Big events have the knack of etching themselves into our cultural timeline. Previous generations spoke of pre-war and post-war, and now, it seems, current generations have their own reference point: pre- and post-COVID.
Only the events that clearly mark a point of change in our society achieve this privilege, and the coronavirus pandemic is a strong contender. For business broadly and procurement specifically, the change was one of digital transformation. Pre-COVID, many organisations were toying with the idea of digital transformation, but it wasn’t a high priority. Now, after a recession, the tightening of margins and the devastating effects of lockdowns, the digital transformation of our supply chains is top of the list.
The question is: do you have the requisite skillset for this new frontier?
Firstly, what is digital transformation?
Let’s make sure we’re all on the same page. Digital transformation is the comprehensive embrace of digital technologies by a business or organisation. It’s an essential step towards improving and creating new operating models. The goals of digital transformation are:
- Increased productivity
- Identify and create sources of enduring value
- Streamline business processes to improve efficiency
This revolution is sweeping across every industry. Regarding procurement, it involves developing eProcurement solutions that move beyond simple cost reduction exercises to creating opportunities for more effective procurement processes. From supply chain management to big data analytics, digital transformation is forcing beneficial change and improving many procurement activities. It’s also moving items such as indirect spend from the ‘too hard basket’ to the ‘actionable’ category.
Do you have what it takes?
Revolutions bring about change, quickly and dramatically. Big changes to processes such as that brought about by a digital transformation alter the environment and our roles as Chief Procurement Officers. We’re moved away from the narrow and short-sighted task of cutting costs and towards more advanced capabilities focused on creating lasting value for the company.
It’s not an insignificant change, and it begs the question: do you have the skills necessary for this role shift, or do you have gaps that need closing?
Digital transformation has put the skill level of CPOs under the microscope. In the near future, it’s highly likely that procurement teams will have smaller headcounts but be required to perform more highly-skilled tasks. In pre-COVID times, 31% of executives expected the recruitment of workers with specialised digital skills to be critical but difficult due to a high level of competition for such talent.
So, if these pivotal skillsets are being snatched off the shelf faster than toilet paper during a pandemic, what can procurement teams in need of these abilities do? The answer is simple: look within.
Skills Gap Analysis has the technology to identify the gaps in your knowledge. If you don’t know where you’re at, then you don’t know where you need to improve. Once we’ve identified weaknesses at the individual and group level, we can map a path for you that leads to greater digital competency.