Whenever I have been invited to speak or write about the dramatic changes in procurement methodologies and practices, the significant interest by organizations that have a technology driven program already in place or have just recently implemented one still surprise me.
Unlike years past, where attention was predominantly centered on learning more about new and emerging technologies, today’s procurement professionals are seeking insights into the actual processes that drive their enterprises.
The impetus behind this change in focus is largely the result of the fallout from the consistently high level of e-procurement initiative failures (according to industry studies for the period between 2001 and 2005, 75% to 85% of all programs fail to achieve the promised results). Accentuated by high profile misses such as the automotive industry’s Covisint marketplace and the Veterans Health Administration’s 7 year, $650 million JD Edwards-Oracle misadventure, change was inevitable and necessary.
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