SciQuest Global Company Profile

Background

Overview

SciQuest, established in 1995, is a leading provider of cloud-based business automation solutions for spend management. The company specializes in offering comprehensive Source-to-Pay (S2P) solutions that streamline procurement processes for organizations across various industries. In 2017, SciQuest rebranded itself as JAGGAER to reflect its expanded focus and innovative approach to spend management.

Mission and Vision

JAGGAER's mission is to deliver user-friendly, adaptable, and comprehensive spend management solutions that empower organizations to optimize their procurement processes, achieve cost savings, and drive value across their supply chains. The company's vision is to be the world's most comprehensive Source-to-Pay solutions provider, enabling seamless commerce between businesses globally.

Primary Area of Focus

JAGGAER focuses on providing end-to-end spend management solutions, encompassing sourcing, procurement, contract management, supplier management, and spend analytics. The company's solutions are designed to enhance procurement efficiency, compliance, and strategic sourcing capabilities for organizations of all sizes.

Industry Significance

As a pioneer in the eProcurement space, JAGGAER has played a significant role in transforming procurement processes through technology. The company's solutions are trusted by numerous organizations worldwide, including leading higher education institutions, government agencies, and commercial enterprises. JAGGAER's commitment to innovation and customer-centric solutions has solidified its position as a key player in the spend management industry.

Key Strategic Focus

Core Objectives

Innovation in Spend Management: Continuously developing and enhancing solutions to meet the evolving needs of procurement professionals.

Global Expansion: Extending the reach of JAGGAER's solutions to a broader international market.

Customer Success: Ensuring that clients achieve measurable improvements in procurement efficiency and cost savings.

Specific Areas of Specialization

Higher Education: Providing tailored solutions to meet the unique procurement needs of academic institutions.

Government: Offering compliant and efficient procurement solutions for public sector organizations.

Life Sciences and Pharmaceuticals: Delivering specialized tools to manage complex procurement processes in regulated industries.

Key Technologies Utilized

Cloud-Based Platforms: Enabling scalable and accessible procurement solutions.

Spend Analytics: Providing insights to drive strategic sourcing decisions.

Supplier Management Tools: Facilitating effective supplier collaboration and performance monitoring.

Primary Markets Targeted

Higher Education Institutions: Universities and colleges seeking to optimize procurement processes.

Government Agencies: Federal, state, and local entities requiring compliant procurement solutions.

Commercial Enterprises: Businesses across various industries aiming to enhance procurement efficiency.

Financials and Funding

Funding History

Initial Public Offering (IPO): SciQuest went public in 1999, raising approximately $2 billion in market capitalization.

Acquisition by Accel-KKR: In July 2016, SciQuest was acquired by Accel-KKR, a technology-focused private equity firm, in a transaction valued at $509 million.

Rebranding to JAGGAER: Following the acquisition, SciQuest rebranded itself as JAGGAER in 2017 to reflect its expanded focus and innovative approach to spend management.

Utilization of Capital

The capital from the acquisition and subsequent funding has been utilized to:

Enhance Product Development: Investing in the development of new features and capabilities for the JAGGAER platform.

Expand Market Reach: Increasing global presence and entering new market segments.

Strengthen Customer Support: Improving services and support structures to ensure customer success.

Pipeline Development

Key Pipeline Candidates

JAGGAER's pipeline includes:

JAGGAER ONE Platform: A unified platform that integrates all spend management solutions, providing a seamless user experience.

Supplier Management Enhancements: Tools designed to improve supplier collaboration and performance monitoring.

Spend Analytics Tools: Advanced analytics capabilities to provide deeper insights into procurement data.

Stages of Development

These pipeline candidates are in various stages of development, with ongoing efforts to enhance and expand their functionalities to meet the evolving needs of procurement professionals.

Target Conditions

The developments aim to address challenges in procurement efficiency, supplier collaboration, and spend visibility across industries such as higher education, government, and commercial enterprises.

Anticipated Milestones

Platform Launches: Scheduled releases of new features and integrations within the JAGGAER ONE platform.

Customer Adoption: Targeting increased adoption rates among existing and new customers.

Market Expansion: Entering new geographic regions and industry sectors.

Technological Platform and Innovation

Proprietary Technologies

JAGGAER ONE Platform: An integrated suite offering sourcing, procurement, contract management, supplier management, and spend analytics.

Significant Scientific Methods

Spend Analytics: Utilizing data analysis techniques to provide actionable insights into procurement spending patterns.

Supplier Performance Monitoring: Employing metrics and KPIs to assess and improve supplier performance.

Leadership Team

Key Executives

Andy Hovancik: Chief Executive Officer (CEO)

Professional Background: Andy Hovancik has extensive experience in the software and technology sectors, with a focus on enterprise solutions.

Contributions: Under his leadership, JAGGAER has continued to innovate and expand its offerings in the spend management space.

Leadership Changes

Appointment of CEO: In June 2023, Andy Hovancik was appointed as the CEO of JAGGAER, succeeding Jim Bureau.

Competitor Profile

Market Insights and Dynamics

The spend management and procurement technology market is characterized by rapid innovation and a growing emphasis on digital transformation. Organizations are increasingly seeking solutions that offer end-to-end capabilities, scalability, and integration with existing systems.

Competitor Analysis

JAGGAER faces competition from several key players in the market, including:

SAP Ariba: A global leader in procurement and supply chain management solutions.

Coupa: Offers a comprehensive spend management platform with a focus on user experience.

Ivalua: Provides a global procurement platform with strong supplier management features.

GEP: Delivers procurement solutions with a focus on strategic sourcing and supplier collaboration.

Oracle: Offers procurement solutions as part of its broader enterprise resource planning (ERP) suite.

Strategic Collaborations and Partnerships

JAGGAER has formed strategic partnerships to enhance its offerings, including:

Acquisition of Pool4Tool: In June 2017, JAGGAER acquired Pool4Tool, a European direct materials procurement specialist, to expand its direct materials procurement capabilities.

Acquisition of BravoSolution: In December 2017, JAGGAER acquired BravoSolution, a spend management company, to strengthen its position in the market.

Operational Insights

JAGGAER's comprehensive suite of solutions and strategic acquisitions have positioned it as a strong competitor in the spend management market, enabling the company to offer end-to-end procurement solutions that cater to a diverse client base.

Strategic Opportunities and Future Directions

JAGGAER aims to leverage its integrated platform to: