Monthly Archives: July 2010

The Vendor in Black Comes Back

Editor’s Note: This is the sequel to The Vendor in Black which originally ran here on SI on February 17, 2007. And just like the sequel to The Cat in The Hat (appropriately titled The Cat in the Hat Comes Back) was even more esoteric and radical than the first, so is this sequel. Plus, it’s also quite symbolic, analogic, and terse* in a manner that is meant to obscure the deeper meaning and criticism. It is supposed to be this way. If you think about it long and hard enough, you should understand why. (And if you do not want to think deeply about it, just enjoy the rhyme. It will permeate your subconscious and one day you will have an epiphany.)

This was no time for play.
This was no time for fun.
This was no time for games.
There was work to be done.

All that deep,
deep, deep data,
all that data had to fit a schemata.

When the big boss went
out to a meet for the day,
she said, “somebody has to
clean all this away.
Somebody, somebody
has to, you see.”
Then she picked out two somebodies.
Sally and me.

Well …
there we were.
We were working like that
and then who should show up
but the Vendor in Black!

“Uh-oh!” Sally said.
“Don’t you talk to that Jack.
That Vendor is a bad one,
that Vendor in Black.

He plays lots of bad tricks.
Don’t you let him come near.
You know what he did
the last time he was here.”

“Play tricks?” laughed the Vendor.
“Oh, my my! No, no, no!
I just want to go in
to get off of the road.

Keep you mind on your work.
You just stay there, you two.
I will go to the servers
and find something to do.”

Then the Vendor went right in!
He was up to no good!
So I ran in after
as fast as I could!

Do you know where I found him?
You know where he was?
He was installing an app on the server!
He was!

The disc drive was spinning
and the hard drive heads, too.
And I said to the Vendor,
“What a bad thing to do!”

“But I like to install apps
on the server,” laughed the Vendor.
“You should try it some time,”
laughed the Vendor with splendour.

And then I got mad.
This was no time for fun.
I said, “Vendor! You get out!
There is work to be done.

I have no time for tricks.
I must go back and cube.
I can’t have you in here
installing apps like a rube!

You get out of this office!
We don’t want you about!”
Then I removed the CD
and let the timer run out.

The timer ran out.
And then I saw the tab!
A tab on the screen!
And, oh boy! What a tab!

An obnoxious cleansing tab!
It looked out of sync!
And I said, “Will this ever
work right? I don’t think!”

“Have no fear of that tab,”
laughed the Vendor in Black.
“Why, it will clean your input data.
Just like that!”

Do you know how he did it?
With old spending rules!
Now the data was mapped,
but our reports were April fool’s!

Then Sally looked in.
Sally saw the mess, too!
And Sally and I
did not know what to do.

We should work with the data.
But that mess! What a rot!
“It may never be fixed!”
Sally said. “It may not!”

But the Vendor laughed, “Ho! Ho!
I can clean the mess.
The way I fix report mappings
is express!”

“See here!” laughed the Vendor.
“It is not hard at all.
The way to clean up
a big mess is rule sprawl!”

Then we saw the Vendor code
more rules in the app.
Now the reports were all clean.
But the rules! What a frap!

“Oh, rule sprawl!” He laughed.
“Let me tell you some news.
The way to stop rule sprawl
is to create some more views!”

Whose views did he use?
I looked and saw whose!
And I said to the Vendor,
“This is very bad news.

Now the data is split
between S A P views!”
“But your boss will not
know about that,”

the Vendor did ack.
“She will never find out,”
Laughed the Vendor in Black.

“Her spending reports will have
no need for SAP.
I will clean up those views
with the embedded map-app.”

“But now we have too many views!”
I yelled. “What a day!
Map apps! What next?
Can you take them away?”

“Don’t ask me,” he laughed!
“Why, you know that I’m able!”
Then he popped up a dialog
and the Vendor he tabled.

“I can clean up these new views
before you count three!
No views are too hard
for a Big Vendor like me!”

He ran to the servers
and then the Vendor did twitch,
“It is good that your techs
have the right kind of switch.”

Then he mirrored the SAN!
Whoosh!
Now the views were in twos!

And all I could say was,
“Now what, Vendor?
What do I do?”

But the Vendor just stood still.
He just looked at the rack.
“This is NOT the right kind of a switch,”
the Vendor did ack.

“To axe views with this switch
will be hard, I take it all back.
I can’t do it alone,”
said the Vendor in Black.

“It is good I have someone
to help me,” he said.
“Outside in the van
at the back near the shed!

It is good that I have him
here with me today.
He helps me a lot.
This is Vendor Rep A.”

And then Vendor Rep A
took his Hat off his head.
“It is good I have some one
to help me,” he said.

“This is Vendor Rep B.
And I keep him about,
and when I need help,
then I let him come out.”

And then B said,
“I think we need Vendor Rep C.
These views are too much
for the A Rep and me.

But now, have no fear!
We will clean them away!
The three of us! Vendor Reps B, C, and A!”

“Come on! Take it away!”
Yelled Vendor Rep A.
“I will cleanse the new views
just like this! I avow!

It comes off the old SAN!
It goes to the web cloud.”
And then Vendor Rep B
cleaned up the web cloud

He cleaned it with SaaS,
put the views on dot net!
And then C replaced
all the views with ancient Vignettes!

“But look where it went!”
I said. “Look where it blew!
You blew the mess
off of the SAN. That is true.
But now our views are all free!
What are we to do?”

“Let us think about that now,”
said C, B, and A.
“With some help, we can do it!”
said Vendor Rep C.
Then pop! From the van
emerged Vendor Rep D.
Then, pop! Pop! Pop!
Vendor Reps E, F and G!

“We will clean up those views
if it takes us all day!
If it takes us all night,
we will clean them today!”
said Vendor Reps G, F, E, D, C, B, A.

They ran to the servers
and we ran to them too.
And the big Vendor laughed,
“Now you will see something new!

My Reps are all clever.
My Reps have the muse.
My Reps have good skills.
They will clean all those views!”

But this did not look
very clever to me.
Seven reps to clean views?
That just could not be!

“All those reps do is make more views!”
We yelled at the Vendor.
“Your Vendors are no good.
Take back those pretenders.”

“Take your Vendor Reps G,
F, E, D, C, B, A.
Shove them back in your van
And you take them away!”

“Oh no!” said the Vendor.
“All they need is more help.
Help is all that they need.
So keep still and don’t yelp.”

Then Vendor Rep G
took the phone off his hip.
“I’ll call Vendor Rep H
here to help us, ” he quipped.
“Vendor Reps H, I, J,
K, L, and M.
But our work is so hard
we must have more than them.

We need Vendor Rep N.
We need O. We need P.
We need Vendor Reps Q, R, S, T,
U, and V.”

“Come on! Kill those views!
Kill the mess!” yell the Reps.
And they jumped at the servers
with SQL and greps.

They coded in basic
on terminals Citrix!
Green and black! DOS attack!
The views were transfixed!

Oh, the things that they did!
And they all worked so proud,
It was all one big mess now
all over the cloud!

But the big Vendor stood there
and he said, “this is good”.
This is what they should do
and I knew that they would.

“With a little more help,
all the work will be done.
They need one more Rep.
And I know just the one.”

“Look close! In the back
You’ll see Vendor Rep V.
By his side are Reps W, X, Y, and Z.”

“Z’s a Rep you rarely see.
Don’t ask why. Or what’s up.
But Z is the Rep
who will clean the views up!”

“Now here is the Z
you will see,” said the Vendor.
“And I bet you can’t guess
where he gets all his splendor!”

“He has something called Voom.
Voom is so hard to get,
you never saw anything
like it, I bet.

Why, Voom cleans up anything
clean as can be!”
Then he yelled,
“Time to get going,
Vendor Rep Z!

Do your job, use the Voom!
Time to put on a show!
Hurry! Now Vendor Rep!
One! Two! Three! Go!”

Then the Voom …
It went Voom!
And, oh boy! What a Voom!
Now, you know what the Voom did?

It put everything back!
The views were deleted.
The reports were unhacked!

“So you see!” laughed the Vendor,
“Now your screens are all tight!
Now your work can be done!
Your reports are put right!

And you know where my Vendor Reps are?”
asked the Vendor.
“They all went back to the van
services tendered.

And so, if you ever
need views, now and then.
I will be very happy
to come here again …”

“… with Vendor Reps A, B, C, D …
E, F, G …
H, I, J, K …
L, M, N …
and O, P …

… and Q, R, S, T …
and Vendor U and Vendor V …
and Vendor Reps W
X
Y
and Z!”

* It’s so much more esoteric, radical, symbolic, analogic, and terse than the first, partially because of the forced meter, that the editor sat on it for almost a year while deliberating whether or not the time had come to post it!

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Want Savings? Stop Ignoring Indirect Spend!

Procurement leaders recently summarized a new study by A.T. Kearny that found that “CPOs [are] slow to focus on indirect” categories such as IT, Marketing, Professional Services, Facilities Management, and MRO. This is worrying when you consider that not only do some of these categories represent an organization’s biggest savings opportunity, but that indirect spending accounts for up to 50% of spend in many manufacturing organizations, 60% of third-party spend in non-manufacturing companies, and 90% of spend (or more) in the financial services industry.

This is doubly worrying when you consider that:

  • IT savings can be double digits across multiple categories10% to 15% on PCs and Laptops is normal; and 20% to 40% on consulting and integration
  • Marketing savings can be 20% to 25%and even higher on print spend
  • Legal spend can also be cut by over 20%with appropriate AFAs and negotiation

There are ample savings opportunities where indirect spend is concerned, and they can all be uncovered with good visibility and analysis. To find out how, start with the recent Sourcing Innovation Illumination on Strategic Spend Visibility.

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What’s the ROI of Online Collaboration and Communication Technology?

It’s hard to say, as it depends on what the technology is, what it can do, and how readily (and often) it’s embraced by your people, but it’s probably worth it. Video conferencing reduces travel (which not only takes up time, but costs money at an average of over 1,000 a trip per person), online document sharing reduces wait-times (when you have to rely on mail or courier), and online inter-enterprise information sharing reduces issue resolution time (as compared to phone and fax tag).

If the tools enable collaboration, and you use them with the intent of collaboration, they certainly have ROI, as evidenced by this recent article in Talent Management on “What’s Your Return on Collaboration?”. According to the article, an implementation of an online meeting and conference solution at SAP generated the following returns for the company:

  • a reduction of the average meeting time by 20% which reduces the average amount of time an employee spends in meetings each week by over an hour and a half
  • a reduction in meeting start-up time by over 85% which can save another hour a week if an employee has to attend between 7 and 10 meetings
  • a reduction in travel costs by over 33% which is generally more than what you will save if you just negotiate better rates
  • a 4-fold increase in collaboration attempts — when it’s easier to try and work with someone than work alone, collaboration happens

Now, this is only one case study, but it’s still impressive. Make it easy for your employees to work together, and they will.

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A Hitchhiker’s Guide to e-Procurement: Requisitions, Part II

Mostly Harmless, Part III

Previous Post

An introduction to requisitioning.

In the last post, the requisition was defined as well as the information requirements that were associated with the requisition. This post will address some of the associated challenges of the requisitioning process, some associated best practices, and the benefits that could be expected from an appropriate e-Procurement solution.

Common Challenges

  • Creation Time

    It can take a considerable amount of time to create a multiple line item requisition when a user has to manually look up vendor codes, ERP/MRP codes, product codes, prices, etc.

  • Statement(s) of Work

    If the requisition is for temporary / contract labor, it can be a time-consuming and challenging process to construct the right SOW that will enable the vendor to identify the right resource.

  • Routing

    If the correct department / budget / product codes aren’t used, it can be difficult to route the requisition to the appropriate approvers.

Best Practices

  • Integration with core data systems

    ERP, Vendor Master, Catalogs, Punch-Outs, Marketplaces, and Networks.

  • Templates

    For standard BOMs, SOWs, and other regular purchases that can be quickly completed simply by filling in quantities, hours, and the few bits of information that vary from order to order.

  • Budget-Based Approval Process

    Requisitions are automatically routed to the appropriate budget manager if the request is beyond or outside of the budget.

Potential Benefits

  • Reduced Man-Hours

    Which frees up buyers to focus on more strategic cost-reduction tasks.

  • Faster Processing

    The right information not only gets the requisition to the right approver faster, but provides the approver with all of the information she needs to make a decision the first time.

  • Better Specifications and Statements of Work

    The use of templates written by experts will standardize and improve the requisitioning process.

Once the requisition is finalized, it begins the approval process, which is the subject of the next post.

Next Post: Approvals, Part I

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Done Innovating? No Problem. You can still succeed!

And you don’t have to go waiving NDAs around either. You can stop pretending that you’re still innovating when we all know discovery ended long ago. Thanks to the breadth of today’s marketplace, you have options beyond selling out to a bottom feeder who’ll amalgamate your technology with five other dying products, cross-sell existing product lines, and then milk the maintenance dry.

You can instead choose a strategic “bold retreat”. So if you lack the finances, necessary capabilities, or simply the drive to transition to new technologies and invent new solutions, you can choose to retreat to a defensible niche where your old technology conveys a decisive advantage. Just like Linjett continues to succeed in the leisure sailboat market by focussing on the enthusiast, like Continental continues to succeed with piston engines by focussing on small private aircraft, and like StorageTek continues to sell magnetic tape drives (yes, magnetic tape drives) by focussing on large scale data archives, you can succeed too!

Haven’t upgraded your e-Negotiation platform in five years? No problem! Just ditch the Fortune 500 market and focus on the mid-market where most companies still haven’t adopted a solution. It’ll be new to them for five more years!

Haven’t upgraded your BI tool in five years? No problem! Streamline your integration with the big ERP tools that your average Fortune 500 can’t get rid off. Become the BI tool of choice in that market and continue to rake in recurring maintenance fees at 22% year after year.

Haven’t upgraded your catalog-based e-Marketplace in five years? No problem! Follow the crowd and rebrand it as a “supplier network”. Now it’s new for five more years!

In other words, you can fail at modern technology but still win if you’re bold about it! (Of course, whether or not your customers win is a completely different story.)

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