Procurement organizations are making significant strides and they have done this as a part of their digital transformation initiatives. A Hackett Group research suggests that leaders from procurement firms are increasingly relying on digital transformation to achieve business objectives such as improving agility, cost-cutting, and enhancing their ability to serve as a trusted advisor to the enterprise.
It is expected that procurement organizations will increase the use of robotic process automation and AI related technologies (machine learning, virtual assistance, cognitive) over a couple of years. The research also states that organizations would even start to expand their use of more mainstream technologies such as advanced analytics, cloud-based applications, mobile computing and data visualisation. As per the research, procurement budgets are expected to stay virtually flat, requiring organizations to execute digital projects by realigning resources and reassessing competencies
The study also identified some key areas of capabilities that reflect the need to constantly expand collaboration by investing in technologies and resources that help in promoting actionable intelligence and can enhance supplier collaboration along with user experience.
Though firms often considered digital transformation as a priority, many times they lacked the strategy and resources to move forward. But fortunately, the gaps are likely to narrow this year. An increasing number of organizations are going through digital transformation, and the numbers are on the rise.