Top CPOs Spur Growth, Innovation
An IBM study shows that Chief Procurement Officers (CPOs) are going beyond their typical role as spending watchdogs to become conduits for innovation.A recent study from IBM finds that top Chief Procurement Officers (CPOs) are reshaping their roles in the C-suite to impact the growth of their companies well beyond cost controls to spurring innovation. The results of the study show a marked evolution away from procurement’s traditional role as the gatekeeper to corporate spending and towards a higher level of strategic advising that brings an infusion of innovation to the enterprise. Conducted by the IBM Institute of Business Value (IBV), the Chief Procurement Officer Study found that top procurement organizations are nearly twice as likely to introduce new innovations into the company and 1.5 times more likely to have influenced senior leadership to enter a new market than their lower performing counterparts. These high-performing CPOs have expanded their focus beyond the nuts and bolts of procurement processes — such as serving as the key conduit for innovation from strategic partners and acting as champions of advanced data-driven analytics to help make more informed business decisions. The study is based on the feedback of more than 1,000 top procurement leaders from $1 billion companies across 41 countries, IBM said.
“The most advanced CPOs are proving that focusing on the nuts and bolts of procurement processes is not enough to bring real value to the business,” said Terrence Curley, director of Strategic Supply Management at IBM, in a statement. “True procurement leaders who see the bigger picture can use their unique vantage point in the organization to drive innovation, grow revenues and expand competitive advantage. The results of this study can serve as a road map for all CPOs to follow who want to provide a real impact on the future of their company.”