Digital Capability Development

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Digital capability development is the process of equipping professionals with the skills and knowledge they need to use technologies such as AI, Blockchain, IoT, and RPA
• Impact: Professionals who possess skills in these areas will be able to most efficiently use these technologies and thereby optimise the organisation's benefit through high levels of productivity and innovation

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Need for Advanced Data Analysis Skills: As processes become increasingly data-driven, there is a growing demand for skills in advanced data analysis as well as a basic understanding of data-driven decision-making
• Reduction of manual processes and labour: Companies aim to rely as little as possible on manual interferences in their processes, therefore all employees must be equipped with basic digital capabilities
• Adaptation to Blockchain Technology: As blockchain is on the rise, employees should have a basic understanding of the chances and risks of the technology

Use Cases 

How to apply this trend? 

• Digital Procurement Transformation: Combining technological innovation with employee training
  Example: Unilever has embarked on a digital procurement transformation journey along their supply chains, investing heavily in developing digital capabilities. A major element of the success is the employee’s education in the field of new technologies
• Data Capabilities for an Entire Digital Transformation: Training employees during the company’s transformation
  Example: Coca-Cola rolled out a digital training program to enable employees to cope with transformational challenges, affecting procurement due to the generated data in the department

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Collaborate with Technology Experts: Invest in and allow for expert-based training sessions on the optimal handling of digital tools in procurement departments
• Establish Continuous Learning Culture: Foster a culture of continuous learning and development within procurement departments by highlighting the benefits of strong digital capabilities