Tag Archives: procurement software

Taking Intelligent Spend Analysis to a New Level

Going from data to intelligent spend analysis? Traditional tools just don’t cut it anymore. How do we get from data to tangible, valuable ideas?

Photo by Jason Dent on Unsplash

Supply chain leaders today are being asked to help contribute to business growth and promote innovation while reducing costs. That’s a lot to ask.  Managing expenditures across global organisations has become increasingly complex and involves just about everyone: especially procurement, legal, finance and operations.  

Intelligent Spend Management is about more than classifying and reviewing historical spend. It is also about compliance, governance and mitigating supplier risk, all of which are needed to make informed decisions about future purchasing strategies.

Traditional Spend Management

The main objective of spend management is to identify and exploit savings opportunities and ultimately improve the firm’s profitability. It involves collecting, collating, cleansing, maintaining, categorising, and evaluating spend data from across the enterprise.

Traditional free-standing tools that manage spend analysis, P2P, contracts and supplier relationships are not set up to provide a consolidated view across all spend categories. Often these data sets reside on systems that don’t talk to each other and provide limited information.

What is Intelligent Spend Management?

A strategic, intelligent approach to spend management allows for a unified view and better management of risks across the supply chain and harmonisation of procurement policies and processes. This approach requires all spend data to be centralised so that any analysis efforts are applied to the total organisational spend thereby providing visibility of and control over each spend category. Intelligence means learning from past actions and improving responses over time.

Supply chain leaders can exploit spend opportunities provided by this “big data” to increase their cost savings, decrease operating costs, and reduce risk. To do this they need an end-to-end platform that uses the best-suited technology and the right tools.  These resources need to be applied in such a way as to deliver reliable real-time information that can be used for decision-making. 

Using conventional tools, it is difficult to achieve these outcomes.

Machine Learning

Machine learning is an application of artificial intelligence (AI) that provides enterprise-wide systems with the ability to automatically learn and improve from experience.  Using these new approaches we can learn much from the historical volumes of spend data without human intervention.

We can answer questions related to customer profiles and their spend history, provide explanations for past actions and guide users with recommendations about future purchases.  

What can Intelligent Spend Management deliver?

Intelligent spend management has the capacity to transform any organisation’s data into information that becomes a source of ideas and plans that can be used to grow the business.  

1. Historical data tells a story  

It reveals repeating patterns about users, approvers and suppliers. It also offers insights into which types of requests should be approved automatically and which others call for human intervention. Intelligent technologies that have exposure to a holistic view of spend-related data can provide learnings to continuously improve decision-making across the source-to-pay spectrum.

2. Improved user experience 

Intelligent processes provide a real benefit to users and approvers alike by ensuring compliance with all corporate policies and regulations while cutting down on waiting times and streamlining document approval processes. Supply chain staff and end-users need easy-to-access, reliable, real-time information on supplier performance to make optimal buying decisions.

3. Better market intelligence

To manage spend efficiently and identify new sources of supply, businesses need to interact with data coming from external sources such as from suppliers, government and business associations as well as from internal sources. This includes accumulating industry and economic intelligence automatically from third parties and using it in conjunction with their historical spend data.

“As enterprises embrace an increasing number of partners to compete globally and as value chains grow longer and more complex, they need intelligent platforms not only to extract the fullest value from data but to extend its broadest capabilities.”

Patrick McCarthy, Senior Vice President and General Manager of SAP Ariba and SAP Fieldglass.

Predictive spend analysis in supply chain is still fairly new, but it is becoming increasingly essential in large organisations that have already been exposed to spend analysis tools,  supplier segmentation and relationship management.

An enterprise-wide system that can provide a unified view of spending that brings spend data together from across all sources and categories allows users to make smarter, faster spending decisions. 

Achieving this requires investment in the right IT infrastructure and systems which will really put your spend data to work.

Innovations like AI, machine learning, IoT and blockchain are reshaping entire industries, but this is an opportunity for procurement, not anything to fear. Join Pat McCarthy at the Big Ideas Summit Chicago 2019 tomorrow (Wednesday 18th September) to find out why. Register as a Digital Delegate by clicking here.

How Procurement Professionals Can Look Like Rockstars

Will procurement ever achieve ‘rockstar’ status within an organisation? It’s an idea that hasn’t gained much traction in the past. But help may be at hand from a new source.

Muhammad suryanto/ Shutterstock

Despite the profession’s best efforts, the terms ‘procurement’ and ‘rockstar’ are uneasy bedfellows in a sentence. When you picture a rockstar – Keith Richards, Dave Grohl, Joan Jett, Pete Townshend – they are a free spirit; perhaps anarchic, but certainly someone who lives life by their own rules. Does this sound like procurement to you? No, me neither.

Even now, after all the efforts to make procurement a strategic partner, moving from transactional purchasing to strategic buying or strategic sourcing, the image of procurement remains the same. A profession that’s very traditional, process driven, compliant (not that this is a bad thing) and just maybe a little … boring.

Although some progress has been made, rockstar status is still a ways away. While there are huge, global names that have come from the profession, the name recognition is still an issue. You know Sheryl Sandberg, Bill Gates and Tim Cook, but do you know who their CPOs are?

Have you heard of Bo Andersson, formerly GM’s ‘Mr Purchasing’? How about Jennifer Moceri, CPO of global drinks giant, Diageo? Without wider recognition of what these rockstars have achieved, very few people outside the profession will be able to understand much about what procurement can deliver.

Collective rather than Individual?

The profession has spent so long trying to create ‘rockstar’ CPOs and leaders with global profiles that it may have lost sight of the true aim – to elevate procurement as a whole. When it comes to being a ‘rockstar’, the one thing that nearly all the greats have in common is a group by their side or backing them up. And it’s in this power of the collective that procurement’s ultimate success may lie.

For the collective profession it’s about understanding what the business needs, aligning a procurement strategy with the overall business strategy, and then delivering on this. Procurement will be treated as a strategic partner when it has earned the organization’s trust as a value-adding operation.

It might be an unpopular move, but the first thing that’s going to be on the agenda is savings. The drive in procurement has been to promote an agenda that covers more than just savings – efficiency, compliance, risk management and supplier development are just a few.

However, without even realizing it, the majority of these elements underpin savings and cost reduction. The trick is to not get too focused on savings to the detriment of the wider strategic agenda. Supplier consolidation and centralized procurement are a couple of approaches which tick both the savings box and that of the wider strategic aim of adding value.

Procurement Solutions – Your Backing Vocals

Rather stretching the metaphor of the rockstar and the band, it’s important to understand the tools available to help create your own procurement version of the Traveling Wilburys. Rockstar status won’t happen in isolation and that’s where procurement solutions and procurement consulting can take to the stage.

The best procurement solutions can help turn your data into a major strength through the power of spend analytics. Software can help organizations understand who they are spending their money with, how much they are spending and, most importantly, if they are getting what they have paid for. It makes spend visible, facilitating a greater understanding of how cost optimization and spend management will work within the wider procurement strategy.

As with any band, it’s important to pick a software solution that acts in harmony with existing systems, processes and how it will work once it’s been implemented. Given that employees are the ones who will be using it on a day-to-day basis, it’s critical that the solution is user-friendly, and that employees are trained fully.

Even the great rock bands (Queen, Black Sabbath, the Beatles) sometimes need to bring in external experts to push them on to greater things. For procurement it’s no different and the choice may be to engage procurement consulting organizations to assist.

These consultants can assist with software choices, implementation and running. But Group Purchasing Organizations (GPOs) go one step further, offering contract monitoring, spend management and collective buying power through their membership network.

This can help drive savings targets, aid supplier consolidation and all the other positives that organizations want from their procurement teams. Put simply, they help transform procurement from an undiscovered and unappreciated talent to a global rockstar!

Visit UNA to learn more about the benefits of Group Purchasing Organizations.

Intelligent Spend Management – Your Next Smart Move

Photo by Val Vesa on Unsplash

Bringing it all together by bringing Intelligent Spend Management to the business.

If you’re just buying office supplies, you’ve probably got a good idea what you’re spending on paper and pens. But odds are your budget goes beyond a few reams of ultra-white printer stock. And while you are specifically tasked with procurement, you actually help hold the reins and hold influence on multiple categories of spend — from direct and indirect goods, to services, contingent labour — even T&E.

True, this spending is spread out across your organisation and, yes, in many of these categories, spending is more decentralised than ever with employees all over the company buying what they need when they need it. And, it’s true that all of this spending and all of these categories aren’t even in your charge.

However, the business needs you to help bring all that spend under control across all those categories, so you can not only reduce costs, but also help your company:

  • Manage supplier performance holistically
  • Diminish delivery and reputation risks across the board
  • Improve compliance and enforce purchasing policies equally in all categories
  • Increase productivity across procurement and throughout the entire company

Changing Expectations

Organisations are expecting this and more from procurement.

  • They want you to collaborate with finance and supply-chain leaders and address spend management across the business.
  • They’re expecting you to bring more spend categories under control, to unify how you manage suppliers across all categories, and to help bring direct and indirect spending together with services and T&E to increase visibility into all your spend.

They want more, and there’s an easy way to deliver and manage every source and every category of spend in delivering one, unified view.

Unfortunately, the systems most businesses use to manage all of these different spend processes can create barriers between spend categories and keep people from working together. Intelligent Spend Management, on the other hand, is a strategy designed to bring those barriers down, so you can get visibility into and control over each and every area of spend. In one place.

Why Intelligent Spend Management Matters

Intelligent Spend Management means comprehensive policy and supplier management. This gives you oversight over indirect and direct suppliers while bringing that same level of discipline to services/external workforce suppliers as well as key travel suppliers.

And, integrated with your ERP system, an Intelligent Spend Management solution creates a common set of spend data — a hub where you can unify and clarify the information. You’ll also be able to:

  • Capture and centralise once-invisible spend like p-card transactions, non-PO invoices and direct travel bookings that used to slip through the cracks in your systems
  • Apply sourcing best practices consistently to all of your suppliers across all categories
  • Centrally manage supplier risk as well as tax and other regulatory requirements

It brings you best-in-class control of each spend category. This means you can manage the entire procure-to-pay process for direct and indirect expenses from a single solution. Imagine being able to:

  • Deliver a guided user experience that makes it easy to follow policy
  • Give users a simple way to make procurement requests, plus tactical purchases directly from suppliers
  • Ensure the suppliers you source, the prices you negotiate and the terms you establish are pulled through right to the point of purchase, so policy compliance becomes everyday practice
  • Capture data from across the process and use AI and machine learning to automate mundane tasks and serve up insight-driven recommendations at critical decision points
  • Strengthen supplier relationships and, ultimately, get more innovation from suppliers to improve how you work and what you deliver

And you can bring that same level of precision, efficiency and user experience for services, your external workforce – and the same level of control.

Presenting a Unified View

You get a unified view of spend. The Intelligent Spend Management solution connects procurement spend data with data from across spend categories, giving you a single, near-real-time view — without having to piece together reports from disparate systems.

This means you, your friends in finance and your supply-chain peers can see where every bit of your budget is going, and help the organisation:

  • Ensure that all spending is in line with corporate policy and priorities
  • Get up-to-date views into your KPIs, so you can adapt accordingly
  • Manage discretionary employee spend before it gets away from you
  • Feed this spend data back into supplier management and fuel stronger negotiations

Intelligent Spend Management breaks down the silos, so companies can control spend across the board.

This is about procurement, but it isn’t simply for procurement. Intelligent Spend Management enables you to work across categories and bring all the data together — so you can bring confidence to your company by bringing certainty to your spending.

This article was written for Procurious by Drew Hofler, VP of Portfolio Marketing for SAP Ariba & SAP Fieldglass.

5 Big Procurement Challenges Addressed by Enterprise Contract Management Software

This article was originally published on the Icertis blog.

Procurement is a complex part of global business that carries serious commercial and regulatory risk. These risks are especially pronounced when a company does not have an effective way to centrally manage its contracts.

In a recent survey conducted by ProcureCon, leading procurement officials were asked about contract-related challenges they’ve faced that caused revenue leakage, increased cost or financial penalties. Here were the results:

A critical component to tackling each of these issues is enterprise contract management software, which sees contracts as live documents enshrining all risks and obligations incumbent upon an organization.

Indeed, good risk management begins with good contract management. With enterprise contract management, you can identify and manage risk throughout the contract lifecycle with proactive insights. A configurable risk model helps track risks across different categories, such as financial, contractual, performance and third party.

Let’s look at how each of the above challenges is addressed through contract management software.

Challenge: Higher operations costs

Finding: 43 per cent of respondents said higher operations costs have hurt their procurement organisation.  

Because contracts are the foundational element of modern commerce, they govern every procurement action and transaction a business undertakes. With the power of a modern contract management system with an ability to seamlessly integrate with procurement systems in place, an enterprise can gain unprecedented control over spend.

Through full visibility into all their commercial relationships, contract management software ensures that cash flow is complying with corporate plans, and allows executives to continually monitor money moving in and out of the business at all levels of the supply chain.

Challenge: Slow contract creation and approval

Finding: 46 per cent of respondents cited slow contract creation and approval as a challenge.

With enterprise contract management software, users can accelerate and optimize the contract authoring process. For example, users can self-service contracts with pre-approved clause libraries, eliminating the need for legal to get involved at every level of the authoring process but still control contract language.

Configurable notifications alert relevant stakeholders for revisions, redlines, and approvals, ensuring nothing gets missed. And robust, highly configurable rules increase flexibility while driving quicker approvals and execution.

Challenge: Unclaimed entitlements/lost or untapped revenue

Finding: More than half of respondents cited unclaimed entitlements or loss of untapped revenue as a challenge.

Best-of-breed contract management software draws on artificial intelligence (AI) tools that index and “interpret” every entitlement in each contract across the enterprise, allowing users to achieve the full potential of negotiated contracts through better enforcement of commercial terms.

The software captures the terms of products and services, prices, discounts, rebates and incentives in a structured form after interpreting the entitlements. You can then integrate the data with enterprise systems and help enforce terms for better savings and revenue performance.

You can also avoid missed entitlements or revenue potential. For example, sourcing organizations can automatically check purchase orders against agreed upon contract language to detect incorrect billings issues with regard to slabbed discounts or other innovative payout models.

Challenge: Missed obligations

Finding: 55 per cent of respondents said missed obligations have been a challenge.

Contract management software gives unprecedented insight into these contractual commitments, ensuring nothing gets missed. The same indexing and reporting capabilities used to surface entitlements also capture a business’s obligations to third parties, preventing leakage caused by lost business or penalties.

Challenge: Regulatory enforcement actions

Finding: This emerged as the most common challenge for procurement leaders, with nearly 3 in 4 saying they’re concerned with regulatory enforcement due to noncompliance.

It’s no wonder this was the number one concern, given the serious financial penalties and lasting brand and reputational implications of regulatory violations.

A robust library of clauses and templates goes a long way to reducing ad-hoc, or maverick contracts. Readily accessible templates, combined with a rules-driven workflow engine, helps support compliance throughout every stage of the contract management lifecycle.

Contract management software can cross-check country- or region-specific rules with relevant contracts. Compliance, down to the smallest supply subcontract, can be continually monitored through integrations with external software. Contract management software can even take a preventative role in compliance, via innovative contract creation tools.

Sophisticated contract management software can identify such regulatory enforcement and compliance obligations not just from their own contracting policy and authoring rules but also from customer specific contracts and cascade them to buy-side contracts used for fulfilling commitments. This makes the whole supply chain subject to internal regulatory enforcement and compliance actions.

To learn more about how a modern CLM solution can improve procurement at all levels of the supply chain, download this report from ProcureCon.

Vivek Bharti is general manager of product management at Icertis

The Jaggaer Juggernaught Rolls On

With the recent acquisition of BravoSolution, Jaggaer continues its trajectory of rapid, aggressive growth to contend for the title of the world’s largest spend management solutions company. 

The Jaggaer growth story has been interesting to watch. Formerly known as SciQuest, the company’s announcement about BravoSolution needs to be understood in a long line of acquisitions beginning in 2011:

  • January 2011: AECsoft (supplier management and sourcing technology)
  • August 2012: Upside Software (contract lifecycle management (CLM) solutions
  • October 2012: Spend Radar (spend analysis software)
  • September 2013: CombineNet (advanced sourcing software)
  • June 2017: POOL4TOOL (to add direct material capability and introduce Jaggaer Direct)
  • December 2017: Italmobiliare’s BravoSolution.

The company’s press release says the acquisition will effectively render Jaggaer the “largest independent, vertically focused spend management solutions company in the world”. The solution includes advanced spend analytics, complex sourcing, supplier management, contract lifecycle management, savings tracking, and intelligent workflow capabilities.

As a result, Jaggaer will have over 1,850 customers connected to a network of 3.7 million suppliers in 70 countries, served by offices located in North America, Latin America, throughout Europe, the United Kingdom, Australia, Asia, and the Middle East.

Spend Matters reports that this latest move will make Jaggaer “the No. 2 player to SAPAriba in the procurement technology market by revenue”.

A Spend Management “Super Suite”

Robert Bonavito, CEO of Jaggaer, says that the move “creates a powerhouse in the global spend management space and represents the execution of our strategy to build a Super Suite of fully integrated spend management solutions. This acquisition enables the largest companies in the world to do business with a single partner and cover all of their spend management needs. We have best of breed, fully developed solutions for multiple vertical industries delivering value across the full spectrum of spend types. With our size, financial stability, and expanded infrastructure we can further accelerate product innovation and bring customer value across a vast swath of geographies and industries.”

The CEO of BravoSolution, Jim Wetekamp, commented that Jaggaer is “a bold company on an aggressive growth path. The combined entity will deliver greater opportunities for both customers and employees. The combination will allow increased innovation and provide a foundation for procurement digitalisation that will set the trends and benchmarks for the entire industry”.

What’s next? 

The language used in the press announcement (“covering all spend management needs” and “full spectrum of spend types”) appears to suggest that with the acquisition of Bravo, Jaggaer’s offering is now complete. But is this the peak of Jaggaer’s rapid growth story? As the dust settles and any remaining gaps begin to emerge, users may get a glimpse of the type of solution Jaggaer intends to acquire next.

Are You Ready For The Procurement Rebels And Revolutionaries In Your Team?

We know Gen Z don’t fit into the traditional workplace – but how can procurement organisations embrace these revolutionaries to benefit from their rebellious nature and leverage their innovative approaches? 

As a procurement manager with very rigid, process driven procurement software in place, how do you plan to manage the potential chaos that will come from the millennials in your current workforce and the Generation Z’s about to enter it?

Firstly, let’s address three ways of dealing with this issue. Do you ignore them, do you suppress them, or do you take time to investigate what these natural rebels and revolutionaries can offer?

Both groups are born entrepreneurs; they mesh work and play together, they’re smart beyond their years and they have a clear picture of what they want from a career.

Technology has been a major influencer in the develop of a new type of professional. It has provided access to vast amounts of information and has become the great equalizer, playing a major role in their disruptive nature at home and at work.

In my experience, I’ve found that both millennials and Z’s are self-starters – they work smarter and harder than you may think and have disproved time and again the “lazy” stereotype. They’re not averse to working outside normal business hours and use their daily commutes or downtime to get work done because they want to complete it promptly.

The tech catalyst

So, we know that millennials and Z’s don’t fit traditional workplace rules, so how can organisations benefit from their rebellious nature?

Technology is the catalyst of this rebellion. It meshes the world of work and play into a single environment; one where users expect the ‘Amazon’ type experience they get at home on Sunday to be mirrored in how they use technology at work on Monday. ­­

What do you say to the team member that walks into your office to tell you that your existing procurement software is drowning the team? They then show you an app they downloaded over weekend that allowed them to create RFQs, connect and chat with suppliers, make decisions and save a ton of their time and your money.

Revolutionaries are born from discontent. They’re frustrated at the status quo, and those who lead them are searching for a better way. It can be a challenging process, but these young rebels – or, to use a modern term: these entrepreneurs – are simply seeking more effective and flexible ways to work.

A new approach

So how would you react to the above scenario? It starts by changing how you approach the thinking behind the solution. This means recognising that innovation is no longer a top-down exercise that remains in the exclusive domain of senior management teams or corporate retreats.

Real innovation today is being driven from the ground up by those rebels within our teams that simply want a better work experience and are not afraid to try new technology or methods to get better outcomes.

It wasn’t that long ago when ‘agile’ was a term used only in software and development teams. I now see sales teams working with scrums and management teams having daily stand ups – it’s just one example of the new way of thinking and doing that is helping business work faster in today’s instant world.

Does this mean that it’s time to let the revolution rise and allow the rebels to take over the organization? Well, not entirely – it’s about getting the balance right.

It’s time for procurement leaders to stop lamenting about being seen as the roadblocks within their organisations and to look to your millennials and Z’s as a talent pool rich with ideas, innovation and passion.

They will challenge, they will make mistakes, but it is time to move beyond the current boundaries you’ve set, and remember – you were a rebel once, too!

About the author

Alan Paul is a thought leader and CEO of sourceit, a technology company that has led the market in the development of simple and easy-to-use sourcing applications for indirect categories.

Sourceit offers three different products for buyers:

  • RFQ – time saving request for quote software for all indirect categories,
  • Market – a specialized procurement and job management application for marketing services, and
  • Catalog – an inventory management and on-demand product/services ordering application.

Visit the website: sourceithq.com

The New Age Of Procurement Technology

Procurement technology went full sail and you eagerly jumped on board. But now 90 per cent of all technology is about to become obsolete. Are you prepared for the new age? 

As the vice president of Basware’s Purchase-to-pay solution it goes without saying that I’m involved in a lot of procurement technology selection decisions. And over the years, I’ve noticed a recurring pattern in the process, across numerous organisations. It tends to play out a little bit like this:

A CPO of a large organisation is at the end of their tether thanks to a messy purchase-to pay process. It’s the age-old story with AP and procurement operating independently, maverick spend with unapproved suppliers, late payments and paper absolutely everywhere.

The easiest, and seemingly smartest, solution to the problem is the implementation of a new purchase-to-pay system, which said CPO requires, being extra savvy, to be a Software-as-a-Service solution. The CPO knows they can get a decent ROI on whichever supplier they choose.

So what’s the problem?

Unfortunately, our CPO is only looking 5 inches in front of their face! It’s no exaggeration to say 90 per cent of today’s procurement technologies will be obsolete in the coming years. And so procurement needs to start looking much further ahead!

Remember Siebel? We can’t either…

You’d be pretty hard pushed to find an organisation that uses Siebel nowadays. You might even struggle to find someone who knows what it is!

Siebel was the cream of the Customer Relationship Management (CRM) crop in the late 90’s and early 2000’s. It was the absolute best at its time.  Hundreds of millions of dollars were spent on licensing and implementing Siebel, with the promise of visibility, efficiency, and improved customer satisfaction.

Fast forward a mere ten years and…nobody uses it.  It turned on a dime thanks to Software-as-a-Service and, more specifically, Salesforce. An enormous technology shift took place, and suddenly Siebel and everything like it was utterly obsolete. More than a few CMO’s were fired as a result.

What can we expect from the next tech shift?

What can we expect from the next technology shift? We hear about  AI, machine learning and cognitive computing all the time and there’s a lot of concern amongst procurement professionals that it’s going to displace our workforce.

But it’s coming to procurement whether we like it or not. There’s a glaringly obvious application of AI for procurement professionals.

One word: data.

When today’s CPOs try to objectively evaluate the functionality of potential new solutions, they’re often bypassing  a crucial aspect (opting to solely measure tactical functionality); the game-changing competitive advantage their organisation can achieve through the power of the data.  There are two major considerations to be made here.

  1. Is the system architected for centralised data capture?

    The system should be able to capture your data, the data of all organisations using the solution  and, ideally, be able to connect with other solutions.  The more the system is designed for centralised data capture, the better chance you have of being able to take advantage of the latest  data-driven tech changes.

    My advice is that you eliminate anything that focuses solely on you and your data.  If it’s not central, you can be sure you’ll get stuck behind and end up like one of the organisations using Siebel.   But, of course, design alone is not enough.

  2. Does the system actually capture that data?

To capture all of this data, there are three parties that matter: suppliers, requisitioners, and AP. This is where tons of business cases fall apart.

  • Suppliers: To capture data you have to get all your suppliers on the system. Not just your big sophisticated suppliers, every single one! You have to get them connected, or you will fail, if not today then most definitely in the imminent future
  • Requisitioners: Who are the worst employees when it comes to using a procurement system? It’s fair to say that it’s often the sales and exec teams;  the people driving revenue for the company. These groups are only going to use a new procurement system if it’s the easiest and fastest way for them to get their jobs done, which means it has to fit in seamlessly with how they work.   If you don’t give them a system that they want to use, you won’t have them, and again you won’t be capturing the data from their transactions.
  • AP:  This is probably the most important part but so often an afterthought when looked at from a Procurement perspective. Consider how many hundreds of thousands or millions of invoice transactions are processed within your company. Now multiply that by the thousands of other companies out there and you’ll get a sense of how quickly that data can scale. Most P2P systems can’t process all of those different kinds of invoices. And that’s where we end up in Siebel world, yet again!

By committing to finding and using a system that captures all of this data, and does so not just for your organisation, but in a truly centralised platform, procurement will soon be able to achieve the following:

  • Fraud detection
  • Machines that know when you need something. Doesn’t it seem miraculous when Amazon knows what you need and presents it to you when you login?  Let me tell you that it’s not. It’s data
  • Dynamic discounting marketplaces
  • Exceptions handled without any human intervention, based on patterns of prior behavior in the data. This might not be behavior that humans can readily identify, but machines can with ease by crunching all of that data

Procurement would do well to remember that, In today’s world, the big value is in the data, not in tactical functionality.

Eric Wilson is the head of Basware’s Purchase-to-Pay business for the Americas and APAC. 

The Procurement Love Triangle

Love the idea of software solving all your procurement problems? You’d better make sure it’s working in harmony with your people and your processes. 

Paul Blake,  Senior Manager, Technology Product Marketing at GEP Worldwide is a keynote speaker at Big Ideas Summit 2017.  He’ll be talking about digital procurement transformation and why it’s so important for procurement to  adopt  digital-first models. We chatted to Paul ahead of the event to get his take on procurement’s current position.

Describe a perfect client for GEP?

The perfect GEP client is a large company with a lot of complexity in its spend but with a desire to do things better and drive more value into the business.

Do you think cognitive tech signals the end for the procurement profession in the near future?

I don’t.  Procurement has always been driven through human innovation and creativity, but that has often been constrained by the necessities of labour intensive transactional processing and data analysis.  Emerging technologies have the capacity to free the procurement profession from the bounds of document processing to focus more on driving new sources of value.

You’ve been at GEP for five years. What’s changed for the procurement function in this time?

Three major things:

  1. The cloud has come of age for procurement.  The industry can now conduct its entire operations completely independent of any infrastructure considerations.

2.  The unification of procurement and order processing.  Procurement’s remit used to end at the contract, with value realisation outside of their purview.  A single overview of “source-to-pay” gives a much greater ROI

3. The trend toward global harmonization of the supply chain is under threat.  That means increased risk, volatility and uncertainty.  Today, procurement teams need greater reserves of agility and responsiveness to remain successful.

What should we expect from the most successful procurement leaders of the future?

A recognition that procurement has a much broader, collaborative role to play across the entire business.  Reflecting changes in technology, the isolation of business functions into silos is retrograde thinking and a changing world will need a broad-minded approach to procurement operations

What 3 attributes make a great leader?

Education, education, education!

When is software not the answer?

When the question involves people and/or processes!  The three are so deeply interdependent that software itself is never the whole answer.

Join the conversation and register as a digital delegate for Big Ideas 2017

The Surprising Truth – Apps Are Not Enough for Enterprise Mobility

Apps are all the rage, and businesses realise the benefits of having one. But many don’t realise that they need to go beyond an app for true enterprise mobility.

This article was first published on the Coupa Blog.

Apps have been closely associated with mobility since they exploded onto the scene with the launch of the Apple iPhone in 2007, followed by its app store in 2008.

Soon “there’s an app for that” became a running joke, denoting that just about anything that you wanted to do could be done on your phone using an app. We hit peak “app for that” when the American Dialect Society voted app the word of the year in 2010.

There are now millions of apps, and while it’s still true that you can do an amazing number of things with them, it’s also become clear that they have their limitations, especially for business.

Enterprise mobility requires more than just apps. So, when I hear companies announcing a new app with great fanfare, and sweeping claims that this innovation makes their product or solution mobile, I want to sit them down for a chat.

Mobility is a work style, not an app

Here’s what I’d tell them. An app is a must have, but enterprise mobility is a work style, not an app. More than sixty percent of workers are now working outside of the office at least part of the time. Apps are just one way of enabling them. True mobility is about letting people do business in the fastest, most efficient way possible, wherever they are, and that’s not always by using an app.

Apps present opportunities and challenges for the enterprise. A really good app, one that transforms a business process and makes it dead simple, can be highly addictive.

For example, I am on the go constantly. I couldn’t live without the Amazon app, because I place an order almost every day. I don’t even have time to even go to a local store for books and scissors for my kids, so I use the app to order wherever I am when I realise I need something.

My friend Lynn is also an Amazon fan, but she works from home or Starbucks, and uses one-click ordering on her laptop. She has never even downloaded the app.

Real challenge of enterprise mobility

It’s the same in the business world. This is the challenge of enabling true enterprise mobility: it’s multi-faceted.

Yes, you have to have a mobile app, and you have to invest in making it awesome, but an app can never match the desktop experience for managing a complex business process end to end.

And, if people still need to log in to the desktop application for all or part of a process, there has to be a really compelling reason for them to also download and use an app. If they can do something in some other way that is easier and faster than installing an app, they will.

On the other hand, for people who have to perform a particular process every day, or multiple times a day, downloading the app will seem like a small price to pay for a big increase in efficiency. They will naturally want to use it, and they’ll be raving fans.

Outside of these power users, the app will be irrelevant and they’ll never even download it. That’s why you have to give them other mobility options, such as mobile responsive design for tablets, smartphones and wearables, and my favourite, actionable email notifications. Yes, email.

Killer apps

What’s so great about email? You’d be hard pressed to find a business person who doesn’t have it on their smartphone and use it every day. So, if you can serve up something in an email and the user can take action without logging into a software system, and without having to set up a new account or go to an app, that’s a great mobility experience for most users.

We see this reflected in platform usage data at Coupa. Approving purchase orders is a common mobile use case. Not requiring approvers to be in the office to approve purchase orders has a huge impact for most companies, cutting PO turnaround time from an average of two or three weeks to 17 hours, the average across all our customers. But our data shows that most approvals are done via email, not by app, even though we offer both choices.

The same holds true for suppliers. The vast majority of suppliers only get a few POs from a customer, and invoice once per month. For these suppliers, downloading an app to turn a PO into an invoice is an exercise that adds to enablement effort without yielding benefit. If you give your supplier an option to get all the data they need, at their fingertips via email, without requiring an app, the vast majority of suppliers will choose this option.

Does that mean the app is no good? No. But why go to another app to do what you could do in the app you’re already in? Most people won’t do it.

Quest for Innovation

But for people who do have dozens of purchase orders to approve every day, or business traveler who have multiple expense items to upload, it’s a different story. They use the app because it’s more convenient, and less error-prone, to have everything in one place and process everything at once.

That’s why for the enterprise, equating an app with mobility is wildly optimistic and naive. Innovation in 2016 is not about having an app. Simply having an app for this or that will never be enough.

In this age of personalisation and consumerisation, innovation means continually thinking about end-user experiences and using the latest technology to make business processes easier through any number of channels. It’s giving people options to work how they want, when they want and with as little friction as possible.

That is true enterprise mobility, and so far there’s no app for that.

Coupa Inspire: Rethinking the Possible with Rob Bernshteyn

Lights, music, action! Hugo Britt recounts his experience of the spectacular opening keynote at this year’s Coupa Inspire conference.

The Faculty’s Hugo Britt recently attended Coupa Inspire ’16, a dynamic conference bringing the Coupa community together in San Francisco, California. 

Doof, doof, doof, doof.

I’m sitting in the Grand Ballroom of San Francisco’s stunning Westin St Francis hotel and the place is packed. The Coupa Inspire ’16 conference is just about to be launched, and all the seats are taken. People are lining the walls and spilling into an adjoining hall, complete with a big screen set up to cope with the numbers.

Outside the hotel lies San Francisco’s famous Union Square, most of which is taken up by an enormous pavilion bearing the Coupa Inspire logo. This is where the exhibiters spruik their products, and also where the 2000 or so delegates gather for breakfasts, lunches and networking.

The tent itself is generating a lot of interest among the locals – I was stopped by onlookers on more than one occasion, who asked me what the tent was for and what was going on in there. You could even hear the word “Coupa” shouted by tour guides from the top decks of the red buses regularly cruising past the square.

In the tent it’s dark, with spotlights flashing around the room, and the music is turned up LOUD. I can feel my ribcage vibrating: doof, doof, doof, doof. The guy at the sound desk receives a cue and, unbelievably, doubles the volume. Into this buzzing, clubby atmosphere, walks Coupa CEO Rob Bernshteyn, and the crowd roars.

Cultural Buzz

Coupa has to be applauded for the vibrant culture it has created. The 600-strong Coupa team’s enthusiasm is infectious, and the marketing is superb, giving the whole conference the atmosphere of a celebration. This celebratory buzz can be felt in the brilliant ‘Freedom‘ video, featuring the team lip syncing and dancing around their head office and Union Square.

Bernshteyn stresses that Coupa isn’t a technology company. Rather, it’s a “value as a service” organisation. Simply put, it’s about discovering, realising and optimising the value for its customers.

The numbers are impressive. Coupa has been adopted by hundreds of businesses globally, representing millions of users, and over two million suppliers on its open business network. Together, Coupa users conduct tens of millions of transactions per year, with approximately $200 billion in spend under management.

Building on Data

All of this activity on the system generates a vast amount of data, and the developers at Coupa take full advantage of its potential. “Think about what can happen”, says Bernshteyn, “when we combine the insights around the billions of dollars running through our system”. Customers have access to real-time benchmarking that shows how you are tracking against the entire Coupa community.

Bernshteyn also takes the opportunity to launch Perfect-Fit Benchmarks, which enable users to understand savings, invoice cycle time and more by industry and by category. This vertical application means the AI can predict the right time to buy specific products and services based on historical data.

Bernshteyn circles back to Coupa’s catch-cry: rethinking the possible through measurable value creation.

The software’s popularity comes down to the platform’s simplicity, efficiency and ease-of-use, designed to gain maximum visibility of what you’re buying and who you’re buying it from. The phrase “suite synergy” (at first I thought they were saying “sweet” synergy), is used constantly at this conference, referring to the single unified platform that has vanquished the decades-old frustration of software products not speaking with each other.

As Bernshteyn leaves the stage, the DJ enthusiastically takes the opportunity to rattle our eardrums again. I walk past him on the way out, and he has an excited gleam in his eye – he knows that we’ve got a huge event ahead, with more inspirational keynote speakers (including Sir Richard Branson), more exciting product launches…and plenty more opportunities to turn the volume all the way up.

Stay tuned for more from Coupa Inspire in the coming days!