Discussion 2: Spend Analytics/Planning

The first part of the procurement lifecycle is called planning.  This is the part of the process where information is reviewed by buyers to decide how they will engage the marketplace, and what they will buy.  Part of planning is the review of historic spending information.  Spend Analytics or Spend Analysis, is the process of cleansing, classifying and analyzing information with a goal to analyze and review spend data.  Technologies exist to take spend information from multiple sources and bring it together in a single location for viewing.

Primary users of this part of the procurement lifecycle are buyers.  They will want to see how much they have spent on specific goods and services as a part of their strategy development. Planning tools are able to provide insight into departmental and organizational spend patterns.

To achieve a 360 degree view of the data, an enrichment process needs to take place. Essentially, data (acquired from different sources) is filtered through a data enrichment routine that categorizes the data. It will normalize and present data in a format that is useful to end users. Once the data has been enriched it then becomes available in the Spend Analytics module where procurement professionals can review timely, accurate, complete and detailed spend data.

The number of spend analytics and planning requirements applicable to:

  • Ministries and broad public services: 72
  • Total number of spend analytics and planning requirements: 72

 

NOTEThis page summarizes the feedback received between June 15 and September 30, 2015 on the BC Bid Replacement project, and is provided for historical reference only.

 

TEN THOUGHTS ON “DISCUSSION 2: SPEND ANALYTICS/PLANNING”

 

1.     Paul said on July 5, 2015 at 9:36 pm:

Regarding enrichment of data for spend analysis, we didn’t see two common requirements:

1. Frequency of enrichment “refreshes”. Some services provide this in batch form monthly or quarterly, while others provide ongoing enrichment that facilitates daily spend loads and “as needed” enrichment.

2. Access to enrichment tools by Ministry or other personnel. Some solutions provide enrichment solely as a service while others provide the software solutions used for enrichment (with services as an option).

moderator Jason said on July 10, 2015 at 11:04 am:

Great point on the frequency of enrichment. We’ll revise the requirements accordingly. On the second point, the government intends to have both a software and a service solution for enrichment.

 

2.     Dan from Northeast said on August 24, 2015 at 10:21 am:

I have a lengthy document describing Spend Analysis suggestions / requirements considerations – what is the best way to submit that so it can be reposted here in the public forum?

moderator Jason said on August 25, 2015 at 7:51 am:

Unfortunately, this site does not allow for document uploads. The document could be emailed to me and I can add the content to the comment fields for you, you could add the relevant information yourself to the comment fields, or you could post a link to the document if it is available online.

 

3.     moderator Jason said on September 3, 2015 at 8:21 am:

Comments intended for forum from Dan:

The below highlights some of the questions I would ask about data collection: Some of these are already mentioned in the British Columbia public forum as requirements, but may be asked from a more specific angle.

Does the system have a process for collecting data of multiple grains, levels and purposes such as AP, PO, Invoice, PCARD, Supplier Invoice, Supplier Masters, Organization Masters, Contract Masters, Item Masters, Currency Conversion Masters, etc in an automated fashion?

Does the system have an error management process for identifying collection errors such as missing data, duplicate data, out of time-range data, aberrational data, etc?

Can this system do this automatically on a scheduled and periodic basis?

Has the system been used in connection with SAP, Oracle, BPICS, MACPAC, Legacy AS/400, INFOR, MAPICS, etc and other legacy AP & ERP systems?

Has the system been used in the collection of all the major language types to be found in my environment (list languages)?

Is there a toolset to navigate files by status and review errors such as received, failed, processed, validated, cleansed, rolled back, or published?

Does the system allow for new extracts to be defined and added at any point for existing or new data sources?

Does the system allow for the collection / processing of extracts on an ad-hoc one-at-a time basis in addition to the scheduled process? Does the system provide a workflow framework to manage the data cleansing process steps through configuration? Does this workflow allow for individual steps to be added / removed dynamically based upon configuration?

 

4.     moderator Jason said on September 3, 2015 at 8:24 am:

Comments intended for forum from Dan:

The below highlights some of the questions I would ask about data cleansing and validation: Some of these are already mentioned in the British Columbia public forum as requirements, but may be asked from a more specific angle.

Does the system provide a workbench for creating and testing data validation rules? Does the system provide a workbench for creating and testing data cleansing rules?

Does the system provide a workbench for creating and altering the logical mapping of information from the independent source systems to a consistent enterprise structure?

Does the data cleansing process support change management for master data such as normalized suppliers, altered business units, changing currency conversions, geographic rollups, or changing categorization hierarchies?

Is there a robust supplier normalization tool that consolidates duplicates based on algorithmic name and attribute comparisons and parent / child information?

 

5.     moderator Jason said on September 3, 2015 at 8:26 am:

Comments intended for forum from Dan:

The below highlights some of the questions I would ask about data categorization and enrichment: Some of these are already mentioned in the British Columbia public forum as requirements, but may be asked from a more specific angle.

Does the system support multiple approaches to categorization including rules based, explicit mappings, and statistical categorization approaches?

Can classification rules be dynamically designed per source-system based upon the level of available data such as varying availability of material group, general ledger code, cost center, supplier, item, or invoice / purchase order detail?

Can these rules be automatically created & managed based upon previous categorization knowledge bases? Can external categorization clues such as vendor SIC codes, NAISC codes, etc also be leveraged in the categorization process?

Are categorization exceptions identified, searchable, downloadable, and updatable by information managers? Are their updates applied in real-time, and against all historical data?

 

6.     moderator Jason said on September 3, 2015 at 8:28 am:

Comments intended for forum from Dan:

The below highlights some of the questions I would ask about data publishing and analysis: Some of these are already mentioned in the British Columbia public forum as requirements, but may be asked from a more specific angle

Does the system allow for a flexible publishing definition that can be modeled based upon end user requirements?

Does the system support a role-based, secure, and flexible analytical environment pre-populated with proven and useful views of procurement data?

Does the system automatically handle data in a scalable fashion including automated archiving, rapid processing of millions of records, and rapid reporting across hundreds of business units, categories, geographies, and hundreds of thousands of suppliers and items?

 

7.     moderator Jason said on September 3, 2015 at 8:29 am:

Comments intended for forum from Dan:

The below highlights some of the questions I would ask about change management and refresh: Some of these are already mentioned in the British Columbia public forum as requirements, but may be asked from a more specific angle

Does the system support automated change management of altered data from end-to-end throughout the data set?

Does the system provide a workbench for end users to configure the details of the system from how suppliers are normalized, how data is categorized, what workflow steps are included in processing, and how change is managed?

 

8.     moderator Jason said on September 24, 2015 at 1:47 pm:

Comment from outside this forum

2.1.5: If this refers to the ability to tag a business as “small”, then we should consider this mandatory for the purposes of tracking procurement to small business. And micro businesses (0-4 employees)

 

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