EDITOR’S NOTE: You never know when a LinkedIn post will start taking on a life of its own. However, this one is developing into an insightful and necessary discussion stream about GenAI and procurement. The following is my response to the following comment.
I used an Agent-Based model to assess, develop, and implement a web-based self-learning algorithm platform for MRO procurement to support the Department of National Defence IT infrastructure in the late 1990s/early 2000s. Please look at the results.
You can overcome the obstacles you describe with an agent-based model versus leading with tech using an equation-based model.
Regarding today’s Procurement Insights post, why is it so difficult to get an answer to the following – Please show me the results and confirm that you are a profitable organization. I will sing your praises far and wide.”
Despite all the videos and marketing hype, we are not talking about a technology issue. It comes down to is understanding a problem, solving it, and progressively measuring the results.
One final note about technology—if we keep using a technology-first equation-based approach, we will be having this same discussion 15 years from now. At that time, we will look back on today’s tech with the same dismissive attitude we now have towards floppy drives, 2800bpms modems, dot matrix printers, and spreadsheets (make note of this last one).
About Spreadsheets
I briefly chatted with ChatGPT and asked the following question: What percentage of businesses still use spreadsheets? To which I received the following answer:
“As of recent surveys, around 70-80% of businesses still use spreadsheets in some capacity for tasks like budgeting, data analysis, and project management. Despite the availability of more advanced tools, spreadsheets remain popular due to their ease of use, flexibility, and familiarity. However, this reliance can also lead to inefficiencies and errors, especially in larger or more complex operations.”
As you ponder the above answer, I remember when Visicalc first emerged in 1979. I also remember when Lotus 123 came out in 1983. Spreadsheets were amazing – even revolutionary in that they played a significant part in legitimizing the personal computer. Of course, Visicalc and Lotus 123 are long gone, but here we are in 2024 and despite predictions of their demise over the last couple of decades, spreadsheet use hasn’t declined. If anything it is increasing.
In hindsight, Microsoft’s June 2004 play for SAP makes even more sense now, than it did back then. I often wonder how things might have been different had the June 2004 Mendocino Project materialized. Would Microsoft’s reported/purported plans to buy SAP turned the myth of a single source solution into a reality: https://procureinsights.com/2007/12/05/microsoft-acquires-sap-a-commentary/
Now I am not suggesting that spreadsheets are the answer to all of procurement’s challenges – note the last sentence in ChatGPT’s response to my question, e.g., “this reliance (on spreadsheets) can also lead to inefficiencies and errors, especially in larger or more complex operations.”
My point with bringing up the topic of spreadsheets is that while ERP, SaaS, digital transformation and GenAI initiatives underline the failings of these technology-first generational initiatives, spreadsheets have evolved and continue to be used despite the at time heavy criticism directed towards them.
To be precise, for what they are meant do, spreadsheets “Excel” (pun definitely intended). The same unfortunately cannot be said for ERPs, SaaS, digital tranformation, or GenAI solutions.
What can we learn from the evolution of spreadsheets that we can apply to the latter’s initiatives? After all, with 80% of initiative failures over the past few decades, ERPs, SaaS, digital tranformation, or GenAI solutions aren’t even getting to the stage of adoption that leads to the spreadsheet’s shortfalls. Maybe that is the reason why so many staunchly defend spreadsheets because for them it solves a real problem versus a conceptual goal.
Of course, isn’t that the purpose of any initiative – solve real problems.
Procurement Insights
Do today’s GenAI initiatives suffer from “Spreadsheet Envy?”
Posted on August 18, 2024
0
EDITOR’S NOTE: You never know when a LinkedIn post will start taking on a life of its own. However, this one is developing into an insightful and necessary discussion stream about GenAI and procurement. The following is my response to the following comment.
James Meads Check out the following link and the adjunct reference links – https://bit.ly/4fvYZe5
I used an Agent-Based model to assess, develop, and implement a web-based self-learning algorithm platform for MRO procurement to support the Department of National Defence IT infrastructure in the late 1990s/early 2000s. Please look at the results.
You can overcome the obstacles you describe with an agent-based model versus leading with tech using an equation-based model.
Regarding today’s Procurement Insights post, why is it so difficult to get an answer to the following – Please show me the results and confirm that you are a profitable organization. I will sing your praises far and wide.”
Despite all the videos and marketing hype, we are not talking about a technology issue. It comes down to is understanding a problem, solving it, and progressively measuring the results.
One final note about technology—if we keep using a technology-first equation-based approach, we will be having this same discussion 15 years from now. At that time, we will look back on today’s tech with the same dismissive attitude we now have towards floppy drives, 2800bpms modems, dot matrix printers, and spreadsheets (make note of this last one).
About Spreadsheets
I briefly chatted with ChatGPT and asked the following question: What percentage of businesses still use spreadsheets? To which I received the following answer:
“As of recent surveys, around 70-80% of businesses still use spreadsheets in some capacity for tasks like budgeting, data analysis, and project management. Despite the availability of more advanced tools, spreadsheets remain popular due to their ease of use, flexibility, and familiarity. However, this reliance can also lead to inefficiencies and errors, especially in larger or more complex operations.”
As you ponder the above answer, I remember when Visicalc first emerged in 1979. I also remember when Lotus 123 came out in 1983. Spreadsheets were amazing – even revolutionary in that they played a significant part in legitimizing the personal computer. Of course, Visicalc and Lotus 123 are long gone, but here we are in 2024 and despite predictions of their demise over the last couple of decades, spreadsheet use hasn’t declined. If anything it is increasing.
In hindsight, Microsoft’s June 2004 play for SAP makes even more sense now, than it did back then. I often wonder how things might have been different had the June 2004 Mendocino Project materialized. Would Microsoft’s reported/purported plans to buy SAP turned the myth of a single source solution into a reality: https://procureinsights.com/2007/12/05/microsoft-acquires-sap-a-commentary/
Now I am not suggesting that spreadsheets are the answer to all of procurement’s challenges – note the last sentence in ChatGPT’s response to my question, e.g., “this reliance (on spreadsheets) can also lead to inefficiencies and errors, especially in larger or more complex operations.”
My point with bringing up the topic of spreadsheets is that while ERP, SaaS, digital transformation and GenAI initiatives underline the failings of these technology-first generational initiatives, spreadsheets have evolved and continue to be used despite the at time heavy criticism directed towards them.
To be precise, for what they are meant do, spreadsheets “Excel” (pun definitely intended). The same unfortunately cannot be said for ERPs, SaaS, digital tranformation, or GenAI solutions.
What can we learn from the evolution of spreadsheets that we can apply to the latter’s initiatives? After all, with 80% of initiative failures over the past few decades, ERPs, SaaS, digital tranformation, or GenAI solutions aren’t even getting to the stage of adoption that leads to the spreadsheet’s shortfalls. Maybe that is the reason why so many staunchly defend spreadsheets because for them it solves a real problem versus a conceptual goal.
Of course, isn’t that the purpose of any initiative – solve real problems.
30
Share this:
Related