Monday, 25 July 2016

[Guest Blog] eAuction in the cloud is heaven

Peter Schmidt's latest article discusses the generic benefits of SAAS and what eAuctions in the cloud means to businesses.

'Software as a Service', commonly abbreviated to SAAS, carries a number of generic benefits. These benefits are particularly true for an application like an eAuction as delivered by Market Dojo

Let us first have a look at some of the generic benefits of SAAS

The idea behind SAAS is that the software can be used as a utility. The financial model behind the SAAS solution should be tailored to the majority of the cases. This makes it a strong competitor to in-house ERP (Enterprise Resource Planning) systems, as in most cases the cost is based on licenses and excess functionality that comes with a higher price.

Once functionality becomes a pay per use utility, it makes it extremely interesting for experimenting as to how it will help to show the benefit to the business. In most cases you can test the functionality through demos, which are generally free for a period of time.

SAAS applications are often used without the permission of IT departments, IT departments can be apprehensive about the use of unknown SAAS applications. Commonly referred to as shadow IT. Therefore characteristics like data privacy, security and the location of data servers should be shared with the IT department to avoid the cloud casting a shadow over the IT people.

However as the carrier for SAAS application is the Internet, the presence is ubiquitous, which gives the customer the benefit of the world market.

The cloud addresses the world as a customer base, allowing users to learn from each other and their experiences by analysing the metadata, made available by the supplier. Individuals would be able use the metadata to glean how other users have established results through different tactics and strategies. An example of this would be deducing the most suitable auction type such as a Ranked Reverse Auction or Japanese Reverse Auction from the data produced by previous auctions.

At the same time this information can be used by the supplier to gain insight into how enhancements to the SAAS solution can be made, while at the same time listening to the user community.

The generic benefits of SAAS applied by Market Dojo

Why do I think that eAuction in the cloud is heaven? Because it is utility driven, eAuction’s are a process that usually takes place a number of times per annum. Making the business case is not rocket science. Simply the cost is known and therefore the likely savings, typically showing a very high return on investment. Also during the eAuction the savings can be seen in real time, which allows for an immediate assessment of the anticipated business case.

This part is clearly understood by Market Dojo in their pricing model which is transparent and tailored to the individuals intended use.

Market Dojo have created an experimental environment in a sandpit. Allowing users to practise creating an event prior to purchasing a license. It also shows users that the software is geared to the fundamentals of the most commonly known auction types.

Transparency in how the SAAS environment is built and how attention is given to the most common worries about Cloud Computing is clearly outlined in the language of the IT folks. White papers, guides and templates are all available as documents that can be downloaded from their site.

Market Dojo has also issued an infographic that shows the analysis of the number of eAuctions that have been carried out. This infographic shows a reflection of their experience in the field and can be used to determine the strategy for your next eAuction.

Although the software is an enabler for the entire eAuction process, it genuinely comes to life with the aid and the expertise of a procurement professional, who can create a structured process around eAuctions. Which in itself is crucial for success.

Peter is an independent consultant for P.Schmidt Consultancy Service B.V and has a long track record in sales, consultancy and procurement. He specialises in Telecoms, Managed Services and Public Cloud.

Peter Schmidt
Independent Consultant
Tel: + 31 6 217 124 72

Market Dojo helps procurement professionals negotiate better with our on-demand eSourcing tools. If you’d like to find out more, get in touch or register for free and play around with our software for yourself!


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