‘ Mindset failure ’ biggest digital transformation problem
TECH & AI
The global procurement software market size was valued at
US $ 6.67bn in 2022
‘ Mindset failure ’ biggest digital transformation problem
Rose cites another example – that of a client in the oil and gas sector , whose procurement team KPMG helped deploy advanced AI-based decision-making tools .
“ The solution helped it prioritise procurement projects and allocate resources effectively ,” Rose says . “ It also helped it determine where existing supply solutions might exist , and to prioritise this in the work stack , thus delivering high singledigit improvements in efficiency .”
The good news , says Rose , is that technology has the capability to deliver a welter of such opportunities for procurement , “ be this driving more innovation from the supply base , orchestrating ESG in the supply chain or reducing risk back to source ”.
He adds : “ Whatever form that value takes , procurement will need to harness digitalisation and be a catalyst for change . It will also need to continuously learn , innovate and transform .”
THis , he says , has “ fundamental implications ” for the skills required in the future digital procurement workforce .
Most digital implementations have a success rate of about 30-40 %, points out noted procurement advisor David Loseby , who also has a doctorate in behavioural science . Loseby says the failure rate is so eyewateringly high because of a “ mindset failure ” on the part of organisations . He says : “ Digital transformations are not technology-change projects , but people-change projects . If you don ' t involve the people that are going to be impacted , and suddenly impose it upon them , guess what ? You get lots of rejection .” For Loseby , re-skilling employees and clearly demarcating their changing roles is an inviolable step in any technology change project . He warns : “ You ’ re pulling them into the fear of the unknown . You ’ ve got to balance the equation by making sure there ’ s something in the change process for them . Don ’ t leave me fearing I might be shunted somewhere else at the end of it all .”
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