Digitization of Procurement is a subject discussed by many, but not only recently
When I started in Procurement 20 years ago, there were already the first signs of digitization. At that time, Ariba was still a best-of-breed solution – you can tell how much has changed since then, as we’re talking early 2000s.
Albeit a vast array of technologies available to the Procurement community since then (the ProcureTech market has been exploding in recent years), only a few have been used at scale, meaning there’s significant room for improvement and development for many organizations.
Investment trends show considerable potential for improvement. 40% of companies are on track to underspend against their budgets for digitization, and an additional 𝟮𝟬% are unsure of their budget or don’t have one. On the other side, many companies are ready to invest significant amounts to help speed up digitization.
Some of the most significant barriers to innovation include the following:
- Resource and capability
- Limited scope and decision making
- Focus on operational, tactical tasks
- Budget constraints
Many organizations have the budgets available but still, need to advance on their digital journey.
Where are you on your digital journey, and what barriers do you need to overcome within your organizations?