Gartner faults SAP Ariba for neglecting its market-leading application over the last two years, precipitating its fall from grace. SAP Ariba vows to address the issues and return to prominence. Strategic sourcing applications created a ton of value over the years. Buyers received tremendous cost savings. Suppliers were beat up with price transparency and real-time bidding.
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Gartner faults SAP Ariba for neglecting its market-leading application over the last two years, precipitating its fall from grace. SAP Ariba vows to address the issues and return to prominence. Strategic sourcing applications created a ton of value over the years. Buyers received tremendous cost savings. Suppliers were beat up with price transparency and real-time bidding. Strategic sourcing applications were initially largely separate from e-procurement applications.
Companies that produced and sold one, did not generally compete in the other market. Over time, many of the stand-alone strategic sourcing applications were bought by e-procurement vendors and vice versa. In fact, 9 or 10 of the 14 strategic sourcing application suite vendors in the Magic Quadrant offer their product as part of a larger spend management suite.
But surely the share or, at least the growth, of that market has been eaten by software. In industry after industry e. In this battle, both types of players usually evolve and survive. But in this battle between software and managed service, there is always relentless, inexorable pressure on the managed service to automate and provide transparency.
The arc of managed services is long, but it bends towards software! I might trademark that. Almost everyone who built a strategic sourcing application, built a portal for enterprise buyers to invite their suppliers. A buyer could only use their own RFP templates and supplier ratings.
Ariba has tried to join its network thinking with its sourcing product e. Many of you readers also watched the strategic sourcing industry evolve. What other lessons have I missed? Share this:.
Gartner Magic Quadrant for Strategic Sourcing Application Suites
SMART by GEP provides complete source-to-pay functionality in one user-friendly, cloud-native platform, inclusive of spend analysis, sourcing, contract management, procure-to-pay, savings project management and savings tracking, invoicing and other related capabilities. And with superb support and service, GEP is an industry leader in customer satisfaction. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. About GEP GEP helps global enterprises operate more efficiently and effectively, gain competitive advantage, boost profitability, and maximize business and shareholder value. Fresh thinking, innovative products, unrivaled domain and subject expertise, and smart, passionate people — this is how GEP creates and delivers unified business transformation solutions of unprecedented scale, power and effectiveness. In addition, the primary research firm in the management consulting sector, ALM Intelligence, ranks GEP leader in procurement strategy and supply chain consulting.
Magic Quadrant for Strategic Sourcing Application Suites
GEP Named a Leader in Gartner Magic Quadrant for Strategic Sourcing Application Suites