Sunday 18 March 2018

You know ERP, CRM, HCM? Here comes BSM – Business Spend Management

Recalling the history of TLAs in enterprise IT – ERP, CRM, HCM – Coupa CEO Rob Bernshteyn kicks off a 3-part introduction of BSM – Business Spend Management

The business world seems to love acronyms, maybe nowhere more than in the technology industry, and maybe none so much as the TLA (three letter acronym).

Acronyms certainly enhance recall, and they save time, space and effort in communication. Of course, they are shorthand for the name of something and as such, they help define it, creating a common understanding such that people can connect mentally to the thing without having to describe all of it.

If you can give something a strong, meaningful name, and encode it into an acronym that stands the test of time, it’s a good indicator that you’ve done something powerful in your industry. That’s why, as I’ll explain in this three-part series, we at Coupa are laying claim to the acronym BSM, for Business Spend Management.

It’s time for our category of information technology, and the work of professionals in this field, to have a name and a TLA that can stand together with ERP (Enterprise Resource Planning), CRM(Customer Relationship Management), and HCM (Human Capital Management). When you add BSM to the other three, these functions collectively and exhaustively address the core operating processes of every organization.

Not just BS software marketing

Is this just Bullsh*t Software Marketing? No, but one could argue that it used to be. BSM was previously claimed by vendors of Business Service Management:

A category of IT operations management software products that dynamically links the availability and performance events from underlying IT infrastructure and application components to the business-oriented IT services that enable business processes.

In March of 2016, Analyst firm Gartner pronounced business service management dead, stating that it:

… has not delivered on its promises of prioritizing, communicating and focusing I&O (Infrastructure and Operations) resources on the functions critical to the business.

I’m not here to dance on the grave of business service management, but there is a point to be made. The promise of business service management was unkeepable. No single solution could keep up with the pace of technology change and monitor and manage all the data and technology in the enterprise, and no TLA could change that.

But, TLAs such as ERP, CRM, and HCM have achieved lasting traction in the marketplace because they accurately represent marketplace needs and solutions that deliver real value. These names matter because they encourage companies to think bigger and more holistically about their processes, and practitioners to think bigger and more broadly about their roles within them.

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Article Credit: Diginomica

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source http://news.statii.co.uk/you-know-erp-crm-hcm-here-comes-bsm-business-spend-management/

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