One Perspective: Thinking Through Ariba and Procuri Product Integration
Let's get to it. If a code base rationalization happens between the companies -- which again is speculation -- what are some assumptions an informed observer might make? To answer this question, let's examine the Procuri product suite, beginning with TotalIntegration. Here, Procuri has what appears to be a good story to tell. But without question, Ariba has far more integration experience in the broader Spend Management arena. Seriously, e-sourcing, spend analysis and contract management integration do not require the same type of real-time systems connectivity and visibility as procure-to-pay solutions. Perhaps Ariba will adopt Procuri's integration approach in the sourcing area as well as the marketing for it. But that's it. Either way, we'll have to wait and see.
Next up let's consider TotalView, Procuri's sourcing dashboard. Here, it's probably a toss-up from a basic visualization perspective between Ariba and Procuri. But neither firm begins to approach the UI and dashboard visualization that providers like JV Kelly have built for customers integrating supplier performance, supply risk, contract compliance and sourcing information into a flex-based UI. Both Ariba and Procuri should make some investments in this area, in my book, to get ahead of the competition. SAP and Emptoris don't exactly have anything here to write home about either, so the market is open.
TotalSupplier, Procuri's supplier management tool, was born out of CMSI roots. From what I know, it's a solid, but basic solution, which now also includes scorecarding capabilities. Ariba has similar portal and scorecarding capabilities that many consider deeper, although I've heard that Procuri's approach has won fans over the years because of its ease of use and simply UI. The winner? It's a toss up, although I'm willing to bet that Ariba will take the best of both modules and create something new.
TotalContracts is Procuri's contact management solution, acquired from CMSI. From what I've heard in the market, there has not been much development and enhancement to the module in the past couple of years relative to where Emptoris, Upside and others have taken their solutions. Ariba has never known for industry leading contract management either, but I would give them the edge from a feature/function and overall suite integration perspective.
Next on the list: TotalSpend. TotalSpend is Procuri's spend analysis solution, acquired from TrueSource. When Procuri acquired TrueSource, they got themselves an excellent deal largely on earn-out terms from what I heard. I know that one company chose TrueSource over Ariba largely because they got "3 Ariba modules for the price of one". But from what I've seen and heard in the past year, Ariba compares quite favorably to Procuri, and has a far larger installed base from a spend visibility perspective to reference. I reckon that Ariba will quietly take some of the extraction/integration IP from TrueSource and put the rest of the solution out to digital pasture.
TotalSource, Procuri's sourcing solution, is the big conundrum. What will Ariba do with it? Certainly, they won't support both TotalSource and their own sourcing solutions. Or will they? This is where the real product integration brainpower will need to go. I'm guessing that Ariba will adopt some of the UI and workflow from Procuri -- and probably some of the category-based and sourcing process templates -- and attempt to enhance their own solution with it. But I'm tossed up on this one. Still, Ariba will need to work fast, lest Emptoris, SAP, Iasta, Oracle, and the many other e-sourcing solutions out there in the market continue to innovate while they get mired in product integration details.
What do you think? Obviously this entire post is speculative and one person's musing are far less likely to be accurate than the contributions of a broader community. So, please, chime in and comment below. And check back later today when I take a contradictory view on the topic, instead presenting the case for keeping two separate platforms.
- Jason Busch
From my perspective, which is only interested in Total Source, Procuri's advantages were the simplicity of the UI for buyers and suppliers (accepting niggly detail weaknesses), the pricing model and the helpdesk.
If Ariba mess with them, then an On Demand customer base will simply say all bets are off, as a previous user of Ariba Buyer, Procuri's customer support (albeit for a different solution) is streets ahead.
Ariba inherited a robust Product Help desk organization from the old FMKT acquisition which currently supports all the Ariba products including sourcing.
As a former user of Procuri and a current user of Ariba Sourcing technology, Ariba's help desk support/scalability and the ability to support in multiple time zones and regions is much better than Procuri. In addition with the support from Ariba's Global services organization, the gap quickly widens.
My analysis is based on using the old Freemarkets product, Procuri Total Source and Ariba's On-demand product solutions (in my new organization).
Ariba eliminates the company that was constantly underbidding them and gains a larger customer base.
I still view this deal as largely financial (buying deferred revenue) in nature. I buy the middle market argument second, and taking out a competitor / buying a customer base third.
Still, a smart deal in my book, but the product integration issue is one that there does not appear to be much if any clarity on yet since there is essentially 100% overlap in the products.
Of course AMR is going to wax eloquent about the deal and product -- it's good for the sector and their clients want information. But in an inquiry call, how would AMR stack up Procuri in the contract and supplier areas to others? Now that's the question ...
BTW ... as you know from this blog, I have tremendous respect for AMR's opinions. They could very well be right, and I wrong. But I have the opportunity to be much more foolish than the analysts in these pages (as the real Spend Fool will well attest to).