62. Beyond the Shiny Toys: Why Organizational Readiness is the Real Key to ProcureTech Success

Canda Rozier shares her insights from over 30 years as a procurement practitioner and CPO. The discussion centers on the current state of procurement technology, the hype surrounding AI, and the critical importance of organizational readiness before implementing new tools.

The Reality of AI and Tech Hype

Rozier explains that while AI is currently the "new shiny toy" , it feels different from past trends due to its widespread personal and professional adoption. However, she warns that many companies are simply using "phrase du jour" marketing—like "AI-enabled" or "AI-powered"—without changing their underlying technology. She advises buyers to watch for "tells" of fake AI, such as sales teams who get a "deer in the headlights" look when asked about their underlying Large Language Model (LLM) or vendors who refuse to show a live sandbox demo in favor of a recorded video.

The Inconvenient Truth of Implementation

A significant portion of the discussion addresses why procurement tech often fails. Rozier points out that failure or abandonment rates can reach 80% to 90%. The "inconvenient truth" is that many organizations simply aren't ready for the tech they buy. She compares buying complex software without readiness to buying a Lamborghini without knowing how to drive a manual transmission. Success requires "absorption capacity," which includes the corporate appetite to handle process changes, policy updates, and the realignment of job responsibilities.

Defining Readiness and the "Why"

To be truly ready, Rozier argues that a company must have a unified goal and understand their "why" before purchasing. This includes having a multi-dimensional governance structure and involving cross-functional stakeholders like Finance early on to avoid surprises like mismatched charts of accounts. She also emphasizes that "dirty data" is often a symptom of "dirty processes". Companies must standardize their processes to ensure that once data is cleaned, it stays clean going forward.

Risk as a New Mandate

While procurement has traditionally been "cash motivated" and focused on savings , Rozier notes that risk management is becoming a top-tier mandate due to global regulatory requirements like CSRD and EUDR. She suggests that the fastest way to waste a year in procurement is to chase a shiny toy without a clear purpose , whereas the fastest way to "win a year" is to understand business drivers and partner closely with internal stakeholders.