Category Archives: rants

Lies, Damn Lies, and Emptoris …

Observant readers of SpendMatters, which just may be the only other blog you have to read daily*, will have noticed Jason’s “Emptoris: Going Under the Numbers”* which contained one of my favorite lines of the year (sorry SpendFool, you’ll just have to work harder on flashing that wit): Lies, Damn Lies, and Emptoris …. In his post, Jason was commenting on the shallow depth of their recent financial announcements and that we don’t really know how well they are doing since “good” statistics can be swayed to say anything you want, but that’s not why the line stuck with me. It stuck with me because after recent conversations with other industry observers, including those who usually know what’s going on, it’s clear that no one outside of Emptoris (or at least no one that hasn’t been sworn to a level of secrecy that most governments would envy) really knows what Emptoris has, what they are doing, or where they are going. I believe that we knew more about East Berlin when the wall was up, Russia when they were hiding behind the Iron Curtain, or China when the red curtains were drawn then we know about the software and service offerings of Emptoris.

You might remember my Emptoris Update post back in January that was about as informative as a hastily written press release after a long night of binge drinking and debauchery where the writer was working against a 6:00 am deadline at 5:55 am. What I didn’t tell you is that most dentists have an easier time pulling teeth then I had extracting even those few tidbits of information, and I only got those because they were going into a press release.

I know some companies are secretive … but when you consider how much time they spend on press releases, that they hold user events, and that they even take the time to brief bloggers, you’d think we’d know a lot more … especially since they claim to be #2 and on track to displace Ariba as the largest solution provider in the space. But the reality is that their press releases are mostly fluff, their user events are generally closed to current users only (with us inquisitive bloggers banned), and the briefings they give are not much more informative than their brochures and press releases … even though the PowerPoints are quite nice. (That’s right … PowerPoints!) I’m left wondering just how much is release-ready product versus how much is still in development.

It all comes down to the fact that if they are so great … then why aren’t they shouting it from the rooftops? Why aren’t they doing the Procuri (acquired by Ariba, acquired by SAP) Extreme Tour and showing their product to every Larry, Darryl, & Darryl that will take the time to check it out? After all, if they’re as good as they claim, and that far above everyone else … then you shouldn’t be afraid of IP theft. Because by the time your competition figures out how to duplicate what you have, your innovative team would have you two releases down the road and still years ahead of the competition.

At this point, you’re probably saying the doctor has gone mad! Especially since he’s just announced site sponsorships are forthcoming. Well, my response to this is I doubt they’d sponsor Sourcing Innovation anyway. They did not sponsor Spend Matters, I know they had the chance, and considering their goal appears to be to go head-to-head with Ariba and win, you’d think they’d want every last potential customer to not only know about them, but think of them every time Ariba is mentioned. (Especially considering they also want to make sure they don’t lose the middle market to Procuri, a competitor that claims to be winning more deals then Emptoris when they go head to head. And Spend Matters was the one place they could have their logo side-by-side with Ariba and Procuri.) All I can say is that I’m not crazy. Just tired of the poor reception.


* I’m not saying Spend Matters is the only other blog you should read – as I also strongly endorse e-Sourcing Forum [WayBackMachine] and Supply Excellence [WayBackMachine], and Procurment Central [WayBackMachine] (at least when Dave has the time to publish), especially when David doesn’t have to resort to the nth+1 post on e-RFX (can you believe that there are still people not as enlightened as we are who still don’t get the basics of eSourcing?) and Tim talks about something other than the latest fiasco in the Detroit automotive sector (we get it … the Geico caveman is smarter, and until such a time as the Detroit industry giants bring in a management team with at least the intelligence of the Geico caveman in supply and spend management, nothing’s going to change) … but if you had to pick just two blogs to read daily, and consolidate the rest in your RSS feed reader for later, Spend Matters would be my other choice.

* All posts prior to 2012 were removed in the Spend Matters site refresh in June, 2023.

(AT&T is) Junking the Jack

Yesterday, CNN reported that AT&T is beginning to extinguish the brand of cellphone operator Cingular and that it will launch a campaign Monday to mark the change.

Furthermore, AT&T’s name and logo will eventually replace Cingular in a process expected to take several months. And I don’t know if I should laugh or cry.

First of all, it shouldn’t take more than a few minutes to cut and paste one logo or name in place of another. Even the great incompetent PHB would realize that a simple change such as this shouldn’t require more time than it takes the magic paper machine to spit out a number of pages equal to the current number of pages with the wrong logo. Updating a TV add with today’s media editors is just a matter of cutting out the old animated logo and splicing in the new one, and making a few tweaks. Maybe a day if your Media PC Guru is a perfectionist.

I know, I know – the real issue here is the brand, and I recently told you Don’t Buck the Brand – but when you get right down to it, that’s exactly what this multi-phase multi-month multi-multi-million dollar effort is doing – bucking the brand. After all, their number one goal is to squash it like a bug. So why spend tens of millions of dollars of advertising a joint brand just to spend tens of millions of dollars again in a few months to advertise a single brand? Why spend millions of dollars on new uniforms just to toss them all into the incinerator in a few months? Why pay outrageous maintenance fees to update all of your software to automatically include two logos on all printed materials just to pay those outrageous maintenance fees again in a few months to print one?

There’s smart procurement, there’s dumb procurement, and then there’s just truly wasteful procurement. And that will likely be the next year at AT&T.

And all for no good reason. Unless they think that either (a) we’re too dense to understand a straightforward announcement that says “We, AT&T, bought Cingular. You are now an AT&T customer. We pledge to give you the same great quality of service. Your bills will now come from AT&T – here’s what the new bill will look like. For questions, see our website or call.” or (b) we’ll leave in despair because we believe that AT&T will not offer us the same quality of service – in which case their multi-month, multi-multi-million dollar effort to convince us AT&T really is Cingular will simply delay the inevitable – since if we really do believe that it’s the bouncing jack logo that symbolizes quality, then we’re still likely to leave when it disappears. Either way, they’ll be wasting hundreds of millions of dollars when all is said and done – hundreds of millions of their customer’s money – and for many of you, your money – since it will be their customers, and maybe you, who will end up paying more for the same service in the end.

So, even though I want to laugh at the idiocracy, all I can do is cry.

Catching up with Aberdeen

When I was in Boston, I took the time to visit with some of the Supply Space Focussed Aberdeen folks to talk about the sourcing & procurement space and what the year ahead had in store for us. (Since I have been told by ex-analysts that their CEO despises us blogger types, even those who generally say good things about the quality of content coming out of Aberdeen, I will not give names, dates, or conversation specifics to protect the innocent, but simply say they are really great, smart, people.) If you’re interested in the nitty-gritty, you can always start by downloading their research agenda, but I can tell you that their plans go well beyond that.

First of all, they plan to continue the aggressive research schedule institutionalized by The Great Sudy in his short tenure (who averaged close to one major study a month) across each of the channels that they address. Secondly, they plan to augment those major benchmark studies with a significant number of shorter insight and thought pieces focussing on specific issues and / or best practices that you can use to improve your overall supply chain operations. (Apparently their goal is 10/month. Wow!) Thirdly, they plan to delve into a number of the insights that came out of the CPO conference in November and break ground in the relatively untouched areas of supply chain finance, next-generation supplier performance management (SPM), and non-traditional industry verticals. All I can say is that if they do all this, AMR will have some serious work to do keeping up.

Now I know that some prominent individuals have questioned Aberdeen’s relevance in the mid-market at one time or another, and some have even had some valid points, but the following truths hold: (a) if its good for big business, then some elements will certainly be good for medium-sized businesses, since it is essentially impossible for a business with poor practices to get large or stay large in today’s ultra-competitive market and (b) the data is based on your responses and any survey with a large number of respondents is going to contain a relatively significant number of responses from the mid-market. Yes, you might need to take some of the results with a grain of salt, or, more appropriately, with some good consulting advice from those companies that have helped similar companies undertake similar initiatives, but it’s much better to have valid data and supported conclusions to start with then to start with no data at all. So I say: Go Aberdeen Go! and continue to break ground in the analyst space. Right now, the issues need all the attention they can get – and given that the current talent pool, although not as well known, is more talented than they are being given credit for, one can be sure the research is only going to get better and better.

So participate in their surveys, get your free research, and make informed decisions. Furthermore, if you have ever attempted advanced sourcing, be sure to take their Advanced Sourcing Survey. Their last benchmark study in this area found that companies employing advanced sourcing techniques saved on average 12% more than their competitors who did not. This study is going to delve deeper into the issue and help you determine which technique will help you</> the most. It’s worth your time.

A Public Nomination (for Jason Busch)

Those of you in the know will know that Supply & Demand Chain Executive‘s annual Pro’s to Know list is coming up and that it’s now nomination time. Nominations are due in two weeks, so please make sure to do yours ASAP. (I’ve made mine!)

In hopes that you would join me in not overlooking one individual who has made a significant contribution to the space over the last two years, I’ve decided to make one of my nominations public, exactly as I submitted it, here on this blog. If you agree with me, please join me in my nomination. Although it is Supply & Demand Chain‘s prerogative to choose whomever they want to, I’m sure it would be very hard for them to overlook an individual who received hundreds (or thousands!) of nominations.


Name    of nomineeJason Busch
Title   of nomineeEditor
Company of nomineeSpend Matters

In 250 words or less, please describe how the nominee has personally helped raise the profile of Supply Chain and increase the recognition of the importance of Supply Chain as a strategic function within the enterprise; why the nominee personally believes that it is important for Supply Chain to be recognized today as a strategic function within the enterprise; and what, in the nominee’s opinion, technology’s role is in enabling Supply Chain to achieve a more strategic role within the enterprise.


For over two years, Jason Busch has been diligently blogging multiple times a day on issues, events, and best practices in the sourcing, procurement, and supply chain space and working hard to raise the profile of the space as a whole.

 

 

Jason Busch personally believes that it is important for Supply Chain to be recognized as a strategic function within the enterprise because he has spent over ten years working in the space, first as a service provider (at FreeMarkets, a pioneer e-auction powerhouse) and then as an independent consultant and analyst (at Azul Partners), and has seen first hand the transformative effects that good supply chain management best practices can have on an organization.

 


Having worked for a technology provider, Jason Busch knows first-hand what enabling supply and spend management technology can do for the enterprise – that’s why he spends time on a weekly basis talking to people at major software companies in the supply chain space and posting their solution profiles on his blog so that everyone can be informed of the latest technology offerings and how it can help them transform their operations. Jason Busch’s opinion is that technology will continue to help business transform their supply chain operations and become more efficient and more productive as time goes on.

For our selection committee to better evaluate each candidate, we ask that you please cut and paste below a current bio for the nominee.


Jason Busch is Founder and Managing Director of Azul Partners, a marketing consultancy that advises software and services companies. Prior to launching Azul Partners, Jason spent five years at FreeMarkets (acquired by Ariba) leading a range of efforts and initiatives. Jason has also served as a consultant with Northeast Consulting (acquired by Nervewire) where he helped clients with technology and strategic planning decisions.

 

 

Jason has authored over one hundred columns and whitepapers on technology and economics. His work has appeared in leading trade and business publications in the US, Europe, and Asia. Regarded for his forward thinking opinions, Jason has been quoted in numerous articles, books, and academic papers and is a frequent speaker and panelist at industry conferences. He has also served as a guest lecturer at US and European universities.

 


Jason holds an MA in history from the University of Pennsylvania. He also completed his undergraduate studies at the University of Pennsylvania, receiving a BA, cum laude, with departmental honors, in history and English literature. In addition, Jason has completed coursework in the Wharton School.

The Talent Series VIII.V: Boarding the Bandwagon

I’ve been bemoaning the talent issue for months – ever since I realized that it was a lot worse than just about everyone* would like us to think that it is. With the exception of a few brilliant posts on the Spend Management Talent Game (Part I*, Part II*, and Part III*) by The Prophet, and a few posts back in September on “Attracting Great Talent the Jack Welch Way” by Tim Minahan on Supply Excellence [WayBackMachine] and “Behaviors Correlated to Performance” by THE BLOGGING THUNDER FROM DOWN UNDER on Vendor Management (renamed Contract Capital Management, [WayBackMachine]) it seemed as though I stood alone in my belief in the criticality of The Talent War and my continual efforts to convey to you the extreme urgency of The Impending Crunch.

Fortunately, Aberdeen has raised the alarm and both Supply Excellence and the Purchasing Certification Blog [WayBackMachine] have taken up the cause.

Now you can be confident that I’m not just echoing the cries of the recruiting agencies (whose profits are highest when your needs are most desperate) and go out and attack the problem before it attacks you. I still recommend the Talent Acquisition Strategies I laid out previously and would also recommend that you use my other posts in The Talent Series as a starting point for your research in your efforts to define winning strategies.

* With the exception of the 3rd party recruiting agencies, of course – but they’ve been crying wolf for so long, it’s often easy to ignore their cries.

* All posts prior to 2012 were removed in the Spend Matters site refresh in June, 2023.