Introduction to HICX Solutions and why clients implement supplier information management systems.

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Briefing on HICX Solutions
November, 2016

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Supplier management definitions and value propositions
Acronym Definition Scope How it creates value
SIM Supplier information management, to provide a single central
source of truth that brings together supplier information,
master data, and external data.
100% of supply base  Underpins all other enterprise systems that need accurate supplier data i.e. ERP,
P2P, analytics, sourcing, contract management.
 Efficiency gain through speed of information access and digitising the creation
and validation of data.
 Opportunity gain through cross enterprise collaboration.
 Compliance gain (risk reduction) by ensuring all required legislation and
corporate standards are met.
 Savings gain through new ability to leverage enterprise wide terms and adoption
of contracts.
 Fraud mitigation through effective governance and segregation of duties.
SLM Supplier lifecycle management, the process of onboarding,
maintaining, developing, and exiting suppliers.
100% of supply base  Governance through defined end to end lifecycle processes
 Cost reduction through operational efficiencies.
 Risk mitigation
 continuous improvements in value and operations
MDM Master data management, the ability to build data models,
define workflows for data governance, provide match and
merge, ETL and integration capabilities to extract data and to
push information back into the ERP systems.
100% of supply base  Opportunity gain by aggregating information from multiple systems to deliver
business intelligence.
 Identify data quality issues to enhance analytics and operational procedures.
SRM
(risk)
Supplier risk management, identifying supplier related risk.
Focuses on monitoring and mitigation of business risk to align
with appetite levels.
% of supply base  Identify supply chain risks early to develop alternative options or put in place
mitigation strategies.
SPM Supplier performance Management, measurement of
adherence to KPI’s and SLA’s. Focuses on operational
performance and corrective action plans to ensure business
needs are met.
% of supply base  Drive operational efficiency through supplier adherence to service/performance
levels.
 Drive cost benefits through compliance to contract terms.
SRM (relationship) Supplier relationship management, to become the customer of
choice. Focuses on strategy, people, new products and
services.
% of supply base typically
segmented by spend/risk.
 4-6% post-contract benefits in cost reduction.
 Access to key supplier resources for innovation, speed to market.
 Realisation of deals done.
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HICX deliver global 3rd party management solutions to the world’s
largest, most complex, highly regulated organisations.
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Chicago
(N.A. Headquarters)
London
(Global Headquarters)
Dubai
(MEAA Headquarters)
> OUR COMPANY > OUR CUSTOMERS
Current State:
Over 1.2 MILLION suppliers under
management
Global delivery, regional support
100% Self-funded
Foundation:
Operational Master Data
Management/Governance
Company History:
GTM: Europe in 2011; MEAA in 2011;
North America in 2012
Pre-GTM: 2+ years of research; 5 years of
development (3x rollback, 100% code
internal)
Average Customer Profile:
$45.4bn in revenue/turnover
(range: $1bn to $108bn)
10+ system integrations
(range: 0 to 96)
36k suppliers
(range: 800 to >1.2m)
Key Sector Experience:
Aerospace & Defense,
Energy,
Pharmaceutical,
Managed Service Providers,
Banking & Financial Services

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What motivates our clients to invest in 3rd party management?
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Reducing the burden of
inquiries on our
organization
4%
Improving response
times to supplier
inquiries
5%
Improving supplier
relationships
17%
Improving
transparency and
communication
among suppliers
18%
Improving supplier
validation/reducing
risk, and improving
adherence to
corporate vendor
compliance
regulations
26%
Increasing supply
chain efficiency
30%
TOP GOALS FOR MANAGING SUPPLIER BY
ORGANISATIONS >$2BN
Drivers for
3rd party
programs
Regulation
or other
external
factors
Business
change
Cost
reduction
Risk
incident

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Macro trends impacting vendor management technology
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Digitisation is
changing business
models
• Airbnb, who own no
accommodation, put up
more that 30 millions
guests this year;
• Uber, who own no cars,
drives 3 million people
every day
The cloud is
mainstream
• Nearly a decade after it
started as an internal
project for a group of
engineers, “Amazon Web
Services is a $5 billion
business and still growing
fast — in fact it’s
accelerating,” Jeffrey P.
Bezos
Analytics for the
masses
• Information is becoming
a self-service commodity
i.e. Qlik, Tableau, Domo,
etc.
• (Domo, founded in 2010,
just secured $450m in
funding and is
approaching $100m
revenues.)
Artificial
intelligence is
imminent
• Watson uses natural
language processing and
machine learning to
reveal insights from large
amounts of unstructured
data – IBM are
commercialising this
capability now.
New comms. are
social and
collaborative
• The previous generation
of chat apps (i.e. skype) is
giving way to a new
breed of team tools such
as Slack and Rocket.
• Block chain implications
(central collaborative
register of truth).
Supplier information strategy
Present Future
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Clients seek a central process for supplier management with
decentralized ownership
Challenges
• Processes cannot be 100% harmonised, especially one as localised as supplier onboarding
• Onboarding requirements vary from Corporate, to specific Divisions, local needs and the nature of the supplier
relationship
Division
Corporate
Local Organisations
USA
China
•Basic Due Diligence questionnaire (inc. Financial)
•Legal Documents – VAT registration, business
license
•Ensure compliance with corporate requirements.
•Assess the reputational risk of suppliers up-front, before commencing
business.
•Collect tax forms
•Data Privacy / Information Security
• Supplier Diversity
•Ensure compliance with regional standards for all suppliers
delivering services in a particular commodity/country.
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In a typical client scenario, complexity is the key limiting factor
Client
Commercial Retail Investment
AmericasEuropeMiddle
East
Asia
Central procurement function activities
• Master Data Management
• Spend Management
• Category Management
• Contract Management
• Compliance
• Relationship, Risk, & Performance
Management
• Etc.
Decentralized (local) and operational procurement activities
Non-procurement function activities
Marketing
•Agency Management
•Payments/expense compliance
Information Technology
•Information Security
•Audits
Finance
•Master Data
Management
Compliance
•Quality
•Health & Safety
•Data Privacy ERP ERP ERP
Supplier Onboarding | Master Data Management | Req2Pay | Contract Management | Relationship, Risk & Performance Management |etc.
Spend Cat. 1
Spend Cat. 2
Spend Cat. 3
Does not empower Corporate to:
 deliver vision and strategy
 deploy policies and standards
 define high level reporting standards
Does not enable Business Units to:
 apply business specific vision and
strategy
 implement business / industry specific
standards and policies
 define SOPs and implementation
guidelines for Corporate policies
 achieve more detailed business specific
relevant reporting standards
 retain direct line responsibility for local
performance
Does not support Local Country to:
 apply very detailed reporting needs
 transact daily with suppliers
 meet specific local legal requirements
 show content in local language
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Global, local and cross-functional variation

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Historic options clients use to solve their problem
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Large scale ERP
consolidation
 Costly
 Slow
 Not agile for future
change
Global process
harmonisation
 Costly
 Slow
 Leaves many
‘exceptions’

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HICX is a new solution with many benefits…
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Iasta
Bravo
Dynamics
JDE
N America, S
America
OracleEurope
NAMET, RUB,
Africa, N Asia,
SEAA
India,
Sri Lanka,
Nepal
Tungsten
Asia
Coupa
Europe
Ariba
Americas
Payable Systems
BI Stack
Validation
Sourcing
Tools
TransactionData
SAP
Global Vendor On-
boarding Portal,
workflow & governance
Vendors
Sustainability
Data Capture and
Validation
FTE Benefit: Fully integrated and
automated global vendor on-
boarding portal removes need for
manual data entry by MDM team
Data Visibility Benefit:
Connect peripheral data
to vendor records.
Requestors/
Procurement
ERP Systems
Supplier Engagement Benefit:
Provide invoice visibility and
data maintenance to vendors
Downstream Benefit: BI
is now working on
accurate, validated data.
P2P Benefit: ERP vendor
masters are clean and
accurate improving payables
performance
Value Creation Benefit: Central
and local supplier performance
management is enabled
Risk Benefit: All
necessary due
diligence is mandatory
IT Benefit: Maintain
ERP architecture
without costly change
Governance Benefit:
Single global portal that
reflects local
requirements
User Benefit: Connects
all relevant systems to
avoid duplicate effort

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With HICX, clients improve the full spectrum of 3rd party management
Multiplelegalandregulatoryrequirementssupported
Fullintegrationtolegacyarchitecture,lowchangeimpact
Flexibledatamodelwithrobustdatastandards
Organisationmodelreplicationandlanguagesmatched
Global/localuserworkflowandreportingneedsfulfilled
Complexity factors are no
longer a barrier to progress
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Phase outOn-boarding
Assessment
Development
Selection/request
Manage performance
and innovation
Manage data and
due diligence
Manage risk, ensure compliance
Manage
portfolio volume
Manage new
adds
Manage relationship
Documents & MetricsMaster Data
Match, merge, integrate
SyndicationMeta Data
Manage data
Reports,
Dashboards,
BI
Users are
empowered
to act
Data quality
is mastered,
maintained,
& integrated
Processes
are digitised
and
automated
1
2
3
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Etc.
BvD
Modules that clients can select from
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Dow
Jones
OracleSAP
D&B
Supplier Portal
Comms Supplier
Discovery
Supplier
Onboarding
Risk &
Compliance
Management
SLA, Metrics
Performance
Management
Supplier Data
Management
Document
Management
Dashboards &
ReportingMDM
Integration
MDM Match
& Merge
3rd Party Data
Integration
Contract
Management
Contract
Creation
Invoice
Visibility
Problem
Solver
Audit
Management
Supplier Lifecycle
and Master Data Management
Golden
Record
Sanctions
Lists

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Why HICX are different to other SIM players
We started from an MDM base which makes us, and our capabilities, unique among our
competitors.
With Supplier Information Management the processes are complex, the data volumes are large, there
are many organisations, the business requirements change frequently, and organisations have existing
systems. You need to be able to collaborate in real-time.
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HICX proprietary integration
toolkit enables the platform
to quickly integrate with
external data sources and/or
applications.
A completely adaptable and
extendable data model, not
database dependent.
The ability to collaborate and
enforce global standards, yet
enable local flexibility.
Users empowered to define
and create highly interactive
supplier initiatives which are
immediately searchable and
reportable.
Define metrics using any of
the data within the system
with our unique combination
of search, document capture,
and extendable data model.

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HICX service proposition
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2. We Implement 1. We Design
Data
Governance
Data policies,
Business process
Management
Current State and
Benchmarking
Target State Design and
Strategy
Information Architecture
Integration and Reporting
Metadata,
Master Data,
Reference Data,
Data Quality and
Cleanse
Author, store, share,
enrich, consume, archive.
Due Diligence, Performance &
Risk
Cross-functional oversight
committee
Global and Local Data
Stewardship
3. We Run
Data cleanse & enrichment, User/Supplier support desk services, Supplier validation.
Key vision and
strategic
considerations
Governance and
functional
ownership
framework
Organisational
model with
roles and
responsibilities
Key processes
for vendor data
lifecycle
management
Data model and
hierarchy
structure
Application
landscape
Enterprise
Technology Managed Service Providers – managed suppliers across
customers to streamline processes and provide decision
support & analytics. Established contract repository,
document collection, & compliance.
Risk Management – centralized risk management processes
for reputational risk (sustainability), health & safety,
environmental and quality. Automated data collection, risk
calculation, supplier segmentation and risk mitigation.
Supplier Lifecycle & Master Data Management– centralized
master data management and lifecycle management
processes; large volumes of suppliers and integrated to
multiple ERP systems (10+ in all cases).
Supplier Master Data Strategy – establishing a blueprint for
global vendor master data, add/change/delete process,
vendor hierarchy structure, system map and integration
approach to connect all data points for operational analytics.
Supplier Management Requirements – establishing business
wide requirements across supply chain, strategic sourcing,
quality assurance and group procurement to create a needs
analysis and case for change.

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Typical program work streams
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Project
Management
Process
Design
Change
Management
System
Data
Migration
System
Integration
Initiate project
Current state, Gap
analysis
Source data
quality analysis
Source analysis
Manage stage boundaries
Future state and
Roadmap
Migration plan
Field mapping
and governance
Configure
application
Data cleanse
Feed connection
Factory and user
testing
Data load
Data syndication
Transition to BAU
team
Pilot
Close project
Cutover to BAU
Strategy OCM plan’s
Commence
comms
Train Support
Design &
Discovery
Build &
Configure
Testing &
Acceptance
Deploy SustainMobilisation
BusinessTransformationTechnologyTransformation

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Author
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Grant Watling
Chief Customer Officer
Specialist in supplier management, master data management and analytics, working with Fortune 500 companies from
consumer goods, defence, energy, and pharma sectors to improve their vision, strategy, governance, policies, organisation,
processes, data, and systems.
Key skills include business transformation, multi-geographic team and programme management, client account management,
and business partner development.
Grant is a guest lecturer at the University of Essex, has spoken at conferences across Europe and Asia, and writes on the topics
of:
• Enterprise information management (EIM), Data Quality (DQ) and Master Data Management (MDM).
• Supplier life cycle management (SLM) encompassing supplier relationship management (SRM), supplier information
management (SIM), supplier performance management (SPM).
• Supplier innovation management and development.
• Customer success and organisational excellence.
Contact:
grant.watling@hicxsolutions.com
+44 7974 223 063