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March 18, 2010

 

Ketera and Claro Partner: A Sign of Things to Come?

Given that there are few best of breed procure-to-pay providers left in the market -- aside from the gorilla of the space, Ariba -- I bet there's a good opportunity for Ketera to work more closely with boutique firms such as The Claro Group. And while this partnership announcement between the two providers appears focused more on sourcing, I believe that there's still a huge opportunity for both the boutiques and the Big 5 to take the current generation of procure-to-pay capabilities to their customer base, using the savings generated from category sourcing programs to fuel the business case for such investments as eProcurement and EIPP. And given the degree of business process and change management work involved in the roll-outs of these types of capabilities -- especially if companies want to gain full leverage from their investments -- it would seem that consultancies have a strong value proposition outside of IT integration and strategic sourcing tied to these initiatives. But few firms appear focused on the process and change management side of Spend Management, preferring to sell cost reduction initiatives such as a category sourcing (which have a clear ROI) into their client base. For boutiques and large consultancies alike, perhaps it's time for a change of focus -- or at least creating a complement to the other services they offer.

- Jason Busch

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Comments
Jason, I couldn't agree more that 99% of eProcurement and strategic sourcing programs never include a sufficiently formal change management/user adoption/stakeholder management (insert buzzword here ____) workstream. In my Big 5 days the CM workstream was never effective because it was delivered by soft & furries without any spend management experience (no offense intended - they were effective in broad organizational change programs but not when trying to persuade toolroom Joe to buy from the new national contract). Now the last few years the emphasis has been on the technology aspects of find/get/keep and the CM has been underaddressed totally. One challenge is that effective spend management CM requires either renaissance sourcing guys who can develop & execute sourcing-focused stakeholder assessment & management, communication & training programs or a very well-integrated team of sourcing and CM folks who work in lockstep to a combined sourcing/CM methodology. There have been/are a few small consultancies that have offered this type of combined solution but it's nowhere near widespread enough. Maybe now the e-sourcing suites are approaching optimization the CM component will start being threaded in.
# Posted By Mark Usher | 11/16/06 10:03 AM
Process change is a hard sell, typically. I think internally-driven process change works better than "the two Bobs" charging through the door tearing up TPS reports (sorry for the reference, I just watched "Office Space" again).

For example, one enterprise I know of keeps good retrospective data on the savings that Procurement delivers, as a function of the stage of the purchasing process at which Procurement becomes involved. Their data show that if Procurement gets involved at stage II, then cost goes down X%; but if Procurement is involved from the start, at stage I, cost goes down an extra Y%.

Just a few presentations of this nature to senior management, backed up with unimpeachable data from a spend visibility system, can accomplish marvelous things.
# Posted By Eric Strovink | 11/16/06 10:24 AM
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