraging” (IDL).

Innovative Data Leveraging (IDL)

Innovative data leveraging is a fact-based, data-driven approach to driving change and influencing stakeholders to create procurement value for the business.

The IDL process was described in different contexts, but the common thread was that cross-functional engagement was powered by stakeholder influence through analysis and presentation of data. Of course, leveraging analytics is difficult without some prior investment in procurement systems such as transactional spend analytics, contract management, and supplier performance measurement. However, our analysis also showed that innovative data leveraging is possible in any procurement environment.

The process starts with procurement executives conducting working sessions with business stakeholders to develop a deep understanding of their business strategy, the challenges they face in executing this strategy, and the role that procurement can play in helping to shape and support this strategy. Successful procurement leaders are the ones who can effectively articulate the questions that need to be answered and pursue the data requirements to provide analysis, insight and advice in order to address stakeholders’ business concerns.

Several additional insights emphasize the importance of innovative data leveraging.

  1. IDL was found to be important during any stage of procurement transformation maturity.
  1. The development of IDL capabilities depends on successful initial business engagements, especially when reliable procurement systems and data are lacking.
  1. Advanced analytics in the form of predictive capability is the most highly evolved form of IDL.

What are the benefits of IDL?

At the earliest stages, preliminary insights on spend may provide opportunities for deeper involvement in functional sourcing initiatives, creating a platform for further engagement and integration. In emerging stages, organisations can drive significant insights into total cost of ownership and working capital improvements that go above and beyond simple price leveraging capabilities. In advanced stages, predictive analytics (using both structured and unstructured data) that produce insights into revenue forecasts, supplier risks, emerging market opportunities, and other value drivers begin to emerge.

The innovative data leveraging approach can help organisations at all maturity levels to build a solid path towards an analytics-enabled procurement, in their pursuit of value and excellence. This does more than bridge the gap between procurement’s goals and the overall business strategy.

When you start by leveraging data analytics, no matter what stage your organisation is in, you can build a foundation for innovative capabilities for procurement excellence, like predictive analytics and cognitive computing.

You’ll  learn more about all of these issues in BravoSolution’s  upcoming webinar!

Sign up to join BravoSolution’s webinar, Innovative Data Leveraging for Procurement Analysis, on 28th March