Sourcing and Procurement Excellence in the Networked Economysig.org/docs2/S28_Sourcing_and_Procurement... · Sourcing and Procurement Excellence in the Networked Economy Sundar Kamak,

Sourcing and Procurement

Excellence in the Networked

Economy

CA Technologies, Inc.

Richard LazarraDirector IT

Ariba, an SAP Company

Sundar KamakVice-President, Solutions Marketing

www.sig.org/eval

Sourcing and Procurement Excellence in the Networked

Economy

Sundar Kamak, Vice-President, Solutions Marketing, Ariba, an SAP Company

Richard Lazarra, Director IT, CA Technologies, Inc.

Global Executive Summit | Huntington Beach, CA | Oct 28, 2015

© 2015 SAP AG. All rights reserved. 3

We are witnessing an unprecedented pace of change…

An emerging

middle class

growing to 5

billion

will strain already

diminishing

resources

1 billion

people in

social

networks

will rewire

business and

personal

boundaries

75 billion

connected

devices by

2020

will create a

universe of

intelligence

everywhere

Data doubling

every 18

months

will create new

opportunities

and risks for

value creation

New,

disruptive

business

models

will accelerate

change and

innovation

Millennial Class

will transform

customer

demands and the

workplace

75%+ of new

enterprise IT

spend

will be cloud-

based or hybrid

by 2016

© 2015 Ariba – an SAP company. All rights reserved. 4Public

Changing business environment increases pressure on

companies

Increasing Globalization

• Expansion into new markets

• Global process

standardization

• International supply chains

• Increased off/near shoring

Economic Volatility

• Volatility in markets

• Decreased stock valuation

• Slow economic growth

• High expense ratio

More Competition

• Pricing pressures

• New sources of competition

• Decreased budgets and

spending

Greater Risk

• Supply chain disruption

• Financial risk and fraud

• Commodity risk

Accelerating Technological

Change

• Changing business models

• Faster innovation cycles

• Expanding partnerships and

channels

• Leveraging big data for decisions

Regulatory Changes

• Increasing disclosure

requirements

• Country-specific regulations

• Industry-specific disclosures


Businesses can no longer afford the costs of collaboration

inefficiencies

Paper Based

Transactions

Leakage

Of Value

Too Many

Exceptions

Lack Of Visibility Into

Spend By Category

“15% of invoices

have exceptions

adding 6.6 days

to the cycle.”

- TAPN, 2010

“$4.6 million in

contract leakage

per billion in

spend on

average.”

- The Hackett Group,

2012

“50% of

prenegotiated

discounts are

never captured.”

- Aberdeen, 2012

“Companies are

losing $260 billions

each year due to a

pervasive inability to

organize and analyze

spend data.” Aberdeen, 2010

90% of companies

still use spreadsheets

application as their

primary analysis tool.

- Aberdeen, 2010

“Nearly 77% of all

incoming invoices

are still paper

based.”

- Aberdeen, 2012

“70% of payment

is still handled via

paper checks”

- 2013 AFP Electronic

Payments Survey

(1) Basex Research

Collaboration inefficiencies cost companies $650B (1)

annually


Business Networks simplify business collaboration

YOUR TRADING

PARTNERS

Business Networks

Discover

• New trading partners and

communities

• New staffing, contingent

labor or goods and services

• New business opportunities

Connect

• Trading partners anytime, anywhere

• Any device, back-end system and level of technical ability

Collaborate

• Comprehensive set of

inter-company

collaboration processes

• Any commerce category

and/or spend type

Gain Insights

• Unique analytics and

benchmarking data

• Real-time alerts and

notifications

• 3rd party data, risk and

insurance information

YOUR SYSTEMS

6© 2015 Ariba – an SAP company. All rights reserved.

Your

Company


And drive transformation in many areas . . . .

Product

Innovation

Market

Expansion

Working

Capital

Mgmt

CSR /

Regulatory

Compliance


Supply-side ValueBuy-side Value

Sourcing

Req to PO

Invoice

Process

Complianc

e

WCM &

Discount

3-9%

Process

Savings

$3-20

Savings/

Document

1-8%

Spend

Savings

Faster

Payment

AR Process

Processing

Orders

Sales &

Marketing

Increased

Revenue

15-75%

Time

Savings

15-75%

Process

Savings

5-32%

Revenue

Increase

Source: Ariba Value Engineering Account Engagements and Benchmarking Studies

Network Collaboration – Drives Buyer and Seller ValueDelivers measurable benefits to both sides of the equation


Ariba Connects You to the Digital Economy

BUYERS SUPPLIERS

COMPREHENSIVE

INTELLIGENT.

OPENGLOBAL

UNMATCHED

SERVICES

TRUSTED/

SECURE

.

PARTNERS

LOGISTICS

PROVIDERSFINANCIALSERVICES

https://invis.io/FG4BOOEVZ


SAP is building on 42+ years of heritage in solving internal company

problems by expanding into business-to-business collaboration

Across 25

INDUSTRIES

253,000

CUSTOMERS

40+ MILLION

On-premise users

74%

in 180

COUNTRIES

35+ MILLION

Cloud Users

2+ MILLION

Ecosystem

consultants

of the world business transactions

are processed by SAP

$USD 930B In annual

commerce

106+ MILLION

business documents

over 20,000 business

categories

1.8+ MILLION

companies world wide

Over $USD 14B investment by SAP

over the past 3 years

Over 76% of the Global 2000 use Ariba Business

Network

Sourcing and Procurement Excellence in the Networked EconomyRich Lazzara, Director IT, CA Technologies, Inc.

@rplazz

October 28, 2015


Topics

Background

Executive Challenges

Program Objectives

Key Decisions along the Ariba Journey

CA / Ariba Global Footprint

Benefits of Ariba

Lessons Learned

Q&A

CA Technologies


Background

CA Technologies

$4.5B software company headquartered in New York

13,000 employees

SAP and Ariba are a strategic part of our IT ecosystem

SAP ECC / SRM Shop

Running “hybrid” SRM / Ariba Solution

Team Responsibilities

All Procurement functions plus Asset Management and Travel

Mobility and UX Improvement overall

CA Technologies


Executive Challenges

Drive Innovation at CA Technologies

• Think like a “Chief Integration Officer”

• Build a trusting relationship between IT and the business by delivering

innovation

Improve the Procure-To-Pay user experience

• Provide a simple user interface for requisitioning goods and services

• Untether the work force for frequently requested tasks

Build a global footprint and scale to support worldwide operations

• Consistent, integrated solution builds adoption and reduces IT burden

• Automation shifts focus to exception processing - deliver more innovation

CA Technologies


Program Objectives

More “Consumer Grade” User Interface

• Shopping and Catalog Management in the Cloud

• Offline email approval of Invoices and PO’s now, mobile apps coming

out

World-class procurement, contracts, spend analytics and

sourcing solutions

• Simplification of interactions with Suppliers

• Easily switch suppliers if desired

Access to a large population of Suppliers – the “Network”

• Enable business to focus on strategy vs. Supplier Enablement

• Opens up new sourcing opportunities

CA Technologies


Key Decision Points Along the CA / Ariba Journey

Calendar 2014

SAP Asia Pacific

DecOctSepAugJulJunAprMarFebJan May Nov

Ariba Invoice Pro for North America

APC/PO in NA

• Project started late January

2014

• Project go-live July 21, 2014

• Included APC/PO as part of larger

SAP Rollout in APAC

• APC/PO Started January 2014

• Project go-live August 18, 2014

Ariba APC/PO for EMEA

Ariba Upstream

• Project started October

2014

• Project go-live March 2015

• CPO wanted to replace existing

3rd party tools

• ”Knock out of the box” approach

• Idea to contract in under 3

months

• Project started December 2014

• Project go-live June 17, 2015

CA Technologies

• Goal: Improve the Shopping UX

• AribaLive! May 2013 in DC

• Full PTP Business Case Created

• Scope Adjusted Down to APC/PO

• Project Approved

• JPM gives notice September 2013

• Project started in October 2013

• APC/PO go-live March 10, 2014


CA Technologies utilizes procurement cloud solutions globally

Cover end-to-end source-to-pay process through each spend category

CA Technologies


The Case for Driving More Spend Through

Catalogs

CA Technologies


Ariba Procurement Content / PO Automation

CA Technologies

Benefits

• Consumer-grade shopping experience

• Easily switch suppliers

• Reduced supplier-related catalog issues

• Reduced Shopping Cart to PO cycle time from 6 to 2.5 days

• Reduced turn-around time to enable a catalog from 6 weeks to under 2

weeks

• Gain benefit of compliance with company pre-negotiated products and

pricing

• Eliminate point-to-point handling of transmission of POs

• Single cXML format interface for all purchase orders


Ariba Invoice Professional

Key Benefits

• No loss of functionality

• Foundation for a global procure-to-pay process

• Offline invoice approval

• Integrated procure-to-pay process

• High level of automation

• Lower error rate

• Achieved 92% electronic invoice submission rate in just six

months

• Compared to 86% JPM XIGN after 3+ years

2

0

CA Technologies


Ariba Collaborative Sourcing Solutions

Key Benefits

• Integrated data across sourcing, contracting, spend and supplier

• Increased spend visibility and analytics

• Cost neutral to replace existing solutions with Ariba upstream

modules

• Reduced cycle time for contracting

• Document repository to support compliance with FATCA

• Suppliers now provide W8/W9 forms as part of the Registration Process

• Allowed for process improvements globally

• Introduction of the Supplier Risk Program (SRP) on a global basis

• A new Self-Service Supplier Registration Portal globally

• “Strategic” Sourcing

Sourcing, Contract Management, Spend Visibility Supplier Information & Performance Mgmt.

CA Technologies


Spend Visibility

Data Collection

• Data from backend SAP systems (PO’s and Invoices), plus legacy data

• Master data also needed

• Commodity Codes and Currency Exchange Rates from ECC

• Supplier, Cost Center and WBS information (some PO’s have WBS vs.

CC)

– Matching takes place between PO and Invoice – non-PO data is identified

Functionality

• Category groupings allow summary rollup view and drill down

• Pivot, Graph and Dashboard capabilities right in the platform

• Category cleanup is a work in progress

Best Practice – Get the data right before putting automation in place

CA Technologies


Spend Visibility

CA Technologies


Spend Visibility

CA Technologies


Spend Visibility

CA Technologies


Spend Visibility

CA Technologies


Lessons Learned

CA Technologies

Lesson / Suggestion Reason / Recommendation

Keep shoppers within the APC

Cloud

Punching out from APC to supplier site adds steps and reduces

functionality

Use ACS – Ariba Consulting

Services

Ensure Lead and product expert are the right fit for your organization

and project

Do complete PTP implementation

if possible

Staggered approach of APC/PO then Invoice-Pro caused rework

Start with Upstream before doing

Downstream modules if possible

Doing Downstream first led to technical complexity for onboarding

suppliers

Deployment Descriptions are

good, but…

If doing multiple modules at once or multiple regions, add time to the

plan

Strong partnerships are key –

With SAP and your business

partner

Worked with Chief Customer Office to escalate and expedite when

needed. Must have close relationship with business, co-locate if

needed


Thank you

Contact information:

Sundar Kamak

Global Vice President – Solutions Marketing

Ariba, an SAP Company

Email: [email protected]

Q&AContact information:

Richard Lazzara

Director, Information Technology CA Technologies |

One CA Plaza | Islandia, NY 11749 Email:

[email protected]

mailto:[email protected]

mailto:[email protected]

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Sourcing and Procurement Excellence in the Networked

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Sundar KamakGlobal Vice President –

Solutions Marketing

Ariba, an SAP [email protected]

Richard Lazzara

Director, Information TechnologyCA Technologies [email protected]

Documents

Sourcing and Procurement Excellence in the Networked Economysig.org/docs2/S28_Sourcing_and_Procurement... · Sourcing and Procurement Excellence in the Networked Economy Sundar Kamak,