SolutionMap — Explanation of weightings by market persona: Large

SolutionMap — Explanation of weightings by market persona: Large


spring 2022 solutionmap

With the release of the Fall 2021 SolutionMap, Spend Matters unveiled its new “market personas” methodology, which replaced “buying personas” to better improve the accessibility and clarity of the maps. For more on the philosophy behind switching to market personas, read our full announcement here.

Each persona includes default requirement-level weightings set by Spend Matters analysts, who assess the relevance of all 500+ functionality requirements to the given persona and module. In each market persona, additional weighting adjustments are applied to the overall module and to customer reference responses to further emphasize points of relevance for each market segment.

For the sake of transparency and clarity, we are releasing further details on how the market personas differ from a weighting standpoint to represent unique buying scenarios. We will divulge this with four Spend Matters articles; the first reviews the SME persona, followed by the Mid, Large and Special (SOW, Direct, Risk and Optimization) personas.

Spend Matters Large market persona targets solutions for large enterprises. These solutions typically generate a revenue of over $1 billion yearly, and their geographic range is multinational. Moreover, they typically have advanced functionalities, complex deployment and global support and services.

Large market persona subcategory weightings by module

As with the other market personas, the Large persona weightings have a significant focus on core underlying technology. Across all subcategories considered in SolutionMap benchmarking, we weigh analytics and technology-related subcategories, such as general services, data management and reporting, highest for large enterprise solutions. Meanwhile, the least-weighted subcategories are related to configurability capabilities, such as organizational modeling and project management.

Sample of LARGE market fit weightings by module against functionality scoring elements (click image to enlarge)

large market persona

Note: In this LARGE core platform subcategory weightings by module table: the darker the shading = the higher the emphasis

 

We emphasize the following subcategories in the Large persona weightings by module:

  • Sourcing: For a large persona’s core platform, which includes functionalities that all SolutionMap participants are rated against, we emphasize reporting and core underlying technology, and place less relevance on project management and other configurability-related subcategories. This is due to a large organization’s preference for advanced report building and dashboard capabilities, as well as a highly scalable core technology architecture. Module-specific subcategories, which include functionalities specific to each of our 10 modules, include an emphasis on reverse auctions and RFX Modeling & Creation, as large enterprises value RFX support and automation, as well as reverse auction configurability. Module-specific subcategories less emphasized include contracting/negotiations support and sourcing services.
  • Spend analytics (SA): For core platform capabilities, we give higher relevance to core underlying technology, reporting, and data management subcategories, while placing lower emphasis on organizational modeling, project management, and document management. We emphasize the following module-specific subcategories: analytics process support, mapping & familying, and analytics workspace support, while placing less SA emphasis on account management, supplier and information management, supplier capabilities. We find that large enterprises are interested in advanced statistical analysis and mapping support due to their need for comprehensive trend prediction and analysis.
  • Supplier management (SXM): As with SA and Sourcing modules, we place most core platform weight on core underlying technology and reporting while placing least emphasis on configurability functionalities such as personalization and project management. Supplier performance management is the highest-emphasized SXM-specific subcategory, while SXM knowledge management and direct quality management are subcategories that hold the least relevance in supplier management. This is due to large enterprise’s preference for advanced metrics and performance management data, while knowledge management and material qualifications are trivial functionalities for their advanced deployment needs.
  • Contract lifecycle management (CLM): Core platform-related emphasis comprises core underlying technology and data management subcategories. Less relevant subcategories, much like other modules in the Large persona, include project management and personalization. CLM module-specific subcategories with a higher weighting include contract creation, authoring and negotiation, as large enterprises look for robust contract request and negotiation systems. Less weight is given to CLM services, account management, supplier, and CLM knowledge management.
  • Source-to-contract (S2C): For S2C’s core platform, we take into consideration core underlying technology and reporting, while giving less significance to project management and personalization. S2C module subcategories emphasized are mapping & familying, analytics process, and analytics workspace support, as large enterprises prefer advanced analytics and may have more users, and thus value multiple workspaces. We give less module-specific relevance to CLM services, SXM knowledge management and direct quality management.
  • E-procurement: For a solution’s core platform, we emphasize core underlying technology, general services, and standards & integrations, while de-emphasizing project management and personalization. The e-procurement module subcategory we give most relevance to is MRO & direct material requisitioning, as large organizations prefer advanced ability to create direct materials requisitioning and ability to collaborate between buyers and suppliers. We give least e-procurement relevance to assets requisitioning and fulfilment & tracking.
  • Invoice-to-pay (I2P): We emphasize core platform subcategories for I2P such as core underlying technology, reporting and standards & integrations, while de-emphasizing project management. Payment processing is the most relevant I2P-specific subcategory, due to large enterprise’s preference for solutions that can handle payments in multiple methods and can support and process payments and payment plans. Financing analytics is the least relevant subcategory.
  • Procure-to-pay (P2P): For procure-to-pay solutions, core platform subcategories we emphasize most include core underlying technology and general services, while de-emphasizing project management. For P2P module-specific subcategories, we  emphasize supplier self-service, as large enterprises prefer supplier profile verification and registration management. We de-emphasize module-specific subcategories such as financing analytics, payment analytics and fulfilment & tracking.
  • Source-to-pay (S2P): We place emphasis on core platform subcategories such as reporting and core underlying technology, while placing less significance on project management. For S2P-specific subcategories, we emphasize analytics process support, analytics workspace support, and mapping & familying, while de-emphasizing supplier financing analytics and fulfilment and tracking, among other persistence and support-related subcategories. This is due to large enterprise’s preference for advanced statistical analytics and multiple workspace support, and disinterest in delivery visibility and financial analysis support.
  • Vendor management services (VMS): We emphasize core platform subcategories including data management and core underlying technology, while de-emphasizing personalization and project management. Staffing management and financial management are the VMS-module-specific subcategories we emphasize, as large enterprises are typically interested in candidate selection capabilities and expense and budget management. We give less VMS-specific emphasis to document management, as it is not a priority for large enterprises.

Large market persona-level modifier weightings

In addition to subcategory weightings, Spend Matters also uses modifiers that vary by market persona in order to account for factors such as price, geography and value beyond technology to better account for the needs of particular markets. Each persona also receives an overall weighting emphasis, meaning persona-level modifiers are applied more heavily (or not) based on the market use case.

As a whole, the Large persona tends to apply modifier weightings less heavily than the other market personas, which is to say that price, geography and value beyond technology do not impact Large weightings as much as they do for SME and Mid personas. That being said, each modifier weight differs from SME and Mid persona weights. For example, price is weighted lower than for both Mid and SME personas. This is because a large enterprise solution typically costs more due to its advanced functionalities and complex deployment methods. Moreover, geography is weighted significantly higher than for SME and Mid personas due to a Large persona solution’s ability to support global services and multi-national deployments. Value beyond technology is weighted slightly more than it is for SME value beyond technology, as value delivered from services is more desirable for large enterprises.

Modest differences exist across modules within market personas as well:

  • Large sourcing, S2C and S2P modules assign a heavier weight to geography than many other modules
  • Spend analytics Large modifiers include a slightly heavier weight on price than other modules
  • Finally, P2P, VMS, I2P and e-procurement vendors have a marginally higher Large persona modifier weight on value beyond technology compared to other modules.

Large market persona customer response weightings

Finally, we also place weights on customer response questions. We do not modify customer scores, nor do we construct them ourselves, rather, we use a survey-driven approach that excludes analysts. The questions in the survey, which are identical across market personas, feature weightings so that we can emphasize the relevance (or lack thereof) of certain questions based on the market persona.

Each module within a market persona includes slight variations on customer question weightings. Similarly, every question within a particular market persona and module features an identical weighting.

Compared to SME and Mid market personas, Large persona solutions emphasize customer response survey capabilities such as:

  • As a technology/solution provider
  • Systems integration
  • Configurability
  • Best fit for cross-functional needs (Legal, SC, etc.)

Large market personas de-emphasize the following customer response question weightings:

  • Pricing/affordability
  • Quick deployment
  • Return on investment
  • Supplier network



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