How Close Are Global Procurement Organizations to Digital Transformation?
The digital transformation of business is already underway. Digitalization is no longer viewed as the aspiration of a select few, but as an inevitability for businesses in nearly every sector. Over the past several years, the hype surrounding digitalization has also extended to procurement. These days, digital transformation is a top priority for most CPOs, and it has become nearly impossible for procurement professionals to escape buzzwords such as AI, blockchain, cognitive procurement, RPA. Given this pressure to “become digital” it can be difficult to sift through the hype to extract genuinely useful insights and benchmarks to help procurement professionals inform their digitalization strategy going forward.
JAGGAER’s 2017 benchmarking study, Digital Procurement 2017: Just Hype or the New Standard? cut through the hype to gather data on the state of digitalization in procurement organizations around the world. The key findings from the study revealed that 83% of companies were not taking full advantage of the opportunities and benefits that digital procurement had to offer. A 2018 Hackett Group report revealed that while 95% of respondents indicated that digital transformation would fundamentally change the way services were delivered over the next three to five years, only 46% of companies indicated that they already had the resources in place to facilitate this transformation. Where does procurement stand in 2019 and where is the journey headed?
Preparing for a Digital Future
The rapid pace at which technology is evolving introduces a wide range of opportunities and challenges. To stay ahead, it is important for procurement organizations to prepare themselves for “digital culture shock.” To effectively prepare for the future, they need to assess:
- where they currently find themselves on their digitalization journey
- what value new technology could add to their organization, and where it makes the most sense to invest resources
To help procurement and industry professionals stay informed and up-to-date, we are running a worldwide survey, “Digital Transformation in Procurement: How Close Are We?” to contribute research, benchmarking data, and insights on the latest digitalization developments in procurement. The study will seek to answer the following questions:
- How far have the majority of businesses come in the last 2 years, and how far do they still have to go before they achieve successful digital transformation in procurement?
- Are companies now making a concerted effort to invest in emerging technologies?
- How much do these technologies really have to offer?
- What digital procurement trends can we expect to see in the future?
The survey will run through March 2019 and will cover topics encompassing current business digitalization efforts, readiness levels in terms of planning and budgeting for new digital procurement technologies, perceived advantages and disadvantages of emerging technologies, and more. The results of the study will be published in a benchmark report May 2019 and will provide both procurement professionals and service providers with insights into current trends in digital procurement.