Procurement teams are now under pressure to re-evaluate their analytics strategy in light of Microsoft's recently announced PowerBI price increase.
With this 40% increase, companies with as few as 100 licenses will see their annual PowerBI costs rise by nearly $5,000.
While PowerBI can be adapted for procurement, this article covers why specialized solutions often offer greater value.
Why PowerBI Limits Procurement
As a generic business intelligence tool, PowerBI fundamentally lacks many features that agile procurement teams require.
Building an analytics solution from scratch can be a lengthy process. Achieving basic functionality often takes over 10 months, while a complete end-to-end solution may take years.
This results in several key challenges:
- Essential procurement features like data classification, cleaning, and supplier harmonization demand significant development efforts.
- Evolving procurement processes and reporting require PowerBI logic changes, increasing costs and complexity.
- Generic BI roadmaps follow broad trends, not procurement-specific needs, leading to functionality gaps.
- Growing teams encounter higher per-user licensing costs, impacting scalability and budget.
The Advantages of Best-of-Breed Procurement Analytics
Predictable Costs and Continuous Improvement
The fixed subscription fee model, which covers unlimited users, offers predictable cost control and scalability.
It eliminates the per-user costs, making access to analytics across the procurement organization possible.
The subscription also covers ongoing maintenance and innovation, guided by industry feedback, market trends, and regulatory changes.
Total Cost of Ownership
Beyond immediate savings, Total Cost of Ownership (TCO) is crucial.
While building from the ground up may seem cost-effective, hidden costs, like long-term maintenance, infrastructure updates, and data management, quickly add up.
Specialized solutions like Sievo lower TCO by reducing IT development needs, minimizing manual work, and ensuring continuous innovation without extra costs.
By leveraging an external provider, procurement teams gain cutting-edge technology, community-driven insights, and scalability without the heavy internal investment.
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Efficiency and Speed
When the analytics platform is built from the ground up to address procurement challenges, it evolves in lockstep with the landscape, minimizing the need for costly customizations that general BI tools require.
An advanced solution like Sievo is ready to deploy.
This means unmatched efficiency as procurement becomes more complex and margins tighter.
In fact, Sievo's time to value is less than a fifth of the time it would take to build even a basic PowerBI setup.
Advanced Analytics and Deeper Insights
Unlike general-purpose BI tools, dedicated platforms offer advanced analytics tailored to procurement, such as category management, risk analysis, and savings tracking.
This allows for deeper insights into materials forecasting, moving beyond basic reporting to more strategic procurement activities.
Conclusion
Every day waiting to launch is a missed opportunity to optimize your procurement. It’s time to accelerate.
Don't settle for limited spend visibility. As your procurement analytics partner, we provide the tools and expertise to improve visibility and capture opportunities you never knew existed.
Ready to see the results for yourself? Book a demo with us today.