Digital Procurement Research 2018Executive summaryUncovering the solutions that bring you forward

Capgemini Digital Procurement Research 2018

Executive summaryCapgemini’s Digital Procurement Research 2018 functionsas a starting point for procurement departments that arelooking to transform from being merely a cost-savingdepartment to being at the value-adding core of theorganization. The traditional siloed approach toprocurement results in a slow and inefficient process withmany manual interventions, low spend visibility, maverickbuying, and a scattered IT landscape. Attempts toovercome these siloes have often resulted in inefficienciesin other departments. Therefore, it is essential to adopt anend-to-end and integrated approach, considering allSourcing, Purchasing and Accounts Payable activities aspart of procurement, with a common approach to MasterData Management. The overarching Procurement Strategyand Target Operating Model must provide guidance andperspective to the procurement activities.

An organization’s digital procurement transformation isoften triggered by the decision to implement new orenhanced tools and systems that support procurement. Tosimplify the selection process, Capgemini researched theprocurement solution market. A total of 234 vendorsoffering any type of Source-to-Pay solution were invited toparticipate in the extensive study. Thirty-six vendors from15 countries completed the study and were scored basedon their answers. This research resulted in the DigitalProcurement Matrix, on which the 36 vendors are plotteddepending on the range of Source-to-Pay elements theycover (width) and the level of detail in those elements(depth). This matrix categorizes the solution providers intofour groups:

▪ Compliants: solutions with a limited width and depth(28% of the participants)

▪ Specialists: solutions with a limited width, but extensivedepth (33% of the participants)

▪ Generalists: solutions with an extensive width, butlimited depth (8% of the participants)

▪ All Stars: solutions with extensive width and depth(31% of the participants)

Whereas All Star solutions sound the most attractive, theyare not always the best fit for an organization. Not everyorganization needs the most extensive functionality. Thus,rather than opting for these solutions by default, it isimportant to first determine the requirements of yourorganization.

The Source-to-Pay process is usually divided into Source-to-Contract (Sourcing, Contracting and SupplierManagement) and Purchase-to-Pay (Purchasing andAccounts Payable). All 36 solutions offer Source-to-Contract elements to some extent. However, only 7 ofthese solutions cover the entire range of Source-to-Contract functionality, with varying depth. Purchase-to-Pay

is to some extent, offered by 22 solutions. Seven of theseoffer all of the Purchase-to-Pay functionalities.

In addition to Source-to-Pay, procurement departmentsshould look after Master Data Management. Manyorganizations neglect the importance of master data andfail to create a tight and well-managed governancestructure around it. Fifty-three percent of the solutionproviders in this research indicate that they offer someform of master data management functionality.

Reporting and Analytics functionality helps procurementdepartments to process, structure and interpret data.Almost all providers offer Reporting & Analyticsfunctionality to some extent.

Implementation of the new solution should be regarded asa transformation project rather than an IT implementationproject. Often, processes need to be redefined, roleswithin the organization change, and policies may need tobe set up to govern new functionalities within the solution.Most solution providers acknowledge that their corebusiness is the procurement software and therefore allowor actively work together with 3rd parties duringimplementation.

To conclude, determining the best solution for yourorganization is not a simple exercise. This research showsthat there are many solution providers, offering a widerange of functionality within procurement. Theprocurement market is continuously evolving and ITlandscapes are changing. Procurement departmentsshould seize the current opportunities to transform into avalue-adding part of the organization. Capgemini’s DigitalProcurement Research will be the perfect starting point foryour procurement transformation.

Capgemini Digital Procurement Matrix 2018

Capgemini Digital Procurement Research 2018

Solution provider summaryThis section provides a summary of the solution provider. At the bottom of the page there is anoverview with the general company details and a summary of the research results. We provide thefollowing information:

• The industries served by the solution provider (see tableright for explanation of the icons).

• The position in the DPR 2018 Matrix, based on thedepth and width of the offering.

• A graph providing the overview of the solution’s resultsin each of the categories defined in the research,relative to the maximum score for that category.

The solution has been scored on the following topics:• Supplier management• Sourcing• Contracting• Purchasing• Accounts payable• Reporting and analytics• Master data management

Solution provider overview

A global leader in consulting, technology servicesand digital transformation, Capgemini is at theforefront of innovation to address the entirebreadth of clients’ opportunities in the evolvingworld of cloud, digital and platforms. Building onits strong 50-year heritage and deep industry-specific expertise, Capgemini enablesorganizations to realize their business ambitionsthrough an array of services from strategy tooperations. Capgemini is driven by the convictionthat the business value of technology comesfrom and through people. It is a multiculturalcompany of 200,000 team members in over40 countries. The Group reported 2017 globalrevenues of EUR 12.8 billion.

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