Zycus Horizon 2017 Dispatch: By the Numbers and Hinting at the Future

Xavier Olivera and I are on the ground in New Orleans (post “supply risk weather incident”) to attend the Zycus Horizon 2017 customer conference. Early in the afternoon, after a late start because of the hurricane — the storm, not the drink! — Aatish Dedhia, founder and CEO of Zycus, took the stage to provide an update and outlook on Zycus.

Zycus: By the Numbers

Dedhia began his talk by sharing some metrics on Zycus. Let’s start with strategic procurement:

  • Spend processed (via Zycus) in spend analytics: $50 trillion
  • Sourcing events created: 645,000 to date
  • Suppliers registered: 66,000 to date

Moving onto procure-to-pay (P2P) metrics, Zycus said it has processed:

  • $1.6 billion in purchase orders
  • $1.5 billion in requisitions
  • $1 billion in invoices

These numbers obviously play to the longer history Zycus has with strategic procurement technologies. (Zycus launched spend classification before it even had competition in the area — before “spend analytics” became the broader umbrella for this market segment.) But the numbers also suggest Zycus is ramping up its e-procurement and invoice-to-pay capabilities, as well.

From a growth perspective, Dedhia noted that 2015–2016 saw “76% revenue growth” for source-to-pay (S2P) technology solutions at Zycus (which I read as “integrated suite sale” growth). And 2016–2017 saw 52% source-to-pay deal growth.

Looking Ahead

During the rest of his presentation, Dedhia previewed where Zycus is headed. This includes launching a full-featured vendor management system (VMS) for contingent labor and independent contractor management. This is an audacious undertaking — far more so than entering the P2P market — but Zycus already has a customer development partner for it, and the market could certainly use a new entrant in this complex set of spending areas where compliance, cost and risk are all critically important.

During his talk, Dedhia also noted that Zycus is decoupling its user interface from the modules and products themselves, which will allow it to update the UI “every two to three years.” The next UI release, “Dewdrops,” was previewed via video. It looked to incorporate significant modern UI design principles, including embedded collaboration and analytics throughout.

Other developments Dedhia previewed included enhanced stakeholder management (including demand management) to enable procurement to better serve as a services provider to the business, whether enabling the buying of services, outcomes or SKUs.

Stay tuned for more live coverage and analysis from Zycus Horizon, as well as a full Spend Matters PRO Vendor Snapshot on Zycus in the months to come.

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First Voice

  1. Samuel Zbinden:

    Congratulation to Aatish and his great team. Once more HORIZON apparently has kept its promise.

    The impressive Zycus growth figures show that the evolution in procurement still goes on and procurement organizations still massively benefit from innovative e-Procurement solutions. Together with our Zycus colleagues and other market participants, we at SIMENO do our utmost to generate value to the procurement market through reliable and customer oriented e-Procurement solutions. Good technology aims at improving efficiency and more. However, in our eyes, there is another factor, often underestimated, which deserves attention: Technology transformation in Procurement requires appropriate adjustments in “the human factor”. Based on our observation, having only a great tool does not necessarily make the expected difference in procurement. Technology needs to be supported by efficient processes and people who are capable, skilled and dedicated. This is why we at SIMENO always run e-Procurement projects under this “Triangle aspect” (people, process, technology). Procurement leaders will benefit if they invest in skills-based team development to make an e-Procurement project a success

    I wish the Zycus team all the best on their e-Procurement journey.

    Samuel Zbinden
    Head of Business Development
    SIMENO Systems AG

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