For many years, Capgemini has been building and implementing operating models around our Digital Global Enterprise Model (D-GEM). This framework serves as a blueprint for procurement around seven levers: Pyramid, Location, Competency, Process, Technology, Governance, and Pricing.
There are two key changes in our next generation of D-GEM for procurement:
- An additional lever for , bringing together the cumulative internal and external knowledge (“know how”) required to bring the intelligence to the procurement function. This may include, for example, category playbooks, as well as external benchmark information.
- Extension of the Technology lever around our Intelligent Digital Ecosystem for Procurement (IDE-P) framework.
The core of IDE-P is the Cognitive Foundation, which comprises four key components that sit on top of an organization’s ERP and other core technologies:
- Data Integration Hub – either the platform or the approach for integration of the various technology components utilized across an organization
- Functional Enablement – for each key function across the source-to-pay landscape, the tools that can be deployed to generate further value or efficiencies. This could be either point solutions, or an end-to-end platform
- Cognitive Orchestration – how work is managed across the various players. This can either be managed within individual functional tools, or as an additional service layer
- Collaboration – the mechanics of how procurement interacts with suppliers, requestors, and other stakeholders.
These components, and the elements within them, can be seen in Figure 2.
Execution in line with this framework will impact key value levers to, in turn, deliver key business objectives and ultimately business value:
- Requestors are connected with compliant suppliers
- Faster cycle times are achieved between request and delivery
- Category insight is improved, to help make better sourcing decisions
- Optimal buying channels are utilized
- Understanding of the supply chain is clearer, including spend and risk control
- Frictionless connections to other parts of the business when making product decisions
- Full visibility of supplier performance and risk (ESG)
- Visibility of the entire process is improved – from source to pay
- Upstream compliance issues are identified and addressed, avoiding downstream blockages
- Increased accuracy and reduced re-work of financial data
- Improved financial control and reduced risk
- Reduced time-to-report with continuous compliance
- Supplier master data is automatically updated
- Integrity of contract and pricing data is improved, and is consistently monitored for non-compliance
Figure 2: IDE-P complements your investment in frictionless procurement
IDE-P – a closer look
One of the main things Figure 2 shows is that procurement processes and delivery functions are built upon a solid base of intelligent, integrated technologies: it’s clearly called the cognitive foundation for a reason.
Achieving that combination of intelligence and integration is both the challenge and the objective:
- To start, organizations need to assess the technology tools they already have.
- Then, using IDE-P as a reference point, they can identify not only gaps, but overlaps, and identify the right tools and relevant processes to fill them.
- Lastly, they can bring all those point solutions, both legacy and new, together in a frictionless, digital operating model that enables organizations to pursue their strategic goals while also remaining responsive to circumstances.
The aim is to boost and sustain not just savings, but value – across the entire organization.
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To learn more about how Cognitive Procurement Services can transform your organization to drive effective, sustainable, and frictionless procurement, contact: email@example.com