Cloud Workflows for Procurement

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Social media provide the infrastructure for communication without limits of time, place or participation. In contrast, deliverable-oriented routine teamwork, such as is typical in Procurement environments, needs defined processes involving selected individuals.

This webinar introduces Procurement Specialists to the concept Workflows in the Cloud and their advantages. It also gives an opportunity to prioritise the more important benefits.

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Cloud Workflows for Procurement

  1. 1. In association with B2B Smart Networks24 May 2013Dr. Deasún Ó Conchúir PMPBSc PhD CEng FIET FIEI PMPhttp://www.scatterwork.com/
  2. 2. Presentation Objectives Introduction for Procurement Specialists to:◦ The concept of Workflows in the Cloud◦ Their advantages◦ Priorities for Implementation This presentation is a summary of a webinar◦ Full recording here2© Scatterwork GmbH 2013
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  4. 4. Challenges for Procurement Globalization of contracts Need for enhanced flexibility and workflow capabilities amonginternal and external stakeholders The significant role of Contract Lifecycle Management Self-service infrastructure Improved strategic focus Standardized purchasing procedures Reducing manual and paper-based processes Impact of mobile technologies on future business processesSource: Procurement 2020 by SciQuesthttp://www.sciquest.com/future-procurement-challenges-nextlevel-2013/© Scatterwork GmbH 2013 4
  5. 5. “Challenges” of traditionalProcess Implementation◦ Adherence is difficult to ensure◦ Processes may not be implementedconsistently◦ The status of a process is not visible◦ Laborious collection of statistical datato guide improvement efforts5© Scatterwork GmbH 2013
  6. 6. “Challenges” of traditionalProcess Implementation◦ Adherence is difficult to ensure◦ Processes may not be implementedconsistently◦ The status of a process is not visible◦ Laborious collection of statistical datato guide improvement efforts6© Scatterwork GmbH 2013Business ProcessModeling (BPM)Workflows can helpaddress these issues
  7. 7. Some ProcurementStrategic Objectives•Cost reduction•Compliance•Supplier reliability•Qualified suppliers•Performance improvement•Standard Terms & Conditions (T&C)•Delivery quality•Planning and On-time delivery•Spare parts stock visibility•Local suppliers for local business•Expansion of global supply base•Competition© Scatterwork GmbH 2013 7Business ProcessModeling (BPM)Workflows can alsohelp address theseissues
  8. 8. How to meet theChallengesProcurement uses deliverable-oriented routine teamwork,based on processesBusiness Process Modelling captures the design andexecution of processesSocial media and internet provide the communicationinfrastructure without limits of time, place or participationCloud Workflows bring these technologies together,offering significant benefits to Procurement Processes© Scatterwork GmbH 2013 8
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  10. 10. What is a Process? Any repetitive sequence of actions togenerate an output Also called:◦ Procedure◦ Technique◦ Operation◦ Workflow◦ SOP (standard operating procedure)◦ Step etc10© Scatterwork GmbH 2013Image courtesy of FreeDigitalPhotos.net
  11. 11. Why use processes? Procurement Processes*◦ Save time and money◦ Reduce risk◦ Ensure that important stepsare not forgotten This is important because Procurement(together with Payroll) costs usually accountfor the majority of company expenditure*Source: Purchasing Insighthttp://purchasinginsight.com/about/11© Scatterwork GmbH 2013
  12. 12. Sample ProcurementProcesses Supplier selection and evaluation Obtaining multiple quotations and selection of contractors Negotiation & award Order Processing Procuring Office Supplies in Large Companies Spend Analysis More Examples of Procurement Processses◦ Anglia Rustin University: Procurement OJEU [Official Journal ofthe EU] process http://procurement.anglia.ac.uk/documents/document.asp?type=6&doc=238◦ Jisc InfoNet: Generic procurement process http://www.jiscinfonet.ac.uk/infokits/learning-spaces/implementation/procurement/◦ Microsoft Technet: Requesting and approving a new vendor http://technet.microsoft.com/en-us/library/hh227499.aspx© Scatterwork GmbH 2013 12
  13. 13. Process vs. Workflow A process has defined◦ Inputs◦ Work Methods◦ Outputs A workflow is more general:◦ Systematic activity in a given area◦ May incorporate several processes© Scatterwork GmbH 2013 13
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  15. 15. Sample BPM Workflow Obtain Multiple Quotations, and Selection ofContractors© Scatterwork GmbH 2013 15Source: www.questetra.com
  16. 16. Sample BPM Workflow Obtain Multiple Quotations, and Selection ofContractors© Scatterwork GmbH 2013 16Source: www.questetra.comSimilar to “Flowchart”;intuitively simple to understand
  17. 17. Sample BPM Workflow Obtain Multiple Quotations, and Selection ofContractors© Scatterwork GmbH 2013 17Source: www.questetra.comEach “Swimlane” isassigned to oneperson or groupSimilar to “Flowchart”;intuitively simple to understand
  18. 18. Sample BPM Workflow Obtain Multiple Quotations, and Selection ofContractors© Scatterwork GmbH 2013 18Source: www.questetra.comSimilar to “Flowchart”;intuitively simple to understandAdjustments aremade graphically, notby programmingEach “Swimlane” isassigned to oneperson or group
  19. 19. Sample BPM Workflow Obtain Multiple Quotations, and Selection ofContractors© Scatterwork GmbH 2013 19Source: www.questetra.comSimilar to “Flowchart”;intuitively simple to understandAdjustments aremade graphically, notby programmingImplementation is driven by Workflow Engine;communication across locations by e-mail notificationsEach “Swimlane” isassigned to oneperson or group
  20. 20. BPM facilitates ProcurementProcess Implementation Can also be applied in most Business Environments◦ Logistics and Distribution◦ Product Development◦ FactoryProduction◦ Marketing◦ Accounting◦ Healthcare◦ Maintenance Programs◦ Inventory Management etc.© Scatterwork GmbH 2013 20
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  22. 22. BPM Workflows in the Cloud Allow very significant increase in accessibilityusing several innovations:◦ Broadband◦ Wi-Fi◦ Smartphone and Apps◦ SaaS – software as a service◦ Cloud Computing The user is freed from office environmentswith hardwired networks Implementation possible across locations,departments, time zones and continents22© Scatterwork GmbH 2013
  23. 23. Image courtesy of FreeDigitalPhotos.netContinuous Improvementof Procurement Processes23© Scatterwork GmbH 2013 Applying ContinuousImprovement (aka Kaizen)leads to further incrementalbenefits in:◦ Cost◦ Quality◦ Risk◦ Efficiency
  24. 24. Competitive Advantages of CloudWorkflows for Procurement Consistent Procurement Process Implementation◦ Reduces the variations between individuals◦ Systematic Process Improvement Possible24© Scatterwork GmbH 2013
  25. 25. Competitive Advantages of CloudWorkflows for Procurement Consistent Procurement Process Implementation◦ Reduces the variations between individuals◦ Systematic Process Improvement Possible Business Rules can be separated out◦ Simplifies adherence to legal and business requirements25© Scatterwork GmbH 2013
  26. 26. Competitive Advantages of CloudWorkflows for Procurement Consistent Procurement Process Implementation◦ Reduces the variations between individuals◦ Systematic Process Improvement Possible Business Rules can be separated out◦ Simplifies adherence to legal and business requirements Visibility and Performance Management of Processes◦ Traditionally you just can’t see what state has been reached.26© Scatterwork GmbH 2013
  27. 27. Competitive Advantages of CloudWorkflows for Procurement Consistent Procurement Process Implementation◦ Reduces the variations between individuals◦ Systematic Process Improvement Possible Business Rules can be separated out◦ Simplifies adherence to legal and business requirements Visibility and Performance Management of Processes◦ Traditionally you just can’t see what state has been reached. Acceleration of Decision Making◦ with reaction times in seconds or minutes, Facebook-style instead of evenweeks or months in traditional environments. This leads to faster businesscycles, leading to increased profitability27© Scatterwork GmbH 2013
  28. 28. Competitive Advantages of CloudWorkflows for Procurement Consistent Procurement Process Implementation◦ Reduces the variations between individuals◦ Systematic Process Improvement Possible Business Rules can be separated out◦ Simplifies adherence to legal and business requirements Visibility and Performance Management of Processes◦ Traditionally you just can’t see what state has been reached. Acceleration of Decision Making◦ with reaction times in seconds or minutes, Facebook-style instead of evenweeks or months in traditional environments. This leads to faster businesscycles, leading to increased profitability. Reduced Risk of Undocumented Processes◦ Including non-optimal implementation, dependency on individuals,unclear assignments and inefficiencies etc.28© Scatterwork GmbH 2013
  29. 29. General Advantages ofCloud Workflows Choice of Expertise◦ Greatly increased, often at more attractive cost. Accelerated Engagement of Expert Staff◦ Without the costs and delays of personal mobility, work permits etc. Reduced Dependency on Individuals◦ Avoidance of knowledge asset losses when staff move Greater Choice of Time Zone◦ To accelerate development cycles and provide 24/4 service Elimination or Reduction of Real Estate Requirement◦ Driving down cost overheads such as leasing, insurance, maintenance andcleaning, security, computer and telecommunications infrastructure etc. Capitalizes on your know-how investment etc.29© Scatterwork GmbH 2013
  30. 30. Special free offer forWebinar Participants Scatterwork will work with you remotely toidentify, prioritize and capture one criticalprocurement processes, using standard BPMN inthe cloud.◦ Fill out the form on this page including the message“Webinar Participant” (or mail info@scattework.com)◦ Offer valid until 30 June 2013◦ Maximum effort: 2 hrs consulting Future Webinars◦ If you have suggestions for future webinar topics and/ orwould like to present one, please tell us now via the ChatWindow.© Scatterwork GmbH 2013 30
  31. 31. Contact us! Dr. Deasún Ó Conchúir◦ Join me on LinkedIn:http://www.linkedin.com/in/scatterwork◦ Email: deasun.oconchuir@scatterwork.com◦ Mobile: +41 79 692 4735◦ Skype: deasun99◦ Web: http://www.scatterwork.com Jean-Pierre Doggett◦ Join me on LinkedIn:uk.linkedin.com/pub/jean-pierre-doggett/6/451/a3a◦ Email: jp@B2Bsmartnetworks.com◦ Phone: +44 203 286 6003◦ Skype: jpdoggett◦ Web: http://www.b2bsmartnetworks.com/home31© Scatterwork GmbH 2013

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