Inarguably, technology has shaped the current state of procurement. At the Global Procurement Tech Summit, it was evident how true this has become. IBM's Vice President of Global Procurement Dan Carrell gave a presentation putting the topic into perspective. He shed light on how a massive corporation deals with procurement and even how IBM's Watson is helping their procurement processes. Procurement to go through Digital Transformation… like other industries!
Experts with ties to the World Bank Group presented options for using blockchain in e-government procurement (e-GP) in a report released Wednesday, Oct. 17. The World Bank Group includes organizations commonly known together as the World Bank. "Though the implementation of e-GP systems has contributed to enhanced efficiency and transparency in Government Procurement, there is potential for further advancement of the existing systems," the document -- which was developed for the Asian Development Bank -- reads. Countries such as India have over 50 such e-GP structures, which conversely leads to inefficiency, the report notes. Only a select few states worldwide, including Bangladesh and the Philippines, have "had success in implementing a unified e-GP platform."
First, it is important for procurement organisations and their leaders to embrace the reality and potential for AI and cognitive procurement. Understand that, like most technologies, AI may bring changes, but it also presents significant opportunities. Next, based on the capabilities outlined above, think about what projects or processes in your organisation could most benefit from cognitive procurement. As you apply AI to certain procurement tasks and processes, you'll begin developing internal capability and expertise. It will also change the profile and enhance the skill set of your procurement professionals.
We are currently working on an AI in procurement research series that we'll be releasing over the next few months. For now, though, check out this webcast that we did with KPMG where we spelled out 23 different procurement AI areas that are being deployed out in the field. In it, KPMG had a few nice graphics that overlaid various AI technologies onto different procurement business processes. For example, machine learning can be helpful in classifying spend-related text (including unstructured and semi-structured) to any target spend taxonomy within spend analysis for strategic sourcing, but it can also be used to perform real-time auto classification within an e-procurement "guided buying" scenario.