I.T Procurement Transformation and Innovation

Agile sourcing methods need to be developed and deployed such as automated procure to pay, real-time sourcing platform with transparency and predictive demand management, which will allow repetitive transactions to become automated without human intervention via the use of robotic process automation. This will enable payments in real time by utilising real time delivery updates, increase transparency via blockchain. Global sourcing platforms will allow for better supplier management and predictive cost management.

This will lead IT procurement to become more proactive to better manage supplier performance by utilising advanced analytics, decision making will improve based on data and hard facts with minimising risk allowing procurement team to focus on innovation, improvements and less time ‘fire-fighting”. Of course, to evolve and transform from a traditional procurement organization to an agile IT procurement organisation is not an easy task and will certainly bring challenges which can impede progress, some of these challenges are:

• Lack of IT product, services knowledge, and skills

• Lack of vision and mandate for transformation

• Investments in technology

• Lack of alignment within the organisation

• Too many contracts and suppliers

• Maverick spending

These challenges can be overcome with a clear vision and directive by the board, involving people who understand technology from the beginning. By selection of the right sourcing platform, clear policy guidelines and most importantly the involvement of CEO and CIO as key stakeholders of the transformation process.

True transformation involves a complete restructuring of the operating model and technology systems, requiring the buy-in from the entire business.

In conclusion, the way of traditional procurement function is over and it’s being turned on its head by rapid technology advancements which require a rethinking of how a procurement function operates within the organisation. It’s increasingly evident that an IT procurement function needs to be strategically embedded within the CIO function to deliver on the organisations strategic vision.