In the light of a digital transformation, the concept of ‘Cognitive Procurement’ is slowly gaining traction and raising eyebrows across the industry. It is the application of cognitive technologies in day-to-day procurement functions to streamline processes, automate rudimentary activities and make strategic decisions using deeper insights that are mined from the huge data volumes available. Technologies that are able to perform cognitive functions like planning, reasoning, learning, decision making etc. which previously needed human intervention and guidance are known as cognitive technologies.

According to a study conducted by The Hackett Group, 85% of the procurement leaders involved in the study believe that cognitive technologies will transform their operations over the next three-five years. However, only 32% of them have a strategy to employ these technologies and only 25% of them have enough resources and intelligence to effectively execute these technologies. Here is a list of the 5 prominent cognitive technologies that you cannot choose to ignore, if not now at least in the future.

1. Big Data Analytics
   Big data analytics is the process of analyzing huge volumes of data to draw patterns, trends and actionable insights with the help of machines having advanced computational capabilities.
2. Machine Learning
   Machine learning is a continuous process where machines learn new things using the data provided, with some human supervision from time to time.
3. Natural Language Processing
   The objective of Natural Language Processing is to train machines with human soft skills to bring about changes in their language and responses; making them more human-like.
4. Artificial Intelligence
   Artificial Intelligence drives automation of rudimentary tasks with computers serving as advanced digital assistants.
5. Process Automation
   Process automation enables one to interlink the various functions, automate the workflow and have minimal errors.

For procurement departments to be the powerhouses of cost-cutting and profit, digitization of processes is inevitable. If your organization is already making efforts towards the same, it is time to step up the game with cognitive technologies. Many industry leaders have begun implementing the above mentioned cognitive technologies in their procurement processes. It is only a matter of time before everyone else follows the cue and embraces the emerging technologies as they evolve.

For a detailed overview of how these cognitive technologies can play a game-changing role in procurement activities, read our whitepaper on the same.