From Facebook to Supplier Collaboration€¦ · •Communication (choice of 1 to 1 and 1 to many...

Copyright © 2014 Azul Partners Inc. / Spend Matters Europe Ltd. All rights reserved. Not for distribution. | www.spendmatters.com 1

From Facebook to Supplier Collaboration

How the Social Media explosion will fundamentally change procurement

Peter Smith Managing Editor, Spend Matters Europe Ltd.

October 9th, 2014

#Modernprocurement

http://www.spendmatters.com/

Copyright © 2014 Azul Partners Inc. / Spend Matters Europe Ltd. All rights reserved. Not for distribution. | www.spendmatters.com 2 2

Peter Smith MA FCIPS

• Born in Sunderland, Maths & Management Sciences degree from Cambridge

• Early career at Mars Confectionery, Procurement Director for the D&B Corp Europe, the DSS and NatWest Group

• Fellow and ex-President of CIPS

• Consulting for 10 years, appointed ‘special adviser’ to the National Audit Office, worked in public and private sector

• First book published “Buying Professional Services” (Czerniaswka and Smith, Economist Books, 2010)

• Non-executive experience in public and private sectors

• Now main job is Editor / MD of Spend Matters - 3rd biggest procurement website in the UK. (Maybe 2nd now?)

• Just launched Public Spend Matters Europe site

2 #Modernprocurement


Copyright © 2014 Azul Partners Inc. / Spend Matters Europe Ltd. All rights reserved. Not for distribution. | www.spendmatters.com 3 3 #Modernprocurement





• @spendmattersuk - 2,500 followers

• Spendmatters.com - Alexa rating of 62,997

• Supply Management 158,427

• CIPS 187,361

• Procurement Leaders 322,879

• Peter Smith on LinkedIn – over 1,000 links

• Spend Matters LinkedIn – FAIL!

• Facebook – not for business?

5

Our Social Media profile

#Modernprocurement



Facebook

• Started in 2003/4 at Harvard then other Ivy League Universities

• My daughter started using it in 2007, moving on from MSN

• Now around 1.5 billion users

• Valued at over $200 Billion

• Facebook paid $19 billion for WhatsApp – 55 staff

• A key B2C marketing tool – less clear where B2B fits in most cases

#Modernprocurement



Twitter

• Twitter was founded in 2006

• The site had 4,000 tweets a day posted in January 2007

• Over 500 million per day now

• 143,199 TPS (tweets per second) in August 2013 during “Castle in the Sky” on Japanese TV

• Valuation – a mere $32 Billion

• A serious tool for change e.g. Revolutionary groups

• Fastest breaking news e.g. Bin Laden execution

• A key marketing tool already - B2C and B2B

#Modernprocurement



And it is not just the mega-sites ...

• Trip Adviser; rating hotels, restaurants etc

• Glassdoor; rating organisations as employers

• Check-a-Trade; find and rate local trades people

• Flickr; photo sharing

• Tumblr; share your interests, blogs etc.

• SoundCloud; share and discuss music

• Mumsnet; a community of ... Mums?

• Tinder; a community of ...???

• Haul Girls (YouTube); what do you think...?

#Modernprocurement







But it can all go wrong

Where are they now?

• MySpace (lost News International $500 million)

• Friends Re-united (lost ITV c. $200 million)

• Friendster

• Google +

• Ping

• Bebo (Lost AOL $800 million)

#Modernprocurement



The pace of change is extraordinary

• Social media has created whole new social phenomena (see next slide)

• It has changed the way we do fundamental things such as searching for a lover / partner (or plumber)

• It has changed our concepts of what is “free” or “chargeable”

• It has fundamentally changed whole industries and business activities, from artistic creation to pension management

• Marketing to the consumer is in a state of permanent flux as advertisers struggle to understand (what is a view on YouTube “worth”?)

• Exponential growth – faster than any previous business trend

#Modernprocurement





How To: My Quick and Easy Hairstyles | Zoella

How many views

do you think

Zoella got for her

tutorial?

How many

subscribers does

she have to her

main YouTube

channel?

#Modernprocurement


https://www.youtube.com/channel/UCWRV5AVOlKJR1Flvgt310Cw












ZOELLA 6,055, 278 subscribers

to her main channel

(another 2.3 million to

“more Zoella”)

7 million views for her

“Quick and Easy Hairstyles” video

2.3 million Twitter

followers #Modernprocurement





Why has Social Media succeeded?

Social Media offers the following benefits to users:

• Communication (choice of 1 to 1 and 1 to many – real time)

• Belonging – to a “club”, building relationships with the like-minded

• Collaboration – working together, a voice, collective action

• Knowledge - (or links to knowledge), learning, teaching

• Reciprocity - essentially active not passive, non hierarchical

• Democratic - everyone has a voice, not curated e.g. haul girls, Youtube channels, SoundCloud

• Choice - self regulated, adaptive, flexible, varied

• Mobile - driven by / helped to drive

#Modernprocurement



But this is not new

From the beginning of humanity we:

• Always wanted to communicate - but now instant, global, inclusive or exclusive as we wish

• Always liked belonging - but now common interests with people anywhere

• Always wanted to know stuff - now it is just there instantly

• Always liked to work together - but now easier, faster, more people

• Always wanted our own say - but now truly democratised

• Always liked choice - now virtually infinite

#Modernprocurement



Why should procurement people care?

• It affects us directly, and we can use it in a personal manner to benefit and contribute towards achieving our own objectives, goals, happiness and success

• It affects how we work within our organisations and with our boss, staff, and other colleagues

• It affects how our organisations engages with its customers

• It affects how we engage with suppliers and other business partners – perhaps the most critical area for procurement

• Our suppliers will use it to engage with us – and with our stakeholders, often by-passing procurement

#Modernprocurement



Social Media in procurement

Recruitment

• LinkedIn has revolutionised the recruitment market

• Twitter and Facebook also important

• Need to be aware personally – and also as recruiters

• But note of warning – ‘fake’ profiles, exaggeration, lying rife!

• And might we see a backlash – “the really good people aren’t looking for jobs and may not even be advertising themselves”

#Modernprocurement




Internal communication

• As our colleagues get relatively younger (!) we will deal with more people who expect to communicate in Facebook, Twitter type style at work as well as at home

• Email use on the decline

• Ability to get messages across in a targeted manner (e.g. to project groups), elicit feedback, build ‘our’ communities

• But people get sick of trite self-aggrandisement (“look what a great thing procurement did today”)

• Look for help and advice, be honest and open, and celebrate success

#Modernprocurement




External communication

• Many similarities to the comments re “internal” but with some additional dimensions

• Speed of communication can be enhanced e.g. For better planning and scheduling

• Ability to grow communities and get input, ideas more quickly and easily via the networks

• Identifying the best suppliers in the world

• Also able to open out to those who are not in the community already e.g. Public organisations advertising tenders on Twitter

#Modernprocurement




Collaboration

• Growing “communication” into “collaboration” is relatively easy

• But need to choose with whom you collaborate

• Ability to elicit get data, information or ideas from a wide spread of participants

• Then narrow it down and use collaborative tools from a smaller group e.g. Suppliers working on a new product perhaps

• We are already seeing new tools to engage suppliers in performance discussions (instant feedback) and to work together in more innovative ways

#Modernprocurement




Risk Management

• Understanding what is happening in the world in real-time

• Understanding what is happening with our suppliers in real time

• Access to expertise, individual or the wisdom of crowds

• Whistle blowing

• Meta- data / Big data – picking up trends (e.g. predicting epidemics based on Google searches, Facebook mentions)

• Quick ways of carrying out surveys, checking accreditiations

#Modernprocurement



The future

•People management – a more fluid contingent workforce, use of alumni networks, expertise is democratised

•Less email, more use of project based tools with a social media angle

•Most technology tools we use will look and feel like social media

•Collaboration – open and closed supplier rating and performance monitoring

•Risk Management – real time monitoring, use of drones, cameras, everything linked

•But possibilities that more governments will get #Modernprocurement



Thanks!

Peter Smith

[email protected]

Tel. 07775 438602 / 01276 691770

Spendmatters.com ... Etc.

#Modernprocurement


mailto:[email protected]

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From Facebook to Supplier Collaboration€¦ · •Communication (choice of 1 to 1 and 1 to many...

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