Lions and Tigers and Bears - SAP and Ariba and Fieldglass, Oh My!

What happened?

Last week, SAP bought the farm, or at least they bought Fieldglass.  In my last post, I talked about different approaches to linking purchasing systems like Ariba to VMS processes and technology and Ariba’s aggressive move in expanding into Contingent and Services procurement.

What does this acquisition mean?

I might spend less time integrating Fieldglass and Ariba than in the past since SAP, Ariba and Fieldglass need to have a consistent and well articulated strategy for current and prospective customers.

For other VMS competitors (e.g. IQN, Provade, Emptoris, PeopleFluent, etc.), they need tread carefully as the Fieldglass and Ariba combination with the sponsorship of SAP have formidable assets and a large installed base to tap into.  The competition needs to dance and dance fast to stay relevant!

Existing Fieldglass and Ariba customers need to plan a strategy as to what fits their situation.  Ariba, Fieldglass, SAP and SuccessFactors are a big extended family.  If you’re a SAP true believer, common systems, common architecture, common neck to choke, this blanket all things SAP approach has merits.  But as part of your extended family, you don’t necessarily want to move in with your Aunt Phyllis, just because you share one fourth of your DNA with her.  Or do you?   Big can be good but it can be unwieldy too.  Think and plan first.

How are Ariba and Fieldglass integrated now?

There are really two and three methods Ariba and Fieldglass are integrated today….  Or at least two approaches that I have integrated and then the Aunt Phyllis, old fashioned method.

Ariba punchout to Fieldglass

The first and probably most common approach is Ariba Punchout to Fieldglass Work Orders, Job Postings, SOWs and/or SOW Responses.  In the case of punching out to a Work Order, initially a Job Posting is created, followed by sourcing and then selecting the Worker.  Then somebody in Ariba Punches out from an Ariba Purchase Requisition to the Fieldglass Work Order.  Once the PO is approved, it releases the Work Order to the Supplier. 

Work Order Revisions can be punched out from Ariba Change Orders too in this model.  The problem with this serial process is it takes time to get the PO approved after the worker has already been sourced.  Or cycle times go and you can lose workers. Ditto for SOWs and SOW Revisions.

Fieldglass to Ariba Purchase Requisition

The second approach is using something called “Requisition Import” where a Work Order, Job Posting or SOW is formatted into a common Ariba upload format and then loaded into Ariba from a Fieldglass interface or what becomes three interfaces into Ariba since the Ariba header, line and cost details are split into three file components loaded in sequence.  This means the manager doing the hiring starts in Fieldglass and Ariba becomes an approval tool only.  Once the PO is approved or denied, it’s sent back to the VMS to release the Work Order or SOW.

This approach works great because it provides a mechanism where the worker procures contingent labor or services in Fieldglass, while retaining the approval hierarchy typically loaded with spending authority limits, unique cost center rules, and other industry leading Ariba controls.  Fieldglass is a great contingent purchasing tool, but you need all the master data, managers and rules to make it work and this takes time and requires support.  Since they usually already exist in Ariba already, this Req Import integration makes a lot of sense.

The consideration for Fieldglass being the starting point for entry is now your contingent data has to be clean or things like cost centers, business units, hiring managers all need to be map into Ariba without errors.  Otherwise, you’re fixing draft or composing Purchase Requisitions in Ariba.

Don’t forget the Swivel chair (Aunt Phyllis)

Last, but not least, is the swivel chair where Job Posting and Purchase Requisition data is manually entered into both Fieldglass and Ariba, respectively. Once the PO is approved, the PO number is keyed into Fieldglass on the Work Order or SOW.  Typically a workflow step is in place so that the program office holds the Work Order and keys in the Purchase Order once approved in Ariba.

What about SuccessFactors?

I expect to see Worker integration from Fieldglass to SuccessFactors and maybe a direct integration of user data from either SuccessFactors or SAP into Fieldglass.  Rather than rolling your own, expect the SAP/SuccessFactors/Fieldglass team to build something in the coming years. Customers want to have their entire workforce tracked in one location and with contingent in Fieldglass and permanent populations in SuccessFactors, it’s nice to merge key attributes of each population merged together to get a total picture of the workforce, commonly referred to as Talent Supply Chain Management (TSCM). 

Frequently, both contingent and permanent data is linked into ID Management (IDM) systems for security and provisioning of badges and assets.  Expect to see a marriage of contingent and permanent between applications and probably a Business Object fronted data warehouses.  The SAP umbrella is getting larger and for an enterprise customer, things will get knitted together in time.

What about the Technology?

Ariba On Demand and Fieldglass both are cloud based so it’s a matter of connecting them behind the Cloud curtain.  On the back end they are both J2EE (java) engines. 

Ariba’s been bolstering Ariba Contingent buyer to look more web 2.0 and to compete more effectively with VMS technologies.  They can learn a lot from the Fieldglass user interface which is more mature than Ariba’s relatively utilitarian front end.  I’m not sure how the UI will be merged but Ariba had been working to enhance their UI to encompass get more of a Web 2.0 feel.

Toss in SuccessFactors and SAP and there is not a clear or at least straight path. Make them look alike, consistent, adopt common taxonomy and they will eventually look like cousins. 

Also, because Fieldglass lives in a different database (MS SQL Server), it will keep a lot of guys at both companies coming up with a strategy to let disparate databases talk.  I don’t think we’ll see databases being merged for a long time.

What should potential Ariba and Fieldglass customers do when thinking about putting these together?

Plan on having the application workflow and possibly key pieces of master data (users, cost centers, sites/ship to, business units, etc.) as shared entities in the future.  If you are integrated, leave it alone or finish the integration in process.  I don’t think you will have to load cost centers or users into both systems, just one.  If you are an SAP customer, you’re fortunate in that we should expect to see easier access between applications under the SAP umbrella.

We’ll see what merged pricing models look like, but I’m thinking that this could be a win-win.  Instead of writing checks (or markups) to two vendors, customers should be able to leverage the relationships and merge their contracts.

And then there was Workday

I’m curious what Workday does.  They have been disciplined about each move they have taken.  They have quickly surpassed the VMS technologies in building an open platform.   I think they will purse the contingent business once they realize how many clients have integrated Fieldglass or IQN with their suite.  Disclaimer:  I have integrated Workday and Fieldglass.  Once again, stay tuned. 

About the Author Bruce Hubbell has project managed, architected, tested and served as a subject matter expert for many VMS (vendor management systems) integration to Ariba and other systems such as ERP, IDM, SSO. He has an extensive background in ERP, VMS, Financial, HR, Procurement, Integration and Analytic technology and business processes with extensive knowledge in integrating Ariba and Fieldglass.  He lived through the Oracle/PeopleSoft merger and created the original PeopleSoft Fusion team at Oracle.

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