Digital transformation: much more than cool new gadgets and technology

Automation, digitalisation, digitisation and digital transformation are terms often mentioned in the same sentence, but not always used in the right way. Paul regularly sees this in daily practice. As an advisor to organisations that have only just started their digital transformation or are already well on their way, he notices that there is a lot of ambiguity on the subject. “The terms automation, digitalisation, digitisation and digital transformation can cause confusion, especially when not used in the right context. Even more problematic, expectations upfront are often not in line with the results afterwards. For example, there is a substantial difference between what to expect from a digitisation project (converting analogue to digital formats) versus a project that is about digitalisation (using digital technology in existing business processes)”, Paul says.

“At Spendlinq, we deal with the digital transformation of Source to Pay processes, where our focus is on the entire procurement and invoice processing process. From initial supplier selection to payment of purchase invoices. In this context, digital transformation means redefining the Source to Pay strategy and an organisation’s mindset to embrace change in this area, and using technology to create more value faster in line with the organisation’s objectives.”

Paul continues: “There is much more to digital transformation than using cool new gadgets and technology. Digital transformation is an all-encompassing integrated approach that is much more complex. Implementing it also requires much more effort. But the end result is more sustainable! Of course it contains elements of digitalisation and digitisation, but it is more than that. Where digitalisation and digitisation are in fact about technology, digital transformation is much more a continuous pursuit of innovative and flexible business processes, at both strategic and operational level. In our case, that means we specifically look at the Source to Pay (and Purchase to Pay) processes.”

Spendlinq operates at the crossroads of expertise in Source to Pay processes and technological knowledge. The full-service provider has a distinctive approach to digital transformation of Source to Pay processes that rests on 3 pillars: people, processes and technology.

Paul explains: “First of all, it’s about people. And especially about leadership and vision. Management must have a clear vision about the reason, approach and goals of the digital transformation and its communication to all stakeholders. But employees also deserve attention. After all, they need – with or without training – to master the necessary digital skills, so that they understand and use the new processes and technology. And that in turn requires attention to corporate culture. It must be geared towards people stepping beyond their own borders and those of their department (procurement, finance, IT). Digital transformation requires common goals and knowledge sharing. Collaboration and communication are crucial.”

“Besides people, processes are an important factor. This calls for an approach that puts the user first. And that includes a feedback system, so that something is actually done with experiences on the work floor. In addition, up-to-date data and its analysis should form the basis for decision-making. Of course, without losing sight of the human dimension. Moreover, a more iterative and incremental approach to processes is needed to be able to respond to change faster and better.”

“The third pillar is of course technology. Whether it concerns an existing or newly acquired system, and regardless of whether it supports the integral process or individual sub-processes, the Source to Pay software in question must always be optimally integrated with other business systems and platforms. This requires attention to architecture and overall IT infrastructure, which must support the organisation’s needs in the area of digital transformation. And of course security deserves great attention. This mostly concerns policies and measures aimed at securing the data, systems and networks involved.”

Paul concludes: “Digital transformation of Source to Pay is therefore not only necessary for digitalisation and digitisation projects to succeed, but it is a crucial part of the strategy for business transformation. The right technology, combined with the right attention to people and processes, gives every organisation the ability to respond faster to changes and opportunities, and so promote future, sustainable growth and innovation.”