SpendHQ Value Leader in Q4 2018 SolutionMap for Spend Analytics
Delivering Spend Analysis Value Year over Year
While technology matters more than ever in a digital world, much of the value delivered with spend analysis is based on how a procurement organization takes on the task. When procurement organizations realize they’ve outgrown outdated methods to spend analysis, such as using spreadsheets or homegrown tools, they need to perform a true assessment of their capabilities. So, like other areas within procurement, addressing spend analysis should not be done without considering a fine balance of people, process and technology.
Yet one mistake we often see procurement organizations make is to go heavy on technology. Perhaps driven by mergers and acquisitions or the need to deliver business transformation ahead of the competition, procurement organizations will often make bad technology decisions that are not focused on solving the problem at hand—decisions in which they often end up buying more than what they need or can handle. This sometimes happens when procurement organizations implement business intelligence solutions that are being used across other parts of the organization but rely on IT to help configure and manage the tool. For others, it happens by implementing spend analysis as part of a wider procurement suite with the philosophy of leveraging one technology provider for all their procurement needs, but there often isn’t much emphasis placed on truly understanding why spend analytics is needed, or on how to structure spend data in a way that provides the most value.
By drinking from the proverbial firehose of technology, many procurement organizations will then fail at achieving true spend visibility. Moreover, conversations with our most effective and mature clients tell us that failures with these approaches are the main reason for pursuing a best-of-breed solution. We often hear from procurement professionals that taking a focused, best-of-breed approach offers a better alternative by allowing them to put spend analysis at the heart of their procurement initiatives, a strategy deemed essential for delivering consistent, year-over-year procurement value.
But to deliver value, spend analysis solution providers must also make it easy for end users to engage with their technology and must be flexible enough to offer what customers need to achieve their objectives. Moreover, achieving spend visibility excellence happens over time and should be delivered through dynamic yet results-focused means that can establish a source of truth and a basis for building trust with both finance and the business over time. It also means addressing the strengths and weaknesses within one’s organization to identify where a solution partner can add the most value, and where that value is not always based on technology.
At SpendHQ, our philosophy has always been one that focuses on the principle of “form follows function,” where providing a purpose-built solution combines with both services and technology to deliver value from spend analysis. In this regard, we continue to be recognized for this accomplishment by leading analysts such as Spend Matters. Having been covered by Spend Matters on a regular basis since 2014 and being recognized on the Spend Matters 50 Providers to Know list, we are proud to share the latest results of the Spend Matters SolutionMap for Spend and Procurement Analytics. This Q4 2018 release marks the fourth quarter in a row that SpendHQ has been recognized as a value leader in all four personas they cover.
Heading into 2019, SpendHQ remains focused on the promise of delivering a purpose-built solution that helps procurement organizations deliver spend analysis. As an organization that developed a solution from deep strategic sourcing and procurement expertise, we will continue to be the voice of the procurement in mind, without worrying what our competitors have or are trying to build.