Chris Sawchuk, principal at Hackett Group, said a survey of buyers conducted by the group found 95 percent believed digital transformation would change the way the function worked over the next five years.

But the same survey found only 66 percent of procurement teams had a strategy, and just 48 percent felt they had the competencies or capabilities to cope with digitalisation.

To make matters worse, Sawchuk said he thought these numbers were inflated and fewer teams actually had strategies or the right capabilities. “I think they’re too high. I work with a lot of organisations around the world and I don’t see the visions out there,” he said.

“Procurement seemingly understands that we have to transform ourselves from a digital standpoint. That will fundamentally change the way that we do things. But creating a vision or strategy, as well as garnering the appropriate resources, is a challenge for us. We don’t feel as confident on our ability to do that.”

Speaking at the Procurious Big Ideas Summit in London, Sawchuk gave buyers his advice for managing digital transformation:

1. Even if you are not ready for digital transformation, create an environment where you are aware of what digital changes are happening. “I deal with a lot [of organisations] that don’t even know how to spell ‘digital’ yet,” said Sawchuk. “Make your people aware, understand the potential of some of these digital technologies that are happening.”

2. Digital transformation is about talent. “It’s not just about the technology. We have to transform our talent, the skills, because there are things that we are doing today that are going to go away.”

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