At first, digital transformation may sound like yet another buzzword making the rounds. However, it is actually a crucial process in the present-day business world. The need to modernize, digitalize, and automate various processes has become the norm for practically any business wishing to remain competitive.
Because of it, certain roles within a company have become significantly more prevalent and strategic than they used to be. Among such roles, two stand out: the chief procurement officer and the chief information officer.
With IT spending on the rise, it is more important than ever to ensure your company makes the most of those investments. And in order to achieve this, firms need to have both development and procurement strategies in place because it is only through the combination of the two that an organization can gain the full benefits of its digitization efforts.
Consequently, developing and implementing such a comprehensive strategy requires careful and constant coordination between the procurement and IT departments. And in particular, their chiefs. When the CPO and the CIO start working together strategically, the benefit is great.
Benefits for the CPO
As the person with the final say, it is the CPO’s job to lead the digitization project in the procurement department. Because this area of business tends to be less open to change than others, a good strategy is crucial. This is where the CIO’s help can be invaluable.
Their first joint mission should be to determine which segments of the procurement process can be automated. The end goal is to find the technological tools and solutions which can shorten the time employees spend on repetitive tasks. This includes things like collecting and comparing multiple bids for the same contract.
In addition, the CIO can play a vital role in maximizing the potential of existing technology. Despite the rapid advances, not all modernization efforts require brand new assets. It might be possible to use the systems your company already has to improve the procurement procedure. This way, you can make the overall transformation not only quicker but also easier.
Benefits for the CIO
On the other hand, the CIO’s role is to guide the entire company through the digitalization process. Naturally, this requires a lot of investments and the CPO can help with budget constraints. In this regard, the key is to devise a sustainable long-term strategy for procuring new software and equipment.
For this, you can get the optimal results by involving the CPO in the entire process as soon as possible. They need to know the overall digitalization plan and work with the IT department on every step of the way. This is how the CPO can help with the digital transformation and generate the most value.
Whenever you’re dealing with large technological initiatives, it’s easy for spending to get out of hand. In order to avoid it, the key players need to be on the same page at all times.
By working together, the CPO and the CIO can do a better job of improving efficiency and keeping the costs down. But because tail spend is so difficult to keep track of, they may need help.
At Fairmarkit, we can provide your company with precisely that kind of assistance. Our platform makes tail spend more visible and give your executives an opportunity to formulate better strategies. To see the benefits firsthand, simply request a personalized demo.
To learn more about the CIO-CPO relationship check out part two of our Define the Relationship: CPO – C-Suite.