LIVE Dispatch: Vance Checketts Unplugged (Part 2)

If some of Vance's best of breed (BoB) versus SRM E-Procurement findings from my earlier post piqued your interest, then you'll be even more curious to learn about some of his other, related findings regarding the results that procurement organizations achieve given their respective technology paths. Consider that among best-of-breed deployments, 20% of implementations include over 1000 suppliers, versus 0% for ERP E-Procurement.

So just how many suppliers are ERP E-Procurement deployments enabling on average? It turns out that 92% of ERP-driven efforts implement only 0-100 suppliers (8% had 0-1000 suppliers enabled). Compare this with BoB deployments, where 60% had 0-100 suppliers enabled and 20% had 100-1000 (in addition to the 20% who had over 1000+ suppliers enabled) and it becomes clear that non-ERP E-Procurement users are achieving significantly better results and returns (Aberdeen's numbers regarding percentage of dollar volumes enabled and percentage of transactions enabled support this thesis as well).

Now, in all fairness to SAP and Oracle, the quality control and sample size of Vance's research is not something that I'm intimately familiar with (nor are Aberdeen's benchmarks and numbers anywhere near the level of detail or thoroughness of Hackett's numbers). But I have a hard time believing that these numbers are not directionally accurate, at the least. One wonders what the ERP borg are in the process of doing to combat these findings. I can almost see a "paid" Nucleus or IDC study in the works that attempts to come up with a different picture ...

Jason Busch

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