Travel & Entertainment Technologies and Services

22 

Loading....

Loading....

Loading....

Loading....

Loading....

Full text

(1)

Travel & Entertainment

Technologies and Services

Overcoming Obstacles Through Data Insight

May 2007

(2)

Executive Summary

As reported in previous Aberdeen reports, Travel and Entertainment (T&E) expenses are significant within most enterprises. T&E is still an area of priority according to the 435 survey respondents. The top factor, according to 54% of enterprises, continues to be the reduction of corporate spend on T&E, and this is likely to remain as the major reason for T&E related initiatives.

This report explores the strategies and intentions enterprises have around: online booking, corporate card programs, expense management solutions and travel management companies (TMCs).

One of the key areas of focus is the access to and value of T&E related data. Data around corporate travel and entertainment is the key to monitoring compliance to policies which, in effect, drives negotiations and better deals with travel suppliers.

Best in Class Performance

Two key metrics used to determine Best in Class performance include the rate of compliance to corporate T&E policies and the adoption rate of preferred TMCs or online booking tools. As a result we were able to determine additional performance improvements in the following areas and more:

• Seventy-three percent (73%) of Best in Class enterprises have a consolidated T&E program in place, compared to 50% of others.

• Eighty-four percent (84%) of Best in Class enterprises have established T&E policies, processes and tools across the enterprise.

Business Value Findings

In the corporate T&E world, data is king. Data around flights, hotels, car rentals, meetings and many other categories drive corporate policies and affect leverage with suppliers.

• Eighty-five percent (85%) of respondents said data extracted from an expense management solution was essential or important to managing T&E.

• Eighty-eight percent (88%) of he respondents report that data is essential or important to monitoring spending patterns.

• Eighty-eight percent (88%) said that easy access to data and reports is essential or important to achieving savings around T&E.

Required Actions

Enterprises should:

• Consolidate or implement tight integration of T&E data sources to deliver accurate and complete intelligence.

• Establish key performance metrics by analyzing and identifying the greatest opportunities to generate costs savings. Equally important is developing strategies to improve the metrics. • Leverage enhanced travel data, such as city pairs, trip legs and hotel folio detail to ensure

(3)

Table of Contents

Executive Summary ... 2

Best in Class Performance... 2

Business Value Findings ... 2

Required Actions... 2

Chapter One: Benchmarking the Best in Class... 4

Driving Factors and Strategic Actions... 4

Maturity Class Framework... 4

Discounts and Booking Transaction Costs... 5

Best in Class PACE Model... 7

Chapter Two: Business Value Findings... 8

Data is King... 8

Competitive Assessment ... 10

Organizational Capabilities and Technology Enablers... 11

Chapter Three: Required Actions... 13

Laggard Steps to Success ... 13

Industry Average Steps to Success... 13

Best in Class Steps to Success... 13

Featured Underwriters... 15

Appendix A: Research Methodology ... 18

Appendix B: Related Aberdeen Research ... 21

Figures

Figure 1: Strategic T&E Actions... 5

Figure 2: Discounts by Company Size ... 5

Figure 3: Booking Transaction Costs... 6

Figure 4: Methods of Booking Travel... 6

Figure 5: Importance of T&E Data Sources... 8

Figure 6: Importance of Data in Accomplishing Key T&E Related Activities... 9

Figure 7: Actions/Strategies that Contribute to Savings Around T&E ... 9

Figure 8: Responsibility and Oversight for T&E Processes... 11

Figure 9: Current and Planned Usage of Technology and Service Providers ... 11

Figure 10: Using One Technology Vendor vs. Multiple Vendors Across All Sites ... 12

Tables

Table 1: Companies with Top Performance Earn Best in Class Status... 4

Table 2: Best in Class PACE Framework... 7

Table 3: Competitive Framework... 10

Table 4: PACE Framework... 19

Table 5: Maturity Framework ... 19

(4)

Chapter One:

Benchmarking the Best in Class

Driving Factors and Strategic Actions

Within the Travel and Entertainment (T&E) category, often a large expense item for enterprises, there are a number of technologies and/or services being used. Namely, online booking tools, expense management solutions, corporate card programs and travel management companies (TMCs). These are often looked at in individual silos with different organizational responsibility over them. However, one of the challenges facing enterprises today is the consolidation and aggregation of these various data sources and tools.

Before exploring this further, it’s important to look at some of the overarching factors that are driving improvements and strategies around T&E expenses. The top factor, according to 54% of enterprises, continues to be the reduction of corporate spend on T&E, and this is likely to remain as the major reason for T&E related initiatives. Second to that is an overall effort to centralize and control major areas of corporate spend (including categories like print, contract labor, telecom, etc).

Maturity Class Framework

As mentioned throughout the study, Aberdeen categorizes respondents into three buckets, Best in Class, Industry Average and Laggards. Table 1 shows the metrics that were used to determine which enterprises fall into those buckets.

Table 1: Companies with Top Performance Earn Best in Class Status Definition of

Maturity Class Mean Class Performance

Best in Class: Top 20% of aggregate performance scorers

89% averagecompliance to corporate travel policies

Over 85% adoption of preferred TMC or Online booking tool Industry Average:

Middle 50% of aggregate performance scorers

70% average compliance to corporate travel policies

50-85% adoption of preferred TMC or Online booking tool Laggard:

Bottom 30% of aggregate performance scorers

55% average compliance to corporate travel policies

20-50% adoption of preferred TMC or Online booking tool

Source: Aberdeen Group, 2007 To better understand enterprise strategies around this topic we researched the degree to which certain strategies have been implemented (Figure1) and compared them to what Best in Class (BIC) companies have already implemented.

Fast Facts

The second driving factor for C-Level executives, after reducing spend is the pressure to streamline back-office operations (32%)

(5)

Figure 1: Strategic T&E Actions 20% 21% 22% 50% 54% 34% 39% 35% 29% 32% 30% 29% 31% 10% 10%

Implement strategies to increase employee adoption of the various tools Closer integration of various T&E technologies

and services

Improve data reporting and analytical capabilities Consolidation of travel programs across the

enterprise

Establish T&E policies, processes and tools across the enterprise (i.e., across all sites)

CURRENTLY IN PLACE PARTIALLY IN PLACE PLAN TO IMPLEMENT

Source: Aberdeen Group, 2007 Our research shows progress in terms of establishing policies, processes and tools is further along unlike reporting and analytical capabilities where a significant percentage of enterprises are either in the partial or planning stages. Consolidation of travel programs includes, for example, centralizing operations and largely standardizing processes and policies while also leveraging the entire travel spend of a company (across all divisions and locations). From the table above, 73% of BIC have a consolidated program in place, compared to 50% of others. In terms of establishing policies, processes and tools across the enterprise, approximately 84% of BIC enterprises have implemented these already. The 32% of others that report having this partially in place may still be in the process of establishing these across the enterprise.

Discounts and Booking Transaction Costs

Another metric collected is discount rates on various categories of T&E spend. A major part of the discounts that enterprises are able to secure

depends on their volumes, therefore, the discount rates are broken out by company size (Figure 2).

These figures help to illustrate the value of accurate data collection and aggregation (i.e., discounts on major T&E categories). The higher the compliance to policy within, the more leverage enterprises have with their suppliers. Stated another way, it is important to monitor and encourage the usage of preferred vendors.

Figure 2: Discounts by Company Size

15.3% 16.7% 10.0% 13.9% 7.4% 9.2% 5.4% 7.5%

Airfare Hotels M.I.C.E Car Rentals Large (Revenues > $1 billion)

Mid-Market (Revenues $50 MM to $1 billion)

M.I.C.E – Meetings, Incentives, Conferences and Events Source: Aberdeen Group, 2007

Currently in Place Best in Class 84% 73% 52% 59% 50%

(6)

When it comes to transaction costs, online booking solutions certainly present a great opportunity for savings. As shown in Figure 3, online booking costs are significantly lower than booking by phone with an agent. Best in Class enterprises compared to the average are benefiting from lower costs for all three methods of booking.

Despite the lower costs for online booking, on average about 42% of all transactions are made online without agent assistance (figure 4). Approximately 36% are still booking travel by phone through their agency, which begs the question of whether 100% of transactions can be made online.

From our interviews we have learned that moving everything online does not make sense for all companies, due to the complexities and the necessary adjustments to accommodate the changing nature of business trips. What we did find is that 29% of respondents book over 75% of their travel online without agent assistance.

Figure 3: Booking Transaction Costs

$8.1 $14.4 $24.2 $13.6 $22.2 $36.1

Online booking tool Online booking tool w ith agent assistance By phone through travel agent Best in Class Average

Source: Aberdeen Group, 2007

Figure 4: Methods of Booking Travel

Unauthorized vendor via phone, 3.8% Unauthorized vendor online, 8.5% Online booking tool 41.4% Online booking tool w ith agent assistance, 11.3% By phone through travel agent, 36.0%

Source: Aberdeen Group, 2007

“We can’t do everything online, there are too many variables, the online world has to fit into small boxes. However, for what we can do online, in the first year we had 30% adoption and now we are at 70% and overall transaction costs are down.”

- Corporate Travel Manager, Financial Services

(7)

Best in Class PACE Model

Using T&E Technologies and Services to achieve Best in Class performance requires a combination of strategic actions, organizational capabilities and enabling technology that can be summarized as follows.

Table 2: Best in Class PACE Framework

Pressures Actions Capabilities Enablers

• Efforts to reduce corporate spend on T&E • Establish T&E policies, processes and tools across the enterprise

• Consolidation of

travel programs, associated data and expense processes • Improve data reporting and analytical capabilities • Closer integration of various T&E technologies and services

• Access to accurate and

timely data

• Centralized approach to management of T&E related activities (e.g., by region, business unit)

• Travel policy management

• Corporate card

program, allowing for data capture

• More automated method of creating, submitting and approving expense reports.

• Online (self) booking

tools

• Tools that allow easy interpretation of data and allow for dynamic reporting Source: Aberdeen Group, 2007

Aberdeen Insights – Strategy

For global enterprises considering consolidation, part of this includes the establishment of standard processes and tools, however, this does not necessarily mean standardization on policies across the enterprise. This is particularly due to regional differences in not only regulations but also cultures and business ethics. The other part of a consolidated program is being able to leverage the entire spend of an enterprise, a key enabler to achieving this is visibility into that spend.

(8)

Chapter Two:

Business Value Findings

Within our survey, the average T&E spend was approximately $12 million per year. For large enterprises (revenues over $1 billion) this number was $24.8 million and the average for mid market enterprises (revenues between $50 million and $1 billion) was $5.2 million. The top end of the T&E spend in the survey came in at over $100 million. With such large amounts at stake, enterprises are looking largely to technology for not only efficiency, cost reduction and visibility, but also employee convenience and productivity.

Data is King

In the corporate travel world, data is king. Data around flights, hotels, car rentals, meetings and many other categories drive corporate policies and affect leverage with suppliers. Unfortunately, enterprises face challenges in this area such as the gap that often exists between actual and booked data. Booking data on its may miss the potential policy violations due to trip changes after booking or the use of unauthorized vendors. On the other hand expense reporting data provides details into actual expenses, but typically does not reveal the user’s unselected options that can improve the understanding of potential savings and compliance. With the addition of travel management company reports and corporate card feeds, the complexity and value of T&E related data significantly increases. Figure 5 shows the importance that

survey respondents attribute to various sources of data. The data extracted from an expense management solution was reported by 51% to be essential and arguably is the most comprehensive and accurate actual data because it includes both expenses charged to the corporate card as well as those paid for through other methods.

In the end, the more data that is captured and the higher the accuracy of it, the better enterprises can monitor, track and control T&E spending. Therefore, it is critical to ensure that employees adhere to established policies and processes. If more than

one tool is used, integration of these tools can add significant value. For example, integrating a corporate card feed with an expense management solution to pre-populate expenses.

Figure 5: Importance of T&E Data Sources

34% 37% 39% 47% 51% 32% 36% 30% 30% 34%

Online Booking Tool Travel Data Reporting Application Travel Management Company Corporate Card Program Expense Management Solution

Essential Important

Source: Aberdeen Group, 2007

“We don’t have one

dashboard for everything and that’s a challenge, we get customized reports from our TMC, however it is booked data. Attaining actual data is a lengthy internal process and is very manual.”

- Corporate Travel Manager, Large National Bank

(9)

One of the key survey questions was aimed at learning more about where, specifically, this data is being used and how important it is to performing certain activities, such as tracking compliance, monitoring spending patterns or for use in supplier negotiations. As Figure 6 shows, data is essential to a number of activities. Over 85% of the respondents report that data and reports are essential or important to both tracking compliance and to monitoring spending patterns and trends. It is interesting to see how the actions and strategies enterprises are implementing, or have already implemented, are impacting savings around T&E. A majority of respondents, 91%, reported that compliance to travel policies is essential or important to achieving savings. Similarly, 88% said access to T&E reports and data is essential or important to achieving savings. It is clear from Figure 7 that there are several factors that contribute to achieving this savings; but, it is important to remember that the underlying structure (policies, processes and tools) is the key to improved results.

Figure 7: Actions/Strategies that Contribute to Savings Around T&E

27% 34% 37% 38% 40% 44% 45% 46% 55% 59% 48% 35% 47% 42% 36% 44% 39% 36% 36% 30%

Supporting preferred vendors Adoption of an online booking tool Auditing of T&E expenses Strategic sourcing of various T&E categories Corporate card usage Easy access to T&E reports and data Automation of expense reporting and processing Consolidation of travel programs across the enterprise Compliance to travel policies Establish T&E policies, processes and tools across the enterprise

Essential Important

Source: Aberdeen Group, 2007 Figure 6: Importance of Data in Accomplishing Key

T&E Related Activities

19% 21% 32% 40% 48% 52% 54% 46% 45% 46% 37% 39% 37% 34%

To improve the travel experience for corporate travelers

Benchmarking To update/improve travel policies For use in supplier negotiations Auditing purposes To monitor spending patterns and

trends

To track compliance to travel policies

Essential Important

(10)

Competitive Assessment

Survey respondents fell into one of three categories – Laggard, Industry Average, or Best in Class — based on their characteristics in four key categories.

Table 3: Competitive Framework

Laggards Average Best-in-class

31% 59% 84% 23% 48% 73% 17% 23% 52% 40% 62% 76% 24% 62% 89% 62% 73% 80% 64% 76% 86% 27% 50% 69% Organizational Structure Knowledge and Data

Consolidation of travel programs (e.g., centralize operations, travel management company) across the enterprise

Technology and/or Service Provider

Usage Process

Travel data reporting application Travel Management Company

Corporate card program

Data reporting and analytical capabilities

Online booking tool

Expense management solution

Establish T&E policies, processes and tools across the enterprise (i.e., across all sites)

Source: Aberdeen Group, 2007 It is clear that Best in Class enterprises are doing something differently. Table 3 helps to illustrate some of the differentiating factors. For example, Best in Class enterprises are more than three times as likely to have some sort of an expense management solution than Laggards.

The surprisingly low percentages for data reporting and analyticalcapabilities, which does not include simpler tools like Excel, reflects the somewhat lagging nature of analytics in the corporate travel world. Enterprises are looking for more dynamic tools that enable the interpretation of complex data and metrics into simple (visual) messages, while also offering the capability to dig into a more detailed level of data.

“At our company data was originally only used by the accounting dept for G/L purposes. With our current solution we can create reports for our VP’s, analyze trends and as a result realize savings.”

- Director of Procurement, Retail Services Group

(11)

Organizational Capabilities and Technology Enablers

The category of T&E management involves different functional groups because of the various activities that take place, including finance, procurement and of course, corporate travel. From the survey base, we can see that a large portion of responsibility for the various areas (reimbursement, corporate cards, auditing, etc) lies with the finance and account payable functions.

Figure 8: Responsibility and Oversight for T&E Processes

33% 11% 10% 54% 41% 43% 42% 57% 22% 10% 18% 22% 15% 40% 45% 15% 16% 7% 5% 8% 2% 5% Travel planning and booking management Expense Reporting and management Corporate card management Receipt management Employee reimbursement Auditing Corporate Travel Finance Procurement Accounts Payable Human Resources/ Administration

Source: Aberdeen Group, 2007 In terms of the various technologies that have been discussed here, the current usage of those mentioned in Figure 9 is fairly high with additional that are planning to use them within the next year. The technology around travel data reporting and expense management showed some significant interest with an additional 28% and 27% respectively citing plans to use such applications over the next year.

Figure 9: Current and Planned Usage of Technology and Service Providers

56% 54% 45% 22% 27% 11% 11% 28% 68% 73% Online Booking Tool Expense Management Solution Travel Management Company Corporate Card Program Travel Data Reporting Application Currently Use Others that Plan to Use over Next 12 Months

(12)

For enterprises with multiple sites or regional locations, we studied whether they were using multiple vendor solutions or a single solution environment across the enterprise. For example, take corporate card programs, 22% reported using multiple vendors currently, however, 51% plan to use a single vendor across the enterprise in the future. The area of expense management shows that 54% of survey respondents plan to use one vendor across the enterprises.

Figure 10: Using One Technology Vendor vs. Multiple Vendors Across All Sites 31% 20% 31% 20% 22% 45% 41% 48% 51% 54% Online Booking Tool Expense Management Solution Travel Management Company Travel Data Reporting Application Corporate Card Program Currently Use Multiple Vendors Across the Enterprise

Plan to Use One Vendor Across the Enterprise

Source: Aberdeen Group, 2007

“Currently, we are using spreadsheets and are evaluating solutions for expense-reporting, and considering a booking tool. Along with the efficiency, a big part of this decision is to give employees a better tool and to have a better database. Also, we want to get corporate agreements in the near future.”

- Vice President and Controller, Consumer Products Company

(13)

Chapter Three:

Required Actions

Whether a company is trying to move its T&E performance from “Laggard” to “Industry Average,” or “Industry Average” to “Best in Class,” the following actions will help spur the necessary performance improvements:

Laggard Steps to Success

Centralize and consolidate T&E programs. A central organization that oversees T&E

expenses and related processes not only makes the collection of data easier, but also the monitoring of compliance and communication of policy updates more effective.

Ensure that T&E policies are well established and communicated with close

monitoring and regular updates. While distributing soft copy policy manuals via intranet posting or email has some level of effectiveness, communication of policy at the point of purchase is significantly more effective.

Establish key performance metrics by analyzing and identifying the greatest

opportunities to generate cost savings. Equally important is developing strategies to improve the metrics. These metrics could be online adoption, restricted fare usage, advanced purchase, etc.

Utilize technology, such as online booking tools, corporate cards, expense

management solutions and reporting applications. These solutions offer significant opportunities for improvement, in terms of processing cost savings, efficiency of back-office operations and improving overall monitoring and level of visibility. Integration of these tools can produce even better results and should be taken into consideration early on.

Industry Average Steps to Success

Promote the usage of corporate cards and integrate with expense management

software. A corporate card is effective in capturing a higher percentage of spending data, and depending on the corporate card provider, there is access to fairly-detailed data (e.g., line-item charges for hotels). This type of data, when integrated with an expense management system, can pre-populate expense reports, making the process simpler and quicker for employees.

Leverage enhanced travel data for negotiations and compliance. Enhanced travel

data such as city pairs and trip legs or hotel folio detail can be used to strengthen negotiations with suppliers. Transaction details also allow you to more closely monitor travel policy compliance, such as mini-bar usage.

Work toward improving reporting and data analytics capabilities. Capturing T&E data and having the ability to analyze it is a key enabler to improving and understanding your enterprise T&E program. For example, more advanced enterprises use tools that allow them to analyze actual air spend per city pair, carrier, segment or other supplier. Also, the ability to perform “what if” scenarios with ease is a major step forward.

Best in Class Steps to Success

Implement closer integration of the various tools and data sources to benefit from more accurate and complete intelligence. Even though Best in Class enterprises have displayed the most sophistication in their integration, there is still room for improvement when it comes to aggregating the multiple sources of data.

(14)

Offer easy access to detailed data in an easily consumable format. Dashboards, for example, offer visual and easily understandable intelligence with the ability to dig deeper into the data if need be. Such capabilities allow for example, executives to monitor business unit spend and compare to budget or to view key performance metrics by business unit. • Work with procurement departments to develop a strategy to determine how

much value a current program (e.g., policy, booking, expense reporting, etc) is creating. For example, certain suppliers or policy changes may not add much value or savings. Having the ability to perform scenario analysis can significantly help strategic planning.

(15)

Featured Underwriters

This research report was made possible, in part, with the financial support of our under-writers. These individuals and organizations share Aberdeen’s vision of bringing fact based research to corporations worldwide at little or no cost. Underwriters have no editorial or research rights and the facts and analysis of this report remain an exclusive production and product of Aberdeen Group.

Carlson Wagonlit Travel (CWT) is the world’s second-largest travel management company and is present in nearly 150 countries and territories around the globe. In Asia Pacific, EMEA (Europe, Middle East & Africa) and Latin America, CWT holds the number one position in the marketplace; the company is a strong number two in North America. CWT’s range of online and full-service transaction services, coupled with its travel assistance and security offering, respond to the diversified needs of large corporations, small and medium-size companies, and government institutions. In addition, CWT’s expertise in travel management consulting and program optimization generates cost-savings for clients around the world.

For additional information on Carlson Wagonlit Travel (CWT):

Carlson Wagonlit Travel, 701 Carlson Parkway, MS 8208, Minneapolis, MN 55305 Doug Colglazier, Manager Sales Operations, 763-212-4596

dcolglazier@carlsonwagonlit.com www.carlsonwagonlit.com

Gelco provides services on-demand for global expense management with an array of payment, compliance and analytical services that effectively manage the expense cycle. Our solution results in little hands-on work throughout all levels of your business. This allows you to focus on what really matters: your organization. We choose to do one thing and do it well. We focus on expense management and form strong alliances to allow you to choose the right solutions for your business. Gelco helps organizations gain control over -- and insight into – the expense management lifecycle. Throughout, our consistent and reliable service makes champions of the people who hire us.

For additional information on Gelco Expense Management: 10700 Prairie Lakes Drive, Eden Prairie, MN 55344

866.964.7500 or gelcosales@gelco.com www.gelco.com

(16)

MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes more than 16 billion payments each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories.

For additional information on MasterCard: 2000 Purchase Street, Purchase, New York 10577-2509 914-249-2000

www.mastercardworldwide.com

Spendvision Holdings Ltd is one of the world’s leading expense management software companies. The Spendvision solution, Spendvision.com, substantially reduces the cost and improves the management control of handling low value, high volume transactions. Its technology enables businesses to map and aggregate transactions from a number of different billing sources, such as corporate and purchasing cards, fuel cards, personal expense claims and mobile phones.

For additional information on Spendvision: Level 3, The Arena, 24 Southwark Bridge Road, London +44 (207) 401 0154 or info@spendvision.com

(17)

TRX is a global technology company. We develop and host software applications that process complex data records and automate manual processes, enabling clients to optimize performance and control costs. TRX travel data reporting solutions deliver actionable, predictive information to drive decision-making and help companies control costs. TRAVELTRAX, our latest technology innovation, simplifies the management of corporate travel programs, providing travel managers with accurate, comprehensive, and timely reporting through a Web-based, intuitive data reporting tool. Visual data and diagnostics help corporations manage travel costs easily and more effectively, making it easy to control spending and maintain budgets, and save money through reduced travel expenses and better supplier contracts.

For additional information on TRX:

6 West Druid Hills Drive, Atlanta, Georgia 30329 (404) 929-6100 or farrell.harwood@trx.com

(18)

Appendix A:

Research Methodology

During May 2007, Aberdeen Group examined the use of T&E Technologies and Services, the strategies, and intentions of more than 435 enterprises in a diverse set of enterprises.

Responding retail executives completed an online survey that included questions designed to determine the following:

• The degree to which various T&E Technologies and Services are deployed in their operations. • The structure and effectiveness of these technologies and services.

• Current and planned strategies and actions around process, organization and technologies within T&E

Aberdeen supplemented this online survey effort with telephone interviews of select survey respondents, gathering additional information on T&E strategies, experiences, and results.

The study aimed to identify emerging best practices for Technology and Service usage and provide a framework by which readers could assess their own management capabilities.

Responding enterprises included the following:

Job title: C-Level executives (13%), Vice President (11%), Director (18%), Manager (48%), Staff (10%), Other (6%)

Job function: The research sample included respondents with the following job titles:

Procurement/Supply Chain (29%); Finance (27%); Corporate Travel (12%), HR and Administration (10%), IT (5%), Business Process Management (5%), Other (12%)

Industry: The research sample included respondents exclusively from retail industries. Financial Services (24%), Pharmaceuticals, Medical Devices and Life Sciences (21%), High Tech (12%), Consumer Products (15%), Telecom (8%), Distribution and Wholesale (7%), Other (13%).

Geography: The majority of respondents (70%) were from North America. Remaining

respondents were from Europe (17%) and the Asia-Pacific region (9%).

Company size: About 50% of respondents were from large enterprises (annual revenues above US$1 billion); 36% were from midsize enterprises (annual revenues between $50 million and $1 billion); and 14% of respondents were from small businesses (annual revenues of $50 million or less).

Solution providers recognized as sponsors of this report were solicited after the fact and had no substantive influence on the direction of the T&E Technologies and Services Report. Their sponsorship has made it possible for Aberdeen Group to make these findings available to readers at no charge.

(19)

Table 4: PACE Framework

PACE Key

Aberdeen applies a methodology to benchmark research that evaluates the business pressures, actions, capabilities, and enablers (PACE) that indicate corporate behavior in specific business processes. These terms are defined as follows:

Pressures — external forces that impact an organization’s market position, competitiveness, or

business operations (e.g., economic, political and regulatory, technology, changing customer preferences, competitive)

Actions — the strategic approaches that an organization takes in response to industry pressures

(e.g., align the corporate business model to leverage industry opportunities, such as product/service strategy, target markets, financial strategy, go-to-market, and sales strategy)

Capabilities — the business process competencies required to execute corporate strategy (e.g.,

skilled people, brand, market positioning, viable products/services, ecosystem partners, financing)

Enablers — the key functionality of technology solutions required to support the organization’s

enabling business practices (e.g., development platform, applications, network connectivity, user interface, training and support, partner interfaces, data cleansing, and management)

Source: Aberdeen Group, May 2007 Table 5: Maturity Framework

Maturity Framework Key

The Aberdeen Maturity Framework defines enterprises as falling into one of the following three levels of practices and performance:

Best in Class (20%) — T&E practices that are the best currently being employed and significantly

superior to the industry norm, and result in the top industry performance.

Industry norm (50%) — T&E practices that represent the average or norm, and result in average

industry performance.

Laggards (30%) — T&E practices that are significantly behind the average of the industry, and

result in below average performance In the following categories:

Process — What is the scope of process standardization? What is the efficiency and effectiveness

of this process?

Organization — How is your company currently organized to manage and optimize this particular

process?

Knowledge — What visibility do you have into key data and intelligence required to manage this

process?

Technology — What level of automation have you used to support this process? How is this

automation integrated and aligned?

Performance — What do you measure? How frequently? What’s your actual performance?

(20)

Table 6: Relationship between PACE and Competitive Framework

PACE and Competitive Framework How They Interact

Aberdeen research indicates that companies that identify the most impactful pressures and take the most transformational and effective actions are most likely to achieve superior performance. The level of competitive performance that a company achieves is strongly determined by the PACE choices that they make and how well they execute.

(21)

Appendix B:

Related Aberdeen Research

Related Aberdeen research that forms a companion or reference to this report includes: • Expense Management Automation, February 2007

• Global Commercial Payment Cards, March 2007

Information on these and any other Aberdeen publications can be found at www.aberdeen.com.

Author:Vishal Patel, Senior Research Analyst, Global Supply Management (vishal.patel@aberdeen.com) Founded in 1988, Aberdeen Group is the technology- driven research destination of choice for the global business executive. Aberdeen Group has over 100,000 research members in over 36 countries around the world that both participate in and direct the most comprehensive technology-driven value chain research in the market. Through its continued fact-based research, benchmarking, and actionable analysis, Aberdeen Group offers global business and technology executives a unique mix of actionable research, KPIs, tools, and services.

This document is the result of research performed by Aberdeen Group. Aberdeen Group believes its findings are objective and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.

(22)

The following acts are strictly prohibited:

Reproduction for Sale

Transmittal via the Internet

Copyright © 2007

Aberdeen

Group

, Inc. Boston, Massachusetts

Terms and Conditions

Upon receipt of this electronic report, it is understood that the user will and must fully comply with the terms of purchase as stipulated in the Purchase Agreement signed by the user or by an authorized representative of the user’s organization. Aberdeen has granted this client permission to post this report on its Web site.

This publication is protected by United States copyright laws and international treaties. Unless otherwise noted in the Purchase Agreement, the entire contents of this publication are copyrighted by Aberdeen Group, Inc., and may not be reproduced, stored in another retrieval system, or transmitted in any form or by any means without prior written consent of the publisher. Unauthorized reproduction or distribution of this publication, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent necessary to protect the rights of the publisher.

The trademarks and registered trademarks of the corporations mentioned in this publication are the property of their respective holders.

All information contained in this report is current as of publication date. Information contained in this publication has been obtained from sources Aberdeen believes to be reliable, but is not warranted by the publisher. Opinions reflect judgment at the time of publication and are subject to change without notice.

Usage Tips

Report viewing in this PDF format offers several benefits:

Table of Contents: A dynamic Table of Contents (TOC) helps you navigate through the report. Simply select “Show Bookmarks” from the “Windows” menu, or click on the bookmark icon (fourth icon from the left on the standard toolbar) to access this feature. The TOC is both expandable and collapsible; simply click on the plus sign to the left of the chapter titles listed in the TOC. This feature enables you to change your view of the TOC, depending on whether you would rather see an overview of the report or focus on any given chapter in greater depth.

Scroll Bar: Another online navigation feature can be accessed from the scroll bar to the right of your document window. By dragging the scroll bar, you can easily navigate through the entire document page by page. If you continue to press the mouse button while dragging the scroll bar, Acrobat Reader will list each page number as you scroll. This feature is helpful if you are searching for a specific page reference.

Figure

Updating...

Related subjects :