Recently, SIG had the pleasure of hosting ProcureAbility experts Conrad Snover and Darshan Deshmukh for the December CPO & Executive Virtual Series. It was a very engaging discussion, with many thought-provoking takeaways. Let’s get into it!
Conrad, CEO at ProcureAbility, kicked off the exclusive event by explaining the team's research methodology. ProcureAbility regularly conducts research to identify future-looking trends and innovations in procurement. Their in-depth process for identifying the five bold predictions for 2030 consisted of a team of experts who hypothesized on emerging trends and then conducted in-depth research to validate that analysis. The team formulated their predictions for procurement in 2030 based on that data. Then finally, they surveyed CPOs to get feedback on those predictions, which led us to procurement on the brink of transformation.
ProcureAbility's Five Bold Predictions for the Future of Procurement
- Advanced Crowdsourcing
- Procurement Technology Acceleration
- Cognitive Computing
- Hyper Cybersecurity
- Virtual Organizational Design
To set the stage for the interactive session, Darshan Deshmukh, President of ProcureAbility, unveiled the first of the procurement predictions for 2030, advanced crowdsourcing. In the coming years, procurement leaders will increasingly source innovative ideas and solutions from resources with more diverse skill sets. Crowdsourcing offers a range of benefits, opportunities, and implications, including the emergence of a Procurement Social Network that will have its own digital application for RFx work.
ProcureAbility’s second bold prediction is Procurement Technology Acceleration. As technology continues to expand in businesses, companies will replace human operational tasks with more automation, especially procurement teams where the procurement technology landscape continues to grow rapidly. As Conrad noted, future procurement organizations will be smaller, more desegregated, and more efficient teams. 75% of CPOs in attendance indicated that procurement technology acceleration is the topic that is most interesting and timely.
ProcureAbility predicts that by 2030, strategic sourcing will take no longer than two weeks, thanks to Cognitive Computing (systems that mimic how the human brain processes information). RFx strategy, tactical procurement, intake, and RFx administration will either be reduced or automated completely. ProcureAbility’s third bold prediction indicates nearly every aspect of sourcing will utilize some form of machine learning or robotic processing automation.
Spending in the area of Hyper Cybersecurity, ProcureAbility’s fourth bold prediction for 2030, is expected to increase by 30% as cyber risk mitigation becomes more sophisticated. They expect more collaboration with cybersecurity firms during and following an RFx and expanded third-party screening to ensure vendors are meeting KPIs. Organizations should conduct thorough third-party cyber risk assessments to evaluate their safety and breach processes.
The final ProcureAbility bold prediction is Virtual Organizational Design. The ProcureAbility team predicts that by 2030 organizations will become smaller and more agile. They expect that over 90% of sourcing will be done by either contractors or automation, leading to centralized procurement processes, procedures, and data analytics. Virtual Organizational Design will effectively create a scalable workforce with experts executing the strategic sourcing process.
Darshan and Conrad hosted a fantastic, dynamic conversation with several actionable takeaways for the senior industry procurement leaders in attendance. Based on ProcureAbility's predictions, procurement leaders must embrace change as a competitive advantage over the coming decade.
To conclude the discussion, ProcureAbility recommended procurement leaders in the new era of innovation :
- Imagine ~ Explore "The Art of The Possible"
- Assess ~ Evaluate procurement maturity and establish a vision for their transformation journey
- Prioritize ~ Adopt trends/innovations that create rapid impact
- Validate ~ Measure impact to procurement operations to optimize value
Visit www.procureability.com for more industry-leading procurement insights. If you're a senior procurement executive and want to participate in SIG’s peer-led conversations, please join our next CPO & Executive Virtual Series!
Desmond Williams is the digital marketing Manager for SIG. He holds a Bachelor of Science degree in Entrepreneurship and a minor in Sociology from The Florida State University in Tallahassee, Florida. With a background in Marketing and Sales, relationships are at the core of his values.