Implementing a procurement digital transformation, whether digitalizing tools or processes, often turns out to be a much more complex task than anticipated. There are reasons for this.
To help inform organizations on the cusp of transforming, we wanted to learn more from the people who are actually carrying out the day-to-day implementation and have first-hand experience of what can go wrong – the systems integrators.
Taciane Santerre, a Procurement Project Director with Cyrias, and is responsible for designing and delivering tailored solutions for manufacturing companies and focusing on the full-suite deployment of Ivalua’s system. She has successfully deployed more than 10 projects worldwide for major French organizations across the continents.
We asked for her overall take on the propensity of these projects to fail and why they do so.
“Too often,” she told us, “while these transformations are led by technically proficient teams, they underestimate the importance of properly defining the project from a business perspective from the outset. Yet this step is essential in order to clearly outline the project scope, target the right processes and the IT system architecture, and adopt the proper change management strategy.
“In my experience, even the most advanced IT system cannot compensate for poorly defined processes and unreliable data. So before embarking on digital transformation, companies should take the time to assess their readiness.”
This is something we have also learnt from talking with procurement practitioners who have undergone or are going through a digital transformation.
We asked Taciane what are the key questions a company should address before starting on a transformation project.
Consider process maturity
“The first question,” she says, “is about maturity. You need to ask yourself: are your existing processes mature enough for digitalization? Because in our experience, it is not uncommon to see companies attempt to digitize processes that are not yet well enough structured. Many projects fail before deployment because they try to automate workflows that have never had input from, or been tailored to, the perspective of the end users.”
This is a failing we have heard from others: getting all stakeholders’ input is crucial.
“Investing in digitalization without evaluating process maturity,” she continues, “is like constructing a building without a solid blueprint. So before proceeding, ask yourself: is my organization ready to digitize this process? If there are uncertainties, it is better to refine your internal roadmap first to ensure success.
Clearly define master systems
“Secondly,” she says, “remember that data is the foundation of any digital project. Too often we have seen companies invest in data lakes, data hubs or MDM (Master Data Management) solutions without first clearly defining who is responsible for each data type and which master system ensures its consistency. So ask yourself: have you clearly defined the master systems for each data type?
“Failing to define these elements results in major complications when data needs to be retrieved or loaded. A lack of rigor at this stage inevitably leads to production errors and inconsistencies in reporting. With the rise of artificial intelligence, ensuring data reliability and consistency is more critical than ever.”
The real benefit to the end user
“Thirdly, in our experience, the primary goal of digital transformation is to optimize users’ tasks and improve efficiency. However, technical discussions often take precedence, leading to the development of overly complex and non-user-friendly architectures.
“So before drafting your specifications, it’s important to ask yourself: will this IT system truly improve and simplify users’ daily work? And if you can apply Lean Manufacturing principles to IT systems, you can help prevent the accumulation of unnecessary tools and genuinely enhance the user experience.”
The importance of Change Management
“Change management is often treated as an afterthought, regarded as a mere administrative formality. However, it is a key success factor. Without effective support, even technically flawless projects risk never being adopted by users. So consider: have you properly anticipated change management?
“A good change manager does more than just write user guides. They get involved from the project’s beginnings to analyze existing processes, identify necessary adjustments and ensure optimal adoption of the new system. Too many project teams have faced the frustration of seeing their work challenged due to a lack of internal buy-in. So to avoid this mistake, we advise that you anticipate and integrate change management into your action plan.”
Successful transformation
Speaking with practitioners, solution providers and consultants, it is clear that successful digital transformation is not just about choosing the right tools (although that is an important endeavor). As Taciane advises: “It is more about having a strategic initiative with a methodical and collaborative approach. And that means involving stakeholders with experience in Business Analysis and Technical Project Management. The commitment of teams and a clear vision of the challenges involved are the keys to a successful and importantly sustainable digital transformation.”
For more on these topics, you can access our free guide “surviving the digital transformation of Procurement.” This guide covers the many facets of Procurement’s digital transformation from preparing for it to executing it.
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