I love the active engagement within my community – including the comments and questions I receive in the virtual mail or message bag every day.
It was not surprising that one of the most frequent questions I received today related to the $2 billion Zip valuation. More specifically, what did I think about it?
Here are my preliminary thoughts:
As for Zip, while great news for investors, it doesn’t necessarily mean much for improving the 80% initiative failure rate.
Regarding the above, they are an outstandingly successful venture because they made money and achieved unicorn status, so to speak.
From a practical, everyday procurement world standpoint – I don’t see how this benefits anyone other than those who invest or invest in the company.
Off the record, I have been told that they admit to lacking practical expertise in procurement.
For me, it is a simpler equation—in the 40-plus years I have witnessed big deals and big winners, the only number that matters is that 80 percent of initiatives fail.
Based on the above and the lack of follow-up information on the status – including the progress of the Databricks win earlier this year- is the following a fair statement: Do they care more about the perception of capability versus the reality of their continuing limitations?
How Many ProcureTech Unicorns Since 2000
Seeing we are in the GenAI age, I asked ChatGPT the following question: What ProcureTech companies have received a $1 billion or more valuation since 2000?
Here is the list of the top ProcureTech unicorns since 2000:
- Coupa
- Ivalua
- Tradeshift
- Tipalti
- Airbase
- Zip
- Jaggaer
- GEP
- Fairmarkit
- Tealbook
The ChatGPT response closed with the following paragraph:
Conclusion: The growth of these ProcureTech companies, reaching valuations of $1 billion or more, highlights the increasing demand for technology solutions that optimize procurement, manage suppliers more efficiently, and provide real-time analytics for better decision-making. The adoption of digital procurement solutions has accelerated over the past two decades, driven by the need for automation, cost savings, risk management, and supply chain resilience.
The Real Question
When I asked ChatGPT, “What are the implementation success rates of the above companies? ” I received the following message: “However, specific implementation success rates in terms of percentages are not widely published in public reports or case studies.”
The answer to the above question will tell you that these billion-dollar valuations are the only numbers that really matter. Given the generational initiative failure rate of 80%, from my standpoint, until I see specific numbers regarding success, news like this has little relevance beyond the small percentage of people going to bed a little richer tonight.
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Procurement Insights
Hi, Jon – Zip $2 Billion Valuation, is it hype or reality?
Posted on October 21, 2024
0
I love the active engagement within my community – including the comments and questions I receive in the virtual mail or message bag every day.
It was not surprising that one of the most frequent questions I received today related to the $2 billion Zip valuation. More specifically, what did I think about it?
Here are my preliminary thoughts:
As for Zip, while great news for investors, it doesn’t necessarily mean much for improving the 80% initiative failure rate.
Regarding the above, they are an outstandingly successful venture because they made money and achieved unicorn status, so to speak.
From a practical, everyday procurement world standpoint – I don’t see how this benefits anyone other than those who invest or invest in the company.
Off the record, I have been told that they admit to lacking practical expertise in procurement.
For me, it is a simpler equation—in the 40-plus years I have witnessed big deals and big winners, the only number that matters is that 80 percent of initiatives fail.
Based on the above and the lack of follow-up information on the status – including the progress of the Databricks win earlier this year- is the following a fair statement: Do they care more about the perception of capability versus the reality of their continuing limitations?
How Many ProcureTech Unicorns Since 2000
Seeing we are in the GenAI age, I asked ChatGPT the following question: What ProcureTech companies have received a $1 billion or more valuation since 2000?
Here is the list of the top ProcureTech unicorns since 2000:
The ChatGPT response closed with the following paragraph:
Conclusion: The growth of these ProcureTech companies, reaching valuations of $1 billion or more, highlights the increasing demand for technology solutions that optimize procurement, manage suppliers more efficiently, and provide real-time analytics for better decision-making. The adoption of digital procurement solutions has accelerated over the past two decades, driven by the need for automation, cost savings, risk management, and supply chain resilience.
The Real Question
When I asked ChatGPT, “What are the implementation success rates of the above companies? ” I received the following message: “However, specific implementation success rates in terms of percentages are not widely published in public reports or case studies.”
The answer to the above question will tell you that these billion-dollar valuations are the only numbers that really matter. Given the generational initiative failure rate of 80%, from my standpoint, until I see specific numbers regarding success, news like this has little relevance beyond the small percentage of people going to bed a little richer tonight.
30
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