Benchmarking from the Aberdeen Group’s 2010 “Effective e-Procurement” found that on average, 16% of all transactions that start in the e-Procurement system actually get completed outside the system. This implies that even though the users intended to use the e-procurement system, they eventually opted out and continued with their transaction elsewhere.

This brings us to the question, why do majority of the Procure to Pay initiatives fail when it comes to the metric of user adoption rate?

This can be attributed to lack of usability or being user unfriendly. Despite the resounding support for mandatory system usage, most organizations are still very concerned about making the systems more user-friendly. Consider that the same survey respondents said that “Improved Ease of Use” was the top area in which they’d like to make improvements to their current e-Procurement system.

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Even though organizations make it mandatory to use e-procurement systems, the user experience of the system is still very important. A mandate usually works only up-to a certain extent. Frequent users would eventually adjust (for the lack of better option) while infrequent users would find a way out of the system to get their work done.

The major reason for non compliance as pointed out by Spend Matters is “malfeasance isn’t usually the root cause of non-compliance, rather the inability of procurement (and IT) to create an environment where it’s very easy to do the right thing and not so easy to do the ‘wrong’ thing.”

Therefore it is important for organizations to ensure the system offers smooth, easy and user friendly interface (like amazon or any other such shopping portal) to make the P2P initiative a success.

In the next blog post we will talk about how we can increase the adoption rate for P2P systems.