Beyond trends: The top 10 transformational realities redefining procurement

Beyond Trends: Transformational
realities redefining procurement
Welcome to Today’s Webinar,
presented by Zycus
Thank you for joining us, we
will begin momentarily.

Zycus has been Recognized as a LEADER in Gartner’s 2013, 2015, 2017 and 2018 Magic Quadrant for
Strategic Sourcing Application Suites
Zycus : The Consistent Leader

Forrester CLM Wave™ for S2C Suites: Zycus’ Leadership Continues
‘Zycus Cited as a Leader for a 2nd time in a
row in Contract Life-Cycle Management.’
Zycus “shows strengths in CLM and the rest of
its suite with AI leadership” according to The
Forrester Wave™: Contract Lifecycle
Management For Source-To-Contract Suites,
Q1 2019

BEYOND DIGITALISATION
The Dawn of Autonomous Procurement
 Learn from Industry Maestros and Analysts like Gartner,
Forrester, Spend Matters, The Hackett Group, etc.
 Network with 100+ procurement and finance practitioners
 Share business trends and exchange your experience with
industry peers
 Unwind at Budapest, a city known for its rich history and
heritage
Register at: www.horizon.zycus.com/europe. Use Coupon Code: WOMEN99 to register at only €99.

Check out this On-Demand Webinar at : https://zyc.us/2XWovBj

Today’s Expert Panel
David Loseby FAPM, FCMI, FCIPS Chartered, FRSA
CPO, Advisor, Author and Global Board of Trustees Member of CIPS
 With over 25 years’ experience at senior executive/director level driving
value and change through procurement, organisational transformation and
change management, my background spans a variety of roles with
significant global experience and responsibilities in both private and public
sectors (pharmaceuticals, banking, FMCG, manufacturing, consulting, retail,
venture capital, healthcare (NHS) & local Government. Formerly Group
Procurement Director for Inchcape Plc., I was the principal architect behind
one of the key strategic pillars for leveraging global scale across the group.
 Author: "soft Skills for Hard Business", published by Cambridge Academic:
ISBN: 978 1903 499 93

Phil Broughton, Head of Business Programs - The
Americas
The Chartered Institute of Procurement & Supply
 Phil is an internationally experienced
commercial and relationship management
professional focused on building successful
projects with companies and organisations
to help develop the capability of their
procurement and supply chain people and
drive improved performance through
procurement and supply excellence.

Chris Sawchuk, Principal and Global Procurement Advisory
Practice Leader at The Hackett Group
 The Hackett Group is an intellectual property-based strategic consultancy
and leading enterprise benchmarking and best practices digital
transformation firm to global companies, offering digital transformation
including robotic process automation and enterprise cloud application
implementation.
 The Hackett Group also provides dedicated expertise in business strategy,
operations, finance, human capital management, strategic sourcing,
procurement and information technology, including its award-winning Oracle
and SAP practices.
 The Hackett Group has completed more than 15,000 benchmarking studies
with major corporations and government agencies, including 97% of the
Dow Jones Industrials, 89% of the Fortune 100, 87% of the DAX 30 and
59% of the FTSE 100. These studies drive its Best Practice Intelligence
Center™ which includes the firm’s benchmarking metrics, best practices
repository and best practice configuration guides and process flows, which
enable The Hackett Group’s clients and partners to achieve world-class
performance.

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 on subjects as diverse as supply chain practice,
public sector policy, emerging business trends and social media.
 In addition to being a much sought after speaker and moderator
internationally, 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.
 A two-time Ottawa Finalist for the Ernst & Young Entrepreneur of
the Year Award, out of a group of 15,000, Blog Talk Radio named
Jon Hansen as one of their top 300 hosts.

After The Webinar TweetChat . . .
#Zycusproctrends

Today’s Agenda
 Area Of Greatest Impact
 The Top 10
 My Big 3

Perception
= Reality

Poll Number 1
In which area will your organization experience the greatest
change in 2019?
 Technology (the cloud and edge)
 Workforce (i.e. skill sets, generational)
 Process (Excel, relational)
 Other

We Have IMPACT
Technology Predictions
 In 2010, the IoT device ratio to person globally was 1.84. By 2020 it will be
up to 10 web-connected devices per every person.
 According to IDC’s Global IoT Decision-Maker Survey, 43% of IoT decision
makers want to build on edge computing.
 According to the recently released IDC FutureScape Report, “By 2022,
60%+ of global GDP will be digitized.”

We Have IMPACT
Technology Reality
 McKinsey survey of 1,600 incumbent global companies found that just 23%
have a digital strategy;
 Only 2% of those have a digital strategy involving their supply chain;
 The IDC report, Cloud and AI Adoption Survey, which was published in the
summer of 2018 found that 80 per cent of customers will be repatriating
workloads from public cloud environments to hosted private or on-
premises locations over the next two years.

We Have IMPACT
Workforce
 According to a recent report by DHL, the changing role of a procurement
professional requires them to have leadership qualities, strategic
thinking, operational expertise, creativity and analytical skills;
 The report also states that an estimated 25-33% of the current supply chain
workforce is at or beyond retirement age, leaving many procurement
teams with an aging, un-qualified workforce;
 Organizations need to place a focus on attracting new talent that fit the
new criteria, presenting a clear career path, with training and education for
existing procurement staff.
Source: The Impact of Digitalization And Status of The Supply Chain Profession Are Driving A Global Talent Shortage
Crisis – DHL, July 27th, 2017

We Have IMPACT
Process
 The eXcel Factor: “Spreadsheets provide some capability for users to be
creative and think through some ideas. For simple tasks, and for businesses
with small SKU counts and low complexity, they might work to a degree. But
they just don’t scale” (Chainlink Research);
 According to a Procurement Insights Survey asking if procurement pros will
ever stop using Excel: 56% said NO, 33% IS THERE AN ALTERNATIVE?,
11% said YES.
 According to a Deloitte report on the transformation of procurement, supply
assurance was one of the largest, growing year-on-year procurement risks.
The answer = Better Relationship Management.
Source: Charting the course: Why procurement must transform by 2020 – Deloitte

The Top 10

Poll Number 2
What Are Your Top 3 Trends?
 Pervasive Talent Shortage
 Blockchain
 Cybersecurity Concerns
 Big Data
 Social Purchasing
 Impact of Tariffs
 Risk Management
 Digital Transformation
 Relational Management
 Mergers & Acquisitions
(Vendors and And-Users)

Your Top #3 Choices

My Big 3

Poll Number 3
Out of these 3, which is the one that resonates with you?
 Digital Transformation
 Workforce Skill Sets
 Relational Procurement

My BIG 3 (Digital Transformation)
 CHALLENGE: Despite the tremendous opportunity and promise,
digital transformation and the realization of the full digital promise is
an elusive quest because there is uncertainty as to how to make it
happen.
 SOLUTION: In CIO article from January 18th, 2019 “Digital
workplace strategy: 10 steps to greater agility, productivity,” Senior
CIO writer Clint Boulton suggests that “your digital transformation is
doomed unless you empower employees to succeed in the digital
era,” and a big part of that empowerment according to Boulton is to
“craft a workplace that boosts engagement and agility.”

My BIG 3 (Workforce Skill Sets)
 CHALLENGE: While digital transformation conjures up images of
innovative technological breakthroughs, it is the paucity of required
talent that will continue to limit the digital promise. 2019 will see the
workforce from traditional IT capabilities to new levels of digital
proficiency.
 SOLUTION: According to Gartner your greatest source of
competitive advantage will be your “workforce’s ability to exploit
digital technologies creatively” through the “consumerization” of the
work environment including “computers, mobile devices and
productivity, and collaboration applications and, increasingly,
chatbots, virtual assistant technology, personal analytics, and
immersive workspaces.”

My BIG 3 (Relational Procurement)
 CHALLENGE: Short Term Win – Long Term Loss Mentality, i.e.,
“There is no doubt that aggressive procurement practices are getting
short term wins,” Hansen states. “The real question is, what are the
long term consequences?” – Forbes March 2015
 SOLUTION: Despite the prevalence of this conquer or be conquered
mindset, it appears that the up and coming generation of
procurement professionals are willing to forge a different path.
Rather than taking the easy route of learning hard negotiating
techniques, GenerationNext are more focused on building an
informed exchange with what they view as partners in the buying
process, as opposed to seeing suppliers as adversaries.

&

Speaker Contact Information
 Procurement Insights Blog: https://procureinsights.wordpress.com/
 Twitter: @piblogger1
 LinkedIn: https://ca.linkedin.com/in/jwhansen
 News Story Hotline: 819-230-2131

Frequently Asked Questions (FAQs)
 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.

Beyond trends: The top 10 transformational realities redefining procurement

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