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Oversight Systems: Vendor Analysis (Part 3) — Competitive and Summary Analysis

Procurement fraud comes in many forms and types. Recent front-page news stories can involve multi-million dollar frauds managed at the P&L level by suppliers, such as Pfizer’s recent complex overbilling scheme with the NHS. But procurement and payables fraud most often takes place on a smaller level, with varying degrees of sophistication. Oversight Systems provides an analytics managed service (and front-end software) capability for procurement and finance organizations to fight procurement fraud, whether perpetrated by suppliers, internal participants or both. It also provides similar capabilities to monitor for regulatory compliance (e.g., FCPA violations) as well as detect overpayment errors. Its solution is a complement to procure-to-pay (P2P), travel and expense (T&E) and various audit recovery solutions and approaches in the market today.

This third and final installment of this Spend Matters Vendor Snapshot covering Oversight Systems provides an objective SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also includes recommended shortlist candidates as alternative vendors to Oversight Systems and provider selection guidance. Finally, it provides summary analysis and recommendations for companies that can best take advantage of Oversight Systems’ capabilities. Part 1 of this series provided an in-depth look at Oversight as a firm and its specific solutions, and Part 2 gave a detailed analysis of solution strengths and weaknesses and a review of the solution’s user experience.

Oversight Systems: Vendor Analysis (Part 2) –– Product Strengths and Weaknesses

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What do you get if you cross P2P payment compliance, procurement and payables fraud detection and management, and a big data solution together? You get Oversight Systems. Unlike other overpayment prevention and recovery audit providers, Oversight decided to pursue what we might best describe as “data science as a service,” hiring data scientists who are experts –– or have become experts –– in spend areas including travel and expense (T&E) and procure-to-pay (P2P), as well as regulations affecting supplier management and payables such as the Foreign Corrupt Practices Act (FCPA). This team continually works to develop new algorithms to confront the types of continuously evolving over-billing and procurement and T&E fraud scenarios that employees, procurement staff and suppliers engage in, either intentionally or as a result of complacency.

This Spend Matters PRO Vendor Snapshot explores Oversight System’s product strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider this class of solution alongside other P2P, T&E, payables/card and related investments. It also offers a critique (pros/cons) of the user interface. Part 1 of our analysis provided a company and detailed solution overview and a recommend fit list of criteria for firms considering it. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.

Oversight Systems: Vendor Analysis (Part 1) — Background and Solution Overview

Supply Chain Fraud

Procurement fraud typically gets everyone’s attention after it happens. Granted, in certain geographies and industries, regulations such as the Foreign Corrupt Practices Act (FCPA) have magnified the potential risk that procurement fraud can bring to expand beyond profitability impact through high fines and negative media coverage. Yet procurement and finance organizations generally are loath to invest in additional fraud controls and measures such as procure-to-pay (P2P), travel and expense (T&E) and payment solution (including p-cards) rollouts or upgrades at the same time. Oversight Systems, an Atlanta-based organization that focuses on fraud and overpayment controls and prevention and has raised almost $40 million in funding to date, is hoping to change this.

Existing P2P (SAP Ariba, Concur, Basware, etc.) and T&E (e.g., Concur) solutions can put in preventative steps to help reduce the risk of fraud and overpayment occurrences. But the controls they provide are insufficient to prevent fraud alone (as Best Buy discovered when procurement and a supplier colluded to steal millions of dollars from the company). Fraud and overpayment can occur in both expected and unexpected places, and Oversight has designed its solution to find and detect and find it through an advanced analytics platform, regardless of whether an employee, procurement, accounts payable or a supplier is the responsible party (or a combination of actors).

This Spend Matters PRO vendor snapshot provides facts and expert analysis to help buying organizations make informed decisions about Oversight Systems’ procurement and accounts payable fraud and overpayment solutions. Part 1 of our analysis provides a company background and detailed solution overview, as well as a summary recommended fit suggestion for when organizations should consider Oversight Systems as a complement to existing P2P, T&E and card investments. The rest of this multi-part research brief covers product strengths and weaknesses; competitor and SWOT analysis; user selection guides; and insider evaluation and selection considerations.