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Just the Facts – Building a Fact Based Business Case
 

Just the Facts – Building a Fact Based Business Case

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Everybody’s talking about Cloud this and Cloud that but most of the time it sounds like a marketing buzz phrase no different than “New and Improved”. This session will explain Cloud-Computing ...

Everybody’s talking about Cloud this and Cloud that but most of the time it sounds like a marketing buzz phrase no different than “New and Improved”. This session will explain Cloud-Computing basics, and explore why the Cloud is important to the Procurement, IT and Finance. The session will further examine the Commerce Cloud and how these three departments can partner to achieve improved collaboration, revenue, cost savings, and profits.

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  • Ariba’s On Demand applications and the Network generate measurable value to organizationsBuyer’s experience significant savings that fall right to the bottom lineSome savings are obvious (see above) but others less so. For example, a large Oil company was able to significantly cut inventory of replacement parts in its refineries due to the visibility into order status the network provided. This visibility not only enabled the managers to focus on the operations instead of whether a critical shipment was going to come, but also enabled them to reduce the excess inventory they needed as safety stock to ensure the refinery didn’t go downSuppliers experience savings through the automation of non-value added activities (like AR clerks having to call their customers each month to see when payments will be made)Suppliers also see top line growth from participation on the network – including net new business and increased wallet share with existing customers

Just the Facts – Building a Fact Based Business Case Just the Facts – Building a Fact Based Business Case Presentation Transcript

  • Just the Facts: Building a Fact-BasedBusiness Case for the CloudRichard VermeschDirection des Achats IndirectsAuchanAlexandra MonteiroSenior Manager, Value EngineeringAriba, Inc., An SAP Company© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEDelivering Measurable BenefitsValue to Companies of All Sizes, Industries, Regions2Supplier ValueBuyer ValueSourcingProcurementProcessAP ProcessComplianceWCM &Discount3-9%ProcessSavings$3-20Savings/Document1-8%SpendSavingsTotalSavingsFasterPaymentAR ProcessProcessingOrdersSales &MarketingIncreasedRevenue15-75%TimeSavings15-75%ProcessSavings5-32%RevenueIncreaseTotalSavingsSource: Ariba customer surveys and interviews© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEAribaCollaborative Value Chain – Direct, Indirect,Services3•Spend DataEnrichment•SpendAnalysis•ContractCollaboration•Authoring•Repository•RequisitionOwnership•CatalogCompliance•ContractCompliance•ApprovalWorkflow•POCollaboration•POTransmission•Goods &ServicesReceipt•InvoiceReceipt•InvoiceCompliance•InvoiceApproval•ExceptionWorkflow• AwarenessMarketing•LeadCollaboration•ProposalCollaboration•BiddingOpportunity•ContractCollaboration• ContractRepository•CatalogCollaboration•CatalogSyndication•RequisitionCollaboration•SpecificationNegotiation•OrderCollaboration•OrderStatus•InvoiceDelivery•InvoiceCollaboration•Supplier Info;Performance Mgmt;Supplier Research•Company Profile Mgmt•Customer Account ManagementBuyer’s Processes: Analyze to PaySupplier’s Processes: Market to Cash•PaymentCollaboration•DiscountCollaboration•PaymentCollaboration•PaymentVisibility•WorkingCapitalCollaboration•Category /ProjectMgmt•RFI / RFP /AuctionCollaboration•SavingsTracking &Pipeline© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVESpeaker Bio• Alexandra MonteiroAlex leads Ariba’s Value Engineering team in Europe, a team focused onhelping companies quickly identify, enable and realise value throughcustom-tailored business enablement programmesSince joining Ariba in 2008, Alex has supported dozens of Ariba customersacross multiple industries to identify a deliver savings in their spendmanagement initiativesPrior to joining Ariba, Alex worked in various Buyer and Category Managerroles for Motorola, Inc.4 © 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEToday’s Business Challenges• You’ve heard it all before5• “New” challenges go further:...Reduce your costs......Do more with thesame people......Manage our supplyrisk......Take costs out...andmake sure they stay out......Do more, not with the sameresources but fewer...... Reduce our supplyrisk despite macroeconomic conditions …© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEToday’s Business ChallengesWhat does this mean?• Our starting point isn’t zero6• By their nature, theseprojects becomemore complex• Future gains will comefrom looking acrossthe supply© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEBuilding a Business Case• Unlock the core7• Identify value levers• Determine the size of the prize• Gear up for success© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEBuilding a Business CaseUnlock the Core8Procurement Finance• Negotiation• Compliance• Process Control• Visibility• …etc…• Understand the Contrasting Objectives• Speed• Visibility• Cost• Control• ...etc...© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEBuilding a Business CaseIdentifying your Value Levers9AnalyzeSpendSource Contracts ProcureInvoice &PayManageIdentifying Value Realizing ValueValue Lever DescriptionPrice ReductionSavings tied directly to better sourcing practices and competitive bid process.Translates directly into per-unit cost savings.Spend ComplianceSavings associated with the elimination of “maverick” spend and directly tied to %spend under management (incentives, preferred pricing, etc.)Process ImprovementSavings from removing process costs, including people, paper, time, 3rd partyfees, legacy technology or rebates, P-card optimization, redundant work, etc.Cash Management Capture funds through optimization of early payment discounts and DPO.© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEBuilding a Business CaseDetermine the size of the prize10Apply Savings %DetermineBusiness CaseIdentifyOpportunity SizeSpend considerations:• % appropriate for tools• % under management• % strategic vs tactical• % already through e-tools• …etc…ROI / TCO considerations:• Ramp rate for channeling spend• Software Investment Costs• Implementation Costs (internaland external)• Change Management Costs• 3rd Party Costs• …etc…© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVESuccessPlanBuilding a Business CaseGear up for success: Your internal organisation11BusinessCase• The hard numbers• Costs, benefits and key KPIs• Hard business logic• Holistic plan to realize thebusiness case• Considers all dimensions• People & organization• Policy & process• Performance metrics• Systems & technology© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVEBuilding a Business CaseGear up for success: your external organisation• Put value firstUnderstand the value propositionfor your supply base12• Secure your successCompliance, Communication, Change• Build a wave plan forenablement© 2013 Ariba, Inc. All rights reserved.
  • #AribaLIVECritical Success Factors• How do you know your business case will lead to success?13 You have identified clear ROI# You get the green light for funding You have established delivery milestones aligned to benefits andbusiness need You have support from all relevant parts of the organisation Procurement and AP aligned to drive program and sustain the benefit Commitment to drive automation across supply base Commitment to mandate or motivate buyers to comply Technical resources available to support integration and dataextraction/loading© 2013 Ariba, Inc. All rights reserved.
  • Questions?
  • #AribaLIVEPlease Complete Session Survey© 2013 Ariba, Inc. All rights reserved.15Find Sessionin ScheduleClickChoose oneRateSessionThank you for joining usClick Survey andSelect BreakoutSession Survey