ePurchasing Technology Drives New Economics for Commerce - Forrester

ePurchasingTechnology DrivesNew Economics ForCommerce

New developments inePurchasing technologycan help Procurementgo beyond the lowhanging fruit

AgendaProcurement leaders face conflicting priorities in 2012Four trends drive business technology developmentsWe’re beginning to see their impact on ePurchasingSummary recommendations

What forces will shape your world in 2020? 2010 2014 2016 2020

Global disruptions have becomecommon news

Sourcing’s Goals Pull Us In Two Directions • Number of Rationalize Expand Suppliers• Aggregate demand to get • Expand the bidder pool to economies of scale Costs increase competition• Dump financially weak • Diversify, multi-source to vendors Risk reduce over-dependence• Focus vendor management’s • Introduce new blood to attention Performance combat complacency• Create tight strategic • Search for new sources, partnerships Innovation anywhere in the world Answer: Do Both – create tighter partnerships in some areas while increasing competition in others

AgendaProcurement faces conflicting priorities in 2012Four trends drive business technology developmentsWe’re beginning to see their impact on ePurchasingSummary recommendations

Forrester has identified four broad themesdriving business technology trends• Empowered employees and customers energize leading organizations.• Everything-as-a-service (XaaS) offers new technology acquisition and consumption options.• The App Internet connects mobile users to near-limitless information.• Big data extends our digital horizon and changes the way we do business.

CIOs need shift budget from steady-stateto new initiatives May 2011 “Forrsights: The Software Market In Transformation, 2011 And Beyond”

Businesses cannot, and should not, get alltheir technology innovation from one source Self- iApps provisioned Key business New supplier applications search Core Collaboration Systems SRPM ERP eSourcing

AgendaProcurement faces conflicting priorities in 2012Four trends drive business technology developmentsWe’re beginning to see their impact on ePurchasingSummary recommendations

Most enterprises still have a buyer-centric approach to ePurchasingPtolemy

The network-centric approach is betterCopernicus

But a universe of discrete networks is costly for suppliers, and less effective for buyersGallileo

We’re now seeing the emergence of globalcommunities of buyers and sellers• Scale and reach to be effective• Unstructured collaboration, not merely transactions• Sharing information with your peers

Important management information isdistributed across multiple silos ERP eSourcing Contracts EDI

AgendaProcurement faces conflicting priorities in 2012Four trends drive business technology developmentsWe’re beginning to see their impact on ePurchasingSummary & recommendations

How can you make use of theseforms of unstructured collaboration?• Idea forums that include key suppliers • Users’ problems, suppliers’ ideas, voting on which ones to take forward, workspace for project teams to share information• Engineering change process • Consider the impact of proposed modifications before they are put into effect• Community performance rating • Aggregate objective and subjective data from your peers to evaluate prospective suppliers• Urgent problem resolution • Creation of ad hoc teams, live web conferencing, asynchronous messaging

What can you do now? If you’re just starting out… If you’re further along… • Don’t wait until you have a • Use technology to work disaster to create the even more closely with business case for SRPM your key suppliers • Convert Ptolemaic or • Focus SRPM attention Copernican supplier based on importance, not collaboration initiatives into just spend community programs • Automate analytics • Start somewhere • Manage improvement important, but doable processes

Lutz Peichert+49 69959 29846lpeichert@forrester.comwww.forrester.comTHANK YOU

ePurchasing Technology Drives New Economics for Commerce - Forrester

by Ariba on Jun 05, 2012

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ePurchasing Technology Drives New Economics for Commerce - Forrester Presentation Transcript