Increasing Efficiency & Effectiveness in Procurement Through Digitization. Global Procurement Conference -2019. Kolkata Presented By: Francis Xavier
Increasing Efficiency & Effectiveness in Procurement Through Digitization.
Driving Forces of Industry Competition and SWOT analysis.
Increasing Efficiency & Effectiveness in Procurement Through Digitization. Effectiveness (Impact of price , risk , revenue and innovation ) Efficiency (Impact of time-to-market down, low resources used, processing costs down , High Contract compliance and pleasant interaction/Experience )
Increasing Efficiency & Effectiveness in Procurement Through Digitization.
Increasing Efficiency & Effectiveness in Procurement Through Digitization. Rules of the Game: Common pitfalls to Avoid ! This can be done in the long term. We live in the short term We are meeting cost targets- then why do we need to look for any more strategies? This requires a lot of cross functional dependencies This is very complicated to be adopted by us We had a bed experience earlier. We don’t have bandwidth for all these activities Theoretically it sounds good, but in practice it will be difficult This is for the short term. We must look into the future Maybe it is good for company Y, but our situation is different I don’t need it but because I already have it, let me keep it If it was so good, why wasn’t it done before ROI is not clear. IT takes call on Digital procurement solutions and gets deprioritized
Increasing Efficiency & Effectiveness in Procurement Through Digitization.
Increasing Efficiency & Effectiveness in Procurement Through Digitization.
Sustainability of an Competitive Advantage It is relatively easy to learn and imitate another company’s core competency or capability if it comes from explicit knowledge than tacit knowledge. Explicit knowledge- knowledge that can be easily articulated and communicated Tacit knowledge- knowledge that is not easily communicated because it is deeply rooted in employee experience or in the company’s culture VRIO framework -: Value: Does it provide value and competitive advantage to organization? Rareness: Do no other competitors possess it? Imitability: Is it costly/difficult for others to imitate? Organization/Original: Is the firm organized to exploit the resources?
Procurement Political & Technological environment
Half-Truth of First-Mover Advantage Two factors that powerfully influence a first mover’s fate: The pace at which the technology of the product in question is evolving The pace at which the market for the product is expanding. (Source: Harvard Business Publishing, 2005)
Is a First-Mover Advantage Likely? (Source: Harvard Business Publishing, 2005)
Outsourcing Matrix