My thoughts on the ORO – ProcureTech 100 News

Here are a few comments shared on Pierre Mitchell’s LinkedIn post regarding ORO’s acquisition of ProcureTech 100:

Hey Pierre! This looks like a straightforward acqui-hire—ORO clearly saw value in Lance and his team to open doors. The independence of ProcureTech 100 and SOURCE is gone, so that chapter seems to have closed with this move. Our team deleted our profile from the procuretech/SOURCE portal today.

This is definitely a “Kansas City” move—unexpected but, above all, unusual. Honestly, I still don’t fully understand the strategic rationale behind this acquisition and ProcureTech’s new positioning in the market. Now that it has become part of a vendor, its mission will inevitably have to change, at least in the areas where ORO operates.
Since Creactives was founded on and emphasizes being agnostic (the Data Foundation serves everyone without distinction), I don’t see a direct conflict of interest. However, I do realize that our case is quite unique and that, for other vendors, this acquisition might seem odd and could push them away from the “ProcureTech world” that Lance Younger has built over the years. We’ll see how things unfold!

It would not be the first time a tech provider + implementor also acts as an advisor in sheep’s clothing. That model is prevalent in the tech and tech services world, but not so much in ProcureTech because procurement people are pricklier about conflict of interest and independence. I don’t know Lance personally but I suspect this will work itself out.

I have received requests to share my thoughts on the above news. Here they are:

• 40-plus into my high-tech and procurement career, I saw this coming per my November 9th, 2024 post – ProcureTech CEO Younger stresses we must change the negative narrative and focus on accelerating the positive.
• The only tangible outcome that matters is how this news will impact the high rate of ProcureTech initiative failures that have plagued our industry over the past many decades. What impact will it have on the 80% of initiative failures? Based on my November post and previously mentioned 40 years in the industry, this acquisition will not likely change a thing.
• Has anyone considered the possibility that ORO’s acquisition of ProcureTech has created a ProcureTech solution providers marketplace for ORO to tap into to strengthen its position as the next billion-dollar player? From a pure business and financial move, it is an inspired deal that is reminiscent of both the Microsoft and IBM marketplaces of the past. In short, ProcureTech 100 has always been an incubator. Don’t be surprised when ORO goes “grocery shopping” in its shiny new marketplace to boost its valuation.
• One final thought – Maybe now we – as practitioners, can finally focus on what really matters, stop following the big analyst firms and solution map creators, step up, and start doing our own homework when we look to partner with a solution provider partner.

Thoughts?

30