{"id":5677,"date":"2023-09-18T11:19:00","date_gmt":"2023-09-18T11:19:00","guid":{"rendered":"https:\/\/itelgroup.co.uk\/development\/?p=5677"},"modified":"2024-04-02T12:19:57","modified_gmt":"2024-04-02T12:19:57","slug":"the-why-and-how-of-digital-transformation","status":"publish","type":"post","link":"https:\/\/itelgroup.co.uk\/development\/news-updates\/the-why-and-how-of-digital-transformation\/","title":{"rendered":"The Why and How of Digital Transformation"},"content":{"rendered":"\n

According to procurement consultant David Holmes, there\u2019s one thing driving digitisation: information. In a world where data is the new oil and cash remains king, the rapid exchange of information is high currency. And for any organisation without a clear plan in place to capitalise on their data, time is running out to act.<\/p>\n\n\n\n

\u201cFaster information means for a faster service,\u201d says Holmes. \u201cSo for procurement, that means keeping up with your vendors, keeping up with your clients and keeping up with the supply chain as a whole.<\/p>\n\n\n\n

\u201cWhen you are digitised, your communication is that much quicker and more or less every company is going down that route \u2013 so there\u2019s a risk of being left behind. As such I don\u2019t there\u2019s an argument against it. I do however think the approach you take to digitisation and the reasons for it need to be crystal clear.\u201d<\/p>\n\n\n\n

As a case in point, he argues that procurement should be looking to save money first and foremost. But does that come from the payment system, the procurement system or the supply chain? Or does it need to be a mix?<\/p>\n\n\n\n

“All those elements have masses of data attached to them. That data is the key to unlocking a lot of potential for procurement. But before you go ahead and digitise the lot, you need to think about what you really want to do, what you\u2019re really hoping to achieve, and are you ready for digital transformation.<\/p>\n\n\n\n

\u201cWhat’s your business case? What’s your return on investment for doing that? It could cost a lot of money. And you are to a certain extent, doing parallel running with your current manual systems. So you’ve got those costs as well, because while you’re doing one, you’re doing the other until such point you cut over.\u201d<\/p>\n\n\n\n

\"Screenshot<\/figure>\n\n\n\n

Where to Start with Digital Transformation<\/strong><\/h2>\n\n\n\n

If you\u2019re going to digitise your procurement department, it pays to hire expertise. Having strategist or consultants on board who will map the digital transformation process, align it to your business and build a case for ROI, will save you money in the long-term. Moreover, it makes the transition smoother and far more likely to succeed.<\/p>\n\n\n\n

\u201cYou need to understand the tools that are best suited for your business and that are going to get the most from your data,\u201d Holmes says. \u201cNot all services, suites or products will do what you want them to. \u201cNot all will suit your needs. And if you don\u2019t know what you\u2019re doing, your total cost of ownership will go through the roof and your overall service will suffer.\u201d<\/p>\n\n\n\n

Holmes adds that an overlooked aspect of the equation is knowing where to look in the first place. For that he recommends tendering as you would with any other service or major investment, which clear and obvious objectives.<\/p>\n\n\n\n

\u201cYour business transformation program needs to match the strategy. And then your strategy will drive how you want to tender and how you want to move forward. And therefore you need to have a plan.<\/p>\n\n\n\n

\u201cTendering is fine, but once you’ve gone out to supply, what are you going to do with it? It could be a two or three-year plan, but you need to go back to basics. And that’s where a lot of companies fail because they rush into it and they haven’t really thought of the plan.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

Leveraging Data<\/strong><\/h2>\n\n\n\n

The case for data has been cut and dried for several years. Frankly, if you\u2019re not using it you ought to be; history shows us that yesterday\u2019s innovative is today\u2019s standard \u2013 and if you\u2019re not up to standard then it\u2019s very easy to fall behind and into obscurity. Evolution is very much the name of the game.<\/p>\n\n\n\n

Not all data was created equal of course. And as far as procurement is concerned, less is more \u2013 to an extent anyway. Carefully selected and intelligible data is better than a poorly managed, illegible mass; it is after all how you use and interpret the data that counts. That job is made far easier if you\u2019re prudent about what you choose to monitor.<\/p>\n\n\n\n

\u201cFor procurement to take advantage of digitisation, it should be using key procurement data,\u201d Holmes says. \u201cYou need to be able to look at spend data, contract data and invoicing data. Those three elements give you insight into category spend, supplier performance and the nature of your processes, among many other things.<\/p>\n\n\n\n

\u201cWith clarity on those elements, you can start to see patterns emerging. You can start to make decisions with confidence and accuracy, and you can make incremental and iterative improvements to the fundamental aspects of procurement. Over time, this compounds and transforms procurement into strategic partner within the business \u2013 as opposed to a cost centre.\u201d<\/p>\n\n\n\n

Tellingly, this phenomenon loops back to the idea that faster and better information ultimately leads to better service and to a better performing business overall.<\/p>\n\n\n\n

One of the major selling points of digital transformation is that it frees execs from mundane repetitive tasks into more strategic work. In his experience, Holmes says that happens \u2013 and it leads to significant improvements for the organisation.<\/p>\n\n\n\n

\u201cI was able to save a contractor seven figures recently, simply because I had data to hand. I was able to approach the team that is responsible for compiling and analysing data and ask for specific procurement data sets.<\/p>\n\n\n\n

\u201cUsing that data, I was able to spot an opportunity to make the saving. If I\u2019d had to find and compile that data myself it would have been too time consuming and the opportunity would have been missed.<\/p>\n\n\n\n

\u201cI was able to make a decision in half an hour. In today\u2019s market, that\u2019s a huge competitive advantage, and one that not many business can afford to pass up.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The crucial role of digital transformation in procurement, enhancing efficiency and unlocking savings through strategic data utilisation.<\/p>\n","protected":false},"author":2,"featured_media":363,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13],"tags":[17,18,16],"acf":[],"yoast_head":"\nThe Why and How of Digital Transformation - I-Tel Group<\/title>\n<meta name=\"description\" content=\"The crucial role of digital transformation in procurement, enhancing efficiency and unlocking savings through strategic data utilisation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/itelgroup.co.uk\/development\/news-updates\/the-why-and-how-of-digital-transformation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Why and How of Digital Transformation - 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