Category Archives: Generation Procurement

7 Ways IoT Is Already Changing the World

From connected healthcare to retail and water management, the IoT will revolutionise the way we live. It’s already having some pretty major impacts…

Agor2012/Shutterstock.com

This article was written by Gauri Bapat.

The wave of connectivity had extended beyond phones, laptops, and tablets and is permeating into our daily lives. With an explosion of connected devices in the market and a healthy adoption rate, we can safely assume that we are taking confident strides into the ‘connected life’ made possible by the IoT.

A report by Gartner suggests that by the year 2020, the number of connected devices across technologies will touch 2.6 billion. As we move towards an increasingly automated world, this technology will be used to improve the productivity and quality of life and industries alike. The IoT is poised to grow from a technological phenomenon to one with a more global and social impact…and the cogs are already turning in that direction. Things that we once saw only in sci-fi movies and Steven Spielberg specials are a reality today.

Let’s take a look at how the IoT is already changing the world we live in.

Manufacturing

IoT in manufacturing is ushering in the fourth Industrial revolution (Industry 4.0) that aims to make manufacturing smarter. Smart manufacturing involves the use of sensors that are retrofitted on existing manufacturing equipment to improve efficiency and performance. Siemens ‘ PLC manufacturing plant in Amberg, Germany, has implemented the principles of Industry 4.0 and has completely automated the production of their automation systems. Post this implementation, they witnessed a 99.99885 per cent “perfect” production quality rate. Now that’s impressive!

Airlines

The airline industry has seen massive adoption of the IoT in order to increase operational efficiency and drive the age of ‘connected aviation’. Virgin Atlantic has every single component of its Boeing 787 attached to a wireless airplane network. These incredibly connected airplanes use IoT data to evaluate everything right from the airplane’s performance to issue identification.

So, if a Virgin Atlantic jet reveals low-performance mid-flight, this information is related to the ground staff real-time. Thus, when the flight lands, the airport engineers are ready to solve the problem. Other airlines such as KLM, Qantas, Lufthansa, and Delta are also using IoT to improve aircraft performance, discover new business insights, and maintain greater efficiency.

Airports such as Miami airport, London City airport, Helsinki Airport, amongst otherS, use IoT to track passengers, prevent bottlenecks and queues, offer personalised services to the customers, track assets and also deliver location-based services to the travellers.

Water Management

One of the areas where IoT has made a tangible difference is in water management. Proper use and management of water have been a problem that many cities across the globe have been battling. IoT has been put to work in cities such as California and Bangalore in India to not only identify the cause of water shortage but also to identify avenues as to how water management can be optimised. The Bangalore Water Supply and Sewage Board (BWSSB) employed an IoT monitor to manage the complex water distribution system by creating an operational dashboard using IoT. They realised that almost 45 per cent of the water supplied by BWSSB is unaccounted. San Francisco employed smart meters to measure water consumption and notify their customers when their water consumption exceeds the specified limit or if, for example, the water is left running continuously for 24 hours.

Retail

The retail industry has witnessed a huge adoption of IoT. IoT implementation in retail has been done to not only improve the supply chain or to create more engaging and tailored marketing campaigns, but also to make shopping a more interesting experience. Retailer Rebecca Minkoff created the ‘connected store’ using RIFD tags on each piece of clothing and used smart mirrors in the dressing rooms. The customers could try on the product, and also take a look at other looks, available colors and sizes without even leaving the dressing room!

Target has been using beacons across 50 stores to provide personalised offers and present their customers with hyperlocal content to make shopping more exciting for their shoppers. Ralph Lauren’s Polo Tech apparel, which is a smart workout shirt, monitors vital activities of the user on a real-time basis and enables ongoing health monitoring.

Connected Energy

2016 saw us looking towards connected energy solutions to help us save energy. IoT products such as Google Nest, ecobee3 thermostat, the heating system Hive by British Gas have seen huge adoption to track and measure energy consumption. 46 per cent of technology enthusiasts in Germany and 42 per cent in the US already own a connected energy solution and save almost 72 per cent on their monthly utility bills – that amounts to a USD $80 reduction in the monthly bill.

Lighting Control

Moving beyond the smart lights of a connected smart home, smart lighting control can generate huge financial savings by controlling street lights. Mayflower CMS successfully employed IoT to control and monitor an excess of 180,000 street lights, bollards and signs in the UK and Ireland with its largest installation in Hampshire that has over 90,000 nodes. The Hampshire City Council has been able to reduce energy consumption by 21GW/hr per annum which is a reduction of 40 per cent and has successfully reduced carbon emissions by approximately 4000 tons per year.

Connected Healthcare

The global IoT healthcare market is expected to touch USD 160 billion by 2020. The last few years healthcare has witnessed wellness sensors to surgical robots to improve efficiencies and better patient outcomes. Ingestible sensors help measure if patients are taking their pills on time and helps medical practitioners manage their patients remotely. Barton Health, a 62-bed health system in rural Lake Tahoe, California, is one of the first users of the ingestible sensor by Proteus Discover, a Digital Medicine to help patients suffering from diseases of the central nervous center such as schizophrenia and place the patient in the driver’s seat regarding their health management with the help of technology.

“When wireless is perfectly applied, the whole earth will be converted to a huge brain, which in fact it is, all things being particles of a real and rhythmic whole. We shall be able to communicate with one another instantly, irrespective of the distance.”– Nikolai Tesla

This famous statement by Nikolai Tesla predicts the invention of the smartphone at a time when the mere thought of such an advanced device was nothing but unimaginable. Take a closer look at the statement and you can see that Tesla foresaw the impact of the Internet of Things (IoT)… a world that becomes so connected that it becomes one ‘huge brain’.

What Tesla spoke of decades ago, we are experiencing today

Gauri Bapat is Director, Strategic Business at Inteliment. This article was orginially published on LinkedIn.

B2B Is Dead. B4B Is Born

B2B or B4B? Does it really matter? After all, what’s in a title? Perhaps everything….

BoxerX/Shutterstock.com

Isn’t that a bold idea?

What’s in a title? Maybe everything.

Something that is very personal and possibly deep. A worldview that can shift our thinking and inspires us to do few things totally different.

Nah. How can that be? How is it possible?

How can you change a word, a preposition, ‘to‘ and replace it with ‘for‘ and call it a game changer?

We have seen it all. Haven’t we all been in business far too long to be moved by play of words. A small change from ‘To‘ to ‘For‘ means nothing.

Well, I don’t think so. And I’ll tell you why in a moment.

Let’s dive deep inside and explore the nuances that can help shape the idea.

Defining Business to Business (B2B) 

Business to business, also called B-to-B or B2B, is a type of transaction that exists between businesses, not consumers. This term got popular around the 1998 dot com era when the internet phenomenon was at its peak.

It was an acronym used to communicate how commerce flowed between two business entities. This term became so popular that it prefixed everything that connoted a transaction between two businesses.

B2B procurement, B2B buyer, B2B marketing, B2B sales, B2B market place, B2B e-commerce, B2B market research, B2B Software, B2B Offering and many more.

The idea caught on. It flourished. It also spawned into other variants. Say B2B2C or even B2B2G (where G is Government).

It was going well. Until now.

So why do I think that this terminology should die?

Simple reason. The word ‘to‘ in B2B is no longer relevant. To explore why this is not relevant we will need help of a dictionary.

Here is the English dictionary meaning for the preposition ‘to‘:

expressing motion or direction toward a point, person, place, or thing approached and reached, as opposed to from”.

In line with this meaning, so far businesses have marketed to, sold to, pitched to, offered services and products to and provided support to other businesses.

This was very much needed as businesses needed to take their products, services and support to other business. It metaphorically meant the direction was from left to right. Just like this arrow mark ‘—->’. One was the seller and the other was the buyer.

The word ‘to‘ is so ingrained in our psyche, like the arrow, the stress was more on ‘motion or direction‘. Our entire organisation structures were built to make, sell and service our customers. Along with it came top-down command and control, various functions/departments, centralised structures, and standardised routines.

To‘ was programmed deep in the business model. Resulting in a path dependency.

We are all perfectly ‘ locked in‘ by behaviours that connote – motion and direction from left to right.

Now, let’s use another lens to see the world.

The new world order – Business For Business (B4B) 

Before we explore this new terminology, let’s understand the meaning of the preposition ‘for‘ from English dictionary.

with the object or purpose of “

“suiting the purposes or needs of”

In the digitally connected era, as Nilofer Merchant points out in her book “11 Rules for creating value in the Social Era“, successful businesses like Uber, AirBnB, Tesla, GE Digital, Alibaba, Etsy, KickStarter create value through a different paradigm – networks, collaboration, community, social purpose and openness.

They are businesses built FOR businesses and consumers.

They are businesses built suiting the purpose and needs of their customers. There can be many sellers and buyers across a community.

Quoting General Electric, a 124 year old company, was once a seller of products to customers. Now it is a digital platform company with many buyers and sellers. It has now transitioned to a B4B company.

When you do something FOR somebody you do care for the other business or person. Not just for yourself. The preposition ‘forhumanises the act.

Suddenly you shift from providing ‘action and directionto a business and think about what can you do for another business. You can even ask, ‘Can I exist for my client’s success?“. This right away injects empathy into your business.

Business For Business. B4B. Injects empathy in the language.

In doing so, you will allow yourself to ask fundamental questions that can shift your thinking and behaviours:

  • What should be our business model that allows our customers be successful?
  • How can I structure my organisation for my customer’s success?
  • How can I create products, solutions and services for my clients to be successful?
  • How do I create a Go to Market model for my customers to engage, experience and buy?
  • How do I create experiences for my customer so that I can partner for an extended life time value?

B4B shifts thinking from you to your customer. It brings purpose and empathy in everything you say and do.

Over a period of time it perhaps will bring your business closer to the customer. Isn’t that we all want?

It all starts with one change in preposition – substitute ‘to‘ with ‘for’.

Magendar Rajasekaran is People Success Evangelist at Agility Nexus This article was orginally publishd on LinkedIn.

Surviving The AI Revolution

Will you be a survivor of the AI revolution? You’ll need to be well equipped and prepared for anything…

This article was written by Naveen Joshi.

Artificial Intelligence is speeding the robot revolution and can be responsible for replacing a huge portion of the human workforce with machines, and there’s nothing we can do to stop it, other than preparing for AI revolution.

Artificially intelligent robots are finally set on replacing humans in the labor pool, and due to this, the society can shift dramatically. Until the AI revolution is complete, humans can either try to slow the automation of the workforce or start preparing for AI.

If the popular media are to be believed, AI is coming to steal your job and threaten your life, as we know it. The AI revolution is indeed underway and for ensuring that you are prepared to make it through the times ahead, we’ve listed a few guidelines for you.

Recognising the AI Revolution

The first step for winning every conflict is to understand your target. It is important to acknowledge that the concept of AI is not in the future; it is already here and people are using it on a daily basis. For example, because of the AI technology, Netflix knows what to suggest you watch next, and Google predicts where you are heading when you jump in your car. AI also encompasses disciplines such as machine learning, using which companies are finding patterns in data and learning to predict trends, as well as speech processing, computer vision, and robotics. Moreover, it also encompasses deep learning, which is inspired by the model of the brain. Deep learning systems work by mapping inputs to a set of outputs based on features of the thing being examined.

Identify where AI Thrives

With sufficient knowledge of AI technology, you can now start to understand where AI is optimally positioned to take over. Have a look at your market trends and conditions and take note of tasks that require huge amounts of big data processing. For example, companies are now looking through everyone’s click patterns on Google to figure out what someone wants.

Essentially, AI works best for any task that requires a huge amount of repetitive processing. If this sounds like your job, you might have to start thinking of a survival plan. You can also access websites that evaluate your automation risk, to find out what researchers have calculated for your field.

Devise an Action Plan and Start Preparing for AI

The best strategic action plan is to form a treaty. You should accept that AI will increasingly become a part of our society and look for possibilities to collaborate. There is a huge potential for AI to assist in places where humans are today falling short, precisely because of the processing power. Companies are already using AI for aiding clinicians in medical diagnosis, personalizing customer experiences, and creating agricultural methods that reduce the cost to the environment. AI has the ability to learn very well but it cannot learn flexibly. You can. There are new jobs now available that did not exist a few years ago. If you are allowing AI to do the grit work, this can create an opportunity to embrace the attributes that humans excel at, namely social intelligence and creativity.

As with every big and impacting change, there are fears about new technology like AI. Ultimately, the way you can survive the impacts of an AI revolution is by embracing the partnership. By understanding the potential that AI has to improve the world, you can look around for those opportunities to implement positive change.

Naveen Joshi is Director at Allerin Tech Pvt Ltd. This article was orginally published on LinkedIn. 

The Impact Of Blockchain On Procurement

Blockchain won’t wait for you to be ready for it, which means it’s time to brush up on your knowledge and understanding right here, right now! 

Vadim Sadovski/Shutterstock.com

Blockchain technology will not only impact procurement and procurement professionals but is expected to be more pervasive in our business and personal lives than the internet itself. To put the enormity of impact on procurement and procurement professionals in perspective picture yourself twenty years ago trying to explain how the Internet is going to change things. Where would you even begin?

Like the Internet the Blockchain is a network. In the case of Blockchain comprised of decentralized “ ledgers”, many are referring to it as Internet 2 or more commonly the Internet of Value or Internet of Trust.

The benefits

The most important thing to understand is that Blockchain addresses many of the most critical problems we’ve encountered doing business on the internet.

1)  Security: Practically speaking the Blockchain is unhackable.

2)  Transactions are verified by network participants (consensus), eliminating the need for third-party intermediaries’ (banks) costly, time-consuming and predominantly manual settlement processes. In addition to slowing down our supply chains banks alone have estimated these processes are costing them more than $20 billion annually.

3)  Eliminating high transaction processing costs for high volume/low margin retailers who accept credit cards could significantly add to their bottom line.

4)  Once transactions are verified they are secure and immutable. (unchangeable)

5)  The immutability of the Blockchain means that supply chain provenance can be assured. This is particularly important for conflict minerals, pharmaceuticals, food and many other supply categories where provable chain of custody is critical.

6)  Payments can be made directly from buying entity to selling entity “ledgers” by-passing intermediaries (banks, brokerage, clearing houses, title companies, etc.)

7)  Payments can be automatically triggered based on the codified terms of “ Smart Contracts” stored in transaction blocks.

8)  Blockchain capabilities will change, if not eliminate the role of accounts payable and accounts receivable departments.

9)  Blockchain enables the concept of micro-units and micro-payments. It is estimated that approximately one -third of the world’s economic opportunity exists for products and services such as energy or digital rights where backend settlement costs currently constrain those markets.

10) It is also estimated that 25 per cent of the global population does not participate in the global economy because they have no bank accounts and/or credit cards. Without these tools they cannot participate in the Internet economy. The primary reason they do not have these economic tools is because they cannot prove their identities. Immutability of the Blockchain can enable these people.

What do I need to understand?

The capabilities I’ve outlined just scratch the surface on how Blockchain impact all of us. Aside from the aforementioned, as a procurement professional are several important things to understand.

1)  Blockchain is a much wider and more pervasive concept than Advanced Cognitive Systems, Big Data, Predictive Analytics, Robotics, 3-D Printing or even the Internet of Things. In fact these technologies will become infinitely more practical and secure because of Blockchain.

2)  Do not think of Blockchain and BitCoin, FinTech or Crypto Currencies as synonymous. They are not.

3)  Do not think that it will take 20 years to mature and be mainstream. The estimate is 5-7 years for full maturity.

4)  Do not assess progress by the US/Euro FinTech Community. While they were the first to recognise Blockchain’s inherent value and arguably have the most to gain by adopting it, they also have the biggest hurdles to overcome and could very well be last to cross the finish line.

5)  Don’t make the mistake of waiting to become knowledgeable about Blockchain; it is the most highly disruptive technology we’ve seen since the Internet and it won’t wait until you are ready for it.

Michael Shaw is CPO and Executive Board Member of Sourcing and Procurement Executives (ACSPE) and Chief Information Officer at Blockchain Executive.  This article was originally published on LinkedIn.

Is P2P Keeping Us Stuck In The Mud?

Still debating maverick spend in your organisation, griping about tail spend or struggling to implement the right systems? Perhaps P2P is holding you back!

This article was written by Eva Milko. 

Is it me or has not much changed in the world of Purchase-to-Pay (P2P)? Twenty-five years have come and gone and yet we continue to discuss maverick spend, we gripe about tail spend and struggle with the right systems and the right processes to enable the simplest of transactions a company has in its portfolio: buying stuff.

In the meantime, those who realised that their value sits in higher areas of supply chain opportunity are doing wonders to automate, digitiSe, codify and outsource P2P work to those who have become transactional experts. Entrusting a part of your procurement house to others is not an easy task, many failing in the process, but I argue that it is somewhat necessary when the world is getting more complex, challenges more broad and opportunities often surpass the risks.

The CPO seat belongs to the one who carefully coordinates all aspects of the source to pay process with a keen eye on what can be standardised, outsourced, digitised, robotised and automated, balancing that with strategic decision making on where to place their precious human resources.

P2P buying systems remain a mystery. They are the most disliked, worked-around and challenged factor by employees in almost any company.  Our research found that only 36 per cent of stakeholders find procurement systems favourable and comfortable enough to engage with.  Our internal stakeholders are screaming “make it easy for us” and yet we continue to throw them into the bowels of twenty process steps, multiple buying channels and layers of authorisations. That’s not to mention lost time and corporate energy.

Procurement Prime

Molson Coors Procurement Office recently hosted an Executive Roundtable on this very subject and we challenged ourselves to envision a world of guided buying where the stakeholder is not exposed to procurement rigmarole but interacts with an intuitive and interactive set of buying steps. We called it Procurement Prime, taking our inspiration from the most admired ordering system in the world; Amazon Prime.

Many procurement executives and their friends in finance will say to me “but wait, we need to mitigate and monitor supplier risk” …..True, and it  is possible with a set of algorithms and predictive tools embedded into your P2P ordering process, alerting the requisitioner at the time of purchase of the supplier’s health status, including fulfillment capabilities, shipping disruptions, banking and payment alerts, further yet, providing alternative solutions.

If you can imagine it, you can plan it. If you can plan it, you can get it done.   Paying attention to how your corporate buyers embrace the P2P steps (or not), diving into their buying methods, listening and empathising will go a long way. Interestingly enough, we found that Procurement functions aligned to the Chief Supply Chain officer have much greater alignment in their organisations than those who report to the CFO. Is is time to change alliances?  Not so fast! Here are a few enablers to make such transformations possible.

Changing your functional and corporate mindset

Let’s start by recognising that your procurement value does not reside in chasing requisitions around the office and beating internal stakeholders into procurement policy submission.  Successful companies are taking a much more customer-centric approach, focusing on relieving the organisation of procurement jargon and building sophisticated systemised methods, especially for more repetitive buying.  Think Guided Buying and think Procurement Prime! This is your future and #tomorrowstartsnow

Changing your skill set

This is pivotal to opening up these conversations and imagining the possibilities.  In procurement, we do not hire enough creative people who are empowered to challenge the status quo and bring forth cool solutions.  We need more inventors, technology savvy, stakeholder centric entrepreneurs who are bold, persuasive and get things done! Yes – these transformations take money, take energy and take skilled resources to get it done, but thinking long term possibilities versus short term barriers will unshackle the organisation from procurement processes horrors and free up resources to address much more interesting issues.

Changing your focus

In our recent study, we found that 84 per cent of procurement organisations remain firmly rooted in functional effectiveness and cross functional collaboration buckets. What goes with that are correlating trends of declining year on year cost savings, the most admired and used procurement metric on the planet.  Enhanced value, total shareholder return, enhanced recognition, awesome jobs and great pay will not come from these areas.

Getting rid of the important but non-essential procurement work and entrusting it to someone much more capable is part of the transformational focus that all CPOs need to consider embracing.  Successful partnerships are built on a shared long term vision, shared values and a solid long term plan.

In our research, we found that that introducing robust supplier collaboration, supplier enabled innovation and total value chain coordination is where procurement can truly make a difference for the organisation.  Some organisations have made the leap but many struggle to make ends meet.

My prediction for these organisations is bold:  transform or die – become de-prioritised, outsourced or automated. #tomorrowstartsnow

This article, by Eva Milko, was originally published on LinkedIn. Eva is Managing Director at Procurement Leaders. 

How Algorithms Will Add Super-Intelligence To The Way Your Company Spends Money

As algorithms, virtual assistants, and bots infiltrate conversational interfaces across business applications, in the crosshairs is company spend tracking and control. This is the panacea we’ve all been waiting for to an age-old problem.   

Messaging services like Slack are ground zero for a new generation of integrated bots in the workplace. Most have stopped trying to trick users into thinking they’re chatting with humans while new features like message menus (dropdowns) integrated into the AI-generated text help  users make nuanced decisions.

Driving the conversational UI behind the scenes is an-ever evolving mix of machine learning algorithms for pattern recognition, natural language processing, and other associated technologies. Together, they deliver a contextual experience that helps business users make smarter and faster decisions.

One business workflow rife with inefficiencies and errors is corporate buying and expense tracking. Pointing chatbots, or the next iteration of them that we’ll call AI assistants, in that direction will benefit everyone in the requisition and approval flow, from end users to the head of finance or the treasury boss.

The appeal of AI could be even greater for smaller businesses since most lack formal spend management policies, but still need to see who charged what and when on the company credit card. AI assistants enabled by emerging algorithms can arm every purchase decision with intelligence, in effect, augmenting human judgement every step of the way.

AI assistants can add intelligence to everyday tasks

In the realm known as transactional procurement and travel and expense (T&E), solutions with AI assistants could help with general questions, such as clarifying budget status or a spend limit. A user would be able to simply ask the robot a question within the same messaging interface where they chat with colleagues and then get an instant response.

For payments, an AI assistant could learn how you buy and then make recommendations based on context, supplier or product data, budget levels, working capital, and other factors one might overlook or simply not be privy to when initiating an everyday purchase for work.

In another scenario, a user could request an approval for a purchase, but before doing so, summon an AI assistant to verify if a similar request was made by a coworker to avoid a duplicate purchase. That way the user wouldn’t have to waste time and go digging for that info herself.

Finally, AI assistants can facilitate the buying process by generating a payment method such as a virtual credit card after the transaction gets approval from a manager on behalf of the requestor. Upon approval, a user would receive an encrypted virtual card with a spend limit to use as payment against a corporate account, massively simplifying what is typically an arduous back-and-forth process.

The AI opportunity goes well beyond transactions

In time, AI will evolve to allow organizations to make strategic buying decisions and respond to changing business conditions and market variability instantly. To get there, it will first remove the bottlenecks of repetitious decisions that occupy our time, like those mentioned earlier in this article. Then, they could be programmed to help make ever more strategic decisions.

In the sphere of sourcing and procurement, that could mean super-intelligent agents sourcing the highest quality rubber from a stable region, determining which short-listed supplier is most likely to honor their contract, forecasting supply chain disruptions and make recommendations weeks in advance, and so on.

Think that level of knowledge work is impossible for algorithms? Think again. Researchers at Google Brain have already developed software that designs machine-learning software with better results compared to machine-learning software designed by the boffins themselves!

We are well on our way to developing new types of non-conscious intelligence that will be able to handle increasingly complex tasks. In his best-selling book Homo Deus, author Yuval Noah Harari, drives the point home: “The idea that humans will always have a unique ability beyond the reach of non-conscious algorithms is just wishful thinking.”

With that thought, we can return to our original premise and have little doubt that the rise of AI will mean all of a business’s spending will get smarter. AI expert Stuart Russell puts AI next to the discovery of fire in terms of impact on civilization. If AI will change the world, then it certainly will change business commerce.

Christopher Jablonski is Director of Content & Communications at Tradeshift, a cloud-based business commerce platform connecting buyers and suppliers.

Help! A Potential Employer Asked For My Facebook Password

You’re in the middle of a job interview when the recruiter shocks you by asking for your Facebook password, citing “company policy”. Do you: A) Meekly hand it over; B) Kick over your chair and storm out; or C) Politely but firmly refuse?

Ink Drop/Shutterstock.com

Have you ever been asked to hand over your social media details in a job interview? Don’t panic – it’s probably just a stress test.

Stress tests are designed to put you under pressure and see how you handle it. They range from grilling you about your weaknesses, to subjecting you to a barrage of quick-fire questions to try to fluster or catch you off-guard.

Heineken took this to the extreme in their viral recruitment video where interviewees are subjected to a range of stressful situations, including a creepy hand-holding interviewer who later feigns a heart attack. While it’s fun to watch, there’s a lesson here – in an age where candidates often give text-book answers to text-book interview questions, recruiters are looking for ways to separate the wheat from the chaff.

“We need your Facebook login details”

Your three potential reactions:

A) Meekly handing over your password: Wrong answer. This shows that firstly, you’re desperate for this job and secondly, you’re a pushover. Is this how you would behave when representing the company in a tough negotiation?

B) Anger: You’ve fallen into the trap. Even though it’s an outrageous demand, getting angry only demonstrates that you won’t be able to remain calm in the face of on-the-job pressure.

C) Politely but firmly refuse: Correct! You were on the lookout for a stress test, and you’ve identified this one as such. This takes the pressure off, allowing you to present a calm and logical response.

Unfortunately, that’s easy to say and hard to do!

How to say “no” politely 

  1. Call them out

If you’ve read the situation correctly, then you could simply respond by saying, “This is one of those stress-tests, right?”, and then launch into a detailed explanation of how you’re able to stay calm under pressure, with examples.

If they still insist, and genuinely appear to be demanding your Facebook login (and you still want this job), then you’ll need an excuse beyond the bare fact that you don’t want them seeing your drunken photos from the big party last weekend.

  1. Privacy

“I have an obligation to protect my friends’ privacy. They have their own privacy policies set on their accounts to safeguard themselves and their loved ones and that’s their right. If I start sharing their information with potential employers then I’ll have broken my trust with them.”

  1. Work/life

“For me, work and home are two separate things. I’m careful to keep work-related posts off my Facebook page, so it’s in no way relevant to any potential employers.”

  1. Direct to LinkedIn

“I think you mean LinkedIn? While I wouldn’t hand over my login details, I’d be happy to connect with you on LinkedIn so you can see how I present myself professionally on social media.”

  1. Show me yours and I’ll show you mine

This one’s a bit more provocative! “Absolutely fine – I think this is a great idea. I’d also like to see the type of team I’m joining, so if you can share your log-in details, along with your director’s and all the team members’ Facebook passwords, then I’d be happy to share mine.”

  1. Throw the question back at them

Whatever you decide to say, it’s vital you do so in a professional, calm and reasonable way. In a stress test, how you say it is more important than what you say. The interviewer will be judging your response, attitude and manner, but you can turn the tables by asking them to put themselves in your shoes.

For example:

  • “I’m sure you would agree …”
  • “I’m sure that if you were in my position…”
  • “From a privacy perspective, my friends wouldn’t be comfortable with me showing their information to people. I’m sure your friends and family would agree.”

Asking someone to put themselves in your position makes it almost impossible to be offended by a calm and rational argument.

In the end, keep in mind that there is no right answer to a stress-test question. It’s designed to judge how you react, so be confident in whichever answer you choose.

The Big Squeeze in Public Procurement

As budgets continue to shrink, how can professionals working in public procurement do more with less?

We live in a world of apparent contradictions. The amount of money being spent by global governments is rising year on year. And yet, in the majority of these countries, public sector institutions are seeing budgets shrink at the same time.

Governments are increasing spending in order to continue to provide vital services to the public. In the UK, public spending reached £761.9 billion in 2016. This is forecast to rise again in 2017, with total UK public spending is expected to be £784.1 billion.

However, there are a number of factors that need to be taken into consideration when assessing these figures. The average age of the population is on the rise. Health services are dealing with a rise in chronic diseases as a result of lifestyle choices. Investment is not only being put into social care, but also into improving the lives of the entire population. All this means that any increase in spending is swallowed up as quickly as it is released.

In addition, slow global growth means that Governments have to be aware of future spending too. What this means, ultimately, is that spending at a local level is reduced. So what does this mean for public sector procurement?

More for Less

In Scotland, funding for Councils from the Scottish Government has decreased by an estimated £180 million for 2017-18. Some of this will be offset by rising Council Tax across the country, but many Councils and Local Authorities will still be looking to make major savings.

Maintaining, and improving, public services is only the start. The public sector in a situation where they not only have to achieve more with less, but they also have to invest wisely to help future savings targets.

Technology is just one area where this can be achieved. Many cities are investing heavily in technology that will align with existing infrastructure. Following in the footsteps of pioneering cities like Barcelona and Stockholm, a number of UK cities are moving to become ‘Smart Cities’.

Intelligent Street Lighting, sensors measuring urban data including city centre footfall, air quality, and new applications for refuse collection and public parking, are just a few examples of how technology helps to build a smart city.

These technologies have a dual-benefit for Local Authorities, and other businesses in cities. Data collected can be used to drive savings initiatives, while at the same time helping to improve the quality of life for residents.

Public Procurement’s Three Cs

What does this mean for procurement? The profession will be at the forefront when it comes to savings initiatives, and will play a vital, and ever-increasing, role in these projects. But at the same time, procurement still needs to prove its worth to, and make these savings stick.

If you’re looking for somewhere to get started, or to drive continuous improvement, here are three Cs that are applicable no matter your organisation, industry, or category (or even sector).

  1. Challenge

The best saving procurement can make is by not spending money in the first place. And the best time to do this is at the very beginning of a project. By challenging requests, procurement can begin to weed out wants from needs.

Does the organisation actually need this? Does it really need the 24-carat, diamond encrusted version, when an off-the-shelf one will do just fine? Is there an alternative solution to the question that could cost less while doing the same job?

Get your client, end customer, and specification writers to really think through their requirements. Once you’ve done that, you can move on to the next C.

  1. Collaborate

Collaboration should be both an internal and external activity. Procurement should be involved from the start of the project, and work closely with other departments to get the best for the organisation.

The public sector can also collaborate more too. Instead of all setting up individual projects for the same thing, why not share what’s been done in the past? Frameworks, Dynamic Purchasing Systems, and collaborative purchasing can help save time, resources, and money.

It’s also time to be working more collaboratively with our suppliers. Procurement needs to focus, where appropriate, on building long-term relationships. By building these relationships, suppliers will feel more open to collaboration, and potentially start bringing innovative solutions to the table.

And the other thing collaboration is going to help is with the final C.

  1. Cost

As in total cost, lifecycle cost, or Total Cost of Ownership. It’s critical to long-term savings ambitions that the total cost of goods or services is understood. Depreciation, residual value, maintenance and disposal costs all need to be taken into account before any decisions are made.

Procurement should also be focusing more on the cost element with suppliers too. Profit margin is not necessarily the best place to start looking for savings. Rather than creating the perception of going after profit, switching the focus to cost can provide more opportunities for discussion and even innovation.

Getting Started

While these are very good areas to start in, they are just the start of a larger exercise. However, they will help to provide the foundation for best practice, and to change the way projects are put in place across the organisation.

Going Abroad? Tips For Staying Cyber-Safe

Keeping thieves at bay when travelling used to involve money pouches and hidden pockets. These days, the threat has moved into the cyber sphere. Keeper Security’s Co-founder Darren Guccione explains. 

The holiday/vacation period is looming, and many people are making plans for international travel. If you are among them, be sure you have done all you can to take responsibility for cybersecurity when travelling. After all, it’s a dangerous world out there when it comes to the cyber threat environment. Some common sense and preparation will go a long way toward ensuring your international travel memories are of the good kind.

Let’s break down the tips and tricks of cyber safe travel into two categories. The first is basic “blocking and tackling,” which for the most part is done prior to your travel. The second category deals with security tips once you are on the road.

First, a note about U.S. Border Patrol agents

It is important to know in advance that the travel environment itself has changed. While travelling within the U.S., TSA agents at the gates are not allowed to confiscate your digital devices, nor are they allowed to demand passwords to get into them. If such attempts are made, demand to speak to a supervisor.

The rules, however, are different for U.S. Border Patrol agents and for agents in other nations too. Recently there have been multiple news reports of U.S. citizens having to turn over digital devices and their passwords as a condition for entering or re-entering their own country. What can the border agents do with your passwords or data on your devices? How long can they keep that information? How long can you be detained? These and other questions are not easy to answer. But as you will see from the tips and tricks below, there is much that can be done to minimise what might be compromised or inspected while you ensure your trip overall is as cyber safe as it can be.

Before you head out: basic blocking and tackling

  1. Back up your e-files. Just presume you are going to lose everything on your devices. If all data is backed up before you leave, then if you lose your device you won’t lose what really matters most to you.
  2. Don’t carry sensitive data. This is easier said than done if you are mixing business and pleasure, but it is not unreasonable to just leave behind all the sensitive files you are not likely to use. Store them on cloud backup or on removable media. But get them off your devices.
  3. Change all passwords for all devices. When doing this, use two-factor authentication if possible, which most devices have today. Make the passwords eight characters or longer with a combination of nonsensical letters, numbers, and symbols.  Download a free password manager that will do all the work of creating complex passwords and remembering them for you.
  4. If you haven’t checked recently, this is an excellent time to be sure your antivirus software is current. There is plenty of danger lurking in foreign hotels, coffee houses, and even airports, as we’ll see. This software is your first line of defence.
  5. If your smartphone allows, and most do, enable the feature that automatically erases all data in the event of multiple failed password attempts (usually 10 or so).
  6. If available, enable anti-theft software (often through the cloud) that allows you to lock your device remotely if it is stolen. Enable and activate the “find my phone/device” function so if your phone or tablet is stolen, you can track it, disable it, and change all the passwords.
  7. Be mindful of movies, books, and other things you have loaded into your devices that could be considered pornographic and otherwise illegal in certain other countries. Also, some downloads considered legal in the U.S. may actually violate local intellectual property or digital asset rights in other countries, should your device be searched. Just err on the side of caution and store and remove anything that might be construed as such.
  8. Disable Wi-Fi auto-connect options from all devices before you leave, such that you have to manually connect when you think it is safe to do so. The best approach is to buy a subscription to services that only connect to secure Wi-Fi hotspots throughout the world. Rates are inexpensive and getting more so all the time. Just do a search on “unlimited wifi.” If you will need to transfer or access sensitive data abroad, consider getting a highly secure VPN connection on a daily or weekly rental basis. Just search “VPN rental.”
  9. Similarly, disable Bluetooth connectivity. If left on, cyber thieves can connect to your device in a number of different and easy ways. Once they are in, your cyber world is their oyster!
  10. Finally if you do not have an international subscriber identity module, better known as a SIM card or do not have a roaming package on your smartphone, your two-factor authorisation access will be limited. All the more reason to purchase a secure Wi-Fi data plan.

Now that you’ve arrived…

The tips and tricks in this list really won’t take long at all for travellers to put in place. Doing so is great insurance against many of the cyber threats that lurk when your plane touches down on foreign soil. But once that happens and your excitement builds as you head to the luggage carousel, your cybersecurity work is not done. Here are some steps to promote cyber-safety on the ground:

  1. Double check to be sure all of your apps are password protected with fresh, new passwords, ideally stored in your password management system so you don’t have to remember any of them. And don’t use the same PIN for hotel room safes that you use for your device password.
  2. At all cost, avoid using “public” digital devices, such as those at coffee houses, libraries, and bookstores. They are often notoriously riddled with malware lurking to steal your information. If you use them, you should presume that someone other than you would see any information you enter.
  3. Be very careful about connecting to any Wi-Fi network if you haven’t subscribed to a global service previously, per the tip above. These are prime milieus for cyberthieves. Say you are in a train station (bahnhof) in Germany. You scan your device for a wireless network and there are several. A legitimate one might be “bahnhofwifi”—but you don’t know that. A cyberthief has set up his own Wi-Fi trap and it shows up as “bahnhoffwifi,” with but one letter changed. Connect to that and your troubles are just starting.
  4. Don’t charge your devices using anything other than your own chargers plugged directly into the wall or into your adapter. It is easy for cyber thieves to install malware onto hotel and other public docking stations.
  5. Never connect any USB drive or other removable media that you don’t personally own. Again, they are easy to load with malicious software.
  6. This goes without saying, but NEVER let your devices leave your sight. If you cannot physically lock devices in your hotel room safe or other secure place, take them with you. There are no good hiding spots in your hotel room. And, of course, never check your devices with your luggage.
  7. Most social media sites are happy to automatically share your location as you post photos and messages. This also tells thieves back home that you are away, which is a great time to break in. So limit the information you post regarding your location at any point in time.

Bon voyage! And safe cyber-travels.

Darren Guccione is Co-founder and CEO of Keeper Security,  a password manager app and digital vault for consumers and enterprises with 9 million+ users. 

View from the top: Three Ways Procurement Must Transform

ISM’s top brass called in the media to map out the transformation of the profession into a tech-focused intelligence agency that will attract the very best talent.

Raywoo/Shutterstock.com

Tom Derry (ISM CEO), Hans Melotte (Starbucks EVP Supply Chain & ISM Board Chairman) and Kristopher Pinnow (CPO B/E Aerospace & ISM Board Member) sat down with the media at #ISM2017 to answer some burning questions. With Derry providing the context while Melotte and Pinnow added their views as practitioners, three key themes soon emerged.

1. Intelligence transformation

“Times are uncertain, and business hates uncertainty”. Tom Derry sets the scene for #ISM2017 by highlighting the turbulent geopolitical situation that’s impacting the profession worldwide. The presence of two world leaders as conference keynotes – Colin Powell and David Cameron – underscores the anxiety with which many professionals are watching global events unfold.

Derry’s message is that supply managers should cultivate a sharp intellectual curiosity to not only inform themselves of disruptive events, but to position the function as a source of intelligence within the organisation. Importantly, we have an opportunity to be the voice of calm and reassurance, hosing down anxiety with facts, rather than fear.

ISM’s leadership in this area was demonstrated last year when it released a supplementary Report on Business, focusing specifically on the UK’s shock Brexit Referendum’s effect on US business. The decision was prompted by a flood of enquires from US business and media representatives about whether the data for the influential report would reflect the fallout from Brexit. Derry told Procurious at the time that 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.”

The panellists agreed that while it hasn’t always been the case, transforming into a source of intelligence for the business is something to which the profession needs to aspire. Melotte stresses that procurement needs to have all of its data intelligence in real time. “We’re digital natives,” he says. “We book our food online, we track our spouses’ flights – but the workplace is often more of an analogue environment. We need to be in the moment, preempting issues before they arrive.”

2. Technological transformation

Derry warns that if you’re the steward of a process, you’re about to lose your job when it becomes automated. But it’s not all bad news: “New types of jobs will exist in the future, with new skills required to do those jobs. The impacts of technology also have the potential to make us better at what we do, such as data analysis and being more efficient with distribution.”

Melotte tells the room that technology is critically important for our jobs and our companies, yet we’re at risk of underestimating its impact and potential. He notes that among the conference’s 2500 attendees, some will still be associating technology with automating source-to-pay processes and other fundamentals. “Fortunately, there’s also a lot of thought leadership at this conference with leaders who are imagining the opportunities for technologies within the supply chain – what we do, and how we do things,” he says.

“Imagine the potential that cognitive learning, artificial intelligence and predicative analytics will have on how we forecast commodities, demand and consumer behaviour, or how we bring insights back to our business around supplier patterns.” Melotte says artificial intelligence is just one example of the big transformation currently taking place in the profession, with an increase in speed being a key benefit. “We’ll see faster speed to market, and pilot projects that you can turn around in only three months.”

3. Talent transformation

“There’s no question there’s a demographic bump,” says Derry. The “birth dearth” between the baby boomer generation and millennials means that there aren’t enough members of Generation X to step into roles as their predecessors retire. “I’d argue that those smart young people, who are digital natives, do have the tools and the mindset to adapt rapidly,” Derry says. “You’re hiring for that kind of talent all the time.”

Pinnow talks about the importance of developing and sharpening intellectual curiosity in the talent pipeline, and says there’s a lot that established professionals can learn from new talent. “You have to recognise that you don’t know everything. You have to encourage people from a talent management perspective [to teach you new concepts].”

Melotte says that having a balance of skills in your talent pool is crucial. “In tomorrow’s world, we all have to make sure there’s a certain percentage of our teams that are data scientists; who are deeply versed in analytics to give us insights. [We need to] hire and seek out this type, migrating the competency pool to ensure there’s a balance between strategic sourcing and data scientists.”