While the process for selection of the ProcureTech100 is largely driven by data analytics, narrowing the field from more than 5,000 digital procurement solutions to a short list of under 200 solutions across 10 categories, the final stage of selection incorporates not only data, but also the perspectives of nearly 100 corporate, thought leader, and investor panellists. 90-minute panels for each of the 10 categories provide the panellists with an opportunity to discuss and debate the digital solutions, sharing candid and real-live experiences in technology selection, integration, and use. 

Trends coming out of the panels suggest that digital procurement technology adoption is being driven not only by technological capability, but also by the level of organisational readiness, data integration challenges, and an emphasis on user experience and scalability. Read on for additional insights coming out of the panel discussions! 

🦾 AI and Automation: Limited by Data Challenges 

AI is a recurring theme for digital procurement leaders, and while numerous specialist tools are available, the capacity and effectiveness of these tools is constrained by data quality and input challenges. Panellists noted that a frequent and core hurdle is the requirement for clean and accurate data entry into AI/ML systems, which at the core is more a “people” issue than a technology issue. Similarly, others voiced concerns related to data integration, particularly for niche solutions that have limited interoperability with existing platforms. Ultimately, the consensus is that AI can assist, and lift processes once accurate data is in place, but a larger barrier of data entry and human process-related mechanisms remains. 

📈 Consolidation of Capabilities: Overlap of Functions 

There is broad agreement that procurement technologies are converging across traditionally distinct categories including Contract Lifecycle Management (CLM), Supplier Management, Risk, and Sustainability. Several panellists highlighted this overlap, pointing out the disaggregation of performance management into other capabilities, including CLM. In multiple panels, participants debated whether solutions should focus on a specific niche, or whether end-to-end functionality is optimal. The debate continues. 

🤝 The Customer Experience is a Key Differentiator  

Ease of use and customer experience are critical criteria for evaluating procurement solutions, with numerous panellists commenting on usability as a driving force in satisfaction both internally and externally with supplier partners. Several organisations have emerged as leaders in customer experience and user design, with intuitive interfaces and mobile-centric options. Ensuring customer-centric design and ease of use continues to be a significant trend and often a requirement in technology selection processes. 

💡Innovation and Scalability Concerns

While many tools are being explored and deployed, scalability and ongoing relevance are major concerns for digital procurement leaders. Several technologies were discussed where scalability beyond a narrow scope will become a challenge, as well as the many highly specialised products that may not evolve to cover a broader use case over time. Ultimately, technology firms must deliver products that are highly relevant to not only current needs, but that innovate and evolve over time to meet changing demands. 

💸 Areas Lagging in Funding and Focus 

Despite the global emphasis on ESG and concerns regarding Scope 3 emissions there is consensus that the development and funding of these technological solutions have lagged behind other categories. In addition, numerous corporate panellists voiced concerns that organisations may consider scaling back on commitments due to rising economic pressures. Similarly, a number of panels highlighted that solutions have not kept pace with the need for more sophisticated alerting systems and end-to-end capabilities.   

Conclusion & Thanks 

We’d like to once again thank the 2024 ProcureTech100 panellists for their contributions to the discussions and debates during the category panels this year.

To join the live announcement of the 2024 ProcureTech100, make sure to tune in to the PIONEERS webinar on Tuesday, October 22nd.