For organizations looking to identify cost savings, increase profitability and get a leg up on the competition, indirect spend management is an ideal place to look. Often considered the backend of procurement – involving expenses like IT services and equipment, professional services, office supplies and HR services – indirect spend actually accounts for a significant portion of overall spend.
I do a lot of reading about next-generation strategies, trends and tactics being employed by leading procurement organizations. Often, I find myself confronted by the notion of “best-in-class.”
Is Agile for everyone?
Conventional wisdom has it that Agile product development works only in business cultures that fully embrace the methodology’s principles of responsiveness, speed and focus on business requirements. If you’re not all in, the thinking goes, don’t bother.
As procurement professionals, we are always striving to achieve the best total cost of ownership with the products and services we purchase. We’ve seen the negative impact that bottom-dollar pricing can have with respect to quality and delivery. We’ve seen how over-engineered products with high price tags can erode our margins. Our constant aim is to look at each purchase holistically and measure its total value to the company we represent. So why don’t we look at our procurement teams the same way?
Many sourcing experts have been through a provider merger or acquisition in their time in the industry. The concern that it will disrupt existing services or alter the nature of the engagement can make M&A announcements a troubling read.
Whether you crossed the automation chasm early, or are just starting your journey into digital service delivery, you’re not alone if you’ve got questions surrounding technical ecosystem choices. Generating ROI—and how exactly to go about proving the value of numerous small automation projects versus one giant re-platforming initiative—is a common challenge.
Open vs. Closed Ecosystems
Today many organizations still struggle to simplify their application landscape. CIOs leverage Software as a Service (SaaS) as a catalyst for application rationalization. First, SaaS functionality is well documented. There is no decision-making ambiguity regarding the match of SaaS functionality and the business requirements. Second, SaaS data migration effort is minimal.