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Inspiring Success in the Era of Smart - Patrick Quirk INSPIRE Keynote


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Inspiring Success in the Era of Smart - Patrick Quirk INSPIRE Keynote

  1. 1. Patrick D. QuirkCEO, EmptorisInspiring Success in the Era of “Smart”IBM EmptorisStrategic Supply Management
  2. 2. The past year…Economy80% of CEOsare concernedabout uncertaineconomicgrowthVolatility56% of CEOs saidtheir operations wereimpacted by Euro-zone debt crisisRisk29% of CEOscited an impactfrom Japansearthquake andtsunamiEmerging Markets50% of CEOs believeemerging economies aremore important to theircompany’s future thandeveloped markets
  3. 3. …has shaped the corporate agendaGlobal growth and sustainable savingsManage risk and complianceIdentify volatility and maximize predictabilityDrive innovation
  4. 4. Meeting the Business Needs ofChief Procurement OfficersChief Procurement Officers are challenged to:– Drive global growth andsustainable savings– Manage risk and compliance– Identify volatility and maximize predictability– Maximize sourcing and fulfillment flexibilityBuyAdaptiveprocurementand optimizedsupply chain Procurement transformation requires acombination of best practices andthe right technology
  5. 5. What if you could deliver greater value?99% of spendvisibility achievedfor customers onaverage99% 90% 11% 35%90% of contractsundermanagementand compliance11% averagesavings on totalsourced spend35% savingspossible ontelecomexpenses$30B$30 Billion insavingsdocumented in asurveyof our customersAbility to:Analyze $1 Trillionof spendAbility to:Manage morethan 2.5McontractsAbility to:Conduct morethan 25,000eSourcing eventsannuallyAbility to:Seamlesslymanage $1.2Bin telecomexpensesAbility to:Sustain savings
  6. 6. Era of “Smart” Forrester is beginning to characterize many of theSVM-centric offerings as “smart process apps” due tothe deep process, collaboration, analytics, and integrationbuilt into these solutions By connecting the sourcing-life-cycle processes thatare already taking place with these smart process apps,SVMOs can bootstrap themselves out of a transactional-effectiveness mode and into a strategic value driver rolefor the businessSource: The Forrester Wave™: SVM Tool Set, February 25, 2013
  7. 7. Procurement technologies drive innovative performanceSource: IBM Institute of Business Value
  8. 8. New value to inspire customer successPeople• 500 consultantsworldwidesupported by 3,000supply chainprofessionals• Recognized byGartner as BPOleaderProcesses• Market leader inProcurementServices• Over $57B inmanaged spend• Sourcing Councilssupported byanalyticsTechnology
  9. 9. Our mission and our commitmentto customer successDelivering strategic supply andcontract management solutions thatenable our customers to maximizefinancial performance and optimizecommercial risk.
  10. 10. ChallengeSolutionResultsIBM success storyTransform the IBM procurement organization to become anessential corporate function. Standardize procurement bestpractices globally in an effort to reduce costs, generate revenue,increase customer satisfaction and drive supplier innovation andcollaboration. IBM Emptoris Strategic Supply Management IBM Cognos Procurement Analytics IBM ILOG Optimization Realized savings of $7b savings in the last year Common global process and platform Comprehensive strategic sourcing agenda Spend compliance greater than 95% Integrated and automated approach to Business Unit Requirements, RFX,Contracting, and transaction executionIBM spends approximately $36.5 billionannually through its supply chain, procuringmaterials and services globally. The supply,manufacturing and logistics and customerfulfillment operations are integrated in oneoperating unit that has optimized inventoriesover time.Customer Profile“IBM’s platform utilizing Emptoris, Cognos, ILOG offers fast timeto value by enabling predictive analytics. Organizations wholeverage this new technology will be the leaders in the next waveof procurement”– John Paterson, CPO, IBM
  11. 11. Coming in May!IBM’s Institute for BusinessValue (IBV) will deliver itsfirst ever… ProcurementOfficer Study
  12. 12. Contributor Demographics19%2%79%32%8%8%19%33%Survey Respondent Headquarters RegionApproximate Annual Revenue 1128 large, geographically diverse companiescompleted CPO survey, and one-on-oneconversations with senior procurement leaders gavecontext to findings 12% of respondents hold the title ‘ChiefProcurement Officer’, and 88% report directlyto the CPO Geographic representation from 22 countries and allindustry sectors One-on-one interviews conducted betweenDecember 2012 and February 2013 by IBMprocurement specialists Topics covered included procurement managementmetrics, procurement technologies, human resourcechallenges, best practices, and emergingprocurement trends$1bn to $10bn$10bn to $100bnOver $100bnNorth AmericaEuropeAsia PacificLatin AmericaMiddle East & Africa
  13. 13. Strategic Supply Managementaddressing client needsMaximizeand lock insavingswith advancedsourcing andenterprisecontractmanagementcapabilitiesAnalyzeenterprisespendacross systemsand effectivelysource andmanage complexcategoriesEffectivelymanagesupplierinformation,relationships andprocesses toensurecompliance andmitigate riskEnterprise and CategorySpend ManagementSource to ContractSupplier Management,Risk and Compliance
  14. 14. It’s all about ROI An Army of Solution Sellers: +200 peopleutilizing the ROI model and business casetemplate world wide. A lot of value being found:• Customer Loyalty has completed over 350studies in 2.5 years.• +30% of the Pro-forma (L1) studies moveto L2 studies with heavy customerengagement Accuracy, accuracy, accuracy: L1s aretypically within 75% of the achievable value.Working with the customer to adjust movesaccuracy to >90% of achievable value. Recent examples of top brands utilizingthe process: 3M Company AON Apple AT&T Cathay Pacific Airways Citigroup Florida Blue Frontier Communications Altria Group Qantas
  15. 15. Spend Management –Best In ClassEase of UseSuccess Requires AdoptionUncompromisedBest in Class in Every AreaTrue SavingsIdentified & Realized
  16. 16. What does best of breed combination really mean?Transaction EngineChannel Spend ThroughPreferred SuppliersCapture Savings &Ensure ComplianceStrategic SourcingIdentify & Contract WithPreferred SuppliersNegotiate Savings &Favorable Terms
  17. 17. Coupa-Emptoris Solution Back office “strategic” analysisand negotiations Powerful analytics, sourcingand contract processes Negotiate savings fromsourcing and contracting Front office “procure to pay” offering Captures and controls your spend Realize savings from strategic initiativesAnalyzeSourceCreateContractsEnforceComplianceP2P
  18. 18. Coupa-Emptoris SolutionPOWERFUL PARTNERSHIPINDUSTRY ACKNOWLEDGED LEADERSCOMPREHENSIVE SOLUTIONANALYTICS Dashboards Advanced reporting What-if analysisSOURCING RFI, RFQ, RFP, Reverse Auction Bid Optimization Comparison chartingCONTRACTS Buy side – Sell side Approvals Redlining Authoring and negotiationPROCURE–TO–PAY eProcurement Budgets Approvals Inventory CSN Taxes Freight AP/Invoicing Shopping Compliance T&E Transactional reportingAnalyzeSourceCreateContractsEnforceComplianceP2P
  19. 19. Coupa-Emptoris Solution Out of the box integration Business processes mapped toyour requirementsPOWERFUL PARTNERSHIPINDUSTRY ACKNOWLEDGED LEADERSCOMPREHENSIVE SOLUTIONSEAMLESS, INTEGRATED WORKFLOWAnalyzeSourceCreateContractsEnforceComplianceP2P
  20. 20. Joint Coupa & IBM Customers
  21. 21. You can’t afford NOT to get a betterhandle on your data“The Year of the Supplier: Perspectives on Supplier Management in 2011”, published by Aberdeen, May 2011“Nearly one third of respondents don’t know thecosts related to supplier management disruptions.”“44% of organizations don’t know or don’t measuresupplier failure costs.”“only 20% of organizations are tracking suppliercorporate social responsibility.”“supplier data residing in multiple systems”systems “unable to manage the depth of supplierinformation being demanded”
  22. 22. You can’t afford NOT to have yourforecasted savings materialize“The State of Strategic Sourcing: Building a Context for the Next Decade”, published by Aberdeen, April 2011SavingsleakageOff-contractspending and poorcontractmanagementFailure to accuratelyforecast andunderstand businessperformanceUnexpected supplierprice increases
  23. 23. Inconsistent supplier information• Due to multiple procurement and purchasing systemsSingle supplier master record• Cross-referenced to source systems eliminatesduplication and confusionNo single supplier view• Due to unlinked data spread across multiple systemsSingle supplier view• Provides information on performance, risk status,spend, bids and contractsChallenges CapabilitiesSupplier data inaccuracy• Due to lack of data checking and cross-referencingSupplier data governance• Ensures that supplier data is consistent and correctLimited procurement insights• Due to data inaccuracies and lack of consistentstructureAnalytics• Across all procurement applications provides deepprocurement insightsLimited scope of suppl. programs• Due to manual processes for managing supplierinformationProcess Automation• Improving productivity and increasing the number ofsuppliers under managementStart buying smarter
  24. 24. Solutions to help you buy smarterEmptoris Integration ServicesVirtual Supply Master TechnologySuppliersCategoriesEvents UsersOrganizationsRegions BidsProgram ManagementSupplierLifecycleManagementSuite Reporting / e360SpendAnalysisSourcing ContractManagementTelecomExpenseManagementServicesProcurementSuppliersUsersSuppliersUsers
  25. 25. What’s comingIBM Portaland IBM Connectionsfor Social Business
  26. 26. Consistently recognized as a Leader byindependent research firmsMarketLeaderLeadersQuadrantGartnerTelecomExpenseManagementMagic Quadrant2012The ForresterWaveTM:ServicesProcurement Q32010LeadersQuadrantGartnerStrategicSourcingMagic Quadrant2010MarketLeaderMarketLeaderThe ForresterWaveTM:Sourcing andVendorManagementQ1 2013The ForresterWaveTM:ContractLife-CycleManagement Q22011Leading Analyst Recognition
  27. 27. Thank You!