Iyad Aldalooj

Founded in 2020 by Iyad Aldalooj, Majid Aldalooj and Mohamad Ibrahim, Penny Software is a B2B procurement platform that tailors to the needs of its users.

The cloud-based source-to-pay (S2P) solution is a modular system that is quick and easy to implement. The solution helps organisations to digitise and manage the entire procurement cycle, allowing professionals to track procurement in full, extract reports, and conduct analysis.

Penny is dedicated to providing efficiency through innovations and empowering organisations around the world to make operations easy and consolidate spending needs into one intelligent system.

CEO and Co-Founder of the company, Iyad Aldalooj, sat down with Procurement Magazine to discuss the inspiration behind its creation, why digital procurement is vital in today’s landscape and how it will evolve over the coming years. 

Can you share the story behind the founding of Penny Software and what inspired you to start this company?

Penny Software was established with the inspiration to build a world-class software brand that addresses significant and meaningful problems. Before co-founding Penny, I served as a General Manager at Careem, joining during its early days in Saudi Arabia. In 2020, Careem was acquired by Uber for over $3 billion USD. This exit was a major milestone in the regional startup ecosystem and it inspired me to embark on the next mission.

Our aspiration to solve a major problem led us to focus on procurement. Admittedly, the decision to target procurement was somewhat biassed. Our co-founder, Majid, has a strong background in procurement and had already established a procurement-as-a-service company. Through conducting gap analyses and assessments in this space, we built conviction that procurement was lagging behind other business verticals in terms of digitization. Procurement is the backbone of every organisation, and improving the efficiency of procurement processes and decision-making through artificial intelligence and digitization became a mission we are passionate about.

Our goal at Penny Software is to elevate procurement to new heights by leveraging advanced technology to streamline processes, enhance decision-making, and ultimately drive significant value for organisations globally.

Why do you believe digital procurement is crucial for modern businesses?

I believe no proper governance can be achieved without procurement governance. Digital procurement provides real-time insights into spending patterns and supplier performance, enabling businesses to make data-driven decisions that optimise procurement strategies and strengthen supplier relationships. This transparency and control over procurement activities are essential in today's fast-paced business environment, where agility and responsiveness are key to maintaining a competitive edge.

Furthermore, digital procurement facilitates compliance with regulatory requirements and industry standards. It ensures that businesses adhere to governance protocols while fostering a more sustainable and ethical supply chain. By centralising procurement data and documentation in digital repositories, businesses can also improve audit readiness and mitigate risks associated with supplier relationships. Ultimately, digital procurement not only transforms how businesses procure goods and services but also positions them to adapt quickly to market changes, scale operations efficiently, and drive sustainable growth in an increasingly digital economy.

What specific problems does Penny Software solve for its users compared to traditional procurement methods?

Penny Software addresses several critical issues inherent in traditional procurement methods through its modular, AI-driven source-to-pay platform. One primary advantage is the focus on upstream procurement processes, which are often absent in standard ERP systems. Traditional methods can be cumbersome and time-consuming, lacking automation and real-time data insights. Penny Software automates the entire RFX management process, from gathering and comparing quotations to analysing and benchmarking. This automation not only speeds up the procurement cycle but also enhances accuracy and efficiency, allowing procurement professionals to make data-driven decisions with the support of AI-driven insights.

Another significant problem Penny Software solves is the challenge of user adoption, a common barrier in digital transformation efforts. Traditional procurement systems often suffer from poor user experience, leading to resistance from end-users. Penny Software prioritises a delightful user experience by consumerizing the enterprise application, making it intuitive and easy to use. This focus on user-friendly design helps ensure higher adoption rates among end-users, thereby maximising the effectiveness and ROI of the digital procurement transformation. Additionally, the quick implementation process and compatibility with large organisations' complex procurement needs make Penny Software a practical and scalable solution compared to traditional methods.

How do you prioritise customer feedback and incorporate it into your product development?

Incorporating customer feedback directly into product development is a crucial process at Penny Software, driven by our commitment to delivering a delightful user experience. This commitment is evident in our organisational structure. Unconventionally, the Customer Success function reports to the Chief Technology Officer (CTO) and is integrated within the tech team. This strategic decision ensures that customer feedback is directly related to engineering and implementation teams.

To facilitate this, we have dedicated Customer Success Managers who maintain close relationships with our customers, ensuring their voices are heard and their needs are met. Additionally, we employ advanced user experience analytics software to evaluate how our product is used, allowing us to continually enhance the user experience based on real data.

This approach allows us to stay responsive to our users' needs, fostering a continuous improvement cycle that aligns product development with customer satisfaction.

How has the adoption of digital procurement evolved over the past few years, and where do you see it heading?

The adoption of digital procurement has evolved significantly over the past few years. Today, the awareness of ensuring proper procurement governance through digitization is comparable to the adoption of CRM systems for sales teams 15 years ago. It's still nascent but rapidly growing. As technology advances, businesses increasingly recognize the strategic value of digital procurement, leading to notable growth in its adoption. I see this trend continuing, with digital procurement becoming an essential component of modern business operations.

What is the long-term vision for Penny Software, and how do you see the company evolving in the next five years?

The vision statement of Penny Software is to "build a world-class software brand from the region to the world." This vision profoundly aligns with our ambitions and passions. Achieving this goal requires an unwavering commitment to quality and customer satisfaction. We take immense pride in having clients who act as ambassadors for our brand, reflecting the excellence of our product and service.

Our current focus is on developing an outstanding product and ensuring a customer-centric approach. Today, we serve leading brands globally, with a user base of over 6,000 business users across more than 70 countries. Our vision and commitment are clear: to establish Penny Software as the leading brand in procurement technology worldwide.

We firmly believe that with a relentless focus on quality, innovation, and customer satisfaction, we can achieve this ambitious goal and make a significant impact in the world of procurement technology.

To read the full story in the magazine click HERE

****** 

Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain 2024 & Sustainability LIVE 2024

******
Procurement Magazine is a BizClik brand.