Part 3: In Conversation with Sebastian Chua on Embracing Digital Transformation

In the 3rd and final part of our chat with Sebastian Chua, we acknowledge the massive effects on the supply chain industry and beyond due to Digital Transformation.

COVID-19 has put the spotlight on procurement with disruption to businesses, worsening economic downturn, risks in supplier relationships, uncertainty of supply chains and outlookof a new business landscape after the rebound. In the turmoil of things, procurement leaders need to holistically look at all the problems and solve it by turning to technology.

The trend of being agile and quick to react to balance costs, manage supplier relationships, fulfill social responsibility and deliver massive returns to gain a competitive edge is of paramount importance. With that, business are racing against time to pivot by adopting technology to perform their day-to-day duties efficiently and cost-effectively where possible or sometimes in new ways.

Digitalization has been an elusive goal over the years and we have constantly heard of the term ‘Digital Transformation’ but what does it entail? Technology is not just a catalyst for change; it is also the enabler of change. If businesses choose not to invest or resist the adoption of technology-driven solutions, they will run the risk of falling behind. Why? Because these technological advancements fuel an expanding pipeline of procurement solutions.

So we speak with Sebastian to find out what are the key attributes to adequately embrace and drive digital transformation?

According to Sebastian; "The greatest danger now is not digital disruption – it’s to act with yesterday’s logic!

Digital transformation is reinventing the ways many businesses operate. Across several industries, the common denominator remains the same: start-ups that harness automation, AI, cloud platforms and other new technologies to deliver digital services are proving to be more efficient than less nimble incumbents.

As such, the role of procurement has evolved and digital technology has re-shaped the way we sourced. We should capitalise on digital technology to transform the business strategy, optimise business performance and discover the game-changing innovations. It offers us an opportunity to make procurement awesome.

I see the importance of these 4 key attributes to adequately embrace and drive digital transformation. 

1) Intellectual curiosity  

To deliver faster insights for business decisions, analytical skills will be in high demand. Procurement needs to know how to ask the right “why” questions, detect patterns in data, find cause-and-effect relationships and challenge the status quo.

2) Technology-savvy 

Procurement does not need to become data scientists, but we need to be, at least, familiar with new technologies. With that, we can have intelligent conversations with IT personnel and quickly adopt new tools that do not require IT intervention.

3) Business acumen 

As a business function, procurement needs to have a thorough understanding of the company’s operations, value drivers and competitive environment.

4) Storytelling skills 

Data is the mechanism that makes digital business possible, but the delivery mechanism is a story. Even the best digital technology might not be able to change the mind of the CEO unless the outcome can be expressed in the form of a story, business problem or solution.

If you have yet to embark on your digital journey, do not worry. Like most disruptive technologies, benefits do not necessarily go to the early adopters. Success goes to companies who know how to absorb, adapt and manage change.

End of the day, digitalisation alone cannot transform any business. We need both human skills and digitalisation to transform our jobs. Digitalisation is not the target, but an enabler. We need to focus on how it drives values and results.“

Slowly but surely, procurement leaders are starting to embrace technology to yield benefits. By defining a set of realistic digital capabilities, implementation stages, and applicable technologies available, procurement teams will be able to push for differentiation. As daunting as it sounds, technology is complex but with the right attitude and end in mind, you can only benefit from the success stories that is to come.

As the old saying goes, every thousand-mile journey begins with one step!