Smart Spend Analysis: A bird’s eye view
The biggest myth surrounding spend analytics is the belief that such a strategic initiative requires an organization that has reached a certain level of stability and maturity. Almost every organization has visibility into its expenses, albeit to a limited extent. Every organization, in its own ways, attempts to keep its expenses in check. It is the manner in which they achieve that objective that differentiates them.
While smaller organizations may feel Microsoft Excel more than satisfies their requirements, slightly bigger organizations might feel the need to build a tool specifically for this purpose. Then there are organizations with operations on multiple continents that employ varying ERP systems and still need the same degree of visibility. Such organizations are better off procuring a third-party spend analytics tool that helps to integrate their data.
Most organizations opt for a spend analytics tool only after home-grown tools have either failed, or have reached a stage of saturation. As a result, the expectations from a third party spend analytics tool are reasonably high. However, most organizations are not fully aware of the nuances of such tools and how to harness their full potential.
The onus of this activity typically lies on the team responsible for implementing the solution. For most of the well-known vendors, this implementation team is either another partner company or a completely unrelated entity. As a result, there is a huge loss in translation between what the product management team conceptualized and the way the solution is finally implemented. The simplest way to mitigate this risk is to opt for a vendor with a built-in implementation department. This ensures that 40% of the most common problems are solved before they even come up.
Download the latest whitepaper from Zycus to gain a detailed understanding on how a better and a smarter spend analysis solution can benefit your organization.
Highlights of our latest whitepaper include:
- Evolution of spend analysis
- 3 elements of spend analysis – Descriptive, Prescriptive & Predictive
- 5 ways to get the most out of a spend analysis tool