Procurement is eager to realize a digital transformation. Last year, Hackett found that a staggering 95% of CPOs expect to within the next two to three years. Unfortunately, this level of excitement often leads organizations to jump into things and devote time and resources to pursuing the wrong tools.

In many cases, they embark on these fruitless initiatives based on the recommendations of a Gartner Magic Quadrant. On the latest episode of the Source One Podcast, Senior Analyst Benjamin Duffy discusses some of the problems Procurement runs into when it puts too much trust in a GMQ.

Magic Quadrant? 

Duffy suggests there's nothing particularly magical about the GMQ. At best, they provide a high-level snapshot of the Procurement technology landscape. Many organizations, however, take the name at face value and treat the GMQ's recommendations as the only advice they'll need. 

The situation can prove especially problematic for small and mid-sized organizations. Pursuing 'best-in-class,' they attempt to implement solutions that their teams are ill-equipped to leverage. Anticipating next-generation results and performance, they wind up with disgruntled end-users and wasted money.

A More Strategic Approach 

So, how should Procurement go about selecting its technology? "First," Duffy says, "you've got to outline your target business outcomes." These should drive Procurement throughout the process of assessing, selecting, and implementing its new tools.

Without a list of target outcomes, Duffy reminds listeners, Procurement teams can quickly lose their way and ultimately struggle to generate a clear ROI.

Check out the full episode to hear more of Duffy's thoughts on the GMQ and its fatal flaws. 

It shouldn't come as a surprise that technology will play a big part in the conversations at ISM2019. Headed to Houston this April? Make sure to stop by Booth #438 to meet some of Source One's Procurement technology specialists
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