Procurement Technology - Premium Content

What to Expect from a P2P Implementation — Benefits and Costs [Plus +]

P2P implementation

While the benefits of adopting a purchase-to-pay (P2P) solution seem clear on paper, just about everyone who has been around the market on either the procurement, consultant or vendor side has heard horror stories of implementations gone wrong — or horribly wrong, in certain cases. Of course the culprit is usually staring the organization in the mirror. But more importantly, this line between success and failure, as measured by hard dollars, led us to ask a two-part question: What really is the price and when is it worth paying that price to implement a P2P solution?

Procurement Information Architecture and B2B Connectivity: Intel takes RosettaNet into the Future (Part 2) [Plus +]

Editor's note: This is a refresh of our 2014 series on RosettaNet and B2B connectivity, which originally ran on Spend Matters PRO. Read Part 1 here

One of the more curious aspects of the Intel Israel Nipendo implementation (tied into Intel’s RosettaNet standard deployment) for supplier connectivity is that the system realizes a greater percentage of “straight-through processing” (i.e., no human intervention from the PO creation through to supplier payment) than a traditional RosettaNet implementation. The platform provides an innovative and automated pre-validation service that uses a self-service “training” capability, allowing the trading partners themselves to establish the business validation rules and other key system behavior that ensures smooth downstream processing. Read on for discussion of local requirements and a list of key takeaways.

Commercial Value Management: Making Contracts the Commercial Core of Enterprise Value (Part 1) [PRO]

contract

Contract management can seem like a boring topic in business — corporate attorneys taking far too long to create long documents of “legalese” designed around transferring risk to your trading partner in a deal. Managing these contracts in contract lifecycle management (CLM) is a step in the right direction by cross-functionally managing them throughout various business processes: order-to-cash, source-to-pay, hire-to-retire, record-to-report, etc.

Some organizations will even take contract management a little further and use the nomenclature of commercial management to help shift the focus away from the contractual artifact and more toward commercial business relationships. The focus becomes writing and managing better contracts to incentivize trading partners to more easily comply, collaborate and create a larger pie of value to share.

However, there is a subtle shift happening within the scope of contract and commercial management (CCM), and a not-so-subtle shift that is also happening within the digital realm (e.g., namely artificial intelligence, low-code platforms, open source, “XaaS”). What’s happening is that as contracts get digitized and more deeply modeled, they are becoming the single most important piece of master data within the enterprise that touches virtually every single stakeholder within these core processes and also within corporate functions such as R&D, risk management, strategic planning, treasury, audit, sustainability, digital/innovation and others.

The cornerstone to this transformation (in the private sector at least) is the notion of maximizing value created in commercial activities. Commerce is about exchanging value. Good commerce strives to maximize value for individual parties (i.e., large slice of the pie) and excellent commerce focuses on maximizing value to expand the total economic pie within a value chain. On the sell side, you want to deliver differentiated value to customers in order to retain them and make more money off them over the long term. On the buy side you want to maximize value (i.e., the most “bang for the buck”) by maximizing “bang” (what suppliers commit to deliver to you) and minimize the bucks (spend/costs) flowing out the door. These commitments of expected value to be delivered can take many forms, and using next-generation contract modeling (way beyond tagging and analyzing clause text) and process integration is turning out to be a very practical way to maximize value from the C-suite down to various functional process participants.

In this Spend Matters PRO series, we’ll cover some of the ways in which next-generation contract management (and underlying digital platforms) will model and manage commercial value much more deeply in a way that will support enterprise processes in areas such as GRC (governance, risk and compliance), Treasury, FP&A, IT service management, project/program portfolio management, commodity management, supply chain execution and many other areas.

Procurement Information Architecture and B2B Connectivity: Intel takes RosettaNet into the Future (Part 1) [Plus +]

Editor's note: This is a refresh of our 2014 series on RosettaNet and B2B connectivity, which originally ran on Spend Matters PRO.

Intel is one of the oldest advocates (and active users, in terms of volume) of RosettaNet as a replacement for traditional EDI connectivity. RosettaNet, a set of process and information connectivity standards based on XML (Extensible Markup Language) originally founded in the late ‘90s, was originally spearheaded by a number of large corporations in the high-tech manufacturing sector. Like EDI, RosettaNet has historically only made sense for larger direct material (e.g., manufactured parts, components, or materials) suppliers or customers. Yet, RosettaNet’s implementations, like those in traditional EDI deployments, have focused primarily on connecting large buyers and/or suppliers for purchase orders, invoices, advanced ship notifications, and other typical high-volume commercial documents. Intel suggests on its own website that the typical criteria for suppliers is that the vendor “should have an interest and the resources necessary to automate their business processes."

AI in Supplier Management: Tomorrow (Part 1) [PRO]

In our last pair of Spend Matters PRO articles about AI in supplier management today, Part 1 and Part 2, we overviewed some situations where you can find AI in e-sourcing platforms today, where we define AI as “assisted intelligence” because, as we've stated in our series about AI, there is no true artificial intelligence in any enterprise technology today. In fact, there is nothing close, at least not on the open marketplace.

But when we get to the point where we have an augmented intelligence solution that can help us not only monitor supplier performance (across a community), automatically identify issues and risks, and even help us with automated resource — and asset — assignment but can also help us identify automated corrective action resolution plans, risk mitigation strategies, and real-time relationship monitoring and resource re-alignment, they start to approach augmented intelligence and become quite useful to us indeed.

In this article, we are going to discuss the AI-enabled functionality that we expect to see in the leading supply management platforms tomorrow. We will continue our pattern and start by defining what we expect to see, how it will likely work, and then give some hints of the technology platform that will underlie it.

Tomorrow, we expect that the leading supplier management platform will also have the following capabilities:

— Smart information selection and auto profile updates
— Market-based supplier intelligence
— Real-time relationship monitoring
— Automated resolution plan creation, monitoring and adjustment
— Automated risk mitigation strategy identification
— Optimized real-time resource re-alignment

SAP Ariba Sourcing: How Does it Compare Today and What is Coming Tomorrow (Part 2: Playing the Scout Card) [PRO]

Procurement organizations previously embraced complexity in tools to enable both event sourcing and category management processes. Now, the tide has turned. Solutions that are best-in-class from a user-experience perspective, but may lack advanced features (e.g., sourcing optimization, the most capability/depth for RFP/RFI/auction support, full opportunity analysis like should-cost modeling, full project management, comprehensive integrated supplier and risk management, etc.) are increasingly winning the day — sometimes even replacing solutions that offer deeper functional capability.

Simply put, this is what I term the Scout phenomena (but in all fairness to Scout, the provider, is aggressively building out capabilities in areas that it has lagged in for our SolutionMap benchmarking tool).

In the forthcoming new releases of its sourcing product, SAP Ariba has not just co-opted Scout’s playbook. It has built on it. By masking complexity and prioritizing usability not just as a primary, but the top objective, forthcoming “SAP Ariba Sourcing” releases represent a fundamental replatforming that will put casual, business and procurement users at the center of a vastly improved and consumerized UX.

In Part 2 of the Spend Matters PRO research series providing analysis of the SAP Ariba Sourcing solution, we offer insight into the new user experience as well as analysis, commentary and customer recommendations based on SAP Ariba’s planned release schedule featuring the new UI/UX. Part 1 provided insight into SAP’s relative strengths and weaknesses today (based on the Q1 2019 SolutionMap release) and shared what we learned last month at the SAP Ariba Live event on an overall roadmap basis for the sourcing product line.

Defining AP Automation Functional Requirements (Part 1): Core Invoicing (Set-Up, Creation, Submission and Receiving) [PRO]

AP Automation is getting a lot of attention recently from multiple angles. This includes both finance/procurement organizations considering these solutions independently or as a component of broader invoice-to-pay or procure-to-pay investments. And it also counts the investment community, which continues to throw support behind a broad range of providers (just recently MineralTree raising $50 million).

As we’ve noted before, from a breadth perspective, AP automation technology can encompass the following functional areas on the highest level, which include electronic invoice capture, paper/PDF invoice capture (scan/capture), core invoice processing, invoice validations/matching (e.g., match to a PO or goods receipt), invoice approvals, supplier portal, supplier enablement services, systems integration, pre-onboarded suppliers payment integration and payment.

As part of our continuing coverage of AP automation, this Spend Matters PRO series will explore the functional requirements that finance and procurement organizations should look for in a solution with “foundational” and “advanced” capabilities.

Part 1 takes our first look at the core invoicing requirements for AP automation and some of the criteria that Global 2000 and middle market organizations should consider when selecting solutions (i.e., invoicing set-up, paper scan/capture support and e-invoicing). Subsequent briefs in this series will analyze other AP automation requirements that customers should look for in a solution.

AI in Supplier Management: Today (Part 1) [PRO]

suppliers

With this brief we begin the next installment of our series on the application of artificial intelligence (AI) to various source-to-pay technologies. Previous entries focused on AI in procurement (Today, Part 1 and Part 2; Tomorrow, Part 1, Part 2 and Part 3; and The Day After Tomorrow), AI in sourcing (Today; Tomorrow, Part 1 and Part 2; and The Day After Tomorrow), AI in sourcing optimization (Today; Tomorrow; and The Day After Tomorrow, Part 1 and Part 2) and AI in supplier discovery (Today, Tomorrow and The Day After Tomorrow).

Following the path from supplier discovery and selection is the topic of our current series, supplier management. As with each preceding entry, the aim is to define what is available with AI(-like) technology and what will be possible tomorrow. And just as the best platforms for supplier discovery are starting to use machine learning and RPA, so too are the best supplier management platforms — but we're getting ahead of ourselves.

Artificial Intelligence Meets Payables and Dynamic Discounting: Oracle Cloud Vendor Snapshot Update (Part 3) [PRO]

In recent years, Oracle has transformed itself from the inside out, from a procurement solutions perspective, putting its full force behind building a suite of applications designed for the cloud — rather than behind the firewall.

It has reinforced this product development and go-to-market effort with strong incentives to existing customers to migrate from E-Business Suite, PeopleSoft and JD Edwards to its Cloud solutions line. And it has successfully been targeting new procurement customers — some of which do not have an Oracle back-end.

This Spend Matters PRO research brief provides a recap and summary of Oracle’s Cloud procurement applications, shares insight into roadmap direction for the suite and explores recent investments in artificial intelligence and other enabling technologies. Organizations wanting a primer on Oracle Procurement Cloud can read our Vendor Snapshot series: Background/Solution Overview, Strengths/Weaknesses and Summary, and Competitive Overview/Recommendations.

Microsoft 365 Freelance Toolkit: Retooling How Enterprises Work (Part 3) [PRO]

In Part 1 and Part 2 of this four-part Spend Matters PRO series, we wrote about how the Microsoft 365 freelance toolkit emerged and continues to evolve at Microsoft (based on our interviews with Microsoft managers who are central to the initiative). We now shift our perspective to the contingent workforce industry innovator Upwork Enterprise, Microsoft’s launch partner for the freelance toolkit.

In Part 3, based on discussions with Eric Gilpin, SVP of Upwork Enterprise, we look at the Microsoft 365 freelance toolkit from Upwork’s perspective and examine Upwork’s role as a partner and key participant in the process as well as what the partnership means for Upwork itself. Part 4 will include an analyst perspective on the freelance toolkit, the Microsoft-Upwork partnership and what it may indicate for services procurement practitioners.

Artificial Intelligence Meets Payables and Dynamic Discounting: Oracle Cloud Vendor Snapshot Update (Part 2) [PRO]

digital business transformation

With its new Intelligent Payment Discounts solution, Oracle is bridging the worlds of procurement and finance together in a unique way that unifies procurement, accounts payable and core financials.

In Part 1 of this research brief, we offered a detailed overview of this new, AI-based solution, providing an introduction to its different components for organizations that might consider it.

In today’s installment, we will conclude our analysis, exploring Oracle Intelligent Payment Discounts’ strengths and weaknesses related to other early payment solutions, either as an extension of invoice-to-pay or on a standalone trade-financing basis — and provide a user requirements checklist to help companies prioritize if the solution is the right fit for them.

Our analysis includes a perspective on the advantage that Oracle has in selling this solution compared to other early payment and financing solutions (e.g., C2FO, Prime Revenue, Taulia, etc.) and procure-to-pay/invoice-to-pay (e.g., Basware, Coupa, Ivalua, SAP Ariba, etc.) outside of feature/function capability alone based on its unified architecture with Oracle Cloud Financials. That is, for companies migrating, upgrading or switching to Oracle Cloud — not those on legacy E-Business Suite, PeopleSoft or JD Edwards solutions.

AI in Supplier Discovery: Tomorrow [PRO]

interest rates

In Spend Matters’ last PRO article for the AI in Supplier Discovery series, we overviewed some situations where you can find it today, or at least functionality that looked like it was enabled by artificial intelligence (even if it was not), and set ourselves up for a discussion of true AI that is going to creep into supplier discovery platforms tomorrow.

However, when we say true AI, we mean the definition of AI as “assisted intelligence,” because there is no true artificial intelligence out there and probably won't be for a very long time (with some futurists conjecturing it will be 2060 before machines are as smart as the dumbest of us). Note that we don't even mean “augmented intelligence,” as even though the platforms will augment your knowledge, it will still be up to you to make the right, intelligent, decisions tomorrow. (And maybe the day after that, but that is a subject for our next article.)

In our last article, we reviewed the capabilities of the leading discovery platforms today, which mainly revolved around:

  • Smart search
  • Community intelligence

...and the intersection of both.

We discussed how the improvements in computing power and web-usability made it possible for platforms to implement better and more powerful search algorithms that actually made searches useful across wide supplier directories and networks; how community intelligence allowed an organization to quickly narrow potential supplier pools down to reasonable sizes; and how the intersection allowed for the definition of "like" searches that could not be done before now.

But as of today, those "like" searches are still pretty high level. And they are best at finding suppliers that provide finished products and services that can be well-defined and compared to other suppliers that provide similar finished products and services. In fact, most systems with "like" searches are for the identification of suppliers for indirect. Not direct. (And not services either.)

But that is going to change tomorrow. Tomorrow, supplier discovery systems are going to support:

  • deep capability match that uses bill of materials, production requirements and other deep factors to support supplier search for direct suppliers
  • resource capability match that can identify needed skill sets, knowledge and related attributes for services suppliers

And we'll finally have smart supplier search for all. But how will it happen? And what will it look like? Let's explore.