Because we are a Procurement solution provider, we have gained experience in many projects. Despite the various types of projects (SRM, eSourcing, …) and the various type of customers (size, industry, localization…), there is an eternal truth: successful projects are the ones that take into account the following 3 dimensions: people, process, and technology.
A project related to the implementation of Procurement solutions is a business transformation, not an IT project!
Despite the fact that all project are related to the implementation of software, so something technical, the attention should be focused:
- First, people: because they are the ones that will make the change a reality. If they do not use the solution, then no benefits! Plus, lots of projects we are part of are related to collaboration between people. Internal collaboration between functions and/or collaboration in the extended enterprise (including suppliers for example). If the right mindset / trust / culture is not there, then a technological approach will fail. It is enough to look at failed “Entreprise 2.0” initiatives to see how this statement is true.
- Process: if a process is broken, a tool will not fix it! This may look like obvious but, very often, companies are looking a getting a tool hoping it will fix a broken process. It will not. Having a clear process defined is a prerequisite to any work on a tool.
- Technology: yes, it comes last! For sure, it can bring tremendous benefits, but not out of the blue. The boost in efficiency and effectiveness is built on a solid base! They are an outcome of getting the people do the right things and processes ensuring that the things done are right. Technology is an enabler, not a solution.
“The digital operations advantage is about more than great tools. It’s a combination of people, processes, and technology connected in a unique way to help you outperform your competitors.”
—George Westerman, Didier Bonnet, Andrew McAfee in Leading Digital: Turning Technology into Business Transformation
Where Does The P.P.T. Framework Come From?
The concept has its origin in the 60’s and is attributed to Harold J. Leavitt.
“The diamond model established by Professor Harold J. Leavitt in 1965 focuses on organizational behavior, the dynamics of organizational change and the interaction of four interdependent components found in any business: the people, the task, the structure and the technology. Leavitt’s theory says an overall strategy is vital because when change happens in any one of the four areas it affects the entire system. This diamond model might be helpful to companies introducing new technology systems to the workplace in a way that lessens stress and encourages teamwork.”
In our next articles on the P.P.T. model, we will focus on each component of it. Stay tuned!