E-Procurement – Creating a Compelling Business Case for Growth

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As you explore whether e-procurement will help your business, the first step is to create a business case to ensure success in your selection of a technology partner. Join Ingersol Rand as they share …

As you explore whether e-procurement will help your business, the first step is to create a business case to ensure success in your selection of a technology partner. Join Ingersol Rand as they share their story and expertise on how they began the journey.

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  • 1. E-Procurement – Creating a Compelling Business Case for Growth Alex Mesanza, Director, Global Indirect Procurement, Ingersoll Rand @alexmesanza #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
  • 2. Do Your Homework… • • • • • • • 2 Meet with Procurement and Payables…and LISTEN! Create a current state map identifying PEOPLE, PROCESSES, and TECHNOLOGY Identify key pain points within each area If you are new to Procure-to-Pay cycle and the associated financial implications (Tax, GL, etc.)…GET HELP! Are there any major IT initiatives that conflict with or complement this? Is there anyone else doing this in the company? Has it been attempted before? © 2014 Ariba – an SAP company. All rights reserved.
  • 3. Assess Timing/Maturity/Readiness Consider… • Executive sponsorship/Champion (with clout, preferably!) • Desired timeline…vs. Reality • Resource availability and experience (specifically around systems implementation) • • • 3 – identify top talent from the “geek squad” (and I mean that in a very affectionate way!) Policies and procedures – get ready to make it official and enforceable Change management appetite – early start + constant reminders = better chances (not great…just better!) IT support/collaboration track record with other organizations – does everyone play nice in the school yard? © 2014 Ariba – an SAP company. All rights reserved.
  • 4. Gather Facts… • Spend analysis with multiple views (by supplier, by region, by • • • • • • 4 commodity, etc.) Invoice processing analysis, that ties to average payment terms Volume of paper invoices Evidence of rogue spend (with cost variance impact – hard to get, but powerful information) Invoice hold resolution cycle time Volume of manual POs being generated Industry benchmarks and results from other companies © 2014 Ariba – an SAP company. All rights reserved.
  • 5. Build the Pitch… • • • • • • • • • 5 Define current state Define future state (best practice, best-in-class, what “good” looks like, etc.) Formal RFP process definition Business resource requirements Specify IT support needed and duration (you will get a bill at the end!) Clear accountability and governance Monitoring cadence (KPIs, leadership review) Communication/Change Management Plan Contingency Plan © 2014 Ariba – an SAP company. All rights reserved.
  • 6. Ready…Set…Go! • • • • • • • • Successful Kick-Off is absolutely essential – do it face-to-face (put it in your budget!) Come prepared! Gather key questions and distribute list to Ariba team If offshoring technical work…have resources on standby to answer questions “Parking Lot” is Ok…as long as most (preferably all) issues are addressed Build a list of high-level critical path items and get resolution quick! Define roles and responsibilities, identify coverage gaps, and build a plan to close them! While implementation is top priority, don’t lose focus of enablement plan discussions – this will require a completely different set of characters! Share business case and spend time brainstorming on how to tie benefits to the business case (specific data points, baselining, etc.) "Expect the best, plan for the worst, and prepare to be surprised." - Denis Waitley 6 © 2014 Ariba – an SAP company. All rights reserved.
  • 7. Implementation Challenges at Ingersoll Rand • • IT did not agree with the design of Oracle adapter provided by Ariba – we had to build our own from the ground up Tight timeline driven by a larger Oracle R12 roll-out in Feb 2014. Ariba: “It takes 16 weeks with OUR adapter…what are you smoking?!”; IR: “Ok, but we have to do it in 13 [puff…puff]”; Ariba: [Gasp] [Grrr][Ugh]…No problem [Gasp][Grrr][Ugh] • • • • 7 Unable to lock-in dedicated resources – had to beg, borrow, steal Made concessions and decided to go live with only one supplier initially – Staples (learned a lot, minimal risk, high adoption) As IT got closer to Oracle R12 go-live, we knew focus would drop sharply Late start on change management and training plan due to heavy focus on adapter development, testing, etc… © 2014 Ariba – an SAP company. All rights reserved.
  • 8. Result • • • Implemented solution in 12 weeks…with our own Fusion middleware adapter, custom-fit for IR’s architecture Staples in place as a punch-out catalog, with minor data transfer issues which were quickly identified and fixed Delivered targeted training to top requesters of office supplies, within days of go-live (not the best approach, but got the job done!) Lessons Learned • • • • • 8 © 2014 Ariba – an SAP company. All rights reserved. Don’t assume you know what stakeholders want to see…ask them! Allocate enough resources to develop change management and training strategy – it’s more than just pretty process diagrams and screenshots! Don’t underestimate IT’s influence in the solution design Don’t underestimate the challenges of bringing two companies to deliver a product – each side needs to work through different styles, approach, communication, etc… Think about “The Day After”. Transition from implementation to ongoing support is more complex than expected