EDITOR’S NOTE: Today’s short post was inspired by a Kelly Barner post on AOP titled “When Getting it ‘Wrong’ Makes You Right.”
In this week’s Art of Supply, I look at the practice of ‘herding’ as called out by statistician and FiveThirtyEight founder Nate Silver – less for what it tells us about political polling, and more for what it reveals about the human desire NOT to stand out from the crowd in an increasingly data driven world. – Kelly Barney
MY COMMENT
Here is something to consider regarding herding that is closer to home, e.g., procurement and ProcureTech.
Ask ChatGPT the following question, and then ask about its impact on the rush to adopt the “New AI Technology” – Do analyst companies and consulting firms herd?
“While herding behavior is prevalent in both analyst companies and consulting firms, firms that embrace independent, evidence-based thinking and client-focused approaches can differentiate themselves and deliver greater value. Clients should remain critical of overly homogenized recommendations and seek tailored, innovative solutions.”
Impact of Herding
- Positive Effects:
- Creates consistency in industry standards and practices.
- Accelerates adoption of proven innovations.
- Negative Effects:
- Suppresses originality and critical thinking.
- Risks overhyping trends that may not deliver value.
- Leads to “one-size-fits-all” solutions that may not meet specific organizational needs.
CLOSING QUESTION
What impact did a “herding” mentality have on the adoption of GenAI-based ProcureTech?
30
Procurement Insights
Do analyst companies and consulting firms herd?
Posted on December 6, 2024
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EDITOR’S NOTE: Today’s short post was inspired by a Kelly Barner post on AOP titled “When Getting it ‘Wrong’ Makes You Right.”
In this week’s Art of Supply, I look at the practice of ‘herding’ as called out by statistician and FiveThirtyEight founder Nate Silver – less for what it tells us about political polling, and more for what it reveals about the human desire NOT to stand out from the crowd in an increasingly data driven world. – Kelly Barney
MY COMMENT
Here is something to consider regarding herding that is closer to home, e.g., procurement and ProcureTech.
Ask ChatGPT the following question, and then ask about its impact on the rush to adopt the “New AI Technology” – Do analyst companies and consulting firms herd?
“While herding behavior is prevalent in both analyst companies and consulting firms, firms that embrace independent, evidence-based thinking and client-focused approaches can differentiate themselves and deliver greater value. Clients should remain critical of overly homogenized recommendations and seek tailored, innovative solutions.”
Impact of Herding
CLOSING QUESTION
What impact did a “herding” mentality have on the adoption of GenAI-based ProcureTech?
30
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