The Industry Analysts Category

G2 Crowd’s Chicago Party: A $30 Million Funding and the ‘No Magic’ Man

I stopped by a party Wednesday that is all too uncommon in Chicago: a tech firm celebration. Specifically, I received an invitation from fellow Enterprise Irregular Michael Fauscette to attend a party celebrating G2 Crowd’s recently announced $30 million funding round, and I decided to take him up on it. G2 Crowd is Azul Partner’s (our parent company) downtown Chicago neighbor and one of the few research/analyst/tech shops in the Midwest. But unlike other tech analyst firms, G2 is taking an approach to tech research centered entirely on crowdsourcing reviews from users — and then analyzing, packaging and publishing the data in various formats.

3 Reasons Why E-Sourcing Providers Have Failed Procurement

Gigster

Many procurement practitioners know the basic components and capabilities of an e-sourcing solution. Yet getting users to fully adopt e-sourcing still remains a perennial challenge in procurement organizations large and small. Many organizations are using their e-sourcing platform on only 25% of applicable events, according to one CIPS study. How can this be, when the technology and purported benefits are anything but new? For several reasons, the provider community at large has failed procurement when it comes to designing sourcing solutions. Here are three reasons why they’ve gone astray — and how to fix it.

Welcoming Thomas Finn to a New Spend Matters Role as Sourcing & Supplier Management Research Director

It wouldn’t be quite accurate to welcome Tom Finn to Spend Matters, given that he has been principal editor of our sister site Healthcare Matters since 2011. But we are excited to announce that Tom is moving into a new analyst role at Azul Partners, the parent company of Spend Matters. He will cover sourcing, contracting and supplier management across industries, including healthcare. And yes, Tom will remain at the helm of Healthcare Matters.

Technology Analysts and NDAs

Yesterday Coupa published a press release announcing that Thomas Kase, a former Spend Matters analyst, joined the cloud spend management vendor. I had the great pleasure of working with Thomas for many years and wish him the very best of luck in his new endeavor. In light of the news, I wanted to take a moment to highlight the confidentiality clauses that a technology analyst must adhere to, a requirement here at Spend Matters and Azul Partners as well as at other firms.

Ivalua Raises $70 Million from KKR: First Take Analysis

Ivalua, a procurement technology suite vendor, announced Wednesday it had raised $70 million in a minority investment round from private equity firm KKR. Originally a France-based firm, Ivalua moved its headquarters to the U.S. in recent years and has continued to expand globally. While terms of the investment — nor Ivalua’s revenue — were not disclosed, Spend Matters estimates the transaction values the firm at less than the price/revenue multiple of Coupa and more than what Accel-KKR paid for Jaggaer (when it took SciQuest private).

Scarfing Down Your Own E-Procurement Dog Food: Going Live Globally With SAP Ariba in 3 Months — An Interview with Dr. Marcell Vollmer (Part 2)

dog food

After taking over as CPO within SAP, Marcell quickly moved to address the e-procurement issue, owing to his previous laptop shopping experience. In 2011, he started an upgrade process to leverage SAP SRM 7. This upgrade initiative would ultimately become sidetracked (although 7.02 workflows into SAP ERP on HANA for vendor invoice management would be deployed) with the acquisition of Ariba. At the same time of this initial technology initiative, Marcell would also begin to put in place a combination of global category frameworks (and support) with local buying centers designed to optimize strategic program elements (e.g., sourcing/negotiation) and minimize transactional costs.

Hype and Reality in Procurement: Pierre Mitchell’s “Improvisational” Talk With Phil Ideson

webinar

There’s a lot more noise out there in today’s hyperconnected world, and the signal seems to be harder and harder to find. Separating the bluster from the information that really matters is a key skill for those working in knowledge-based professions, whether that means finding the supplier that really fits your company’s needs or picking a software solution that can add to procurement’s value proposition. Just how to do this is what Spend Matters Chief Research Officer Pierre Mitchell explained in a newly released episode of the Art of Procurement podcast.

CEO Departures at SciQuest, Basware: Some Personal Musings

road

There’s leadership change in the air at two of the larger procure-to-pay (P2P) technology providers. Earlier today, SciQuest announced that Robert Bonavito had replaced Stephen Wiehe as CEO, coming on the heels of of Accel-KKR’s $509 million buyout of the provider earlier this summer. And on Monday, Basware announced that Esa Tihilä, who had been CEO for the past five years, “during which time the Basware share price has more than doubled,” had stepped down and Vesa Tykkyläinen, who previously served as senior vice president of Basware’s Network Business, and before that was an executive at Nokia, had taken the helm.

An Analyst’s Report From KellyOCG Analyst Day

KellyOCG

KellyOCG recently hosted around 10 industry analysts to hold briefings and discussions with key KellyOCG executives. This was the second such event in the U.S. and appears to represent a deliberate communications strategy to focus and educate analysts on this distinct business unit within Kelly Services Inc. Indeed, KellyOCG’s Senior Vice President and General Manager Teresa Carroll did mention how financial analysts accustomed to analyzing traditional staffing businesses were grappling with how to evaluate KellyOCG, a services and solution provider business — which, from our perspective, is a key part of the emerging contingent workforce and services supplier landscape.

3 Reasons I Hate the Spend Matters 50/50

Spend Matters 50/50

I’ve personally gotten a dozen notes or calls from people I know in the past few days asking “why weren’t we” on the Spend Matters 2016 50/50 “Watch” and “Know” lists. Some were polite. Others less so. I know that my colleagues have gotten similar lines of questioning as well. Inevitably, any list or ranking of vendors or solution provider will result in happy and unhappy people and providers. It comes with the territory.

Spend Matters 2016 50/50 List — David and Goliath Fight Together, the Disappointment of Content Providers and the Rise of Managed Services

Spend Matters 50/50 2016

One reason we decided to create the Spend Matters 50 Providers to Know and 50 Providers to Watch was to call attention to specialized (and often small) procurement technology and services providers that procurement organizations should know about, but likely do not. Yet a strange thing happened in the past 12 months: Innovation was found (and lost) among larger providers, many with long established brands and track records in the market. Without giving away the list just yet, here are three observations that came from looking at who made the cut (and who did not).