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The cutting edge of technology as it impacts Procurement<br />Mark Scanlon BEng MBA<br />Operations Director, BigDogg<br /...
Agenda<br /><ul><li>Evolution of Technologies in Procurement
An analysis of a possible future
Opportunities for Procurement Professionals
Risks to Assess
The Evolution of BigDogg</li></li></ul><li>Evolution of Procurement Technologies<br />Socialization<br />Utilization<br />...
Follow the Money<br />Investment Focus<br />Source: b-Pack Data 2011<br /><ul><li>Procurement advancement to Strategic Role
External Business Focus</li></li></ul><li>Socialization Major Drivers<br />Technology Change but Business Drivers<br /><ul...
Reduced Risk
Implementation Speed
Flexible Contracts</li></li></ul><li>Opportunities in Socialization<br />Wider Participation in Procurement Processes<br /...
1. Wider Participation<br />Fast Growth<br />Corporate Adoption somewhat limited to Marketing<br />Most Employees already ...
What if…..<br /><ul><li>Change by “Buy In” not mandate
High User Adoption Rates
Procedure Compliance
Reduction in Maverick Spending
Supplier Participation in Events
Meaningful Data
Reduced Admin</li></li></ul><li>2. Efficient Communication<br />“Online interactions do not remove people from their offli...
3. Collaboration a) Spend Amalgamation<br /><ul><li>Many Buying Groups exist offline
Efficiency Gains
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The cutting edge of Technology in Procurement - Presentation to the IIPMM (Irish Institute of Purchasing & Materials Management)

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Presentation to a breakfast briefing of the IIPMM IIPMM (Irish Institute of Purchasing & Materials Management)

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The cutting edge of Technology in Procurement - Presentation to the IIPMM (Irish Institute of Purchasing & Materials Management)

  1. 1. The cutting edge of technology as it impacts Procurement<br />Mark Scanlon BEng MBA<br />Operations Director, BigDogg<br />IIPMM Networking 12th May 2011<br />
  2. 2. Agenda<br /><ul><li>Evolution of Technologies in Procurement
  3. 3. An analysis of a possible future
  4. 4. Opportunities for Procurement Professionals
  5. 5. Risks to Assess
  6. 6. The Evolution of BigDogg</li></li></ul><li>Evolution of Procurement Technologies<br />Socialization<br />Utilization<br />Inclusion<br />Interaction<br />Optimization<br />eProcurement<br />Invoicing<br />PO Matching<br />eSourcing<br />Hubs<br />Auctions<br />ERP<br />Analytics<br />Reporting<br />
  7. 7. Follow the Money<br />Investment Focus<br />Source: b-Pack Data 2011<br /><ul><li>Procurement advancement to Strategic Role
  8. 8. External Business Focus</li></li></ul><li>Socialization Major Drivers<br />Technology Change but Business Drivers<br /><ul><li>Cost Reduction
  9. 9. Reduced Risk
  10. 10. Implementation Speed
  11. 11. Flexible Contracts</li></li></ul><li>Opportunities in Socialization<br />Wider Participation in Procurement Processes<br />Efficient Communication<br />Effective Collaboration<br />a. Amalgamating Spend<br />b. Sharing Information<br />4. Richer Interactions with Suppliers<br />
  12. 12. 1. Wider Participation<br />Fast Growth<br />Corporate Adoption somewhat limited to Marketing<br />Most Employees already familiar with using Social Tools<br />
  13. 13. What if…..<br /><ul><li>Change by “Buy In” not mandate
  14. 14. High User Adoption Rates
  15. 15. Procedure Compliance
  16. 16. Reduction in Maverick Spending
  17. 17. Supplier Participation in Events
  18. 18. Meaningful Data
  19. 19. Reduced Admin</li></li></ul><li>2. Efficient Communication<br />“Online interactions do not remove people from their offline world but may indeed be used to support relationships”<br />Department of Information Studies and Media Michigan State University <br />“E-mail, once the most effective way to communicate with your tech-savvy associates, has become useless”<br />John C Dvorak PC Mag.com<br />The number of e-mails sent by adolescents between 12 and 17 years old dropped off 24 percent in 2010. <br />Source: comScore Data<br />
  20. 20. 3. Collaboration a) Spend Amalgamation<br /><ul><li>Many Buying Groups exist offline
  21. 21. Efficiency Gains
  22. 22. What is the next step?</li></ul>Multiple Parties<br />Dynamic Evolution<br />
  23. 23. How Would People Behave<br /><ul><li>3rd Collaborative System
  24. 24. People & Organisations adapt at different rates
  25. 25. Groups evolve over time & establish norms</li></li></ul><li>3. Collaboration b) Information Sharing<br /><ul><li>Sharing of Supplier Performance Data
  26. 26. Peer Rating Systems widely adopted
  27. 27. Organisation Benchmarking
  28. 28. Template Sharing
  29. 29. Would people Share?</li></li></ul><li> 4. Richer Interactions with Suppliers<br />Rational Holistic view of Relationships<br /><ul><li>Cost of Supplier Adoption
  30. 30. Ensuring consistent perception
  31. 31. Supplier Innovation Capture
  32. 32. Reduction in Admin & Data Integrity</li></li></ul><li> Challenges & Risks<br /><ul><li>Championing Adoption in the Organisation
  33. 33. Changing closed mind-sets
  34. 34. Managing non-technical change
  35. 35. IT Showdown
  36. 36. Data Security
  37. 37. Project Failures & Consequences
  38. 38. Legality & Compliance in a more open world</li></li></ul><li>About BigDogg<br /><ul><li>Founded in 2009 by John Quigley & Mark Scanlon
  39. 39. Invent DCU to Guinness Centre
  40. 40. Co-developed with Procurement Industry
  41. 41. Enterprise Ireland HPSU
  42. 42. Exports – Clients in 5 Countries
  43. 43. Jobs – Expand Team to 12
  44. 44. Appointment of Gary Shanley as Non Exec Director
  45. 45. Appointment of Teresa Yi Zhang as Senior Consultant</li></li></ul><li>Award winning Systems <br />
  46. 46. SourceDogg Benefits<br /><ul><li>65% Reduction in Administration Time
  47. 47. Unique collaborative buying tools
  48. 48. 24% Price Reduction (Proven Moritz)
  49. 49. Facilitate Better Communication
  50. 50. Full Audit Trail - Compliance
  51. 51. Reduced Risk - Peer Ratings
  52. 52. SME Access (Directive 10/10)</li></li></ul><li>As used by… <br />
  53. 53. Case Study: Buyer<br />Irish Producer of Food Products<br />Single Supplier of Tinplate Cans<br />Monopoly affecting Pricing<br />Continuity of Supply Risk <br /><ul><li>Widened Sourcing Reach Globally
  54. 54. Qualified Suppliers in Standard Format
  55. 55. Information on QA, Pricing, Capacity
  56. 56. 15% Saving to Bottom Line & Risk Reduction</li></li></ul><li>The Process<br />Create RFI<br />Involve Suppliers<br />Compare Responses<br />1<br />2<br />3<br />0 - 2 Weeks<br />45 Minutes<br />45 Minutes<br />
  57. 57. Thank you.<br />

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