EDITOR’S NOTE: The following is the discussion stream resulting from a thought-provoking interview between Shaun Syversten and David Loseby which illustrates perfectly why the agent-based model is critical to ProcureTech initiative success.
Shaun Syversten: “Economics, unfortunately, as originally conceived” – “many others probably before”
How much do you rely on logic when making decisions in procurement?
Traditional economics assumes rationality, but behavioral economics challenges this view.
Professor David Loseby MCIOB Chtr’d FAPM FCMI FCIPS Chtr’d FRSA MIoD MICW explains that the fusion of behavioral science and procurement is key to balancing systems and tools with human behavior.
By recognizing over 200 cognitive biases, personality traits, and heuristics, we can better understand how individuals interpret and make decisions.
Are you accounting for the human element in your procurement strategies?
Jon Hansen: Traditional economics versus behavioral econimics is the equivalent of using an equation-based development and implementation model for ProcureTech instead of and agent-based development and implementation model.
People do not solely adapt or respond to logic, so logic must also adapt and respond to people.
Thoughts?
Erwin Scholther: Great point, Jon. I completely agree that the shift from a purely equation-based model to an agent-based one reflects a more realistic approach to how we operate in procurement. In fact, just as you said, people aren’t strictly rational, and procurement decisions often involve more than just logical analysis—human behavior, biases, and emotions inevitably play a role.
Procurement technologies must evolve to accommodate this reality, recognizing that systems need to adapt to the complexities of human behavior, not just data-driven formulas. Balancing behavioral insights with logical processes could be the key to more effective, resilient strategies. It’s definitely a reminder to factor in the human element when implementing ProcureTech solutions.
Thanks for sharing your perspective—always good to exchange ideas on this!
Shaun Syversten: WIIFM is a powerful factor 🙂
David Loseby: Jon W. Hansen the very essence of the session…
Danyal Naeem, Chartered MCIPS: Procurement isn’t just about logic—it’s about people. While data and formulas help, human behavior and having the skill to influence people is key. ProcureTech aimed at augmenting this human side will succeed.
Some great insights here.
Odinaka Okwudinma: Yes! True, people don’t always follow pure logic, and this is becoming more and more prevalent as information structures, becomes more and more personalised. Agent-based models would allow for this flexibility, adapting a bit more to real-world rather then relying on static rational rules. I would imagine incorporating both traditional and behavioural approaches for a better outcome. Good insights here.
Takeaway Question: Does your procurement/ProcureTech strategy recognize and lead with the human element (agent-based), or the (equation-based) traditional, technology first approach.
“When organizations make the mistake of leading with technology, they are bending their people and processes around an equation-based model approach in which the tech is the driver for success.
When you lead with people and process understanding – an agent-based model, technology moves from a functional driver to a problem-solving tool that streamlines and delivers efficiencies and tangible results.”
One Of The Suite 6
Shaun Syversten is the CEO of ConvergentIS. The company – which consists of many SAP alumni are “Building the #1 add-on for SAP intake & orchestration to pay.” They are one of my six solution providers – on whom I will focus in 2025.
In 2025, the focus of practitioners must shift to the expertise of the people behind the technology and which of the two categories – AI operating system or ProcureTech front-end solutions their offering falls. ConvergentIS is an AI operating system provider.
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Procurement Insights
Procurement Strategy And The Human Element
Posted on October 21, 2024
0
EDITOR’S NOTE: The following is the discussion stream resulting from a thought-provoking interview between Shaun Syversten and David Loseby which illustrates perfectly why the agent-based model is critical to ProcureTech initiative success.
Shaun Syversten: “Economics, unfortunately, as originally conceived” – “many others probably before”
How much do you rely on logic when making decisions in procurement?
Traditional economics assumes rationality, but behavioral economics challenges this view.
Professor David Loseby MCIOB Chtr’d FAPM FCMI FCIPS Chtr’d FRSA MIoD MICW explains that the fusion of behavioral science and procurement is key to balancing systems and tools with human behavior.
By recognizing over 200 cognitive biases, personality traits, and heuristics, we can better understand how individuals interpret and make decisions.
Are you accounting for the human element in your procurement strategies?
Jon Hansen: Traditional economics versus behavioral econimics is the equivalent of using an equation-based development and implementation model for ProcureTech instead of and agent-based development and implementation model.
People do not solely adapt or respond to logic, so logic must also adapt and respond to people.
Thoughts?
Erwin Scholther: Great point, Jon. I completely agree that the shift from a purely equation-based model to an agent-based one reflects a more realistic approach to how we operate in procurement. In fact, just as you said, people aren’t strictly rational, and procurement decisions often involve more than just logical analysis—human behavior, biases, and emotions inevitably play a role.
Procurement technologies must evolve to accommodate this reality, recognizing that systems need to adapt to the complexities of human behavior, not just data-driven formulas. Balancing behavioral insights with logical processes could be the key to more effective, resilient strategies. It’s definitely a reminder to factor in the human element when implementing ProcureTech solutions.
Thanks for sharing your perspective—always good to exchange ideas on this!
Shaun Syversten: WIIFM is a powerful factor 🙂
David Loseby: Jon W. Hansen the very essence of the session…
Danyal Naeem, Chartered MCIPS: Procurement isn’t just about logic—it’s about people. While data and formulas help, human behavior and having the skill to influence people is key. ProcureTech aimed at augmenting this human side will succeed.
Some great insights here.
Odinaka Okwudinma: Yes! True, people don’t always follow pure logic, and this is becoming more and more prevalent as information structures, becomes more and more personalised. Agent-based models would allow for this flexibility, adapting a bit more to real-world rather then relying on static rational rules. I would imagine incorporating both traditional and behavioural approaches for a better outcome. Good insights here.
Takeaway Question: Does your procurement/ProcureTech strategy recognize and lead with the human element (agent-based), or the (equation-based) traditional, technology first approach.
“When organizations make the mistake of leading with technology, they are bending their people and processes around an equation-based model approach in which the tech is the driver for success.
When you lead with people and process understanding – an agent-based model, technology moves from a functional driver to a problem-solving tool that streamlines and delivers efficiencies and tangible results.”
One Of The Suite 6
Shaun Syversten is the CEO of ConvergentIS. The company – which consists of many SAP alumni are “Building the #1 add-on for SAP intake & orchestration to pay.” They are one of my six solution providers – on whom I will focus in 2025.
In 2025, the focus of practitioners must shift to the expertise of the people behind the technology and which of the two categories – AI operating system or ProcureTech front-end solutions their offering falls. ConvergentIS is an AI operating system provider.
30
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