Tag Archives: cognitive technology

Are You A Data Hunter Or A Gatherer?

Are you trying to stay afloat  in a huge “data lake”?  Trust us, there are better ways to manage and manipulate your data to make an impact. Are you a data hunter or a gatherer?

There’s a whole lot more to data than simply having it…

If you’re one of those procurement professionals who’s anxiously sitting on an ever-growing mountain of data, wondering how on earth to make sense of it all; it’s time to shift your mind-set and your approach from gatherer to hunter….

Data on its own means very little unless it’s actually actionable.

But procurement professionals are so used to a deluge of data that it often ends up discarded in someone’s top drawer, never to be seen again! Perhaps it’s not fit for purpose but one thing’s for sure – nothing useful is done with it!

Can procurement teams do a better job in ensuring they get a decent ROI on their data?

Our latest webinar with IBM, which takes place on 28th March, will teach you how to become an astute data hunter!

We’ll be discussing…

  • Why every procurement team needs a Chief Data Officer
  • Unstructured data – How do you make sense of it all?
  • How to make sure your data is fit for purpose and get an ROI on your data investments
  • The biggest mistakes Procurement teams make when it comes to data and analytics?

Webinar Speakers

 Edward D. O’Donnell, Chief Data Officer for Procurement – IBM

Edward is IBM’s Global Procurement Data Officer and charged with the mission to advance Business, Intelligence, Deep Analytics, and Cognitive functionality across the procurement portfolio.

Marco Romano, Procurement Chief Analytics Officer, Global Procurement, Transformation Technology – IBM

Marco applies more than 15 years of experience as a procurement practitioner and project manager to understand complex environments that separate the noise from real issues and determine near-term and strategic solutions in realising business value. He leads a team that has saved IBM Procurement a significant amount in third-party costs and efficiencies through analytics data solutions and innovative sourcing strategies over the past three years. His team is also developing commercial analytics and cognitive procurement offerings leveraging data and technology for IBM clients’ competitive advantage.

 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.

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 28th March 2018

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.

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,  Basic Instinct: Are You a Data Hunter or Gatherer takes place at 1pm BST on 28th March 2018. Register your attendance for FREE here. 

How To Avoid Transaction Automation Landmines

When it comes to implementing transaction automation, managing the trade-off between the speed of execution and the granularity of data is a challenge…

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

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

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

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

On Day 3 of Conducting a Cognitive Symphony Anna Madarasz, Analytics & Cognitive Lead , IBM Global Procurement discusses the importance of appropriately applied transaction automation, striking a balance between speed of execution and granularity of data and how to avoid landmines.

The importance of transaction automation

Marco Romano, Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM discusses  taxonomy in his white paper, “Transaction automation is a business necessity.

“We all want to spend less time doing repetitive lower-value work and use our skills to provide higher-value services to the business. However, as with many good things, badly applied transaction automation results in poor data and ultimately lost productivity and analytics effectiveness down the road.”

Transaction automation landmines

Procurement organisations are usually very well intentioned when it comes to the implementation of transaction automation but that’s not to say the process is without its challenges. We asked Anna to describe some of the landmines she’s seen procurement professionals hit.

Catalogs or other automation processes that allow the editing of item description and price can make the life of the client and the buyers easier.

As companies  see the positive effect of this they are likely to have a higher percentage of their transactions and spend going through catalogs.

The risk with this, as Anna points out, is  setting yourself unrealistic targets, “there is always a logical threshold, over which it is a risk to apply automation. Of course, you will not implement a catalog line if you  only have two purchase orders of the same nature in a year.

“With wrongly defined targets, a catalog isn’t going to decide action and then, of course, you spend more time on creating and maintaining your catalogs than creating your purchase orders.

Bulk Purchases

Anna also advises avoiding the catalog lines that allow bulk purchases.

“Many times it is really not easy to identify the purchase in a fixed line. Let’s say you are buying server configurations [or] storage configurations. Those are made up of multiple parts, so you  have hardware, software and services elements in it.

“A configuration can be made up of 50, 100 lines. If you allow your clients and your buyers to raise purchase orders simply as a one line item, this server [could cost] one million US dollars!”

“Of course, it’s a really sensitive balance because you also want to avoid the workload of raising incredibly granular purchase orders, so it is really your call at what level you would like to analyse [a given category.]”

“If this is a category which is your main area of focus, then try to go granular, try to get the data. If it’s not, then it’s your call if you are allowing these bulk purchases.”

The trade off

“There is always going to be a trade-off between speed of execution and granularity of data” says Marco

“Finding the right balance again takes us back to developing an understanding of what data we need to achieve our desired cognitive and analytics state. There is no doubt that teaming with the right technology and innovation provider, and selecting the right tools, is critical to that balance”

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

Is Your Taxonomy Flexible and Multidimensional?

For a taxonomy to be effective, and feed a cognitive engine, it needs to be multidimensional, flexible, and situation based…

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

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

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

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

On Day 2 of the series, Anna Madarasz, Analytics & Cognitive Lead , IBM Global Procurement discusses how procurement pros are using taxonomy today, assesses homegrown taxonomy versus industry standards and explains why an effective taxonomy needs to be flexible, multidimensional and situation based.

What is taxonomy?

Marco Romano, Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM defines taxonomy in his white paper, as follows “Simply put, taxonomy is a hierarchical representation of data, products and services into logical groupings through the application of an alphanumeric scheme of sorts.

“Sometimes, these are industry standards and sometimes, they are locally-devised schemes to meet individual needs. These conventions are useful for purposes of reporting spend or segregating categories into lower-level components.

“However, the world in which we operate is not hierarchical; it is more like a network of many disparate parts of an ecosystem that is constantly interacting and evolving, and that it needs to be intertwined together to drive value

“for a taxonomy to be effective, and to feed a cognitive engine, the taxonomy actually needs to be multidimensional, flexible, and situation based.”

What does this mean?

1. Flexible

“There’s a level of flexibility you have to have, and usually if you do have a homegrown taxonomy, then it is there by nature” explains Anna.

Problems can arise within organisations when there is no global standard and different regions adopt different practices. “Let’s say one of your geographies breaks down their software license spend into accounting software or project management software. Whilst another geography chooses to break down their software spend into whether that software license is delivered electronically or non-electronically.”

Of course, you can’t take much global insight from this. So it is important to enforce some level of standard taxonomy. “But, depending on the industry, depending on the geography, you have to allow a little bit of flexibility.”

2. Multidimensional

There are many dimensions of taxonomy. And, multidimensional means that you really have to define what you need that taxonomy for.  Sometimes it will be sufficient to have your homegrown taxonomy, other times it might be preferable to have an industry standard such as UNSPSC. If, for example, you want to monitor the price trend of a certain product, then you will definitely need an OEM part number.”

“Multidimensional means that you really have to define what you need that taxonomy for.”

An OEM part number, for example, clearly defines a certain product or a certain service. If you have a notebook in front of you, and you type the OEM part number into a browser, your search will return exactly the same notebook.

You might however,  want to go down to the component level and ask what characterises that notebook?

“Is it the screen size, it is the memory, and so on, and so on? If you want to look for a comparable product in your catalog then  you need ontology.”

“If your business challenge is to note which supplier is providing a certain model of notebook cheaper then it won’t be enough for you to have an eight-digit UNSPSC code defining the notebook.”

3. Situations-based

In his white paper Marco states “It is not about how you buy, but rather what you buy. I would argue that an appropriate taxonomy is about identifying how you resolve a business problem through products or services.”

“Try to use taxonomy for future transactions. Trying to predict what your prices will be, trying to evaluate whether the quotations, whether the bill of material in front of you is competitive enough. Or use it for risk evaluation. There are endless opportunities, but it really all depends on setting up the proper categories.”

“What you should keep in your mind” advises Anna “is that you have to come up with a powerful combination of these taxonomy characteristics.”

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

Is Your Procurement Data Fit For Purpose?

How do you know when your data is fit for purpose? Start by putting the why before the what!

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

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

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

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

On Day 1 of the series, Marco Romano – Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM, talks about the development of data strategy, how to determine if a data source is fit for purpose and understanding the data that you want to see.

“To me the cognitive and analytic strategy really starts with the data strategy” explains Marco, “how we acquire, enrich, store and curate our data. Then it really becomes about what you do to that data to bring business value and actionable insights.

“I’d argue anything’s possible quite honestly, limited only by our imagination and one very important point, which is the quality and quantity of the data that’s available to us.”

The orchestra analogy

So where did the orchestra analogy come from?

“When you sit there at the start of a performance invariably you’re hearing these individual members tuning their instruments – warming up.

“It’s very melodic and you really get to hear the class of the instrument and the performer. But it’s really when the conductor walks on stage and all of those instruments are played together in harmony, that’s when it really becomes incredible.

That’s when the goosebumps come in and you hear the power of the sound.”

So how does this translate into data and insights? “One good piece of data is absolutely valuable and can really help you make better business decisions” says Marco. “But like an orchestra, a collection of this transformed data, properly orchestrated to provide these varied and powerful insights at the right time and in the right format for the intended audience really gives you that competitive advantage and operational efficiency.”

“You really need everyone playing from the same sheet of music, or the same hymn sheet!”

Putting the why before the what!

If the foundation to cognitive strategy is the acquisition of data, what kind of data should we be seeking to acquire? It’s easy to think about it in a one dimensional way, only considering one or two sources of data. But in reality data is coming from multiple sources. So where should we be looking for it?

“I think before you even answer the question of what data is it that you need, you really need to address the question of why you need it” explains Marco.

“What is the business outcome that you’re trying to drive? What is it that you want to achieve by acquiring this data? Then I think you can start to determine what data you need, and how you go about acquiring it and enriching it.

“I’ve seen an awful lot of effort go into acquiring data that never results in a business action. Not because it was bad data but it was just not fit for purpose. I think the importance here is that it is fit for purpose at the time that it’s needed and of course for the intended recipient.”

How do you know when your data is fit for purpose?

What are some of the things that you do to determine if a data source or a potential data source is fit for purpose, before you go down the road of actually trying to acquire and cleanse and build it into your models?

Marco firmly believes that you have to start with establishing what the intended outcome is that you want.

Secondly, “there is a point, which we of course have to consider, and that’s ROI. We can’t afford to throw manual resources off to fully invested activities. Some data is extremely difficult to come by, or extremely difficult to get to the level of quality that we need.

“I think you need to have a clear line of sight, of how these insights are going to allow you to change business course or alter business strategy and effect an outcome. Then you can start to also establish to what degree this data will help you achieve that?”

Ask yourself “how much impact is that data going to have, and in turn you can start to then make sensible decisions about ROI and the type of data that you need.”

Striving to conduct a cognitive symphony but in need of some expert guidance? Our podcast series starts today! Register here.

Buying Social, Expressing Yourself Online and Other Procurement Challenges…

Does it pay to buy social? Can I build greater trust online? And how do I prepare my team for AI developments? We answer some of the questions and challenges on the minds of procurement leaders…

The Procurious London CPO Roundtable was sponsored by Basware

How do you evolve your organisation from the mindset of  “we’re not doing anything bad” to actually “doing something good” ?

What happens when people who don’t know what they’re talking about start talking online, what does that mean for society’s leaders?

With the development of RPA and AI, are we all out of a job, and when?!

How should organisations go about developing existing talent to prepare them for leadership roles?

These are just some the questions we answered at last week’s  Procurious CPO London Roundtable, sponsored by BaswareWant to know the answers? Look no further…

The Buy Social Corporate Challenge

Charlie Wigglesworth, Deputy CEO – Social Enterprise UK (SEUK) gave a fascinating insight to the great work social enterprises are doing across the UK.

SEUK was established in 2002 as the national body for social enterprise. Now, with over 1200 members they strive to support social enterprises and develop the evidence base to showcase their benefits, as well as influencing policy and political agendas within UK government.

Social enterprises sit comfortably in between a charity and a private sector company. They have a clear social mission and  look to make profits to further that social mission – they are “businesses which trade for a social purpose.” 

“Businesses and governments can support social enterprise in lots of ways but the best way to do good is to buy from them,” explains Charlie.

They are much more likely to be better represented or minority led or based in the most deprived areas. They are more likely to employ people that wouldn’t have work otherwise had work or give money where people wouldn’t otherwise have had it.

Supporting these companies is good for your business because they are likely to be cheaper, more innovative and doing so gives corporations the opportunity to overlap and integrate CSR with normal business, rather than have it exist as a separate entity.

Buying social doesn’t cost more money or change the procurement process  but it has significant strategic and ongoing value for communities and your business.

Of course, as Charlie admits, it can seem hard to make changes and switch your mentality from “not doing anything bad” to “doing something good”. Charlie’s advice is to “find opportunities locally- they may seem tiny but there can be significant opportunities. Look at where you can do things directly.”

SEUK is working with a number of businesses for The Buy Social Corporate Challenge with the challenge to achieve $1 billion of procurement spend with social enterprises by 2020. Follow their progress here.   

The Conversation Century

Elizabeth Linder, Founder and CEO of The Conversational Century joined Youtube in 2007 and often thinks back to that year, a significant time for Youtube, in order to understand the social media space.

It was an exciting and life-changing time for skilled amateurs. A time that had millions of people singing in their bedrooms or racking  up millions of video views for a commentary on something they would never otherwise have been considered an expert in. Youtube ultimately offered them the opportunity to be heard.

Elizabeth is a strong believer that the internet is the best place to build trust. “The people” ( i.e. you and me) have already got this all figured out. But the reason so many people still believe the internet is destroying trust is that our leaders are still so far from getting it right! We simply don’t have leaders at a political level that have invested in a voice on social media.

Some key things to remember when trying to start conversations online:

  • Most leaders fear that they have to move at an increased pace because of today’s internet culture. You don’t. Go at your own pace but keep people informed as you do it. It’s ok to communicate to people that “the discussions are still in progress” or “we don’t have information on this yet” so long as you’re communicating something!
  • Believe in the power of primary sources because the public certainly do. Hearing directly from the source rather than a paper adds a lot of value to your communication. If you’ve ever been quoted in an article, blog or feature you’ll know the producer of that piece never quite gets to the meat of what you were trying to say because you don’t own the conversation or drive the discussion – they do!
  • Embracing in the hacker culture, i.e. making it up as you go along, is key. EU politicians, for example, only see social media as a tool for outbound communications and not for their inbound policy making. Hacker culture dictates that they need to consider the latter.

Elizabeth’s take away advice on owning the social media space? “Be yourself online and talk to people in a way that lets them in but not in a way so casual that you’re treating them like family.”

RPA and AI – Are We All Out of A Job?

Where are we at in terms of Robotic Process Automation (RPA) and Artificial Intelligence (AI) ?  Paul Clayton, Head of New Service Development, Basware outlined the current threats and challenges.

RPA essentially replicates things that aren’t easily automated; the things a human would do. Its skills lie in coding systems and inserting data. The downside to RPA is that there is no intelligence or decision making process, which means it can go very wrong!

There are four levels to AI:

  • Level 1:  This is the simplest form of AI and is quite prevalent today.  It’s reactive and rule-based with no memory or recollection and decides what to do based on a set of rules.
  • Level 2:  Limited, but not long-term, memory with decisions based on recent experience. It will react to data from the things it sees.
  • Level 3:  These are computers that learn and have memory. They  can re-formulate their view on the world so they can make decisions and remember actions. Whilst there are Level 3 computers out there, other than C3P0 (!),  it hasn’t been applied in procurement except in the areas of fraud and risk management.
  • Level 4:  This, fortunately, does not exist…yet! These are machines that are self aware and can form their own view on anything, redevelop their own software and change their behaviour entirely.

Levels 1 and 2 cover most of the repetitive tasks in procurement and finance. Not before long, 90 per cent of the people in this sphere wont be required.

So yes, as Paul admits, the jobs we have today won’t be here tomorrow and people won’t have careers in the way that we currently define “a career”. But the workforce coming in today is used to their environment changing every 30 seconds,  they already expect instantaneous change and they’re able to adapt quickly to something different.

Barclays’ leadership development process

Jonathan Harvey – Global Head of Talent & Culture, Barclays PLC, gave us a high level overview of Barclays leadership development framework and how it compares or contrasts with other leading companies.

When Jonathan joined Barclays two years ago he was tasked with assessing whether Barclays were doing enough to embed a common set of values and to measure their progress in embedding them.

He evaluated how they were developing existing talent in preparation for leadership roles and eventually established a set of criteria for potential leaders at Barclays. This criteria demands they live by Barclays’ values and inspire others to live by them and that they have leadership critical experience such as experience managing more than 1000 people, across different geographies and through different business cycles.

The most successful leaders of organisations will be those who can think the most adaptively and creatively, and that comes down to experience!

Procurious are hosting CPO roundtables on 30th May, 19th September and 14th November. If you’re a CPO and would like to attend one of our roundtables in person please contact Olga Luscombe via [email protected] to request an invitation.

Taking The Heat Out Of The Resolution Room

If you can’t take the heat get out of the resolution room! Or invite Watson! 

We’ve all been there. Something’s gone terribly wrong with a major customer delivery. Emails are flying around and there are rumours from HQ that “heads are going to roll”.  Everyone concerned has been summoned to “THE meeting” in order to resolve the supply chain issue.

We know what happens next; fists slamming, red faces, an embarrassing lack of data and a lot of verbal ping, pong. Eventually, a resolution is found.

But what happens when Watson is in the resolution room? Could this take the heat out of your supply chain disputes?

 What is a Resolution Room?

A Resolution Room provides the organisation the ability to collaborate quickly to resolve supply disruptions. Users can discuss and resolve issues with other colleagues, business partners, or their suppliers. What distinguishes Resolution Rooms from all other collaboration platforms is Watson.

What does it mean to have Watson in the resolution room?

The big benefit of Watson being in the resolution room is that it recommends experts, provides insight from all data and actionable advice based on learned best practices.  Over time, it leverages Watson’s capability to develop a body of knowledge by learning how issues were best addressed in the past.  This enables greater speed and accuracy in responding to future events.

“Watson provides the opportunity to deliver business value and insights from all of these data insights – structured and unstructured, data from weather patterns, news, D&B and supplier IQ,” explains Joanne Wright, Chief Supply Chain Officer, IBM.

“It does this with speed and accuracy. No more are we saying ‘OK…let’s get the data and meet again tomorrow’ because Watson takes my team’s input and incorporates that into the next iteration as we go.”

Watson In The Resolution Room: A Case Study

IBM Watson is always a room participant, so you can draw on Watson’s expertise using natural language to ask a question, for example: @Watson what is the status of order ABC123?

Imagine the following scenario; A Late Shipment alert in the Ops Center reveals that orders of your most popular drone are in jeopardy because the shortage of the entire supply of a critical part, a lithium battery, has been delayed. You create a Resolution Room to manage the incident collectively.

Watson is in the room.

Whilst your team discusses how best to manage the problem you have the ease of asking Watson questions such as:

  • Which customer has the most sales dollars that will be late?
  • What are the financial impacts of any late orders?
  • Have we experienced this problem before? Who are the experts who have worked on these similar issues in the past?
  • Are there any alternate suppliers for part number 46001?
  • Why is there a shortage of lithium batteries?

Watson can provide answers to questions such as these based on the data available in the data model and in other Resolution Rooms. Learning over time, it becomes smarter and able to provide better insights about your supply chain.

Click here to try a Resolution Room demo. 

Got a big idea you want to push through a big company or simply want to learn more about Watson and the Resolution Room?

Sign up for next week’s procurement webinar, How IBM Built the Cognitive Supply Chain of the Future. hosted by Tania Seary and featuring IBM’s Chief Supply Chain Officer Joanne Wright. 

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. 

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. 

 

Against The Clock: 60 Seconds With IBM….

What makes for an exciting workplace, how do you identify the great leaders and what skills are crucial for procurement? We put IBM’s Graham Wright to the test in a round of quick-fire questions.

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

With less than two weeks to go until we launch The Big Ideas Summit in Chicago, we thought we’d have a quick catch up with some of our keynote speakers to discover what makes them tick, where they see the procurement function heading in the near future and how they would reflect on their successful careers.

First in the hot seat is Graham Wright, IBM Vice President, Global Procurement and Cogntivie Procurement services. He’ll be enlightening our Big Ideas audience on Procurement’s Radical Transformation and the impact of cognitive technology.

But today, we want to know what makes him excited about his work, what he wishes he’d known at 20 years old, and the key skills he’s looking for in a killer team.

How do you stay relevant in a world of fast-paced innovation?

Firstly, client interaction. This gives you exposure to a huge variety of approaches by industry, country and company to innovation. You have to remain selective.

Secondly, you cannot read everything.  Instead, take the time to focus on the few key areas you want to learn about.

Thirdly, make time to network and engage through all types of media and professional and industry associations to get the information and bounce ideas to ensure you have learnt and can develop your points of view.

Finally, take the time to think !

What makes you excited to go to work on a Monday morning?

  1. Desire to win.
  2. Clients, my team and the engagements.
  3. Excitement of driving an agenda through IBM that can truly change the world through data, the next natural resource.

What skills and talents contribute to an all-round, great team?

  1. Self motivated, client focused individuals with an operating environment allowing learning from mistakes.
  2. Soft skills, but I’d call them consultative!
  3. An enquiring, questioning mind with the ability to apply innovative, design thinking.
  4. Passion and drive for the business, profession and self.

What 3 attributes make a great leader?

  1. Confidence to lead and use multiple styles.
  2. Being a good listener and a coach.
  3. Communicator with the strength to give “Straight Talk”

What do you know now that you wish you’d known when you were 20?

  1. Time goes very quickly. Have a plan and follow your dreams. Experience as much as you can.
  2. All those successful Internet Stocks !
  3. The benefit of exercise and healthy balance.

Want to hear more from Graham? 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. 

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).