Coupa Crank Up the savings roadshow presentation. See how your company can save by using innovative on demand spend management software.

2. Agenda
Time Item Presenter
8:30 – 9:00 Coffee All
9:00 – 9: 30 Welcome – Coupa Roadmap Tony Wessels, V.P. Marketing
Coupa
9:30 – 10:30 Amplifying Procurement’s Role Ravi Thakur, V.P. Customer
Success, Coupa
10:30 – 10:45 Break All
10:45 – 11:30 Project : Get Smart Mike Wilding, CPO,
Rent A Center
11:30 – 12:15 Extended Business Relationship Bruce McQuillen,
Management (EBRM) Deloitte Consulting
12:15 - 12:30 Closing Remarks
12:30 – 1:30 Coupa Demo Ravi Thakur, V.P. Customer
Success, Coupa

4. Purchasing

5. Procurement
Purchasing

6. Procurement
Spend Purchasing
Management

7. Procurement
Spend Purchasing
Management
Spend Optimization

8. Coupa Overview
Tony Wessels
Vice President, Marketing

9. Coupa’s Mission
Delivering software innovation that
breeds responsible spending while
impacting the company bottom line.

10. Innovation

11. Responsible Spending

12. Bottom Line

13. Spend Optimization

14. Coupa’s Explosive Growth
180%
Bookings
+95% 150%
Renewal Rate Platform Usage
YOY YOY YOY

15. One World, One Platform
10 Languages
40 Countries
100,000 Users

16. Customers Highlights
Retail Finance Mfg. Health Care High Tech

17. Amplifying Procurement’s Role
Ravi Thakur
Vice President, Customer Success & Services

18. CFO Financial Books
Sales & Mktg Customer Records
HR Personnel Files

19. Procurement Needs To Own Spend Transactions

20. Own The Optimize Spend
Transaction
Spend Optimization Platform & Processes

21. Procurement Must Orchestrate
VS.

22. How Do You Do It?
 Proactively participate in growth strategy
 Manage change effectively
 Measure & demonstrate success

23. Participate In Growth Strategy

24. Understand Growth Strategies
Geographic Expansion

25. Understand Growth Strategies
Geographic Expansion
New Lines Of Business

26. Understand Growth Strategies
Geographic Expansion
New Lines Of Business
Acquisitions

27. Provide Truly Strategic Value
 Ensure executive team supports your Spend
Optimization strategy
 Work with R & D / Product Development
 Be aligned with M & A and global expansion

28. Develop Agile Spend Processes
 Bring distributed locations
under management
 Involve all stakeholders
e.g. facilities, marketing
 Proactively integrate
acquisitions

29. Managing Change

30. Change Management Requirements
Leveraging Frictionless
change agents transition

31. Leveraging Change Agents
Functional Users
IT
Procurement
Payables
Suppliers

32. Functional Users
Needs Solution
 A solution that they  Familiar user
can use interface
 Not stand in their  Support for function
way specific spend

33. Procurement
Needs Solution
 Ensure policy  Enables transaction
compliance ownership
 Attain savings goals  Measurable results

34. Payables
Needs Solution
 Reduce manual &  Automation for
error prone steps invoice processing
 Simplify tasks  Eliminates tedium

35. IT
Needs Solution
 Reduce burden on IT  SaaS/Cloud based
resources platform
 Focus on value-add  User configurable
tasks solution

36. Suppliers
Needs Solution
 No additional cost of  No network fees or
doing business processes to support
 Ease of adoption  Innovation e.g.
Universal Search

37. Frictionless Transition
 Familiar & convenient user interface
 Weave into daily life

38. Demonstrate Success

39. Measure Success
• Establish benchmarks and determine
Set Targets targets
• Use data to analyze:
Achieve Targets • Tradeoffs and interdependencies
• Root cause
• Measurement excellence = capability
Be Excellent to improve and stay ahead

40. Benchmark Success
Effectiveness Productivity
 Spend under management  Transaction cycle time
 User adoption = customer  PO & invoices processed
satisfaction per FTE (#)
 % saving / spend  Support costs – not just IT

41. Communicate Success

42. CFO Financial Books
Sales & Mktg Customer Records
HR Personnel Files
Procurement Spend Transactions

43. Break

44. Project: Get Smart
Mike Wilding
Chief Procurement Officer
Rent A Center
44

45. Crank the Savings World Tour
May 1, 2012
- 45 -

46. Executive Summary
About Rent-A-Center
• The largest operator in the United States rent-to-own industry
• Over 4,000 locations (2,983 Core U.S.; 763 RAC Acceptance; 87 International, 218
ColorTyme franchisees)
• Stores offer high quality, brand name durable products such as major consumer
electronics, appliances, computers, and furniture and accessories under flexible rental
purchase agreements
• Allows customers to obtain ownership of the merchandise at the conclusion of an
agreed-upon rental period
• Approximately 20,000 employees
• Annual revenues projected to exceed $3.0 billion in 2012
• NASDAQ: RCII
• Headquarters: Plano, Texas (opened a Field Support Center in Monterrey, Mexico
dedication is May 15th)
- 46 -

47. A peek into the past
• Two procurement tools in past 18 months prior to June 30, 2010
• Lack of visibility into invoice submitted by vendor at store location
• Punch out catalogues and catalogues in general not consistently utilized
• Existing platform extremely clunky and lacked ability to find product quickly (minimum
of five clicks before you were able to place an order)
• User adoption was slow and intermediate; complaints were fast and frequent
• On boarding of suppliers was not an easy, friendly process
• Invoices were entered into ERP by hand
• Procurement of approximately $600 million of indirect spend was very decentralized
• No consistent esourcing tools utilized
• Invoicing off of a contract was foreign
• No central repository for contracts
• Spend analyzing was performed by tearing apart general ledger accounts
- 47 -

48. Need for Change
Process Path Migration Supporting Modules How They Help
 Procurement  Catalog creation and
 EIPP (for non-EDI enabled management
1 suppliers)  PO creation, routing, and tracking
 Reporting  Visibility to purchasing accruals
Catalog with
Purchase  Three way matching and issue
Order identification
2  Procurement  Purchase request/PO creation,
Non-Catalog  EIPP routing, and tracking
with  Reporting  Three way matching and issue
Purchase identification
Order  Visibility to purchasing accruals
3  Electronic
Invoice Presentment  Invoice creation, routing, and
Invoice and Payment (EIPP) tracking
Directly  Reporting  Ability to invoice against a
Against contract (or against open P.O.)
Contract  Two way matching
4  NA  Futurespend expected to be
exception/emergency only
Invoice Only
- 48 -

49. RAC Technology Scope
Source-to-Contract Procure-to-Pay Reporting & Supplier Travel &
Process
(Upstream) (Downstream) Management Expense
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting T&E
Management
 Increased savings through  Increased electronic PO use for  Ability
to monitor SMO  Online booking with RAC
competitive pressure and pricing spend management, compliance, and performance and identify future policies
visibility 2, 3, and 4 way matching savings opportunities  Automated
expense
 Automated project workflow for  User-friendly
interface to support field  Supplier portal to enable vendor management
RAC sourcing methodology and adoption and compliance initiated electronic invoicing and
Benefits contract authoring  Ability
to invoice against a contract payment
 Contract repository to support (or against an open P.O.) to increase  Vendor score carding to monitor
invoicing against contracts (PP 3) pricing compliance pricing and service compliance
 Automatedinvoicing will lower AP
department costs
 Concurimplementation
complete on 6/14/2010
- 49 -

50. The RAC Technology Assessment Approach
The RAC team assessed our spend needs and capabilities, developed the future state vision for the SMO, and created the options
that the Technology Steering Committee assessed to make the final recommendation
Project: Get SMarT Accomplishments Potential Next Phase
As – Is Assessment Strategy Development Technology Selection Implementation
Major Activities
 Maturity survey  Implementation scenario  Formation of steering  RAC solution design
 SMO vision development development committee  Solution implementation
 Needs assessment  Scenario ROI analysis  RFP development and  User training
prioritization  Implementation prioritization distribution
 Process and technology  Response analysis
assessment  Technology selection
Outcome
Business and technology Technology Business Case Solution and vendor Technology implemented
needs identified created recommendation developed
Example Documents
Tech Selection RFP Scoring Results
RAC stakeholders have completed the scoring process and identified SAP, Oracle, and Ariba as the best full suite providers,
and Emptoris as a leading single process provider.
Full Suite Upstream Only Downstream Only
Oracle SAP Ariba Ketera Emptoris BravoSolution Basware Lawson
3.9 3.9 3.7 3.6 3.8 3.9 3.4 3.7
General
Company
Information 3 2 1
4.4 4.7 4.6 3.0 4.8 3.3 N/A N/A
Source to
Contract 2 3 1
4.6 4.3 4.3 3.3 N/A N/A 3.8 2.9
Procure to
Pay 1 2 3
4.2 4.2 4.3 3.5 4.2 3.8 2.9 3.4
Spend
Analysis &
Reporting
2 1 3
4.5 4.4 4.4 3.2 2.7 1.9 3.1 3.2
Supplier
Management 1 2 3
4.0 3.4 3.8 2.9 3.5 3.4 3.4 3.6
Technical
1 2 3
Considering the strong performance of the full-suite providers and the relatively weak performance
of the niche providers, the team has not included Aravo and JPMC in this assessment.
Note: RAC stakeholders include M. Wilding, T. Fuller, P. Hall, J. Whitehead, B. Corley, N. Stevens, J.Chanani, M. Douglas, J. Arnette and R. Salvans
-3-
Maturity model assessment Technology cost / benefit Technology demo Technology Example
and gap analysis assessment scripts RFP evaluation implementation roadmap
- 50 -

51. The Business Case - Executive Summary
Scope of Business Case
Reporting & Supplier Travel &
Process Source-to-Contract Procure- to- Pay
Management Expense
Supplier
Module eSourcing Contracts eProcurement Invoicing Reporting T&E
Management
RAC had some spend management technology in place, however further investments were required to reach the desired to-be
state
 RAC had limited Sourcing and Contracting technology in place
 The eProcurement technology was at a low level of maturity and required an upgrade to support new process paths if not replaced
 RAC had very limited spend management Reporting capabilities, and no Supplier Management technology
 Beyond basic electronic forms, the Travel and Expense (T&E) analysis, audits, and reporting were at a low level of maturity
5 Year financial analysis shows net savings of $ – $ MM for RAC
- 51 -

52. The Technology Selection Process
The RAC technology selection team conducted a 4 step process to identify the right technology solution to meet our needs
Vendors included in Vendors included in Vendors that provided
Vendors receiving RFP
initial assessment capability assessment demonstrations
1. Market Research 2. Detailed Analysis 3. RFP 4. Demo Analysis
 Conducted high level market  Conducted capability  Developed and distributed  Developed seven page script
analysis 44 vendors assessment and detailed detailed RFP consisting of: and executed detailed vendor
 Perform functionality review financial analysis ‒ 6 sections demos
and financial assessment  Down selected from 19 to 11 ‒ 275 questions  Identified best-fit solution and
 Down select to 19 vendors vendors that would receive implementation scenario for
 Evaluated responses and
that could potentially meet RFP RAC
identified 4 vendors that best met
RAC needs RAC’s needs and provided
competitive pricing estimates
Where’s Coupa?
- 52 -

53. RAC Technology Scope
Source-to-Contract Procure-to-Pay Reporting & Supplier Travel &
Process
(Upstream) (Downstream) Management Expense
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting T&E
Management
 Increased savings through  Increased electronic PO use for  Ability
to monitor SMO  Online booking with RAC
competitive pressure and pricing spend management, compliance, and performance and identify future policies
visibility 2, 3, and 4 way matching savings opportunities  Automated
expense
 Automated project workflow for  User-friendly
interface to support field  Supplier portal to enable vendor management
RAC sourcing methodology and adoption and compliance initiated electronic invoicing and
Benefits contract authoring  Ability
to invoice against a contract payment
 Contract repository to support (or against an open P.O.) to increase  Vendor score carding to monitor
invoicing against contracts (PP 3) pricing compliance pricing and service compliance
 Automatedinvoicing will lower AP
department costs
eSourcing eProcurement Reporting  Concurimplementation
Emptoris Coupa Spend Analysis / Business complete on 6/14/2010
What was Objects
eContracting eInvoicing
selected?
Emptoris Coupa Supplier Management
Emptoris / Coupa
- 53 -

54. Technology Implementation Timeline
June July August September October December Q1, 2011
6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26 8/2 8/9 8/16 8/23 8/30 9/6 9/13 9/20 9/27 10/4 10/11
PMO Program Leadership (PMO)
Source to
Contract Go-
Plan Design Build Validate
• eSourcing Live
• eContracting
Installation Configuration
completed completed
Go-
Spend Analysis Plan Design Build Validate
Live
Installation Configuration Integration
completed completed completed
Build Validate Go-Live
Procure to Pay Coupa Release 21
Plan Design Build Validate Go-Live
• eProcurement (Invoice to Contract, PP3)
• eInvoicing
Installation Configuration Integration Coupa Release 1
completed completed completed (Blanket PO) Build Validate Go-Live
Coupa Release 31
(Tiered Pricing)
Supplier Go-
Plan Design Build Validate
Management Live
Installation Configuration Integration
completed completed completed
Master Data Master Data
CTC Change, Training, Communications
- 54 -

55. eSourcing Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
eSourcing Benefits to RAC
 Increased competitive pressure and visibility into market pricing
 Streamlined RAC supplier evaluation for rapid “apples to apples” analysis
 Automated workflow to ensure enforcement of RAC’s 6 step sourcing methodology
What’s at Stake for RAC
eSourcing advanced functionality will be used by the SMO to achieve incremental soft dollar savings for RAC.
Sourcing Impact
 All current and future events can use traditional and advanced sourcing functionality
 SMO can use auction functionality for rapid “spot sourcing” events
 Like other retailers, RAC can use the eSourcing tool for merchandise
- 55 -

56. eContracting Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
eContracting Benefits to RAC
 Contract authoring automates contract development, enforces internal approval flows, and provides visibility to progress
 Contract repository enables uploading of new and existing contracts for automated procurement and invoicing (PP3)
 Automated tracking enables pricing, commitment, vendor compliance, and lifecycle management
What’s at Stake for RAC
eContracts automated authoring, storage, and procurement integration will drive efficiencies, compliance, and savings identification.
- 56 -

57. eProcurement Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
What Coupa brings to RAC
 Electronic PO acknowledgements and approval flows lower cost to serve and increase visibility and compliance
 Reduction of headcount in our AP group
 Advanced search functionality and user friendly interface drives compliance and use of catalogs and punch-outs in the field
 Extremely high adoption rate of tool
 Ability to order supplies from the desktop keeping our employees in the store renting and selling merchandise
 Labor hours under control; sales going up
 Business partner to discuss other needs and solutions (sales tax)
 Increased performance against established KPIs
Transparent
Controlled
1
Catalog
with
Purchase
2 Order (PO)
Non-
Catalog
Invoiced spend will
with PO
3 be moved to PO
Invoice
based process path
Directly
Against (PP 1 & PP 2)
4 Contract
Invoice
Only
- 57 -

58. eInvoicing Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
What Coupa brings to RAC
 Ability to invoice against a contract (or against an open P.O.); pricing compliance to negotiated agreements
 Automated invoicing lowered our AP department costs and shorten the time required to process payments
 Electronic approvals and tracking has increased our visibility and compliance for our users and vendors
- 58 -

59. Reporting & Supplier Management Overview
Module Assessment
Source-to-Contract Procure-to-Pay Reporting & Supplier
Process (Upstream) (Downstream) Management
Supplier
Module eSourcing eContracting eProcurement eInvoicing Reporting
Management
Reporting Benefits to RAC
 Spend analysis has provided visibility into our costs and helped us prioritize the activities of SMO
 Supplier Portal has facilitated automated registration and management of supplier information
 Supplier Management gives us data and scorecards to identify pricing compliance issues and new sourcing opportunities
- 59 -

60. Lessons learned
• View a live environment, see how other companies use the product and see what
hardware they are using
• Engage internal IT group earlier and more frequently in the process (what will be
required on ongoing basis after implementation)
• Engage Internal Audit and IT Security earlier in the process
• First significant Software as Service model for RAC (IT, Legal, IA)
- 60 -

61. Contact information
Mike Wilding
SVP- Accounting/Global Controller & CPO
Mike.wilding@rentacenter.com
972 801 1404
- 61 -

62. Extended Business Relationship
Management (EBRM)
Bruce McQuillen
Deloitte Consulting LLP
62
Confidential and proprietary

63. Extended Business Relationship Management (EBRM)
A Deloitte Perspective
May 2012
Deloitte Consulting LLP

64. Companies across industries are feeling the impact of ineffective management of
their business relationships
Examples
The closure of the German company responsible for supplying a convertible model’s folding roof left the otherwise
finished car in purgatory while the automaker searched for a new supplier.
A toy maker was forced to recall nearly 2 million toys and pay $2.3 million in fines due to identification of lead paint in
toys made by one of its Chinese contract manufacturers.
Due to a concern over the role of third party risk in bank failures, the Office of the Comptroller of the Currency has
required that national banks establish a “comprehensive program for managing the relationship” with third parties.
The launch of a technology company’s long-anticipated white smartphone was delayed for 10 months because of the
quality and longevity of the white paints manufactured in China.
Coupa is one of several components that can help address the impact of ineffective business relationships
Note: Sources listed on slide 17 - 64 -

65. A peek into the past at Rent-A-Center and where Coupa addressed key EBRM
concerns
• Two procurement tools in past 18 months prior to June 30, 2010
• Lack of visibility into invoice submitted by vendor at store location
• Punch out catalogues and catalogues in general not consistently utilized
• Existing platform extremely clunky and lacked ability to find product quickly (minimum of five clicks before you were
able to place an order)
• User adoption was slow and intermediate; complaints were fast and frequent
• On boarding of suppliers was not an easy, friendly process
• Invoices were entered into ERP by hand
• Procurement of approximately $600 million of indirect spend was very decentralized
• No consistent esourcing tools utilized
• Invoicing off of a contract was foreign
• No central repository for contracts
• Spend analyzing was performed by tearing apart general ledger accounts
Coupa enabled Rent-A-Center to capture consistent data on transactions and suppliers in order to
accurately understand and manage its key business relationships
- 65 -

66. How do you rate your organization’s relationship management capabilities?
PARTIALLY YES
Survey Questions NO YES
1. Do you have risk assessment and mitigation strategies in
place to manage your business relationship risks effectively? 0 1 2
Do you monitor them on a periodic basis?
2. Do you monitor globally and on a continuous basis the
performance of your extended value chain in terms of service 0 1 2
levels, responsiveness and quality?
3. Do you gather intelligence from third party and other sources
on your business partners to identify potential financial and
0 1 2
compliance issues?
4. Do you have an effective technology solution that provides
“one stop” enterprise wide visibility into the extended value
chain of your company i.e., the network of suppliers,
0 1 2
customers, outsourcers etc.?
A net score between 0 – 5 indicates the lack of an effective business relationship management strategy
within your organization
- 66 -

67. Lack of effective business relationship management can expose your company to
risk in four broad areas
Loss of Revenue
− Supply disruptions caused by environmental, financial or political issues
− Lack of adherence to sell side contract terms
Increased Costs
− Inefficient process of measuring business relationship performance on a periodic basis
− Lack of adherence to buy side contract terms
A Score of
0 – 5 means Legal Issues
− Lack of effective contract management practices
− Lack of contract compliance, standardized contracts, etc.
Brand Reputation
− Lack of adherence to CSR by its suppliers or customers
− Improper monitoring of the carbon footprint of trading partners
- 67 -

68. Business relationships have evolved significantly over the last decade with increased
focus on effectively integrating and managing those relationships
Integrated
Relationships
 Information centralization
An evolving strategy to  Centralized or center-led
enable companies management of relationships
manage business  Effective risk prediction and
relationships effectively mitigation strategies
 Advanced analytics to assess
relationships
Business Relationship Management
Risk prone
Relationships
Capability
 Information dispersed across the
organization
Collaborative
Relationships  Limited organizational capability to
manage relationships
 Significant increase in number of  Lack of visibility into data across
business partners systems
 Centralized internal support functions  Lack of risk mitigation strategies
Legacy  Limited information visibility across
the enterprise
transactional
Transactional  Transactional systems and point
Relationships
systems solutions
 Decentralized functions No significant change in
 Limited internal and external existing business
collaboration
 Basic data analysis capabilities
relationship
 Limited integration across systems management practices
Past Present Future
Time
- 68 -

69. Extended Business Relationship Management (EBRM) is a strategy to monitor and
manage key business relationships across the company
Corporate Functions Buy Side Partners
Sales Direct Materials Suppliers
Finance Indirect Suppliers
Extended Business Relationship
Management (EBRM)
Logistics Contract Manufacturers
 Provide central visibility to business
relationships
Outsourced Service
Operations
Providers
 Measure, monitor and manage relationships
risk, performance, compliance and
HR information Sell Side Partners
 Manage relationships proactively vs.
Customers
IT reactively
 Deepen and improve key relationships
Trade Partners
Marketing
 Improve top ad bottom line performance
Other Partners
Procurement
Alliance Partners
- 69 -

70. Successful EBRM strategy requires building capabilities at a people, process and technology level
Illustrative Capabilities
 Ability to assess and correct existing  Responsibility and ownership to take
business processes that monitor risk necessary actions for risk mitigation
and performance metrics
 Alignment of organizational structure
 Continuous benchmarking with and governance with EBRM strategy
industry best practices to measure the
effectiveness of the relationship  Shift in mindset towards the nature of
business relationships – from
 Standardized data capture, transactional to a long term strategic
management and reporting processes perspective
EBRM
Strategy
Technology
Capability
 Superior database management and data analytics capabilities
 Integration of different information systems within the enterprise
 Improved visibility into the systems across different functions
- 70 -

71. Our EBRM Lifecycle Framework provides the capability to assess and manage
relationship across multiple elements of EBRM
EBRM Lifecycle Framework
Prioritize Relationships Evaluate Relationships Manage Relationships
Segment / Define Set Target Monitor Implement
Identify
Prioritize Criteria Levels Performance improvements
• Identify key • Segment • Define • Assess • Monitor • Identify and
existing relationships evaluation criteria performance of performance of execute
relationship types within each type (quantitative and companies based companies within performance
(suppliers, based on various qualitative) for on pre-defined a relationship improvement
customers, criteria (e.g., each relationship criteria type on a opportunities
channel partners, importance, type and • Set performance periodic basis based on gaps
contract business impact, segment targets for each against the set observed against
manufacturers, financial • Identify data relationship type targets the key criteria
outsourced obligations, etc.) required to and segment
service providers, measure defined
etc.) criteria
Risk Management
Elements of
Performance Management
EBRM
Compliance Management (regulatory, financial, sustainability, etc.)
Information Management
- 71 -

72. The EBRM framework applies across industries, however, the prioritization of
EBRM elements differs
Financial Services Health Care & Life Consumer & Industrial Technology, Media &
Element
Industry Sciences Products Telecom
• High debt levels • Brand damage • Supply chain disruption • Supply chain disruption
Risk • Default/Credit risk • Success rate of drugs • Over-reliance on few • IP security
• Fraud vendors
• Data security • Brand equity • Expensive delays • Co-manufacturing
Performance • System reliability • Co-manufacturing • Higher cost management
management • Quality issues • Project costs and delays
• SEC guidelines • Federal/State/Local • Safety, Health, Environment • IT laws and security
Compliance • Regulatory approvals and regulations policy • Global e-Sustainability
licenses • International and country • Carbon footprint Initiative (GeSI)
regulations • Labor laws • Labor laws
• Customer database • Electronic Health Records • Customer Relationship • Customer Relationship
Information • Portfolio management (EHR) Management Management
Management • Audit • Seamless mobilization of • Vendor and item master • Vendor and item master
health information exchange
(HIE)
Applicability High Low
- 72 -

73. The key to effective EBRM is capturing and managing three inter-connected layers of
data: Strategic, Tactical and Transactional
Data Management Example: Performance Management
Data Category Description Example Data
Data that directly drives shareholder value
Increased
Strategic such as revenues, costs of goods sold, and
Supply Cost
Lost Revenue
cost of capital
Data that is used to help make day-to-day
management decisions
Tactical data is derived by consolidating Purchase Price % of On-Time
Tactical transactional data elements such as Variance Deliveries
contractual price and invoice price to calculate
purchase price variance
Data that describes a business transaction
Transactional such as orders, invoices, payments, and Invoice Price Delivery Date
delivery details
- 73 -

74. EBRM Technology can be classified into 3 broad categories – Transactional, Tactical,
Strategic, in conjunction with the type of data it handles
EBRM Solutions by Data Type
Transactional Tactical Strategic
Hiperos
Aravo
Xcitec
SAP
Oracle
Coupa
Emptoris
CVM solutions
 Tools like ERP and CRM capture  Solutions like spend analysis, e-  Consolidate information from
transactional data useful primarily sourcing, contract management several solutions like ERP, CRM,
at an operational level provide expertise in respective and CLM
domains
 Typically fail to capture tactical or  Provide seamless data integration
strategic data  Can access tactical and even and analysis for “one-stop”
transactional data but fail to enterprise-wide snapshot of
 Some ERP providers also provide assess strategic aspects (e.g., relationships
“upstream” tactical solutions risk)
 Enable comprehensive
 Lack an enterprise-wide view of assessment and management of
business relationships key business relationships
- 74 -

75. EBRM is not just implementation of a technology solution
An effective EBRM strategy requires
 Understanding and prioritizing the key drivers of a business relationship - performance, risk, compliance,
sustainability
 Understanding industry trends and supplier/customer behavior
 Understanding the right data elements to track and maintain in order to monitor the effectiveness of the business
relationship
 Assessing the readiness of an organization to implement EBRM strategy from a people, process and technology
standpoint
 Identifying the right technology based on the business needs
 Understanding the change management practices of the firm
 Developing a roadmap to implement an EBRM technology solution
Deloitte Approach
1 2 3 4
Understand “As-Is” Business Identify Risk Areas and Gaps Develop Improvement
Build EBRM Solution Roadmap
Relationship Landscape based on Benchmarks Opportunities
- 75 -