Next Generation Spend Analytics & Data Visualization
Next Generation Spend Analytics
& Data Visualization
Strategies to Move the Needle from Tactical to Strategic
Senior Vice President
Hard to Achieve?
1. Multiple systems / fragmented data
2. Maverick and unmanaged spend
3. Categorization that IS NOT procurement focused
4. Poor data input discipline
4 Challenges of Spend Visibility
• Limited or out of date
• No POs for some spend
• Incomplete entry
• Manual edits by buyers or
• Vague product descriptions
• Lack of detail such as UOM
• Supplier-specific item
• Entry errors, scan errors
• Redundant vendor IDs for
the same supplier
• Incomplete or no detail
**The quality of data varies widely by supplier and category.
Data Supply Chain Failure Points
Spend Analytics 1.0 -- 1980s to 1990s
What created 1.0?
• Rise of modern Strategic Sourcing techniques & computerized business processes
• Suddenly, procurement professionals had a lot of data
Examples of 1.0 solutions:
• VisiCalc, Lotus 1-2-3, Microsoft Excel
Why didn’t 1.0 solutions work?
• Spend analysis was an arduous process
• Time consuming, expensive, and difficult to repeat
Spend Analytics 2.0 -- 1990s to 2010s
What created 2.0?
• Strategic Sourcing seeping from the Fortune 500 into the next layer of companies
• Technology companies going through a revolution of their own
Examples of 2.0 solutions:
• ERP systems, P2P systems
Why didn’t 2.0 solutions work?
• Overreliance on technology; no human element
• Solutions built by software executives; not procurement
• Categorization is often inaccurate
• Categories do not map to the supply market
• Off-shore vendor categorization teams do not understand the local market
• Data often requires additional manipulation before it is usable
• Tools for spend visibility are often:
Don’t highlight the insights procurement pros need
Why do 2.0 solutions fail?
Spend Analytics 3.0
In our view, the Spend Analytics 3.0 world would look like this:
SpendHQ is a spend analysis software
that provides rapid, accurate and detailed
visibility into your spend data. This full-service
SaaS (Software-as-a-Service) spend visibility
solution delivers actionable insight for
sourcing and procurement professionals.
SpendHQ provides spend visibility & advanced analytics for leading
organizations in excess of $325B in spend annually
Select Private Equity & Holding Company Clients
Financial & Business
Life Sciences &
Information Tech &
Senior Vice President
Insight Sourcing Group & SpendHQ