The current landscape of Source-to-Pay technology (S2P) is experiencing considerable change. While this has been discussed at length in the media already, leveraging UX and UI at the core of S2P tool development and utilisation to optimise ROI and organisational value through effective procurement has been overlooked.
This blog discusses how the integration of S2P AI with Human Centred Design will address seven distinct unmet needs through improved user-accessibility, frequency of business-critical insight generation and procurement process efficiency, beyond what is currently available.
It is important to be clear what we mean when discussing digital technology. Source-to-pay technology facilitates the process from identifying the business requirement, locating a supplier, through to acquisition and implementation, assisted via purpose-built technology to support the relevant teams.
With the use of any technology interface, UX (User Experience) refers to the way interacting with a digital product feels to the user e.g., the ease of use, efficiency of completing a task and satisfaction. Whereas UI (User Interface) focuses on the functionality, the visual elements, architecture, and layout, alongside design and presentation.
Size of the Prize
Recent analysis from Fortune Business Insights, a technology research expert, suggests that the global market for S2P software was $6.67 billion in 2022. It is now projected to grow to $13.8 billion by 2029, at a healthy Compound Annual Growth Rate (CAGR) of 10.9%.
However, this figure only captures a fraction of the total S2P market activities and its value. So, it’s reasonable to infer that greater growth exists within the overall sector as organisations industries worldwide re-evaluate their spend and cost bases in favour of AI augmented solutions.
Boardroom, investor and consumer scrutiny of sourcing and procurement decision-making is on the rise, powered by the consumer demand for transparency and commercial accountability regarding sustainability and ESG initiatives. In recent years, this, among other financial factors, has motivated the adoption of purpose-built 3rd party technology platforms to aid compliance, transparency, and management of the vast quantities of data generated within supply chains.
In response, S2P providers have largely addressed the business need. For efficiency, providers delivered automated workflows; for communication and presentation, they have developed aesthetically pleasing data visualisation functionality; and, for multi-source data they have provided a vast number of integration options. But all have failed to truly focus on the user, and their expanding lists of core interests.
Historically, businesses have segregated consumer and business user’s needs into distinct offerings of value, usually disproportionately serving the consumer. Yet, with UX/UI, the audience requires the same ease of convenience, adaptability, and intuitive functionality, meaning this separation is increasingly counter-intuitive and counter-productive.
If you’d like to talk to us about AI and source-to-pay transformation, we’d love to chat. Please contact Allison Ford-Langstaff.