Change Management Content

Despite power of data, many organizations lag in making it key to their decision-making culture, a Deloitte survey finds

In today’s hyper-connected, data-driven business world, the amount of available data is overwhelming. And while the concept of “big data” has been around for more than a decade, many companies are still lagging when it comes to using that data to make decisions. Insight-driven organizations (IDO), according to a recent Deloitte survey, are those that have made a transition to relying on data and analytics, instead of intuition, to make many of their business decisions. Technologies, led by artificial intelligence (AI), have the ability to support these insight-based decisions, giving companies a competitive advantage when they integrate them.

Coupa’s 3 Special Forces Teams (Part 3: Value Engineering + Customer Success) [PRO]

In the final installment in our series covering Coupa’s 3 Special Forces teams (see Part 1: Corporate Development and Part 2: Alliances + Business Development), we cheat a bit from a series title perspective. And that’s because Coupa’s final special forces team essentially represent two functions in one (although they are in fact different groups): value engineering (sometimes called “value optimization”) and customer success.

Our analysis today begins by defining what value engineering and customer success functions do (and not do) for enterprise software/Saas/cloud companies. Then we provide the details behind Coupa’s programs. And finally we explore how Coupa leverages these two areas in ways that disproportionately benefit its broader operations in business spend management (BSM).

Jason Busch serves as Managing Director of Spend Matters Nexus, a membership, research and advisory organization serving technology acquirers (private equity, corporate development, etc.) and CEOs. The views expressed in this research brief are his and do not necessarily reflect that of the Spend Matters analyst team. But he would like to thank his colleague Pierre Mitchell for his review and input on this piece, given his deep experience in this area. Research note: This brief is based on extensive primary research. Beyond already available public information, no data or insights were provided by Coupa. However, a fact-check was provided to Coupa for informational purposes to ensure accuracy.

Workers’ Digital Skills Gap a Key Challenge for Businesses, The Hackett Group Says

Digital transformation has and will continue to have far-reaching consequences in manufacturing, purchasing, compliance, advertising and just about every other function in the business world. Another function to add to the list, according to the April 2019 Hackett Group study, will be hiring and training of existing and incoming employees.

The Next-Generation Talent Profile: How Will You Fill the Digital Skills Gap focuses on how the procurement function in particular will need to train and improve their existing workforce, because the demand for skills and knowledge like strategic thinking, smart automation, social media, creativity and innovation, and process excellence will far exceed supply over the next three to four years. The Hackett Group notes that research by the World Economic Forum indicates that more than 50% of existing workers will need to be reskilled or upskilled by 2022.

Automation, digitization, global trade pose challenges for business leaders, report says

A new report by The Economist Intelligence Unit, sponsored by Basware, is shedding light on how technology innovation and shifting global trade dynamics are challenging businesses.

The report considers three trends — automation, digitization and shifting trade dynamics — that finance and procurement executives expect to affect their companies most, what their impacts will be, and how business leaders are preparing for the developments. The report’s findings are based on a survey of more than 400 finance and procurement leaders in the U.S., the UK, France and Germany.

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Finding the Right Fit and Function for Your Procurement Vision

Most procurement departments would agree that introducing a category management structure is a good way to secure the best-in-class status they crave. On the tactical-to-strategic spectrum, it’s still a notch below “trusted adviser” status, but it’s several more notches removed from reactive purchasing and the three-bid-and-buy mentality. While they’ve largely got a consistent end goal, procurement departments vary wildly when it comes to progress.

Many are still hard at work introducing even a foundational level of strategy. Others are mired in damage control after trying and failing to build a more strategic procurement function. Even those exemplary departments that can call category management a next step have a lot of work ahead. Like their less advanced peers, they’ve got to change their organization’s mindset if they want to truly transform procurement. To transform the function, they’ve got to first change the way other business units perceive and engage it.

SAP Intelligent Spend Group is future for Ariba, Fieldglass, Concur (Part 2): Hard Questions on Integration [PRO]

integration

In late April, SAP announced its “Intelligent Spend Group,” a combination of SAP Ariba, SAP Fieldglass and SAP Concur. As the new operating unit eventually becomes “one” from a product perspective as well, it is important to realize the level of complexity that SAP will confront along the way. For example, SAP Ariba product managers have to deal with their individual platforms/ecosystems (SAP Ariba, Fieldglass, and Concur), but also with integrating to the Ariba Network, relevant SAP applications (e.g., Integrated Business Planning), with partner apps in each of those ecosystems, and the move toward an SAP-centric application stack and platform stack.

For example, SAP has its own journey from ECC to SAP S/4HANA in the cloud via S/4HANA Cloud Foundation, S/4HANA Cross Engineering, S/4HANA Enterprise Architecture, and other toolsets. S/4HANA then needs to integrate to the SAP Cloud Platform applications that will themselves need to integrate with each other as they slowly migrate to an underlying SAP Cloud Platform that includes a range of areas described in this second of three briefs in Spend Matters' PRO research series.

It’s not simple to run — unlike SAP’s old slogan of “Run Simple” used to say.

Don’t Forget the Big 4 Questions to Ask During Any Mega-Acquisition

Four years ago, during the last big M&A frenzy, I published a post on my Sourcing Innovation blog on The First 4 Questions to Ask During Any Mega-Acquisition that is still just as relevant today as it was four years ago.

And while it was very direct and maybe even a bit confrontational, sometimes it’s a good idea to be direct because sometimes you need to let the new vendor know you’re not in the mood for any shenanigans. The reality is that while some mergers and acquisitions are with the intent of creating a better combined company that can better serve the respective customer bases, not all mergers and acquisitions are done for this reason. Some are done just to eliminate competition, and others are arranged by investors for the sole purpose of a short-term money grab (which will be accomplished by a short-term PE sale or initial public offering once the balance sheets are puffed up and the overhead reduced).

So, without further ado, let's get to the four questions you should ask to find out whether you and your new vendor are on the same page.

UPDATE: With Barry Padgett leaving SAP, what’s next for new Intelligent Spend Group? [PRO]

Barry Padgett has left SAP only weeks after being named president of the newly created SAP Intelligent Spend Group (ISG), a combination of SAP Ariba, SAP Concur and SAP Fieldglass.

Padgett had previously served as president of SAP Ariba, before being promoted to the new role as leader of the combined group. Spend Matters sources suggest he has accepted a new role as chief revenue officer for Stripe, a payments company, although this is unconfirmed at this time.

SAP’s Intelligent Spend Group told Spend Matters that Mike Eberhard, formerly president of SAP Concur, will take over for Padgett, at least as an interim leadership move. Eberhard had previously planned to “step back” from a daily role at SAP in Q3 to serve as an adviser. While on the surface, the move to promote Eberhard on a temporary basis may seem like a GE “moving around the management chess pieces,” type of maneuver, Eberhard has a unique foundation from which to sit on top of the combined organization at a pivotal time.

Not only has Eberhard had sales leadership experience and significant growing, global commercial responsibilities within Concur in the past decade, he brings leadership depth from other areas of procurement, payables and supplier management solutions earlier in his career. This includes holding previous P&L responsibilities for SAP Ariba, Xign, Peoplesoft and D&B.

Based in part on his diverse set of experiences in the “spend” universe, including P&L leadership within a number of different business cultures that sold to different economic buyers, we are enthusiastic about the selection of Eberhard as at least a temporary leader of the SAP Intelligent Spend Group.

But as Eberhard perhaps channels Constantine the Great, one of the great “uniters” of different factions in Roman history, he will nonetheless face a range of challenges on multiple fronts — internal and external — as SAP plans for simultaneous battles at the same time as it brings together three best-of-breed solutions under one roof, one that ideally represents more than just a united fighting commercial front.

Leadership Required on Simultaneous Fronts

The remainder of this research brief introduces some of the campaigns that SAP’s Intelligent Spend Business group will need to simultaneously embark upon if it is to align what is in the interests of customers and shareholders over the long term. We see three main fronts that SAP must target at the same time.

Before exploring these, we should note that Padgett left the SAP Intelligent Spend Group before having a chance to substantively make a mark on this newly created business unit. His departure at a formative, pivotal moment gives the opportunity to Eberhard (and/or a future leader) to chart a course for the future of a common SAP Ariba, SAP Concur and SAP Fieldglass at a time in which all three former independent operating units face new dynamics.

PRO subscribers can read more about the three fronts that SAP faces.

Read our analysis of SAP Intelligent Spend Group and SAP’s Ariba, Concur, Fieldglass for the last 12 months

Today's news about SAP’s change in leadership at its new division ("Barry Padgett Leaving SAP and new Intelligent Spend Group") had us thinking about Spend Matters’ analysis of the group recently forming and our ongoing coverage of its components: SAP Ariba, SAP Concur and SAP Fieldglass.

Since early 2018, Spend Matters has given PRO and SolutionMap subscribers deep insights into their solutions, including a comparative analysis of SAP Ariba’s S2P offering and a look at SAP Fieldglass’ Digital Network. Subscribers also have gotten head-to-head comparisons of SAP Ariba with competitors like Coupa, Ivalua, Basware, Tradeshift and GEP. (For companies considering SAP’s procurement solutions, Spend Matters’ SolutionMap Technology Selection Services are also available for procurement organizations that want a one-to-one map between their own business requirements and functional performance).

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For CPOs, Life Is Getting Complicated

During a routine meeting with one of our clients, the Chief Procurement Officer at a large Fortune 500 company, we were struck by something this person said: “I feel like I’m wearing so many hats these days, I need a hat stand to keep them all in one place!” Our client’s observation encapsulated something we were starting to see more often: a dramatic broadening of the role of the CPO.

A mere decade ago, a CPO’s job, while often difficult, was relatively straightforward: Find the best deal possible when sourcing raw materials or setting up production. But increasingly, that’s a fluid concept. What’s more, the changing nature of both technology and the manufacturing workforce has pulled CPOs into decisions that were once outside their purview.

Intrigued, we wanted to delve deeper into this trend, and we decided that this would be a fascinating area of focus for our annual “Chief Procurement Officer Survey.” Every year Deloitte conducts this global, cross-industry study to take the pulse of sourcing and procurement professionals. So, this year we’ll be exploring the role of the CPO — how it is evolving, and how procurement leaders are navigating and mastering complexity in the areas of technology, workforce management, and both the business and political environment.

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Better Business in a Digital World: The Need for Corporate Digital Transformation

The planning and vision for digital transformation starts at the top, but the change itself is driven from the bottom where it can be built piece by piece, ensuring the strongest foundation possible.

Important decisions must be made if a company wants to continue growing. Nowadays, decisions shouldn’t be made off instinct alone. Gut feelings aren’t enough. People will always have the final say, but their decision should be based on strong insights from trend analyses using big data to reveal patterns to better future-proof their businesses.

What should you expect from a corporate digital transformation strategy? Read on.

CRO-to-CRO Video Series: Episode 3 Peels Back the Digital Procurement Platform Onion

So you’ve decided your procurement function needs to “go digital” with its software solution needs.

But where to begin? How do you buy this stuff?

“You start with having your business challenges in mind,” says Michel Janssen, one half of the "CRO-to-CRO" discussion pairing we've been spotlighting with a series of videos over the last couple of weeks.

Recently, Janssen — chief research guru of Everest Group, a research and management consulting firm based in Dallas, Texas — had a chance to sit down with his  former colleague Pierre Mitchell, chief research officer of Spend Matters.

In Episode 3 of this video series, the two CROs share a comprehensive framework they call a digital capability platform, which paints a holistic picture for prospective buyers. Ultimately, through this framework, Janssen and Mitchell uncover what is available to buy (point solution or suite?), how a buyer can bundle solutions and/or capabilities, and who owns — or should own — the responsibility for digital decision making.