European companies may face a dual challenge as the U.S. seemingly shifts its strategic focus, which may necessitate measures to assess risk and potentially reduce reliance on American based technology firms. The new US administration has signaled an increasing prioritization of its own domestic manufacturing, which has increased the specter of raising tariffs on EU goods like automobiles and machinery to shrink its $200 billion goods deficit – while simultaneously redirecting resources to counter China’s economic and political challenges across the globe. This pivot may leave EU firms exposed, as the US has signaled it can’t indefinitely sustain its central role in European security and be China’s rival. Economically, the EU may retaliate with tariffs on US services, particularly technology, where American firms like Google and Microsoft dominate, driving a $131 billion US services surplus. European tech leaders should be ready to adapt in this shifting landscape by bolstering resilience and autonomy.
Operational Vulnerability
Dependence on U.S. tech giants like Amazon, Microsoft, and Google for cloud services, software, and AI tools exposes European firms to disruptions if U.S. policies shift. For instance, if the U.S. imposes export controls or sanctions – say, in response to escalating tensions with China or Russia, access to critical tech could be restricted. A 2023 Gartner report warned that 80% of European companies rely on U.S.-based cloud providers, leaving them susceptible to outages or service denials beyond their control. The 2021 SolarWinds hack, tied to U.S. infrastructure, showed how such dependencies can cascade into Europe, compromising data and operations.
Financial Exposure
Potential U.S. tariffs or EU retaliatory measures heighten cost risks. If the EU counters U.S. manufacturing tariffs with levies on American tech services, as speculated in trade talks, a 10-20% tariff could inflate subscription costs for tools like Azure or Salesforce. Smaller European firms, already stretched by inflation (Eurostat reported 2.6% in February 2025), might struggle to absorb these hikes, eroding margins. A 2024 McKinsey study estimated that a 15% cost increase in U.S. tech could cut profits for EU SMEs by 8% on average, absent alternatives.
Regulatory and Data Risks
U.S. tech firms operate under American laws like the CLOUD Act, allowing U.S. authorities to access data stored by these companies, even in Europe. This clashes with the EU’s GDPR, creating legal friction. The 2020 Schrems II ruling invalidated the EU-U.S. Privacy Shield, and ongoing transatlantic data talks remain shaky. European organizations risk fines (up to €20 million under GDPR) or reputational damage if U.S. providers hand over EU citizen data.
Strategic Disadvantages
Over-reliance stifles Europe’s tech innovation. The combined market cap of U.S. tech leaders ($10 trillion-plus) dwarfs Europe’s (€1.2 trillion, per Statista 2024), reflecting a lag in homegrown giants. If the U.S. pivots resources to counter China, reducing focus on European security, as NATO debates intensify, Europe’s tech gap widens. Firms dependent on U.S. AI or cloud tech could lose ground to competitors leveraging local solutions, like France’s OVHcloud or Finland’s Nokia, especially in sectors like defense or healthcare where sovereignty matters.
Geopolitical Leverage
U.S. tech dominance gives Washington leverage in trade wars. If Trump’s administration (47-48% approval, March 2025) pushes “America First” policies, Europe’s reliance could be weaponized, think service restrictions to force EU concessions on goods tariffs. The EU’s $131 billion services deficit with the U.S. (2023) amplifies this risk, as American firms could pull back from Europe under pressure, leaving organizations scrambling.
European enterprises, particularly those reliant on US technology, should adopt proactive strategies to mitigate the potential cost increases from EU tariffs on American digital services and tech products. Here’s a practical roadmap based on the dynamics outlined:
Geopolitical Risk as a Practice: European enterprises should consider integrating geopolitical change into their technology risk mitigation policies to safeguard against disruptions from shifting global political and trade dynamics. This means assessing how events like US tariff hikes, EU retaliatory measures on tech services, or a US pivot toward China could impact access to critical technologies, such as cloud platforms or software supply chains. By mapping these risks—e.g., potential cost increases from a 10-20% tariff on US tech or supply chain fractures from reduced transatlantic cooperation—firms can prioritize diversification, favoring EU-based providers or in-house solutions. Regularly updating these policies with scenario planning ensures adaptability, protecting operations from sudden changes in the rules of global trade and power alignments.
Diversify Tech Suppliers: Reduce dependency on US providers like AWS, Azure, or Google Cloud by exploring alternatives from within the EU or other regions. Companies such as OVHcloud (France), SAP (Germany), or even Asia-based players like Alibaba Cloud could serve as viable substitutes. This shift might involve upfront costs for migration but insulates firms from tariff-driven price hikes long-term.
Invest in In-House Solutions: Develop proprietary tech capabilities where feasible. For instance, larger enterprises could build custom software or cloud infrastructure tailored to their needs, leveraging open-source frameworks to cut costs. While this requires initial investment, it reduces exposure to both tariffs and US vendor lock-in, aligning with Europe’s push for technological sovereignty.
Negotiate Long-Term Contracts: Lock in current pricing with US tech providers before tariffs hit. Multi-year agreements could shield enterprises from immediate cost spikes, buying time to adapt. This hinges on anticipating tariff timelines, so monitoring US-EU trade talks is key. Optimize Cost Structures: Audit existing tech usage to eliminate waste—think unused cloud storage or redundant software licenses. Pair this with a shift to pay-as-you-go models where possible, minimizing the impact of tariff-inflated subscription fees. Smaller firms, especially, could benefit from leaner operations.
Lobby for EU Support: Engage with industry groups to push for EU subsidies or tax breaks to offset tariff costs. The EU’s Digital Compass and recovery funds signal intent to bolster local tech; enterprises could position themselves to tap these resources, easing the financial burden of transitioning away from US services.
Explore Local Partnerships: Collaborate with emerging European tech startups or consortia like Gaia-X, which aims to create a federated data infrastructure. Pooling resources with peers could spread costs and accelerate adoption of tariff-resistant alternatives.
The stakes are high. Smaller companies may lack the capital to pivot swiftly if they need to, while larger ones risk operational hiccups during transitions. Yet, with the US stretched thin, countering China’s $18 trillion economy and political ambitions, inaction is costlier. By carefully negotiating tech deals, diversifying, innovating locally, and advocating for EU-level support, European companies can mitigate tariff risks, weather trade retaliation, and thrive in a world where American priorities no longer align with Europe’s immediate needs. Self-reliance isn’t just strategic; it’s survival.
Digital Transformation in 2024: P2P With AP Automation Fred Teekens
Preface
Nearly all clients are seeking greater prosperity in 2024.
While client organizations are still focused on cost reductions to meet the challenges of their new economic and market realities, the pent-up demands of the business are increasingly calling for innovation, automation, and organizational performance improvement. We foresee a volatile and unpredictable business landscape predicated on geopolitical tensions, economic uncertainty, and continued supply chain disruptions as client organizations continue to diversify their technology supply chains, but digital transformation continues to be an investment area.
Digital Transformation is the #1 Way to Boost Performance and Savings concurrently. Client organizations that are digitally transforming are: unlocking data insights for better organizational decision-making, automating tasks to streamline efficiencies, and are empowering flexible cloud solutions for more cost-effective scaling. This ultimately drives greater innovation, improved organizational performance, and significant cost savings ranging from 25-30% (depending on industry, scope of transformation, maturity of transformation, and the methodology and execution).
Introduction
In this blog, we will discuss how client organizations are increasingly investing in Procure to Pay (P2P) solutions with a strong capability for AP Automation solutions including those for invoice and payment processing.
AP Automation, or accounts payable automation, is like having a super-efficient digital assistant that helps your company manage all the tasks related to processing invoices, paying bills, and managing your suppliers. Imagine you have a stack of invoices on your desk, all waiting to be processed and paid. With AP Automation, that digital assistant would read each invoice, check that all the details are correct, and then automatically pay the suppliers. AP Automation can also help you keep track of all your expenses and payments, so you always know exactly where your money is going. It further provides you with a well-organized filing system for all your financial documents. The best part? AP Automation saves you a lot of time and effort, so you and your team can focus on other important things, like coming up with new ideas to help grow your business.
Accounts Payable (AP) automation is rapidly gaining traction as a strategic imperative for enterprises seeking to streamline operations, reduce costs, and enhance overall financial performance. By leveraging AP Automation software, businesses can automate repetitive and time-consuming tasks such as invoice processing, payment approvals, and supplier management. This not only reduces the burden on finance teams but also minimizes the risk of human errors and ensures compliance with financial regulations. Moreover, AP Automation provides real-time visibility into financial data, enabling enterprises to make informed decisions, optimize cash flow, and strengthen supplier relationships. The benefits of AP Automation are undeniable, and forward-thinking enterprises are embracing these technologies to gain a competitive edge and drive further organizational success.
Why Enterprises Are Automating AP
Accounts payable (AP) is a critical function for any enterprise. It involves the management of payments to suppliers, and it can be a time-consuming and error-prone process. As a result, many enterprises are turning to automation to streamline their AP operations.
There are many benefits to automating AP, including:
Reduced Costs: AP Automation can help enterprises reduce costs by eliminating the need for manual data entry and processing. This can free-up employees to focus on other tasks that add more value to the business. Improved Accuracy: AP Automation can help enterprises improve accuracy by eliminating human error. This can lead to fewer late payments, disputes, and chargebacks. Increased Efficiency: AP Automation can help enterprises increase efficiency by streamlining the AP process. This can lead to faster payments, improved cash flow, and better customer service. Enhanced Control: AP Automation can help enterprises enhance control over their AP operations. This can help to prevent fraud, waste, and abuse. Improved Scalability: AP Automation can help enterprises scale their AP operations to meet the demands of growth. This can be especially important for enterprises that are expanding rapidly. Improved Cash Flow: AP Automation can help enterprises improve cash flows by automating payments and taking full advantage of payment terms, including early payment discounts.
If you are an enterprise that is considering automating your AP operations, there are a few things you should keep in mind. First, you need to assess your current AP process and identify the areas that are most in need of improvement. Next, you need to select an AP automation solution that is right for your business. Finally, you need to implement the AP automation solution and train your employees on how to use it.
By automating your AP operations, you can reap several benefits, including reduced costs, improved accuracy, increased efficiency, enhanced control, and improved scalability. Top 6 AP Automation Suppliers
There are a number of different AP automation suppliers in the market, each with its own unique strengths and weaknesses. Here are the top 5 AP automation suppliers, according to market share:
Market Share Leaders
Coupa: Coupa offers a comprehensive suite of AP Automation tools, including invoice processing, payment processing, and supplier management. Coupa has a market share of 28.6%. SAP Ariba: SAP offers a comprehensive suite of AP Automation tools, including invoice processing, payment processing, and supplier management. SAP Ariba has a market share of 23.8%. Oracle: Oracle offers a comprehensive suite of AP automation tools, including invoice processing, payment processing, and supplier management. Oracle has a market share of 19%.
Strong Players
Jaggaer: Jaggaer offers a comprehensive suite of AP automation tools, including invoice processing, payment processing, and supplier management. Jaggaer has a market share of 11.1%. Ivalua: Ivalua offers a comprehensive suite of AP automation tools, including invoice processing, payment processing, and supplier management. Ivalua has a market share of 9.5%. Challengers
Basware: Basware offers a comprehensive suite of AP Automation tools, including invoice processing, payment processing, and supplier management. Basware has a market share of 7.9%.
These are just a few of the top AP automation suppliers on the market. There are several other suppliers that offer AP automation solutions, so it is important to do your research and compare different solutions before making a decision.
Reliable Sources for Market Share Insights:
Gartner Magic Quadrant for Procure-to-Pay Suites IDC MarketScape: Cloud-Enabled P2P Procurement Platform – Worldwide 2023 Vendor Assessment SpendEdge – Procure-to-Pay (P2P) Software Market – Top Vendor Shares by Region (2023) Everest Group – PEAK Matrix Report 2023: Procure-to-Pay (P2P) Solutions
Here are the strengths and weaknesses and key differentiators of each of the top 6 AP Automation suppliers:
1. Coupa
Strengths:
Cloud-native platform: Flexible and scalable cloud-based architecture for easy deployment and updates. User-friendly interface: Intuitive and user-friendly interface for smooth adoption and training. Strong automation capabilities: Comprehensive automation across the invoice lifecycle for efficiency gains.
Weaknesses:
Limited industry expertise: Less focus on specific industry needs compared to some competitors. Cost: Subscription-based pricing can be expensive for large enterprises with extensive needs. Limited customization: Customization options might be limited compared to on-premise solutions. Differentiation:
Cloud-native platform, user-friendly interface, and strong automation capabilities.
2. SAP Ariba:
Strengths:
Global reach and industry expertise: Strong presence in large enterprises across various industries. AI-powered automation: Advanced features like AI-powered invoice matching and data extraction. Deep integration with SAP ecosystem: Seamless integration with other SAP solutions for end-to-end visibility.
Weaknesses:
Cost: Higher pricing compared to some competitors. Complexity: Can be complex to implement and manage for smaller businesses. Limited flexibility: Customization options might be restricted compared to some cloud-native solutions. Differentiation:
Deep industry expertise, AI-powered capabilities, and tight integration with the SAP ecosystem.
3. Oracle Procurement Cloud:
Strengths:
Competitive pricing: More affordable option for mid-size businesses compared to SAP Ariba. Seamless integration with Oracle ERP: Tight integration with other Oracle solutions for streamlined workflows. Real-time reporting and analytics: Robust reporting and analytics capabilities for better decision-making.
Weaknesses:
Limited industry expertise: Less industry-specific functionality compared to some competitors. Slower innovation: May lag behind pure cloud players in terms of innovation and agility. Complexity: On-premise deployments can be complex and require technical expertise. Differentiation:
Competitive pricing, tight integration with Oracle ecosystem, and real-time reporting capabilities.
4. Jaggaer:
Strengths:
Network-based approach: Strong focus on supplier collaboration and community through the “JAGGAER ONE” platform. Open and extensible architecture: Easier integration with existing systems and future technologies. Industry expertise: Tailored solutions for specific industries like healthcare and manufacturing.
Weaknesses:
Market share: Smaller market share compared to Coupa and SAP Ariba. Learning curve: User reviews sometimes mention a steeper learning curve compared to some competitors. Cost: Can be expensive for large enterprises with complex needs. Differentiation:
Network-based approach, open architecture, and industry expertise.
5. Ivalua:
Strengths:
Comprehensive functionality: Wide range of functionalities beyond AP automation, encompassing sourcing, contract management, and spend analytics. Strong analyst recognition: Consistently recognized as a leader in Gartner Magic Quadrant for P2P suites. Deep spend analytics: Robust spend analytics capabilities for strategic decision-making.
Weaknesses:
Cost: Higher pricing compared to some competitors, especially for complex functionalities. Complexity: Can be complex to implement and manage for smaller businesses. Target audience: More focused on large enterprises with complex needs. Differentiation:
Comprehensive functionality, strong analyst recognition, and deep spend analytics.
6. Basware:
Strengths:
Cost-effectiveness: Competitive pricing model, especially for mid-size businesses. Ease of use: User-friendly interface and intuitive design for quick adoption. Streamlined invoice capture: Efficient data capture and processing capabilities for faster invoice cycles.
Weaknesses:
Limited functionality: Primarily focused on AP automation with fewer broader P2P features compared to some competitors. Market share: Smaller market share compared to Coupa and SAP Ariba. Limited industry expertise: Less focus on specific industry needs compared to some competitors. Differentiation:
Cost-effectiveness, ease of use, and streamlined invoice capture. It is important to note that these are just general strengths and weaknesses. The specific strengths and weaknesses of each supplier will vary depending on your specific needs and requirements. Ultimately, the best AP Automation solution for an enterprise will depend on its specific needs and requirements.
Feature Analysis of the Top 6 AP Automation Capable P2P Suppliers
Here’s a comparative analysis of SAP, Ariba, Oracle, Coupa, Jaggaer, Ivalua, and Basware, focusing on key features and AP Automation capabilities:
This is just a general overview of the features and pricing of the top 6 AP Automation suppliers. The specific features and pricing of each supplier will vary depending on your specific needs and requirements.
Client Case Study: Reduce Costs and Boosts Efficiency with P2P Automation
A manufacturer of consumer goods with over 5,000 employees globally, struggled with a manual and paper-based accounts payable (AP) process. This led to inefficiencies, high processing costs, and poor visibility into spending. To address these challenges, this client organization implemented a P2P automation solution with a strong focus on AP automation.
Challenges Faced:
Manual and paper-based process: Invoices were processed manually, leading to errors, delays, and high touchpoints. Limited visibility into spending: Lack of real-time data hindered informed decision-making about procurement and cash flow. High processing costs: Manual data entry and approvals contributed to unnecessary operational expenses. Slow invoice cycles: Delayed payments impacted supplier relationships and potential early payment discounts. Solution:
Implementing a cloud-based P2P solution that offered comprehensive AP automation features, including:
Electronic invoice capture and processing: Automated data extraction and validation for streamlined invoice processing including header and line level details Workflow automation: Automated approvals and routing for faster invoice turnaround times. Real-time reporting and analytics: Granular insights into spending patterns and supplier performance. Early payment discounts: Ability to leverage early payment discounts for improved cash flow.
Business Benefits:
Reduced processing costs: Client estimates a 30% reduction in AP processing costs due to automation. Improved efficiency: Invoice processing time decreased by 50%, freeing up staff for more strategic tasks. Enhanced visibility: Real-time data allows for better spend management and decision-making. Faster payments: Faster invoice cycles improved supplier relationships and unlocked early payment discounts. Increased accuracy: Automated data entry minimized errors and improved data quality. Additional Details:
Client chose a cloud-based solution for its scalability, ease of deployment, and lower upfront costs. Solution had a single metric for ease of management and providing cost predictability Having an AP Automation solution linked to P2P solution will allow for better cost allocation internally and linking to Purchase order references. The implementation process was smooth, with minimal disruption to daily operations. User training was provided to ensure employees could effectively utilize the new system. Regular monitoring and data analysis helped Client measure the impact of the solution and identify further optimization opportunities. Lessons Learned:
Investing in P2P automation can significantly improve efficiency, reduce costs, and enhance visibility into spending. Choosing the right solution with strong AP automation capabilities is crucial for success. User training and change management are essential for ensuring user adoption and maximizing the benefits. Continuous monitoring and data analysis are key to optimizing the solution and achieving long-term value. Contracts Terms can facilitate customer journey and support fluctuating volumes over contract term. Providers have different SLA tiering and depending on Size of Business and criticality to the business Client should find their relevant SLA Tier. Conclusion:
By implementing a P2P solution with a focus on AP automation, this client organization successfully addressed its challenges and achieved significant business benefits. This case study demonstrates the potential of P2P automation to transform procurement processes, improve organizational performance, and create a competitive advantage.
Market Research Sources on AP Automation
Gartner: A leading research and advisory firm offering in-depth reports and insights on AP automation trends, vendors, and market forecasts. Link: https://www.gartner.com/en/documents/4003684 Specific Article: “Predicts 2023: Accounts Payable Automation” https://www.gartner.com/reviews/market/accounts-payable-invoice-automation-solutions/vendor/rillion/product/ap-automation/alternatives Forrester: Provides research and analysis on enterprise software, including comprehensive reports on AP automation solutions and vendor evaluations. Link: https://www.forrester.com/ Specific Article: “The Forrester Wave™: Procure-to-Pay Suites, Q3 2022″https://www.coupa.com/resources/analyst-reports/Forrester/2022/SVM Aberdeen: Specializes in benchmarking and research, offering data-driven insights into AP automation performance and best practices. Link: https://www.aberdeen.com/ Specific Article: “Accounts Payable Automation: The Path to Frictionless Finance” https://www.aberdeen.com/blogposts/managing-your-supply-chain-with-ap-automation/ PayStream Advisors: An independent research and consulting firm focused on the payments industry, providing in-depth analysis of AP automation trends and solutions. Link: https://www.paystream.co.uk/contact/ Specific Article: “AP Automation Maturity Model: Assessing Your Progress” https://instreamllc.com/wp-content/uploads/2019/10/InStream-AP-Automation-Info-Sheet-RevB.pdf Spend Matters: A procurement and supply chain research platform offering news, analysis, and insights on AP automation solutions and vendors. Link: https://spendmatters.com/ Specific Article: “AP Automation Vendor Comparison: Coupa vs. Basware vs. Tradeshift” https://spendmatters.com/2022/12/07/coupa-vs-basware-ap-automation-head-to-head-technology-evaluation-and-comparison/ PYMNTS: A digital media company focusing on payments and commerce, providing research and content on the impact of AP automation on financial processes. Link: https://www.pymnts.com/about/ Specific Article: “How AP Automation Is Streamlining B2B Payments” (https://www.pymnts.com/study/solving-accounts-payables-frictions-with-automation-technology/ Techvalidate: A customer review platform offering insights into user experiences with different AP automation solutions. Link: https://www.techvalidate.com/vendor-research Specific Search: Search for reviews of your chosen vendors (e.g., “SAP Ariba reviews”) Industry Publications: Look for articles and reports on AP automation in publications relevant to your specific industry. Examples: Supply & Demand Chain Executive, CFO Magazine, Journal of Accountancy Vendor Websites: Most major AP automation vendors offer white papers, case studies, and other resources on their websites. Examples: https://www.coupa.com/ https://www.basware.com/en/ https://tradeshift.com/ Webinars and Events: Attend industry webinars and conferences to hear from experts and gain insights into the latest AP automation trends. Examples: ProcureTech Virtual Summit, Institute of Finance & Management (IFM) AP & Automation Summit Remember, these are just a few starting points. It’s important to tailor your research to your specific needs and interests.
Conclusion
Enterprises are increasingly choosing to tech-enable their AP operations to reduce costs, improve accuracy, increase efficiency, enhance control, and improve scalability. By automating AP, enterprises can free up employees to focus on other tasks that add more value to the business.
If you are an enterprise that is considering automating your AP operations, NET(net) can help you minimize cost and value and maximize the realization of value and benefit. We have a team of experienced professionals who can help you assess your current AP process, select the right AP automation solution for your business, and implement the solution successfully.
Note: This Blog was released as part of the NET(net) newsletter of February 2024
Like many of the market leading SaaS companies, Veeva’s fiscal year-end is January 31st. Why is this important? Most technology suppliers before their fiscal year end will have an extreme ‘push’ by sales management to extract every last dollar of potential revenue before they have to report out their annual earnings. As any sales representative will tell you, everyone wants to close strong at the end of the year. Veeva is no different. To that end, however, there can be opportunities for savvy buyers who are willing to research and invest time in understanding their supplier and their place in the market – even with only days to go. It’s (almost) never too late for us to look.
Who is Veeva? A Recap
Veeva is one of the world’s most successful cloud software companies, founded in 2007 and headquartered in Pleasanton, California. Veeva over the years has developed a vertical specific cloud software geared to service the Medical, Healthcare, Life and Bio Sciences industries that are servicing over 1,000 companies that bring new medicines and treatments to patients. Even with this tremendous growth, Veeva is still on track to realize more gains in the coming years as most analysts see them growing by 13% YoY in revenue though 2025. It’s no wonder that Veeva is recognized as one of the top growth companies, holding places on lists like the Fortune Future 50 and the Forbes Fast Tech 25.
Their solution is built on the back of the Salesforce Platform, with whom they have a long-term partnership, which actually will expire in 2025. They have recently announced they don’t plan to renew that official relationship, rather they will migrate everything to their own back-end cloud platform, Veeva Vault. It’s reported there will be a five-year period for customers to get completely off Salesforce, but its widely thought that Veeva will be aggressively pursuing moves right out of the gate.
Among Veeva’s recent wins was with Merck, one of the world leading Pharmacy companies, who announced a long-term partnership to help reduce their operational costs, deliver value to patients, and optimize the healthcare professional and patient experience. Veeva is also taking a lead in an Industry consortium (CDISC Advisory Council) to advance clinical data management standards, by having Veeva’s Dan Crawford (Sr. Director, Veeva Vault VDMS) being elected as chairman.
Veeva One Year Stock Performance
Veeva Market Position
While not having the largest ‘wallet share’, Veeva can be seen as a market Leader in their industry space as being the only company that offers a fully integrated vertical industry solution. Companies in this same vertical often have better and more cost effective ‘point’ solutions, Veeva is often the more popular choice given they offer a superior ‘Suite Option’ that minimizes the cost, risk, and hassle of integrations.
Competitive Offerings
Multichannel CRM: Competitive offerings come by way of Oracle, Microsoft and several life sciences specific CRM providers such as IQVIA.
Master Data Management: Suppliers such as IBM, Informatics, IQVIA, Reltio and more serve as part of the competitive landscape.
Data Services: Again IQVIA looms as one of their primary competitors here.
Content Management: Here again, there are several very large global competitors like Microsoft, OpenText, and Oracle as well as vertical specific players like Medidata Solutions, Paraexel, IQVIA, BioClinica and Sparta Technologies to name a few.
In summary, the solutions offered by Veeva right now are global, rapidly evolving, and highly competitive. At the same time they are subject to changing regulations, advancing technology and shifting customer needs, so to continue their growth trend they will need stay ahead of the curve on all fronts.
Based on their growth, release of new products, highly rated customer support and flexibility, we would rate Veeva on our Supplier Evolution Scale as being an ‘Innovator/Market Leader’. While they are becoming dominant, they have not yet reached the full maturity of a Market Dominator:
Veeva Market Share:
Image: Apps Run the World
As Veeva is only dealing directly with Client/Prospects and not leveraging a channel partner they control their supply chain and communication. Their list prices are not published and therefore any deal is relatively custom made for the Client.
Pricing Methodology and Politics
AS mentioned, Veeva does not deal in the channel(s) so all their relationships are direct with customers. This can be a benefit as they have absolute control over their supply chain and communications. In addition to that, Veeva does not publish their list prices which may leave many customers wondering if they are getting a good deal versus their peers. Veeva will tell you that each solution is very customized for each customer, but this makes it very difficult for buyers to truly know how they are doing when entering a long-term deal.
As stated in our prior article, Veeva is very good in establishing relationships at executive levels within prospect and customer organizations. Often at these levels, discussions don’t get down into the commercial details which ultimately works against buyers as mid-level managers try to balance budgets across the organization and negotiate specific elements and products that are required versus those that are not needed.
Hidden list prices, executive relationships, and custom solutions are all telltale signs of overspending.
Customer Risk
We see a few risks that we help our Clients review (in addition to negotiating price, terms and conditions).
As mentioned previously, Veeva does not work with the channel. Given that everything they do is ‘in-house’, it’s very important to watch and guard against changing priorities of their enterprise. As their revenue grows and larger customers purchase their full suite of products, small and midsize businesses may suffer from lack of priority to Veeva sales and support.
Lock in used to be a term mostly associated with on premise software, but cloud software providers have gotten smart about entangling customers in a growing web of offerings that become very difficult to untangle and migrate without substantial pain and cost. While Veeva may offer the best ‘Suite’ of integrated offerings, that also means they are the biggest anchor to change.
Given the above, the competitive landscape may evolve quickly and companies like Oracle, IQVIA, Microsoft and others have a vast pool of resources and investment dollars to catch up and exceed Veeva’s capabilities and become viable alternatives.
Implementation can be a concern as well, since there is sole dependency on them to perform. Any delay or lack of resources on their end can cost you if resources become scarce.
Opportunities
As we enter 2023 and deep recession is forecasted, knowing the competitive landscape is critical if considering Veeva. As stated already, many of Veeva’s competitors are able to devote greater resources to the development, promotion and sale of their products and services than they are.
This means the market can initiate and withstand substantial price competition and offer competitive solutions on a standalone basis and at a lower price. Whether it’s bundled, standalone or as part of a larger product sale, lower risk, pricing, and greater flexibility may be achieved with competitive offerings. The potential downside is greater management overhead and integration costs. On balance however, the TCO may be better with competitive offerings if that is the primary business driver.
Additionally, Veeva competitors have established marketing relationships, access to larger customer bases and distribution agreements with consultants, system integrators and resellers that Veeva does not have given their ‘go it alone’ approach. With more competitive forces competing for the same business, the customer can come out ahead if a deal is structured correctly.
Lastly, as we stated at the top of the article, fiscal year end may offer opportunities as sales attempts to shore up revenue and bolster numbers. If you have a renewal, add on purchases to make or are considering a new relationship with Veeva – leveraging their urgency to get deals done may work for you.
Summary
When looking for a new Life Science CRM Platform, Veeva is definitely a platform to be considered. However, we urge caution that the actual sale includes the teams that will have to use and implement the software beyond the Executive offices where Veeva likes to sell. Going all in on a suite of options should not be done in a vacuum, but as we often see, it can and does happen. Typically, that has a great cost in the long run and often to those same executives who bought in early.
We recommend defined and actual requirements, along with system integrations needed. Full and thorough review of what your own IT team is able to do versus, where you rely on supplier resources as this could be a critical factor when working with Veeva.
With that we would recommend a go to market and challenge Veeva and their competitors to come up with a solution which fits your organization, timeline, cost and functionality, whereby you will have the option to choose between best of suite and best of breed solutions to get to your desired result.
Veeva is a market leader in its segment but comes with risk of overpaying for the solution and having trouble getting the necessary resources, which is something to be considered before making a decision for a platform solution.
Fiscal year end – ensure you know what is motivating your Veeva representatives to get deals done, whether at the executive level or rep level.
Coupa’s rise in the SaaS Business Spend Management sector has been impressive since its founding in 2006. Since its stock traded at an all-time high in 2021 at over $350/share, it’s been a rocky road for the company. In a market with greater competition and an economy putting inflationary pressure on companies, Coupa has found both its market cap and stock price plummeting since that high water mark. Since the very start of 2022, Coupa has been targeted as a potential acquisition, and as of this week – that’s what happened with Private Equity firm Thoma Bravo has agreed to an $8B takeover.
With Thoma Bravo, trying to acquire, they may be in the running for combining two companies in their portfolio, the first being Coupa and the other Hyland, whereby Coupa is covering the spend management capabilities for customers and Hyland is covering the AP automation. This could provide for deep integration and realized operational efficiencies for an area where most providers only offer part of the solution.
The fact that Thoma Bravo is willing to pay roughly 63% above the last trading (pre=press), and valuing the company at $8B, this indicated that either they see a lot of potential in optimizing and combining with other portfolio companies, or they are more interested in the data that the Coupa network is holding. The insight and market intelligence contained in the spending of Coupa customers could provide a treasure trove of market trends and analysis to leverage.
What does it mean for current and potential customers?
The Good:
There is no doubt that Spend management and AP Automation are an excellent area for enterprises to gain operational efficiencies. With limited resources being available companies will continue the trend of automating standard processes as much as possible. At same time, companies will want to have a good grip on their spending and where they are spending money, for which spend management and reporting software like Coupa is very much of interest.
The return on investment comes from many different areas:
Process Automation – fewer moving parts to almost any system leads to cost benefits.
Staffing Optimization – when supplier transactions are automated, there are opportunities to lower total costs in managing them.
Cash Management – when the AP/P2P processes are automated, cash is more efficient and financial opportunities in your own payment and discount agreements can be realized.
Risk Mitigation – with tighter controls on budget processes, fraudulent spending, closely tracking payables, and near real time control company wide, the chance that your company misses something is significantly reduced.
Coupa enjoys good ratings from its customers as well:
The downside is to P2P solutions are that they are very expensive and hard to get implemented to the full extent in the organization. We have many companies not getting the full potential out of the solution acquired. There are many reasons for this around:
Resistance to change, both internally and externally. Not everyone and everything is ready for change, which includes the suppliers you intend on using the platform.
Lack of current and accurate data around spend. In order to optimize spend and ‘set up’ your new platform, you need to know what you have first or you will just be setting up the new system to fail.
A word of caution as Coupa also offers the ‘Coupa Network’ which portends to provide Coupa clients with pre-negotiated terms for products of suppliers who are connected to the network. Now this sounds easy and convenient, but we believe this would not be the right way to go as you will miss out on market competitiveness and forego the actual validation of a product meeting your requirements. That would be like buying Coupa software without validating the market for competitive offerings that might be more inexpensive and a better fit for purpose.
Other key elements to consider in a Coupa solution:
Complexity of your organization ( single entity vs Multi entity)
Geographic location
ERP to integrate with
Approval flow in ERP or AP Automation Tool
Cloud or on premise
Volumes that need to be transacted
Invoice demographics ( e-invoice, PO, matching, PDF’s , limited line items, many line items, etc.)
Like many suppliers, when dealing with Coupa do not rely on their version of a business case designed by them to extract more budget from you. Overrated expectations and quite often disappointing implementations lead to tanking business value and ROI. The recipe of high sales price and cost per transaction coupled with a solution having lower than expected ROI, is a lose-lose scenario.
Lastly, we always encourage competitive RFPs to fully validate the right solution for your organization, which starts with knowing who the competition is. Coupa’s main competitors are:
In closing, before choosing to go down the path (or re-evaluate an existing platform) of spend management and AP automation, ensure you have a good view of the business characteristics that will contribute to the ROI of your organization. Only in this way can you truly validate a realistic business case which can then support the negotiations in a competitive landscape leading to an optimized outcome. In turn, this should lead to an implementation that is supportive of the business, rather than becoming one of the many failed projects that leaves a poor impression on the rest of the organization and exacerbates end user challenges.
With SAP Cloud Revenue exceeding expectations and SAP Management cheering on the RISE program, it looks like they finally have been able to get some traction with a business change program.
Some SAP customers that have been delaying their ERP refresh, maybe thinking they are running out of time to make a final decision on what to do with their SAP R/3. Not coincidentally, the RISE program seems to come at the right time for some, as an easy option when they are already on an SAP Platform.
We caution our Clients however, in taking a shortcut in your deliberations and not disregard the natural decision-making window of opportunity. These choices will have far reaching impacts for your future and careers.
Source: SAP Announcement for Preliminary 4Q Results and Full Year 2021 Results (dec 21)
Selecting a completely new ERP, is like an open-heart surgery, and should not be taken lightly. The move to SAP S4/HANA in the Cloud is like a completely new ERP implementation and would take a multiyear project and create substantial cost and effort to the organization. The key concern of many enterprises is the potential down time at migration, therefor SAP is supporting both a greenfield implementation as well as system conversions
This leads to the question. Why stick with SAP and re-commit for the next decade (again) to the SAP technology, which you might have been trying to get away from! For many customers, SAP has not been delivering the required value over the last years when they were using SAP on premise.
With several ERP providers being specific for different industries, there is a wide variety to choose from or to validate with your future requirements:
Infor, Oracle incl Netsuite, Microsoft D365, SAGE, WORKDAY, Acumatica, SysPro, Epicor, IFS, VISMA, Unit4, Exact, Afas, ODES to name a few.
How confident are you that SAP will be the right choice for you in delivering that cutting edge technology to support your disruptive transformation and ensure your organization will be ready for the next decade? Will you future proof for elements such as AI, Blockchain, changing consumer behavior and logistical models, and environmental challenges? Or will you just seek similar functionality, differently labelled, and no longer as an asset, but as a subscription?
If your organization is thinking about truly transforming the business, and want to bring in modern technologies, we would challenge you think twice (three times!) before making the decision to go with the RISE program, simply because you are an SAP Client (as they are counting on).
NET(net) can support you in your thought process and compare the different solutions and help ensuring you will get the best value for your money going forward. Which based upon your requirements, may still be SAP, but then at least the decision is based upon your requirements and a thorough process, rather than accepting the status quo and having regrets when SAP fails to meet expectations in the future.
Rapid Changing client behavior (initiated by COVID-19) and less physical interaction, required additional means to connect to prospects and grow your business.
If you are not doing it your competition will, and companies are loading up on technology to help them achieve this. The problem is, that many companies are loading up and buying the wrong products, at the wrong price, for reasons that are not shared across the enterprise.
General Situation:
Most Organizations have a CRM (Salesforce, Oracle, SugarCRM, Hubspot etc.) and one of the many Marketing automation tools, but lack the customer knowledge in order to have (near) real time marketing efforts targeting the right audience. This specific targeting generates more sales revenue and brand recognition with optimized use of resources (time and money), and provides a more valuable experience for customers and prospects.
Marketing activities should be based on customer interactions and enhanced data which show you understand the prospects interest and provide them with targeted messages related to their area of interest. This activity leads to higher opening and acceptance rate of emails and other correspondence.
Traditionally, there were efforts focused on mass marketing to very large groups with hopes for the best in scoring an opportunity out of that large group (sometimes sales people call this ‘spray and pray’).
Platforms today aim to enhance customer data using AI and other measuring tools for website visits, email communications, social media interactions, and other touchpoints along the buyer journey. This is both more cost effective and a more pleasant experience for the intended audience.
The means to do that is by creating a Customer Data Platform which helps to regulate the static CRM data with the actions of the Marketing automation.
Technology Friction Point
As we have seen however, often the marketing and related solutions are selected by the functional teams, with limited Finance and Procurement involvement, who may have a more holistic view of the organization. With the numerous solutions out there in the market, it is key that you will select the right party for ALL your requirements and constituents.
Check the developments and activities within your organization across the business for overlapping initiatives and priorities (product launches, prospect outreach, advertising, customer service and support, sales, product development, etc.). All these groups have different needs and short term objectives and often purchase technology to facilitate these plans without regard for the ‘big picture’. The results are disjointed messaging, branding and confusion amongst your customers and prospects.
Lastly, the amount of investments made by the company can often be several hundred times more than they need to be. A due diligence process to review all available technology that meets the entire organization’s needs, along with market data to ensure right sizing and pricing are keys to long term success.
Do not leave money on the table. Get us involved for higher returns beyond just your IT sales and marketing budgets, but all operational areas.
Message Posted as part of NET(net) on Linkedin: https://www.netnetweb.com/content/blog/topic/marketing
As 2021 so far has been again a year in light of COVID-19, and keeping the lights on the big question is whether you have spend enough time to make use of the opportunity to streamline your business and optimize your cost base.
Many suppliers have been increasing their cost base and increased their prices, which could lead to unexpected surprises when you are working on your 2022 Budget.
A continuous review of the license base and the contract terms is key to be able to manage and survive in these tough times.
Don’t let the 100 pound gorilla like SAP, Microsoft, Salesforce, Oracle etc ruin your business.
Take action now and either do the review yourself or have a independent 3rd party perform the review for you and see how you can safe money going forward. Money which can be spend in growing your business rather than increasing the profits of your suppliers.
So question yourself, did i get the most out of it, or should i be afraid for 2022.
When the answer is “No”, it’s not too late, start acting now.
Good Luck and if you need any help, feel free to reach out.
First of all Best wished for 2021 for every one, and that this crazy world may get back to normal soon. With the world going crazy I see a big change in Consumer Behaviour and how companies need to act upon this. No more shopping in the streets, working from home, online transition has been expedited by the lock-downs and people get used to it quite rapidly.
As organization this requires massive adoption and change to stay connected to your customer. Basically this means you need to gather and collect even more information of them, enhance your existing date with behavioral data and have targetted messaging to the customer.
When visiting a site that does not give me suggestions based upon my google searches it is a disappointment and makes my buying process more cumbersome. Which is why organizations need to invest more in Marketing Technology to be able to create this Customer Intimism. During 2021, I will be looking for disruptive players in the market that can really make a difference in 2021. Stay tuned.
Where every one is waiting for the real impact of COVID-19, business continues as normal. However clients get used more and more to virtual meetings and video conferencing.
Now the first storm has been weathered, companies are getting ready for the next big wave. In order to survive they need to re-baseline their cost base, which requires an in depth look at their way of operating and the IT resources required to facilitate this.
Hence currently i am busy with several optimization and cost reduction initiatives to help adjust clients to the new normal.
Sofar without travel to the client location, which has to wait a bit longer.
Keep the inspiration when working from home and do not forget, set your goals high, otherwise you never improve and exceed the market expectations.
Image: Apps Run the World
Source: SAP Announcement for Preliminary 4Q Results and Full Year 2021 Results (dec 21)