Cloud Computing Journal

Rosslyn Analytics, a technology company that specialises in spend analysis, has revealed its 2010 predictions for the spend management industry. The predictions have been developed based on conversations with customers, partners and industry experts.

“The introduction of new technologies developed specifically for procurement is radically transforming the spend management industry in favour of customers, not vendors, which have historically benefited from the selling of complex, expensive and unproven ERP-class solutions,” stated Charles Clark, CEO of Rosslyn Analytics. “Organizations are re-evaluating spend analysis as a springboard to modernizing their procurement function, enabling decision-makers to standardize the collection, management and sharing of spend intelligence that drives business performance.”

Top-Five Predictions for 2010:

1. Data extraction tools will surge in popularity as organizations seek to leverage investment in ERP systems: Organizations do not have the budget, resources or interest to spend money on the ‘latest’ ERP or BI solution when an extraction tool can cost effectively aggregate a company’s spend data from disparate systems in hours.

2. System-agnostic web-based automated spend analytics platforms will be accepted by customers as the easiest, most effective means to managing enterprise-wide spend data: Decision-makers would rather have their teams focused on strategic decision-making that delivers real, sustainable value to the business, than managing data.

3. Organizations evaluating spend management vendors will increasingly demand proof that a solution can deliver a return on investment: In today’s business environment, when budgets are heavily scrutinized, decision-makers need to show tangible benefits as quickly as possible.

4. Acceptance of enterprise mash-ups will be driven by demand from business users: Mash-ups give business users the ability to easily run pre-packaged analytic applications as needed, via a web-based platform, without the need to burden IT departments.

5. Predictive analytics will become the must-have tool for procurement and finance: Advanced analytics are helpful, but it’s not enough in today’s economic environment. Organizations need predictive modelling tools in order to proactively manage costs, supplier relations and corporate risk, all of which affects our bottom-line.

“The spend management industry is undergoing profound changes as result of the rapid customer adoption of new technologies and delivery models such as cloud computing and software as a service,” added Charles Clark. “In 2010, we will witness at least two well-known companies – and we all know who they are – admit they are struggling because they failed to change their business models in anticipation of this massive paradigm shift.”