Pitfalls to watch out for on your journey towards digital procurement (Part 2)

Lack of internal IT support or lack of budget

When people cite a lack of IT resources or funding, it signals a lack of organisational commitment to an initiative (Note: we are not discussing scenarios where businesses are struggling financially or are busy firefighting in an unprecedented crisis).

  • Organisational inertia/resistance: “Why change?”
  • Organisational misalignment: “Why this initiative?”

An issue of inertia

People resist organisational change because they think change is hard and often leads to failure. While there is some truth in such a belief, we are also wired to perceive failures more negatively than they really are.

An issue of misalignment

If you are not competing with status quo, you could be competing with another initiative. Organisations often have various priorities so to ensure procurement technology is bumped up in the list, it’s best to adopt a two-pronged approach:

  • Clearly communicate the compelling reasons for procurement technology adoption: investing in building a business case (See above), showing ROI potential and animplementation plan (often software vendors can help you with this)
  • Reduce the IT resources needed by tying your digital procurement strategy with the overall organisation’s digital roadmap
Source: Kearney

Change management issues

As obvious as it sounds, there will be a need for change management if the change is drastic (e.g. switching from pure paper-based to digital processes).

Process redesign perspective

Taking a step back, there are things you can do to minimise the need for change management prior to implementing any procurement software.

  • The procurement department
  • End-users (any team with a need to procure goods/services)
  • Related or invested stakeholders such as compliance/governance

User experience perspective

As we’ve written previously, users of business software are expecting consumer-grade user experience. With COVID-19 and prolonged periods of remote work, boundaries between worklife and normal life might blur even more.

Wrapping it up

We hope that after this 2-part series, you have learned some key pointers that can help set your organisation’s procurement technology project up for success (if you’re in a pre-purchase stage) — or boost software uptake to achieve greater efficiency.

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Felix

Felix

Enterprise marketplace platform that connects orgs & their supply chains. www.felix.net