World Class Supply Chain

The Tesla story: The Best Way to Understand Your Procurement Digital Transformation

As I try to explain Digital Transformation to friends I am sometimes met with blank stares and drooping eye lids.  In this brave new world, Digital Transformation is pounded at people mercilessly by way of the internet, news, and thousands of fresh faced start-ups.  As such, it’s imperative that clients understand the future Digital world.  Just think how Amazon is crushing retail and how Tesla is turning the car industry on its head. These are colossal game changers.

I work for IBM and we are now a Cloud and Cognitive company. This isn’t a term we take loosely. This is our brand now. My email signature states – “IBM is a Cognitive Solutions Cloud Platform CompanyI am bringing cloud solutions to clients like SAP Ariba (which is like going from an old clunker to a high end vehicle for your indirect purchasing). I also will occasionally explain the benefits of cognitive computing such as IBM Watson (understands all forms of data including unstructured, interacts with people and learns and reasons) and the partnership with SAP Ariba and SAP Leonardo as well.  Another thought-provoking topic is Blockchain, but that is for another article.

How SAP’s Ariba will Significantly Help Reduce Procurement Cycle Times

Let’s get back to Tesla. First off, Elon Musk is dead serious about Colonizing mars, and this dream drives all of his endeavours. Sounds insane, but he is literally changing the world with Tesla, Space X, and SolarCity.

The Tesla is a computer on wheels.

A Tesla has an Internet connection and can download software updates from the “Cloud”. While owners sleep, Tesla engineers access the car via the Internet, apply updates, and the owners feel like magical elves had done the work as they drive off in the morning.

The same thing applies to SAP Ariba. Not sure that customers feel like magic elves have updated their system, but with Ariba Cloud, the system is always current. And changes can be evaluated and functionality can be turned on or off.

Now this is going to the heart of Digital Transformation.  Utilizing the Internet or Cloud to gain direct access to client’s software (or suppliers) is a game changer. SAP Ariba connects buyers and suppliers in real time delivering cloud-based E- Procurement solutions with advanced analytics and automatic Cloud updates.  

When you think about how a car is now a computer on wheels with the Cloud updating its software, consider how a cloud-based E- Procurement solution with advanced analytics can revolutionize your business.

Reference:  IBM Watson meets Ariba and SAP Leonardo for cognitive procurement

Reference:  Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

As well as being a former Managing IBM consultant in the Source to Pay Practice, Terry Vermeylen is the founder of  and and President of Terry Vermeylen Enterprises Inc.

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