Earlier in the week, Procuri announced their latest financial and customer results. I won't drill into the growth numbers -- the press release speaks for itself, and the percentage increases look good -- but I will highlight the growth of one area which I think speaks significantly to where the future of On-Demand Spend Management growth will come from. And that's spend analytics and visibility. Earlier in the fall, Procuri acquired TrueSource and renamed the product Procuri TotalAnalytics. Based on what I'm seeing in the market of late, it would appear that deal size and volume in the spend analytics and visibility arena is increasing significantly. In fact, I'd wager it will be one of the more exciting markets within the Spend Management applications and services arena in the coming year (especially as companies begin to combine traditional financial driven spend analytics with supply performance and supply risk).
While Procuri has been relatively quiet about the traction TotalAnalytics is getting in the market, I would wager that they're following the Benjamin Franklin adage: "Talkers are no great doers". For in this case, the traction, especially if you dig below the surface and look at how the solution is being deploying, is interesting indeed. From a more traditional implementation perspective, Toyota (both the motor credit and the motor sales divisions) have signed up for the product to drive basic visibility into spending and category data.
But others are using the product in more innovative ways on the corporate development side of the house. Consider the case of a pharmaceutical company -- who will go unnamed -- which has used TotalAnalytics to help quantify and accelerate procurement cost savings synergies in three multi-billion dollar acquisitions. This company has used the solution's capabilities to define and track over 60 category management programs, enabling them to leverage spend and rationalize suppliers across acquired and existing divisions. If this use of spend visibilty and analytics is not truly strategic to the business, then I do not know what is. Or consider the case of an industrial manufacturer and distributor who uses the the same solution to help assess the synergies of potential acquisitions, enabling them to build a more accurate business case before diving into deals.
Certainly Procuri is not alone in offering an On Demand spend visibility capability targeted at analyzing and realizing M&A synergies. But these specific examples highlight to me how spend visibility and analytics applications can become such an invaluable solution for tactical everyday procurement activities as well as areas that are truly strategic on the board level. Given the rising importance of this subject and solution area, you can bank on the fact that I'll continue to explore it on these virtual pages in the coming weeks and the New Year.