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Procurement ai is artificial intelligence real in procurement

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Though the reality of AI in procurement is still debatable, one can’t deny the fact that human skills/human learning is a vital part of the AI puzzle. So what skills will one require to become a vital and relevant factor in AI-driven procurement practice?

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Procurement ai is artificial intelligence real in procurement

  1. 1. Procurement-AI: Is Artificial Intelligence in Procurement Real? Jon Hansen, Bill Michels and Joseph Yacura May 15, 2018
  2. 2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Tips for using WebEx  Audio is provided through your computer speakers only If you are unable to hear the audio through your computer speakers, simply click on the phone icon above the chat window to receive teleconference information.  The chat box (asking questions/tech issues)  In case of any other technical problems mail us at webcasts@zycus.com
  3. 3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Today’s Presenters Bill Michels Vice President of Operations Americas, CIPS Bill Michels is the Vice President of Operations, Americas for the Chartered Institute of Procurement & Supply (CIPS).. Until recently, Bill was the CEO and founder of Aripart Consulting after more than 23 years at ADR North America. Bill is a sought-after speaker and writer with many publications, including co-authorship of the book "Transform Your Supply Chain" and numerous published articles.
  4. 4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Today’s Presenters Joseph Yacura Member Board of Directors, LYNX Technology Partners Joseph has held senior positions with organizations such as Fannie Mae (VP – Chief Procurement Officer), and Bank Of America (Senior Vice-President, CPO). He is an experienced Board Of Directors Member with a demonstrated history of working in the information technology and services industry.
  5. 5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Today’s Presenters Jon Hansen Editor and Lead Writer, Procurement Insights As the Editor and lead writer for the Procurement Insights Blog, Jon Hansen has written nearly 3,000 articles and papers; as well as five books. Jon is also the host of the highly acclaimed PI Window on The World Show on Blog Talk Radio, which has aired more than 800 episodes. He is also a two-time Ottawa Finalist for the Ernst & Young Entrepreneur of the Year Award.
  6. 6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Check out our webinar at https://zyc.us/2M2VxNp
  7. 7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay ABOUT ZYCUS – COMPREHENSIVE SOURCE-TO-PAY SUITE Zycus is among the only 3 Leaders in the Gartner’s 2017 MQ for Strategic Sourcing Application Suites
  8. 8. REGISTER NOW Use the Promo Code WEBINAR100 to avail $100 off on the actual conference cost
  9. 9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay After the Webinar TweetChat #AIPro2018
  10. 10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Today’s Agenda • Understanding AI • Harnessing AI • Capitalizing on AI
  11. 11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Understand: What is Artificial Intelligence (AI)?
  12. 12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Poll Number 1 To what degree will Artificial Intelligence (AI) affect your job as a procurement professional?  Significantly  Moderately  Minimally  Not Sure
  13. 13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is AI? “AI is ubiquitous today, used to recommend what you should buy next online, to understand what you say to virtual assistants such as Amazon's Alexa and Apple's Siri, to recognise who and what is in a photo, to spot spam, or detect credit card fraud.” What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018)
  14. 14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is AI? “AI systems will typically demonstrate at least some of the following behaviors associated with human intelligence: planning, learning, reasoning, problem solving, knowledge representation, perception, motion, and manipulation and, to a lesser extent, social intelligence and creativity.” What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018)
  15. 15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Check out our webinar at https://zyc.us/2M2VxNp
  16. 16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is AI? “At a very high level artificial intelligence can be split into two broad types: narrow AI and general AI.” What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018)
  17. 17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is (Narrow) AI? “Narrow AI is what we see all around us in computers today: intelligent systems that have been taught or learned how to carry out specific tasks without being explicitly programmed how to do so.” What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018)
  18. 18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is (Narrow) AI? What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018) There are a vast number of emerging applications for narrow AI:  interpreting video feeds from drones carrying out visual inspections of infrastructure such as oil pipelines;  organizing personal and business calendars;  responding to simple customer-service queries;  co-ordinating with other intelligent systems to carry out tasks like booking a hotel at a suitable time and location;  helping radiologists to spot potential tumors in X-rays;  flagging inappropriate content online;  detecting wear and tear in elevators from data gathered by IoT devices.
  19. 19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is (General) AI? “Artificial general intelligence is very different, and is the type of adaptable intellect found in humans, a flexible form of intelligence capable of learning how to carry out vastly different tasks . . .” What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018)
  20. 20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What is (General) AI? General AI tasks include:  Haircutting  building spreadsheets  reason about a wide variety of topics based on its accumulated experience This is the sort of AI more commonly seen in movies, the likes of HAL in 2001 or Skynet in The Terminator, but which doesn't exist today and AI experts are fiercely divided over how soon it will become a reality. What is AI? Everything you need to know about Artificial Intelligence – ZDNet (February 12th, 2018)
  21. 21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay HARNESS: The Procurement World
  22. 22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Poll Number 2 In which area of procurement will Artificial Intelligence (AI) have the greatest impact?  Spend Analytics  Strategic Sourcing  Risk Management  Workforce Size  Other
  23. 23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What the Industry is Saying… “Basic machine learning technology is already used by some procurement applications in areas such as spend analytics and contract analytics. This is mostly limited to automating the processes of collecting, cleaning, classifying and analyzing expenditure data in an organization — to identify savings or paths to greater efficiency.” Prepare for the Impact of AI on Procurement – Gartner (May 26, 2017)
  24. 24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What the Industry is Saying… Edmund Zagorin proposed the following ways that AI could rapidly transform enterprise Procurement organizations over the next five years:  Cognitive systems replacing supply chain assistants;  Cognitive systems replacing purchase order systems;  Cognitive systems replacing supplier on-boarding workflows;  Cognitive systems forecasting prices, generating contract templates, and evaluating suppliers before a human does. Artificial Intelligence in Procurement: How will it affect you? – My Purchasing Center (February 2nd, 2018)
  25. 25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What the Industry is Saying… “The more intelligent route is to expand the role of spend analysis in strategic sourcing. Using a robust data acquisition, cleansing and classification process enabled by the latest machine learning methods, procurement can run spend analysis reports before, during and after a sourcing event — a far more complete picture than an out- of-date snapshot.” How AI Will Help Procurement Advance Analytics Beyond Basic Spend Analysis – Spend Matters (September 18th, 2017)
  26. 26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay What The Industry Is Saying, But . . . “From identifying new markets and tracking exchange rate volatility to managing risks and identifying the best suppliers, procurement leaders are looking into solutions that utilize AI to leverage big data to streamline processes and improve decision-making.” How AI Can Help Solve Some of the Biggest Challenges in Procurement – ProcureCon (2017)
  27. 27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay There is More… “Today, procurement technology vendors are developing solutions that bring AI into the realms of advanced strategic reasoning and strategic sourcing. Namely, these are manifested as cognitive procurement advisors (CPAs) and virtual personal assistants (VPAs) that use natural- language processing (NLP) and natural-language generation as a means to further increase automation and efficiency in procurement.” How AI Can Help Solve Some of the Biggest Challenges in Procurement – ProcureCon (2017)
  28. 28. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Check out our webinar at https://zyc.us/2M2VxNp
  29. 29. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CAPITALIZE: The Next Move
  30. 30. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Poll Number 3 There are specific things that procurement professionals can do to prepare for AI.  True  False  Uncertain
  31. 31. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Chance Favors The Prepared Mind Below the following are the important ways in which organizations need to prepare procurement for Artificial Intelligence:  Executive commitment  Expectations management  Choosing the right partner The Future of Procurement with Artificial Intelligence – Singapore Institute of Purchasing and Materials Management (February 8th, 2018)
  32. 32. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Executive Commitment “Introducing automation, AI, chat bots, etc. can cause fundamental changes in the experience for both the end-users and the procurement function, along with a large amount of change for the supplier community. Success here requires sustained effort, perseverance, good execution and governance. Executive commitment right from the very top is one of the most important aspects for all of these to come together and see the initiatives through.” The Future of Procurement with Artificial Intelligence – Singapore Institute of Purchasing and Materials Management (February 8th, 2018)
  33. 33. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Expectations Management “Another critical aspect is the management of expectations from the program at all levels. Organizations need to do a good amount of homework to identify the right areas and processes for automation/AI and organizations should not rush into it. Similarly, there are bound to be process changes and changes to the way of working and that need to be communicated well so that the expectations of employees and suppliers are set accordingly. All along the way, during the program, there needs to be continuous reset of expectations in line with the learnings from the program.” The Future of Procurement with Artificial Intelligence – Singapore Institute of Purchasing and Materials Management (February 8th, 2018)
  34. 34. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Choosing The Right Partner “A program of this nature has to necessarily involve a mix of technology and outsourcing services. Depending on the implementation path chosen, there could be interim stages where outsourced services take up some amount of manual work which then gets automated. Similarly, there could be areas that need a combination of outsourced services and technology to achieve the goal.” The Future of Procurement with Artificial Intelligence – Singapore Institute of Purchasing and Materials Management (February 8th, 2018)
  35. 35. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Choosing The Right Partner “However, given the very nature of AI most of the areas will focus on technology. In our experience, we have seen several cases where large transformation programs fail because there are too many different organisations involved – too many service providers. To avoid these issues and ensure success of the program, organisations should choose a trusted partner that understands the business and the domain, and that has proven capabilities across technology and services to be able to help manage the entire process end to end.” The Future of Procurement with Artificial Intelligence – Singapore Institute of Purchasing and Materials Management (February 8th, 2018)
  36. 36. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Conclusion “However, in order to unlock the greatest savings from AI, enterprise procurement must first tackle the problem of data silos and legacy IT infrastructure.” The Future of Procurement with Artificial Intelligence – Singapore Institute of Purchasing and Materials Management (February 8th, 2018)
  37. 37. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay The AI Future is Here
  38. 38. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Questions? &
  39. 39. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay After the Webinar TweetChat #AIPro2018
  40. 40. REGISTER NOW Use the Promo Code WEBINAR100 to avail $100 off on the actual conference cost
  41. 41. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Speaker Contact Information Jon Hansen Procurement Insights Blog: https://procureinsights.wordpress.com/ Twitter: @piblogger1 LinkedIn: https://ca.linkedin.com/in/jwhansen News Story Hotline: 819-230-2131
  42. 42. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Frequently Asked Questions Attendees of today’s event will receive an email thanking you for attending. In this email is the link to your CEH certificate and the archive of today’s presentation. Continuing Education Hour certificate. CEHs are awarded to attendees who participated for at least 50 minutes of the seminar. You will receive an email within the next 24 hours containing your CEH Certificate.
  43. 43. +1 866 563 9219 info@zycus.com www.zycus.com Thank You

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