RESEARCH TRIANGLE PARK, N.C., July 11, 2019 (GLOBE NEWSWIRE) -- JAGGAER, the world’s largest independent spend management company, and EdgeVerve Systems, a wholly-owned subsidiary of Infosys, have just published a report on digital transformation in procurement, showing that little has changed since JAGGAER began surveying the state of procurement in 2017. Only a minority of procurement professionals stated that their organizations had succeeded with full digital transformation of procurement activities, however, more than half indicated that they have started on the path to automate standard procurement processes.
“Our report identifies some of the most important obstacles to more rapid progress, including the lack of budget and requisite IT skills, lack of progress with data integration and lack of digital knowledge among procurement professionals themselves,” said Robert Bonavito, CEO, JAGGAER. “The majority of organizations are missing an opportunity to increase their efficiency and competitiveness.”
“The good news is that cloud-based solutions and end-to-end platforms enable the followers to catch up with the leaders relatively quickly, if they get a clear signal to do so from senior management,” he adds.
The report entitled “Digital Transformation in Procurement: How Close Are We?” is based on a global survey of 321 procurement professionals conducted between January and April 2019. Main findings include:
- 50% of procurement professionals rate their digital knowledge as up-to-date or excellent – unchanged since 2017.
- 54% of organizations have now at least started the process of digitizing and automating standard procurement processes; but only 2% claim to have fully automated their procurement processes. More than a fifth still rely on fax and paper.
- Larger organizations are more advanced both in terms of awareness and level of technology and personnel.
- A substantial number (40%) of organizations have already automated Procure-to-Pay (P2P) processes.
- As far as the priorities for investment are concerned, predictive analytics, the Internet of things (IoT) and robotic process automation (RPA) top the list.
- Interest in predictive analytics is focused on risk management and spend management processes.
- RPA is a priority for investment for the automation of P2P processes
- The level of integration has not progressed over the past two years: 30% of organizations do not integrate data from upstream/downstream processes, 54% do so manually, and only 16% have automated the integration of data from end to end.
- Organizations most commonly cite lack of budget and lack of the requisite IT skills as reasons for any lack of progress.
Bonavito urged business leaders to look at the procurement function in their own organizations and provide a mandate for change: “Leaders need to look at the technologies behind smart sourcing and procurement, such as digital assistants, and draw up a digitalization roadmap. Our report should provide encouragement and guidance.”
The report is available for download from JAGGAER.
About JAGGAER: Procurement Simplified
JAGGAER is the world’s largest independent spend management company, with more than 2,000 customers connected to a network of 4 million suppliers in 70 countries, served by offices located throughout the Americas, APAC, Asia and EMEA. JAGGAER offers complete SaaS-based Source to Pay eProcurement solutions with advanced Spend Analytics, Sourcing, Supplier Management, Contract Lifecycle Management, Savings Tracking and intelligent workflow capabilities, all on a single platform, JAGGAER ONE. JAGGAER has pioneered spend solutions for more than two decades and continues to lead the innovation curve by listening to its customers and stakeholders in all industry sectors, public services and academia.
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JAGGAER’s REV2019 event happens October 1-3, 2019 at the Sheraton San Diego Hotel and Marina in San Diego, CA. REV2019’s central theme is “Educate – Innovate – Accelerate,” and is an expression of the company’s vision of enabling customers to achieve their business goals through effective application of tools designed to simplify procurement for any enterprise.
For more information on REV2019
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MEDIA CONTACT: Steve Lundin
Stevenjlundin@bigfrontier.com
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