While there’s plenty of new technology available to CPOs for digital transformation, the transformation process itself is getting disrupted. Is an overhaul needed for the digital transformation process itself?
Although “digital transformation” has become familiar to many procurement executives, and various new digital capabilities have emerged (e.g., AI, RPA, etc.), the transformation process itself has remained remarkably business as usual:
Poor operating performance and old technology leads management to hire management consultants who drive up the school bus with young consultants to document as-is processes and interview stakeholders
Consultants apply their traditional maturity assessments and best practices checklists – and then recommend tactical improvements that can be implemented with their favorite procurement solution suite partners and perhaps a smattering of some technology pilots using data science, blockchain, RPA, and so on.
Implement solutions in a target process area (e.g. “upstream” sourcing or “downstream” P2P) and geographic region - and don’t get bogged down with trying to fix thorny issues like masterdata quality
Repeat the process and hopefully some real results will be delivered - even though underlying organizational/talent, performance, and data issues remain poorly addressed
The problem here isn’t a technology issue, but a transformation issue. As such, perhaps the transformation process itself needs to be overhauled.
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