The combination of Tradeshift and IBX changes the procure-to-pay (P2P) competitive landscape. Last week, we reported on the transaction and offered an initial analysis of what IBX will bring to Tradeshift. This Spend Matters PRO research brief provides an initial analysis for current and potential customers and partners of Tradeshift and IBX. It also provides insight and analysis on how the transaction will alter the competitive landscape.
Tradeshift announced earlier this week it would acquire IBX Business Network from Capgemini, the previous owner of the procurement technology and supplier network provider. Spend Matters analysts Xavier Olivera and Jason Busch recently had the chance to speak to the Tradeshift team about the acquisition. They, along with other members of the Spend Matters research team, have spent time reviewing IBX’s source-to-pay solution in detail.
This Spend Matters PRO analysis provides an expert solution perspective on what IBX brings to Tradeshift, including IBX’s strengths in the e-procurement area. It also provides a brief discussion on how Tradeshift plans to integrate IBX into its solution portfolio, including planned (rapid) migration. Finally, it includes a March 2017 SWOT framework and March 2017 summary company analysis and graphical comparative overview of Tradeshift’s solution footprint and capability (inclusive of IBX) across the source-to-pay continuum in the sourcing, analytic, contract management, supplier management, e-procurement and invoice-to-pay functional areas.
Additional Spend Matters PRO analysis to follow in a subsequent research brief will include customer recommendations, partner recommendations and an analysis of the changing competitive landscape for source-to-pay suites, networks and platforms. Additional Spend Matters news coverage will share what we learned from our discussions with the Tradeshift team following the announcement.
Beyond the Traditional SRM Scorecard: Supplier Management Metrics to Diagnose Your Supplier Management Operations (Part 1: Search and Enablement)
In recent years, prominent procure-to-pay (P2P) providers have increasingly offered opt-in peer benchmarking capabilities. This newly available data has changed the way consultants and advisors evaluate procurement performance. Benchmarks and key performance indicators (KPIs) once analyzed on a periodic basis, for instance, are now becoming embedded into procurement processes and continuously updated with new information as it becomes available.
Because of this, procurement organizations are becoming increasingly aware of the benefits measuring performance based on a standard set of benchmarks and KPIs can bring to overall P2P performance. Yet the same cannot be said of supplier management activities, despite the significant cost and risk they pose to procurement. In fact, Spend Matters has found that most procurement organizations are not yet measuring a complete set of KPIs to manage the lifecycle of supplier activities and associated supplier information. Solution providers have not helped this situation, either, instead glossing over supplier management in favor of KPIs and peer benchmarking services in core transactional procurement areas.
It’s time to change this. To give procurement organizations operational metrics that mirror the KPIs available in P2P, this multipart Spend Matters PRO series provides an action guide for measuring and quantifying some of the benefits of "day in the life" operational supplier management activities. It also provides a roadmap and foundational input for building a business case to support these initiatives, including investments in dedicated technology solutions and tactical KPIs for managing them.
Part 1 of this series offers diagnostic KPIs for self-assessing supplier search and enablement performance. For each metric, we include commentary and insight on why it matters to procurement, guidance on enablement and measurement, suggestions for procurement technology systems that can be used for support and variable inputs for tracking.
We also encourage all Spend Matters readers, including non-Spend Matters PRO subscribers, to download our recent 2017 landscape definition and overview on supplier management and supply risk management, which provide details on the different technical components of these solution areas.
Coupa announced early Tuesday it had acquired Spend360 International Ltd., a best-in-class spend classification vendor. Coupa “has acquired substantially all of the assets of Spend360 International Ltd. to help companies digitize antiquated processes for data classification,” the company said in the acquisition announcement. Coupa noted the acquisition closed in December 2016 and that financial terms were not disclosed. Further, “Coupa expects the capabilities from Spend360 to be made available to select Coupa customers later this year. As part of the acquisition, the Spend360 team has joined Coupa to continue developing forward-thinking approaches for data classification and predictive insights.”
Come on. Admit it. You (or a friend) have used a dating application with no intent of finding a lasting relationship from it. In many ways, seeking and getting into such a one-off, short-term relationship is akin to using a standalone procurement module to achieve a means to an end (e.g., identified cost savings through a sourcing event). But long-lasting partnerships and marriage are different. These both require the equivalent of tightly integrating specific needs from each “source system” — and even true “integration” in the form of joint finances, (i.e. “closing the books” together).
In September, the Spend Matters analyst team had a briefing with the executives at Determine (previously Selectica), which included discussion on the provider’s future plans and challenges it expects to face in rolling out its new integrated source-to-pay (S2P) global offering. But how close is Determine to truly becoming an integrated suite versus a loosely coupled set of assets? Today, we analyze some of the challenges and opportunities the provider faces overall and what types of organizations are likely an “ideal” customer for Determine compared with Coupa, Ariba and other providers. We also provide a succinct Q4 2015 SWOT snapshot of the provider.
The march to procurement suites is inevitable, and Selectica (now known as Determine), is headed down this suite path. Earlier this month, Selectica announced its rebrand to Determine — a move the company says signifies the M&A strategy that Selectica has been executing over the past two years. This two-part Spend Matters PRO analysis examines the past, present and future of Determine, starting first with offering a current window into the state of the organization and where it is headed, as well as our 2015 graphical CLM market snapshot and how Determine fits into this complex market segment. We analyze Determine’s rebranding, exploring whether this is primarily a marketing exercise today — or something more. We also take a look at who the “new” provider’s ideal customer is, and how the company can gain their attention.
Spend Matters PRO procurement tech coverage is often deep – and dare we say esoteric – for those that aren’t true procurement geeks like us. To learn more about SciQuest on a more manageable level for those not yet deep in modular feature/function comparisons or selections – including a true SWOT analysis that goes deep on all 4 letters – we prepared a graphical PDF highlighting our view of the provider along with a summary of actual market trends driving adoption of both point solutions and suites today and tomorrow. Spend Matters PRO subscribers can download this graphical analysis of SciQuest here.
Spend Matters PRO procurement technology coverage is often deep – and dare we say esoteric – for those that aren’t true procurement tech geeks like us. Much of our coverage of procurement tech provider SciQuest falls into this category. For those who have not gone into the modular weeds – including a number of its customers – SciQuest is somewhat of an enigma. And it was to us as well until we invested the time to understand all sides of the provider. To help our readers, we recently prepared a graphical PDF highlighting our view of the provider along with a summary of actual market trends driving adoption of both point solutions and suites today and tomorrow.
Earlier in the month, Infor announced it would acquire GT Nexus, a move that appears to strategically position Infor as a supply chain platform and network provider – 2 concepts that are related, but different. The deal represents something very different than just being a holding company for old ERP systems and a developer of a new cloud-based application suite/platform that will integrate and eventually replace them. But the combination of the 2 firms is not as simple as combining both internal and external enterprise worlds. We’ll concentrate our analysis on how Infor and GT Nexus fit together as an integrated supply chain business solution.
Hubwoo announced yesterday that Perfect Commerce has made a cash offer to buy all the shares in the Paris-based procure-to-pay software company for €26.6 million (about $30 million). This equates to a share price of €0.19 Euros – a near-36% premium over its last share price. This "bargain basement" purchase price (slightly less than 1 times of trailing revenues) could put the struggling Hubwoo under the control of a parent corporation registered in Luxembourg (even though Perfect is a decidedly US-centric firm). Spend Matters will follow up on this news with detailed analysis and implications of the deal, but our initial thoughts point to an opportunity for Perfect to expand its customer base, geographic presence and its supplier network capabilities – and also a way to defibrillate Hubwoo, which has been floundering since SAP acquired Hubwoo’s largest competitor Ariba. Members of the Spend Matters team react to the news, offering their initial analysis.
Yesterday, Tangoe announced it was purchasing the Rivermine business from IBM. Rivermine, a telecom expense management (TEM) provider, was part of the Emptoris product line. It was acquired by the sourcing suite vendor the same year that IBM announced it was acquiring the overall business in 2011. In the press release announcing the acquisition, Tangoe said, “IBM’s Rivermine TEM business includes comprehensive fixed and mobile telecom expense management software and related services, as well as a global blue chip customer base. The business fits particularly well within the core of Tangoe’s broader Matrix solution suite, which helps clients turn on, track, manage, secure and support its IT assets, expense and usage including mobile, fixed, machine-to-machine, cloud software and services, enterprise social and IT.” Read the full story to get our take beyond the numbers...