Category Archives: Vendor Review

BIQ: Alive and Well in the Opera House! Part I

Fourteen years ago, in the sleepy little town of Southborough, Massachusetts, a tiny start up called BIQ was created. It’s mission was to give business analysts the powerful transactional data analysis tool that they needed to do their own analysis and get their own insight. Less than two years later, it released that tool, called BIQ, and it totally changed the spend analysis market. For the first time, power analysts could do everything themselves in a market where spend analysis was primarily offered as a service, and they could do it at a price point that was at least an order of magnitude less than what the big providers were charging them. With licenses starting at 36K a year, an analyst could do the same analysis that he was paying a suite provider 360K for and a best of breed provider 1M for. Now, it required a lot of knowledge, aesthetic blindness, elbow grease, and overtime, but it could be done.

And when we say everything, we mean everything. You could load any flat files you want in a standard format (such as csv) in the data loader. You could combine them into any cubes you wanted by defining the overlapping dimensions. You could define ranged and derived dimensions using simple formula or built in definitions. You could drill down in real time, filter on what you wanted, and export subsets of records. You could define any categorization you wanted against any schema, any mapping rules you wanted, they were organized into priority groups, given a priority order, and run most specific to least specific so you never got a collision or random mapping like you might in a tool where you just defined non-prioritized rules that went in a database and often got applied in random order. You could define supplier families that could be reused. You could build your own cross-tab reports. It was the swiss army knife of analytics, at a price every organization could afford.

This quickly made BIQ a favourite not just among mid-market companies that couldn’t afford, and big companies that didn’t want to afford, high priced services, but also niche consultancies that could now do power-house analytics projects on their own, including firms like Lexington Analytics and Power Advocate. This, along with some really smart marketing, pushed BIQ into the mainstream of spend analytics providers, making it a de-factor shortlist candidate for any company wanting do-it-yourself spend analysis. This, of course, got the attention of many providers, who were afraid of the threat, in awe of the technology, or both.

One of these providers was Opera Solutions, who acquired BIQ in 2012, and shortly after, Lexington Analytics. Once the two providers were merged, Opera Solutions instantly had a complete spend analysis software and services solution for the indirect space. And they have steadily improved this offering since its acquisition. The new version comes packed with some big enhancements, including one capability that is not only market leading, but unique among all the spend analysis providers we have covered to date.

What is that? Come back tomorrow!

Coupa + Trade Extensions = ??? … Part II

Back in May, the doctor indicated that at some point after Inspire he’d do a deep dive into the acquisition of Trade Extensions by Coupa. He waited as he wanted to think more on the possibilities and probabilities and get more insight into the potential, but as no additional insight appears to be coming in the short term, in our last post we began to summarize where things are at now from the perspective of a SWOT analysis. Yesterday we outlined some of the key strengths and weaknesses of both platforms. Today we will dive into some of the key opportunities and threats.

Coupa + Trade Extension Opportunities

  • Quick deployment anywhere due to pure SaaS nature
  • The great UX offered by both platforms is extremely attractive
  • Both are true market leaders in what they do
  • Both are deployed, supported, and used, globally
  • The Open Business Network can feed new suppliers and quotes into both platforms
  • All spend can be appropriately placed under management
  • Easy analysis of all spend and spend data can be accomplished between the platforms
  • Collectively, each key step of the full Source-to-Pay platform is supported
  • A large amount of educational content on both fronts that can form the foundation for end-to-end Source-to-Pay education

Coupa + Trade Extension Threats

  • Not the only Source-to-Pay offering
    Jaggaer has better CLM & SXM
    Ivalua is one platform
    etc.
  • Weak CLM and no contract analytics leaves an opening for competitors
  • Weak SPM and no best-of-breed SRM leaves another opening for competitors
  • Out-of-the-Box integrations with on-site systems is limited
    and a great web API is often only great for cloud-based solutions
  • No end-to-end category guidance and management
  • No category templates for common categories for strategic sourcing or group-purchase Tail Spend sourcing
  • The platforms do not integrate and may not for some time …
    while sourcing always precedes procurement, awards need to get from sourcing to procurement and spending needs to be monitored and analyzed against spend and logistics may need to be optimized mid-contract if demands change or factory allocations shift
  • No end-to-end education on how to master S2P to not only maximize SUM but maximize savings and value

    … but most importantly …

  • No clear direction on how the two platforms will be integrated to increase the net value of both.
    Considering there has not yet been a truly successful acquisition of a strategic sourcing optimization platform (where both the acquirer and the acquiree’s platform have thrived), this is a major threat … and worry.
  • The two companies don’t speak the same language. Not even close.

At the end of the day, as we have indicated before, there is a huge potential for both companies and all of their collective customers, but, hiding in the shadows, there is also the potential for catastrophic failure. (This was one of the priciest acquisitions of a best-of-breed platform in optimization history, and Coupa could have done a lot with the money it spent.) The jury is still out, but to be honest, the longer it takes for a clear direction to materialize, the more one naturally starts to worry.

Coupa + Trade Extensions = ??? … Part I

Back in May, the doctor indicated that at some point after Inspire he’d do a deep dive into the acquisition of Trade Extensions by Coupa. He waited as he wanted to think more on the possibilities and probabilities and get more insight into the potential, but as no additional insight appears to be coming in the short term, we’re going to summarize where things are at now, from the perspective of a SWOT analysis.

Coupa Strengths

  • Pure SaaS
  • Extremely easy to use tactical e-Procurement/P2P Solution
  • Compliant e-Invoicing in 30 Countries
  • Open Business Network
  • Integrated Expense Management … on the go
  • Integrated Budgeting
Trade Extension Strengths

  • Pure SaaS
  • Easy to use optimization-backed Strategic Sourcing Platform
  • Most powerful decision optimization platform on the market
  • Extremely powerful fact sheets for upload, verification, and analysis
  • Extensive formula and modelling support to support any category and modelling needs
  • The TESS Academy
Coupa Weaknesses

  • Integration to On-Site Systems is Limited
    (the API is great for integration to other SaaS solutions)
  • Integrated RFX/Auction support is extremely limited, no BoM support
  • Community Intelligence is limited to what is pushed through the platform
  • Large Supplier Network, but limited intelligence on reliability, sustainability, and risk
    (the Riskopy acquisition will hopefully improve the situation over time)
  • Well suited for Tail Spend, but no built-in help identifying categories that should be strategically sourced
  • Contract Management is very limited
  • Focus on just pushing spend through the platform to increase SUM detracts from value-generation opportunities
Trade Extension Weaknesses

  • Out-of-the-Box integration to other systems is extremely limited
  • No repository of out-of-the-box models for standard categories
  • Contract Management is very limited
  • No auto-classification, initial cube construction requires expertise and elbow-grease
  • No Supplier Information Management or integration with an SXM platform

Come back tomorrow where we discuss the opportunities and threats.

… And Trade Extensions is No More!

As of Thursday, one could look up a Form 8-K filing on the SEC site from May 3, 2017 that simply stated that Coupa had completed its acquisition of Trade Extensions, now called Coupa Advanced Sourcing for those of you on the ball (and watching TE profiles on LinkedIn for updates as well). SI expects you’ll see a formal press release early this week.

While SI completed its initial analysis shortly after announcement, it’s going to hold off publishing until after Coupa Inspire to see if Coupa inspiration changes the doctor‘s mind at Inspire. 🙂 # Look for a deep analysis the week of the 22nd.

(For speculators, you can check out SI’s historical writings on M&A in general and its posts on the importance of cultural conformity in partnerships and then balance these views with the simple fact that only one* acquisition of an optimization platform provider has succeeded in the Sourcing/Procurement space to date, and probably take a guess as to the doctor‘s current view. But it would be only a guess.)

*Tigris was swallowed by VerticalNet; CombineNet shrivelled in SciQuest, now Jaggaer; Mindflow was killed by Emptoris (which was in turn butchered by IBM, whose initial foray into optimization was so bad that they ended up giving it all away for free in COIN-OR) and the founders of Algorhythm subsumed their optimization capabilities into their rapid application development platform Applifire! Only the VerticalNet acquisition by BravoSolution was a success, and likely only because the BravoSolution model required keeping VerticalNet more-or-less in-tact as the US operation of the global BravoSolution organization (as there was essentially no US presence at the time).

#Or at least lets him focus in on one analysis in particular (as his analysis is actually a bifurcated analysis that depends on decisions and directions taken over the next year … will make for a very long blog series as is … )

AnyData: Another Analytics Arriviste from Across the Atlantic

Maybe some good is coming of all the gross incompetence in public sector spending, unreasonably long payment terms, and multi-nationalization of contemporary British companies … the last few years have seen more Analytics companies start in the UK than in the rest of the English speaking world. Anydata, founded in May, 2013, is one in the long list of UK-based spend analysis providers that have been receiving coverage here on SI and over on SM over the past year or so.

It’s one of the more unique offerings as, in some ways, it has more in common with Agiloft, a BPM (Business Process Management) vendor which recently forayed into Contract Management, building its first application in a matter of days using its visual development environment.

Like Agiloft, and unlike many other vendors in analytics, Anydata started out by building a visual development framework upon which it built its spend analysis offering. This gives it a number of advantages which include, but are not limited to, rapid configuration, rapid report and dashboard construction, rapid visualizations (that is on par or faster than Tableau, QlikView, PowerPivot, Birst, and other platforms they are typically compared against), and rapid development of workflows to support additional data collection.

The analysis platform is centered around powerful dashboard-driven analytics that can be customized by client from dozens of dashboard templates that include historic, strategic, geographic, vendor, company, office, cost-center, and chart-of-account overviews as well as savings opportunities, invoice opportunities, and category opportunities.

The categorization is quite powerful, and currently second only to Sievo in functionality currently on the market. Sievo’s unique multi-pivot drill-down approach allows users to classify data in chunks in any way they want to define those chunks in any order in a very collaborative fashion, which is currently unique on the market today. And while the AnyData approach is not as collaborative, it is as powerful as you can define chunks not on pivots and values, but on queries which can then be replayed, in the order of your choosing, as data is reloaded. So instead of having to define a three level breakdown to select a specific group of transactions for a category, it’s a simple query — which allows for much faster categorization if you are a power user good at creating SQL queries. Much faster.

And, rather uniquely, it has a very powerful data intelligence feature that allows an analyst to query and inspect the data and meta-data on a recently imported data source for the purposes of validating the accuracy and completeness — an activity that should go well beyond just validating the basic check-sums (against the annual financial reports). With AnyData’s platform, you can quickly identify sums, trends, and outliers for any time period of interest, use sliders to zone-in and zone-out on potentially anomalous data, use filters to restrict to dimensions (and even facts) of interest, and understand the characterization of the data you are importing. Not only does this help immensely in cleansing, but helps you pinpoint errors that standard techniques miss in cleansing and classification.

It has additional strengths, and, of course, weaknesses compared to other tools on the market — which can be explored in depth in the Spend Matters Pro series co-authored by the doctor and the prophet [membership required] (Part I) — but this should give you a good introduction to, and flavour for, what Anydata is.