In the “we’ve got an App for that” era, the question is not creating an App or having ready access to one. The real question is what it will do for you from a practical and measurable standpoint. In short, what is the ROI?

Of course, I wanted an example of a real-world solution to answer that question beyond an abstract or conceptual level. After screening the industry of available players, I selected Zycus’ AppXtend.

This article is about AppXtend case study on maximizing ROI through composable procurement. It discusses what composable procurement is and the benefits it offers. Some of the important points from this article are that composable procurement can minimize operational costs, accelerate time-to-value, enhance scalability, and simplify integration.

In the spirit of full disclosure, I have followed Zycus since 2009, starting with the Procurement Insights New Titans of the SaaS World Series. Besides Zycus, the series featured emerging service providers such as Coupa,  QSTRAT and etouches (now Stova).

For many of the same reasons, I chose Zycus as an emerging SaaS titan in 2009; in 2023, their work on developing AppXtend was also on the leading edge—this time around, with “composable” procurement App development and integration.

Here is an excerpt from my previous post on procurement App development that includes the link to a corresponding whitepaper that is worth a read:

“The level of adaptability in a procurement infrastructure plays a critical role in how well an organization can handle its present, future, and unique needs. This is where the concept of “composability” gains importance.” – Composable Procurement: Adapt Faster, Build Quickly, Drive Value (White Paper 2023)

There is undoubtedly an abundance of procurement Apps already in the market. However, of all the information and demo invites I received, Zycus was the first to present “composable” procurement App development.

Unlock valuable insights about composable procurement through my comprehensive article: How To Collaborate Effectively in the New Disruptive Innovation Era

In the meantime, in the balance of this article, I will focus on the ROI model presented by Zycus and encourage you to share your thoughts on said ROIs.

For example, do they resonate with you? Are there other ROIs that should be on the list, and what do these ROIs mean to you on a practical, bottom-line basis?

These questions are important because, as a CIO survey reports, while most CIOs believe there are 100 Apps in use at their company, the actual number is more than 900. In short, the App era is well underway, and organizations need to get a handle on them for various reasons, including security and operational continuity – and a good place to start is calculating their ROI.

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Calculating AppXtend ROI

Here are the main ROI benefits of a composable procurement App. To ensure that I am sharing these with you as presented to me, I am doing so unabridged and without adding my usual assessment.

However, in a future post, I will step out from behind the reporting desk and let you know my thoughts – which I know you will find interesting.

1. Minimizes Operational Costs:

Systems for modular procurement need minimal ongoing maintenance costs. Upgrades to individual components can be made without affecting the overall tech stack. Simplified integration and scalability result in additional cost reductions.

2. Accelerates Time-to-Value:

Rapid construction and reconfiguration of procurement solutions are made possible by composable applications. Through suitable modules, new features and improvements can be introduced smoothly with little disturbance.

3. Enhances Scalability:

Based on organizational requirements, the modular design enables flexible scalability of individual elements or complete systems. Cost savings are brought about by this scalability.

4. Simplifies Integration:

Composable modules are securely connected via open APIs, which also make it easier to integrate new apps, third-party solutions, and legacy systems. This lowers the expense and complexity of integration.

5. Fosters Innovation:

Continuous evolution can benefit from new advancements by treating functions as separately upgradeable services. Through API-connected modules, capabilities can be mixed and combined. Teams working on procurement may rapidly test out fresh ideas.

6. Addresses Unique Needs:

On a platform that can be easily customized, such as AppXtend, additional applications designed for certain specialized needs can be effortlessly incorporated to meet the demands of businesses, markets, or customers. The procurement systems are therefore made future-proof.

7. Futureproofs Investments:

The adaptable, API-based architecture makes sure that procurement systems can scale as new business needs or technological advancements occur. The useful life of current investments is increased as a result.

8. Improves Supplier Collaboration:

Collaboration between parties is increased when supplier networks and procurement systems are connected via open APIs. Transparency and efficiency are fueled by real-time data transmission.

9. Enhances User Experience:

Usability and adoption are enhanced through modular user interfaces and processes designed for particular user groups or tasks. The user experience is consistent across all composable applications.

Now it’s your turn; what do you think of composable procurement Apps? Let’s have a conversation with our experts and explore how this innovative solution can transform your procurement process.

Related Read:

1. Driving Agility in Procurement with a Composable Application Platform
2. Unleashing ROI Potential: The Power of Composable Procurement
3. 4 Ways to Boost Procurement ROI
4. Procurement Process: 7 Steps for Optimal Efficiency and Cost Savings
5. Procurement vs. Purchasing: The Definitive Guide
6. Top 10 Winning Skills for Procurement Professionals
7. White Paper: Composable Procurement: Adapt Faster, Build Quickly, Drive Value
8. Unleashing ROI Potential: The Power of Composable Procurement
9. Zycus Praemia Rewards Program empowers its customers to be the Cognitive Procurement Ambassador