How Leading Companies are Enabling Open Innovation in Procurement
No procurement organisation can realistically “keep up” with today’s fast-paced change, as things are shifting too quickly. Given the number of emerging technologies, knowing what to respond to and what to prioritise is perhaps the major challenge of the times for CPOs. The need to make strategic decisions as soon as possible conflicts with the need to consider more possibilities than ever before. On top of that, the ability to make good choices is clouded by misinformation and hype.
Digital Procurement Success = Moderated Risk-taking + Optimisation + Iteration
It’s important to understand that digital procurement transformation is not a linear journey where you do a one time transformation to get from point A to point B. To succeed in digital, procurement organisations need to develop the DNA and the reflexes to continually reinvent different parts of the organisation through experimentation to keep it fresh and relevant to its customers over a period of time. It’s a mindset without an end.
At DPW, we believe that procurement organisations that want to keep up with change need to have a digital vision, and must opt for a “test and learn” approach and pilot low-risk projects that can provide insights and proof of concept for future growth at scale. If teams aren’t exposed to a little risk on an on-going basis, the stakes rise, and an innovation debt accumulates, which is the cost that companies incur when they don’t proactively drive changes by for example not embracing emerging technologies.
Failure is inevitable, but by embracing a more experimental approach, failure becomes something healthy and positive. Experimentation motivates people to pursue solutions rather than avoid risks. It allows for faster iterations and encourages buy-in from the rest of the business.
DPW’s ScoutLab is procurement’s best approach for working with emerging technologies, that can be adopted immediately into any organisation
In June this year, DPW teamed up with corporate and tech innovation experts nlmtd and TNW to launch ScoutLab, a new groundbreaking program that helps procurement organisations harness new technologies to improve business outcomes.
In this short 5-minute presentation, TNW Strategy Director and ScoutLab co-founder Pieter Paul van Oerle outlines why procurement organisations have made ScoutLab their partner for tech scouting and scaling and shares how in a very short time frame the program helped companies like Roche and AstraZeneca solve some of their highly individual challenges.
“We’re going digital. Finding the best and most innovative technologies that complement our multi-asset digital strategy is critical to succeed and enable full benefits realization. The ScoutLab team has become an effective partner for us to support the scouting process of new solutions which we wouldn’t be able to identify ourselves. This exciting new partnership will help us bring new innovation capabilities into Roche, increase our speed of innovation and drive new business value.” – Patrick Foelck, Head of Strategy & Transformation Procurement, Roche
In only 8 weeks, DPW in collaboration with Roche…
- Defined the problem and shaped the challenge
- Scouted solutions shaping the future of procurement
- Selected the top solutions together with Roche via virtual selection event
- Shaped the collaboration between Roche and the startup for success via a virtual collaboration shaping workshop
- Kick-started the agile 100-day innovation pilot to scale the solution across the business
Digital disruption will only intensify
The below super graphic featuring over 200 vendors across 15 categories has been developed by DPW to help procurement organisations discover relevant solutions and show trends and concentrations of this space. It also illustrates the booming procurement technology market, which is growing at an unprecedented pace.
Download DPW’s Procurement Technology Landscape here (logos are hyperlinked).
As a CPO, your challenge and opportunity is to find the right technology and scale it across the organisation in order to drive new business value. However, due to the high variety of available digitization technologies, finding the optimal solution for given challenges is a major issue. That’s why CPOs must develop a tech scouting strategy as a way to adapt and scale new digital tools and business models.
Are you in procurement and in the midst of a digital transformation?
Book a free consultation to learn how ScoutLab helps procurement find and scale the right technologies.
Do you have a solution and want to be considered for future ScoutLab challenges from our corporate customers?
Register your company here to get on the ScoutLab radar.