Determine (NASDAQ: DTRM) is a provider of leading enterprise cloud software solutions with over four decades of collective technical and process knowledge in the areas of strategic sourcing, enterprise contract lifecycle management, and procure to pay solutions. We provide the next generation of agile, enterprise cloud solutions for managing the needs of modern business. Using our intuitive applications, organizations can effectively manage the full scope of source to pay and enterprise contract lifecycle management requirements using the Determine platform.
The Determine platform is an open technology infrastructure based on smart process application models. The goal of our platform is to establish awareness of relevant data, manage business documents, embed analytical tools, create a means for collaboration, and provide advanced process management tools for fully integrating business processes through an open API infrastructure. Built on a unified and highly scalable platform, we deliver deep and innovative capabilities in strategic sourcing, supplier management, enterprise contract lifecycle management, e-procurement, invoicing, and other business operation areas.
In addition to our source to pay and enterprise contract lifecycle management solutions suite, we also provide a powerful, patented configuration engine solution, which Global 1000 companies use to increase revenue by facilitating the right combination of products, services, and price.Corporate Overview Take a product tour
- 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 & OverviewEven 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:
- SAP Ariba
Commentary & SummaryBeyond 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.