A critical part of any procurement automation initiative is finding the solution or solutions that meet the organization’s requirements. Before getting to the ‘solution selection’ stage however, an organization should go through the steps necessary to determine its specific requirements and craft the right plan to help keep the project focused on the largest near-term opportunities while also building towards a long-term vision of an automated future state. The first step is to clearly define the scope of the implementation project.
Clearly Define the Project Scope
A procurement automation project may start with a focus in one area within either sourcing or operational procurement or it may pursue a “big bang” strategy. No matter the initial project approach or budget, one unifying characteristic of Best-in-Class procurement organizations is the holistic, long-term view of process automation that they take from the start. Competing short-term initiatives from distinct organizations within the enterprise can result in parallel projects that have no contemplation of the others; while a fragmented technology landscape can often trap organizations that focus solely on short-term requirements from ever realizing the far-greater, long-term value that a cohesive and comprehensive approach and program can deliver. There are numerous other obstacles and risks to achieving procurement excellence; but, with proper planning, most can be avoided or, at minimum, anticipated and minimized.
Where and when a technology project begins are ultimately less important to realizing long-term success than the development of the strategic plan that is designed to support it. For enterprises that are just beginning a process automation project, it is important to understand that the approach does not have to be “all or nothing.” In fact, many organizations take a phased approach and then look to extend their project footprint and increase the value of their initial investment. For those that have already begun, it is not too late to revisit or develop and/or modify the original plan.
Wherever an organization lies in its quest for procurement automation, taking a holistic view and having the right project plan to adopt is imperative to a successful outcome. Even if current budgets and general orientation focus in on one area of the large source-to-settle process, Best-in-Class performers understand that automating the entire process is desired. The most direct and effective path to procurement excellence begins with a plan that looks holistically across the entire process and incorporates and prioritizes the requirements of all stakeholders.
What’s Next?
Once procurement leaders and teams have clearly defined the scope of the procurement/digital transformation project, they need to understand the deployment options, which essentially boils down to: Cloud or on-premises? We’ll pick the discussion up same time, next week.
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