While everyone wants digital transformation projects, punters need a realistic expectation of the tech’s maturity, a new report said.
The research, conducted by Forrester Consulting and commissioned by Ivalua, used a digital maturity index to assess organisations’ structure, strategy, process, measurement and technology to determine the right level of digital maturity. It found that most organisations are significantly overestimating their maturity. Only 16 percent of businesses had an advanced level of digital maturity in procurement, giving them a source of competitive advantage over rivals, though 65 percent assessed themselves as superior.
David Khuat-Duy, Corporate CEO of Ivalua. “Digital transformation is critical to success, but requires a realistic assessment of current maturity, a clear vision for each stage of the journey and the right technology.”
He said that obstacles differ significantly based on the stage of transformation, indicating a need to assess technology based on both current needs and future ones. Early in the journey, lack of budget and administrative support are primary obstacles, while more advanced organisations struggled with poor integration across their source-to-pay systems. As a result, advanced organisations were most likely (60 percent) to be planning to implement a full epurchasing suite.
The study revealed that organisations frequently make poor choices with regards to technology, which impedes digital transformation. Over three-quarters switched or are considering switching technology providers. The primary reasons for switching are poor levels of supplier onboarding (30 percent) and poor user adoption (27 percent). Onboarding suppliers quickly is critical for any technology adoption, yet just 17 percent of organisations can onboard new suppliers in less than one month, with 59 percent taking one to three months per supplier.
“To ensure that technology empowers procurement transformation, rather than constrains it, leaders must consider their current and future requirements when evaluating options”, said David Khuat-Duy. “Doing so ensures a steady progression along their journey and the ability to gain an edge on competitors.”
“Ivalua is uniquely able to empower and accelerate every stage of the digital transformation journey. Our platform helps organisations overcome obstacles like poor supplier onboarding and low user adoption. This is why we maintain the industry’s highest customer retention rate, at over 98 per cent, year after year, while serving the most demanding brands in the world.”
The April 2019 study was conducted by Forrester Consulting on behalf of Ivalua and is based on a survey of more than 400 finance, procurement and supply chain leaders throughout North America and Europe, as well as several in-depth interviews.
