Unfortunately, the word solution is an overused misnomer that usually refers to a particular type of technology. As you read the rest of this post, you will find that eVA and its growing success have very little to do with technology – in this case, Ariba, and more to do with methodology. By the way, here is the link to the eVA site: http://www.eVA.virginia.gov.)
As a result, they avoided the trap of eVA becoming a software project, as Bob put it, and were thereby able to shift the emphasis from an exercise in cost justification to one of process understanding and refinement. And while the Ariba application has done the job it was required to do, eVA’s effectiveness has little to do with the technology and more to do with the methodology the Virginia Brain Trust employed. It is when technology (nee software) is seen as the primary vehicle to drive results that it becomes ineffectual and mostly irrelevant. The 75 to 85% e-procurement initiative failure rate gives testimony to this fact. – Yes, Virginia! There is more to e-procurement than software! (Part 1), Procurement Insights (September 12th, 2007)
I wrote this blog’s first post on May 18th, 2007. Of the 2,125 posts I have written since then, the best and most important one is from which the above excerpts originate (Yes, Virginia).
While I have referred to this post many times over the years, it wasn’t until Gartner published their 20th Annual Rankings of the Global Supply Chain Top 25 for 2024 that the enduring relevance of that first Virginia post hit home!
In today’s post, I will explain why solution providers, in particular, should pay close attention to the real secret to successfully elevate a practitioner’s procurement practice.
Why Are Your Clients Successful?
During a recent discussion with Jason Busch, which is starting to become a regular thing, the proverbial light bulb came on. By the way, check out MetalMiner. I have a feeling that I will be writing about this solution in the very near future.
Over the years, I have been asked, “Why are your clients successful.” My answer has always been the same – because I choose successful clients. While it may come across as a cheeky response, there is a great deal of truth in it.
Let’s look at the recently released Gartner Top 25 list.
As I scrolled through the list of familiar names, I realized that I have written about these companies—in some cases multiple times—over the years. By the way, you can access the archives by entering the company’s name in the search box of this blog.
Here are a few examples:
Cisco (ranked #2) – first post: Is Cisco Really Driving 21st Century Supply Chain Innovation? (December 3rd, 2007)
Colgate-Palmolive (ranked #3) – first post: 1998 to 2007 to 2024 DND, Virginia and Colgate-Palmolive’s Timeless Formula For Digital Procurement Success (February 7th, 2024)
Microsoft (ranked #4) – first post: Microsoft Acquires SAP? (A Commentary) (December 5th, 2007)
Johnson & Johnson (ranked #5) – first post: Pharma Supply Chains (Part 1): A problem of focus versus avarice? (October 11th, 2011)
The above are just a few examples of what I have written about Danone, Heineken, and many others over the past seventeen years.
My point for sharing the above are two things:
- The journey to the Gartner 2024 list is an ongoing journey that started in some cases many, many years ago.
- Like the Commonwealth of Virginia’s eVA initiative, these organizations’ success wasn’t due to “buying” a solution provider’s technology. It was a result of their mindset and implementation model, e.g., agent-based versus equation-based. Once again, refer to the excerpts at the top of this article.
How Many Providers Choose the Right Practitioner Clients?
One of the main reasons I called Jason was to get his take on one of the solution providers I am considering for my Top 10 Analyst List. As an aside, it is good to talk with someone who has been in the industry for almost the same amount of time I have. The reason is that even though we have seen the world evolve through a different set of eyes, our shared view of where we are today and our core values for success are the same. In short, it doesn’t matter what decade or technological “breakthrough” the foundations for success – the kind of success the Top 25 have experienced in 2024 are consistently similar.
As a solution provider, you should interview your prospective practitioner clients to determine if they are following the same path of success as the Gartner companies before you decide to work with them.
Unfortunately, in this overpopulated solution marketplace, very few will take the time to initiate this important step because they are under the proverbial gun to generate maximum revenue to justify and satisfy their investors, whose only goal is to get the biggest return in the shortest period of time. Now would be a good time to read my last post – What is the individual and combined implementation success rate of the logos on maps?
As a result, the process devolves from one of collaboration towards achieving mutual success to chest-pounding press releases, marketing-laced case studies, and zero follow-ups down the road to verify successful progress.
Gartner’s recent report that 80% to 85% of all AI initiatives fail shows that the “Let’s live for today – win the business now, and worry about making it work later” approach is like using Tinder to find a life-long partner.
The Takeaway
Achieving an alignment of both individual and shared goals using an agent-based model is the key to enduring success.
30
Procurement Insights
Gartner Global Supply Chain Top 25: Solution Providers – Choose Your Clients Wisely!
Posted on May 25, 2024
0
Unfortunately, the word solution is an overused misnomer that usually refers to a particular type of technology. As you read the rest of this post, you will find that eVA and its growing success have very little to do with technology – in this case, Ariba, and more to do with methodology. By the way, here is the link to the eVA site: http://www.eVA.virginia.gov.)
As a result, they avoided the trap of eVA becoming a software project, as Bob put it, and were thereby able to shift the emphasis from an exercise in cost justification to one of process understanding and refinement. And while the Ariba application has done the job it was required to do, eVA’s effectiveness has little to do with the technology and more to do with the methodology the Virginia Brain Trust employed. It is when technology (nee software) is seen as the primary vehicle to drive results that it becomes ineffectual and mostly irrelevant. The 75 to 85% e-procurement initiative failure rate gives testimony to this fact. – Yes, Virginia! There is more to e-procurement than software! (Part 1), Procurement Insights (September 12th, 2007)
I wrote this blog’s first post on May 18th, 2007. Of the 2,125 posts I have written since then, the best and most important one is from which the above excerpts originate (Yes, Virginia).
While I have referred to this post many times over the years, it wasn’t until Gartner published their 20th Annual Rankings of the Global Supply Chain Top 25 for 2024 that the enduring relevance of that first Virginia post hit home!
In today’s post, I will explain why solution providers, in particular, should pay close attention to the real secret to successfully elevate a practitioner’s procurement practice.
Why Are Your Clients Successful?
During a recent discussion with Jason Busch, which is starting to become a regular thing, the proverbial light bulb came on. By the way, check out MetalMiner. I have a feeling that I will be writing about this solution in the very near future.
Over the years, I have been asked, “Why are your clients successful.” My answer has always been the same – because I choose successful clients. While it may come across as a cheeky response, there is a great deal of truth in it.
Let’s look at the recently released Gartner Top 25 list.
As I scrolled through the list of familiar names, I realized that I have written about these companies—in some cases multiple times—over the years. By the way, you can access the archives by entering the company’s name in the search box of this blog.
Here are a few examples:
Cisco (ranked #2) – first post: Is Cisco Really Driving 21st Century Supply Chain Innovation? (December 3rd, 2007)
Colgate-Palmolive (ranked #3) – first post: 1998 to 2007 to 2024 DND, Virginia and Colgate-Palmolive’s Timeless Formula For Digital Procurement Success (February 7th, 2024)
Microsoft (ranked #4) – first post: Microsoft Acquires SAP? (A Commentary) (December 5th, 2007)
Johnson & Johnson (ranked #5) – first post: Pharma Supply Chains (Part 1): A problem of focus versus avarice? (October 11th, 2011)
The above are just a few examples of what I have written about Danone, Heineken, and many others over the past seventeen years.
My point for sharing the above are two things:
How Many Providers Choose the Right Practitioner Clients?
One of the main reasons I called Jason was to get his take on one of the solution providers I am considering for my Top 10 Analyst List. As an aside, it is good to talk with someone who has been in the industry for almost the same amount of time I have. The reason is that even though we have seen the world evolve through a different set of eyes, our shared view of where we are today and our core values for success are the same. In short, it doesn’t matter what decade or technological “breakthrough” the foundations for success – the kind of success the Top 25 have experienced in 2024 are consistently similar.
As a solution provider, you should interview your prospective practitioner clients to determine if they are following the same path of success as the Gartner companies before you decide to work with them.
Unfortunately, in this overpopulated solution marketplace, very few will take the time to initiate this important step because they are under the proverbial gun to generate maximum revenue to justify and satisfy their investors, whose only goal is to get the biggest return in the shortest period of time. Now would be a good time to read my last post – What is the individual and combined implementation success rate of the logos on maps?
As a result, the process devolves from one of collaboration towards achieving mutual success to chest-pounding press releases, marketing-laced case studies, and zero follow-ups down the road to verify successful progress.
Gartner’s recent report that 80% to 85% of all AI initiatives fail shows that the “Let’s live for today – win the business now, and worry about making it work later” approach is like using Tinder to find a life-long partner.
The Takeaway
Achieving an alignment of both individual and shared goals using an agent-based model is the key to enduring success.
30
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