Concept to Control How Berkshire Bank built an e-procurement machine that put their savings initiatives into overdrive
Today’s Session TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
Who We Are <ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>Rob Bernshteyn </li></ul><ul><li>CEO </li></ul>
About Us <ul><li>Empowering organizations to: </li></ul><ul><ul><li>Spend Less:  Reduce maverick spending by ~33%  </li></...
<ul><li>$2.7 billion in assets </li></ul><ul><li>Integrated insurance and wealth management ($650 million AUM)  </li></ul>...
Concept
Develop the Concept
Roundtable Discussion:  Concept What ideas and concepts are you considering achieve efficiency and control?  How are you w...
Plan
Putting A Plan in Place <ul><li>Get stakeholders involved, they will be more accepting of change and will help make it hap...
Putting A Plan in Place <ul><li>Understand user needs and identify requirements </li></ul><ul><ul><li>Vendor and contract ...
Putting A Plan in Place <ul><li>Conduct a vendor due diligence </li></ul><ul><ul><li>Submit an RFP, get a demo </li></ul><...
Roundtable Discussion:  Plan How are you making your concepts a reality? How are you engaging stakeholders in the planning...
Implement
Innovation Fuels Accelerated Implementation <ul><li>Implementation taking months –    not years like an on-premise solutio...
Why the “cloud”
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Clo...
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Dif...
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Dif...
Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Dif...
The Cloud is the Most Cost Effective Year 1 Year 2 Year 3 <ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul>...
Roundtable Discussion:  Implement How quickly can change happen at your organization? How do you work around those to get ...
Adoption
Users Drive Spend Visibility & Control <ul><li>If it’s not in the system, it’s not controllable </li></ul><ul><li>Drive us...
Roundtable Discussion:  Adoption Do you know how much of your spend is under management? What are some of the ways you hav...
Control
Gain Spend Visibility and Control <ul><li>100% of indirect spend – purchasing and expenses – visible and under control </l...
An Action Plan for Savings <ul><li>Increase control over company spending </li></ul><ul><li>Review and approve immediately...
Roundtable Discussion:  Control How do you get spend information? How are you delivering savings to your organization? Wha...
Your Ideas CAN Become a Reality! TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
<ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>[email_address]   </li></ul><ul><li>Rob Bernshteyn </li...
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Procurement Leaders Forum 2010 - Berkshire Bank - From Concept to Control

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  • Rob to open / introduce: Thank you for joining us and welcome to today’s roundtable session. Today we are going to provide you with some strategies and best practices that will help you take action on your ideas and concepts. We will start at developing your initial concept and walk you through the steps that will empower you to turn that concept into a high impact reality including how to create an effective plan, how to get that plan implemented and how to drive adoption throughout the organization.
  • Rob to introduce Dee and himself: I’m Rob Bernshteyn, CEO of Coupa Software and I will be leading today’s roundtable discussion. I’m very lucky to have with me Dee Harnish of Berkshire Bank. Dee joined Berkshire Bank to build their purchasing department. She is leading some very exciting efforts to completely transform the procurement function there and today we will discuss some of her experiences, as well as some of the things all of you are experiencing as heads of procurement in your organizations.
  • Rob to introduce and highlight some key points about Coupa.
  • Dee to introduce and provide some highlights about Berkshire Bank.
  • Dee to present: At Berkshire Bank, our concept was simple enough – to increase procurement efficiency and spend control. We made it our mission to: capture and analyze all of the Bank’s spend in a single database, control costs, improve performance, reduce procurement processing time, gain spend visibility, enforce policies, reduce paper and manage risks. But just saying “increase efficiency and control” is not enough to really move the project forward.
  • Dee to present: So we developed the concept more. We thought about how we would want and need to control spend and came up with 4 areas that would solidify our concept a bit more so we could start developing an actionable plan. We knew that to get spend under control we needed to have something in place that was: Accessible: All branches and departments must be able to access and must leverage the same processes for efficiency and compliance, as well as the same suppliers in order to take advantage of negotiated prices and volume discounts Innovative: We knew we wanted something that was SaaS, cloud based since it is easier to implement and maintain (no hardware or software to buy), and we wanted to make sure the experience was something that users would already have some familiarity with (i.e. online shopping) in order to accelerate user adoptions Automated: This was key. We already had an archaic, manual process in place that we really wanted to move away from, so whatever we did it need to eliminate those paper based pains and ensure that all spend received the proper review and approval before anything is purchased Accurate: Having access to real-time data and being able to take immediate action to eliminate wasteful spend would also be important to help budget owners really make sure they stay on track and within spend targets.
  • Rob to lead roundtable discussion and provide Coupa point of view on developing a procurement transformation concept: At Coupa, we see many companies challenged with gaining control of spend. Our take is…. Roundtable seed questions: What ideas and concepts are you considering achieve efficiency and control? What challenges have you faced in developing your concept? How are you working around these challenges to get your concept off the ground? Now that we have our concept defined, let’s talk a bit about how to create a plan.
  • Dee to take over presentation: We knew it was essential to develop a plan if our concept had any shot at becoming reality, so we did three things to make that happen.
  • Dee presents: The first thing we did was created a steering committee that would be responsible for developing a plan that meets the needs and requirements of the organization as well as the end users. We wanted to ensure that anyone who would be impacted by the system would have their opinions heard and concerns addressed. Our steering committee consisted of representatives from various branches, IT, facilities and AP.
  • Dee presents: Once we had our steering committee assembled, they set out to start understanding user needs and put together a list of requirements. The steering committee made a point to not operate in a vacuum, they collaborate with users across the organization to get feedback on what’s working, what isn’t, how purchasing is a part of their day-to-day worlds. It was very interesting what we discovered… Armed with an aggregated list of needs and requirements, the steering committee then set out to prioritize the list so we could focus our efforts on the 80% that will make a real impact to the purchasing process.
  • Dee presents: When we had our requirements list together, we started our vendor evaluation process. We really took a hard look at a wide range of solutions, from your basic P2P systems to your more complex, full integrated spend management solutions. We looked at on-demand and on-premise solutions. Once our initial evaluation was complete, we then created a short list of 3 that included SpendMap, Ariba and Coupa. After we further vetted out the solutions, gave them a try in our environment and let users weigh in on their experiences, we selected Coupa Cloud Spend Management, which is delivered on-demand, in the cloud and provided a robust set of P2P functionality, workflow automation, dashboards and benchmarks and other innovations like expense management we hadn’t initially thought of, but will add even more value to what we are trying to accomplish.
  • Rob to lead roundtable discussion and provide Coupa point of view on putting a plan in place: Putting a plan in place is critical to the success of your initiative. We see many of our customers use their initial plan as a baseline to measure and benchmark against…. Roundtable seed questions: How are you making your concepts a reality? What part of the planning process is most challenging? How are you engaging stakeholders in the planning process? Next, let’s talk about how you turn that plan into action.
  • Dee presents: Based on our understanding of user and business requirements and with a solid plan in place, we were in a place to start executing against our plan and implementing our new procurement systems and processes.
  • Dee to present: This is currently where we are at in the concept-to-control continuum. We started our implementation process in March and will be finished by October – at the latest. Unlike many other implementations of this size – remember we are rolling out to 46 different locations – it has only taken months for us to get something ready for prime-time. That’s because we chose a cloud-based solution that required very little from us to get started.
  • Rob to present on why companies should consider the cloud: A lot of you might not be really familiar with the cloud, so I wanted to take a few minutes to just provide a high level overview of what a cloud-based solution really is. There are a lot of options out there, but the road to success leads to the clouds…
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to present on why companies should consider the cloud:
  • Rob to lead roundtable discussion and provide Coupa point of view on implementing your plan: Coupa has successfully completed hundreds of implementations and has a team dedicated to making sure implementation is fast, efficient and cost effective… Roundtable seed questions: How quickly can change happen at your organization? What are the typical bottle necks encountered? How do you work around those to get things done? So you have you system in place, what next? How do you make sure it was all for not?
  • Dee to present: We know in order to make this successful and really get the kind of control we need, we must get users to adopt the new systems and processes. If they do not, their purchases and spend remain outside of the system in come in after the fact on an expense report or unexpected invoice removing the ability to control spend before it happens.
  • Dee to present: We really felt in order to drive user adoption we needed to get them involved every step of the way. So from our initial steering committee to implementation, our users have been a big part of making this happen. We are ensuring they all get trained and able to really get a feel for the system. As we go through our phased roll out, we are able to take the lessons learned from one department and are able to applies those to the next, ensuring that with each step we are getting better and having a bigger impact. And executive management has been very support in getting people on board with the change.
  • Rob to lead roundtable discussion and provide Coupa point of view on driving user adoption: User adoption is difficult to drive – and more often than not people will resist change. But by implementing an easy-to-use system with a familiar Web 2.0 interface that users inherently know how to use, you are able to really drive adoption, people will actually want to use the system… Roundtable seed questions: Do you know how much of your spend is under management? How do you drive users to adopt processes and systems? What are some of the ways you have championed change in your organization? Your concept has become a reality, you have everything in place and users are actually using the system, now let’s explore how you use this to gain control of spend.
  • Dee to present: We are really excited to get to this final stage. Once we are able to get the system completely rolled out and users actively using it, we will be able to really gain control of spend and being able to take real-time action to deliver savings.
  • Dee to present: Our ambition is bigger than just getting control over purchasing spend. We want to get 100% of indirect spend under control. That include procurement and T&amp;E expenses. Having a centralized platform to do both will enable us to have a complete view of spend across the entire organization and take action accordingly to drive savings… [Dee to provide more detail on how they plan to utilize system reports and benchmarks to control spend]
  • Rob to lead roundtable discussion and provide Coupa point of view on spend control: It’s difficult to stop waste or reprioritize spend after the money is gone. That is why it is so important to have real-time data to control spend… Roundtable seed questions: What ideas and concepts are you considering achieve efficiency and control? What challenges have you faced in developing your concept? How are you working around these challenges to get your concept off the ground? Now that we have our concept defined, let’s talk a bit about how to create a plan.
  • Rob to close session / thank participants: It is possible to turn your concepts into reality and make an impact on your organization. Develop your concept from an idea to something more tangible Create a plan that meets organization and user needs Leverage innovation to drive quick, cost-effective, and efficient implementation Drive user adoption to really get all spend under management Utilize real-time data, alerts and action to control spend and deliver savings
  • Rob to close session / thank participants: Thank you again for participating in today’s session. If you have any additional questions for either Dee or myself, grab us during a break today or feel free to reach out to us.
  • Procurement Leaders Forum 2010 - Berkshire Bank - From Concept to Control

    1. 1. Concept to Control How Berkshire Bank built an e-procurement machine that put their savings initiatives into overdrive
    2. 2. Today’s Session TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
    3. 3. Who We Are <ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>Rob Bernshteyn </li></ul><ul><li>CEO </li></ul>
    4. 4. About Us <ul><li>Empowering organizations to: </li></ul><ul><ul><li>Spend Less: Reduce maverick spending by ~33%  </li></ul></ul><ul><ul><li>Pay Less: Lower average order costs by ~25% </li></ul></ul><ul><ul><li>Reduce Cycle Time: Reduce time to get goods by ~30% </li></ul></ul><ul><ul><li>Reduce Operating Costs: Reduce time spent on purchasing / auditing by ~20% </li></ul></ul><ul><ul><li>Improve Spend Predictability: Increase spend under management by ~20 % </li></ul></ul><ul><li>Total Customers: 120+ including </li></ul><ul><li>Platform Spend: More than $1B through 35,000 suppliers </li></ul><ul><li>Spend Growth: 704% year-over-year </li></ul><ul><li>System Availability: 99.999% uptime </li></ul>
    5. 5. <ul><li>$2.7 billion in assets </li></ul><ul><li>Integrated insurance and wealth management ($650 million AUM) </li></ul><ul><li>New England asset based lending group </li></ul><ul><li>Largest local regional bank </li></ul><ul><li>41 Financial Centers in Western MA, Eastern NY, and Southern VT </li></ul><ul><li>A leader in philanthropy and community involvement and leadership by providing over $12 million in funding </li></ul><ul><li>Committed to the RIGHT core values: Respect, Integrity, Guts, Having Fun and Teamwork </li></ul><ul><li>Constantly developing fresh new approaches to our customer service experience </li></ul>About Us
    6. 6. Concept
    7. 7. Develop the Concept
    8. 8. Roundtable Discussion: Concept What ideas and concepts are you considering achieve efficiency and control? How are you working around these challenges to get your concept off the ground? What challenges have you faced in developing your concept?
    9. 9. Plan
    10. 10. Putting A Plan in Place <ul><li>Get stakeholders involved, they will be more accepting of change and will help make it happen </li></ul><ul><li>Start a steering committee </li></ul><ul><ul><li>Include stakeholders from all areas </li></ul></ul>Branch Managers IT Facilities Legal Commercial Lending Operations Insurance AP Marketing HR Compliance Steering Committee
    11. 11. Putting A Plan in Place <ul><li>Understand user needs and identify requirements </li></ul><ul><ul><li>Vendor and contract management </li></ul></ul><ul><ul><li>Policies and procedures </li></ul></ul><ul><ul><li>Compliance and auditing </li></ul></ul><ul><ul><li>Reporting and budgeting </li></ul></ul><ul><li>Collaborate with end users </li></ul><ul><ul><li>What is working with the existing process? What isn’t? How do they use process / solution in day-to-day job? </li></ul></ul><ul><li>Prioritize feedback based on impact </li></ul><ul><ul><li>Aggregate and identify trends </li></ul></ul><ul><ul><li>Pick out a subset of things to tackle – doing it all is impossible and unnecessary </li></ul></ul>
    12. 12. Putting A Plan in Place <ul><li>Conduct a vendor due diligence </li></ul><ul><ul><li>Submit an RFP, get a demo </li></ul></ul><ul><li>Create a “short list” </li></ul><ul><ul><li>Trial solution, test and push boundaries </li></ul></ul><ul><ul><li>Let end users have a go </li></ul></ul><ul><li>Select the vendor that meets your requirements </li></ul>e-procurement “lite” Basic P2P functionality On-demand enterprise e-procurement Advanced features, complex capabilities On-premise Coupa Cloud Spend Management
    13. 13. Roundtable Discussion: Plan How are you making your concepts a reality? How are you engaging stakeholders in the planning process? What part of the planning process is most challenging?
    14. 14. Implement
    15. 15. Innovation Fuels Accelerated Implementation <ul><li>Implementation taking months – not years like an on-premise solution </li></ul><ul><li>Phased roll-out to 41 locations </li></ul>Phase 1 Phase 2 Phase 4 <ul><li>Requisitioning </li></ul><ul><li>PO Generation </li></ul><ul><li>Invoicing </li></ul><ul><li>Reporting </li></ul><ul><li>Contract Management </li></ul><ul><li>Vendor Management </li></ul><ul><li>Receiving </li></ul><ul><li>Budgeting </li></ul><ul><li>Asset Management </li></ul><ul><li>Supplier Punchout </li></ul><ul><li>Travel & Expense Reporting </li></ul>Phase 3
    16. 16. Why the “cloud”
    17. 17. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul>VS
    18. 18. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Difficult Independent Implementations </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul><ul><li>Rapid Implementation </li></ul>VS
    19. 19. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Difficult Independent Implementations </li></ul><ul><li>Multiple Code Bases </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul><ul><li>Rapid Implementation </li></ul><ul><li>One Optimized Code Base </li></ul>VS Cloud Platform
    20. 20. Innovation in the Cloud <ul><li>Traditional Dev Model </li></ul><ul><li>Lengthy Independent Upgrades </li></ul><ul><li>Difficult Independent Implementations </li></ul><ul><li>Multiple Code Bases </li></ul><ul><li>Non-viable long-term business model </li></ul><ul><li>Cloud Dev Model </li></ul><ul><li>Quick and Simple Upgrades </li></ul><ul><li>Rapid Implementation </li></ul><ul><li>One Optimized Code Base </li></ul><ul><li>Sustainable Business Model </li></ul>VS Cloud Platform
    21. 21. The Cloud is the Most Cost Effective Year 1 Year 2 Year 3 <ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul><li>Database / Middleware </li></ul><ul><li>Software Fees </li></ul><ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul><li>Database / Middleware </li></ul><ul><li>Software Fee </li></ul><ul><li>Implementation </li></ul><ul><li>Hardware </li></ul><ul><li>Database / Middleware </li></ul><ul><li>Software Fee </li></ul><ul><li>IT Support </li></ul><ul><li>Maintenance </li></ul><ul><li>Professional Services </li></ul><ul><li>Software Fees </li></ul><ul><li>IT Support </li></ul><ul><li>Maintenance </li></ul><ul><li>Professional Services </li></ul><ul><li>Software Fees </li></ul><ul><li>IT Support </li></ul><ul><li>Maintenance </li></ul><ul><li>Upgrade </li></ul><ul><li>Professional Services </li></ul><ul><li>Software Fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul><ul><li>Software fees </li></ul>
    22. 22. Roundtable Discussion: Implement How quickly can change happen at your organization? How do you work around those to get things done? What are the typical bottle necks encountered?
    23. 23. Adoption
    24. 24. Users Drive Spend Visibility & Control <ul><li>If it’s not in the system, it’s not controllable </li></ul><ul><li>Drive user adoption </li></ul><ul><ul><li>Make it easier than any alternative </li></ul></ul><ul><ul><li>Include stakeholders in planning to develop buy in </li></ul></ul><ul><ul><li>Continuously train and educate </li></ul></ul><ul><ul><li>Champion change, lead by example </li></ul></ul>
    25. 25. Roundtable Discussion: Adoption Do you know how much of your spend is under management? What are some of the ways you have championed change in your organization? How do you drive users to adopt processes and systems?
    26. 26. Control
    27. 27. Gain Spend Visibility and Control <ul><li>100% of indirect spend – purchasing and expenses – visible and under control </li></ul><ul><li>Infrastructure to manage, report and control spend </li></ul><ul><li>Reduce admin burden through automation / integration with AP / GL systems </li></ul><ul><li>Historical audit trails to standardize and enhance policies </li></ul><ul><li>Greater negotiation power and adherence to preferred vendor contracts </li></ul>
    28. 28. An Action Plan for Savings <ul><li>Increase control over company spending </li></ul><ul><li>Review and approve immediately via email </li></ul><ul><li>Enable strategic purchasing initiative to lower costs </li></ul><ul><li>Make the shift from damage control to spend control </li></ul><ul><li>Control maverick Spending </li></ul><ul><li>Save 5% - 20% on every dollar under management in the system </li></ul><ul><li>Spend 25% less on total purchasing activities </li></ul>
    29. 29. Roundtable Discussion: Control How do you get spend information? How are you delivering savings to your organization? What enables you to take action to stop waste?
    30. 30. Your Ideas CAN Become a Reality! TIME IMPACT CONCEPT PLAN ADOPT IMPLEMENT CONTROL
    31. 31. <ul><li>Dee Harnish </li></ul><ul><li>Purchasing </li></ul><ul><li>[email_address] </li></ul><ul><li>Rob Bernshteyn </li></ul><ul><li>CEO </li></ul><ul><li>[email_address] </li></ul>THANK YOU

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