The opportunity cost associated with inferior eSoucing tools can be enormous given that the software costs are so small relative to the spend volumes that are managed. For example, the performance differences between eSourcing solutions that have optimization versus those that don’t can be stark. Many enterprises are still applying old buying practices but some are changing tack and realising that in the procurement software space in particular, combining two or more best-of-breed solutions from smaller vendors can offer a competitive advantage.

Underneath the hood, however, there is often a patchwork of acquired software offerings whose integrations are limited and the core skills to maintain and improve the codebase are lost following each acquisition. The problem, however, in the software industry, is that smaller nimbler providers who often provide best-of-breed solutions for niche requirements have to compete with larger counterparts offering broad suites but usually lower quality solutions that improve slowly, if at all On paper, the easiest decision is to spend more with a single vendor as it has the appearance of being an easier to manage solution. This worked for engineering and infrastructure projects in the past so why change the model for software? Large enterprises have historically tended to trust other large enterprises and been willing to pay a premium for perceived quality of service. Strategically important investments such as software infrastructure often receive generous budgets but the process for spending this is often deeply flawed. In today’s traditional enterprise software sales scenario, big companies harbour dreams of realising quick and effective change management across large organisations. The Enterprise software sector echoes this drama in numerous ways and shares its inevitable ending. It was a tale that conveyed the American Dream but was interlaced with flashbacks that betrayed the contrast between illusion and reality. Arthur Miller’s 1949 play ‘Death of a Salesman’ is often listed as one of America’s finest and most influential stage dramas of the twentieth century.

1949 death of a salesman