Magic Quadrants offer visual snapshots, in-depth analyses, and actionable advice that provide insight into a market's direction, maturity, and participants. They provide a graphical comparative positioning of technology and service providers where market growth is high and provider differentiation is distinct. Evaluation criteria depict markets in the middle phases of their life cycle by using a two-dimensional matrix that evaluates vendors based on their "Completeness of Vision" and "Ability to Execute."
Scanmarket was recognized in the 2022 Gartner Magic Quadrant for Contract Lifecycle Management as a "Niche Player." Niche Players do well in a segment of a market, or they have a limited ability to innovate or outperform other vendors in the wider market. There are pros and cons to each quadrant, and a few of the cons for Scanmarket are no longer relevant due to acquisitions that have expanded our capabilities.
In January of 2021, Scanmarket acquired MIA Data, an analytics technology company specializing in AI and machine learning applied to digitalization of business procurement processes. As Scanmarket continues to evolve with additional analytics capabilities, MIA Data will play an integral role in implementing its scalable analytics capabilities across the Scanmarket platform.
Scanmarket is a niche player with focus on providing source-to-contract (S2C) solutions to the Procurement market, and therefore addressing CLM from primarily a procurement perspective. Third-party risk management was released in the spring of 2022. Best-of-Breed vendors like Scanmarket tend to be considered niche players as they focus on fewer capabilities, but widen specific functionalities and fully understand users' needs. On the other hand, full-suite players tend to score higher in as they offer more core capabilities but don’t have depth of functionality.
Scanmarket was acquired by Unit4 in June of 2022. Unit4 is a leader in enterprise cloud applications for mid-market people-centric organizations. Founded in 1980, Unit4 has approximately 3000 employees with a significant focus on R&D. Scanmarket’s suite of solutions extends Unit4’s transactional procurement functionality (P2P) with the acquisition bringing additional capabilities in strategic procurement including sourcing, spend analytics, supplier management, and contract lifecycle management. This deal marks a significant investment in the company’s ERP solution and will enable customers to gain deeper insights into their spend, manage suppliers and contracts, and realize savings on procurement with an enhanced customer experience.
The Scanmarket product evaluated for this report was the CLM solution by Symfact acquired in October of 2021. Scanmarket has approximately 200 clients live on the current version of its CLM, and 350 across all versions with a fairly even distribution of end users in legal, procurement, sales, and a high proportion of its customers are SMBs. Its top three verticals are manufacturing, wholesale trade, and banking/securities.
Scanmarket scores in the middle 50% of vendors for the Presignature (Counterparty-Generated Contracts) and Full Life Cycle use cases, and in the bottom 25% for the remaining use cases. This is a result of mixed capability scores. Scanmarket’s biggest areas of opportunity are in reporting offering very few out-of-the-box reports. Other capabilities where Scanmarket scores below the market average include Contract Creation, Contract Search, and Contract Update/Renewal. However, Scanmarket scores the highest for Contract Request, Negotiation, Approval Workflow, and Contract Storage. Some of the functionality evaluated as part of this analysis requires the purchase of additional modules.
Medica is a good customer case story outlining how Parashift's IDP platform improved data processing and saved time and money. Other customer cases featuring Scanmarket's CLM solution include Hyster-Yale Group, Norquest College, Hirshmann Automotive, and FIFA. Learn more about all of Scanmarket's Customer Cases here, and download the full Magic Quadrant below.