What Good is Data if it Sits Unused?
We live in an age of technology and information – we as individuals have never had access to so much data in the history of mankind.
There’s an inherent risk to being able to answer any question, at any time, with just the touch of a button. With such huge data repositories, there’s a risk that this data becomes overwhelming, and isn’t utilised effectively. Large elements are ignored, and the shallow surface level becomes the focus. True insights hide deeper within, however.
In order to access these powerful insights, which have the potential to uncover huge opportunities within business, you need the right tools to handle the data.
“Mastering the data will empower procurement teams to achieve strategic objectives that go far beyond traditional cost, quality, and delivery metrics.” – McKinsey, 2024
What Smart Data Management Can Provide
If data analytics is the key to deeper understanding, then within supplier management, it is the key to absolute understanding. There is power in being able to look at a data set and pull from it an accurate appraisal of your business: where it is now, where it might go. To be able to make decisions confidently, with the backing of data. To save money by optimising procurement and mitigate risks with increased overall visibility.
“Better data can support activities and decisions across the sourcing life cycle, from the development of category strategies and the assessment of potential suppliers to the execution of negotiations and ongoing supplier performance management. Done well, that can increase the pipeline of value creation initiatives by up to 200 percent.” – McKinsey, 2024
Confusion surrounding data, particularly when it comes to supplier management, is the enemy of growth. The first step, and often the hardest, is organising data in such a way that it becomes second nature to consult it. Whether in a dashboard, an automated email alert setup, or something more sophisticated; the important part is not the kind of data management system you adopt – it’s ensuring that system works to achieve your organisational goals.
How Smart is Smart?
When we talk about smart data management, as much as small improvements and solutions can be beneficial, they’re only the tip of the iceberg.
When I’m talking about smart data management, I’m talking about intelligent solutions. Data management which doesn’t require you to get involved constantly. The kind which can run autonomously, securely, and effectively. Take, for example, the newest smart enhancements I recently announced for the ARCUS® Platform:
- The AI Assistant: This latest innovation is one that I use myself. I find it incredibly helpful to have an AI Assistant I can use to answer specific queries around my own data. The peace of mind in knowing that the data, outputs, and prompts are all securely stored and not used to train public LLMs is second to none.
- Supplier Synopsis: Access an AI-generated concise summary of key supplier details from within the existing supplier record; eliminating manual searches to give you back your time.
- Document Extraction: Intelligently extract and process data from critical supplier documentation. Uploaded documents are scanned, verified, and relevant data (such as dates, or certificate numbers) is automatically populated into the relevant field within the supplier record.
How Do I Get There?
It’s one thing to aspire for an autonomous and accurate data management process, fully integrated and adopted across your team to drive strategic sourcing decisions and demonstrate value to stakeholders. It’s another to actually enact it.
“CPOs expect data, analytics, and gen AI to play a core role in every business decision by 2030, but respondents to our survey admit that their data infrastructure is not ready to support this ambition. Twenty-one percent say their data infrastructure maturity is low, with less than 70 percent of spend data stored in one place.” – McKinsey, 2024
Issues with siloed data, unmotivated teams, and difficulties demonstrating the business case for such advancements (like AI-enhanced procurement software) all stand in the way of progress. It’s key to an effective digital transformation to choose a provider who can support you throughout the transition, who is experienced in the field, and who has a track record of success.