|
|
Like this article? PLEASE +1 it! |  |
|
Spend Analysis versus Spend Intelligence: More Than a Semantical Difference
Written by: Jon HansenArticle Overview: I believe the phrase "spend intelligence" to be misleading. To me, it sounds like a new take or sub-segment of business intelligence software applications which offer analytics and dashboard capabilities and sit on top of existing systems of record. The problem is that spend visibility and analytics is much more complex, requiring data cleansing, rationalization, classification and other efforts which go far beyond what is needed to gain insight into basic HR, financials, IT and other internal information, which fall cleanly in to the BI camp.
 |
Free Download - Is supplier incumbency a major problem with government contracting? By Jon Hansen |
Spend Analysis versus Spend Intelligence: More Than a Semantical Difference
I believe the phrase "spend intelligence" to be misleading. To
me, it sounds like a new take or sub-segment of business intelligence
software applications which offer analytics and dashboard capabilities
and sit on top of existing systems of record. The problem is that spend
visibility and analytics is much more complex, requiring data
cleansing, rationalization, classification and other efforts which go
far beyond what is needed to gain insight into basic HR, financials, IT
and other internal information, which fall cleanly in to the BI camp.
The above statement is from a July 11th, 2006 blog post (no, not
Procurement Insights) that reflects one of the main reasons why 85
percent of all e-procurement/supply chain initiatives fail to achieve
the expected results. Specifically, the reference to "spend visibility
and analytics" as being "much more complex, requiring data cleansing,
rationalization, classification and other efforts."
Now in all fairness, this dismissive view of spend intelligence is
representative of the limitations associated with traditional
equation-based ERP applications in which the cycle to extract, let
alone analyze meaningful data was onerous. In other words, unless you
understood the basic differences between an equation-based versus an
agent-based approach to solution development you would quite logically
make the same assumption. You would be wrong, but you would be
justified based upon your focus on IT or ERP-centric applications, and
the limited framework within which they operated.
However, and to illustrate my point regarding the importance of
having both a broader vision and understanding of the tremendous
breakthroughs in solution architecture associated with agent-based
application models, less than two months after the above referenced
blog post the following excerpt from a September 1st, 2006 article
titled "Spend Intelligence: The Next Wave of Spend Analysis" is telling:
"As corporate procurement organizations are charged with securing
products and services of the best quality at the lowest possible cost,
their enterprises are counting on them to be much more than just “order
takers.” To accomplish that, procurement organizations must develop
capabilities in spend intelligence.
Spend intelligence takes spend analysis a step further. It
enables the enterprise to take what it knows from the spend data it has
gathered and use it to act on forward-thinking initiatives. In other
words, spend intelligence provides actionable information."
The key phrases here are forward thinking, and actionable information.
Both of which were not even remotely possible on a real-time,
real-world basis within the context of traditional ERP-centric
applications. In fact, by the time you went through the painful cycle
of extracting (the term pulling teeth comes to mind) information from
an ERP system, and then cleansing, rationalizing, and classifying the information the data was outdated and for the most part useless in terms of providing relevant insight in the here and now.
The ability to simultaneously gather, analyze and apply spend
intelligence on a real-time basis remains an elusive element for
ERP-based applications. For this reason, you need to look beyond the
realms of what is known, and begin to understand the dynamic, real-time
capabilities of solutions such as the ones offered by companies like Zycus. Leveraging key elements such as advanced algorithms, these organizations have taken
spend analysis the step further to spend intelligence.
By focusing on the results that spend management technology can
achieve, the objective of the groups is to identify through the
collaboration of its members the best practices that lead to
sustainable spend management savings.
Analysis of Twitter Buying Tweetie
The Future of Business Intelligence: Did Gartner Get It Right?
To “Buy” or to “Start”, that’s the $64,000 Question?
General Intelligence Is Not Enough
Highest and Best Use Analysis
Related Forum Posts
Re: Startup blogs
- It is true that we are all told to write a blog, and I'm with Tim Ferris on this. Spend time on your product development, sales, service etc before you think about a blog.
Re: Why You Need to Redesign Your Website Right Now
- This comment might be a little off base but I hope not. My personal opinion of having a great website design is it doesn't matter one little bit if you don't have traffic. You can have the best looking WEB 2.0 site on the Internet but if no one see's it it won't do a bit of good. Spend the majority of time building traffic and the least amount of time changing your site especially when you're new or have a new site.
Franchise Choice
- I would:
.Spend time evaluating what my passions in life were and how i could take more time to be doing those things - work or social or family
.spend time evaluating what would help me get to where i wanted to be - not concentrating on moving away from something i.e a job
. Look at what skills I have and where i needed training i.e sales.business management/retail management e.t.c - what ever is needed. I would then invest in myself and acquire those skills on the open market from reputable training providers
. Set up my own business doing something i loved
. Invest the money saved into me, sales and marketing and mentoring from succesful people who had done what i was trying to do.
Re: Billion Dollar Business
- [quote="mphcoach":2ce34yto]How do you create a billion dollar business?
Spend two billion on an airline - boom, boom!
[/quote:2ce34yto]
It's interesting how the government - of any country - can make or break businesses. I'm not an expert on the airline business, but wasn't it deregulation in the 70s that put the kibosh on everything?
Although I think things weren't too bad, until after 9/11, and then they started hiring more security and not hiring more air traffic controllers --with just as much efficiency as you might expect from a government-run program, and things have been going down hill ever since.
Re: Reduce Bounce Rate
- Website bounce rate matters most today. You can decrease by providing
1. Good Web Layout And Design
2. Relevant and unique content
3. Content clear and proper navigation
4. Improve website loading speed
5. Add relevant images
6. Analysis of keywords
7. Minimize pages
8. optimize your target keywords
9. Good quality of links
10. Take People Where They Want to Go
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: Erin Ferree, Small Business Branding Coach
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
February 2012 Top 100 Leadership Experts to Follow on Twitter
Please Stop Calling it Coaching!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
What Aweber Can Do For Your Online Business
SEO and the Entrepreneur
Executive Blind Spots
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.