Digital transformation of Procurement: a good abuse of language?

Digital transformation of Procurement: a good abuse of language?

Digital transformation of Procurement: a good abuse of language?

The expression “digital transformation“ is becoming an overused buzzword. It is because many use it without a proper understanding of what it actually means. This explains why many organizations are puzzled with regards to how to become digital.

… then we could consider that most organizations are already there*.

*: if we except thehuge adoption issue of some Procurement technologies.

Electronic tools have been around for a while now. Some are even ubiquitous. So, it would mean that digital transformation is an old story and that most (if not all) organizations are already digital.

But, according to a recent report by The Hackett Group, the situation in Procurement is different:

As I explained in details in a previous article (see at the bottom of this page for a link to that article), I believe that many CPOs and Procurement teams are unable to articulate a vision or a strategy because of a misunderstanding of the various words used in the context of “being digital.”

I am talking about digitization, digitalization, and digital transformation. These words are often used in place of each other. The fact that many consider these words as interchangeable reveals the confusion around what digital transformation entails. Hence, the trouble to build a clear vision and an executable strategy. Hence, the reference to “buzzword” in the title of this article.



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