Tag: IT procurement

IR15

SPENDEDGE WEBINAR ON 25TH AND 26TH APR – How can better software license management result in cost optimization?

We have progressed far from the days where software was packaged as a product and sold in CDs. Today, with the rising popularity of Sanyacloud-based platform offerings, suppliers are more inclined to provide their product in a subscription-based model. More precisely, they provide access to their software in the form of license. Since software licensing cost takes up a majority of the cost base within an organization, procurement teams should always be on their toes to explore various licensing models and choose the right fit for their organization needs. Software licensing is complex in any organization. Companies usually purchase software entitlements for hundreds of rights, which are then distributed to several employees and machines. Software license management helps organizations to document and track an organization’s software portfolio.

Why do organizations need software license management?

YatheeshSoftware license management ensures compliance with a given software’s End-User License Agreement (EULA). EULA typically specifies how a software product can be used and how many users are permitted and penalties in the case of violation. In case the organization is being audited, procurement teams will have to spend a lot of time and resources to inventory all software usage and prove compliance. In case the organization is found to be out of compliance, they have to true-up their licenses where they buy the software at its book price. Additionally, they may also incur some fees or penalties. The company not only lose out on the financial front, but their reputation also takes a blow. Customers and clients of the company may lose faith in them, and their business would suffer. A good software license management tool will ensure compliance with all such issues and maintain business continuity.

 

How can better software license management yield cost optimization?

Leading procurement organizations can optimize their license spend by negotiating with large suppliers. Also, the teams should assess the role of third-party software asset management companies and the value benefits they offer. Tracking software usage and staying compliant helps procurement teams to plan future purchases wisely by knowing the software that is frequently, rarely, or occasionally used.

Conducted by SpendEdge’s procurement experts, this webinar on the 25th & 26th of Apr would deal with the following key considerations:

  • What is software license management?
  • Why should organizations have software license management in place?
  • How procurement teams can yield cost optimization with better software license management
  • Consequences of non-compliance with software licenses

    EMEANA

Outsourcing services

Increasing culinary applications in mediterranean dishes and multiple health benefits driving the olive oil market

Olive Oil

London, Jan 15, 2018: The constant increase in the demand for extra virgin olive oil to cook Mediterranean dishes is driving the growth in the global olive oil market. Extra virgin olive oil is being marketed as premium and provenance-based oil, which has initiated trial and adoption across major consumption markets such as India, Brazil, Russia, Japan, and China.

SpendEdge’s latest procurement research report on the global olive oil market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the agro commodities and raw materials portfolio, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Research studies have also proved that olive oil-based diet is more effective for weight-loss as it raises high-intensity lipoproteins (good cholesterol) compared with a standard low-fat diet. This is the prime reason why the global demand for olive oil is in the rise” – A Kowshik, agro commodities and raw materials procurement research specialist at SpendEdge.

A majority of the olive oil production is concentrated in countries around the Mediterranean Basin (Spain, Italy, and Greece). The extreme climatic conditions (high temperature and occurrence of floods) along with the instance of crop infection in 2014 have impacted the production. This has impacted the assurance of supply of the oil in desired quantities. This has also created an upward pressure on the price of the oil and is likely to increase management complexity, and overall procurement spend.

Need more insights on this report?

Request Free Sample 

This procurement report on the olive oil market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

Get unlimited access to all our reports. Our Insights platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now


Related posts

 

IR4

Why We Love Cognitive Procurement (And You Should, Too!)

Artificial intelligence (AI) has presented itself as a disruptive innovation in many industries. Moving forward from automation, self-driving cars, algorithmic trading, and airplane simulation, AI has moved to a new application area, that of procurement. Cognitive procurement, a term coined by IBM, goes far beyond automation of manual and repetitive tasks. Today, the supply chain has to cope with increasing customer demand in terms of timely delivery, convenience, and customization. Procurement managers face challenges SE_Demo2to manage such scenarios without making errors. This is where cognitive procurement comes into play. Cognitive computing facilitates supply chain managers to eliminate mundane tasks and assist them in decision-making in a complex environment.

Complications in the Procurement Process

Numerous factors complicates decision making in procurement organization. Although the goal is to curb spending and maximize product quality, various factors conflict with these two goals. For instance, using water routes for shipping would be economical, but would delay the delivery and thereby extend the time-to-market. Logistics, quality of raw material, payment terms, outsourcing, and offshoring all affect decision-making in a procurement organization. Additionally, external factors such as economic turmoil, laws and policy change, technological advancements, and environmental factors also complicate the decision-making process.

Applications of Cognitive Procurement

IBM’s Watson has approached this problem by accumulating massive amounts of data generated from transactions and financial records. In cases where numeric data is available, data analysts use machine learning to identify trends, correlations, and tendencies from historical data in order to build predictive models. In addition to predicting the future, cognitive procurement can also automate spend analysis, contract lifecycle management, and supplier management. The true power of cognitive procurement can be exhibited by Natural Language Processing (NLP) capabilities, where it can go through texts in the contracts and policies to help procurement teams simplify their daily operations and guide internal customers in purchasing. For instance, cognitive procurement can assist spot buys by evaluating the requisition, investigating the market to find the best value, and generate a new purchase order. Apart from this, cognitive procurement can be used to perform analysis to find the most efficient supplier and manage dynamic supply chain risks.

Challenges and Risks of Cognitive Procurement

Although the future looks promising with such immense capabilities, it would be challenging to implement such innovation rapidly. First of all, there will be an issue of accountability in case errors are caused by cognitive analytics. Secondly, not many organization have historical data in digital format, which would deem predictive models ineffective. People perceive such AI and machine learning systems as a black box, as they cannot see how they arrived at a particular decision. All they see is the inputs and the final decision, with everything in the middle being a grey area. The ultimate challenge in incorporating cognitive procurement would be the sheer amount of investment required to develop such AI.

For more information on cognitive procurement, IBM Watson, predictive analytics, machine learning, procurement system, and procurement analytics:

Get More Info 

Related Articles:

IR4

Top 4 Challenges Faced by Buyers in the Procurement of Retail Analytics Software

The retail industry generates a massive amount of data today including warehouse and inventory details, customer information, and transactional data. The retail sector has been using data analytics on a relatively small scale. Although the traditional analytics provided retailers with limited insights, the new technologies combine business intelligence and customer intelligence with raw transactional and behavioral data to generate derived measures. Today, the most advanced retail analytics software can assist with inventory planning, streamlining retail POS, shelf management, generating customer insight, customizing promotions, demand planning, and sourcing. The recent procurement market intelligence report from SpendEdge forecasts the market to grow at an impressive CAGR of 21%. However, leading retailers are facing major procurement challenges in integrating big data analytics for generating insights.Request Free Sample

Procurement Challenges in Retail Analytics Software Market

Lack of Expertise to Manage the Software

Retail analytics software’s such as NetSuite (Oracle), Tableau, RetailSTAR (CAM Commerce Solutions), SISENSE, and SAS Retail Analytics have interface and dashboards that requires expertise to operate. Most retailers do not possess such competencies or skills and would need an IT professional to manage the retail analytics solutions, thereby increasing the cost. To tackle such issues, major retailers are partnering with managed service providers to assist them with the implementation and functioning of the software.

Data Integration Challenges

A single retail store generates data across multiple channels such as warehouse, inventory, POS, and store management. Combine this with numerous retail outlets spread across vast geographies; retailers are faced with problems to integrate all different kind of data to derive meaningful insights. Also, most of the retail analytics software specialize in a specific area, which makes it even more difficult to integrate data from different sources across the retail supply chain. Majority of the retail analytics companies provide customers with a free trial before they move on to full version. Retailers can test the software out for compatibility with multiple data points before full-fledged implementation.

Data Identification and Utilization Challenges

Although retail analytics is capable of doing advanced nature of tasks, the final insights derived will highly depend on the nature of data provided as inputs. The data captured by retailers may vary, which makes it essential for retail analytics software to identify data points accurately. Although most retail analytics software providers assist buyers in filtering and utilizing data for insights, they might later find it difficult to judge the data insights provided by the solutions. It is a good practice to insert clauses in the contract requiring suppliers to train their employees.

Challenges in Alignment of Business Functions and Processes

With such high levels of volume, variety, and velocity of data being produced, buyers must automate business processes to ensure such data is available for effective analysis. However, due to the prevalence of legacy systems, buyers may face difficulty in automating different business processes. To tackle such issues, retailers invest in facilities and systems that can provide real-time data recording capabilities to implement analytical solutions.

 

Read more about the top procurement challenges in the retail analytics software market along with predictive analytics in retail, big data analytics, pricing insights, cost-savings opportunities, and supplier selection criteria in SpendEdge’s upcoming report on the global retail analytics software market.

CTA view full reportRelated Articles:

cyber security

Game-Changing Trends in the Computer Aided Design Market

Long before computer aided design (CAD) went mainstream, any design or prototype development work had to be done manually. It was a tedious and time-consuming process which had a high rate of errors thereby increasing the design cost. The advent of computer aided design came as a boon for all designers, engineers, architects, and artists. The CAD software has almost replaced all the paper-based drawing. Since it simplifies the entire design process by digitizing it, even small-scale designers are making use of free computer aided design software to get their task done. Although the CAD market is growing at a steady rate of 7%, the emergence of new technologies is expected to drive the widespread adoption of such computer-aided technologies.

Request Free SampleTop Trends in CAD Market

IoT Capabilities in Industrial Applications

The increasing adoption of IoT in industrial applications is increasing accuracy and efficiency of machines. The rising adoption of IoT in industrial machines enables the designers to get direct insights about the performance of designed components and thereby aiding them in the innovating more compelling designs. For instance, Fusion Connect, a non-coding IoT cloud service by Autodesk, leverages connection of the machines with the CAD software package for enabling better analysis, insights, and management of products.

VR Capabilities in CAD

VR technology can be looked onto as an evolved form of CAD designs. While CAD provides the design blueprint, VR technology can recreate the blueprint in the real life-like virtual projection of the object. Additionally, it enables designers to scale various components of design concerning other virtual objects. The VR technology also significantly reduces the cost of production involved in the prototyping stages.

Emergence of 4D CAD Software Applications

4D CAD or 4D BIM is a big leap in the field of computer-aided technology. Such blueprint drawing software enables integration of scheduling tools in the computer aided design software application itself. Such software application improves the decision process by facilitating rapid prototyping and assisting in the analysis of alternative schedule proposals.

Increasing Industry Consolidation

The global CAD market landscape is witnessing dynamic shifts due to constant innovation in techniques and technology. In a bid to remain competitive, CAD vendors are entering into mergers, acquisitions, and integrations with other organizations. Such agreements help the current CAD vendor to acquire the expertise of other existing vendors and create unique competencies and improve their core CAD platforms. For instance, Autodesk has acquired numerous small players to integrate new technology and knowledge assets in its offerings.

Read more about the top trends in the computer aided design market along with key suppliers, supply market landscape, strategic purchasing, pricing trends, and procurement insights in SpendEdge’s upcoming report on the global computer aided design market.

CTA view full report

Related Articles:

IR33

Top 5 Vendors of Geographic Information Systems

The geographic information system is a powerful technology that is empowering millions of decisions, ranging from predicting climate change, reporting power outages, analyzing crime patterns to locating new store locations. A geographic information system captures, stores, analyzes, and manages geographical data and assists in recognizing and comprehending spatial relationship and trends from such geographically referenced data. Due to the widespread application of GIS in different fields, many vendors have emerged in the market providing state-of-the-art GIS software applications. The recent report from SpendEdge reports a lucrative market growth rate for this market, which is anticipated to grow at a CAGR of over 10% for the forecast period of 2017-2021.Request Free Sample

Here are the top supplier providing the best GIS software in the market:

Esri

Esri is a leading international supplier of geographical information system software based in Redlands, California. Esri is a market leader in the GIS market, claiming more than 40% of market share worldwide. Elite companies such as Starbucks, Wendy’s, Jones Lang LaSalle, and MacKenzie Commercial Real Estate Services are amongst the client-base of Esri. In the year 2016, Esri generated revenues of about $1.1 billion.

Hexagon AB

Hexagon AB is a Swedish company focused on precision measuring technology. They deal in products and software including hand tools, coordinate measuring devices, GPS systems, level meters, laser meters, and various sensors. Industries such as construction, engineering, automotive, aerospace, and medical industries use geographical information systems from Hexagon AB.

Maxar Technologies

Maxar Technologies is a Canadian satellite technology company specializing in manufacturing communication, radar, earth observation, and satellite products, on-orbit servicing satellites, and related services. With over 47 years of industry experience, they serve clients like US National Oceanic and Atmospheric Administration, Sierra Nevada Corporation, Defence Research and Development Canada, Hughes Network Systems LLC.

Bentley Systems Incorporated

Unlike others in this list, Bentley Systems Incorporated is primarily a software development company that provides software and design services for the construction and operation of infrastructure. Their software products are used in design and construction of buildings, industrial plants, roadways, railways, bridges, power plants, and utility networks. Apart from this, the company also offers solution implementation, change management, onboarding, consulting, and on-premise managed services.

Autodesk Inc.

Autodesk Inc. is an American company that makes software for the manufacturing, architecture, engineering, construction, media, and entertainment industries. Autodesk is best known for its flagship software AutoCAD, which has a user base of over 9 million. Autodesk engineers GIS applications such as AutoCAD Architecture, AutoCAD MEP, and AutoCAD Civil 3D that help engineers and construction companies.

Read more about the top vendors in GIS market along with competitive analysis, procurement best practices, developments in GIS technology, pricing strategy, sourcing strategy, procurement insights in SpendEdge’s upcoming report on the global geographic information system market.

CTA view full reportRelated Articles:

IR21

Next-Generation Promotional Mediums in Mobile Marketing

An increasingly large number of people are turning towards smaller screens for their daily media consumption. The problem with big screens and traditional media is that they cannot provide content-on-demand for the audience and do not offer the same portability asRequest Free Sample a mobile medium. Majority of the brand are increasing their spend on mobile marketing because it is showing promising results. Here are some of the ways advertisers are leveraging mobile marketing to reach their audience.

Accelerated Development of AR and VR TechnologiesHow to use twitter (1)

The advent of AR and VR feels almost like the technology has arrived from the future traveling back in time. The technology is so extensively used that it is being used even in the aviation sector to train the pilots with flight simulation. Marketers are reaping the benefits of this technology by using VR to showcase their products in a virtual showroom and 3D vision of product advertisements; thereby, improving the advertisement viewing experience. For instance, Volvo used VR technology to provide a virtual test drive through customers cell phone. The campaign was an instant hit, which generated 86,000 clicks on the campaign site.

Pushing Promotions Through Wearable Devices

As people are increasingly using the mobile device all the time, marketers are shifting their focus from traditional marketing to mobile marketing. In this regard, wearable devices provide an excellent opportunity to marketers to push their marketing message through a device which is ever-present with the user. Degree deodorant created an outstanding example of the use of such promotional medium. They collaborated ingeniously with the TV show So You Think You Can Dance that used wearables branded with Degree logo to measure a dancer’s movement.

Increasing Adoption of Location Based Marketing

Mobile marketing captures extensive user data so that marketers can personalize promotional content. Marketers can identify the movement and geographic location of the customer through GPS in customers phone. As a result, marketers can increase their promotional effectiveness by communicating personalized offers relevant to the location.

Read more about market developments in the mobile marketing market along with supply market landscape, pricing, and procurement insights in SpendEdge’s upcoming procurement report on the mobile marketing market.

CTA view full report

Related Articles:

ir8

5G and its Impact on Procurement

5G mobile technology has the potential to enormously transform the digital world and the way that procurement as we know it operates—but whether or not it will live up to this potential remains to be seen.

Though it’s unlikely that 5G technology will be available until a few years from now—most sources say in the year 2020—it’s already making waves as a societal and technological game changer. 5G speed is predicted to be at least 100 times faster than 4G (some estimates say a thousand times faster), as well as significantly more powerful and efficient. The introduction of 5G would greatly expand businesses’ capabilities, activities, and sourcing and procurement strategies, and support their continuously growing needs. The power of 5G speed will make it easier to communicate with and work with suppliers, resulting in cost savings and improved overall efficiency.

5G would also make downloading large amounts of media, software, and documents easier and able to be done in a much shorter amount of time—in a matter of milliseconds, even. Reduced latency will make wireless connections suitable and more efficient for streaming and downloading media, playing online games, improving medical IT services, and connecting other non-entertainment forms of technology. However, this technology could come with a hefty price. As it is still under development, it’s currently hard to say what additional costs 5G technology could incur or how much it will cost businesses in general, though costs related to mobile data could increase after the introduction of 5G technology, negatively affecting both consumers and businesses.

Another potential issue that could hold 5G back from its full potential for success is a lack of readiness, especially in terms of connectivity. The integration of 5G technology will need to be fully and properly supported by infrastructure as well as internet providers, mobile phone providers, and businesses. Providers and businesses worldwide need to increase connectivity ahead of 5G’s arrival to ensure that it can be used to its fullesst potential and will not encounter any technological or connectivity-related roadblocks. This involves increasing the number of individuals and businesses who have 4G connectivity as it will prepare them for 5G. For mobile and internet providers, preparing for 5G means upgrading their entire infrastructure and, in some cases, building new wireless networks entirely. Policy issues will also arise as we get closer to 5G’s debut, and governments and regulators will have to prioritize meeting the needs of and investments in 5G technology and 5G networks.

If proper preparations and precautions are made before the introduction of 5G, it will be able to live up to the hype it is continuously generating. Procurement will be able to benefit from increased connectivity and speed, and will see increased savings, improved supplier cost analysis abilities, and increased business opportunities. Managing and improving potential costs, infrastructure, and connectivity are essential for the success of this revolutionary technology.

IR4

China’s New Cybersecurity Law Could Complicate Procurement Worldwide

China is set to start enforcing a new cyber security law in June of this year that has businesses concerned about the future of their procurement decisions and strategies. The law is also causing some serious concerns about system security and safety. When it comes into effect this summer, this law will require the procurement of all network products, equipment, software, and services for “critical information infrastructure facilities” to first pass a security assessment and receive government certifications.

“Critical information infrastructure facilities” refers primarily to facilities in the medical/healthcare, energy, water, gas, and transportation industries, in addition to financial institutions, banking services, and social security facilities in China. However, this law will also affect businesses outside of China that do business within the country. Many concerned businesses say that the law will force them to reveal trade secrets and technical specifics about their products to Chinese authorities, and allege that there is too great a risk of this information being passed on to or intercepted by Chinese competitors, increasing market competition and the threat of counterfeit products and software.

Though the Chinese government has claimed that this law is a step towards improving online security and IT services, it has negative ramifications on international trade and market competition. This law will potentially have a very negative effect on the ability of foreign companies to successfully compete with Chinese companies both within China and across the globe, and will force foreign companies to re-evaluate and adjust their procurement solutions, plans, and strategies.

Businesses who are expected to be most disadvantaged by this new law are those who specialize in network management and procurement support solutions. On a wide scale, this law will also make it more difficult for companies to sell their products and software to China and will seriously hinder companies’ existing procurement chains and global sourcing strategies that extend into or include China. Smaller companies will be hit most significantly, and may find it difficult to survive in the market.

Unfortunately, there isn’t much that companies can do to combat the effects of this law. China is an important market for procurement, and most companies outside of the country cannot afford to lose business and connections with China. Companies will have to adapt to the new regulations and procedures that come with this law in order to remain competitive. More efforts towards identification and reporting of counterfeit products and stricter consequences for companies selling fakes will be essential to maintain an even playing field between Chinese companies and foreign companies.

Request free proposal