http://www.ibm.com/connect/ibm/zz/en/resources/hans_monfils/

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The New CPO:
In the largest known and most comprehensive
procurement-focused research ever conducted, IBM's Institute
for Business Value (IBV) found that the highest performing
procurement executives are creating real business value that's well
beyond just controlling costs. As a result, these top ranked CPOs
are directly influencing bottom line results of their companies and
rapidly gaining influence in the c-suite:
Influential performers seize influence over strategic
business imperatives.
Adapt to Changing Market Conditions
Push for innovative solutions
89percent of top performing companies are
highly effective in their use of procurement
technologies, compared to 56 percent of all surveyed
companies are average or below average in their
technology effectiveness.
For more information on the study, visit
www.ibm.com/business/value/chief-procurement-officer
Bottom Line
The New CPO:
Guardians
of the
But how do we transform into these uber CPOs? The
study revealed five key commonalities that these
overachievers bring to the executive table for others
to model themselves against:
Top-performing procurement organizations
reported average enterprise profit margins of 7.12
percent compared to just 5.83 percent for
emerging-performing organizations.
The bottom line
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Gain Insight Through Big Data Analytics
83%
of top
performers 63%
of emerging
performers
By using analytics to tackle Big Data
challenges, CPOs can gain new insights into
internal business operations and their
supplier networks to identify vulnerabilities.
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Collaborate Well Within and Beyond the Enterprise
Top performers direct 38 percent
more of their annual spend through
strategic alliances than emerging-
performing organizations.
88%
of top
performers 44%
of emerging
performers
By using big data insights and collaboration,
high performing CPOs are in a better
position to quickly respond to changing
internal and external conditions, from
demand changes to supply disruptions to
product redesigns.
73%
of top
performers 16%
of emerging
performers
Driving efficiency and performance
Helping introduce innovative products
Delivering a best in class supplier network
0 20 40 60 80 100
0 20 40 60 80 100
0 20 40 60 80 100
96% vs.
59%
96% vs.
58%
95% vs.
61%
Technology is a crucial component of
innovation for procurement. Innovators look
for innovation across a wide range of sources.
Only 27% of companies
surveyed exhibited innovative characteristics,
such as:
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Crowd Sourcing
Customer Interactions
Internal Collaboration
Collaborative Product
Development
Emerging Top
Influential
performers
Emerging
performers