All posts by Procurious HQ

Procurement And The Conversational Century

The social media revolution has allowed for traditional institutions to create personal digital conversations with their audience. We are in the era of ‘The Conversational Century’.

On 30th October, we’re bringing The Big Ideas Summit to Melbourne! Want to join us? Grab a ticket here to secure you seat!

When he was born in July 2013, Prince George of Cambridge became the first royal baby to have his own hashtag. There were over 3.5 million Facebook mentions of the young Prince in the 24 hours leading up to his birth. Fast forward a few years to September 2017 and there were millions of people watching and commenting as Prince George took his first steps into full-time education.

And it’s not just the royal family taking the world of social media by storm…

Pope Francis became the first Pope to engage with a wider audience through Twitter.

Former U.S President, Barack Obama is the author of six of the top-ten most liked tweets of all time.

And  let’s not forget how Twitter helped Donald Trump win the 2016 U.S. election…

Photo Credit : Jon Keegan, The Wall Street Journal

As of August 2017, Twitter hashtags are ten years old and the # symbol is used a stagering 125 million times per day.

The hashtag, which initially punctuated the more lighted-hearted of conversations,  has now become a powerful tool, adopted by politicians, marketers, campaigners and fundraisers alike.

Elizabeth Linder, a Princeton University graduate, is at the forefront of the social media revolution. She has described the intersection between Facebook and the 21st century governance as ‘The Conversational Century’. Linder started working for Facebook as their Government and Politics specialist in 2008, when the company had fewer than 100 million users.

She built up Facebook’s Politics and Government Programme for Europe, the Middle East and Africa. Her role includes advising political representatives, government agencies, public administrators, and think tanks on the intersection of Facebook and modern governance.

What is the conversational century?

Social Media and networking play an important role in the practice of public diplomacy. Facebook, with its individual and country pages, presents opportunities for the public diplomacy sector to engage the public audience in a number of diverse ways. This engagement is part of the conversational century.

Linder defines ‘The Conversational Century’ as the new era in leadership, where leaders are turning outwards to have conversations with the public, aided by the latest social media technology. Social media is forcing traditional institutions and influential leaders to change their communication channels and dialogue.

Traditional institutions, such as the British monarchy, are actively using social media to engage with audiences, using a personal tone to create a digital conversation. The impact of the conversational century is seen through the shifting nature of communication, from a traditional, one-way channel, to a diverse, two-channel communication channel.

Back in 2010, when there were 500 million Facebook users, politicians running for office were only just beginning to explore new technology and start the transition to ‘digital elections’. Now, there are over 2 billion Facebook users, hailing from a diverse range of backgrounds, languages, and socio-economic classes. This gives political candidates and institutes the opportunity to speak to a very broad range of people, all at once.

Conversational Century and Procurement

Procurement leaders, much like political leaders, need to embrace the Conversational Century and the power of social media, in order to engage with a wide range of people and contribute to live dialogue.

Procurement itself will play an active role in the Conversation Century. Social media platforms, such as Procurious and Facebook, offer a unique opportunity for procurement professionals to share knowledge of what is happening in procurement. Companies and industries can showcase what they have done and what they are working on to an active and engaged audience.

Furthermore, as social media is increasingly integrated into corporate life, procurement can use it to play a key role in observing and analysing all sides of the business. It can be positioned between the customer side, internal stakeholders and the supply side.

The increased visibility of data resulting from the management of social customer relationships, social internal stakeholders, and social supplier relationships, will provide procurement with information-rich data which can potentially lead to increased collaboration, agility and faster decision-making.

Want to hear more from Elizabeth Linder? She’ll be speaking about The Conversational Century at The Big Ideas Summit Melbourne. Want to join us in person to discuss the big ticket trends affecting procurement? Grab a ticket here to secure your seat!

Boeing Acquires Robotic Aircraft Maker

Imagine an aircraft that can take off and land vertically, but isn’t a helicopter. It has an intelligent pilot, but there’s no human being sitting at the controls. Boeing has propelled itself into the world of futuristic aircraft with its acquisition of Aurora Flight Sciences.  

Boeing announced on Friday that it will acquire Aurora Flight Sciences Corporation, a company that specialises in advanced robotic aircraft. Aurora already has an impressive portfolio of autonomous aircraft, including vehicles it has been working on with Uber for its flying taxi project.

Much of Aurora’s business in the past has been with the U.S. Military, namely DARPA (The Defense Advanced Research Projects Agency) and NASA. Its aircraft have attracted interest (and funding) mainly due to its advanced Vertical Takeoff and Landing (VTOL) technology, with the small company beating out Boeing and Lockheed Martin last year to build the VTOL X-Plane for DARPA.

What does Boeing plan to do with this technology? The organisation’s press release doesn’t reveal much, but there’s speculation that the acquisition will help bolster Boeing’s own expertise in autonomous aircraft and VTOL tech, with most of that knowledge being funnelled into military aircraft. On the civilian side, the combination of autonomous piloting and VTOL technology are ideal for finally developing the drone taxis we’ve been hoping for. It is unclear whether Aurora will continue to work with Uber on this project.

A report in the Wall Street Journal notes that the acquisition is likely to have an impact on the jet maker’s supply chain long before it produces self-flying planes: “The technology includes … machine learning capability, which could be used to make industrial operations more efficient. Aurora produces composite parts for aircraft and other vehicles, potentially a big attraction to Boeing as it looks to take greater command of its supply chain.”


In other news this week:

Air France Testing Blockchain Technology

  • Air France KLM’s engineering and maintenance division is evaluating the potential for Blockchain to become its new digital ledger for managing replacement parts on in-service aircraft.
  • A spokesperson noted that Blockchain’s resilience, traceability, integrity and disintermediation are well suited to the aviation supply chain.

Elon Musk On Track To Win Solar Battery Bet

  • Elon Musk has announced that Tesla has reached the halfway point of construction on the “world’s biggest battery” in South Australia.
  • The company has a 100-day deadline to complete the construction of a 100-megawatt battery array, or it will build it for free.
  • The batteries, expected to power 30,000 homes, were commissioned as an innovative solution to an ongoing energy crisis in South Australia.

 Image credit: Aurora Flight Sciences

Take the Positive Procurement Pledge

Eight months after its launch, the International Standard for Sustainable Procurement (ISO 20400) has the potential to help procurement professionals stamp out the worst aspects of supply chains worldwide. But what can be done to create a groundswell of support for this voluntary Standard?   

ISO 20400 creates a standard that will enable every organisation in the world, regardless of size, industry, and location, to have a flexible guidance framework on sustainable procurement. The Standard includes seven core subjects, including the environment, fair operating practices, labour issues and human rights, with a range of subtopics under those such as discrimination and gender inequality.

While some businesses have jumped at the opportunity since its launch in April, the voluntary nature of the Standard has meant that many organisations are yet to do so.

Take the Pledge

Kim Andrews, Sustainability Advisor at Good Environmental Choice Australia (GECA), says that the earliest movers regarding ISO 20400 are the ones that will get ahead.

“The conversation has moved well beyond sustainability simply being the right thing to do”, Andrews says. “Business leaders now understand that there’s a whole spectrum of concrete benefits, ranging from building resilience, future-proofing your organisation, managing sustainability risks and getting ahead of future regulatory requirements.”

GECA has recognised the need to jump-start the conversation and education around ISO 20400. To do so, the organisation has launched a challenge for businesses, government agencies, industry groups and non-governmental organisations around the world to take the Positive Procurement Pledge. By taking the pledge, organisations agree to develop, document and implement a sustainable procurement policy to govern all purchasing decisions by 31 December 2020.

“This is a chance to differentiate yourself from the competition and demonstrate leadership and innovation within your sector”, says Andrews. “It makes a lot of sense from a risk-management perspective. Here in Australia, we’re dealing with gas supply problems, water shortages, rising temperatures in summer, and climate change directly affecting resources. Companies need to start looking at these factors, identifying their own risks and planning to build capacity against that, and the ISO 20400 provides the framework to do so.”

GECA provides certifications and ecolabels across a range of standards by working with organisations to ensure they comply across multiple criteria including environmental and social aspects.

“The ecolabels do the hard work for procurement”, says Andrews. “When you see our logo, it means that yes, you can trust that all of the compliance with legal aspects and international trade laws has been addressed. The global nature of supply chains means that having an internationally recognised label is crucial, which is why we’re part of the Global Ecolabelling Network (GEN) that includes 27 members spread across 57 countries and territories.”

With so many certified products available, there has never been a better time for organisations to start their positive procurement journey.

A sustainability roadmap

Complying with ISO 20400 will take time and commitment, which is why Andrews recommends that companies follow a three-year plan to do so:

Year one: Understanding ISO 20400 and how it currently aligns with your own policies. Identifying the risks in the Standard that apply most to your organisation, and how ISO 20400 can be integrated into your ways of working.

Year two: Using the tools and resources available for companies to help build new policies aligning with ISO 20400, and strengthening policies already in existence. Identifying roadblocks such as contracts, trade agreements or a lack of understanding among suppliers.

Year three: Refinement of your organisations’ policies and seeing how far you’ve come in increasing resilience and purchasing certified products.

“Sustainable products are now a $3 trillion business”, Andrews says. “Taking the Pledge gives organisations the opportunity not only to do the right thing but to get ahead of the competition as the sustainability mandate grows.”

Interested in taking the Pledge? Learn more here. Kim Andrews will introduce the Positive Procurement Pledge to attendees at GovProcure2017 in Sydney on 6 December. Click here to learn more and download an event brochure.

8 Reasons You Won’t Want To Miss Basware Connect

Basware Connect is just around the corner, and is shaping up to be one of the highlights of the 2017 procurement event calendar. Procurious has the inside word from our knowledge partner Basware on the top eight things to watch out for on Wednesday 18th October.

  1. The very latest on Industry 4.0

Whether you’re from the procurement or finance function, it’s almost certain your role is already being impacted by the many facets of the 4th industrial revolution. From ‘business as usual’ technologies such as PDF e-invoicing to large-scale futuristic disruptors including blockchain, robotics, machine learning and predictive analytics, it’s up to you to keep up with the latest news on how the revolution is progressing and Basware Connect will help you to do just that!

  1. Engage with a blockchain guru

Blockchain has well and truly arrived, and organisations are scrambling to understand how they can incorporate this technology to reap the security benefits, keep ahead of the competition and avoid getting left behind. It’s a hot topic: Procurious’ own articles on Blockchain have attracted a lot of attention, demonstrating that procurement professionals are increasingly eager to get to grips with what this technology can actually deliver. Simon Taylor, one of the most recognised thought leaders on Blockchain and DLT, previously established Barclays bank as one of the leaders in blockchain thought and action. He is set to deliver one of the most anticipated sessions at the conference.

  1. Learn how to fail forward

We’ve come a long way from the days when failure was seen as career damaging and shameful. Today, businesses are embracing failure as an exciting, enlightening step towards success. Black Box Thinking author and Times Columnist Matthew Syed will demonstrate how to redefine failure in your organisation, taking attendees through his thought-provoking approach to high performance in the context of ever-increasing complexity and rate of change.

  1. Get to grip with megatrends

Don’t miss out on seeing Eric Wilson, Basware’s VP Purchase to Pay, speak about megatrends. We’re biased when it comes to Eric because he’s already proven himself to be a thought-leader in his profession via his excellent contributions to the Procurious Blog. Check them out:

  1. Will my job be lost to automation?

Automation has been impacting human roles for at least two centuries. In the US, over 50 per cent of the population was employed in agriculture in 1900, down to around 2 per cent today. Chair, Non-Executive Director and Business Advisor Natalie Ceeney will examine the coming impacts of AI and machine learning. Natalie has operated at Board level for fifteen years, holding three significant CEO roles. She is currently Chair of Innovate Finance, the members’ body for FinTech, and a non-executive Director on the Board of Countrywide PLC. She’ll be providing attendees with some examples of why some of the biggest brands have failed to stay ahead while others succeed.

  1. Get your questions ready for Basware’s executive team

Eric Wilson isn’t the only senior exec that Basware is putting on the stage. A line-up of Basware’s thought-leaders and top consultants will be presenting, and (importantly) will be available to answer your questions about the platform itself. Highlights include Ilari Nurmi, Basware’s SVP Purchase to Pay, who’ll be talking about “what’s hot right now” in the company’s solution roadmap, Andrew Dos Santos, Principal Business Consultant will be on hand to offer advice and Senior Product Manager Theresa Lacey will be demonstrating new functionalities and future plans.

  1. Immersive workshops

Nobody wants to sit back and listen for an entire day, which is why Basware has included some immersive workshops for audience members to roll up their sleeves and participate in. A highlight is the “demo area”, where attendees can see demos from across Basware’s product portfolio and speak to their experts. You can get hands-on with Marketplace, and even go as far as ordering a pair of wireless headphones to take home with you! Now that’s a valuable takeaway to bring back to the office.

  1. Network, network, network

Sessions aside, this event is an important opportunity to grow your professional network. Take along plenty of business cards, seize every opportunity to meet new people, and follow up by connecting with them on Procurious. To get the most out of the day, be sure to introduce yourself to the speakers post-event. Basware will provide the free beer, wine and pizza, you take the opportunity to network, network, network!

Basware Connect will take place on 18th October 2017 at CodeNode, 10 South Pl, London. Learn more about Basware Connect and register for free today.

Take Some Advice From Procurement’s Top Influencers

Don’t cry because it’s over…. Smile because you can re-live all of the action from The Big Ideas Summit Chicago on Procurious! The event might be over, but you can still  register for The Big Ideas Summit Chicago to access footage  from the event. 

Last week, Procurious gathered 50 of the U.S.’s top procurement and supply chain influencers in Chicago for the Big Ideas Summit for a day of rich discussion on the trends impacting our industry.

We debated whether entrepreneurial skills are something we’re born with or something we can teach…

We learnt why procurement pros must become better intelligence gatherers in preparation for the disruptive forces coming our way in 2018…

And we discovered that it’s possible to engineer moments of serendpity to ensure we meet the right people at the right time!

Couldn’t join us on the day?

Did we slip your mind? No problem! The Big Ideas Summit itself might be over but the global brainstorm continues on Procurious. There’s heaps more content to get your teeth stuck into via the learning area and in our Big Ideas Summit Chicago Digital Delgate Group.

Here’s a taster of some the content you can expect…

Everyone’s A Little Bit Entrepreneurial

Nina Vaca, The Chairman and CEO of Pinnacle Group has experienced a roller-coaster of ups and downs in her 20-year journey from a niche IT business, that was started on her living room floor, to the workforce solutions powerhouse it is today.

She offered some fascinating insights in to her life as a successful entrepreneur and asked us to think of entrpreneurship as a continuum, and not as a noun.

Everyone, Nina believes, has a little bit of entrepreneurial skill. Whilst your position on the entrepreneurial scale whether it be 5, 50 or 100 determines your overall potential, we can all move forward in our abilities to some extent!

Nina also provided some advice on how to spot entrepreneurial qualities during an interview process. How do you identify the visionaries, the ones with fire in their belly who will galvanise the people around them. Find out more below:

Can We Speed Up Real Life?

Greg Lindsay, Futurist, Urbanist, Journalist and Author, is a firm believer in the fact that innovation is fundamentally social. Indeed, case study after case study has demonstrated that the best ideas are more likely to arise from a casual chat around the water fountain than in any scheduled meeting.

So how do we engineer serendipidous moments. Of course, as Greg acknowledged at last week’s event, this is an oxymoron. But it is possible to create the conditions for unplanned encounters with people where ideas can happen. How do you meet the person in the office you should be working with, how do you meet people in the same social speheres you are yet to encounter?

Greg’s presentation was all about accelerating the experience of life, which is all about unplanned encounters. They happen all the time anyway, so the trick is to figure out how we can bend them to our will? Learn more in Greg’s video interview:

You Have All The Info You Need. Now, What To Do With It All…?

Justin Crump, CEO at Sibylline thinks that every procurement leader needs to become a better intelligence gatherer.  Given the rate at which technology is evolving and how global events are impacting the world, it is increasingly difficult for companies to keep-up without considering risk in real-time. Intelligence about the world we live in drives business operations and the better informed we are the easier it is to drive progress.

Justin explained that procurement teams need an effective process to managing the information they have and turning it into something they can use, what he terms an “actionable insight”.

In the past it was hard to get hold of information and now we’re swamped with it with the advent of social media – the challenge is pulling it al together.  In his video, Justin offers some advice on how to do this and outlines the disruptive forces are heading our way in 2018?

Want to see more from The Big Ideas Summit Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action including video interviews with our speakers and attendees. 

Spot the Signs: 9 Ways To Identify Modern Slavery

Contrary to popular belief, the victims of modern slavery are not always hidden away in secret locations. After a 126% increase in reported slavery, Crimestoppers UK has partnered with a labour abuse authority to help the public – and supply management professionals – recognise slavery taking place in their own backyard.  

As procurement professionals worldwide move to stamp out modern slavery in their supply chains, the enormity of the challenge needs to be met with every available tool. Compliance with legislation, accreditation programs, policies and procedures are all very necessary, but so, too, is simply keeping your eyes and ears open when visiting suppliers on-site.

Crimestoppers and the GLAA (Gangmasters and Labour Abuse Authority) have released nine common signs that victims of modern day slavery share. These signs are intended to raise public awareness and encourage people to report their suspicions, but many are relevant for supply managers, too. Keep an eye out for these signs when visiting your first-tier suppliers, and encourage your suppliers to do the same with their suppliers, and so on.

Nine Signs to Spot

Victims of modern slavery may:

  1. Show signs of injury, abuse and malnourishment
  2. Look unkempt, often in the same clothing and have poor hygiene
  3. Be under the control and influence of others
  4. May have inappropriate clothing for the work they are performing, and/or a lack of safety equipment
  5. Be collected very early and/or returned late at night on a regular basis
  6. May be isolated from the local community and their family
  7. Live in cramped, dirty, overcrowded accommodation
  8. Have no access or control of their passport or identity documents
  9. Appear scared, avoid eye contact, seem untrusting

Crimestoppers’ statistics in the UK alone show a 126% increase in information received on slavery in the past six months compared to the previous six-month period. It is this general rise in slavery figures nationwide which reflects why the GLAA has recently been granted a broader remit and stronger powers to tackle labour exploitation across the economy, introducing the capacity to search and seize evidence and investigate modern slavery where it relates to labour abuse and other offences.

Emily Van der Lely, Crimestoppers Lead on Slavery, said: “It’s so awful to hear that slavery is even an issue in this day and age, but we want to reassure victims that it is an issue that is taken extremely seriously, and make it clear to perpetrators that they will be found and prosecuted.

“By launching this campaign, we will educate the public as to the signs to spot and let them know that they can take action on this horrendous crime, without compromising their anonymity.”

Paul Broadbent, Chief Executive of the GLAA, said: “The public need to understand and be aware that modern slavery is happening right now, in and around the communities they live. Exploiting someone for their labour, forcing them to work, using people as commodities – these practices are abhorrent and we need the public’s help to stamp it out..”

Common industries for modern slavery:

  • Transport
  • Warehousing
  • Agriculture
  • Construction
  • Maritime
  • Restaurants/Takeaways
  • Car Washes
  • Nail Bars

 


In other news this week:

EU Data Protection Compliance: are you prepared?

  • The General Data Protection Regulation (GDPR) will come into effect in the EU on May 25th, 2018. Under the new legislation, data subjects have the right have their data erased, obtain information about exactly what data is being processed, receive a copy of personal data concerning them, and fight decision that affect them that have been made on a purely algorithmic basis.
  • Data science company, Dataiku, has published a white paper detailing how organisations that handle big data can start on the path towards GDPR compliance.
  • The report identifies the following five critical challenges: data storage, aligning teams, accommodating data subject requests, data governance and adaptability.

Click to download the report: Five Essential Pillars of Big Data GDPR Compliance

 

Chinese Supply Costs to Rise

  • An authoritative report from The Beijing Axis titled The China Compass has recommended that organisations recalibrate procurement from China as the country shifts to higher cost and higher value-add manufacturing.
  • The report recommends organisations adapt their supply focus by shifting to tier-2 suppliers in China and tier-1 suppliers in lower-cost Asian countries.
  • China is tipped to provider higher-end solutions and technology in industries where it has gained an advantage.

 

Social Procurement Platform a World First 

  • VendorPanel, an Australian Procurement technology company, has launched an online platform called ProcureForGood to drive positive social and economic change.
  • Reportedly the first such platform of its kind, ProcureForGood brings together multiple verified social procurement databases onto one marketplace platform.
  • The platform is the result of a collaboration between VendorPanel, Supply Nation, BuyAbility (National Disability Service) and Social Traders, and is predicted to be powerful for managing the large volume of low-value procurement (under $150k) that exists within government and corporate organisations.

Visit ProcureForGood.

Image credit: Thedreambuildersproject.com

Three Risks Every Procurement Organisation Needs To Manage

Experts around the globe tracked the terrifying advance of Hurricanes Harvey and Irma earlier this month, plotting and estimating the potential damage to life and property as the monster storms approached the U.S. mainland. Can the deployment of cognitive AI lead to more accurate predictions and better risk management?

IBM’s global supply chain has been acknowledged as one of the world’s most complex. With scale and complexity come increased risk, but the Global Procurement team has it covered with its award-winning risk program augmented by the remarkable abilities of the Watson Cognitive Platform.

Even Watson, however, appreciates some assistance when it comes to risk mitigation, which is why IBM has partnered with an e2e cloud risk service provider named Resilinc. With this new capability, the team provides a composite risk score for every one of IBM’s suppliers based on six risk dimensions – financial, location, recovery, operations, resiliency and sourcing.

The three overall risks that the team has built its mitigation strategy around are:

  1. Loss of supply continuity

The fallout from a supply continuity problem are well-known – missed deliveries, plummeting customer satisfaction and lost revenue. IBM’s risk program is therefore designed to protect supply continuity by monitoring and providing real-time alerts on man-made risks, natural forces or climatic threats, along with financial and economic risks.

Nothing illustrates the disruptive potential of a risk event so much as the recent Hurricanes Harvey and Irma. To demonstrate how Watson can augment risk-management ahead of hurricanes and other crises, the team at IBM shared with Procurious the ways in which Watson’s cognitive capabilities were used to track and provide unique insight into Hurricane Patricia back in 2015 – an approach which contributed to IBM picking up a major award for Risk Management at Procurement Leader’s World Procurement Awards.

Using feeds including The Weather Company and the US Navy Weather database, Watson tracked the storm’s velocity, size, category, intensity and simulated scenarios of possible storm tracks. Interestingly, Watson also engaged in “social listening”, picking up local sentiment by tracking Twitter and other social media platforms. At the same time, Watson alerted IBM about every 1st and 2nd-tier supplier in the storms’ possible tracks.

Once the Risk and Supply Assurance teams had the earliest possible indication of Patricia’s potential impact, mitigation plans (such as closing at-risk plants) were readied for deployment. 

  1. Reputational damage

 IBM’s Conflict Minerals Team must be very well-travelled. From Dubai to China, Indonesia to Vietnam, they’ve conducted on-site visits with smelters and refiners to an impressive 10 levels deep in the supply chain, working with them to certify that they are using minerals controlled by responsible sources.

Every supplier must sign the Electronics Industry Citizenship Coalition (EICC) code of conduct, which IBM has adapted as the single code across its supply base. It establishes standards regarding safe working conditions, fair and dignified treatment of workers, and environmentally responsible and ethical operations. To this end, IBM has conducted +2000 3rd-party audits across 34 countries. 

  1. Regulatory noncompliance 

Although noncompliance isn’t as exciting as a hurricane tearing through suppliers’ facilities, the impacts can still be dramatic. Noncompliance can result in fines and penalties, product impoundment, revenue reversal and adverse press.

IBM’s Global Procurement Environmental Compliance team ensures all products comply with environmental directives, laws, regulations and standards; made incredibly complex by the global nature of the organisation. The team tracks changes in regulations, such as eco-design or restrictions of certain chemicals, then determines if the change will affect IBM products and plots a path to compliance accordingly.

Risk and Reward

IBM Global Procurement’s efforts in risk mitigation were recently celebrated at Procurement Leader’s World Procurement Awards, where the team won a major award for Risk Mitigation, and a second award for its transformation program.

Procurious is working with our Knowledge Partner, IBM, over the next 12 months to promote cognitive procurement to our global community. To learn more about IBM Global Procurement, click here.

Can You Make Decisions Under Fire?

Are you struggling to lead or motivate your team through difficult times and under extreme pressure? We’ve got some top advice from someone who knows a thing or two about making decisions in extreme conditions…

Register now  as a digital delegate for The Big Ideas Summit Chicago!

“There are only two types of leadership.” begins Andy Stumpf “good (effective) and bad (ineffective).”

In today’s world, senior managers often struggle to effectively  respond and adapt to change. But the world is full of change and it’s crucial that our procurement leaders are flexible enoughto respond to the unexpected, to “read the tea leaves and meet the challenges of the real world.”

Andy  began his U.S. military career at the age of 17, transitioning from the position of an enlisted soldier, to an officer, and then,  in 2002,  he joined the most elite counter terrorism unit in the military; SEAL Team Six.

The unit, which is tasked with conducting the nation’s most critical missions, has become the inspiration for a number of Hollywood movies and books.

If you ever needed a man who knows how to plan for and adapt to change, Andy Stumpf is your guy! He’s strategised and executed hundreds of combat operations throughout the world in support of the Global War on Terror.

At Procurious’ Chicago Big Ideas Summit, Andy will draw on his wealth of leadership experience to talk about the intersections between business and combat, decision-making and empowering procurement teams.

Building the greatest leaders

“Business and combat are defined by their similarities, not differences and the theories of successful military leadership and successful business leadership are identical” Andy believes. It’s possible to apply the same principles and philosophy to your procurement teams because it’s really only the arena that differs.

“60 per cent of the time, organisations want me to talk about leadership. In fact, the definition is always the same. What can change is the way in which you approach leadership.”

So, how do the military build strong and competent leaders?

“Leadership is about empowering your people. From day one in the military we are taught, and it is enforced, that in the absence of leadership you must stand up and take control.

“Instead of creating individuals that think reactively in nature, we instead create individuals that think proactively.  You don’t have to be in a leadership position now to think two or three steps ahead.  In doing so, when a decision presents itself you’ll already have an answer for it.”

Does Andy believe these skills can be taught or are natural leaders exactly that?

“neither successful teams or leaders occur by accident, these are skills that must be learned, practiced, and refined. Navy SEALs are successful because of how we select, train, and lead our teams.

“Nothing in that process happens accidentally, everything is calculated. We demand leadership and accountability from each individual starting from the first day of training. We prioritise the individuals to our left and right, and the goal of our team over personal success. This philosophy is diametrically opposed to what is often found in society, and requires a structured approach and prioritisation from leaders to be successful.”

And Andy has some strong words of advice for any over-confident leaders out there. “The 1st leadership principle within the SEAL Team is ego; if you have a massive ego you’re more concerned that your ideas and strategy is being used as opposed to striving for success of the team. You can’t meet the challenges of the real world this way!”

Plan, plan and plan some more!

“We plan for everthing in the navy. We often say that if you want to shut down the military, you simply need to shut down powerpoint!

“Every stage of a plan gets one slide and there might be between five and seven slides on the ‘what-ifs’, the contingencies. Where will we land this helicopter? Where is the nearest location for medical treatment and what alternate options do we have?” When, as Andy points out, precisely 0 per cent of planning goes as expected, contingencies are everything!

“You make primary, secondary and tertiary plans because you don’t want to have make snap decisions in a crisis. You need to be able to fall back on stable procedures”

And of course, it can’t hurt that contingency planning makes you look like something of a genius! “It’s really hard to make difficult decisions in a crisis because you’re in a time compressed environment and you may have people’s lives depending on you.  We plan for 24 -72 hours and there are 5 phases per plan. Each phase has 5-7 ‘what if‘ contingency plans because, at the end of the day, you don’t want to make decisions in a crisis, you want to be able to draw on a branch diagram.

“It’s the contingency planning especially in the SEAL teams that makes the difference between success and failure in moments of crisis.”

What can our procurement teams learn from this? Spend a lot more time planning, for starters! But Andy also reinforces the value in having baseline standards to fall back upon. “Businesses should always fall back on standard procedures so people can come together, with a clear knowledge of the protocol. This is especially crucial when you’re working under restrictive time constraints.”

Andy’s final words of advice? “Don’t get attached to your plan -get attached to success!”

Want to hear more from Andy Stumpf or submit your questions for him? On 28th September, Procurious is bringing The Big Ideas Summit to Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees. 

4 Cognitive Tools That Are Advancing Procurement

Don’t let yourself be overwhelmed by the magnitude and potential of cognitive technology. The greatest journeys start with that all-important first step and, when it comes to AI, you just need to get started!

We’re live from the Big Ideas Summit Chicago! Register now as a digital delegate to follow all of the day’s action!

There’s a lot of buzz around how ready our industry is to start using some of the newest cognitive technologies. But the time really is now for CPOs and procurement organisations to put a stake in the ground on where they want to go in the future with regards to digital and cognitive capabilities, to put the roadmap in place for how they want to get there.

We feel your cognitive pain!

Graham Wright, IBM Vice President, Global Procurement and Cognitive Procurement Services, fully understand procurement’s pain points and challenges when it comes to implementing cognitive technology and digitising the function:

  1. Outing the analog!–  Many procurement teams are still working in a reactive and transactional world without digitised processes to automate transactions.
  2. Powering the marketplaces!– From Graham’s experience, he sees very little in the way of supplier catalogs and automation driven from those catalogs. “In a digital world we should be leveraging marketplaces – ensuring   we make content available to all of the users so they can find what they need, click on it, and drop it in their shopping basket easily.
  3. Predicting demand – Current practice is to look at the spend information from historical data in order to make decisions. Nowadays, there are ways to anticipate and predict demand so procurement can look forward, instead of back.
  4. High value contribution – Lack of digitisation and lack of insight means that key personnel in strategic sourcing and category management are not able to focus on stakeholder management, interaction with the user, and negotiations with the supplier

4 cognitive tools you can use…NOW! 

But in spite of these challenges, and whether you like it or not, cognitive technology is coming to change the world.

Not everyone will be ready to jump into the cognitive capabilities. But it’s not an all-or-nothing proposition; you can plug in cognitive at any step. Many of these tools are proven and in use through IBM Procurement today and are being prepared for a broader market. Graham took us through four of these cognitive tools.

  1. Supply Chain Risk Insightscognitive solution fetches unstructured data from social media and creates alerts ahead of time for category managers who can take preventive action to reduce or eliminate impact from such challenges. Effective demand forecasting and proactive risk management is critical to a responsive and cost effective supply chain.
  2. SupplierIQcombines data gleaned through unstructured sources (e.g. social media, news feeds, competitor websites, corporate social platforms, blogs and forums etc.) and contrasts that with other data sources to generate insights that were earlier not accessible. A category manager could actually stumble upon a new supplier for a category that was not being considered; or actually drop an existing supplier because of the potential risk an existing supplier by connecting performance with market information.
  3. PricingIQ can save category managers millions of dollars by tracking contract prices in contrast with dynamic market prices rather than sticking to contract prices that are struck for a number of years. This tool allows IBM Procurement Services category managers an additional 3 – 10 per cent in savings in key spend categories over and beyond what’s already been saved. Pricing IQ was awarded Most Innovative Use of Technology by CIPS in 2017.
  4. Cognitive Buying Assistant(CBA) drives user adoption and spend under management and ease of use. IBM are designing superior user experience by applying cognitive tools on a mobile app that can recommend most relevant items to buy based on user profile, usage patterns as well as sentiment analysis gleamed out of feedback from other users. Ordering something in your professional capacity will soon be as easy as ordering products in your personal life. This is a critical driver of user adoption since a better buying experience will lead to better compliance and better savings for the user and business.

Your path to cognitive 

Everyone’s roadmap will be different and every procurement organisation comes into this maturity scale at different points. Where some larger procurement teams are already embracing technologies like Blockchain and Dynamic Marketplaces, others are not quite there.

If you’re of the latter group, start by asking yourself how you can get more out of the data you’re sitting on. How can you gain better insights and advanced analytics from all the spend and transactional data that flows through procurement?

Lastly, consider whether you have the right talent to help you along on your journey.

With more robust data and insights, the more you will free up your people to do what they are meant to do!

Live From The Big Ideas Summit

Want to hear more from IBM’s Graham Wright? On 28th September, Procurious is bringing The Big Ideas Summit to Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees. 

 

4 Ways To Engineer Serendipity In Your Workplace

Has a chance encounter at your workplace water fountain ever led to something unexpected and incredible? Greg Lindsay has some unique advice on how to engineer these moments of serendipity…

Register now  as a digital delegate for The Big Ideas Summit Chicago!

Innovation Is Fundamentally Social – Greg Lindsay

Greg Lindsay, Futurist, Urbanist, Journalist and Author, is a firm believer in the fact that innovation is fundamentally social. Indeed, case study after case study has demonstrated that the best ideas are more likely to arise from a casual chat around the water fountain than in any scheduled meeting.

They are the result of serendipity – a chance encounter at the right time by the right people, regardless of their rank, affiliation, and department or whether they even work for the same company.

The most innovative companies in the world are busy engineering serendipity and harnessing social networks and new ways of working designed to cultivate the discovery of new ideas. And that’s exactly what procurement should be doing!

Ahead of his keynote presentation at The Big Ideas Summit Chicago, Greg outlines four ways that procurement pros can create moments of serendipity

  1. Bring a stranger to work day

Some organisations, in a bid to foster workplace innovation, “invite strangers in off the street to work side-by-side with their employees”.

Of course, this doesn’t literally mean inviting passers-by into the workplace at random. You might choose to invite certain people to work in a designated, neutral area in your office, whether they be of a specific profession, have a desired skillset or work for a particular company.

Diversifying your workplace and encouraging your employees to work alongside different people is a surefire way to accelerate collaboration and innovation.

Greg suggests compiling a list of the 10,000 coolest people in the world, the ones you’d love to encounter or work with. When they’re in town, invite them in! With the digital tools available in today’s world, this approach is easy to maintain/

“Haworth, an office furniture brand,  created a VIP club for their furniture show rooms. They sent out invites to 150 desirable people, encouraging them to use the showrooms. Why not make it a 10,000 person club-house instead and cultivate it to build innovation within your company?”

2. Out with the offices!

Greg has frequently cited organisations such as Facebook and Google, as the companies that are revolutionising the workspace.

“In the future, the workplace will look like your house or a hotel, not the rigid workplaces we see today. There’s only been one century of office-based work spaces. Surely there are other, better ways to do it!”

“There will be more fluid encounters and mixing of employees across the breadth of an organisation.” Think couches, not desks and spaces that are highly configurable and adaptable. After all “People don’t have ideas in an office that never changes shape!”

At Facebook, employees vote for teams they wish to work with by physically wheeling their desk to a different project.

“We often think the value we contribute is based on the amount of focussed work we do but our creativity is not at it’s best in this environment.”

3. Social Media

Social media is a vital force in helping to create moments of serendipity for your organisation. Individuals or companies can broadcast thoughts, surveys, opinion polls and obtain responses from across the globe in a matter of seconds.

For Greg, social media was invalubale when it came to writing his book; enabling him to chat and engage with like-minded people.

“[Social media] speeds up a development process,  quickly uncovering what people have in common and uniting them. Procurious is a key example of this. There are opportunities for learning and peer-peer innovation.”

 4. Let people find you

It’s all very well seeking serendipity but it’s also important to allow people to find you!

That means doing a bit of the leg work and making yourself available! Whether it’s spending more time in the corporate cafeteria where you might run into co-workers, breaking your daily routine or finding envrionments where you are likely to meet like-minded strangers, every little helps!

Vary your information diet and talk to different people in your office – you might be surprised at what inspires you and who you inspire!

Identifying a moment of serendipity

How on earth do you know when a genuine chance encounter has the potential to be the start of a brilliant idea, or even multiple brilliant ideas?

In short- you won’t! As Greg points out “it’s very rare to have that classic anedocatal situation where you chance upon a solution or brilliant idea.”

It might be a hunch, a spark of an idea or a shared interest that allows you start creating and innovating. Only further down the line will you discover that the problems you solved or inspiration you gleaned actually fit into a large issue.

Live From The Big Ideas Summit

At The Big Ideas Summit 2017, Greg shared his techniques for how cities, companies, and individuals alike can learn faster via engineering serendipity.

 Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees.