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Sourcing Inputs: Part Three of The Accenture Report Series

The new digital landscape has changed how business is done. Whether contracting with suppliers or working with other businesses, the keyword is no longer competition, but coordination. Part of the reason is that digital technology is driving prices down, especially in IT. This means that value is sometimes decoupled from cost.
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Some applications cost less and perform well, while others cost more for little or no increase in performance.

However, the digital revolution has also greatly increased connectivity throughout society, and this has important ramifications for business. For example, the perpetual connectivity of the modern customer means that he or she has more access to information about any individual company than ever before. This means that advertising has been replaced by a very personal type of customer relations. Sourcing the best tools for public relations is now a necessity.

Suppliers like Apple, Google and Amazon are aggressive exploiters of digital platforms and are well positioned to become the strategic suppliers of the future. However, these, and other top tier digital organisations, are gearing up less to become suppliers and more to become partners. It is becoming less and less possible to treat independent suppliers and support companies as just units that can be replaced if they become inconvenient. Innovative areas such as cloud, mobile connectivity and analytics are in a constant state of change that make it hard to cope without outside sourcing.

Modern sourcing consists of generating various partnerships, each partner delivering specific products or services that contribute to the whole. The modern sourcing executive should create a strategic plan that incorporates various suppliers in a coordinated operation. All this has been made necessary by the digital revolution that is not only bringing people together, but businesses as well.

IT has brought on a speed of change unprecedented in history. This means that business must learn to work with IT in order to survive. Business IT interface consists of sourcing digital technology and using digital technology to source other elements as well. This is the only way to move fast enough to stay out in front of change and avoid becoming another Kodak.

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