Even though Aberdeen's new leadership structure has not yet been announced in advance of Jamie Bedard's soon-to-be-official departure as CEO, one thing's for sure. And that's Vance Checketts, Aberdeen's lead analyst in the Spend Management sector, should be a part of it (even though I fear it would detract from his excellent research). For those who don't know Vance, he's extremely polished, passionate and knowledgeable -- all of the characteristics which make for an exceptional industry analyst and industry pundit.
What did Vance have to tell the near standing room only crowd in his break-out session he led last week at Ariba LIVE? The answer is a number of entertaining, insightful and useful factoids and observations that that he did not sugar coat (much to the chagrin of Oracle and SAP, I'm sure). One of his more entertaining quips focused on how companies "that have unused ERP SRM seats" should "go back to their ERP providers and ask to exchange the licenses for HR, financials, training credits" or related, more valuable items. That's because according to Vance, there's far too much ERP SRM shelf-ware out there. In addition, Vance believes that procurement organizations need to "stop rogue projects and niche deployments" in favor of "driving to a single P2P platform".
Vance is unapologetic in his belief that companies which have adopted best-of-breed (BoB) E-Procurement solutions often realize better results than those who have gone the ERP route. According to Aberdeen's research, 36% of organizations using a best of BoB solution have 5,000 or more users of the application. This contrasts with 0% percent for ERP SRM customers. In Vance's words, "best of breed completely drove 'best in class' results in this performance metric". In contrast, 40% of ERP E-Procurement implementations had 100-500 users (compare to BoB at 18%). Aberdeen also found that 25% of ERP implementations had 500-5000 users (compare to BOB at 18% here as well).
All in all, Vance's findings were a scathing indictment of the adoption patterns for ERP E-Procurement deployments. Stay tuned for a second post on the subject with some additional factoids that are just as incendiary and further proof that best of breed E-Procurement is alive and well.