I have little evidence to base this on, but I’m not going to let that stop me saying it: CPOs must reacquaint themselves with innovation, and fast.
In this AI-obsessed, geopolitically challenged world – a world in which tweets drive foreign policy and digital startups come and go as freely as venture capital is allocated – it’s worth remembering and challenging ourselves on procurement’s raison d’être.
That raison d’être – or purpose – will naturally differ depending on your industry and functional maturity but, for those CPOs leading more progressive functions, it should clearly be aligned with value add, top-line growth and innovation.
Perhaps it’s natural I’m writing this as the new year begins to gather pace. January provides a clean slate and a natural break between the old and new, the past and future. It’s a time to move into execution and implement new ideas. So, if innovation isn’t towards the top of your list of priorities and firmly locked into your functional value proposition, I would quickly reevaluate.
As we continue to be hypnotised by the sorcery of AI and what the technology will make possible, it’s worth reminding ourselves about what it won’t be able to do and, therefore, where CPOs should invest a significant portion of their resources.
For this function, technology is only – and always will be – an enabler. AI might make procurement a faster, more impressive enabler, but don’t let that distract you from reality. Enablers are simply a means to an end.
Before Christmas, a Procurement Leaders member emailed to share his musings on the back of a previous CPO Crunch and, in doing so, demanded that the function “move beyond transactional thinking to become a true architect of value and innovation”.
We’ve heard this before but, as we venture into the new year and all the disruption and progress it’s likely to bring, the CPO’s words resonated as he reminded me of the potential power of this function.
He wrote: “Relevance is earned through evolution – and that evolution requires courage… driving frictionless procurement with digitalisation, unlocking supplier-led innovation beyond our own capability and building a truly purpose-driven procurement function.”
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