The Rise of the Networked Enterprise 77% increased access to 63% increased 55% knowledge marketing better effectiveness 41% information sharing 43% improved greater collaboration market across silos 24% share increased revenue 8% higher margins “ Networked enterprises are 50% more likely to have increased sales, higher profit margins, gain market share, and be a market leader. ” Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” Survey of 4,394 executives. December 20102 Ariba, Inc. 2012 All rights reserved.
Process Automation AND Performance Measurement • Process automation gives top performing organizations a 92% cost savings advantage • However, technology alone is not a silver bullet… “If you do not re-engineer and measure your processes you will fail to gain the full benefits of the technology.” – Pierre Mitchell, The Hackett Group3 Ariba, Inc. 2012 All rights reserved.
Four Performance Pillars to Manage Cash Better-- $15 Million for Every $1 Billion in Spend CHALLENGE OPPORTUNITY “ Process Efficiency “ 1-for-1 60-80% cost take out – or about $1 million for average to large Payables organizations “ Discount Capture “ 2-for-1 $2 Million in discount savings for “ every $1 Billion in discountable spend Contract Compliance “ 9-for-1 $9 Million in contract leakage savings for “ every $1 Billion in spend under contract Working Capital “ 3-for-1 $2.74 Million in working capital impact for 1 days of payables extension (DPO) on every $1 Billion in spend Source: The Hackett Group 2011 P2P Benchmark Report and Ariba Results5 Ariba, Inc. 2012 All rights reserved.
Performance Management Visual Management & Metrics Performance DISCIPLINE management enables Tiered Accountability sustained service & Comms Cells improvement and PRACTICE consistent focus on excellent everyday Leader Standard Work support services & Gemba TOOLS Problem Solving & Root Causing9