Tag Archives: technology

Why A Source-To-Pay Ecosystem Is Best-Practice

Learn why end-to-end, source-to-pay (S2P) suites are no longer a feasible option for modern businesses and instead, organisations should turn to partner ecosystems.


Master of all? Or specialise?

Once upon a time the “one size fits all” vendor approach seemed ideal. It definitely held appeal as it seemed to be an ideal way to cover all an organisation’s S2P needs while only requiring one vendor.

But now, the industry has matured to learn that no vendor truly offers a full source-to-pay (S2P) suite that is best-in-class across all modules. Not to mention, the time it would take to roll out and maintain such a solution. In the past decade, vendors attempted to support the entire S2P process, however, as buying organisations strive to digitalise procurement and sourcing, it’s becoming apparent that a single suite is typically not enough to accomplish their goals.

Understanding your S2P ecosystem

Similar to wireless providers that switch between towers to ensure you never lose service, a proper S2P partner ecosystem makes sure you cover all areas of business spend, by using a multivendor approach. As noted in Gartner’s “Predicts 2019: Sourcing and Procurement Application Vendors Embrace APIs and the Ecosystem Approach”, “Growing partner ecosystems are making it easier for organisations to take a connected, multiple-solution approach to sourcing and procurement automation.” “By 2021, major source-to-settle and procure-to-pay vendors will have more than doubled their preconnected partner ecosystems.”

While the bulk of importance is directed towards automating purchasing, payments, and a flexible supplier network, there are many value-add services that surround the S2P process. Services like supplier management, risk management, and contract lifecycle management often only offer basic functionality from suite providers claiming an “end-to-end” solution. Best-practice suggests selecting one vendor for the core areas of focus, then supplementing with other products and services from specialised providers. Companies should evaluate the data in an ecosystem to ensure core information is shared between partners so that analytics can be applied on data across the systems.

To understand the value of a vendor’s product ecosystems and to evaluate the effectiveness of its community, Gartner recommends requesting the following:

  • Data from the vendor outlining the number of ecosystem participants, the trajectory at which the ecosystem is growing, and insight into those that use it regularly.
  • Metrics that disclose the number and frequency of documents, components or templates being uploaded by the vendor to the community (often called an online library).
  • A summary of the past three years of product updates originating from, or inspired by, suggestions by ecosystem partners.
  • Customer references that you can contact directly for an assessment of the vendor’s product ecosystems, and any user groups that they may participate in.

Analyst perspective

In an interview with Magnus Bergfors, in conjunction with Spend Matters, Magnus details why, at one point and in some circumstances, an end-to-end suite.

He explains, “An end-to-end source-to-pay suite often seems more appealing than a specialist solution at first glance. And there are advantages to it — there’s no doubting that. The most practical one is from an IT management perspective. Your business will have fewer solutions to deal with and fewer integration points with an end-to-end approach. Second is that you get a similar look and logic across multiple solutions, making it easier to use. The third advantage is in the analytics where you can have data from multiple modules succinctly located in one place.”

Bergfors reveals that though there are many appeals to a singular S2P suite, it’s not always the best option. There are inevitable problems, including “…that your organisation sacrifices specific functionalities with a unified suite. When you sacrifice too much, it starts impacting your ability to manage your spend and stay agile in your operations.”

Additionally, he warns that “A lot of the end-to-end suites in the market today aren’t natively developed or integrated and are instead made up of acquisitions, some of which are better integrated than others.” So, even if a S2P suite claims to be end-to-end, it might operate more like a patchwork of solutions than a cohesive unit.

Join Basware at Connect Digital – free webinar series

Join Basware for our new Connect Digital webinar series where Magnus will further discuss his views and we’ll offer the opportuning for a live Q&A session. Find details for the webinar below.

Determining Your Future Tech Strategy – Spend Matters

Wednesday 10 June 2020

Hear from leading industry analyst Magnus Bergfors from Spend Matters on how to best determine your technology strategy and get the most out of the increasingly diverse and broad options available in the procurement technology market.

Register here

How To Find Your Perfect Tech Match

Being swept off your feet by a new partner is something most of us have experienced – but how do you know that you’ve found the perfect match when it comes to your tech solution?


Choosing a new tech solution isn’t a task you do every day.  It’s no doubt something that you’ve considered for a while.  You’ve attended all the conferences, read all of the analyst’s reviews, talked to your peers, and dreamed about what life would be like with your new tech.  You’re keen to modernise; to give your organisation the functionality that it needs.  And with so many solutions out there, surely it won’t be hard to find the one that’s right for you.

But finding that perfect match is not as easy as it seems.  All the solutions can start to look the same after a while and you are looking for more than just a pretty face.  You are looking for a long-term relationship that could last for half a decade or more.  Get it right and it’s a match made in heaven; get it wrong and you could have a major tech fail on your hands.

So how can you navigate that selection process and find yourself a tech solution that’s a perfect match?

1. Don’t Settle

Finding your right partner should be based on thinking about what’s right for you.  Be careful of jumping in too fast just because you heard your preferred solution worked for someone else.  Go deeper and look for solutions that address your industry’s biggest challenges.  Also identify what makes your organisation unique and make sure your new tech addresses your organisation’s uniqueness. 

This is even more important today due to the cloud.  You see, in the past, on-premises software could be customised to do almost anything you needed it to, as long as you had the time, money, and resources to get it done.  When you find gaps in cloud-based solutions, you have to apply for a feature request and hope they prioritise your request or end up having to settle for an inferior solution. 

This is why identifying those gaps up front before you finalise your selection is so important.  This is a primary reason on why we are such big proponents of our clients completing a Phase 0 (or a Success Blueprint as we call it) prior to making their final selection if they consider their environment complex.

You can also start to narrow down your list by looking at solutions that are going deep and specialising in your industry.  You may also start by using tools like the Gartner magic quadrant to focus your search to the “Leaders.”  Then go beyond that initial approach to refine your search.

Think about what the new world’s going to be like with your perfect match tech provider, but don’t settle until you find the solution that is right for you.

2. Questions are your ally

If you’ve ever been approached by a tech solution provider, or engaged them as part of a software selection, you’re sure to have experienced the full ‘sales pitch’ approach:  tales of brand-new, cutting-edge software that is designed to solve any and every problem; presentations filled with all that  sales speak.

Make sure you don’t fall prey to traditional “sales speak” and you seek the underlying truth.  The only way you will find what that truth is, is by asking the right questions.  We go in greater detail on the top 5 most common and what questions you can ask to find the truth in our Major Tech Fails, sales speak blog and podcast.

When looking at new tech solutions, there’s no such thing as a silly question. When you start, go in armed with a list of questions with a score card that you can use for each vendor.  It is important to follow a proven process to evaluate each vendor so they are treated fairly and asked the same questions.  You will know you have the right questions if key points of differentiation between vendors are identified and called out.

3. Are you compatible?

Unless you are starting a business from scratch or taking a scorched-earth approach to tech solutions, you are going to have legacy systems that will need to be integrated with the new one.  Don’t think that starting a new life with your perfect match tech solution is going to be easy.  Compatibility will be something you need to work on.

At RiseNow we take a systematic approach to identifying compatibility risks so that the challenges, use cases, resources, level of effort, timelines, etc. are known up front before the implementation project starts to eliminate any potential surprises.  As we see, these surprises are what typically cause projects to go over budget, not finish on time and miss expected results.

But these surprises can be avoided.  For example, we had a client a couple years ago that was in search of a new S2P system.  They were in talks with all the typical S2P system providers, but they knew their issues were bigger than what technology alone could solve.  They were not sure how best to address these, but were willing to engage us prior to the implementation kick-off to resolve those issues so they didn’t become problems during the project.  We did just that which allowed us to finish the implementation in 7 months and deliver on the key success criteria that got the project approved.  Had we skipped their engagement before the project, I am certain the project would have gone over budget, not finished on time and would have missed the objectives. 

Are you seeing a pattern now?

4. Beware of the people pleasers

If something looks and sounds too good to be true, it usually is. When a tech solution provider tells you that their system does everything you want and more, it should give you pause. The people pleasers are after your business and some will say almost anything they think will work to convince you.

No tech solution will be 100% perfect. Perfect would be someone willing to say no to you, but also willing to work with you to minimise the no’s, identify viable alternatives or solutions that work for you, and focus on ways to maximise your value, especially in this economic climate.  You see, there is no magic bullet when it comes to tech solutions, so if someone comes offering one, you are probably better off looking elsewhere.

If not, we have seen organisations forced to settle and then trade off functionality and adoption of suppliers/end users because it is now too late to reconsider. No one has an unlimited budget for tech and, like all relationships, there’s going to need to be some give and take.

5. In for the long haul?

Finally, the key part to finding a perfect partner is knowing they are willing to go the distance with you and they’re in it for the long haul. For procurement tech, a partnership could be anywhere from 2 years to 10, so it’s critical that the tech partner also sees the relationship in the same way as you do.  We call this “organisational alignment.”  Do their values align with yours?  Are they looking for a sale, or do they truly want to partner with you?  How committed are they to your industry?  Do you have access to their executive team in case you run into problems? 

Are they willing to put in the work to make the partnership a success? Will they be open to questions, discussions and problem-solving to build to success? If you and your team feel aligned, then your perfect partner may be closer than you think.

If you’re looking for the perfect partner in tech, there are plenty of pitfalls to avoid. Not every supplier is going to be right for you and it might take some time to find the perfect match for your business.

The good news is that there are tech suppliers who want the same thing: a successful tech implementation set up to succeed and not to fail, by being clear what you want from the outset, asking the right questions and being open minded to improving your processes when required to better fit your perfect tech match.

To go deeper on how to find your perfect tech match, download our e-book ‘How To Select Source-To-Pay & Procure-To-Pay Systems That Deliver Results‘ and tune in to our series ‘Major Tech Fails.’

How To Make Your CEO Fall In Love With Your Tech

What are the best ways to ensure you have your CEO’s backing for a tech implementation project?


You’ve come up with your specification and your supplier selection is complete. Your chosen tech solution has beautiful features and the potential to fulfil your wildest efficiency dreams. But you’re worried that the attraction won’t spread through your organisation starting at the very top.

How can you make your new tech solution an irresistible proposition for your CEO? Here are my tips for making sure it is impossible to resist.

1. Reduce the risk

I’ve met many CEOs in my career. I am sure that yours is no different from the rest. Their priority is to deliver strategic business goals and improve the bottom line. So it’s highly unlikely that a tech implementation over in procurement is front of mind.

Your CEO reads the news and see stories about IT project cost and time overruns. And their brief is to protect company reputation at all cost. While procurement may not always be top of their agenda, it’s important that your tech is a success story rather than something that keeps your CEO up at night.

And what I’ve found in all the tech implementations that I’ve been involved in is that managing risk should always be prioritised.

Set deadlines and milestones at the outset that you know your team can achieve to reduce the risk of project time overruns. Work with your provider and implementation partner at the start of the project to identify financial resources that will be required and any contingency funding that you need to put in place. You could even carry out a full dry run process (that we call blueprints) where we work to anticipate and eliminate risks and surprises.

These blueprints also bring alignment between your solution provider and implementation partner at the start of the project. This means all parties agree on:

  • resourcing
  • timeline
  • costs

Incorporate a contingency into your implementation plan. This means you won’t have to go back to your CEO and ask for more money if, for some reason, your blueprint changes or something doesn’t go as planned.

By actively managing risk you can set your project up for success and secure its position in your CEO’s heart.

2. Keep your promises

Your CEO wants any project that is approved to be delivered without deviation from the agreed scope. And the good news for you is that the evidence shows tech implementation projects now regularly achieve the objectives that they’ve been set.

One of our Fortune 200 clients’ CEO recently challenged our project team with an ambitious project objective: “I want you to implement a solution that everyone uses and everyone loves.”

We managed expectations by making sure that the blueprint was focused on the objectives of the project. This provided the guard rails to keep the team focused and not let them veer off the agreed project course.It’s important to remember: if the most perfect workflow or tech solution design does not meet the objective you set out to achieve, then you’ve broken any promises that you’ve made.

You can stay in scope by choosing an experienced implementation partner, who can help to keep things on track. Make sure their values align with yours and they have experience helping others move to where you want to go. Don’t forget your implementation partner becomes an extension of your team, and if their values are not aligned with yours, it will directly impact success.

When selecting an implementation partner think about their staffing approach:

  • how do they compensate their people
  • what’s their company culture and morale
  • will you have access to executives if you need to escalate

Doing the thinking upfront with your project team about scope, implementation partners and key deliverables can help ensure your project objectives are achieved.

3. Make it an attractive proposition – and deliver

To make your tech solution attractive to your CEO you’ll need a compelling business case. And what an attraction the promise of savings and efficiencies is – particularly when this justifies the investment involved. However, as with promises made in any relationship, you need to do what you say you’ll do.

You need to carry out robust work upfront to fully quantify what can be achieved.  Involve Finance in the process and get them to sign off on savings you’ve identified: getting their buy-in will help when the time comes to demonstrate these benefits are realised.

Once implementation starts, make sure you’ve got robust monitoring processes in place. You might also want to track benefits delivered on the way. There’s no better way to retain the CEO’s backing than being able to produce evidence that your promises aren’t being broken.

4. Focus on good times, not bad

As with any tech implementation, there are likely to be challenges along the way. And you don’t want talk of bad times to reach the ears of your CEO.

Perhaps one of your teams needs to work in a new way. Maybe the functionality isn’t quite what you recalled from the demo. It’s important that you actively manage these opportunities for improvement and change rather than leaving them as opportunities for negative comment and discontent.

On a global implementation for a US-based Fortune 500 client, we ran into some very heavy resistance from the Project Champion and his direct reports. Every idea, potential solution and decision was met with a litany of questions and the suggestion that our solution just couldn’t be rolled out.

Not only was the timeline in jeopardy but the team was dysfunctional and riddled with a lack of trust and response. Fortunately for the team, that negativity didn’t filter up to the CEO, or the project would have been doomed to failure right from the start.

By focusing on local solutions, we managed to change the direction of that project. We focused on meetings and briefings that were face-to-face. Getting in front of detractors and people with concerns was one of the most effective ways to reduce resistance and concerns. Within a couple of months, a positive attitude towards the project was achieved and progress was back on track.

And as making any implementation is all about people, how about adding a bit of pizazz to your implementation by using a collaboration app? It maps and tracks where your stakeholders are at. With graphs and charts at your fingertips, there’s no better way to bring the project to life and demonstrate the buy-in from your people when you present it to the CEO and the Board.

Using a continuous improvement approach, you can make sure that any challenges are addressed. This way, the only noise your CEO hears is the sweet sound of success.

If your tech implementation is effectively delivered, it won’t be difficult for your CEO to fall in love. Great timing, promises kept, an attractive business case and a focus on good times – not bad – will make your tech solution just impossible to resist.

Did you know that Matt has just teamed up with Procurious to launch ‘Major Tech Fails’ – a series looking at everything from implementations to getting buy-in. Register here

Deciphering The Sales Speak – 5 Common Phrases Used In The Sales Process… And What They Really Mean

The top 5 software sales claims may seem familiar – but what do they really mean, and what questions should you fire back?


As procurement pros, we like to think of ourselves as experts who can cut through the fluff of the sales pitch and get down to what we think really matters.  

But let’s face it . . . some salespeople are so darn good that even the sharpest of us can’t quite sort the wheat from the chaff. And with procurement software sales teams often being some of the best in the business, well, we have our work cut out to decipher their code for ourselves.

I have had more than a few years of experience trying to work through this myself and though practice may not always make perfect it definitely gets us closer to where we need to be.  So, from my years of experience in being involved in more than 500 software evaluations, and being the one who has to make it all come together as the implementer, I want to help you navigate through the language and the catchphrases that we often hear from software sales teams.

Here are my top 5:

1. ‘The integration is easy’

One of the most common things we hear from sales teams that are trying to speed their way to a sale is that “Integrations are easy.”  Getting the system to do what it’s supposed to while talking to other systems is pretty straightforward. We all want to believe it, but as you find out when you are involved in an implementation, there is real work that must be done that is not easy, and someone has to do it.

I always laugh when I hear this stated in front of my clients IT teams.  You see, IT knows the work that is involved in a project like this and are certain that the word “easy” does not belong in the same sentence. They also know that anyone that does call it “easy,” is most likely someone who has never attempted to do this type of work.   

When you hear this it’s a good idea to have your questions ready, including:

  • What business objects are typically in scope in a project like this?
  • If you have multiple ERP’s, will each of them need to be interfaced with?  Who will be responsible for transforming each file?
  • Who will be doing the field level mapping?
  • Is there a middleware or any prebuilt connectors that can be leveraged?
  • Where has this middleware or connector been used before?
  • Do they have similar volumes/scale/complexity?
  • What  system dependencies are there?
  • What systems have you integrated with – even what version of systems? 

No question is too basic here – in my experience keeping it direct and to the point works best. 

2. ‘Your suppliers are already connected to our network’

A word can mean different things to different people and the secret to understanding the sales-speak here is to work out what ‘connected’ really means. It can mean your suppliers have participated in a sourcing event or once received a PO from another customer.

It can also mean that they have log-in information and have received all of the really great welcome emails that new suppliers are bombarded with that they have no idea what to do with. Or it can mean they are actually transacting through the system and are receiving POs and payments from other customers in the manner in which you intend they start doing for you.. In that case, they’ll know exactly how to work out what they need to do to make your life and theirs easy as you get your new system implemented.

Ask lots of questions here, especially when it comes to your big suppliers, the ones that would spell chaos for you if things didn’t go to plan . . . it’s not a bad idea to ask them where they’re at in the process of being enabled with other customers and identify any potential issues you may have before you get too far.  

3. ‘Training and change management aren’t needed for your end users and suppliers’

We all love digital technology – and sites such as Amazon and Google are designed to make it pretty easy for us to use them without the need to be trained. But we can probably all agree that many systems built for the enterprise seem to struggle to bridge the gap on major process and use case changes that take someone out of their comfort zone.  Even if it appears easier. Especially when their job does not involve them being in the platform all day, every day. 

Here’s where it is important to put yourself in the role of the user and see the system through their eyes. It’s even better to get them involved early and ask them how much change they anticipate for their department/region/etc and what type of support they will need to be successful.  

Don’t let the salesperson, or an enthusiastic user, convince you that you don’t need any change management resource. You can work out how much is needed – and, if your salesperson is right, it might not be that much. But it’s always a smart move to let your stakeholders and suppliers know what is happening, why and how it is going to impact them.  If you get any resistance, you will be thankful you have change experts at the ready to address it.

4. ‘You don’t have to have clean data prior to starting implementation’

You don’t have to follow a recipe when cooking something for the first time. But it will help – unless you like surprises and don’t need them to be good ones. Your sales team will say this because, honestly, who wants to spend time on boring stuff like data cleansing . . . especially when we all know it can take 4 to 12 months to clean up if you’re lucky? And they’re smart enough to know that too much time and effort upfront without real results can kill the deal. While we all want to get on with the really cool analytics, there’s a reason you need to do your groundwork.

If and when you hear this one, go ahead and ask the question we all know: What about the saying ‘Garbage In, Garbage Out’? You never know: your sales team may be able to share some new things they have tried where data cleansing hasn’t been needed. And they might have some examples of where this has worked before – and that’s definitely worth finding out about. If not, put a plan in place now for how your data will get cleansed and adjust what modules you purchase, sequence of rollouts and your implementation plan accordingly.  

5. ‘Don’t worry about transforming your processes as the technology has best practices already built in’

‘Leverage’, ‘optimise’, ‘game-changer’ . . . It’s only a matter of time before your salesperson drops the gold standard of corporate buzzwords in – ‘best practice’. While the phrase can be meaningful, most of the time it’s a sales pitch to get us over the line. We can implement a new system and get to best practice at the same time? Sign me up! But best practice means different things across organisations, industries and sectors.

When you hear this, two things need to happen. Firstly, take a look at your implementation plan and make sure it includes a review of all of your direct and related processes. And secondly, take a look at the ‘best practices’ that are included. They may be right for you, and now is is a great time to update and improve dated processes. If not, you’ll have done your review and know that what you have ended up with is the best thing for your business.

So when you hear these or similar claims as part of a sales pitch for software, remember what they typically really mean. Be prepared with questions for the sales team to ensure that the tech solution you sign up for really is a good fit for your organisation.

Did you know that Matt has just teamed up with Procurious to launch ‘Major Tech Fails’ – a series looking at everything from implementations to getting buy-in. Register here

Information Hoarders Be Gone

Knowledge is power, but knowledge is now being democratised and made accessible to all, thanks to the development of AI.

Long live the democratisation of data

Is there someone in your work life who is hoarding information? Holding the data cards very close to their chest? Making it difficult for you to succeed because they have vital information and know-how shackled up close to their desk?

Good news – their days are numbered!

Knowledge is power, but knowledge is now being democratised and made accessible to all, thanks to the development of AI.

A democratisation of data

In supply chain, data plays a very critical role; data about suppliers, shortages, shipping and shelf life, the list goes on. And supply chain professionals are inundated with making sense of all this data.

Traditionally, to unlock the value from this data we’ve needed a group of people with deep technical skills in our teams to gather, manage and query.  Exhausting and time-consuming work, leaving little space or brain power for problem solving and decision making.  The need for these skills has concentrated the power of data in the hands of a few, rather than the wider team.

Nobody knows this better than the supply chain team at IBM.  With thousands of supply chain employees, over $40 billion in spend and millions of SKUs to manage from over thirteen thousand suppliers in their supply chain across 175 markets, there is a lot of data to keep track of.  There is a real need to ensure every supply chain professional has all the information to make the right decisions at the right time.

I reached out to IBM’s Chief Supply Chain Officer Ron Castro – firstly to congratulate him on his Manufacturing Leader of the Year by the National Association of Manufacturers. However, I also asked him to participate in our Supply Chain Career Boot Camp and then went on to quiz him on the detail behind why Gartner had been recognised by the IBM Supply Chain team as a Finalist in their Chainnovator Awards.

Given the scale and complexity of the IBM supply chain, Ron and his team turned to AI to augment the team’s capabilities.

Ron’s experience leading teams across the globe resulted in a really pragmatic approach.  AI was used to upskill supply chain talent and engage with subject matter experts. The analytics and tools developed gave wider access to data insights for their supply chain pros around the world.

Now, everyone in IBM’s supply chain can make better decisions and be creative – which is just the kind of capability needed in this new and challenging decade ahead.

There’s no more tedious data capture and formatting for the IBM team.  No more worrying that they’ve missed something in the never-ending news stream or even the weather forecast.

The Human + Machine Personas

For many years, the IBM Supply Chain team has known that one type of tech solution couldn’t fit all the needs of their team.  Everyone has different data needs according to their role – some are forecasting, others are planning and many are executing or delivering.

IBM’s approach is simple – it’s people-centred.  Data personas were created to map each supply chain team member’s requirements.  Now AI serves up data in the format and time that suits their needs. 

IBM Sterling’s AI helps you:

  • Gain visibility into data from across your systems and silos
  • Understand external events and their impact on your supply chain
  • Get ahead of events and buy yourself time with predictive insights
  • Capture and share knowledge and best practices with digital playbooks

By creating these personas, IBM Sterling uses AI to provide just what the forecaster needs to augment their brain and make the decision to keep those supply chains flowing.

Unlocking Collaboration

The final piece of the jigsaw is a concept that’s close to my heart – collaboration. 

IBM Sterling’s AI reviews unstructured data in its many and varied forms.  Whether it’s emails, discussion threads or reports, AI now has the power to find insights from previously inaccessible data sources such as team conversations, social media and news feeds, and weather reports… and serves it back to the person who needs it, when they need it.  AI makes key suggestions like:

  • Why don’t you consider this? – “They used it in the UK when weather conditions were similar”
  • Is this a change in risk level?  – “The last time this supplier’s lead times dropped to this level there was an underlying shortage issue”

It’s exciting thinking about the improvements in supply chain from the introduction of AI Augmentation.  I think we’ve only scratched the surface and can’t wait to see what happens as the power of IBM Sterling’s AI is unleashed on our supply chain brains.


Is Blockchain The Next Big Thing For Supply Chain?

What does blockchain mean for your supply chain?

By Oleksandr Nagaiets/ Shutterstock

Few people working in supply chain roles have a clear understanding of how this fledgeling solution called blockchain is, or could be, applied in their organisations. There is much hype and misinformation in the marketplace and much of it is due to the unproven nature in practice and unknown long-term costs of blockchain applications.

So what is blockchain?

Without getting too technical, the underlying principle of blockchain is to provide a secure environment where encrypted business transactions between buyer and seller can happen without the need for third parties such as banks and clearing agents to intervene. According to McKinsey,

blockchain is an internet-based technology that is prized for its ability to publicly validate, record, and distribute transactions in immutable, encrypted ledgers”.

Immutable, in this case, means that each link in the blockchain is completely secure and unbreakable. Blockchain’s format guarantees the data has not been counterfeited and that information can be read by any authorized party.

There are two main types of blockchain applications, one private and the other public. In the commercial environment, the networks are mostly private, this type of operation is sometimes referred to as “permissioned”.    Read more detail about how Blockchain works here.   

The world before blockchain

This diagram below is typical of a traditional sales transaction with many intermediaries.  Currently, these intermediaries process, verify and reconcile transactions before the ownership of the goods or services can pass from seller to buyer. How many people does it take to move a container of avocados from a Kenyan seller to a UK buyer?  At least thirty, but more importantly, there are over 200 individual transaction events and communications involved. 

What traditional buyer-to-seller transactions look like today  

What supply chains could look like tomorrow  

The world after blockchain

In a private blockchain network,  the procure-to-pay process is streamlined so that documents are matched triggering payment and creating a verifiable audit trail.   Nestlé is breaking new ground in supply chain transparency through a collaboration with OpenSC – an innovative blockchain platform that allows consumers to track their food right back to the farm.  The initial pilot program will trace milk from farms and producers in New Zealand to Nestlé factories and warehouses in the Middle East.

What does blockchain mean for your supply chain?

How can this fledgeling technology be beneficial? According to McKinsey, there are three main areas where blockchain can add value:

  1. Replacing slow, manual paper-based processes.
  2. Strengthening traceability which reduces quality and recall problems
  3. Potentially reducing supply-chain IT transaction costs  (maybe?).

The answer seems to lie in its potential to speed up administrative processes and to take costs out of the system while still guaranteeing the security of transactions.  Blockchain has the potential to disrupt or create competitive advantage, but the biggest barrier to its adoption is that so few have a good grasp on how it can be of use in their operations.

The potential benefits

  • faster and more accurate tracking of products and distribution assets, e.g. trucks, containers, as they move through the supply chain  
  • reduction of errors on orders, goods receipts, invoices and other trade-related documents due to less need for manual reconciliation 
  • a permanent audit trail of every product movement or financial transaction from its source to its ultimate destination.
  • trust is created between users through using a transparent ledger where transactions are immutable, secure and  auditable

What are the obstacles?

1.The cost

Implementing a blockchain solution may require expensive amendments and upgrades to existing systems which is both costly and time-consuming. Who pays and what is the return on investment?

2. Change management

There will be a need to convince all involved parties to join a particular blockchain and collaborate for mutual benefit. More openness will be needed, the old ways of protecting information won’t work. There is likely to be some mistrust initially especially around market share and sales data.

3. Rules and regulations

Legal advice is essential to understand what regulatory frameworks must be complied with. There are no accepted global standards for Blockchain that align with maritime law, international customs regulations and the various commercial codes such as Incoterms that govern the commercial transfer of ownership.  

4. Security

Is Blockchain really unbreakable?  Hackers would not only need to infiltrate a specific block to alter existing information but would have to access all of the preceding blocks going back through the entire history of that blockchain, across every ledger in the network, simultaneously. Even with encryption, cyber-attacks are a concern and cybersecurity costs money.

Transacting using “smart” contracts

Blockchain can be used to create “smart” contracts that execute the terms of any agreement when specified conditions are met. The “smart” part is a piece of computer code that predefines a set of rules under which the parties to that smart contract agree to interact with each other. Not recommended for beginners.

What industries will benefit most? 

Industries with the greatest potential are those that deal with extensive paperwork such as freight forwarding, marine shipping, and transport logistics. 

Tracking ofautomotive parts as they move between manufacturing facilities and countries is an attractive application as interfaces between motor manufacturers and their 3PL transport partners are complex and often not well-integrated. Toyota is venturing into developing blockchain solutions for its core parts supply chain operations.

Vulnerable and highly regulated supply chains such as food and healthcare

can benefit due to their need for transparency. Real estate has great potential due to the mass of records and documents involved such as transfers of land titles, property deeds, liens etc.  

Avoiding the hype

Gartner says that although blockchain holds great promise, often the technology is offered as a solution in search of a problem. They advise that “to ensure a successful blockchain project, make sure you actually need to use blockchain technology. Additionally, much of what is on the market as an enterprise “blockchain” solution lacks at least two of the five core components: Encryption, immutability, distribution, decentralization and tokenization.”  Gartner’s long term view is that blockchain will only move through its Trough of Disillusionment by 2022. 

Will it work in your supply chain?

The jury is still out on whether blockchain will really create a competitive advantage. Also, the cost of running a blockchain in time and resources is the unknown factor. For companies thought to have efficient supply chain operations with trusted partners and reliable databases, such a complex solution may not be needed. A supplier portal that is housed in the cloud may be more than adequate when coupled with an established ERP system.   

But wait, the blockchain action doesn’t stop here! Join us on October 15 with blockchain experts Shari Diaz, Innovation Strategy and Operations Program Director, IBM Watson Supply Chain and Professor Olinga Ta’eed, Director of the Centre for Citizenship, Enterprise and Governance in this webinar brought to you by IBM and Procurious. Click here to register for Blockchain: Supply Chain’s 21st Century Truthsayer.

5 Days Without Technology

I spent five days disconnected from technology; this is how, and what I did instead…

By Africa Studio/ Shutterstock

Irrespective of what time of the day you are reading this blog, there is one certainty. You would have spent some time on line whether it was for business purposes or for personal engagement. If you are anything like me, you would have checked the weather before heading out on an early morning run. Not exactly sure why given we all know what Melbourne is like in winter. Cold! You might have gone with some social media scanning. Liked something on Instagram? So have 3.5 billion others. Checked your facebook? You’ve joined 1.5 billion users. Looking for professional connection or posts of interest amongst LinkedIn’s 575+ million users? Let’s not even get to all of the other platforms that have proliferated. After all, it’s not just the social, social media. Chances are you have also been on email, read the news on line, messaged or What’s App’d a connection, or possibly had a call via Zoom or Skype. Even likelier you have had to make your way somewhere and needed an Uber. Phew, busy morning, even busier day! But with so much to do, isn’t it lucky that it is all there on our smartphones or laptops, smart TV’s, or home assistants,  making our lives so much easier. Or is it?

Last year I had the opportunity to be in Asia for a trip that was intended to be a holiday. It seemed smart to tie in business meetings to make the most of the fact that I was in the region. I rescheduled work commitments, let colleagues know I was away and shared my itinerary with family and friends. There was no question of whether I would take my phone and my laptop with me. After all, that’s what the modern day break looks like and with the business tied in, it wasn’t even an option to think about leaving even my laptop behind.

Admittedly and somewhat proudly, I can admit that by the end of week one the laptop had not exactly been in overdrive. It languished after a couple of video calls and a handful of emails. The phone was a different proposition altogether. Rides to organise, destinations to get to, places to eat to check out, messages to family. A combination of business and leisure that made the time not just busy but always-on.

Fast forward another week and an opportune trip for work has unexpectedly taken me to Myanmar. The great thing about being digital that we all know, is that anywhere, anytime, can make all sorts of options possible. So when a friend suggested staying a little longer and exploring what is a fascinating country, I was in. Able to work from anywhere, subject to time zones and availability, makes so many things possible. Wi-fi and mobile data (which can be a financial minefield) make the possible, practical. 

Sounds like a great trip so far, but where is the disconnect you may be wondering? Well that’s got something to do with a trip to a place in Myingyan. You most likely have no idea where that is, and that’s ok, as neither did I. What I did know was that it was wonderful eco-lodge nestled in the heart of a village that offered a unique opportunity to immerse yourself in local life. What I didn’t know until we got there? There was no wi-fi.  I had just arrived for a 4 night stay in a picturesque, but remote village, without a way to get on-line except for a very inconvenient overseas mobile data plan. So what I did I do? I messaged everyone to share the contact phone number and let them know I would be out of touch for the next few days. And then I put my phone and my laptop away.

When I got back to Melbourne a few weeks later and was telling friends about my experience, responses ranged from humour, to dismay, to fascination; How did I survive? How did I spend the time? And unexpectedly from others Would I do it again? Here are the three things I shared with everyone that have stayed with me even now

1. Nothing beats personal connection

It seems simple enough and we all know it to be true, but the flipside of technology means that we often choose to digitally engage with someone instead of actually talking to them. Staying in this wonderful place, talking to the people who lived and worked there, and wandering through the local village created an interpersonal connection that would not have otherwise been possible.  There was laughter, compassion and empathy as well as intellectual challenge and thought. It took me back to being in Greece during the GFC and talking to people about the impact on them. Understanding that a country is its people, and not always its government is something we forget.

2. Your perspective drives your context

For those who know that I have been known to buy a pair, or five, of designer shoes in my time, the idea of me spending time in a remote village with no wif-fi, dirt roads and mosquitos seems unfathomable. The bet may have been that I would have been in desperate need to get back to the city and return to something a little more ‘normal’. What in fact happened, was the opposite. I was humbled by the simplicity of those I met, their stories, and their community and it serves as a wonderful reminder to me even today, that we all define the context we operate in, and what we choose to call a challenge or opportunity.

3. Make time to think, plan, act

Free from reaching for my phone, checking emails, the weather (yes, I did attempt a run on those very treacherous roads), I was able to be completely present every day through every interaction. And it was a valuable way to create space in my mind for things I had been putting off, challenges I needed to work through in my head, even ideas I wanted to explore more but did not have time to think about. Going old school with pen and paper (although I did take photos of my notes) inspired me to refresh and get clarity on what I needed to do when I got back home. All the work was done and well thought through without the distraction of the competing priorities we often have to manage.

It was not a complete surprise to reach the end of the stay and realise it wasn’t enough time so the four nights actually became five. Who would have thought that would be the case on day one. And finally getting to the next destination? I’m pleased to say that it took another day for the technology to really come on again.

The 4 Fundamental C’s of Success – Part 1: Clarity

How do you thrive in the new world where we need to be in control of our mind and embrace technology as it becomes more powerful. In a new article series we explore the four fundamental C’s of success.

By Sander van der Werf/ Shutterstock

How do you thrive in the new world where we need to be in control of our mind and embrace technology as it becomes more powerful. In a new article series we explore the four fundamental C’s of success. In this first article, Charlotte de Brabandt explores the importance of clarity.

To have clarity is to have the ability to be coherent and intelligible. It means to be able to have a clear mind, with thoughts focused on that which you intend them to be focused on. Gaining clarity comes when you think straight using intelligence and power , becoming aware of what is really important to you and to letting go of all other thoughts. Those without clarity never accomplish much of anything because their minds are full of unnecessary thoughts. As such, they can’t see clearly where they are going in life, making it difficult to make decisions and move forward. With clarity you can focus on the correct direction to lead you to the results you aim for. You are able to focus on your goals, and making decisions to attain those goals becomes simpler saving you time and energy and increasing your success. If you are unclear about what your goals are, then your results will be unclear too. Clarity is all about what you really want to achieve, so to start attaining clarity, ask yourself, “what do I want?”

This might be financial, physical, emotional or literally anything you desire. You absolutely must know what you truly want so you can work effectively to achieve it. From this point you will start to think straight without the endless confusion in your mind you perhaps once had. Once you know what your set of goals are, you can start making a clear plan of action in order to start attaining those goals. There will be many steps in your plan of action and at this stage you won’t know what they all are. If you do, then your aim is not set high enough! Write down the steps you know you will have to take to achieve your goal, but be aware of the unknown steps ahead and be flexible as you progress towards your goal. You may encounter different paths or opportunities on your journey towards your goal that will change your plan, be open to them. The important thing is to keep clear what the main objective is and stay focused along the way. As you progress along your journey towards your goal, every next step will be presented to you and your job is to take action on the presented step in order to move forward and receive the next.

As you continually visualise the attainment of your goal with focus and emotion, simpler ways to achieve your goal will be presented to you and you will continue to build your belief in the achievement of that goal, no matter how big it might have seemed at the beginning. Often making decisions is difficult. Even when you know your goals and aims, decision making is like a muscle, which has to be worked. In the beginning of your decision making process it will help to write down all of your options and eliminate them one by one, taking time to meditate on it until you can see with clarity the best decision for you to make . Lay your options out clearly and accurately so you are able to think with clarity about taking the correct next step. Then once that step is decided upon, do not look back, do not look to the side. Stay focused and bring your goal to your physical reality. As you continue to make decisions, meditating on what is best, your intuition will grow stronger and you will be able to make your decisions with more speed and accuracy. Remember making fast decisions is an important step and with clarity and a strong intuition, your ability to make fast, accurate decisions will become very simple.

“The clearer you are, the simpler things become”

Still Trying To Understand Blockchain? Here’s The One Thing You Really Need To Know

Blockchain is so much more then cryptocurrency, and despite the scepticism, it is here to stay.

By Dean Drobot/ Shutterstock

I’ve had a blog on blockchain on my mind for a while. As far as business buzzwords and hype, it has to be right up there with the best of them. Everyone is talking about it, or asking about it. Questions can be quite generic ranging from what exactly is it, what does it do and do I need to care about? And then then are the questions of scepticism and challenge including; is it even real, and does it even do anything? Amongst all of that, is the one we have all heard, or perhaps been the one we have actually asked; that’s got something to do with bitcoin, doesn’t it?

Ah, bitcoin.  We’ve all heard about it now and many who have followed the heady rise have had the dream of making millions from the cryptocurrency. Hitting dizzying heights of USD$19,000+ in 2017, we were all wondering why we had not invested in 2016 when it was hovering around the USD$600 mark. Thankfully, we were able to quickly congratulate ourselves for not being susceptible to the whims of the market when it fell to USD$3,000 earlier this year. And if you’ve been watching it over the last few months? Well it’s back at USD$10,000+, so you may be either celebrating or experiencing another round of FOMO.

So, what has all this got to do with blockchain? For many, the two are essentially the same, or the mention of one prompts an association with the other. If you only feel like you need to know one thing about blockchain, it should be that it is not bitcoin. Is it connected to bitcoin?  Yes, in so far that the technology that underpins bitcoin is what we call blockchain. But blockchain is so much more then cryptocurrency, and despite the scepticism, it is here to stay. Here are a few other considerations that may be helpful once you make the disassociation from bitcoin:

Understand the maturity level

The demand and potential for blockchain application saw Venture Capital firms invest more then $1 billion in blockchain start ups as early as 2017. McKinsey classifies blockchain as being in the Pioneering stage of technology development. While there are a plethora of use cases that have been identified by organisations and also by governments, many are at ideation stage. Others have progressed to proof of concept stage. As with anything that is new, there has not been enough time to implement at scale and observe the impact across a whole industry or organisation. That is a question of time and opportunity more than likelihood or value, and there is no doubt that as the technology matures and more experimentation takes place, the more we will learn. The prediction from many industry leaders is that it will become as ubiquitous as the internet. Until then, it is important to manage expectations around what it can and will do. 

Know what to use it for

As with many emerging technologies, the temptation to pioneer and innovate has led many organisations to force a solution of blockchain into a problem or opportunity that it may not be right for. We need blockchain or blockchain will solve this is a refrain that has been heard in many a meeting across industries and geographies. And it could be exactly right. But the important thing to remember is that the principle of value and outcome applies to all new technology, even one as cool as blockchain. Work out what problem you are trying to solve; if it involves many parties, transparency, and trust, it may be exactly what you need. The financial sector has been leading the way with blockchain in KYC (Know Your Customer) initiatives to improve detection of fraud and integrity of financial transactions. In addition to the commercial benefits of mitigating monetary losses, banks and other financial institutions are also expecting to realise efficiencies from process savings. With savings of between 20-30 per cent estimated, it is an experiment worth undertaking.

It will change industries and practices

Blockchain provides a level of transparency, validation and security that has been needed, but has not been able to be achieved previously. Why are these important?  Questions of origin and ownership have become increasingly important as we become more digital savvy. In some processes, it has always been a critical dependency with onerous and time consuming operational activity to execute it. Property is a great example of this. Do you have a right to sell this property, will I be the legal owner if I proceed with the transaction?  In other cases, it may be a factor in a decision making process. As a consumer, how do I really know where this food item has come from? Is it really organic, or is it simply a marketing strategy? Luxury brands like Louis Vuitton and Dior are leveraging blockchain as part of an offensive strategy to deal with counterfeit goods. Initially applying to new items, the eventual intent is to be able to authenticate the item through the resale process and therefore manage it throughout its lifetime.

So, is blockchain more then bitcoin? Absolutely. And while it is still in its very early stages, keep watching. As a technology, there is no doubt that it in its infancy but this should only temper expectations and not prevent experimentation.

But wait, the blockchain action doesn’t stop here! Join us on October 15 with blockchain experts Shari Diaz, Innovation Strategy and Operations Program Director, IBM Watson Supply Chain and Professor Olinga Ta’eed, Director of the Centre for Citizenship, Enterprise and Governance in this webinar brought to you by IBM and Procurious. Click here to register for Blockchain: Supply Chain’s 21st Century Truthsayer.

Transparency In Supply Chains And Blockchain: What Is The Most Common Trap?

Becoming aware of blockchain’s weak spots is an important first step towards taking full advantage of what the technology really has to offer.


By Billion Photos / Shutterstock

Is Blockchain coming of age in 2019?

Judging by the first half of 2019, it seems that the blockchain hype is finally deflating and there is an overall consensus that it will not save the world (at least not this year…). The growing trend towards pragmatism, which is now beginning to temper people’s expectations, is the best thing that could happen to blockchain. . .  A more down-to-earth approach is welcome because, like any technology, blockchain is not perfect, nor the solution to all problems. It is important to be realistic about its potential and limitations.

In particular, blockchain has limitations that threaten to jeopardise many recent high-profile initiatives to increase traceability and visibility in the supply chain. Despite seeming like the ideal technology to address growing concerns about these aspects, most (if not all) blockchain implementations have an Achilles’ heel: the initial digitisation of data to bridge between the physical and the digital world.

Becoming aware of these weak spots is an important first step towards taking full advantage of what blockchain really has to offer. Blockchain’s real value proposition

There are many potential and valuable use cases for blockchain, especially in Procurement and Supply Chain Mgmt.  

“If you talk to supply chain experts, their three primary areas of pain are visibility, process optimisation, and demand management. Blockchain provides a system of trusted records that addresses all three.” Brigid McDermott, vice president, Blockchain Business Development & Ecosystem, at IBM (source Blockchain and Supply Chain Finance: the missing link!, Finextra)

The most valuable characteristic of blockchain is that it serves as a backbone for “convergence”:

  • For better insights and actionable intelligence: Blockchain is the missing link in Big Data initiatives and the convergence of the Internet of Things (IoT), Artificial Intelligence (AI), and blockchain represents a breakthrough.
  • From an integration perspective: Blockchain-based supply chains allow three different supply chains (physical/informational/financial) to converge into a single digital one.

Blockchain has the potential to converge the two main ecosystems involved in trade finance — the financial ecosystem, which includes banks and suppliers, and the supply chain ecosystem. At the same time, the technology can provide a unified platform for multiple stakeholders, potentially avoiding difficulties that slow down operations” Béatrice Collot, Head of Global Trade and Receivable Finance at HSBC quoted in Blockchain’s Main Strengths Are Transparency and Instantaneity on Cointelegraph

While these features will certainly contribute to improved supply chain transparency, there is still a critical challenge that needs to be addressed: the digitisation of data at the beginning of the process. This crucial step constitutes a fundamental weakness of many current digital supply chains.

Blockchain’s Achilles’ Heel: Mind the Gap!

Traceability and transparency along the supply chain, from raw materials to final products, is a growing concern for organisations. New regulations from governments & institutions, customer expectations, and company’s self-interest in issues like sustainability, incident management, and efficiency, have created the need for an infrastructure to track, trace, and store data in the supply chain.

At first glance, blockchain may seems like the ideal solution. It creates a permanent record of all transactions at all levels of the supply chain, guaranteeing full traceability and establishing trust. So, many companies started to provide blockchain-based means of collecting information in their supply chain with the goal of making it accessible to customers as irrefutable proof about the origin of products and components.

A typical story goes like this: “Thanks to our application, you can take a picture of the QR-code on your product and view the entire supply chain of all components/elements that contributed to the final product you have in your hands.”  

This sounds great in theory, but there is an important caveat:

 “At the interface between the offline world and its digital representation, the usefulness of the technology still critically depends on trusted intermediaries to effectively bridge the “last mile” between a digital record and a physical individual, business, device, or event. […] And if humans […] manipulate the data when it is entered, in a system where records are believed ex-post as having integrity, this can have serious negative consequences.” What Blockchain Can’t Do, Harvard Business Review

The use of blockchain technology gives people a false sense of security because it relies on cryptography and various mechanisms to ensure that information stored on it can be trusted (identity, immutable record, etc.). But, as illustrated above, the digitization step when the information is recorded (a block added) is not protected by this same “guarantee.”. So, it is not because blockchain technology supports and enables a better transparency that it should be blindly trusted by customers or by procurement or supply chain pros.

The solution?

It is undeniable that blockchain is a form of digital trust. Much of the hype surrounding it has been driven by a broader trend in society: the erosion of trust in people and institutions. Blockchain is playing a major role in shifting that trust to technology and software. This explains, in part, why compliance and transparency are the use cases that are priorities for procurement and supply chain pros.

However, it is important to remember that blockchain’s reputation as “trustworthy” can be misleading, especially in the case of supply chain transparency. Manual operations are still part of the initial process of digitizing the data. Therefore, trusting data stored in the blockchain also means trusting that initial step that relies on human activities.

For this reason, building trust in business partners will continue to be a vital part of the procurement function’s role in the future. Introducing digital initiatives will not entirely remove the human element of the job, and Procurement practitioners will need to continue working on establishing trust and nurturing it with suppliers and stakeholders.

Also, from a technology perspective, there are already initiatives to close the gap between physical and digital as much as possible. Interestingly, they focus on physical objects (crypto-hardware) and not just on software. These objects are the child of RFID, connected devices, and blockchain, with the intent to create a convergence between the Internet of Things and the Internet of Value (blockchain) to create the Value Internet of Things (VIoT).

In addition to the human and technological answers that will both contribute to creating a truly integrated supply chain (physical + informational + financial), a third component will remain essential: critical thinking.

Trust and verify!

But wait, the blockchain action doesn’t stop here! Join us on October 15 with blockchain experts Shari Diaz, Innovation Strategy and Operations Program Director, IBM Watson Supply Chain and Professor Olinga Ta’eed, Director of the Centre for Citizenship, Enterprise and Governance in this webinar brought to you by IBM and Procurious. Click here to register for Blockchain: Supply Chain’s 21st Century Truthsayer.