eSourcing is climbing the slope of enlightenment

Every year The Gartner is releasing “Hype Cycle” reports for different trendy IT models. With regard to SaaS, the Gartner has issued its report “Hype Cycle for Software as a Service (SaaS)” in August 2006 and reveals that eSourcing has reached maturity while eProcurement (Procurement Transaction Management) is still… “on the rise”:

Hype Cycle helps organizations discern the relative maturity and progression of various software-as-a-service technologies, with implications for a business model architecture and buying dynamics.

Current status for SaaS related to Sourcing and Procurement is as follow:

1. On the Rise

  • Procurement Transaction Management
  • Procurement Contract Management

2. At the Peak

  • Customer Interaction Hub

3. Sliding Into the Trough

  • Supply and Demand Chain Planning (SaaS)

4. Climbing the Slope of Enlightenment

  • E-Sourcing
  • Integration Service Providers

Read more: Go to Gartner

To understand properly this status and the definitions of the hype-cycle phases from the Gartner, here are some explainations:

Gartner’s definitions of the hype cycle stages

1. “On the rise”: The first phase of a Hype Cycle is the “technology trigger” or breakthrough, product launch or other event that generates significant press and interest.

2. “At the Peak”: In the next phase, a frenzy of publicity typically generates over-enthusiasm and unrealistic expectations. There may be some successful applications of a technology, but there are typically more failures.

3. “Trough of Disillusionment”: Technologies enter the “trough of disillusionment” because they fail to meet expectations and quickly become unfashionable. Consequently, the press usually abandons the topic and the technology.

4. “Slope of Enlightenment”: Although the press may have stopped covering the technology, some businesses continue through the “slope of enlightenment” and experiment to understand the benefits and practical application of the technology.

5. “Plateau of Productivity”: A technology reaches the “plateau of productivity” as the benefits of it become widely demonstrated and accepted. The technology becomes increasingly stable and evolves in second and third generations. The final height of the plateau varies according to whether the technology is broadly applicable or benefits only a niche market.

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