The Future of Spend Analytics

The Future of Spend Analytics

OVERVIEW

Every manager understands how important budgeting and spend tracking is to organize business initiatives – primarily procurement departments across the globe. Spend analytics is indispensable to procurement divisions in order to assist strategic planning and assessing total expenditure on products and administration.

Procurement strategy aligns with general business landscape enhancements to lower procurement costs and increase productivity. Leveraging spend analytics tools is critical to provide the visibility needed to meet standard procurement strategy.

 

THE GROWING NEED

Telecom Spend Analytics

According to Research N Reports recent review of spend analytics, “the North American market for spend analytics is projected to dominate the worldwide market with the most noteworthy share of the overall industry, chiefly due to the early adoption of new and rising advancements. The presence of many major spend analytics vendors in this region is further aiding in securing sales in the market. Be that as it may, the market in Asia-Pacific is anticipated to develop at the most elevated CAGR over the conjecture time frame, attributable to the increased adoption of cost-effective spend analytics programming and administrations among SMEs and rising innovation expenditures in emerging economies, for example, China and India.”

The following are a few factors that will continue to contribute to the growth of the market:

  • Increasing need for supplier and market intelligence
  • Predictive analytics for educated business decisions
  • Demand for improved management of internal compliance policies and external contracts
  • Rising need for cloud computing technology

In addition to these factors, mobile applications are anticipated to produce a variety of opportunities for the development of the spend analytics market. To meet the needs of detailed spend analytics within an organization’s IT environment, the analytics application must meet four requirements:

  1. Visibility/Control: reporting chargeback, dashboards
  2. Asset Management and Inventory Tracking
  3. Invoice Processing
  4. Drive Cost Reduction

 

BENCHMARKING

Identifying and seizing cost-cutting opportunities is a critical piece into generating spend analytics. Like many savings strategies, telecom and technology expense management administers benchmarking to evaluate cost savings opportunities. The Authority on Telecom Management Practices (AOTMP) research presented a potential 10-20% in efficiency gains within a telecom management practice. Benchmarking sets baseline measurements to note potential opportunities for savings – whether it be time, resources and money. Benchmarking benefits include:

  • Set a baseline for telecom performance to measure bill reconciliation and cost savings
  • Review industry standards to level training and performance of personnel
  • Discover how each vendor is impacting your IT environment and how to optimize utilization and reap better customer service
  • Gain insight as to how the IT environment impacts the organization

According to Why Enterprises Should Benchmark Their Telecom Environment by AOTMP, “benchmarking an organization’s telecom environment fosters a more holistic, effective approach to managing the telecom environment and starts enterprises down a path toward a telecom management Center of Excellence – where supporting infrastructure and processes are in place and operating at maximum efficiency. This, folks, is where a paradigm shift occurs in which telecom becomes less of a “cost center” and more of a strategic asset that can be leveraged by an organization to support larger corporate goals.”

 

SUMMARY

With the growing demand for spend analytics, it’s imperative for organizations to leverage an insightful tool or service to get the most out of their procurement strategies. A telecom and technology expense management application such as Clearview can provide the insight needed to assist strategic planning and total IT spending assessment. IT expense management can transform your communications infrastructure to:

  • Establish and manage accurate tech inventory
  • Audit invoices
  • Approve invoices
  • Pay invoices (on time)
  • Allocate costs
  • Optimize and pool rates
  • Manage contracts and plans

 


About the Author: Chantel Soumis

Chantel Soumis brings over a decade of knowledge in workflow enhancement through the use of technology. Chantel studied marketing communications and business administration at Franklin University and proceeded to work in a fast, ambitious environment, assuring client delight in the healthcare and pharmaceutical industries. Passionate about project productivity and streamlining workflows through the use of technology, Chantel strives to inform organizations of Valicom’s advanced telecom expense management software and services by mastering communications and messaging while delivering helpful information and supporting resources.