Tag Archives: procurement solutions

Delivery Failure Notification: Your Spend Analysis Tools Could Not Deliver On Their Promise Of Good Data

When spend analysis solutions have failed to solve the problem they were designed to fix, they leave their users wanting more. But there are always ways to salvage your investment….

At a high level, companies utilising spend analysis solutions are leveraging spend data for the purpose of gaining visibility into cost reduction, performance improvement, supply risk, compliance, and other value generation opportunities. Simply put, spend analysis, and the resulting spend visibility, are considered “table stakes” for any procurement organisation. No procurement function can make a claim to world-class status or even average performance if it lacks this entry-level capability. It should be the first and last step of the strategic sourcing process that both identifies the opportunity and measures the organisation’s achievement thereof.

While these solutions have existed for decades, many companies that utilise them continue to suffer from poor procurement data, if not downright unusable data. They are undone by noncompliance, data entry errors, fragmentation of data across multiple systems and general poor data discipline.

Many of these solutions encompass complex organisational schemas such as UNSPSC, which was designed for other purposes and applies a categorisation structure that reflects the way supply markets are organised. Furthermore, general ledger (GL) codes are simply not a trustworthy substitute for a true procurement and sourcing taxonomy, and were designed for people who write the checks.

Certainly some companies must have great procurement data, because so much money has been spent on these systems specially intended to solve this challenge. But in cases where those technologies fail to deliver on the promise of good data, they are typically suffering from a host of data issues due to:

  1. Accounting-oriented data not aligned with procurement categorisation
  1. Maverick and unmanaged spend not captured in the solution
  1. Poor input discipline, or procurement-related data being entered by non-procurement resources

When these solutions have failed to solve the problem they were designed to fix, they leave their users wanting more. User adoption is low and many find that additional data manipulation is required, with many organisations dedicating internal resources to spend analytics, despite paying at third party to perform this for them. These tools are often clunky and difficult to use and fail to deliver the key insights procurement professionals need to drive value and impact the bottom line.

The market is calling for an end to this systemic problem impacting most procurement functions. After all, having access to quality data will always ensure procurement a seat at the table. Organisations should be able to rely on solution providers to provide them at a minimum with:

  • Highly accurate categorisation
  • Actionable, data-driven, procurement-focused insights
  • Fingertip access to ‘good” or even “great” data through a simple, easy to use interface

If you find you are not experiencing this with your solution provider, there are still ways to salvage your investment. Identify the desired changes and develop strategies with your vendor to overcome the visibility challenges. They should be ready and willing to restructure the underlying data/taxonomy to ensure you reap the benefits of the solution you implemented. Today, procurement professionals should be focusing on the strategic aspect of their roles and elevate beyond the frustrating and tactical world of data manipulation.

Continue reading Delivery Failure Notification: Your Spend Analysis Tools Could Not Deliver On Their Promise Of Good Data

6 Things To Consider Before You Buy Any Procurement Technology

Thinking of investing in some of the latest procurement technology? If you haven’t consulted market trends, got a third opinion and done all of your research, you might want to pull on the reins!

Buying procurement technology these days is a complicated business.

With ever more niche vendors entering the market and established providers offering increasingly sophisticated solutions, differentiating on face value alone can be as clear as mud. However, given that your decision will have an enterprise-wide impact, it’s crucial that you assess your options and make the most informed decision possible.

1. Separating Fact from Fiction

Of course, you will have the product marketing collateral from each provider such as datasheets and solution overviews.

However, you need to be aware of how much is marketing ‘fluff’ and how much is an accurate reflection of the solution’s capabilities.

To do this, you can turn to customer case studies and testimonials to understand what their experience of implementing and using the solution has been like. But remember, even that source of information comes with its own challenges and shortcomings. If the case study focuses on the customer’s functional use of the product, it may not offer you an accurate view of customer service levels or product performance, which are of course key considerations in making your decision.

This is where third party research and validation comes into play.

2. Look at market trends

Where do you go and how do you choose your sources of information?

The entire technology market is well served with analysts reporting trends, competencies and guidance on the good, the bad and the ugly of the industry. In searching for technology vendors that meet your requirements, this certainly helps sort the “wheat from the chaff”.

That said, the technology market is quite unique in that it experiences a rapid advance in product capabilities. With competition driving innovation, product sets evolve quickly and when you’re looking at R&D in technology sphere, one year is a long time. This means that its essential to ensure that the information you’re using, and basing your decision upon is up-to-date and reflective of the latest capabilities within the market.

3. Consult The Magic Quadrant

One of the world’s largest, most respected analyst organisations for technology research is Gartner. Each year or so, they produce the Magic Quadrant which is a culmination of research in a specific market, giving individuals a broad view of the relative positions of the market’s competitors. The Gartner Magic Quadrant research provides a graphical competitive positioning of four types of technology providers in fast-growing markets; Leaders, Visionaries, Niche Players and Challengers.

They produce this research for a range of technology sectors, including procurement sourcing applications, and it is a well-trusted source of information for assessing your options when you go to market.

Access the Latest Gartner Magic Quadrant for Strategic Sourcing Application Suites.

4. Make sure you’re using up-to-date analysis

Given the considerations around the pace of advancements in the eProcurement sector,  it is all the more important to ensure that you’re using the most current information available. In addition, because of the time between each report release, you’ll find that vendors that have been in a Leaders quadrant can fall from grace into lower quadrants/waves.

This is because to remain in the Leader segment is dependent on a vendor’s investment in product functionality and features, as well as their business vision to meet the needs and demands of the procurement marketplace. Customer satisfaction and referencing is also taken into consideration for the research, meaning a strong Leader position is indicative of a satisfied customer base.

5. Get a third (Party) opinion

There are a number of consulting and analyst organisations who conduct independent research of the technology space in order to provide a clearer, qualitative segmentation of the marketplace. By supplementing the information supplied by providers with this third party research, you can validate performance and delivery to build a more objective view of the market place. To get you started, here is a short list of publishers that you can turn to for information:

  • Spend Matters Network
    This leading network of procurement websites is a great source of current procurement insight. Their commentary and reporting examines the latest news, techniques, “secret” tools of the trade, technology, and its impact. Most of the content is free to access, but there is a Spend Matters Pro membership that will give you access to exclusive research and content.
  • Procurement Leaders Network
    Procurement Leaders™ is a global membership network, serving senior procurement and supply chain executives from major worldwide corporations, providing independent procurement intelligence, professional development and peer-to-peer networking. It has a broad range of research into various sectors, but you do need to be a member to access most of the content.
  • Supply Management
    Supply Management is the official publication of the Chartered Institute of Procurement & Supply and features the latest news, view and analysis for procurement and supply chain professionals worldwide. The website provides daily news and opinion and exclusive content, in addition to access to more than 15,000 articles.

6. Do your research

As the marketplace for procurement software and technology continues to grow, it can become a confusing place for those looking to choose a solution; you’ve niche providers who offer specific pieces of software and more established leaders offering integrated full-suite solutions. Each promises to deliver the most effective, powerful solution but how much of that is bluster and how much is grounded in truth? By all means utilise the product marketing information that a vendor provides, but scrutinise it too. Is what they say true?

Ensuring you conduct thorough third-party research and refer to existing customer testimonials is key to finding the answer to that question and key to you selecting the best solution for your organisation.

This article was written by Dan Quinn, SVP Jaggaer MENA.


Join JAGGAER In Munich next month for REV 2018 – two action-packed days, filled with the latest in eProcurement innovations, trends, and strategies designed to help you accelerate your spend management digital transformation.

Hear how your peers are leveraging highly engineered technology to deliver strategic procurement value to their organisations.

Spaces are limited so secure your place today and check out the incredible speaker line-up.

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.

Does Insurance Against Failure Really Keep You Covered?

Is it really worth taking out insurance against system failure? Is the true value in a system that works first time, all the time?

Download ‘Parting the Clouds‘, Smart by GEP’s latest whitepaper, to understand the difference between Cloud Solutions and SaaS Software.

There was a debate in the office that ran for a while when we were putting together the white paper that’s associated with this post.

“Yes,” said one camp, “we understand that there are technical, operational and architectural differences between Cloud and SaaS, but so what?”

In other words, why should Procurement care how their software “solution” is delivered to them, as long as it works?

“Fair point” said the others, “but if we believe the cloud model is inherently more secure, robust and future-proofed than the other, should we not call out that distinction?”

“Again,” came the response “if a SaaS implementation is backed by the necessary service level agreements from the supplier, what’s the difference?”

And that is when the subject of insuring space launches came up.

Bear with me.

Can Insurance Really Cover Everything?

Insurance is what we’re talking about, of course. Ensuring your Procurement operation can carry out the business at hand without interruption or disruption is a primary goal of selecting the right software system. The SLAs in the contract with the vendor are what comprise that insurance policy.

As is the case with everything in the insurance world, the greater the degree of protection you want, the higher the premiums.  But there is also a matter of the risk.

Seven per cent of satellites and spacecraft fail at launch. Recently some fairly dramatic launch failures have made the news. The ones that really make the headlines are those that involve the destruction of a payload that teams of scientists have been working on for years.

You can almost feel the despair and horror of watching a decade’s hard work destroyed in mere seconds.

Usually, but not always, these payloads are insured against multiple possible eventualities. Launch failure, failure on deployment, failure on landing – as in the case of the recent ESA Mars mission. Naturally the premiums are immense to insure an interplanetary mission. Often the insurance by no means covers the ultimate cost of the failure.

The many millions paid out after a launch failure may cover some of the financial stake invested by the agencies funding the project. However, there is essentially nothing that can recover the loss of the science that was to be delivered. The physical and material can be replaced, but the loss of the results is absolute.

Don’t Insure Against Failure – Do It Right First Time!

A far better form of insurance for space launches is a system that doesn’t go wrong. This is in fact the calculated risk taken in many projects. Catastrophic failure cannot be mitigated with cash, so better to spend the insurance premiums on building something that won’t explode.

And this is why it seemed an appropriate metaphor for the kind of SLA insurance under discussion. It’s all very well having the on-paper insurance for failure coverage, but that’s of little consequence if the financial value of the pay-out can do nothing to mitigate the real cost.

This is why, then, we feel there is a clear distinction between different interpretations of what “cloud” actually means. The fundamental underlying scalability, security, robustness and other forms of risk really should be considered when making a genuinely informed decision.

Comparing vendor contracts like for like you may see the same SLAs – system availability, uptime and access. But without a doubt the benefit of an SLA is in never having to rely on it.

If your procurement technology fails, are you really covered against all the potential losses? What risks should you be considering when adopting new Cloud technology?

Download Smart by GEP‘s latest whitepaper, ‘Parting the Clouds to find out all you need to know.

The Efficiency Value of a Marketplace Approach

Procurement talks a good game when it comes to efficiency. However, few are walking the walking when it comes to taking real action.

This is the second in a three-part series of posts. If you missed my first, ‘Instant Access to Supplier Information a Step Change for Procurement Productivity’, click here to read it.

In that post, I presented a challenge to anyone who assumes that having technology guarantees progress. Make sure your technology is earning its keep and not just putting your inefficient, manual methods online.

In this post, I’m going to take the same approach to efficiency.

What is Real Efficiency?

We talk a lot about efficiency in procurement, but we take very few steps to actually improve it. Real efficiency is more than doing more with less. It is also about timing. Sometimes, doing the same task at a different time increases the impact potential of the effort behind that task.

Take risk management or risk mitigation as an example. Addressing risk should be an active part of the sourcing process, not something to be managed afterwards. While risk information is readily available, sometimes what procurement really needs to know what their peers think of a supplier.

That is why tealbook combined internal supplier knowledge, data from Dun & Bradstreet, and aggregate intelligence from your industry peers into each supplier profile. Adding a peer view to the supplier discovery process not only makes it more robust, it significantly increases the trust factor for everything procurement learns.

Addressing risk early is critical. Two of the first opportunities procurement gets to mitigate risk arise during the supplier discovery process:

1. Inviting more qualified suppliers to participate in the sourcing process improves the final award decision.

You’re always going to lose some suppliers to disqualification or elimination. Investing in the discovery process up front decreases the fall-off rate, and ideally presents the team with a larger number of more qualified suppliers to negotiate with and consider for contracts.

2. Looking at supplier-related risk factors before the sourcing process begins makes it possible for procurement to push back on requirements if they are too confining.

Procurement tries to be good about collecting risk information in RFx’s, but many times it is too late to change the direction of a project based on what the team learns from suppliers.

By doing an early assessment of the available pool of suppliers and their relative risk before going to market, procurement creates an opportunity to widen the pool of prospective suppliers.

Making Efficiency Proactive

In addition to thinking about the timing of tasks and what impact that has on efficiency, procurement needs to look for opportunities to combine activities.

If you are going to conduct a supplier discovery exercise anyway, why not search a platform that incorporates third party risk data in addition to supplier information and buyer knowledge? tealbook incorporates D&B information into supplier profiles so procurement see which suppliers offer the product or service they are looking for in one place.

Taking efficiency to a more proactive level, why not pre-vet hundreds (or thousands!) of suppliers across a wide range of categories? With the right technology and information, procurement could, in essence, create a custom virtual marketplace of suppliers that are ready to bid at any given time.

A broad approach drives efficiency because the suppliers are already vetted and risk is moved up in the process without adding a step or a delay. This is an ideal application of technology because it enables something procurement can’t do on their own on the same scale.

Value creation goals notwithstanding, good procurement teams want competition as well. Without the supplier discovery pre-work being done, procurement is stuck with the same old suppliers time and time again.

And there is nothing efficient or strategic about that. Marketplaces are certainly not a new idea, but they are a path to efficiency that we should look for ways to improve.

Now that I’ve shared my point of view on scalable technology and marketplace efficiency, I’m going to wrap this series of posts with an optimistic view of procurement’s forward looking potential.

Gregg Brandyberry is a recognised pioneer in procurement and sourcing technology. He has over 40 years experience in industries such as automotive, textile, manufactured goods, electronics and healthcare.
He is the former Vice President of Procurement – Global Systems and Operations for GlaxoSmithKline, and a Senior Advisor for A.T. Kearney’s Procurement and Analytic Solutions organisation.

Cloudy Future for ERP Based Procurement

Traditional ERP systems just don’t do the job for procurement. However, an integrated, Cloud-based approach could be the answer the profession is looking for.

This article was written by Daniel Ball, director at eProcurement specialist, Wax Digital.

The benefits offered by best-of-breed eProcurement technology are well documented. Procurement professionals don’t need much convincing of the advantages of using them.

However, for some organisations, stepping away from using their Enterprise Resource Planning (ERP) system’s in-built purchasing tools isn’t always an easy option.

Modern ERP systems offer organisations a way to manage, collect and interpret data from a variety of business activities across seemingly all business functions, from purchasing and finance to HR and customer service. They also integrate all internal data-collection systems so that all business functions rely on one single database.

This one source of real-time data can help businesses to make decisions based on facts rather than assumptions. To coin a well-used phrase, they could be considered something of a panacea capable of eradicating all business process ills.

There is another way…                                                                                                             

However, for all of the many benefits ERP offers to the organisation as a whole, it’s not uncommon for procurement teams, amongst others, to be frustrated by its rigidity and functional limitations. While core functions such as Finance, Manufacturing and HR are well supported by ERP systems, Procurement, it would seem, is often less so.

Procurement teams will therefore inevitably face the choice between continuing to use ERP, or move to an alternative best-of-bread solution. Today this almost invariably means a cloud-based system that needs to integrate seamlessly with ERP.

The Integration Challenge

But how can procurement convince the rest of the business, and especially the IT department, that the existing functionality on offer to them is no longer adequate for their needs and that moving to a cloud-based system that can be integrated with ERP can be done easily and securely?

We’ve seen many of our customers seek to replace the procurement modules offered to them by their ERP systems but who have been stopped by the integration challenge. They have faced concern from IT managers that integrating with a remotely-hosted, third-party system may pose a risk to the organisation, especially when business-critical master data and finance systems are concerned.

However, the tide is now turning. Some cloud-based eProcurement solutions can securely integrate with ERP and their finance systems. This offers users freedom of choice and the ability to automate, improve, and better manage many of their day-to-day procurement processes.

Feasibility of Integrated Systems

A platform which comes with its own ready configured Integration Platform as a Service (iPaaS) is certainly a major step forward in convincing the finance and IT departments and using a separate but integrated system is not just possible, but advantageous.

We’ve worked with many procurement teams in leading organisations who’ve decided to reject the functionality on offer to them from ERP, and integrate cloud-based eProcurement.

One of our customers uses JD Edwards’ (JDE) ERP system for finance, and had used its procurement module for over ten years to raise purchase orders and approve invoices.

The system wasn’t very efficient or easy-to-use so certain departments chose to bypass it all together, preferring instead to manually process their orders.

However, the complexity and limited functionality of the existing system was preventing the organisation from making wide-scale purchasing efficiencies and not giving a clear view on organisational-wide spend.

Deciding to integrate a new eProcurement system with the JDE finance system that would enable a number of efficiencies including better spend control, more efficient order processing and payments, the organisation decided on a hybrid cloud approach allowing us to host our cloud-based service from within its data centres.

Wide Reaching Benefits

At another of our customers the procurement team was keen to make efficiencies to the management of its indirect spend across Europe.

Multiple systems were being used across the region for indirect purchasing, and these were largely manual, paper-based processes that did not provide full visibility and control over expenditure.

As a result, collaboration between the purchasing teams and finance, as well as with suppliers, was not integrated and could have lead to duplication on spend, or even the business purchasing goods or services it didn’t need.

In order to improve indirect purchasing across Europe, the organisation chose to move its entire European operations to a single, cloud-based eProcurement system to integrate with SAP.

Best-of-breed cloud-based, eProcurement solutions offer a host of benefits across the business, that are far reaching and extend beyond the walls of the procurement department.

Taking the Global Pulse of Procurement

How do you take the global  pulse of procurement and understand key current trends? Here’s a survey that helps do just that.

Zycus recently published their 2016 Pulse of Procurement report, an annual survey and report that highlights key procurement trends around the world.

The report draws on the thoughts and inputs of 650 procurement leaders worldwide, helping to draw valid, statistical conclusions across a number of topics.

The key areas of discussion in the 2016 report include:

  • The present state of procurement
  • The role of procurement technology
  • Hot current trends of procurement
  • The future of procurement

With participation in the survey increasing year on year, and the consumption of the report also increasing, it’s becoming one of the key information sources for procurement leaders. Procurious caught up with Richard Waugh, VP Corporate Development at Zycus, to talk through some of the key messages in 2016.

Procurement Technology 
Adoption vs. Satisfaction

One of the key findings Richard highlighted in this year’s report was the disparity between the high adoption of, but low satisfaction with, procurement technology.

In European countries all of the components of procurement technology have more than 50 per cent adoption. Core technologies such as P2P, eSourcing, Contract Management and Spend Analysis above 70 per cent.

However, only 1 in 5 survey respondents believed their technology solution was best in class or state of the art. One of the key reasons behind this, is that procurement are often left with a version of a legacy system, leading to low satisfaction.

Richard stated that, “These ‘best of breed’ procurement systems do exist, but it’s really only in the e-Sourcing area that state of the art tools are more prevalent.

“There is still a pent up demand for these best in class tools. These would help organisations make a step-change in performance, but many organisations are forced to make do with what they have.”

Supplier Performance Management

Richard believes that having the tools and technology available to enable closer collaboration with suppliers, will in turn drive innovation. These tools can help to measure the value of contributions that suppliers can bring to the table.

Richard stated that the more advanced procurement teams are already using technology to get closer to their supply base, and bring forward the best ideas for profit enhancement.

In addition to this, automation and procurement technology can help to significantly reduce manual, transactional activities, helping procurement get more from their resources, and at the same time enable the profession to be more strategic.

Spend, Perception & Risk
Spend Under Management

The Pulse of Procurement report also highlighted encouraging signs in the management of enterprise spend by procurement. In 2016, 26 per cent of the respondents have achieved an average of 80 per cent of spend under management.

These best in class performers have gone down the path of better stakeholder management and involvement. This allows them to access traditional ‘sacred cows’ of marketing, legal and IT spend.

However, according to Richard, there is still room for improvement. “The weighted average is only 57 per cent spend under management. If you’re average, you’re barely getting over 50 per cent of your spend managed.”

Perception

The report supports the idea that procurement is more of a strategic partner for the business now in many regions. This positive perception, and better visibility with stakeholders is more important, particularly in light of budget pressures.

In Europe, 9 out 10 leaders highlighted a positive perception of procurement by the C-suite. However, this region also has the greatest budget pressure. The majority of European respondents said that procurement budgets for 2016 were either flat or declining. This has led to teams being asked to do more with the same, or more with less.

In Asia-Pacific, the strategic role of procurement is still developing. Richard said, “There is an opportunity for Asia-Pacific to catch up this lag. As you start to manage the spend, the possibilities for savings are better. In fact, the savings goals for procurement are actually highest in this region as they address these categories for the first time.”

Risk

For the first time, supplier risk management fell out of the top 5 priorities for procurement in North America, although it remained in the top 5 in Europe. While this is probably reflective of the current macro-economic conditions in Europe (Brexit; political instability), it does show a potentially short-sighted approach in North America.

In better economic conditions, it’s easy to let risk fall down the ladder. And with less volatility in America, even with a Presidential election coming up, organisations may have changed their focus. However, as Richard states, now is not the time to take your eye off the ball on risk.

“The more mature procurement organisations are doing a better job of managing supply risk. They realise the cyclical nature of risk and the potential for a downturn, and understand the need to be more prepared. However, there is still a significant component who are tactically focused, and dealing with the current reality, rather than looking ahead.”

Pulse of Procurement

Finally, we asked Richard why procurement professionals should download the Pulse of Procurement report. For Richard, it was as simple as saving yourself time with data analysis, and getting a better view of the world outside your organisation.

“For most organisations, everyone is stretched, doing more with less. People tend to have a myopic view of what’s going on in their organisation, without seeing the bigger picture. They can’t readily benchmark themselves against the wider function.

“The Pulse of Procurement report gives you the chance to have data synthesised for you, and to gain some context as to how you compare to the function overall. This then allows you to see where you are leading and lagging in comparison.”

You can download the Pulse of Procurement report on the Zycus website. For more information on how to be involved with the next Pulse of Procurement survey, contact Zycus.

Big Ideas Summit 2016: Big Idea #5 – Eliminating Supplier Enablement

Gabe Perez believes that procurement needs to move towards real-time services, and eliminate traditional supplier enablement processes.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Gabe Perez, Vice President, Strategy & Market Development at Coupa Software, believes now is the time for procurement eliminate supplier enablement, and move towards the real-time services we have in our personal lives.

Gabe also believes that it’s now time for procurement, and the wider corporate world, to refocus their objectives to place value at the centre of all activities, as well as create and participate in open networks where collaboration can thrive.

Catch up with all the thought leadership and ours delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

If you want to find out more about Big Ideas 2016, and what we have planned for 2017, you can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today, and connect with over 15,500 like-minded procurement professionals from across the world.

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.

Big Ideas Summit 2016: Big Idea #3 – Harnessing Cognitive Technology

Barry Ward says that the procurement technology landscape is fundamentally changing and moving towards the use of cognitive technology, impacting the skills required in procurement in the future.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Barry Ward, Procurement Brand Manager, Global Business Services at IBM, believes that, in order for procurement to successfully demonstrate the value it adds to organisations, it will have to bring in the right people, with the right skills, to allow it to harness the power of cognitive technology.

Catch up with all the thought leadership and ours delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

If you want to find out more about Big Ideas 2016, and what we have planned for 2017, you can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today, and connect with over 15,000 like-minded procurement professionals from across the world.