For Sourcing & Vendor Management Professionals

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	January 14, 2009 Best Practices: Successfully Planning For And Managing Automated Spend Analysis Projects by Patrick M. Connaughton with Christine Ferrusi Ross, Varun Sedov	Average: 8  (1 rating)

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Executive Summary

Forrester estimates that only 13% of the companies that have implemented eSourcing solutions have also rolled out automated spend analysis. At a time when vendor consolidation and cost cutting is paramount, why isn't there higher adoption of a tool that can help do exactly that? Mainly it's because of the high level of effort, the complexity, and an ROI of at least six to eight months — not ideal for companies seeking immediate gratification. Despite the challenges, forward-looking companies are adopting these solutions to unearth hidden gems where the obvious waste has already been eliminated. To understand how some of the most successful strategic sourcing programs gain credibility within their organizations with automated spend analysis, we spoke with more than 20 practitioners, consultants, software vendors, and end users to provide a cross-industry perspective on best practices, pitfalls to avoid, and next practices for success. The best practices we identified with the highest return include the importance of managing the initiative like a real project — not just an ad hoc reporting exercise; planning for multiple iterations of refinement; implementing an airtight change control program; and ensuring adoption with continuous improvement.

TABLE OF CONTENTS

• When It Comes To Automated Spend Analysis, Challenges Are All Too Common
• Implementing Automated Spend Analysis: Best Demonstrated Practices
• Best Practice No. 1: Treat It Like A Real Project, Not An Ad Hoc Reporting Exercise
• Best Practice No. 2: Emphasize Refinement, Obsess Over Change Control
• Best Practice No. 3: Ensure Adoption With Continuous Improvement
• Forrester's Automated Spend Analysis Project Next Practices
• Identifying Your Challenges

ALTERNATIVE VIEW

• Automated Spend Analysis Software Is Not A Panacea
• Case Studies
• Supplemental Material
• Related Research Documents

This is an excerpt