Optimize government purchasing through automation and data analytics.

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We live in exciting times. Public sector procurement teams will look completely different in 3 years than they do today. There are deep forces pulling them in new and exciting directions that will ultimately empower procurement professionals to focus less on paperwork, compliance, and routine purchasing, and more on strategic and value-add thinking. Procurement will be less a bottleneck, and more of an active participant in innovation and strategic investments.

The New Paradigm
According to the Deloitte 2016 Global CPO Survey, 70% of Chief Procurement Officers are focused on delivering self-service solutions for the business, taking the strain off their teams and allowing the business to manage its own activity.

This is part of a major technological shift that’s on the cusp of sweeping the procurement world, moving from Procurement 2.0 (spend visibility, eSourcing, contract management, and requisition to pay) to Procurement 3.0 (self-service software for the business, cognitive analytics, crowdsourcing, and digital reporting).

Procurement 2.0 came out of the eCommerce revolution of the 1990s, and over the last 20 years shifted from on-premise toward cloud based tools. It has laid the foundation for emerging Procurement 3.0 technologies to gain adoption and make a categorial improvement in functional efficiency.

Procurement 3.0 Tools
This is a trend being driven by technology. So what tools can procurement teams adopt to be more self-service and data-driven? There is a class of emerging technologies that can help automate and optimize key spend categories.

Govlist is leading the charge in self-service portals for the public sector. It empowers end users to create and approve compliant RFPs/Bids in public sector organizations, without leaning heavily on procurement staff’s time.
IBM is leading the charge in Cognitive Procurement with the Watson supercomputer. They are helping advanced analytics power a new era of supply chain.
Amazon’s Mechanical Turk is one example of crowdsourced work. Gartner predicts that by 2018, 75% of high-performing enterprises will be using some type of crowdsourcing for business process services
Adopting these technologies will be essential for public sector leaders to implement a Procurement 3.0 model.

Procurement 3.0 Diagram

Winners and Losers
Change brings winners and losers. Those who remain nimble and are quick to adopt these new technologies will see tremendous benefits, and those organizations that lag and resist the shifting forces of the procurement world will flounder, missing out on the wave that’s sweeping the industry. The highest performing procurement organizations will embrace a Procurement 3.0 model as a backbone of their strategic planning, leveraging technology as a multiplier on their team’s productivity.

Aim: Make a public office use https://www.govlist.us

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