Large Image With Sidebar

The reason we founded Tradeshift goes all the way back to a very specific moment in 2005. At that time I was a student in the policy department of the Danish Ministry of Science, IT and Innovation. I was reading about a new law in the making and I could not believe what it said. The government was about to deploy a combined scanning and electronic invoicing solution for their 200,000 suppliers. That was not the problem. The problem was they had picked solutions that cost suppliers on average €2 per invoice. I was stunned. Who would pay more to send something electronically than on paper?

Calling it an idiot’s guide is fairly safe. I’m unlikely to offend anyone. The fact that you’re reading this confirms you’re not an idiot. There has been some pretty high profile research into the power and effectiveness of social media. McKinsey estimate that it’s worth $1.3 trillion in terms of the extra value that the global economy can extract through it’s use. And we do see it used effectively. The B2C use case of viral marketing campaigns and the damage limitation campaigns (O2 deserves a medal for their recent success in managing the fallout from a network outage using twitter and, importantly, a sense of humour.) I spoke to Renette Youssef, CMO at Tradeshift recently about how they use social media as a powerful marketing tool. (You can listen to the podcast here). But how do individual professionals in procurement or finance use social media in a professional context? We see celebrities using social media all the time but as professionals, what value is there in sharing with our followers what we had for breakfast? And is it really a good idea to share pictures of your Friday night out?

We live in transitional times. It was 50 years ago that Thomas Kuhn published “The Structure of Scientific Revolutions” which introduced the world to the idea of the “Paradigm Shift” – a term since misappropriated and misused in many walks of life including business. Kuhn was referring to those moments in scientific understanding when the whole frame of reference shifts and the world is reinterpreted in a completely different way. The usual examples are the shifts in understanding brought about by Galileo, Newton, Darwin, Einstein and others.

We’ve always seen the banks as being the facilitators of commerce. Depending on your point of view, they’re an invaluable support to business or a necessary evil. Without a properly regulated banking industry, business in the modern world couldn’t function. Or could it? There are changes happening that could make us question what role the banks play and in some industries and supply chains, there could be a better way.