CPOs and VPs of Purchasing welcome innovative cloud based SaaS tools into the Majority to enable sustainable improvement. Early Majority results will set benchmarks that even the “establishment consultant and legacy ERP players" will not be able to contain. Given the relatively quick implementation of these innovative tools CPOs that are starting to develop 2015 goals now will be counting on the new tools to drive performance.

1. Purchasing Tools Must Cross Chasm To Enable Better Performance
Innovative Cloud
Based B2B
Purchasing Tools
to Optimize
Purchasing and
Supply Chain
Enterprise ERP
Based Purchasing
and SCM Tools
that Are Good
Enough for Status
Quo
New tools needed for better results.
Purchasing Organizations encountering
friction with current tools and are
relying on a finite # of purchasing pros to
meet goals- which is not scalable.

2. Innovative Purchasing Technology
Tools Start to Cross the Chasm
CPOs and VPs of Purchasing welcome
innovative cloud based SaaS tools into the
Majority to enable sustainable
improvement
Bill Kohnen Discussion Note Aug
2014

3. Purchasing Tools Must Cross Chasm To Enable Better Performance
Innovative Cloud
Based B2B
Purchasing Tools
to Optimize
Purchasing and
Supply Chain
Enterprise ERP
Based Purchasing
and SCM Tools
that Are Good
Enough for Status
Quo
New tools needed for better results.
Purchasing Organizations encountering
friction with current tools and are
relying on a finite # of purchasing pros to
meet goals- which is not scalable.

4. Chief Procurement Officer Challenges
• Procurement initiatives of the 90s and early 2000s did not deliver the level
of cost competitiveness promised
• Companies switched to outsourcing to deliver on those promises
• Focus back on Internal Purchasing Operations to Deliver Savings
• CPOs report Attempts to Reduce Cost Further Challenged by:
– New technology adoptions,
– Cycles of centralization and decentralization,
– Employee empowerment,
– A plethora of self serving strategies and analyses offered by consultants
– Limited pool of Purchasing Professionals that can always deliver results
regardless of limitations
Technology Adoption for Purchasing stands out across industries as a requirement to
meet and sustain performance expectations
Bill Kohnen Discussion Note Aug 2014

5. Innovative Purchasing Tools
Into the Majority in 2015 –Why?
• CPOs need tools
• Innovators tools more stable and generally more acceptance
of Software as a Service Cloud Solutions
• Ironically introduction of legacy ERP Vendors cloud products
provides credibility even if their products remain expensive
and not fully integrated and optimized. Some CPOs will have
to “settle” for these tools.
• Early Majority results will set benchmarks that even the
“establishment consultant and legacy ERP players “will not be
able to contain
• Purchasing Teams and organizations using the innovative tools
will like them and not accept legacy systems or approach's.
Bill Kohnen Discussion Note Aug
2014