This document discusses how digital technologies like mobile, social media, cloud computing and big data can reshape a procurement strategy. It suggests procurement objectives remain the same in reducing costs, improving delivery and quality, while innovation and risk mitigation become priorities. Embracing digital includes using social media constructively, reviewing eProcurement plans, capturing procurement data, and developing a digital strategy to shape the environment. The top three recommendations are to review social media policy and technology investment plans, understand needs for procurement intelligence from big data, and create a digital procurement strategy.

1. DIGITAL
Reshaping your procurement landscape?

2. What is digital?
Mobile Social
Cloud
Big
Data

3. IS DIGITAL PART OF
YOUR PROCUREMENT
STRATEGY?

4. WHAT WOULD A DIGITAL
PROCUREMENT
STRATEGY LOOK LIKE?

5. DOES DIGITAL REPRESENTA
THREAT OR OPPORTUNITY
TO PROCUREMENT?

6. Procurement objectives
Cost
reduction
Delivery
improvement
Innovation
Quality
improvement
Risk
mitigation
CSR

7. Digital procurement objectives
Cost
reduction
Delivery
improvement
Innovation
Quality
improvement
Risk
mitigation
CSR
Mobile Social
Cloud
Big
Data

8. Cloud technology
Reduces
investment
cost and risk
in technology
Accelerates
access to
eProcurement
solutions
Positively
changes the
eProcurement
business case
Facilitates
access to
procurement
intelligence
…

9. Mobile
Liberates from the desk top
Brings access to information ‘on the go’
Brings access to information to your device of
choice
Improves productivity

10. Cloud Mobile
Enable
Social

11. LET’S GET SOCIAL

12. THINK ‘SOCIAL’AS
CONVERSATIONS
Conversations with us
Conversations about us

13. WHICH CONVERSATIONS WOULD
PROCUREMENT WANT TO
FACILITATE FOR ADVANTAGE?

14. TO BE
Using the template identify your likely position
in 3 years

15. Constructive conversations
Internal consultation on specs
to clarify problem to be solved
Business case
dev & critique
Specification
co-production
Soft mkt
testing
Issue procurement
challenges
Consulting on
evaluation approach
Reverse
mkgt
Identifying opps for
piggy-back contracts
Risk identification,
assessment & mgt
Supplier references
& appraisals
Posting
RFPs
Contract Mgt &
user feedback
Whistle
blowing
Internal & external
Customer insights
Dynamic forward
Procurement plans
X-functional
Bid evaluations
Supplier feedback
On buyer performance
Ext consultation on
outcomes to be achieved
Widening scope of
potential options
Int collaboration
on cat mgt
Publishing award
criteria & weighting
Supply mkt
research
KPI consultation
& reporting
Expert Dephi
panels
‘Closed sites’
for suppliers
Forward
procurement plans
Cost reduction
suggestions
………………. ……………. ……………. ……………. …………….

16. AS IS
Using the template identify your current
position

17. Constructive conversations
Internal consultation on specs
to clarify problem to be solved
Business case
dev & critique
Specification
co-production
Soft mkt
testing
Issue procurement
challenges
Consulting on
evaluation approach
Reverse
mkgt
Identifying opps for
piggy-back contracts
Risk identification,
assessment & mgt
Supplier references
& appraisals
Posting
RFPs
Contract Mgt &
user feedback
Whistle
blowing
Internal & external
Customer insights
Dynamic forward
Procurement plans
X-functional
Bid evaluations
Supplier feedback
On buyer performance
Ext consultation on
outcomes to be achieved
Widening scope of
potential options
Int collaboration
on cat mgt
Publishing award
criteria & weighting
Supply mkt
research
KPI consultation
& reporting
Expert Dephi
panels
‘Closed sites’
for suppliers
Forward
procurement plans
Cost reduction
suggestions
………………. ……………. ……………. ……………. …………….

18. DIGITAL PROCUREMENT
STRATEGY
The bridge to achievement

19. WHICH CONVERSATIONS
COULD THREATEN
PROCUREMENT?

20. BIG DATA

22. DIGITAL PROCUREMENT
STRATEGY
Shaping the procurement environment NOT
Shaped by the procurement environment

23. MOVING BEYOND SPEND
ANALYSIS
Capture, mine and uncover patterns in
procurement data

24. HOW COULD
PROCUREMENT
HARNESS BIG DATA?

25. INFORMATION OVERLOAD
TO PROCUREMENT
INTELLIGENCE
BIG DATA

26. IF YOU COULD CAPTURE, MINE,
LINK & LOOK FOR PATTERNS IN
PROCUREMENT DATA …
What strategic information would you want?

27. Strategic procurement advantage
• Predict the demand/level of consumption of a good/service and help
profile demand;
• Predict the optimum supplier capability and capacity required to
deliver a required outcome in a given situation, and therefore reduce
paying for over-capacity;
• Identify the costs which could be removed to deliver a given solution;
• Predict supplier behaviour and their likely negotiating responses;
• Predict the optimum form of contract pricing, for example, fixed price,
rise and fall, index linked;
• Predict the optimum contract term;
• Predict the most advantageous time to 'go to market';
• Predict the optimum period required to solicit the best bid;
• Predict the optimum budget and whole life costs;
• Identify the key areas to focus on in contract management;
• Predict procurement risk profiles and optimum mitigation strategies;
• ...

28. DIGITAL PROCUREMENT
STRATEGY
Procurement intelligence for advantage

29. WHAT WOULD YOU RECOMMEND
TO A CPO AS THE 3 PRIORITIES IN
RESPECT OF DIGITALAND
PROCUREMENT?

30. Recommendations for embracing digital
procurement strategy
1. Ensure your social media policy reflects procurement needs;
2. Review you eProcurement investment plans and challenge the business case on the
availability of SaaS platforms;
3. Review your Applications Portfolio, ‘As is’ and ‘To be’ to make optimal use of integration
potential;
4. Review your Applications Portfolio for business needs – if a business need exists but a
solution is not presently available, issue a challenge to the market design an App;
5. Review your use of mobile technology to determine investment plans, establish
opportunities for cost reduction and have a clear policy on BOYD;
6. Review you approach to flexible working to gain maximum advantage of digital
technology;
7. Review the potential positive and negative impacts of social media on procurement,
develop a proactive plan to use conversations to achieve strategic objectives and
mitigate the risk of profile damage;
8. Understand what the business needs are for procurement intelligence and develop an
integrated approach to Big Data analytics;
9. Complete a training needs analysis and reflect in a learning and development plan;
10.Develop a Digital Procurement Strategy and performance manage.

31. DIGITAL PROCUREMENT
STRATEGY
Harnessing the procurement opportunity