Application of Digital Technologies in Procurement: An Analysis based on the Three-Level Model

Abstract

Digitisation has accompanied procurement for quite a while; after the waves of e-procurement, procurement 4.0 is in the starting blocks. The expectations and efficiency gains are enormous; however, many companies continue to live in an analogue past. A thought-through digitisation strategy is essential here, for which it is essential to consider the specifics of the individual process levels to select the best technology for exploiting potentials in a targeted manner. This thesis assesses which technology from big data, AI, RPA and blockchain can unlock the most potential at the individual process level within a tripartite research question. These discussions are based on a three-stage model, broken down into overall strategy, strategic and operational procurement. In order to answer the research questions, a literature review and a qualitative study were conducted. The qualitative study involved interviews with experts from companies of various sizes and procurement consultants. Here, the current status and expected future developments in procurement regarding the four focus technologies were discussed to find agreement or discrepancies between theory and practice. It came to light that there is no definite picture of the future technological structure of the procurement organisation. The following potential assessment results from the research: For the digitalisation of strategic tasks, big data and AI through advanced analytics are suitable, while a combination of cRPA and RPA best automates administrative tasks. If a high executive nature of tasks meets a high involvement of external parties, significant potentials can also be unlocked through blockchain. Further, several other internal and external factors must be considered to ensure a successful digitalisation strategy in procurement.