Determine: Re-Platforming for the S2P Future — Year-End Tech Review

Determine Inc.

Determine, a procurement suite technology vendor that is in the process of releasing a re-platformed solution (incorporating Selectica, b-pack and Iasta) onto a single code base and stack, has done a remarkable amount to bring multiple solutions together in a unified platform in a limited development timeframe. Procure to pay (P2P), contract lifecycle management (CLM) and supplier management (with limited sourcing) are fully available on a single platform today. By the end of 2016, Spend Matters analysis suggests that the new platform will have sufficient basic sourcing capability included, which will continue to be enhanced in 2017.

Quick Facts

  • Founded: 1996
  • Headquartered in Carmel, Indiana, with offices in Atlanta, San Francisco, London, Paris, Aix-en-Provence, and Odessa, Ukraine
  • Number of employees (range): 201–500
  • Total annual revenue (range): $26 million–$50 million
  • Percentage of revenue from procurement/supply: 85%–90%
  • Number of customers (range): 201–500
  • Serves customers in North America, Western Europe, the Middle East, Asia and Australia
  • Industries responsible for the majority of their business: retail, finance and insurance, food and beverage, healthcare, manufacturing, technology, utilities, telecom
  • Customers include: AON, Alliant, Brunswick, Centrica, CCI Paris, Endo Pharmaceutical, Foot Locker, Home Retail Group, McKesson, National Express, Nordstrom, Prudential, RCI Bank, Servier, Sony Music, Time Warner Cable, VF, Yves Saint Laurent
  • Available modules: Determine Cloud Platform 16.9 (Supplier Management, Sourcing, Contract Management, Procurement, Invoicing, Business Application); SmartAnalytics (Spend Analysis & Procurement Analytics); SmartContracts 6.x; SmartSource 9.x (Sourcing, Supplier Management, Contract Management) — all can be sold separately
  • Other app integration: Salesforce, all major ERPs

Background & Overview

Even though Determine is the new name for Selectica, which was founded 20 years ago, in 1996, the offering Determine provides is not the offering that Selectica was offering until that time.

Two years ago, Selectica (which has been public since 2000), a provider of complex CLM solutions, realized that while CLM is a great starting point and nexus for procurement as well as sales, CLM doesn't really capture the complex procurement lifecycle. Wanting to continue to service its customers and play an important role as a suite provider in the procurement sector, it realized it had two options: either build its own source-to-pay (S2P) platform around its CLM platform or acquire best-of-breed sourcing, supplier relationship management (SRM) and procurement platforms to create something new.

The new Determine procurement suite solution is built on the highly flexible, workflow-driven and business process-oriented b-pack technology stack. It represents a full S2P platform, with extensive internal and punch-out catalog management capability, and a brand new UI that we believe will be competitive with providers in the market.

Most P2P platforms are built to support the P2P process feature standard workflow that begins with a requisition, which generates a PO that is flipped into an invoice, which is then approved for payment when a goods receipt comes in. In contrast, Determine’s platform is built around a business process engine that ties together necessary functionalities but provides flexibility within standard and customized requirements (e.g., by industry or geography).

Competitors include:

Commentary & Summary

Beyond the initial release of the new platform, the remainder of 2016 will remain critical for Determine from a competitive perspective:

  • Competitors (and potential partners) should take Determine’s efforts to build a true end-to-end S2P platform very seriously. By the end of 2016, Determine’s functional capability will rival or top that of many key competitors across the majority of functional areas. In areas such as sourcing and CLM — where other suite vendors remain comparatively weak — Determine’s suite capabilities are likely to stand out from the crowd.
  • Determine’s platform-as-a-service (PaaS) strategy is absolutely the correct one to pursue longer-term (both for apps it builds as well as partner and even customer-built apps). But it is not a replacement for native modules in core areas such as sourcing.
  • In sales cycles, Determine gets “knocked” by competitors for being a low-value microcap stock that is trending in the wrong direction — and may pose financial risk to buyers. In reality, the picture is more complicated, as the vast majority of Determine’s stock is not traded openly and the firm does appear to have secure backing as needed.

For a more comprehensive analysis and guide for procurement organizations looking to understand whether they should consider adding the provider to their shortlists for consideration, please head over to Spend Matters Plus.

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  1. Jason Busch:

    The person that posted the anonymous comment to this post (which we’ve not published) is welcome to publish it under their name if they would like. Given its contents and that it represents personal opinion, it is not the right thing to do to publish it without that person signing it. Please feel free to repost if you would like.

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