Future Trend 34: Digital Transformation

How did SI miss this one in it’s two in-depth series on the future of procurement and it’s follow up future trends expose???

This anti-trend is as old as the internet!

But let’s back up. Recently, the procurement dynamo published a piece on the digital transformation of procurement where he asked if it was a good abuse of language. In this post he started off by noting that the digital transformation expression is an overused buzzword — which is an understatement.

Secondly, as the procurement dynamo notes, no one has a proper understanding of what it actually means. the procurement dynamo attempts to rectify this by giving a clear definition of the term with respect to the also overused digitization and digitalization terminology. According to the procurement dynamo

  • digitization is the conversion from analog to digital … atoms to bits …
  • digitalization is the process of using digital technology and the impact it has and
  • digital transformation is a digital-first approach that encompasses all aspects of business

… and, in particular, digital transformation is a digital-first approach to the extent that digital can be applied.

And this means that this is yet another anti-trend in Procurement as leading organizations have been doing this ever since the adoption of e-Auctions. The best organizations have been adopting, to the extent possible, new technologies since the e-auction hit the scene 20 years ago. RFX. True e-invoicing. Supplier Information Management. Contract Management. Decision Optimization. And so on. The leaders (which are very, very few) have pushed for, and embraced, digital transformation for the last two decades.

And, to be honest, when you get right down to it, the concept of digital transformation is, as a farmer would say, hogwash. You’re either continually adopting and using the best tools and processes available to you, or you are counting down to the days your doors close. The organizations that have survived decades have embraced multiple technological revolutions. They’ve went from carbon paper to copiers to digital transmission. Digital transformation is just the latest technological revolution, and may not be the last. (If quantum tech gets perfected, you’ll have to move to technology based on qubits … a blend of atoms and bits.)

So don’t fall for the latest fad — keep focussed on the goal. Better business building.