Imagining the Future of Spend Management Technologies: Ivalua releases findings from latest Procurement Executives survey
Ivalua announces the release of the results of its 4th International Procurement Executives survey, aimed at understanding the drivers shaping Spend Management Technologies today and tomorrow.
Spend Management technologies today offer extensive integration, visibility, and controls to the enterprise, helping Procurement Executives operate more efficiently while saving from such economies. But it isn’t stopping here…. Innovation is driving massive change in Procurement. Ivalua announces the release of the results of its fourth International Procurement Executives survey, aimed at understanding the drivers shaping Spend Management Technologies today and tomorrow.
For the 4th edition of its International Procurement Executives Survey, Ivalua wished to give Procurement & Finance Executives the opportunity to determine their vision of the future of Spend Management technologies and thus carried out one of the largest prospective studies on the subject.
“There is no innovation without a step back, an inventory. This is why the 4th Ivalua International Procurement Executives Survey “Imagining The Future of Spend Management Technology” begins with a flashback allowing participants to take stock of past innovations and continues with a flash-forward asking participants to project themselves in the period from now to 2026. Thus all the Spend Management functionalities have been scrutinized to determine what Spend Management technology will look like in the near future and what will be the impact of innovations on the Purchasing function. This year again, we were able to count on the participation of several hundred decision-makers around the world. Our sincere thanks go to all of these executives who have agreed to share their vision on this issue.” Gérard Dahan – SVP Business EMEA – Ivalua
Results from this year’s survey shed light on several relevant and instructive predictions for Procurement Professionals, including:
- The innovations that will have the most impact in the next 10 years is the integration of Spend Management solutions with the other information systems of the company which will result in a major transformation of the Purchasing Function.
- With the emergence of Procurement Big Data, Purchasing Departments have an unprecedented volume and level of information on the data associated with supplier risks. This data is easily accessible to Procurement Executives and opens exceptional opportunities for identifying trends on the supplier market.
- Spend Management solutions are expected to open up to supplier IS to systematically integrate as much information as possible regarding the management of complex categories. The innovations linked to the e-Sourcing tools will allow in the near future a fluid transfer of the knowledge from suppliers towards the buyers.
- The e-commerce user experience will continue to inspire software vendors and suppliers in the future. The concepts of Dash Button, Store to Client, Roam Delivery, extra-fast delivery … are all innovative B2C concepts that can be replicated in the field of Spend Management. The application of these B2C innovations to the B2B universe requires close cooperation between software vendors and company’s Suppliers. It can be predicted that the most important Spend Management innovations of the next 15-20 years will come from this new kind of cooperation.
- Innovation linked to spend analysis focuses on how procurement data is used (rather than how it is collected). Procurement Executives decision makers are aware that their purchasing information systems contain relevant and useful data for the management of the spend of their company. However, they find it difficult to use this data effectively. To meet these challenges, innovations related to artificial intelligence, machine learning and data lake are being developed.
Methodology & Panel
The 4th Ivalua Procurement Executives international survey is based on a global sample of Procurement, Supply-Chain, Operational, IT, Accounting and Financial executives coming from major multinationals based throughout the world.
These executives were interviewed on their outlook for the Future of Spend Management Technologies, the repercussions of Spend Management innovations and major global technological trends on their professions in terms not only of strategy and processes, but also of the associated risks, gains and opportunities.
A questionnaire with a combination of MCQs and open questions was administered by email between May and August 2016.
To make the results and trends easier to understand, Ivalua divided the survey into 5 main sections, i.e. Past & Future Innovations, SRM Innovations, Sourcing Innovations, e-Procurement Innovations and Spend Analysis Innovations.
621 responses and several hundreds of comments were gathered and analysed, representing a panel of 432 companies around the world.