When the Data Strategies Align….

There is a growing need for consuming data almost at the same time as the data gets generated – but how do you get your procurement data strategy straight, and align it with the corporate strategy?

There are many factors that require careful consideration to bring about effective cognitive solutions.

It’s akin to conducting a group of musicians – it might be possible (easy even!) to attain a pleasant sound from a solo instrument…

But, if expertly managed,  you could accomplish a symphony from the entire orchestra!

This week, our podcast series will guide you through the five steps required to conduct a dazzling cognitive symphony.

On Day 5 of Conducting A Cognitive Symphony Peter discusses the importance of having a single data strategy across procurement, how to align this with the corporate strategy and the value in creating a Chief Data Officer role.

A single data strategy

“It’s very important in today’s world [to have a single data strategy]” begins Peter “because there is a growing need for consuming data almost at the same time as the data gets generated.”

“New potential data sources arise every day. This requires a strategy in place that can be applied quickly and efficiently which covers the entire life cycle of the data from acquiring the data, through curation to consumption.

“And without having the right data strategy or a comprehensive data strategy in place that covers the anterior life cycle of the data, businesses may face some issues very quickly.

“They will not have an understanding of what data they acquire, what that data is and what business that data provides to them.

What about the importance of having a single point-of-contact, a Chief Data Officer, for smaller organisations? Is it still important that, even the role isn’t an individual job in itself, that there’s  a single person who has accountability, and responsibility for data?

“Ideally, yes” says Peter.  “A dedicated person, not necessarily a full-time person.

“And the data officer can be supported by data stewards, data management, data engineers. It’s really up to the organisation – how they want to set about a process for those right now.”

Procurement data vs Corporate data

Does procurement’s data strategy typically feed into a corporate data strategy of which procurement just becomes a subset?

“Corporate data strategy, if it exists,  is likely addressing a good portion of what a procurement specific data strategy would address,” explains Peter.

“If that’s the case then the implementation and the execution of the data strategy in Procurement will require less efforts and also gives the opportunity to put more focus on the procurement specific elements of a data strategy like implementing the right business process for capturing data in better quality from suppliers.

“There are lots of things that are significant between procurement data strategy and corporate data strategy. Likely if a corporate data strategy exists then it covers a significant portion of what the procurement data strategy would need to cover because in the end it’s just data. But with some specifics for procurement.

“Procurement does not need to invent new things that’s likely covered by the corporate data strategy.”

“What procurement teams can do better, is start focussing on specific things- the most crucial things. For example, buyers don’t always consider the importance of off-loading data from suppliers.

“Procurement can do a lot. But it just has to get the right data.”

Striving to conduct a cognitive symphony but in need of some expert guidance? Our podcast series runs throughout this week and will have your orchestrating cognitive success in no time! Register here.

Procurement Leaders: Stop Talking About Headcount Reduction!

If you want your procurement teams to be more open to adopting cognitive solutions and less scared of them, stop talking about headcount!

There are many factors that require careful consideration to bring about effective cognitive solutions.

It’s akin to conducting a group of musicians – it might be possible (easy even!) to attain a pleasant sound from a solo instrument… 

But, if expertly managed,  you could accomplish a symphony from the entire orchestra! 

This week, our podcast series will guide you through the five steps required to conduct a dazzling cognitive symphony. 

On Day 4 of Conducting A Cognitive Symphony Marco Romano – Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM talks on the common pitfalls in the adoption of cognitive solutions, the most impactful actions procurement pros can take to increase the speed of adoption and how to overcome the fear factor!

The Fear Factor

“How the leadership works with the teams to remove barriers (operational, physical and psychological) will ultimately have a huge influence on the rate and pace of adoption of cognitive and analytics solutions” explains Marco in his white paper. 

When it comes to the fear factor, “there is no doubt that there is a concern that rich insightful analytics will show opportunities that imply the practitioners have historically failed in teir jobs.

“There is also no doubt that there is fear that cognitive solutions could replace some of the activities currently carried out by practitioners.”

One factor that causes this fear is the “poor messaging on why you want to commit these tools, and what the desired outcome is which creates fear and resistance, to adoption and change.”

How can organisations manage their employees fear to ensure the adoption of cognitive solutions isn’t impeded?

Stop talking about head count!

When procurement professionals look at something that brings new information and insights that haven’t been available before, it leads them to question a number of things:

Is it a challenge to what I’ve done before?

Is it a challenge to the accuracy of what I’ve done before?

and, ultimately

Is this technology going to make what I do now redundant?

“fear is something that we see. CPOs are constantly talking about robotics, automation, right?”

“And very often, I hear head count being brought into the discussion, Head count reduction being brought into the same discussion with cognitive analytics, and whilst that might be the eventual outcome, I think it’s a dangerous way to enter into the dialogue”

“If that is the primary driver, to reduce head count in the organisation, I find that very often that’s reflected in your metrics. It’s reflected in the behaviours. And in turn, it’s reflected in poor adoption, and resistance by practitioners.”

“You’re creating that fear of job security. And invariably, I find practitioners push back, and they’ll find they spend their time trying to justify why a tool won’t work for them.”

“To overcome this you need the right methods, but secondly, and very importantly, I think you need to provide practitioners with the road map on how to change, and sharpen their skills in this changing environment.

Educate your teams

Procurement professionals need to have an understanding of the strategy and impacts new solutions will have.

You need to be able “to show the practitioners how the change benefits them, not just the enterprise” Marco explains.

“And this sounds really basic, but it is so important. [You need to be able to show them]  I’m going to help you spend less time on those lower value, tedious, time-consuming tasks, allowing you to focus on the higher value activities.  Most professional practitioners that I know, prefer to spend their time on those higher valued tasks -negotiating with suppliers, rather than crunching numbers”

That’s the first thing. But the second thing  is, providing them education and training, on this new data skill set. I think you very quickly erode that resistance. They see a path for them, within the enterprise, within the organisation, but you’ve given them a marketable skill, which in turn removes resistance and fear.

“I’m not talking here about turning practitioners into data scientists. I’m talking about arming them with knowledge about how they impact data, teaching them the art of the possible, with regards to how technology can help them to be more effective consumers of that data, and insights.”

Striving to conduct a cognitive symphony but in need of some expert guidance? Our podcast series runs throughout this week and will have your orchestrating cognitive success in no time! Register here.