Stop me if you’ve heard this one before. It’s a myth called the “the end-to-end solution.”
This myth states the following (inaccurate) premise: one *single* software platform can enable greater productivity for every set of tasks that a person does while they are at their work.
Let me take a second to quickly disprove this myth:
Your Microsoft Excel is software.
Your email client is software.
Your web browser is software.
Your smartphone is software.
Your office calendar is software.
These are all *different* pieces of software.
These different pieces of software talk to each other to varying degrees.
If your team uses SAP in addition to *any* these, your relevant data is already living in multiple distinct pieces of software, none of which are mutually integrated.
And yet, there is a cadre of VPs that nevertheless believe deep down that they must centralize all role-based workflow in a single software application (nominally for the purpose of master data management and eliminating data silos).
This has been a drumbeat of digital transformation for the past few years. But I’ll let you in on a little secret: it’s wrong, and in many cases, this myth can do great harm to a procurement team’s digital transformation roadmap, setting everyone involved up for horrific failure.
How does “end-to-end” hurt procurement’s digital transformation? To understand the pain this myth causes, we need to know why it was created in the first place. Widely acknowledged within Silicon Valley, the myth of “end-to-end software” was created by a group of very clever enterprise salespeople to justify funneling all possible upsells towards a single solution provider (e.g. themselves). “Platform doesn’t do something? We'll be happy to tell you that the platform could potentially do *anything* in the future! Don’t go out to evaluate the market, instead come back to us, your "end-to-end solution" and we’ll add it to our roadmap and if we ever end up building it then we'll just charge you a ton for it!"
Customer gets more features and salespeople get more money. Sounds like a win-win, right?
Wrong. The result of this misalignment of incentives is that enterprise software becomes tremendously vulnerable to feature creep, and eventually bloated with a ton of poorly architected and hastily assembled features that make the applications nearly impossible to use.
These features are frequently one-offs and tend to obscure the core functionality that made the software application a winner in the first place. Over time, these features create a hurdles to basic workflow, especially for new hires or cross-functional roles, and build in a huge drag on productivity.
At Bid Ops, we know that this is no way to make a winning product — that’s why our automated negotiation solution only does one thing, and it does it dramatically better than any other solution on the market (hint: it negotiates the vendor contracts that your negotiating team doesn’t have time for). But there’s a bigger lesson here than just product design, and this is where “layers of productivity” comes in.
This idea will sound familiar to anyone from the consulting world who knows the magic of “low-hanging fruit,” or people familiar with Kotler’s 6 D’s of exponential technology. The core idea of “layers of productivity” is that added productivity only becomes possible after you have already gotten the wheels turning (e.g. you can only go faster once you’re already moving in the right directions. This is certainly true for our process of qualifying customers. For example, if all of your procurement workflow currently lives in paper, I am sorry to say that you cannot use our product. We simply would not sell it to you. At this point in our growth curve we are only looking for leadership case studies that will allow our customers to leapfrog ahead of the pack for their digital transformation. We want to point to dramatic, astonishing changes in specific, measurable results. Which is why we know that you need to have “layers of productivity”, one on top of the other, working towards profound inflection points where our customers begin asking questions like:
· What if I could run all my bids for the rest of the year starting today, using asynchronous automated communication?
· What if I could use artificial intelligence to benchmark success against my organization’s size and spend, rather than getting someone else’s comps?
· What if I could take the three parts of my job that I like the least and make them go away, not just for me but for my entire team?
That’s why “layers of productivity” is so important — because it gets away from the “end-to-end” idea of change management. In the old world, people would buy enterprise software that would fundamentally change people’s entire workflow, and it would be tremendously disruptive and time-consuming and headache-inducing and would have a negative effect on team morale and productivity.
Those of you who have labored under the yolk of an ERP integration know exactly what I am talking about. Those of you who have had to manually migrate data from one legacy system to a new soon-to-be-legacy system know exactly what I’m talking about. And I’m here to tell you that it doesn’t have to be this way. The old way of buying enterprise software is coming to an end, and a new era is dawning, one that uses cloud-based apps, bots, blockchain, deep learning and artificial intelligence to implement best practices in procurement. Imagine your team’s most productive week. What if that could be every week, and with only a fraction of the cognitive and administrative overhead? That’s our vision.
True solutions don’t displace existing workflows or require painful integrations, rather they layer on top of one another, enriching enterprise supply chain data and weaponizing negotiating teams to gain market share and competitive advantage. This is why literally all of our customers already use SAP Ariba, Oracle, Coupa, Lawson, even ScoutRFP (a company that many people assume is our direct competitor) — because like many frontier technology solutions, we provide an added layer of efficiency that is only compelling because it pays for its own annual cost in the first day of implementation, and then drives savings on savings on savings.
Our philosophy is that if we can’t deliver 10x+ improvement in measurable, quantitative results, then we aren’t the right fit, period. The reason is simple: the market has to move 10x ahead of whatever your existing workflow is otherwise it’s not worth the headache of change. And the reality is that there is simply no “end-to-end” software application that can move super fast on everything at once. Never has, never will. It’s a different approach to buying software, but it’s one that has tremendous spoils for the victors. Because in the era of exponential acceleration, “layers of productivity” can enable strategic sourcing teams to realize exponential efficiencies in places where bigger companies simply haven’t yet thought to look.