Digital transformation is a buzz word on everyone’s lips these days, and it is closely associated with words like block chain, internet of things, artificial intelligence, machine learning, big data. But digital transformation is about having a clear vision. It is designing new ways of doing things that will generate new sources of value. It is for all the company and not just for a specific process or function.
Since the industrial revolution, humans have created tools to augment human capabilities. AI is just another tool of digital transformation that’s here to help us and our customers.
Procurement is simple. If you spend one dollar, you need to ensure that you get more than that in terms of value. At the end of the day, everyone wants to bring intelligence to the business application.
Let’s discuss these technologies in digital transformation:
Block Chain: For contracting and contract management, the technology would verify and certify the existing documents, history of modifications, and versions that will allow procurement and legal departments to have what we call secure contracts.
IOT: The internet of things is a worldwide phenomenon that procurement professionals cannot ignore. Procurement and supply chain could benefit significantly from IOT-enabled devices to manage monitoring and re-ordering of stock.
Artificial Intelligence: AI will allow procurement teams to take all the data coming from thousands of transactions, we will apply machine learning and natural language processing, and tighten all that together to automate the process. The technology will help to offer advice, enable new analysis, and facilitate the user’s journey.
Big Data: Big Data analytics will provide the ability to harness massive amount of data for decision making purposes. One of the important use of Big Data analytics will be in supply chain management. Big Data analytics in supply chain could benefit in terms of increased visibility, enhanced bargaining position in negotiations, better risk management and informed decision making.