Tag Archives: AI

Does Your Procurement Team Have The Human Touch?

We’ve had quite enough of the scare-mongering out there that says the robots are coming to steal our jobs! We’ve got some inside info that suggests having a human touch in your procurement team is by far the most important thing!

Our webinar, Beat The Bots: How Being Human Will Win The Day, takes place at 1pm BST on 24th October 2017. Register your attendence for FREE here. 

We’ve heard it all before, right? Cognitive technology is coming and, in case you hadn’t gathered, it’s a pretty big deal.

By 2020 all of our important procurement decisions will be made with the assistance of artificial intelligence. We know that our teams must “transform or die” if we don’t want the function reduced to the back office,  facing extinction.

Given the scare mongering and hype around AI, most procurement professionals have accepted that they must map out their cognitive journeys, hone their skills and prepare for a very different future.

But what does that future look like?  Are procurement teams of the future made up entirely of savvy data scientists? Can you even have a future in procurement if you’re not a data whizz?

Can you beat the bots with the human touch?

Our latest webinar, in partnership with IBM, takes the more optimistic, and realistic, approach that humans can, and will, win the day!

The idea that everyone needs to be a data scientist is a total  fallacy. In reality, only a very small percentage of the workplace actually needs these skills. The rest of the procurement workforce will need to be managing relationships with the supply chain ecosystem.

If cognitive technology like IBM’s Watson can handle the sourcing, the market intelligence and the data, the biggest gap for procurement to worry about is soft skills.

Beat The Bots: How Being Human Will Win The Day examines how procurement’s role is transforming. We explore why the function needs to develop arelationship with the organisation that is much more strategic, placing it in a partnering and consultative role.

Think you could do with learning more about the importance of soft skills in the cognitive age, and which ones you should be concentrating on within your teams?  Sign up for our webinar on 24th October and check out our FAQs below for all the information you require:

What content can I expect from the webinar?

We’ll be discussing:

  • What cognitive tools are on the horizon?
  • How will the advancement of cognitive technology be an enabler, and not the disabler, of your procurement career?
  • Why  is the most robotically advanced procurement team in the world, focusing on their employees soft skills?
  • How can procurement teams map out their cognitive and talent journeys alongside each other?
  • If soft skills are king, which ones should you be developing?

Who are the guest speakers?

Tania Seary – Founder, Procurious

A true procurement entrepreneur, Tania is the Founding Chairman of Procurious, The Faculty and The Source. Throughout her career, Tania has been wholly committed to raising the profile of the procurement profession and connecting its leaders.

After finishing her MBA at Pennsylvania State University, Tania became one of Alcoa’s first global commodity managers.

In 2016, Tania was recognised by IBM as a #NewWaytoEngage Futurist and named “Influencer of the Year” by Supply Chain Dive. She hosts regular procurement webinars, and presents at high-profile events around the world.

John Viner-Smith – Principal, Mercer 

John earned his masters in international procurement from Kedge Business School in Bordeaux in 2003 and went to work at JPMorgan Chase as HR Sourcing Manager for EMEA.

After a couple of years at JPM he moved into consulting with ATKearney, specialising in Procurement work and stayed in Consulting until 2009 (he moved to Deloitte) until moving back into industry with Dixons Stores Group, where he was Senior Category Manager for Marketing and IT.

After that he spent two years as a Principal at KPMG in Shared Services and Outsourcing Advisory, where he became involved in work around Robotic Process Automation and Cognitive Computing in Shared Services environments before moving to Mercer to focus on a commercial excellence again.

He writes and lectures in leading business schools on the topic of Commercial Negotiation. John  currently live in Oxfordshire with his wife and two children.

Justin McBryan-  Learning & Development, Strategy, Communications Manager, IBM

Justin has 20 years of Supply Chain experience and currently serves as IBM Procurements Learning & Development and Strategy Leader at IBM.
He has most recently been a Supply Chain Consultant for IBM specialising in logistics and procurement across numerous Industry verticals around the globe, including extended work in China, Mexico, Canada and Europe.
Justin’s passion for learning and development stems from his desire to collaborate and scale expertise through large organizations. Justin is a proud graduate of Loyola University-New Orleans and currently resides in New York City with his wife.

How do I register for the webinar?

Registering for our webinar couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a confirmation email with a link to the webinar platform and a handy reminder one hour before we go live!

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still register to access the webinar via this platform. We’ll send you a confirmation email with a link to the webinar platform and a handy reminder one hour before we go live!

When is it taking place?

The webinar will take place at 1pm BST on 24th October 2017

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question?

If you’re listening live, our speakers would love to hear your questions and we’d love for you to pick their brains . Questions can be submitted throughout the live stream via the webinar platform, or via Twitter when you tag #Beatthebots @procurious_

If you think of a brilliant question after the event, feel free to submit your question via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

Our webinar, Beat The Bots: How Being Human Will Win The Day, takes place at 1pm BST on 24th October 2017. Register your attendence for FREE here. 

Supercharge Your Intelligence

How can technology improve the savings, scope and speed of your supplier searches by supercharging your intelligence

The event might be over, but you can still  register for The Big Ideas Summit Chicago to access footage  from the event. 

“There’s a tremendous opportunity [for procurement] to leverage technology and data to accelerate processes and bring insight into the organisation.” says Stephany Lapierre, founder and CEO of tealbook.

After 10 years building a successful strategic sourcing consulting firm, Stephany launched tealbook in 2014, a cloud-based platform that uses machine learning to enrich supplier master data and accelerates supplier identification and qualification by as much as 90 per cent.

At The Big Ideas Summit last week we interviewed Stephany to learn the results of a recent partnership with The Hackett Group:

What’s the big problem?

We know that procurement processes need to be more agile. Particularly in larger organisations, which are threatened by disruption, the ability to adapt and be more flexible is of paramount importance to ensure survival.

But, as Stephany points out, when it comes to identifying qualified suppliers, agility is not procurement’s strong point…yet!

“By the time a business comes to procurement with supplier requirements, it takes an average of 41 hours of effort to come back with a list of qualified suppliers,” she begins.

“I was with a Fortune 500 CPO recently and asked him one question:

“When the business comes to procurement, what’s the process for getting back to them with a vetted list of qualified suppliers?”

“He spoke for ten minutes, listing all of the internal and external sources used by procurement!

“We have a portal, we use our analysts, third party analysts, we buy market intelligence reports, we use Google, as our stakeholders, and the list went on.

“If it takes 41 hours of efforts (typically taking 5 to 6 weeks), procurement is a bottle neck. You can now make that information available in real time… that changes the conversation. It’s game changing!”

If traditional approaches to decision making are broken, what does that mean for the future of procurement?

The Upside Of Supplier Intelligence

tealbook recently partnered with The Hackett Group to research the cost, effort, and business impact of supplier discovery and qualification. The resulting data became the foundation of a four-city series of executive roundtables focused on exploring and capturing the strategic impact of having access to actionable supplier intelligence to meet the demand of the business that requires speed, agility and innovation.

Over the course of those four evenings, The Hackett Group data came alive through the diverse perspectives of over 40 procurement thought leaders. Their combined insights are now available in a new white paper, The Upside of Accessible Supplier Intelligence, which was launched at the Procurious Big Ideas Summit in Chicago.

The paper addresses the transformative potential of supplier intelligence based on the themes we heard loud and clear from our executive participants, as well as discussion around the following points:

  • 15% of the sourcing process is spent identifying and qualifying suppliers.
  • It takes an average of 41 hours of effort per sourcing event, which translates into 23,165 hours for the average enterprise.
  • Over 60 percent of supplier discovery & qualification efforts are handled by strategic resources (category managers and senior category managers).
  • Applying machine learning and peer-driven intelligence to this challenge creates a strategic opportunity to accelerate and improve this process while increasing procurement’s total impact on the top and bottom line.

Procurement: The Guardian of Enterprise?

Procurement must find a way to reduce tactical work and reassign hours to strategic opportunities which will allow procurement to deliver better savings while aligning with the speed and expectations of the rest of the business.

Having instant access to trusted, actionable intelligence will therefore be a mandatory piece of the procurement technology landscape in market leading companies.

As Phil Ideson (Art of Procurement), the moderator for all four cities, stated in one of the roundtables,

“…Procurement is a function ripe for disruption. We have to be careful not to disrupt ourselves by being rooted on our traditional ways.”

Download the full tealbook white paper here.

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. 

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. 

 

Is Independence The Next Procurement Disruptor?

In workplaces that have less structure and much greater independence, where we can bring our own technology to work and use it to innovate, what does the future hold for procurement?

Disruption has become something of a buzzword lately. With brands like Uber, Airbnb, Airly and Tesla making headlines in Silicon Valley it’s very easy to get swept up in the momentum; where is technology taking us and how can it lead us to better outcomes?

Is technology fear making you freeze?

After speaking at a Young Innovators conference in Denver Colorado recently, I met with delegates afterwards to discuss their technology challenges.

Our conversation revealed that whilst technology was viewed as a great enabler and business simplifier, they were fearful of the cost and effort required for implementation – so fearful, that many had resisted changing existing legacy technology even when they knew it was bad for business.

It reminded me of Kodak, a story so powerful in reminding us how an inability of a company to act due to fear of change, risk aversion and desire to protect the status quo killed a global business.

When it comes to legacy software, perception might be that it’s better the devil you know. But we have reached a new era of the digitally connected individual, one who values instant access to information. The digitisation and connections of our personal environment is leading to the same changes within the workplace, allowing buyers to become more productive and engaged in the buying process.

Procurement teams have successfully become more integrated into businesses through a combination of people and technology and have delivered strong savings and operational improvements, but where are the future incremental improvements going to come from?

Reinventing the rules with the cloud

It’s becoming very clear that cloud-based applications are and have re-invented all the rules.

Cloud based applications are driving a fundamental shift that will transform many aspects of procurement and strategic sourcing.

Procurement teams are beginning to understand the benefits new technologies can bring to an organisation, even when it means that buyers are working with, and bringing software and applications of their own choice into the workplace.

Traditionally we have focused only on the team, today we are witnessing the rise of the individual within a team. A future where procurement individuals are connected to the organisations approved suppliers but continue to use their own technology to improve those interactions and connections. This is allowing them to find and deliver incremental improvements businesses are demanding.

The trend is right in front of us, our work environments have transitioned from structured workplaces to become open and community based; the same is occurring with our technology decisions. We still come to the office each day but work in an environment that has less structure, more innovation, flexibility and freedom.

Bring your technology to work day

Today you can bring your own technology into the office, use it to drive innovation, supplier connections and collaboration and then connect to the business mainframe to download and upload data.

The future will see more individuals challenging existing processes and demanding better connected applications that are just as fluid and flexible in business as they experience in their personal lives.

Our future procurement leaders will look for solutions that simplify key processes, are easy to implement and use and gather the key data that can be utilised to improve decision making.

Finally, I recently came across the following quote from a CPO in an Accenture article, “it’s gotten to the point now where technology is evolving faster than my mind is conceptually able to digest it”.

Welcome to the world of you, the procurement individual!

Alan is a thought lead and CEO of sourceit, a technology company that has led the market in the development of simple and easy to use sourcing applications for a wide of direct and indirect categories.

Sourceit offers three different products for buyers:

  • RFQ – request for quote software for products and services
  • Market – a specialized procurement and job management application for marketing services, and
  • Catalog – an inventory management and on-demand product/services ordering application.

Automation: Who Says You Can’t Manage What You Can’t See?

If your business is engaged in international commerce, you’re probably struggling to toe the line with supplier risk management. Automation, alerts, and third-party data are your best defense.

Managing supply chain risk is no walk in the park. Exogenous events like the recent terrorist attacks in Barcelona have drawn attention to the EU’s rules to combat terrorism financing through stricter anti-money laundering (AML) regulations. These rules impact many companies that are increasingly added to the law’s scope: possibly yours.

Meanwhile, modern slavery violations can surprise even the most astute contract or supply chain managers who may have unknowingly relied on invalid or falsified information. In the U.K., The Modern Slavery Act 2015 includes a Transparency in Supply Chains clause, which requires companies operating in the U.K. to address modern slavery in their supply chains. If you’re at a big company, you’re probably on the hook to comply.

Once you add in the more common types of risk, such as the financial or credit health of your suppliers, changing markets, and natural disasters, the sense of how challenging it is to manage them all—in the age of digital disruption with fast-paced change and volatility—can quickly become overwhelming.

Fortunately, there is technology and automation to help you maintain control, gain visibility into your supply chain, and mitigate much of these risks. The right technology can help you proactively steer your organization clear of minefields that can damage everything from reputation to sales. And it’s only getting better.

 Start with real-time monitoring and alerts

The first step is to identify the most likely disruptions to the supply chain, like a natural disaster or a work stoppage at a supplier’s supplier. One way to deal with this type of risk is with real-time monitoring. Real-time monitoring of your suppliers means that you can receive an alert whenever there is a potential for disruption. Such alerts can help you find an alternative source of supply, maintain production, and avoid missed deliveries or even a plant shutdown.

Real-time alerts should be an extension of an overall solution consisting of a platform and business network. This is the ideal foundation to set up, monitor, and manage a portfolio of suppliers to ensure that all essential documentation about labor practices, certifications, certificates of insurance, and so on, is in place before you start doing business.

Integrate third-party data sources

Documentation and data about your suppliers can come from many sources, not just what you gather during an onboarding, contracting, or surveying exercise. There are plenty of third-party sources that have standalone solutions and open APIs or integrations into supplier management platforms that let you address various dimensions of supplier risk and to set up corresponding alerts.

If your company is engaged in trade and has a 10,000-euro or more money transfer in any way, it will need to comply with the EU 4th AML Directive. In addition to digitally onboarding your supplier base, you may want to automate KYC / KYB (know-your-customer, /-business), AML (anti-money-laundering), and EDD (enhanced due diligence) requirements. These steps will help you comply with the directive

One provider that is using cutting edge technology like distributed ledgers is Austria-based Kompany. Their counterparty verification data allows users to streamline the supplier verification process at the point of onboarding (and continually) with up-to-the-minute alerts on any material changes to supplier vitals. Their information comes directly from the commercial registers. Kompany even includes PEP (politically exposed person) screening and sanction lists.

Who says you can’t manage what you can’t see?

Other popular sources of company and industry data include Moody’s (credit ratings), EcoVadis (sustainability scorecards and ratings), riskmethods (transparency into risk exposures in 1-n tier supply chains), and Made in a Free World (visibility into modern slavery), to name a few. These data sources can help you continuously monitor for risks and evaluate your risk portfolio during the sourcing process.

Through technology and regulatory technology systems like those described above, you can design an automated, customized, and intelligent risk management strategy. In turn, this can boost trust between you and your suppliers and you can plan more confidently in an environment full of uncertainty.

Facebook AI Research Team Shuts Down Negotiating Robots

Facebook has shut down two robots after they abruptly stopped using English and invented their own language while conducting a negotiation exercise.

There have been a flurry of reports over the past week about Facebook’s decision to shut down two chatbots – named Bob and Alice – after they developed a coded language that was incomprehensible to humans.

The initial experiment involved a simple conversation between one human and one chatbot where they negotiated the sharing out of some items – books, hats and balls. This conversation was conducted in English, along the lines of “give me one ball, and I’ll give you the hats”.

So far, so good. But when the human was removed from the conversation and two chatbots were directed at each other, the way they communicated immediately became difficult for humans to understand.

Bob: i can i i everything else . . . . . . . . . . . . .

Alice: balls have zero to me to me to me to me to me to me to me to me to me

Bob: you i everything else . . . . . . . . . . . .

Alice: balls have a ball to me to me to me to me to me to me to me

Bob: i i can i i i everything else . . . . . . . . . . . .

Alice: balls have a ball to me to me to me to me to me to

Bob: i . . . . . . . . . . . . . . . . . . .

Some media commentators have labelled the development “sinister”, with frequent references to Terminator, Skynet and – of course – Frankenstein appearing in related coverage. But Facebook researcher Dhruv Batra told Fastco that there was simply no guidance set for the robots to stick to the English language. “Agents will drift off understandable language and invent codewords for themselves.” Essentially, the bots found a more efficient way of communicating with each other.

Setting parameters

The topic of negotiation and AI came under discussion at a recent Negotiation Roundtable organised by CABL (Conti Advanced Business Learning). The attendees agreed that if a robot is going to run a negotiation, it requires very clear guidance around the parameters and objectives.

Another concern about AI being involved in commercial negotiation is that at present, they are unable to understand emotional intelligence. Thierry Blomet, Senior VP of Global Sourcing at Kemira, says that “Until we completely remove the emotional aspect, AI cannot run negotiations. Body language and emotional reactions are intangible, and are most unlikely to be modelled by programmers.” In the case of Facebook’s Alice and Bob, the human factor was removed.

Blomet points out that AI can play a valuable role in complex scenario modelling, which would be “much more complex than even the smartest procurement brain could manage. Whatever might happen in the negotiation would be included in that model, with the answers already pre-empted.”

Laurence Pérot, Head of Global Supply Chain Procurement at Logitech, agrees. “Big Data and AI will lead to much more efficient scenario modelling, particularly with supply chain, logistics and transportation bids.”

Orestes Peristeris, Supply Chain Expert at Yale, comments that ultimately, it’s about quantification and sophistication of statistics. “Do you have the data in the same place and in one system? What can be quantified and what cannot be quantified objectively? There are some things that can be used, some things we know will happen with some certainty, and some things that can’t be quantified. Finally, we’ll always need humans to take the outcomes of Big Data and apply it to the business context.”

As for the future of procurement negotiation, perhaps one day we’ll see buyers and suppliers lining up their chatbots against each other and letting them negotiate in rapid, complex code.

May the best bot win.

In other procurement news this week:

Hackett research reveals dramatic savings from digital transformation

  • New research from The Hackett Group has shown that the potential cost take-out opportunity through digital transformation is up to 24%, through the implementation of robotic process automation, advanced analytics, cloud-based applications and other approaches.
  • The research has also revealed that world-class procurement organisation now operate at 22% lower labour costs, have 29% fewer staff, and generate more than twice the ROI of typical organisations, with over $10 in savings for every $1 of procurement operating costs.
  • The Hackett Group’s Christopher Sawchuck commented that procurement technology has reached an inflection point: “World-class organisations can continue to reduce costs by embracing digital technology, and typical procurement organisations can leverage the same technology to catch up faster at less cost.”

Download the research here: http://www.thehackettgroup.com/research/2017/wcpapr17/SalesForce-World-Class-Advantage-17Q2-PR.html

Collaborative Robots to Boost Warehouse Productivity

  • In a shift away from the apparent race to replace humans with robotic workers, firms are designing robots to work alongside people in warehouses and boost productivity.
  • “Collaborative” robots can have a variety of uses, including leading human workers to the exact location of a product, or carrying goods from one part of the warehouse to another. DHL, Bonobos and Zara are known to be experimenting with the technology.
  • The robots – costing tens of thousands of dollars – are relatively cheap when compared with the vast amount of conveyor belts and automation systems included in a typical warehouse.

Read more: The Wall Street Journal

Interested in attending a CABL Negotiation workshop? Visit http://www.cabl.ch/ to find out more. The founder, Giuseppe Conti, has over 20 years of Procurement experience with leading multinationals and over 10 years of negotiation teaching experience at leading Business Schools (including Oxford, HEC Paris, IMD and ESADE).

IBM Global Procurement’s Radical Transformation

Transformation has become the new norm as organisations respond to an onslaught of shocks. But is there a best-practice way to go about transforming a procurement function? We interviewed Procurious Partner, IBM Global Procurement, to discover why they’ve been recognised on the global stage for their approach to the challenge.

If you were to stop any procurement professional on the street and ask what their function is currently up to, you’re unlikely to hear the reply, “Oh, you know – business as usual”. Instead, you can expect to hear a description of some sort of transformation. Whether it’s enterprise-wide or procurement-led, everybody’s doing it. In fact, you could argue that the process of transformation itself has become business as usual, especially if you’ve ever worked in a company where one transformation follows another, ad nauseum.

Where once your organisation may have needed to reinvent itself every few decades, today, an onslaught of shocks – technological, cultural, economic, and regulatory – is forcing companies to transform every few years. Five to ten years ago, your CEO might have become a business icon through a single transformation. The minimum requirement now is being able to execute multiple transformations, while success today is measured in your ability to foster a culture of continuous reinvention.

Showing how it’s done

IBM Global Procurement recognised the need to transform as market dynamics put increased pressure on its customers, which consist of internal IBM business units and external clients. Graham Wright, Vice President, Global Procurement and IBM Procurement Services, described some of these pressures. “We realised that our internal and external clients needed less complexity, more transparency, consistent processes executed with speed, and new solutions. The challenge was to find new ways to stay relevant and be successful – that’s why we launched a radical transformation not only to address the needs of the business but to keep pace with smaller, more agile competition and remain an industry leader”.

The team went about this by ramping up activity across three key areas:

1.Innovation: Leveraging strategic partnerships and key relationships to drive innovation.

The team unlocked the value of supplier innovation by implementing a state-of-the-art Supplier Enabled Innovation (SEI) program and using new, engaging tools, including cognition. The SEI initiative included 3rd-party ‘Voice of the Supplier’ surveys, supplier incentives including annual awards, and clear performance metrics.

2. Engagement: Delivering simple, engaging user experiences.

After identifying key client pain points around complexity, slow execution and delayed problem resolution, IBM Global Procurement followed a mantra of speed and simplicity to improve visibility, enhance workflows and reduce cycle times. Innovative engagement solutions, such as an “Ask Procurement” chat function for clients, have contributed to an impressive improvement in client satisfaction. The chat application is highly intuitive – it suggests self-service solutions for users, and provides direct access to live agents who can answer questions simply and quickly.

3. Analytics & Cognitive: Capitalising on foundational analytics and cognitive solutions.

No mention of IBM Global Procurement would be complete without a reference to its not-so-secret weapon – the Watson Cognitive Platform. Through catalog data enrichment and cognitive procurement solutions which provide users with refined real-time data for risk mitigation, market and supplier insights, pricing information and recommendations, the team realised significant efficiencies including hand-free POs and greatly improved process compliance.

As an extremely positive side-effect of this transformational effort, Wright reports that the team’s efforts are being recognised within the wider organisation. “The transformation has helped change the perception of procurement evolving from a cost centre to a value centre.”

While internal recognition of the procurement team’s value is gratifying, the Global Procurement Team was even more delighted to see their efforts celebrated at Procurement Leader’s World Procurement Awards, where the team won the award for “Transforming External Partnerships (Pioneering Business Impact)”. The team’s submission went through a rigorous 3-stage judging process including online judging, peer review and a face-to-face regional debate.

And that’s not all – amongst 350 submissions across 15 categories, IBM Procurement was short-listed for each of the 6 entries it entered a submission for, and picked up 2 major awards – the Transformation award, and another for Risk Mitigation.

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.

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…

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.

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. 

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.