Tag Archives: digital

5 Telltale Signs Your Tech Is Failing

In times like these, all systems need to be firing on all cylinders, so how can you tell if your system is beginning to show it’s in need of optimization or replacement?  There are 5 telltale signs that suggest your tech is failing. 


The digital age marches on and it’s rare to find an organization that has not automated some or all of their procurement operation.  The business case for going digital in S2P is compelling, so it is critical that it works. 

Yet many organizations have tech solutions in place that no longer fit their intended purposes. Worse still, many have just given up and are settling for an inferior system that is not meeting their needs.

The signs are there, but they are either going unnoticed or they are being ignored. Both situations are perilous and without swift action, the cost to an organization in time and resources – and the immediate need for a new solution or an optimization – can really mount up.

What are the key signs that your tech solution is failing?

And how do you recognize them before it’s too late?

Here are some of the most common.

1.     User adoption is on the decline

Your tech may have been heralded as the solution to all your organization’s ills. And for a while it was exactly that. But now even the staunchest champions of the solution are withdrawing their support and end-users are finding ways to avoid using the system altogether.

End users are reverting back to picking up the phone to place orders or finding other ways to go around the system.  This will result in more spend going through P-Cards without prior approval and/or more invoices showing up that are not tied to a PO. 

Decreasing adoption is one of the key signs that your tech is failing, and that action needs to be taken. Once users are working around the system, any efficiencies the solution offered are being lost. And it’s probably costing you more to keep things running.

Close communication with end-users is a good way to track ongoing performance and opportunities for optimization. 

2.     High end-user support rate

Your end-users will also be able to tell you when the solution is failing when it comes to usability. A clear sign will be when the rate of users seeking system support begins to increase and where tasks become increasingly difficult to perform.  Especially with your more infrequent users of the platform. 

When this happens support tickets will increase and if they are not resolved quickly, end users will lose confidence.  When that happens, tickets may decline, but not for reasons that are good.  as end users will typically turn to work arounds. 

The most common work around is sending requests via Free Form requests to the buyers to complete for them.  If your buyers are spending more than half of their day chasing down requisitions, you have a problem that needs to be corrected. 

The second most common work around is the use of a “Power User.”  This is when departments or locations turn to one person to complete all of their requests on their behalf.  This was common in the days of ERP requisitioning systems, but not today.  Especially when P2P systems of today have user interfaces that resemble what they have at home. 

If any of these work arounds are happening, your tech may have seen better days and has become dated and too cumbersome to work with.

Communication with end-users is key again here. You want to be able to have a continuous feedback cycle to raise issues before they start impacting operations. It will help to identify any bugs to be fixed and create a forum for new feature requests.  What you learn may surprise you. 

Which brings us to the next telltale sign.

3.     Lack of New Innovation

You’d expect your tech solution provider to be leading the pack in new features and improving your overall user experience to create even more value for your organization. 

If you’re not seeing these, it is time to start asking questions of both your system administrator and your software provider.

Being a system administrator can be hard work, especially when there are 3 new releases per year to keep up with.  If you are not seeing new features/functionality it may be that your system administrator is overwhelmed. Since new features come to you in the off position, you may have new features that have never been turned on. 

If that is not the case, and your solution is not keeping up with other S2P providers, then it’s a clear sign that your provider’s focus is elsewhere or they built their platform on a system architecture that is difficult to develop new functionality.

Both situations should be a red flag to your organization. You should set the wheels in motion to optimize what you have or determine if it is time to test the market for a new tech solution.

4.     ROI less than expected

Before you started out on this journey with your chosen provider, you created a detailed business case of what you expected in terms of outcomes from your new tech solution. You probably broke out the soft costs from the hard costs and knew what processes the tech would help to improve and how it would increase efficiencies in your organization.

These expected benefits – hard dollar savings, employee time, resources and removal of unnecessary or duplicated processes – could be quantified with a monetary value. This, in turn, allowed you to calculate your ROI. 

However, as time has gone on, it’s become clear that the level of expected benefits isn’t being delivered. The ROI for the solution isn’t being met and it’s time to understand why. There could be a number of factors (including the items on this list). But all of this is a further sign that your tech solution is no longer fit for purpose.

5.     Wandering solution roadmap

Even The Beatles had a ‘long and winding road’, but they at least knew the destination that awaited at the end.

Your technology journey may not have an end point by its very nature, but it should at least have clear direction. This would have been identified at the outset of your selection process, complete with clear goals and initiatives, helping to determine which technology solution would be selected.

Years later you may find that what was once their focus is no longer.  Maybe you selected your tech provider due to their commitment to your industry or their commitment to a certain product road map.  It is not uncommon for plans to change and for tech companies to change their focus for a variety of reasons.  Is this enough reason to leave and start looking elsewhere?  If it were up to me, that would depend on how many other items are on this list that are currently plaguing your operation as these issues may be related.  If they have changed direction and are focusing on industries and organizations that don’t resemble you, it may be time to start looking elsewhere before things start getting worse. 

Now you’ve seen the list, do you have any signs of your own to add? Anything in your organization that might now seem like a warning sign? These signs may not be immediately obvious which is why it is so important to know your KPI’s and be measuring what matters. If you don’t have anything in place, your solutions provider should be helping with this with a strong roadmap and support.

So keep these signs of a failing tech system in mind. You should then be able to avoid being encumbered with an ailing solution and instead remain as close to the cutting edge as you can.

Digital Transformation Skill Gap Shock

Only six per cent  of CPOs possess the strategic leadership trait of being able to lead digital and analytical transformation in their organisation. What’s going on with the skill gap?

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It seems that everyone’s talking about digital transformation. Every procurement team globally lies somewhere on the maturity curve that begins at one end with 1990s-style manual processes, to world-beating teams who are embracing tech enablers such as predictive analytics and cognitive technology. Procurement publications (including this one) are writing article after article about the wave of exciting new technology coming down the Industry 4.0 pipeline, while the profession’s biggest conferences always have digital transformation experts high on the agenda.

Key findings in Deloitte’s 2018 Global Chief Procurement Officer Survey, however, suggest that digital transformation isn’t as high as priority for CPOs as we might think. When just over 500 procurement leaders across 39 countries were asked to identify the most common leadership traits in procurement, they listed:

  • acting as a role model – 23 per cent
  • collaborating internally and externally to deliver value – 20 per cent
  • delivering results – 14 per cent

Yet, as the report points out, strategic leadership traits are not widely evident:

  • positive disruption – 5 per cent
  • leading digital and analytical transformation – 6 per cent
  • innovation – 8 per cent

Similarly, modern technology usage is low, with only one-third of those surveyed using technologies such as predictive analytics and collaboration networks. Only one-third of procurement leaders believe that their digital procurement strategy will enable them to deliver on their objectives and value, even though analytics was nominated as the single factor that will have the most impact on procurement in the next two years.

The authors call out these disappointing results twice in the report:

“Progress and adoption has been slow over the past year and the survey findings show that procurement leaders remain hesitant about investigating new digital tools and technologies such as artificial intelligence, robotics and blockchain.”

“Despite recognising digital technologies, their impact and imminent uses, few organisations appear to be progressing at the rate that their c-suite executives consider necessary for achieving overall goals. Indeed, in the majority of areas, the level of impact has declined and the forecast application of new technologies is low … The level and speed of digitalisation across procurement functions is lower than expected and needed.”

So, what’s going on? The answer might be found within the report itself, across the following three areas:

  1. CPOs don’t know where to begin

The main barriers to the effective application of digital technology identified in the report include a lack of data integration (46 per cent), quality of data (45 per cent) and a limited understand of data technology (27 per cent). This suggests that one of the reasons for the disappointing adoption of technology is that CPOs are still coming to terms with the overwhelming task of getting their house (their data) in order before they can effectively roll out a tech enabler such as cognitive procurement.

  1. CPOs are losing faith in their digital strategy

Deloitte found that only 4 per cent of procurement leaders believe that procurement has a big influence in delivering their organisation’s overall digital strategy. Only 6 per cent believe their digital strategy will help them to fully deliver on their objectives and improve enterprise value, while only 18 per cent have a digital procurement strategy supported by a complete business case. The trend in the report appears to be that procurement leaders are struggling to understand the impact of digital technology. One of the stand-out pieces of commentary in the report contains the following:

“Applying digital technologies to the procurement function will enable strategic sourcing to become more predictive, transactional procurement to become more automated, supplier management to become more proactive, and procurement operations to become more intelligent.”

 3. CPOs are not investing in digital capability

Remember last year’s report? The main callout in 2017 was that 60 per cent of CPOs didn’t believe their teams had sufficient capabilities to deliver on their procurement strategy. This figure has improved slightly and now sits at 51 per cent, yet digital skills still remain a red flag. The report found that nearly three-quarters of those surveyed said that their procurement teams possess little or no capability to maximise the use of current and future digital technologies, but only 16 per cent of procurement leaders are focusing on enhancing the digital skills of their teams. Overall, 72 per cent of CPOs are spending less than 2 per cent of their operating budgets on training and development programs for their teams.

Download the full report here: https://www2.deloitte.com/uk/en/pages/operations/articles/cpo-survey.html


In other news this week:

 

Procurious celebrates International Women’s Day – Get Involved!

  • Women account for just 20-35 per cent of procurement association memberships, represent just 30 per cent of procurement conference attendees and 20 per cent of speakers, and earn up to 31 per cent less than their male counterparts
  • To address this disparity, we founded Bravo, a Procurious group that celebrates and promotes the contributions of women in procurement last year
  • Ahead of International Women’s Day on 8th March 2018 Procurious are running a new campaign, “A Wise Woman Once Told Me…”.  We want procurement pros across the globe to take part and  finish that sentence.  Write the best advice you’ve been given by a woman, be it a colleague, mentor, friend or family member and share your advice on both Twitter (Tagging @Procurious_ and #Bravoprocurement) and in the Bravo group on Procurious 
  • We’ll be amplifying all of your great advice to the global procurement community and, to encourage more procurement pros to join Bravo Movement, we’ll donate £1 to Action Aid for every person that joins Bravo before 10th March 2018

Contact Laura Ross via [email protected] to request your  “A Wise Woman Once Told Me…” digital kit.

 

KFC Supply Chain Cock-Up Continues

  • KFC has yet to reopen all of its UK stores after nearly 700 of the the fast food chain’s 900 stores were shut down after the company ran out of chicken last week.
  • Speculation about what went wrong has focused on DHL, which had taken over the contract only one week previously. DHL has one centralised warehouse in contrast to the previous contractor, Bidvest, which operated from six.
  • The hashtag has been trending on Twitter, while KFC’s marketing team has been praised for its handling of the crisis.

Read more: http://www.wired.co.uk/article/kfc-chicken-crisis-shortage-supply-chain-logistics-experts

 

Trump announces steel and aluminium tariffs

  • President Trump has announced a 25 per cent tariff on imported steel and a 10 per cent tariff on imported aluminium.
  • The tariffs are designed to punish China for what the White House has described as unfair trade practices, while reducing blue-collar job losses and wage stagnation.
  • U.S. steel production has fallen from 100 million to 82 million metric tonnes over the past decade, with imports increasing in consequence.

Read more: Reuters