On the 12th of June this year, we at CPOstrategy had the pleasure of attending DPW’s first ever New York event. 130+ procurement professionals came together for this intimate gathering at NeueHouse, New York City, to learn, mingle, and be engaged by the incredible things happening in digital procurement right now.
The fascinating sessions throughout the day highlighted the current trends and challenges within the procurement segment. Here are five of the most important lessons we learned at the DPW NYC Summit.
AI doesn’t stifle creativity – it promotes it
There can sometimes be a little fear around AI, especially when it comes to art and creativity. However, it’s worth remembering that AI is a tool and it can’t replace human expression – but it can help to enhance it.
Mark Perera, Chairman of DPW, and Scott Belsky, Chief Strategy Officer & EVP Design & Emerging Products at Adobe, discussed this in their talk entitled ‘The radical impact of AI’. They pondered on what makes humans stand out; the answer, they decided, is ideas. As a result, human input will always be necessary. The deployment of AI-powered productivity pools will actually evolve people’s ability to change minds and influence, not stifle it.
In Belsky’s words: “Now we can express ourselves creatively and with confidence, thanks to the tools we have.”
A system should learn you, not the other way around
Orchestration was one of the themes of the day at the DPW NYC Summit. In their session, ‘AI-powered humanised experience: Procurement orchestration at play’, Shachi Gupta, VP Strategy at Oro Labs, and Digital Procurement Futurist Dr Elouise Epstein, delved into this.
They explored the ways in which AI enables us to innovate and improve what we do, and Dr. Epstein reflected on the early days of being a CPO – particularly noting that many fell into the role without knowing what it meant. Change accelerated in 2020 and the concept of a CPO has become solidified since then. However, with that, it has become clear that the way we use technology has changed, and needs to change further.
“The suite providers are over,” Dr Epstein boldly stated. “They’re the old paradigm. The system should learn you. Orchestration is the next generation of procurement.”
Procurement needs a deeper understanding of data
How we use data is constantly evolving, but we need to understand it far better in order to get the best out of it. This was touched on in another session – ‘Next-gen tech: Managing complexity and delivering user simplicity’ – hosted by Mathew Shulz, VP Procurement Strategy at Airbase, in conversation with Christina Howlett-Perez, AVP Head of Procurement at Definitive Healthcare, and Pierre Mitchell, Chief Research Officer & MD or Spend Matters.
The trio explored the concept of procurement now having a seat at the table, and what that means. For example, it means understanding where your company is at, what the policies are, and knowing how to update procurement in a tactical way. It requires focus on gen AI, intake, and orchestration.
The challenge is understanding data better. There needs to be total transparency for end-users as well as the CEO and CFO, requiring easy, adaptable tools. As a result, procurement desperately needs more people with a deep understanding of data, otherwise advanced technological upgrades are just sticking a plaster on a gaping wound.
Digital transformation is not about technology
For obvious reasons, transformation was also a major theme of the DPW NYC Summit. David Rogers, author of ‘The Digital Transformation Roadmap’, led a talk entitled ‘Fueling AI adoption with a transformation mindset’, and highlighted the fact that digital transformation isn’t about the technology you choose.
As with Mark Perera and Scott Belsky’s talk, Rogers’s centred around why humans are still so important when making technological change. What digital transformation is actually about is a change in strategy in mindset; the technology is merely the tool. It’s used in the service of the business to solve what needs to be solved, but people and change management are at the core.
There are four big debts to overcome in procurement
Tony Philippone, Chief Research Officer at HFS Research, closed the DPW NYC Summit with some final remarks and additional words of wisdom. At the end of an inspirational event filled with practical, applicable advice, and discussions marked by ideas and challenges, Philippone reminded attendees that there are still roadblocks ahead.
“A lot of the technology we use today is dead,” Philippone stated, echoing the sentiments of Dr Epstein earlier in the day. He highlighted the fact that procurement is as people-driven as it’s always been – again, a theme felt throughout the day – but that there are still four big debts to overcome. Those are people, process, data, and technical, and they require plenty of attention in order to move forward.
