Historically, man reaped what he sowed. Without sunlight, however, nothing grows. One of the many challenges lurking in the shadows of eProcurement and e-invoicing implementations is that processes and systems must trudge ahead without sunlight. Reporting is periodic, insight is low, and the effort is too much.
What’s needed is a new class of analytics. They shouldn’t be layered on top of the process but be built instead into the processes themselves. This can drive dramatically better end-to-end performance for existing implementations while helping new ones get started. In the case of P2P, including external content and intelligence to provide better visibility, hard data, business case inputs, guidance on compliance/controls, etc. is necessary.
Such insight should help formulate why to adopt, who needs to adopt, how it should work end-to-end, the money being left on the table, etc. Distilled to its essence, adoption is about a gap to a realistic ideal state. If you can't measure as is or create a compelling to-be, nobody will really care if you're adopting or not. You need a compelling case for adoption before you can adopt. With better analytics and visibility, it’s possible to build this case from the start.
Keep in mind that spend analytics and spend visibility are different from broader procurement analytics or analytics directly linked with an eProcurement system usable by those in the business. That would be budget holders, controllers, frontline users, etc., as opposed to simply the sourcing and category teams. This might include top purchased items by contract, with expiration dates highlighting exactly what needs to be resourced for transactional real-time reporting in the procurement application itself.
Download the full paper on which this post is based: Avoiding “Dumb Ways to Die”: eProcurement and P2P Style Adoption Scenarios to Breathe Life into Implementations. The paper, authored by Spend Matters Chief Research Officer Pierre Mitchell and Jason Busch, is available for free download in our Spend Matters research library.