Thinkers360

Marcell Vollmer

Chief Digital Officer at SAP SE

Frankfurt (Main), Germany

13497 Followers

Marcell Vollmer is Chief Digital Officer for SAP Ariba and is responsible defining and driving Digital Transformation for customers of SAP Ariba globally. A thought leader in procurement, supply chain, finance and shared services, Marcell’s expertise lies in defining digital transformation strategy and to make Run Simple a reality for global customers and consumers by delivering high cost and additional procurement savings.
Previously, he was Chief Operating Officer for SAP Ariba where he successfully developed and led global business development, procurement, go to market, sales operations, and enablement. And prior to that Marcell was Chief Procurement Officer of SAP and was responsible for the reorganization and process optimization for and end-to-end source-to-pay organization. Since joining SAP in 2005 he has held various leadership roles involving restructuring, improving project efficiency and execution of global programs in finance, procurement, sales, human resources and post-merger integrations.

Marcell VollmerPoints
Academic5
Author177
Influencer127
Speaker5
Entrepreneur10
Total324

Points based upon Thinkers360 patent-pending algorithm.

Thought Leader Profile

Portfolio Mix

Company Information

Company Type: Company

Areas of Expertise

AI 34.62
Digital Transformation 42.13
Supply Chain 87.46
Procurement 71.25
Social 32.74
Innovation 32.99
IoT 32.76
Sustainability 33.41
Future of Work 55.93
Management 36.36
Big Data 32.92
Blockchain 33.18
Leadership 33.42
Predictive Analytics 31.06

Industry Experience

Publications

63 Article/Blogs
#DigitalTransformation – Next stop…the future
LinkedIn
November 06, 2018
Procurement organizations are on the brink of change – and the future is bright. In the coming years, they will automate most transactional activities, freeing up resources to focus on strategic efforts that drive value to the business. As a result, the cost to run the function will decrease, while the actual value derived from it will grow.

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Tags: Digital Transformation, Innovation, Procurement

Men vs. Machinery – How to ensure ethical AI?
Marcell Vollmer
September 13, 2018
AI is a powerful tool that can be used to construct more intelligent ways of operating. But it can also be used to act in ethical ways that not only lead to doing well, but doing good. To making an impact on our businesses AND the world around us. It’s an incredible opportunity. And as wielders of the power of AI, a responsibility....

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Tags: Digital Transformation

Digital Transformation Ensures Tight Integration between Procurement and the Supply Chain
LinkedIn
August 27, 2018
In a world of disruptions, digitization, shorter innovation cycles and individualized products, companies are focusing on value creation, end-users’ experience and driving digital transformation throughout the entire organization. Supply chain management (SCM) spans the range of processes involving customer demand, sourcing, production and fulfillment with an eye toward creating value by building a competitive infrastructure, leveraging worldwide logistics, matching supply with demand and measuring performance. Procurement entails providing all goods and services needed at every step of the supply chain, including manufacturing.

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Tags: Digital Transformation

Digital Transformation Ensures Tight Integration between Procurement and the Supply Chain
Marcell Vollmer
August 27, 2018
In a world of disruptions, digitization, shorter innovation cycles and individualized products, companies are focusing on value creation, end-users’ experience and driving digital transformation throughout the entire organization. Supply chain management (SCM) spans the range of processes involving customer demand, sourcing, production and fulfillment with an eye toward creating value by building a competitive infrastructure, leveraging worldwide logistics, matching supply with demand and measuring performance. Procurement entails providing all goods and services needed at every step of the supply chain, including manufacturing.

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Tags: Digital Transformation, Procurement, Supply Chain

What is Industry 5.0?
Marcell Vollmer
August 23, 2018
Most companies are still trying to get into the definition and realization of Industry 4.0, but there is already talk about the next industrial revolution: Industry 5.0.

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Tags: Procurement

Predictive Procurement – What are we waiting for?
Marcell Vollmer
August 21, 2018
Predictive analytics is on everyone's lips. However, when you look at the actual usage at companies, you will realize that it does not go beyond a common buzzword. So why do businesses struggle with the actual application of predictive analytics?

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Tags: Procurement, Predictive Analytics

How to Future-Proof Supply Chains
Marcell Vollmer
August 01, 2018
With today's technology, there's no excuse for not innovating and envisioning how to make things better. Innovation knows many different drivers. However, where technology meets innovation is the birthplace of new ideas.

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Tags: AI, Digital Transformation, Supply Chain

What is 'Procurement with Purpose'?
Marcell Vollmer
July 29, 2018
“Purpose” is no longer something that’s nice to have for any business; it has become a must-have strategic imperative that should be high on every company’s agenda if they want to be perceived as relevant, admired, and innovative by their customers, employees, investors, partners, communities, and public entities. Consumers demanding full transparency on the provenance of goods and services they are buying.

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Tags: Digital Transformation, Social, Sustainability, Procurement

Painting the picture of intelligent procurement
Marcell Vollmer
July 02, 2018
For those of you who have had the fortune of visiting Istanbul’s grand bazaar, you are familiar with its buzz and excitement. For those that haven’t, let me paint a picture. Imagine walking through gates into a hive of excitement, exchange, and commerce.

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Tags: AI, Innovation, Procurement

Aided by digital transformation, the Chief Procurement Officer stands poised to become the Chief Purpose Officer
Marcell Vollmer
June 18, 2018
How does a chief procurement officer measure success?

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Tags: AI, Digital Transformation, Procurement

Procurement Goes Big with Data
Marcell Vollmer
June 13, 2018

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Tags: Big Data, Procurement

Procurement Goes Big with Data
LinkedIn
June 13, 2018
Information is the new global currency. It promises to reshape procurement and the way that buying and selling gets done.

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Tags: Big Data, Procurement

Procurement’s AI Evolution Is More Human Than We Think
LinkedIn
June 12, 2018
It seems that there is always a study or analyst op-ed that warns us of the jobs that will be overtaken by artificial intelligence (AI). Oxford University predicted that nearly half of all positions will likely be automated by 2033.

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Tags: Digital Transformation, Procurement

Artificial intelligence and Machine Learning Change the Game for Procurement
Marcell Vollmer
June 11, 2018

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Tags: AI, Procurement

Artificial intelligence and Machine Learning Change the Game for Procurement
LinkedIn
June 11, 2018
Artificial intelligence, machine learning and deep learning are everywhere, and they are ushering in momentous change, altering the way we shop for and consume goods and services in our personal lives.

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Tags: Procurement

When Ignorance becomes a Risk
Marcell Vollmer
June 02, 2018

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Tags: Innovation, Procurement

When Ignorance becomes a Risk
LinkedIn
June 02, 2018
Companies today are exposed to an environment that is characterized by increasing complexity and thus by a clear risk reduction. Product, market and technology cycles are becoming shorter and shorter, resulting in significantly reduced time-to-market times and high pressure on return on investment (ROI). Procurement plays a decisive role in the generation of competitive advantages, and it is also confronted with many different risks.

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Tags: Procurement

Will Procurement and Digital Manufacturing become one?
Marcell Vollmer
May 24, 2018

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Tags: Procurement, Supply Chain

Will Procurement and Digital Manufacturing become one?
LinkedIn
May 24, 2018
Can a cracked smartphone shed light on the convergence of procurement networks and digital manufacturing?

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Tags: Procurement

Business Happens When Supply meets Demand - How will the future of Buying look like?
Marcell Vollmer
May 06, 2018

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Tags: Procurement, Supply Chain

Business Happens When Supply meets Demand - How will the future of Buying look like?
LinkedIn
May 06, 2018
Wikipedia describes business as any activity of making one's living or making money by producing or buying and selling goods or services. It could be a company, corporation, partnership or any other formal entity, ranging from a street peddler to Apple, Coco-Cola or popular brands of the sharing economy.

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Tags: Procurement

What is a “Digital Twin” and how can Business Network collaboration accelerate?
Marcell Vollmer
May 01, 2018

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Tags: Big Data, IoT, Supply Chain

What is a “Digital Twin” and how can Business Network collaboration accelerate?
LinkedIn
May 01, 2018
The concept of a Digital Twin moves manufacturers and operators closer to the ultimate goal of
- selling outcomes(results)
- instead of products (machines)

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Tags: Digital Transformation, Procurement

How to deliver value with Artificial Intelligence and Machine Learning - watch this video
LinkedIn
April 19, 2018
Watch this video and get a real use case how machine learning (ML) and artificial intelligence (AI) work. Have you ever asked yourself, how to measure marketing spend and how often your ads are really recognized by people watching TV?

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Tags: AI, Digital Transformation

CPO Survey 2018 - Digital Procurement Takes Flight
LinkedIn
April 10, 2018
For the last 20 years, procurement has slowly been transforming from a tactical, manual process to a strategic digital function. But things are about to take off. According to the results of a new global survey, leading procurement organizations see digitization as the future.

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Tags: Procurement

How to fight Human Trafficking?
LinkedIn
April 09, 2018
What’s the difference between a wildly successful business that builds momentum and grows year over year or one that fizzles out within a year or two? If you say lack of profits or financial funding, you only understand a tiny part of the answer.

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Tags: Social, Supply Chain

How to succeed with digital transformation of procurement and the supply chain?
LinkedIn
April 07, 2018
From cloud computing and robotics to drones and self-driving cars, it seems as though the entire business world has embraced digital technologies.

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Tags: Digital Transformation, Supply Chain, Procurement

How to make it simple to explain AI, ML, DL and Data Science?
LinkedIn
March 24, 2018
Even the most complex topics can be segregated in easy to consume buckets. Let me try to explain them and let's start with the evolution:

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Tags: AI, Digital Transformation

Artificial Intelligence: What’s Now and Next in IoT-Driven Supply Chain Innovation
LinkedIn
March 22, 2018
Like most people, coffee is one of the most important rituals in my morning routine. There’s something about the aroma and taste that kick-starts my ability to have a great day. So imagine my surprise when I found out that a favorite coffee shop was closed before I had to jump on an early-morning flight home.

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Tags: AI, Innovation, Supply Chain

What does the future hold for technology? Some movies have been surprisingly accurate!
LinkedIn
March 16, 2018
Adjusting current business models to capitalize on trends in technology is essential for any company to survive. Many of today’s market leaders, from Google and Apple to eBay and Alibaba, deliver technologies that could only have been dreamt of years ago.

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Tags: Digital Transformation

Will there be a procurement function in 2025?
LinkedIn
March 11, 2018
There are those who believe that robots, artificial intelligence and machine learning will eventually replace it. I am personally not among them. Commerce is, after all, a social function driven by business partners. Technology will make business more personal, contextual, intelligent and efficient in the years ahead.

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Tags: Digital Transformation, Procurement

Going digital? Key factors to consider when evaluating software solutions
LinkedIn
February 26, 2018
As previously discrete procurement activities converge onto unified, cloud-based networks — tying together sourcing, purchasing, payment and contract-management functions — many professionals in the field are no longer asking when or whether to embrace such systems, but which ones?

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Tags: Digital Transformation, Procurement

How will Blockchain impact Procurement and Supply Chain?
LinkedIn
February 22, 2018
Blockchain is a very fast emerging technology mainly used in the financial services industry and mostly known for Bitcoins or crypto currencies. Blockchain might disrupt entire industry as well as core processes in companies, incl. finance, procurement and supply chain.

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Tags: Blockchain, Supply Chain, Procurement

Will Machine Learning Save Procurement Millions a Year?
LinkedIn
February 14, 2018
When it comes to automating processes, procurement organizations are no slouches. Long ago, chief procurement officers automated administration, payroll processing, material-resource needs calculation, invoice generation, and material flow tracking.

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Tags: Digital Transformation, Procurement

Procurement 2018 in a Word: Intelligent
LinkedIn
November 10, 2017
What might change for Procurement and Supply Chain in 2018? After attending the latest procurement conferences, reading reports from advisory and consulting companies as well as speaking to leading analysts some trends can be summarized with Procurement is going digital, getting smarter and driving change.

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Tags: Digital Transformation, Procurement

Big Data in Procurement: Large amounts of data bring great potential for procurement & supply chain
LinkedIn
October 30, 2017
After years of technological innovation and the massive IT investment in recent years, businesses are now sitting on a mountain of data. This unmanageable mass of unstructured data on production, marketing, sales, HR, finance and operations, as well as many other internal processes, is complemented by transaction data for suppliers, customers and partners

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Tags: Big Data, Digital Transformation, Procurement

The Journey to Value for Procurement and Supply Chain
LinkedIn
October 08, 2017
Earning – indeed deserving – a seat at the strategy table has long been the cornerstone of business value creation. Procurement is at its best when it is brought in early and can help drive markets to meet demand. Relevance requires presence, and presence demands a unique contribution.

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Tags: Supply Chain, Procurement

Big Data and Procurement
LinkedIn
September 04, 2017
The amount of data is exploding - approx. 90% of the data that exists in the world today was created in the last two years alone. Procurement systems capture a vast amount of data, including sourcing information, weather reports, manufacturing and delivery data, supplier data, purchasing data, catalogue data, and more.

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Tags: Big Data, Procurement

The digital transformation journey of Procurement – one prediction?
LinkedIn
July 14, 2017
Digital transformation remains a top priority for C-level executives, but more and more also for all lines of businesses, like procurement. How will digitalization impact the procurement function and how to adapt technology trends, such as Artificial Intelligence and Machine Learning, Internet of Things/Industry 4.0 and Big Data with Predicative Analytics for business networks?

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Tags: Digital Transformation, Procurement

What is the Digital Economy?
LinkedIn
July 08, 2017
What is the impact for Procurement and Supply Chain in the Digital World?
Top disruptive digital trends in technology
hyper-connectivity,
super computing,
cloud computing,

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Tags: Digital Transformation, Supply Chain, Procurement

Robotic Process Automation (RPA): Procurement’s Next Big Thing or Next Big Hype?
LinkedIn
May 25, 2017
There are two schools of thought when it comes to robots and automation in the workplace: Some people warn of soaring unemployment rates, and others foresee a future workforce of more productive, engaged, and motivated talent.

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Tags: Digital Transformation, Procurement

The Future of Procurement in a Word: Intelligent
LinkedIn
May 18, 2017
The digitization of business is taking hold. From machine learning, artificial intelligence (AI) and the Internet of Things (IoT) to blockchain, cloud and networks, digital technologies are opening the door to new, more efficient and intelligent ways of operating. And nowhere is this more evident than in procurement.

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Tags: Digital Transformation, Procurement

Predicting the Future with Procurement - Conclusion of the CPO Survey 2017
LinkedIn
April 19, 2017
The world has gone digital. We are more connected and do things in faster, more efficient, intelligent and productive ways than ever. And not just in our personal lives. Digitalization is presenting new opportunities for businesses to predict and respond more effectively to customer and market demands

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Tags: Digital Transformation, Procurement

Procurement Goes Digital. Driven by new technologies, insights and talent, the function becomes more efficient and strategic than ever
LinkedIn
April 11, 2017
To understand the priorities and challenges that global companies are facing on their path to become digital, SAP Ariba, in cooperation with the University of Applied Science Würzburg/Schweinfurt, conducted a global survey amongst 650 leaders in procurement, finance and supply chain functions from organisations in North America and Europe between December 2016 and February 2017

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Tags: Digital Transformation, Procurement

Predicting the Future with Procurement
LinkedIn
April 10, 2017
For years, companies have been collecting and analyzing massive amounts of information - everything from structured data on production, marketing, sales, HR, finance, facilities and operations to transaction-level data on suppliers, customers and partners. But big data is changing the game.

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Tags: Digital Transformation, Procurement

Digital Road to 2020: Why Business Networks Are More Than Technology
LinkedIn
March 02, 2017
If we reflect on the volume of changes over the last couple decades, it becomes apparent that the desire to increase business and process efficiency is a primary driver. The evolution of new technology is simply an enabler, starting with a singular approach through innovations (such as smartphones, tablets, and enterprise resource planning (ERP) systems) and later elevated into new business models realized by the likes of Uber and Airbnb.

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Tags: Digital Transformation

Procurement and Gender Diversity: Building Leadership That Matters
LinkedIn
February 23, 2017
Procurement is often viewed as a numbers game. A delicate mix of costs, vendor performance ratings, and operational efficiencies is calculated and used to meet the precise needs of the corporate strategy. However, math alone does not forge the best supplier relationships.

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Tags: Digital Transformation, Procurement, Leadership

A Real-Life Case of How will 'Internet of Things'? (IoT) change Procurement in the future?
LinkedIn
February 16, 2017
Everybody talks about how disruptive trends, such as the Internet of Things (IoT), is impacting supply chains and procurement processes. However, the real discussion is how these two areas of the business can realize new levels of efficiency with this technology.

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Tags: IoT

Are Business Networks the future?
LinkedIn
February 12, 2017
More than twenty years ago, the idea that the Internet was a viable tool for business was largely viewed as a crazy idea. 2017, few companies can imagine doing things any other way. Business Networks aren’t just connecting buyers and suppliers to collaborate around commerce, they’re actually creating it.

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Tags: Digital Transformation

Millennials Getting Into Tech - Are they woefully misunderstood?
LinkedIn
February 06, 2017
Different Strokes: Don’t Paint Millennials with a Broad Brush
“I’m just a soul whose intentions are good/Oh Lord, please don’t let me be misunderstood” - Eric Burdon & The Animals

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Tags: Digital Transformation

How prepared are your Organization for any Supply Chain Disruptions?
LinkedIn
February 01, 2017
Driven by demand for lower manufacturing costs and access to specialist capabilities and technologies, most supply-chain operations rely on a complex mix of large and small businesses.

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Tags: Digital Transformation, Supply Chain

Erfolgreiche Führung von Shared Services
LinkedIn
December 26, 2016
Ich freue mich, dass wir nach Gründung des Arbeitskreises Shared Services der Schmalenbach-Gesellschaft im Jahr 2011 nach harter Arbeit in diesem Jahr die zusammenfassende Publikation herausgeben können: "Erfolgreiche Führung von Shared Services"

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Tags: Digital Transformation

Work SMARTER in Procurement, not harder (but also much FASTER)
LinkedIn
December 21, 2016
SAP Ariba just hit a major milestone for our industry and it will definitely transform your business processes beyond anything else imaginable!

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Tags: Digital Transformation, Procurement

Procurement Without Bias: Taking Supplier Diversity Beyond A Spending Goal
LinkedIn
December 04, 2016
Supplier diversity is quickly evolving from a corporate social responsibility initiative to a strategic enabler. Increasingly, companies are realizing the competitive potential of supplier diversity programs – from greater market share among emerging customer segments and stronger stock performance to faster innovation cycles and entry into untapped markets. In fact, according to DiversityInc.’s 2016 ranking, many of the world’s largest companies – including Accenture, AT&T, and Walmart – are heavily investing in the power of minority-owned, women-owned, veteran-owned, LGBT-owned, and SBA-defined small-business vendors.

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Tags: Digital Transformation, Procurement

What does the coffee market teach us about procurement's future?
LinkedIn
November 26, 2016
Procurement has gone digital and there’s no turning back. Our digital way of life is reinventing how business is done, from operational processes to customer engagement. Look as far as the local coffee shop.

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Tags: Digital Transformation, Procurement

‘Predictive Procurement’ - How Big Data will Change the Game
LinkedIn
November 16, 2016
The act of collecting and analyzing data isn’t new for years, companies have been amassing large quantities of information - everything from structured data on production, marketing, sales, HR, finance, facilities and operations to transaction-level data on suppliers, customers and partners.

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Tags: Digital Transformation, Procurement

Business Networks: What a Difference Two Decades Makes
LinkedIn
October 24, 2016
Twenty years ago, the idea that the Internet was a viable tool for business was largely viewed as a joke. Today, few companies can imagine doing things any other way. Business networks aren’t just connecting buyers and suppliers to collaborate around commerce, they’re actually creating it.

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Tags: Digital Transformation

Future of Procurement - People are our most valuable asset
LinkedIn
September 14, 2016
A digital transformation is taking hold around the world, and new business models are transforming entire industries. Uber and Didicar, for instance, disrupting the taxi business with a totally new way of hailing rides - and now driverless cars. Airbnb is upending the accommodation industry by offering millions of beds globally.

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Tags: Digital Transformation, Procurement

The Future of Procurement – What to do today?
LinkedIn
July 25, 2016
In my first article The Future of Procurement - One Perspective I discussed how procurement goes digital and concluded that the CPO might evolve to a Chief Value Officer to create impact and drive measurable value for a company.

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Tags: Digital Transformation, Procurement

The Future of Procurement - One Perspective
LinkedIn
June 23, 2016
Disruptive trends in technology are changing the function as we know it today. Procurement is fast evolving into a more strategic and value generating function. This blog is designed to spark a lively discussion among those who are driving this transition about where things are headed.

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Tags: Digital Transformation, Procurement

EMEA Shared Services Survey in cooperation with the School of Management and Innovation (Steinbeis-University Berlin)
Marcell Vollmer
November 01, 2007

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Tags: Innovation, Management

Shared Services Organization. Future Trends: Multi-function and Automation
Vollmer, M./ Neukirchen, R./ Fischer, B.
July 01, 2007

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Tags: Innovation, IoT

Controlling Toolbox for successful Change Management
Neuenkirchen, R./ Vollmer, M.
February 01, 2007

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Tags: Innovation, Management

2 Books
Erfolgreiche Führung von Shared Services
Fischer, T. /Vollmer, M.
March 17, 2017
Herausgeber: Fischer, Thomas M., Vollmer, Marcell (Hrsg.)

Wissenschaftliche Fundierung des Themas verbunden mit hohem Praxisbezug durch die Mitwirkung von 16 Unternehmensvertretern aus dem Arbeitskreis Shared Services
Wissenschaftliche und praktische Darstellung der Wertschöpfungssysteme, des Performance-Controllings und der Geschäftsentwicklung in Shared-Service-Organisationen
Eine Vielzahl an Erfolgsbeispielen zum Thema Shared Services aus führenden deutschen Unternehmen

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Tags: Supply Chain

Die Auswirkung einer Post-Merger-Integration auf die Interaktionsbeziehung zwischen Geschäftsleitung und Betriebsrat. Eine Fallstudie am Beispiel der Integration zweier Unternehmen in einen Konzern
Marcell Vollmer
December 28, 2006
Diese Fallstudie befasst sich mit der Akquisition und anschließenden Integration von zwei Unternehmen in einen Konzern. Die empirische Grundlage der Untersuchung sind qualitative Interviews mit Betriebsratsmitgliedern und Personalverantwortlichen. Obwohl die Akteure zwei völlig unterschiedliche Verhandlungsstrategien wählten, folgten daraus keine Unterschiede im Zusammenhang mit den zentralen Entscheidungen auf Konzernebene und für den Verlauf des Integrationsprozesses. Der Autor kommt zu dem Ergebnis, dass sich kein einheitliches Verlaufsmuster der Interaktionsdynamik herauskristallisiert hat. Die Einflussmöglichkeiten der Akteure, insbesondere die der Betriebsratsmitglieder, auf die Entscheidungen der Konzernführung im Verlauf der Integrationsphase waren sehr gering.

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Tags: Supply Chain, Future of Work

3 Book Chapters
Next Generation Shared Services – Automation as a Trend
VOLLMER, M./FISCHER, B./RÖDER, S.
August 28, 2018

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Tags: Procurement, Supply Chain

Strategisches IT-Management in Förderbanken
RÖDER, S./VOLLMER, M.
August 28, 2018

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Tags: Leadership, Management

Change Management und Shared Services – Einbindung der Stakeholder
Neuenkirchen, R./ Vollmer, M.
January 01, 2008

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Tags: Innovation, Management

1 Industry Award
Digital Ambassador for SAP
SAP
October 18, 2018
Selected as 'Digital Ambassador' by SAP's Digital Transformation Office to help our customers to define and drive digital transformation strategies.

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Tags: Digital Transformation

1 Keynote
Disruptive Trends in Technology
Marcell Vollmer
April 05, 2018
Disruptive Trends in Technology

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Tags: Digital Transformation, IoT, Social

1 Media Interview
On Becoming a CPO and Procurement Transformation at SAP: An Interview with Dr. Marcell Vollmer (Part 1)
Spend Matters
March 27, 2017
At SAP Ariba LIVE last week, I had the chance to catch up with Dr. Marcell Vollmer, who, despite his degree, comes off as anything but an academic. The discussion quickly turned into an interview because I was most curious about his past role as an almost “accidental CPO” at SAP before he became the chief digital officer for SAP Ariba.

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Tags: Digital Transformation, Supply Chain, Procurement

1 Whitepaper
Procurement 2025
SAP Ariba
January 15, 2018
The golden age of procurement is upon us.

Over the next 10 years, companies will face more opportunity and
disruption than ever before. Digital transformation is already helping
companies redefine their business models, operating processes, and
work – and this trend will accelerate as powerful technologies mature.
Given that up to 65% of the value of a company’s products or services is
derived from its suppliers1, procurement will play a leading role in
enabling this transformation.

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Tags: Digital Transformation, Innovation, Procurement

1 Whitepaper
White Paper: How to build a Shared Service Center. SAP internal Paper.
Marcell Vollmer
January 01, 2006

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Tags: Supply Chain, Procurement

Blog

1 Article/Blog
How will disruptive technologies change the future?
Thinkers360
August 21, 2018
100 years ago, nearly 40% of all US jobs were in agriculture. Today, the figure is less than 2%. The same dynamic happened in manufacturing, which in the 1950s dominated the jobs, but since then has consistently dropped as a mass employer. Technology made both trends happen then, and new, disruptive technology shows no evidence of slowing down these trends now.

Digitalization is having disruptive effects on managerial, logistics and other supply chain functions. Automation in plants, artificial intelligence, connected devices in fulfilment centers, and areas like procurement, production planning and maintenance are transforming jobs. Procurement has a unique opportunity by focusing on value creating activities as automation will reduce transactional, bureaucratic tasks and free up resources.

Currently more and more operational, tactical activities are getting automated in all back office functions. The impact for source-to-pay – procurement, operational procurement, accounts payable, finance and travel & expenses – is significant and will lead to less people needed to drive the purchasing activities, finance tasks. The future procurement function will be much smaller, but more strategic, as the strategic tasks are remaining. I like the saying: The future procurement, finance function will be powered by data, but driven by people.

The CPO of the future needs to define an organization with a unique value proposition. The value contribution is and will be key, but with a smaller organization focused on the strategic tasks with category management, driving supplier innovations, highly integrated supply chain, risk management, compliance, sustainability, supplier management and analytics. As the procurement organization of the future owns the relationship with suppliers and can define standards for sustainability, CSR, diversity in the entire supply base, including the balance between global and local supplies. The focus is purpose, because consumers demand to know where the products they are buying come from.

Supply chains are the biggest source of risk and opportunity in terms of finding solutions to today’s challenges and the demand from the consumers. The procurement function of the future must align goals and actions as well as understand how to work with suppliers best to find answers to the purposeful questions that really matter.

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Tags: Digital Transformation, Sustainability, Procurement

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