spendmatters
 

February 07, 2012

 

An Optimization Knock-Down!

Check out the optimization comment thread that resulted from a somewhat innocuous post yesterday afternoon. Michael Lamoureux, Paul Martyn, and the Spend Fool have put on their verbal battle armor. It's a war of words that not even the most advanced solver could win.

- Jason Busch


Commodity Edge Conference

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Tom Finn's Gravatar CombineNet accepted Jason Bush's "optimization bake-off," yet as far as I know, despite his efforts to entice other sourcing optimization providers, no one wants to play.

We've been at this long enough to know the competitive arguments. They haven't changed: 1. It's too complicated. 2. Ours is good enough. 3. Do you really need all of that power? These arguments underestimate the value of optimization and completely miss the point -they're stall tactics.

Clearly, these arguments are wearing thin on the spend management community as evidenced by the fact that we continue to grow at an unprecedented pace -growth fueled by the innovative use of optimization by our clients. Our clients can drive the innovation because our optimization is easily accessible. And it's getting easier AND more powerful every day.

No one here at CombineNet is surprised that the "bake-off" became a "back-off."
# Posted By Tom Finn | 10/5/06 11:38 AM
SpendFool's Gravatar uh-oh, now the sales guys are getting into the fray and Tom clearly has his Irish up! But it's not the size of the solver, it's how you use it. Of course, CombineNet is indeed doing extremely innovative work (even if it didn't win the Edelman award), but as Larry Ellison once said "Features become companies!", and the market must continue to consolidate and this innovation will ultimately find its way into a big services company (e.g., IBM) or a big software company - which is at it should be. And this stuff isn't mutually exlusive! Nothing wrong with the consultants with big brains and tools to solve the really strategic problems AND also use mass deployed tools from ERP and/or SaaS vendors. Pick the right tool for the job. anything else would be foolish.
# Posted By SpendFool | 10/5/06 10:52 PM
jason busch's Gravatar I'm running around like a "fool" today, but will try to find some time to moderate this little topic a bit. Nice comments, y'all.
# Posted By jason busch | 10/6/06 4:08 AM
Paul Martyn's Gravatar Well done, all.

Folks working with less powerful solvers don't know what they don't have.

Ponder the following dynamic in your work day:

If a scenario takes 1 day - running 200 scenarios takes a year. If a scenario takes 1 second to solve, running 200 scenarios takes minutes - as buyers looking for a strategic edge, more scenarios increases the probability of success.

Additionally, we've wrapped excellent Self Service interfaces and program management/education around our applications to help our clients improve their sourcing processes to capture more savings with as much or as little consulting involvement as they desire.

Optimization is an enabler - realized savings is the value we provide.

I guess the point I'd like to finish with is that CombineNet is NOT just the world's best solver - that 'myth' is 5 years old - we provide professional solutions (self service and as part of a program) to the intersection of market design and optimization.
# Posted By Paul Martyn | 10/6/06 4:57 AM
Tom Finn's Gravatar I haven't been able to get my "irish up" in years. No doubt another symptom of the Pittsburgh water.
# Posted By Tom Finn | 10/6/06 10:51 AM
SpendFool's Gravatar Paul is right in that CombineNet from Day 1 has always been guys with huge brains using the tools/solvers to solve huge problems.
Question is: 'Should consultants (even those with 'cool tools' in their bag) be in the packaged applications business'? eBreviate thought so. Ariba struggles with it. You gotta find the synergy because otherwise you still have to compete in the individual land-of-the-giant markets (e.g., SAP-Oracle and IBM-Accenture).
Last post from the fool on this methinks.
# Posted By SpendFool | 10/6/06 1:58 PM
Paul Martyn's Gravatar Are any of you (Jason, Michael, SpendFool) going to ProcureCon?

If so, let's get together to discuss this topic over a meal or drink.

Of course, you could attend our Optimization round table discussion, as well.
# Posted By Paul Martyn | 10/7/06 6:42 AM
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