Procurement news from the US – Weekly Round-up

Peter already covered the majority of the most highly trafficked content this week with his own posts on Trade Extensions, but we still did a lot of reporting on Ariba’s quarterly earnings report and got some great guest content from Archstone. Here’s the latest:

Ariba Ariba Ariba.

Ariba’s Q3 Fiscal 2011 Results: The Numbers and Beyond (Part 1: The Basics and E-Invoicing) Yesterday, Ariba reported its Fiscal Q3 2011 results and it's no surprise to many that the procurement vendor keeps chugging along. Wall Street appears pleased, at least from the reports we've seen already today. As reported by management, revenue continues to climb. Specifically, quarterly revenues hit $121.9 million up from $83 million the previous year (owning both to organic growth and, most important, the Quadrem acquisition). Subscription software revenue (the "good" stuff, at least as Wall Street views it), hit $76.4 million, which is a significant 74% increase from the same period in 2010. And network revenue topped $37 million ($37.2 million to be exact), a giant increase of 249% that largely reflects, in descending order of importance (by our analysis): the Quadrem acquisition, network fee price increase and organic volume growth on the network. Ariba generated $22.4 million in cash through the quarter. See Part 2 (Network and Sales Execution) and Part 3 (Competitive Environment) as well.

Jason spoke on a webinar!

Next Generation VMS and Services Procurement Platforms: Putting True Analytics/Insight at the Core In general, procurement, HR and IT professionals do a dreadful job of leveraging analytics and complete internal/external information sets in everyday decision making in managing services suppliers and contingent spending. Worse, we delude ourselves into thinking that running the occasional report on a monthly or quarterly cycle makes us strategic (hint: it doesn't). Granted, we're always looking for some information to help justify a sourcing or related decision. But our modus operandi for the mundane and routine is more likely to damage our credibility to truly be strategic than to enable a greater degree of respect and trust among stakeholders.

Some great guest posts this week.

First, from Archstone Consulting: Deciphering Procurement Systems and Tools (Part 1 -- Key Trends) Through much of the recent global downturn, procurement groups worked with a tailwind of corporate spend mandates, deflationary pricing, and a supply base hungry for business. They were able to meet their goals by focusing on realizing the savings that those advantages enabled. Transformational procurement initiatives and the development of advanced procurement capabilities were, in most cases, put on hold. Projects related to new systems or improvement in procurement technologies were among the first casualties. Today, however, procurement groups face a new environment. (Second part here).

Are you (or your company) addicted to unlimited data? It may be costing you.

Enterprise Mobility’s Relationship with Finance and IT: How to Embrace the Blend We're seeing a changing relationship between finance and IT. IT departments are being pressed to approach mobile device management from a cost perspective, particularly as the growing mix of personal and corporate devices brings new cost challenges. As with most aspects of mobility, the impact of changing data plan options, hidden costs, and overage charges felt by businesses swells much larger than its impact upon individuals, especially considering they are increasingly faced with managing a mixed environment of mobile devices.

Happy Friday!

- Sheena Moore

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