Observations on the progress of digital transformation

Do you drive digital transformation or do you buy tools? “84% of digital transformations fail,” said Dr. Elouise Epstein. This message set the scene for a discussion among leading tech solution providers on the current state of digital transformation at the Cirtuo Procurement Forum 2024.

The current state of digital transformation in Procurement is underwhelming

The panel discussion ‘Observations on the progress of digital transformation: tips for Procurement to achieve tangible business impact faster’ brought together Sammeli Sammalkorpi, CEO of Sievo, Vel Dhinagaravel, CEO of Beroe, Frank Thewhisen, COO of Cirtuo, and Lukas Wawrla, Co-Founder of Archlet, to provide Procurement with unvarnished feedback on the current state of digitalization in Procurement. 

While progress has been made,  there is still a long way to go for Procurement. Overall, the panelists concluded, Procurement has not lived up to the challenge despite 'Digital transformation' being a hot topic for over a decade. The digital maturity and willingness to drive change have plenty of room for improvement.

Tips for accelerating the digital transformation in Procurement

Driving the digital transformation requires more than buying technology solutions. Procurement leaders need to have a clear understanding on the challenges they want to overcome, how different solutions need to interact with each other, and how the Procurement Operating Model needs to be adapted to align people, processes, and technology with the overarching strategy.

Here are some key tips and takeaways:

✅ Digital transformation requires strong leadership: transforming Procurement requires a strong focus on execution and change management, buying a tool is only part of the solution. Leaders need to provide a clear vision and actions to enable their organization.

✅ Users need a clear value proposition: intuitive interfaces are great, but digitalization must be a means to an end, not an end itself. Make sure users clearly see how the solution impacts and improves their work.

✅ Ecosystems beat monolithic suites: we move faster when we create a powerful, connected ecosystem, increase our risk appetite, and leave the path most traveled (think suites, ERP first).

The panel discussion provided an outside-in perspective on how to drive digital transformation beyond buying tools. Watch the full session if you are willing to accept your mission. 

‍

‍

‍