ProcureNode News 05/11/2021

We’re getting closer to the production phase!

A lot has happened during the last months. Our product development has been proceeding well, and the MVP version of the application is almost ready for completion. The production plan is forming and we’re evaluating different technological architectures for producing the first MVP version.

We have been working on spend analysis projects for a few companies now. Outlook in that area looks positive and promising. We have gained two customers, with whom we’ve signed contracts. Unfortunately, we can’t provide more details on the assignments as non-disclosure agreements and clauses are involved. If all goes well, I’m hoping to be able to publish some information regarding the ongoing projects early next year.

During MVP development, we came up with a method suitable for analyzing souring and procurement processes, including indirect procurement processes. The method is based on Eliyahu M. Goldratt’s Theory of Constraints (TOC) -management paradigm. TOC Thinking Processes are integrated problem-solving tools based on clear causality, cause-and-effect logic.

The thinking processes are methods to enable the focused improvement of any cognitive system. They are relatively close to the typical development project model, but there are a few critical differences.

The thinking processes are designed to answer questions, such as:

  1. What to change?
  2. What to change it into?
  3. How to cause the change?
  4. Why change?
  5. How to maintain the proceess of ongoing improvement?

TOC Thinking Processes focuses on identifying barriers and constraints that prevent the project from reaching its targets and objectives. This works for us perfectly, as we’re interested in finding similar constraints and barriers from different organizations and companies. This delivers a clear focus for product development and enables as well as supports scalability in the future.

Additionally, the method can be used as a tool for procurement and sourcing development. Systematic search, identification, and elimination of obstacles and constraints from the system lead to continuous improvement. This is the very essence of Lean philosophy.

TOC Thinking Processes support our company’s operations in many areas. It can be used to deliver turnover while the product is still unfinished. It enables us to identify similar challenges in the procurement of potential customers, regardless of industry. Also, we get important information for developing new functionalities.

There are two approaches to produce ProcureNode application:

  1. build a low-cost prototype that can be tested on the market, but may not scale sufficiently
  2. make a bigger investment to build a durable and robust product from the start, which scalability is reliable

The advantage of the first option is the low price and fast production. On the other hand, its commercial exploitation is limited and it is likely that it will be rebuilt completely at a later stage.

The latter involves a higher financial risk, but once the product meets the need and is well designed and focused on the problem, it can be immediately scaled. It allows quick access to the growth path.

Our current production plan is something between options 1 and 2. It requires an even more detailed review, but preliminary studies are promising. Once we can be sure of the scalability and reliability of the technological framework, we can start the production.

In addition to the product itself, we need to consider enhancing the ProcureNode brand. We will renew the company logo and color scheme. However, this is not yet the main priority. The focus is on the production of MVP and the successful implementation of ongoing customer projects. It’s also important to keep presenting the solution to potential future customers to get feedback and ideas for development.

Awesome and successful autumn for all!

Best wishes,

ProcureNode Oy


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