Author Archives: Andrew Karpie



Ivalua: Vendor Snapshot (Part 7) — Competitive and Summary Analysis

contingent workforce

So how does Ivalua — previously the Rodney Dangerfield of e-procurement for getting no respect, but now is no laughing matter to its competitors — stack up to the market? In this seven-part PRO overview, Spend Matters has covered Ivalua’s history, internal capabilities, strengths and weaknesses. But to see how it fits into the marketplace, first we have to understand who it is up against. Namely:

* Full Source-to-Pay Suites, including SAP Ariba, Coupa, GEP, Jaggaer, Zycus, Corcentric/Determine, Synertrade, and even Oracle and a few others (e.g,. Wax Digital)
* Full P2P Suites, including Basware, BuyerQuest, Oracle, Vroozi and others
* End-to-End and Best-of-Breed “upstream” Sourcing and Strategic Procurement Technology (SPT) Offerings, including Allocation Network, Bonfire, EC Sourcing, Keelvar, MarketDojo, Scanmarket, * ScoutRFP and more
* e-Invoicing and e-Payment Specialists, including Proactis, Taulia, Tipalti, Transcepta, Tradeshift, Tungsten and others
* Supplier and Master Data Management (MDM) Providers, including Apex Analytix, Aravo, ConnXus, HICX, Procurence, Tealbook and others that don’t slot neatly into the supply management area within SPT.

We'll start by providing a more detailed overview of Ivalua's biggest competitors, namely SAP Ariba, Coupa, GEP and Jaggaer, before covering the rest of the S2P providers that it may encounter in potential deals.

Ivalua: Vendor Snapshot (Part 6) — Commentary & SWOT

As we noted in Part 1 of this seven-part Spend Matters PRO series, Ivalua is no longer the Rodney Dangerfield of procurement suites, and we no longer need to apologize to the late comic. Since we last assessed Ivalua in-depth in 2016, the provider has achieved a lot of respect from the analyst community, the investment community (with a “unicorn” valuation exceeding $1 billion in their last funding last round), and most importantly, the customer community as evidenced by Ivalua’s 98% customer retention rate — even though Ivalua’s customer satisfaction scores have slipped slightly in its last SolutionMap rankings.

However, the firm’s larger peers still often seem quick to dismiss this “newcomer” to the S2P arena, even though Ivalua was founded in 2000! As a perceived newcomer in the North American marketplace, with a smaller customer count, less revenue and less perceived history, it still is often not even known, or well known, to some practitioners that we’ve run across who’ve not research the market deeply. This is despite the fact they Ivalua has:
* almost as large of a global presence (with offices across the Americas, EMEA and APAC)
* a track record of supporting a global customer base
* a valuation that smaller S2P players might sell their workforce into indentured servitude for
* a platform that is simultaneously so broad and so deep that it's becoming difficult for many of their peers to compete on out-of-the-box functionality, especially in the direct materials/sourcing space, in larger clients with extensive requirement lists.

As we noted in late 2016, “if we add up the differentiated combination of its architecture/platform, industry enablement, functional/modular capability (across the source-to-pay continuum), analytics and ‘overlay’ process support capabilities, the sum of the Ivalua package stands out from all others in a true ‘deadpan’ way — albeit with no laughing involved.”

When you augment this with leading direct sourcing support (with the re-platforming of its DirectWorks acquisition), improved workflow management, UI improvements, one-search, improved (direct) catalog management and bot-assisted guided buying, you get a platform that's a force to be reckoned with.

In short, Ivalua deserves much more regard from its peers than it has received to date, as it's well positioned to make a big dent in the global marketplace that will be hard not to take notice of. That said, some parts of the application suite can be improved (as we discussed in Part 5), there is a lot of unexpected capability under the hood around bill of material management (in a centralized module that allows for deep what-if scenario analysis), asset and tooling management, program and project management, third-party data integration and scorecard creation, accruals, and global tax compliance management. Plus, the cost breakdown analytics, NPI (new product introduction), corrective action capability, extended supplier profile management, and the ability to pull data into and push data out of the environment on a daily (or even hourly) basis is deeper than one might expect, especially with the large number of pre-configured interfaces out-of-the-box and the ability to acquire more through the add-on store.

And while Ivalua is still not perfect (but to be honest, no provider is), as it's still missing a few capabilities that we feel are becoming core with S2P (and even its updated UI is not industry-leading), we still believe that anyone who invests the time to get to know the solution on a product level will come away very impressed if they have the same technology-and-capability-centric proclivities as the Spend Matters team (even if it's not the right "fit" for the organization at the end of the day).

So, without further adieu, in this penultimate installment of our updated Spend Matters snapshot on Ivalua, we provide you with an objective SWOT analysis of the company, and a selection shortlist to help companies decide whether Ivalua should be in their crosshairs, whether they have their sights set on a platform, suite or modular capability.

Tomorrow, in Part 7 we’ll finish up with a competitive market segmentation, a comparative analysis and some final thoughts. We also include recommended short-list candidates as alternative vendors and offer some provider selection guidance.

VMSA West — A Breath of Fresh Air for Contingent Workforce Conferences

This week, on Aug. 14 and 15, I had the opportunity to attend the VMSA West conference held right on the coast in beautiful Half Moon Bay, California. This was the first conference on the West Coast for VMSA, which wanted to create a contingent workforce event more accessible to businesses on this side of the country (the annual flagship conference VMSA Live is held annually in Florida). About 130 ecosystem professionals (a balanced mix of buy-side, MSP, supplier and other providers) met in an intimate setting to breathe, explore topics and learn from one another.

Ivalua: Vendor Snapshot (Part 5) — Product Weaknesses

global trade

If you've already read Part 1 of our updated vendor snapshot on Ivalua (which includes a detailed company and solution overview), then you know that you're either going to be attracted to the depth, breadth and configurability of the solution — or perhaps overwhelmed by it if you're new to the advanced sourcing and procurement game. But, even with its prowess in deep configurability, Ivalua's solution is not without its weaknesses. In this Part 5 of our seven-part vendor snapshot, we are going to dive deep into Ivalua's product weaknesses, providing facts and expert analysis to help a procurement organization decide whether they should shortlist the vendor. And an organization that is putting Ivalua head-to-head with a provider like Coupa should compare and contrast what we say here versus what we say in Part 2 of our Coupa vendor snapshot because near-equal scores in Spend Matters Solution Map does not imply near equal capability in all areas, and definitely not in the areas that might matter to your organization the most. Ivalua's weaknesses are similar to our last review a couple of years ago, but a few weaknesses have been addressed since last time (and while not as deep, but still exist against either suite-peers or best-of-breed), and the re-platforming of DirectWorks in particular has gone a long way to address specialized support around direct sourcing.

Ivalua: Vendor Snapshot (Part 4) — Product Strengths

Global Risk Management Solutions

Anything Ivalua still lacks in global brand and market awareness along with sales/marketing infrastructure and prowess, it makes up for by delivering a source-to-pay platform designed to emphasize functional depth, suite-based capabilities and industry-specific enablement scenarios in the private and public sector. Ivalua delivers a no-compromise set of capabilities and an underlying platform that is most likely to appeal to procurement and IT organizations that want greater flexibility in executing a procurement technology architecture and strategy than what is offered by the majority of suite-based solutions on the market today. Ivalua is generally at the front of the pack in Spend Matters’ “configurator” persona of just about every SolutionMap we look at for our 2019 Q2 results — and the lead dog if the pack includes only the suite vendors.

If you've already read Part 1 of our updated, seven-part vendor snapshot on Ivalua (which includes a detailed company and solution overview), then you know that you're either going to be attracted to the depth, breadth and configurability of the solution — or perhaps overwhelmed by it if you're new to the advanced sourcing and procurement game. With the massive flexibility that comes with massive configurability, there is also a non-trivial degree of configuration settings to pay attention to. (See Part 2 for an upstream solution overview and Part 3 for details on the downstream capabilities.)

In this Part 4 edition of the vendor snapshot, we are going to dive deep into Ivalua's product strengths, providing facts and expert analysis to help a procurement organization decide whether they should shortlist the vendor. Of course, it’s best to read the SolutionMap analysis for all the providers in question. For example, an organization that is putting Ivalua head-to-head with Coupa should compare and contrast what we say here versus what we say in Part 2 of our Coupa vendor snapshot because near-equal scores in SolutionMap do not imply near equal capability in all areas, and definitely not in the areas that might matter to your organization the most.

Five Scenarios for VMS 2025: Scenario 1 — Status Quo

In this multi-part Spend Matters PRO series, we explore the future of VMS, not because we consider ourselves futurists, but because we think — as stated by my colleague Jason Busch in the introduction to the series — it is “critical for procurement organizations as they have the power to define how these technologies serve them rather than the other way around.”

The introduction laid out the thesis for the series — that the future of the VMS (the long-dominant technology solution model for managing contingent workforce) has become uncertain. Second, it pegged what a VMS is (or was) in terms of the Spend Matters SolutionMap categories saying:

As part of Spend Matters SolutionMaps for contingent workforce and services (CW/S) enterprise technology, we think of VMS as the solution for managing temporary staffing suppliers and workers. That is, within the Temp Staffing map — rather than Contract Services/Statement of Work or the Independent Contract Workforce maps.*

* Some providers of VMS solutions have, to some extent, expanded their platforms to address services/SOW and independent workforce. Hence, the major VMS providers’ solutions address more than just temp staffing. And those could be thought of as broader, but still specialized, solutions for sourcing and managing contingent or external workforce.

The introduction also mapped out five potential scenarios for the future of VMS by 2025: * The status quo, a largely independent VMS ecosystem, continues and new technologies, like artificial intelligence, lead to a better overall VMS experience and even “MSP bot-type” services.
* Integrated VMS and procure-to-pay technology suites gain momentum.
* Managed services providers (MSPs) rule the day as offerings evolve and increasingly leverage software as a competitive advantage (a market that could include new entrants as well).
* Talent management and human capital strike back — people are not widgets, and the VMS must operate in an increasingly dual HR-and-procurement universe in which value and outcomes become as important as price and timesheets.
* Temporary staffing (and hence the VMS) loses its influence as the core technology “anchor” that companies “buy first” when tackling services procurement.


In this part of the series, we look at “Scenario 1 — The Status Quo” in which VMS continues to evolve and flourish as a distinct, specialized enterprise solution (alongside e-procurement and human capital management) for sourcing of temps and, potentially, other forms of contingent workforce and also managing the spend and risk that comes with them.

Note: A scenario is not so much a prediction of a future state as it is the building of one possible future state, carried out with a mix of reasoning and imagination. Ultimately, scenarios are tools that assist planners and executives to think about the future.

Ivalua: Vendor Snapshot (Part 3) — Downstream Solution Overview

supplier network

Ivalua has been growing steadily since Spend Matters’ comprehensive update in 2016, with the suite provider adding clients, offices, employees and capability around the globe. After we provided an updated background in Part 1, we delved into Ivalua’s primary upstream solution components around spend analysis, strategic sourcing, direct sourcing and contract management in Part 2.

Today, this seven-part Spend Matters PRO series will continue our solution overview with a look at the downstream components — namely catalog management, e-procurement and order management, e-invoicing, expense management, payment management and IVA for guided buying. After we review these downstream components, we’ll finish up our solution review with a couple of the cross-platform capabilities around risk and performance management, supplier information management and master data management (MDM). After we finish with our solution overview, in Parts 4 and 5, we will dive into Ivalua's particular strengths and weaknesses from a solution perspective.

Ivalua: Vendor Snapshot (Part 2) — Upstream Solution Overview

gig economy

In Part 1 of Spend Matters' seven-part PRO series, we provided an updated background on Ivalua, which has been growing steadily since our last Vendor Snapshot in 2016, adding clients, offices, employees, customers and capability around the globe. No longer the Rodney Dangerfield of procurement, Ivalua is finally getting some real respect, having just reached unicorn valuation status in its last funding round.

There are a number of reasons for this, some of which revolve around services and global support capability, and others that revolve around its extensive solution platform. The latter is the subject of our articles today and tomorrow, where we will overview all of the major components, starting with the upstream ones today. Then, after we review the downstream components in Part 3, we will dive into Ivalua's particular strengths and weaknesses from a solution perspective in Parts 4 and 5.

The Contingent Workforce and Services (CW/S) Insider’s Hot List: August 2019

Welcome to the August 2019 edition of Spend Matters Insider’s Hot List, a monthly look at the contingent workforce and services (CW/S) space that’s available to our PLUS and PRO subscribers. This edition looks at the new Beeline-Avature partnership; another look at the size and scope of the gig economy; developments in freelancer banks with news from Shine and Revolut; and more ...

Fiverr launches ‘Studios’ to let freelancers form teams and deliver services like an agency

talent management

Fiverr, the online marketplace for creative/digital services, on Tuesday announced its latest product, Studios, which allows freelance workers to self-organize a project to offer an “agency-like team.” Fiverr, which successfully went public in June, and developments like this have been covered extensively by Spend Matters. Upwork just last week launched an “agency experience,” and a couple of years ago, Stanford University created “flash teams” to gather experts to work on projects.

Read more about the capabilities of Studios — and the future of work.

Aon partners with Bunker to enable digital economy companies to manage contractor business insurance

Aon — a leading global professional services firm providing a broad range of risk, retirement, and health solutions — and Bunker, a self-described “instant business insurance and compliance platform for independent workers and enterprises,” announced a partnership to address the compliance management needs of Aon’s growing base of “digital economy” clients. Spend Matters has been following Bunker since its inception in 2017.

According to the announcement, “the partnership provides Aon and their clients access to Bunker’s compliance platform and Live Certificate of Insurance, ensuring an organization’s contractors, independent workers and vendors are compliant with insurance standards in real-time.” Aon clients’ contractors can optionally purchase one of Bunker’s innovative independent worker insurance products.

The following article looks at this unique partnership, based on our own prior research and on conversations with individuals at Aon and Bunker.

Ivalua: Vendor Snapshot (Part 1) — Background

FM Global Resilience Index

A lot has changed since Spend Matters’ last full snapshot on Ivalua in December 2016, when we said (with apologies to the late comic) that Ivalua was the Rodney Dangerfield of procurement suites in terms of not getting any respect. At the time, we clearly noted that “if we add up the differentiated combination of its architecture/platform, industry enablement, functional/modular capability (across the source-to-pay continuum), analytics and ‘overlay’ process support capabilities, the sum of the Ivalua package stands out from all others in a true ‘deadpan’ way — albeit with no laughing involved. In short: Ivalua deserves much more respect than it gets from a market that is typically less familiar with it compared to larger peers.”

Since then, Ivalua has raised two massive rounds of capital, the first in April 2017 when it raised $70 million from private equity firm KKR (to build a war chest to accelerate R&D, expand its global footprint, triple down on marketing and make strategic acquisitions), and the second funding round just a couple of months ago when it raised another $60 million and achieved “unicorn” status. Now it's the envy of its peers, and we know for a fact that the other big players — Coupa, Jaggaer, Oracle, GEP and SAP Ariba — have taken notice.

But before we put the cart before the horse (or, in this case, the analyst’s conclusions before the background and solution overview), we're going to back up and start at the beginning now that you have an idea of what's to come.

Ivalua is one of the few source-to-pay (S2P) providers that has built its end-to-end solution on a single technology stack from the ground up, and one of the fewer still that doesn't try to grow through an acquire-and-integrate approach (like SAP Ariba, Jaggaer and even Coupa), or replatforming (like Determine or Oracle), but rather, develops its own native stack (as has GEP, Zycus, and mostly Coupa). Furthermore, it's also one of the few that has enough depth and breadth across each core area to enable it to serve as a single technology S2P suite for the procurement organization. That should not be a surprise given that the firm has been building this platform in-house on a single stack for the past 19 years while working with a global customer base.

This is important because there comes a point when the overall procurement organization performance beyond sourcing-identified savings and P2P-catalog compliance relies on a single extensible platform approach that goes beyond just functional enablement within procurement. Plus, if you want real automation/RPA, guided procurement and real AI someday — you’ll really want a single-workflow-driven platform that works on a single data store, because no advanced technology works without a sufficient amount of good, clean, harmonized data.

This revised, seven-part Spend Matters PRO snapshot provides facts and expert analysis to help procurement organizations make informed decisions based on Ivalua's source-to-pay capability, its suitability for specific industry segments, its global service and support footprint, and how each of these stacks up to its competition. (Hint: Ivalua is second in four out of five Source-to-Pay and Strategic Procurement Technology SolutionMap rankings, and second in two out of five P2P maps — namely the Nimble and Configurator personas — in terms of analyst score in the 2019 Q2 SolutionMap release.)

Part 1 of our updated vendor snapshot provides a company background and a summary recommended fit suggestion for when organizations might want to consider Ivalua in the procurement technology arena. Parts 2 and 3 provide a detailed solution overview. Part 4 will dive into the strengths, and Part 5 looks into the weaknesses across the product line. Part 6 will provide commentary and a SWOT analysis, and Part 7 will provide a comparative market overview and final summary analysis.