Disruptive Transformation of Enterprise Supply Chain Performance: Strategic Business Networks to Improve Business Value

Steve Elliot, University of Sydney Business School, Sydney, Australia
Martin McCann, The Digital Institute
Kory Manley, Ariba, Inc.


In a dynamically changing world, business must transform to survive. Although the necessity for change may be apparent, how to change is not. A useful approach can be to learn how successful pioneers transform a core business function such as procurement: how organisations acquire assets and inputs including facilities, materials and people. Traditionally, the business objective for procurement has been to increase availability of purchased materials and to reduce costs. Subsequently, the objective became more tactical. Leading procurement practice today is disruptive; beyond cost to creating value. The strategy for market leaders has also transformed; from competition to collaboration. Technology-enabled procurement networks are now key to driving business disruption globally. Through a rigorous field study of two world-class pioneering corporations, this paper explores how digital disruption is transforming procurement functions. The impact on Enterprise Supply Chains, contributions and implications for current IS theory and practice are discussed.