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2018 Key Issues Study

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2018 Key Issues Study

Need more insights on this topic? An On-Demand Webinar on the topic "2018 Key Issues Study" can be accessed here: http://zyc.us/2FalvaE

About the presentation:
Despite an optimistic business outlook in 2018, procurement leaders are still wary about a range of risks with the potential to reduce margins, from access to critical talent to managing cyber-risk.

As per The Hackett Group annual Key Issues Study, procurement leaders indicate they are focused on deepening collaboration with suppliers to meet growth expectations and manage risk.

This presentation will cover the findings from The Hackett Group’s 2018 procurement key issues survey. You can:

1. Understand the reason for efficiency and productivity gap in the department and how to mitigate it
2. Learn how can procurement transform its operations to achieve a higher level of quality and responsiveness
3. Know about the latest technology adoption trends and strategic initiatives specific to building a digital transformation framework.

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2018 Key Issues Study

  1. 1. 2018 Key Issues Study For Procurement Leaders Access an on-demand Webinar on this topic here: http://zyc.us/2FalvaE
  2. 2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay PRESENTERS Richard Waugh VP of Corporate Development Zycus Chris Sawchuk Principal & Global Procurement Advisory Practice Leader, The Hackett Group
  3. 3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay ABOUT THE HACKETT 2018 KEY ISSUES STUDY  For the 2018 edition of The Hackett Group’s annual Key Issues Study, executive management and leaders of finance, human resources, information technology and procurement organizations at a global set of midsized and large enterprises were asked in late 2017 about their strategic priorities and initiatives for the coming year.  The study results, which are analyzed in separate reports for each function, also guided the creation of our 2018 research agenda. Issues cited by participants as top priorities or challenges will be addressed in Hackett research and webcasts through 2018.  Digital transformation is referred to several times in these study results. The Hackett Group definition for this term is the creation of business value by improving customer experiences, operational efficiency and agility by fundamentally changing the way organizations innovate, operate, deliver products and services, engage with stakeholders and execute work, using digital technologies as the enabler of holistic transformation.
  4. 4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CONTENTS Procurement Findings 1. Change in Priorities & Goals 2. Impact of Digital 3. Technology Adoption 4. Link to the Webinar Access an on-demand Webinar on this topic here: http://zyc.us/2FalvaE
  5. 5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 2017 to 2018 Comparison of Top Five most important priorities for Procurement in the achievement of overall enterprise goals CriticalHigh 46% 58% 54% 43% 57% 41% 25% 29% 35% 20% Improve procurement’s business agility Elevate the role of procurement to a trusted advisor Reduce and avoid purchase costs Improve OPEX savings Enhance operational process efficiency 87% 83% 83% 78% 77% 48% 61% 55% 64% 58% 39% 23% 26% 13% 11% Elevate the role of procurement to a trusted advisor Improve procurement’s business agility Reduce and avoid purchase costs Expand purchasing’s scope / influence Deepen influence on complex indirect spend categories 87% 84% 81% 77% 69% 2017 2018 © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  6. 6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Biggest changes in importance of the procurement agenda from 2017 to 2018 include digital transformation support, innovation and supporting company 25% 33% 28% 36% 53% 28% 43% 48% 53% 58% Support the company's environmental sustainability goals Improve supplier delivery performance Improve quality Strengthen/protect the company’s brand Elevate the role of procurement to a trusted advisor to the business Biggest Changes (High) 2018 2017 +5% +17% +20% +10% +3% 0% 5% 14% 9% 7% 23% 8% 23% 23% 25% 38% 38% Strengthen/protect the company’s brand Increase internal stakeholder satisfaction Expand purchasing’s scope/influence Deepen influence on complex indirect spend categories to drive value beyond sourcing Support enterprise innovation objectives Support enterprise digital transformation objectives Biggest Change (Critical) 2018 2017 +15% +31% +16% +9% +8% +18% YoYδ YoYδ Represents part of the Top 5 © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  7. 7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Improving agility, enabling digital transformation and elevating the role of procurement to a trusted advisor are key development areas in 2018 Reduce purchase costs Expand purchasing’s scope/influence Improve procurement’s business agility (i.e., the ability to adapt quickly to meet changing stakeholder demands) Increase internal stakeholder satisfaction Elevate the role of procurement to a trusted advisor to the business Deepen influence on complex spend categories to drive value beyond sourcing Improve CAPEX savings Improve OPEX savings Improve cost avoidance efforts Enhance operational process efficiency Improve purchasing compliance Support enterprise digital transformation strategy, objectives and initiatives Support enterprise digital transformation ModerateModerate/HighAbilitytoAddress Well supported Critical development area Moderate Importance © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  8. 8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Multiple Initiatives Focused on Customer-Centricity  How can Procurement be more responsive to stakeholder’s needs?  Is procurement keeping pace with Enterprise-wide digitization, or do users lack a portal to the procurement process?  Which processes/platforms encourage stakeholders to engage procurement early, extending influence and elevating procurement to trusted advisor status? Source: Key Issues Study, The Hackett Group, 2018© 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  9. 9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procurement Request Management Solutions Reject inappropriate requests eSourcing Contract Management Project/ Savings Management Supplier Management/ P2P ProcurementApproverRequester Sends requests Approves requests Manages and Processes Requests Create Contract Create Sourcing Event Onboard a Supplier Pre-purchase Request Supplier Performance improvement PO Amendment Contract Amendment Task Assignment Initiating a Project Price or terms change request by Supplier Configurable Flexiform Configurable Approval Workflow Conditional Logic / Rules Calculated Fields Delegation Comprehensive Reporting Process Use Cases Features
  10. 10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Importance in improvement of procurement's capability or performance levels in 2018 72% 45% 55% 60% 55% 46% 52% 17% 38% 23% 17% 21% 28% 20% CriticalHigh Improve procurement analytical, modeling and reporting capabilities Obtain more value from existing categories through category management Increase spend influence through strategic sourcing efforts Align procurement skills and talent with changing business needs Measure and manage procurement performance and business value Obtain more value from existing suppliers through supplier relationship management (SRM) Improve procurement agility © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  11. 11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procurement needs to stay focused on improving procurement agility, talent and SRM Obtain more value from existing categories through category management Obtain more value from existing suppliers through supplier relationship management Increase spend influence through strategic sourcing efforts Improve procurement analytical, modeling and reporting capabilities Measure and manage procurement performance and business value Align procurement skills and talent with changing business needs Integrate contract management and procure to pay efforts Modernize (i.e., consolidate, upgrade, migrate) procurement application platform(s) Obtain more value from the transactional purchase- to-pay (P2P) process automation Well supported Critical development area Moderate Importance ModerateModerate/HighAbilitytoAddress © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  12. 12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Few Satisfied with Ability to Measure Value to Business  How can Procurement more effectively measure and communicate performance and value delivered to the business?  In particular, how can Procurement align more effectively with Finance to ensure value contributions are acknowledged?  Which processes/platforms can enable Procurement to create credibility with the C-Suite and sign- off from the CFO on value delivered? © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  13. 13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Financial Savings Management Challenges/Solutions Challenges • Most organizations tracking with spreadsheets/home-grown tools • Existing tools lack Finance collaboration and approval workflow • No standard definition of savings calculation and allocation methods exists, and lifecycle tracking visibility is missing Solution Align: • Import baseline spend from Spend Analytics • Establish Finance-approved spend baseline and savings calculation formulae on common, enterprise platform Validate: • Employ workflow to obtain validation from stakeholders • Map savings projects to stakeholders and approvers Analyze: • Segregate savings by type, e.g. cost reduction vs. avoidance, and accounting period • Identify savings by project/sourcing strategy • Map savings impact to P&L, Balance Sheet, Cash Flow Source: Gartner/Rutgers Survey
  14. 14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Case Study – Financial Savings Management Need  Inconsistent Spend baselines skew savings opportunities:  Old Method: Spend = PO – overstates actual spend in some cases and understates others by excluding non-PO categories  New method: Spend = Paid Invoice (PO/Non-PO), P-Card, Expense Report  Excel, E-Mail based savings tracking methods inefficient and inconsistent – lacks approvals, version control, agreed upon spend baseline and consistent calculation and allocation methodology  Little collaboration across Business Units and geographies due to lack of enterprise-wide visibility and accessibility  Finance does not acknowledge Procurement-claimed savings due to lack of standardized savings calculation and tracking methodology Business Objective: To align Procurement and Finance and establish Procurement credibility with C-Suite by deploying Enterprise-wide savings tracking platform and methodology
  15. 15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Case Study – Financial Savings Management  CFO sponsorship ensured Finance alignment  Financial Analysts engaged up-front to establish spend baseline and methodology – e.g. accounting treatment for CapEx vs. Opex, Cost Reduction vs. Cost Avoidance  Global platform rolled out as “Single Version of Truth” with:  Full audit trail and version control  Secure user access by BU/Div/Dept/Cat  Fx conversion and multi-lingual UI  Flexible/multiple savings types/definitions  Approval workflow sign-off by budget owner and Finance  Dashboard analytics tracking and reporting  CFO views platform as “tool that saves me money” – increased # savings projects, global spend leverage, and higher savings rate  Extending procurement’s sphere of influence – savings tracking platform applied to non-procurement savings projects (e.g. Reorg, ERP Consolidation, M&A), Budgeting/S&OP, Cash Flow Forecasting Solution Results 600+ Savings Projects Initiated $40-50M Annual Incremental Savings Realized To Date 000’s of Users 40 Power Users Create Savings Projects and Collaborate with 000’s of Stakeholders (600 Financial Analysts Alone) 25% Productivity Gain Category Managers Save 2 Hours per Day from Data Gathering Tasks
  16. 16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procurement major improvement initiatives and alignment with critical development area 43% 52% 57% 59% 65% Enhance operational process efficiency Support enterprise digital transformation* strategy, objectives and initiatives Deepen influence on complex spend categories to drive value beyond sourcing Reduce purchase costs Expand purchasing’s scope/influence 50% 50% 53% 58% 58% Integrate contract management and procure to pay efforts Obtain more value from existing suppliers through supplier relationship management (SRM) Obtain more value from existing categories through category management Improve procurement analytical, modeling and reporting capabilities Modernize procurement application platform(s) Enterprise Value Related Issues Critical Development Area Other Development Area Procurement Performance Related Issues Percentage of procurement organizations reporting major performance improvement initiative © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  17. 17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay P2P/Contracts Integration Seen As Critical Development Area 25% 49% Peer Top Performer 10% 15% Peer Top Performer Indirect E-Catalog Transactions Indirect E-Catalog Spend If even the Top Performers capture just 15% of Indirect Spend through Catalogs, how can they ensure compliance on the non-catalog purchases that account for 85% or more of Indirect Spend? © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Purchase-to-Pay Study, The Hackett Group, 2017
  18. 18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay How It Works: P2P/Contracts Integration for Non-Catalog PURCHASE ITEMS DIRECTLY FROM CONTRACTS (Non-catalog Purchases) “Contract Lock”: P2P/Contracts Process Integration TAG THE CONTRACT NUMBER IN ALL PURCHASE REQUESTS VIEW TIERED BASED PRICING FROM CONTRACTS REVIEW TERMS AND CONDITIONS IN CONTRACT ATTACHMENTS WHILE ORDERING LINK NON-PO INVOICES WITH EXISTING CONTRACTS VIEW PAST AND EXISTING REQUISITIONS @On-boarding to flip contract-to-catalog @Requisition for non-catalog pricing/terms @PO for contract reference/utilization @Invoice for non-PO invoice resolution P2P/Contracts Integration Touch Points:
  19. 19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Procurement’s current level of concern about each of following types of risks / Level of change anticipated in next two years for each type of risk 31% 29% 24% 15% 26% 9% 3% 3% 54% 57% 56% 59% 37% 43% 49% 38% 14% 14% 21% 26% 37% 49% 49% 59% Geopolitical risk Financial crisis IP theft / industrial espionage Disruptive innovation Regulatory risk Intensified competition Access to critical talent Cyber / information security Minor concern Moderate concern Major concern 6% 3% 9% 3% 76% 76% 79% 59% 61% 56% 50% 45% 18% 21% 21% 32% 36% 44% 50% 55% Decrease Neutral Increase © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  20. 20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CONTENTS  Procurement Findings 1. Change in Priorities & Goals 2. Impact of Digital 3. Technology Adoption 4. Link to the Webinar Access an on-demand Webinar on this topic here: http://zyc.us/2FalvaE
  21. 21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Digital transformation is poised to fundamentally change procurement… but few have the strategy or resources in place to make it work 42% 40% 53% 53% 95% 93% Digital transformation will fundamentally change the way procurement services will be delivered over the next 3-5 years. Digital transformation will offer step-change performance (cost, quality, cycle-time, etc.) improvement of the procurement function. Agree Strongly Agree Importance of each objective or issue 48% 45% 40% 18% 17% 6% 66% 62% 46% Our procurement function has developed and is executing a digital transformation strategy. Our procurement digital transformation strategy is aligned with or integral to the enterprise digital transformation strategy. Our procurement function has the resources and competencies in place to execute the digital transformation strategy. Procurement execution capability Procurement impact © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  22. 22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Case in point: only 66% have a digital transformation strategy; and even fewer report having the right resources and competencies in place today Report that digital transformation will fundamentally change the way procurement services are delivered over the next 3-5 years 95% 66%… but only have actually developed a strategy for getting there. … and only 46% report having resources and competencies in place to execute the strategy today © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  23. 23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Digital Transformation Comparison: business services functional executives believe it will have a profound impact, BUT the vast majority are not ready for it … but only 97% 35% Finance report having resources and competencies in place to execute a digital transformation strategy 94% 46% HR 94% 36% IT 96% 46% Procurement 100% 50% GBS Organizations Source: Key Issues Study, The Hackett Group, 2018 97% 35% Finance report having resources and competencies in place to execute a digital transformation strategy 94% 46% HR 94% 36% IT 95% 46% Procurement 100% 50% GBS Organizations © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018 Report that digital transformation will fundamentally change the way services are delivered over the next 3-5 years
  24. 24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay A small percentage of staff will lead the charge to digitally transform procurement processes Digital Transformation Organizational Impact 8% 30% 27% Percentage of procurement staff currently involved in execution of digital transformation initiatives Percentage of procurement processes in scope of digital transformation initiatives in 2018 and 2019 Percentage of total procurement roles that will be impacted by digital transformation in 2018 and 2019 © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  25. 25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay While a majority of procurement organizations have either completed or are currently piloting digital transformation, they note only a moderate ability to support it 18% 35% 21% 26% Digital Transformation projects over the past three years No plans Exploring Piloting Completed 9% 57% 30% 4% Ability to support Digital Transformation (strategy, objectives and initiatives) Low Moderate High Very high © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  26. 26. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CONTENTS  Procurement Findings 1. Change in Priorities & Goals 2. Impact of Digital 3. Technology Adoption 4. Link to the Webinar Access an on-demand Webinar on this topic here: http://zyc.us/2FalvaE
  27. 27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay 21% plan to consolidate to a single source to pay platform… but only 10% have achieved that goal today 10% 17% 21% 21% 31% Our goal is to consolidate all source-to-pay applications on a single platform but we still have disparate tools in place today We have a “best of breed” strategy which allows us to pick and choose individual solutions based on how well they meet our requirements We use our ERP provider for all source-to-pay processes with only limited exceptions We use our ERP and a single source-to-pay solution for the majority of processes We use a single source-to-pay software provider with limited exceptions Which statement would you say best describes your source-to-pay technology strategy? © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  28. 28. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Many Organizations Plan to Deploy Single Platform S2P Suite  Which modules constitute a full S2P Suite?  What are the use cases enabled through a single integrated S2P suite? © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  29. 29. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Connecting the Dots….for a Single Version of S2P Truth Request Management Project Management Spend Analytics Sourcing Contracts Supplier Management Supplier Performance eProcurement eInvoicing Request and track Contract creation Create events from requests Create, track and manage sourcing projects Review past performance before inviting suppliers Create sourcing projects Convert PRs to RFP and award POs Validate contract terms for catalogs, PO to contract matching Update preferred vendor lists Refer master data for creating invoices Review supplier history Create, track and manage contracts Transfer Attachments, T&Cs, Pricelist for Contract creation Create and invite potential suppliers Control Layer Strategic Layer Operational Layer Refer supplier data Review supplier scores before ordering
  30. 30. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay When it comes to mainstream technology in procurement, cloud based applications and advanced analytics will lead in adoption over the next 2-3 years 45% 79% 22% 67% 16% 60% 20% 63% 20% 40% 11% 21% 36% 9% 47% 14% 44% 23% 38% 21% 33% 35% 29% 42% 82% 88% 69% 81% 60% 84% 58% 84% 53% 74% 40% 63% Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Currently 2-3 Years Cloud-based applications/SaaS Data visualization tools Master data management technologies Advanced analytics Mobile computing Social media/collaboration Mainstream adoption Limited adoption © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Mainstream Technologies 74% 2.1x 3.9x 3.1x 2x 88% Source: Key Issues Study, The Hackett Group, 2018
  31. 31. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Business-to-Business marketplaces are becoming increasingly common among procurement organizations 47% 35% 12% Using a Supplier Network as part of a larger solution (e.g., Basware, Coupa, Jaggaer, Perfect Commerce, SAP Ariba, Taulia, Tradeshift) We are currently evaluating the options for using a Supplier Network We have no plans to use a Supplier Network © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  32. 32. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay When it comes to emerging technology in procurement, RPA, IOT and Cognitive / AI will lead in adoption over the next 2-3 years 9% 33% 7% 30% 4% 16% 17% 7% 18% 23% 18% 33% 11% 35% 11% 26% 9% 28% 27% 56% 24% 63% 16% 51% 11% 43% 9% 35% Current 2-3 years Current 2-3 years Current 2-3 years Current 2-3 years Current 2-3 years Internet of things Robotic process automation Cognitive computing/artificial intelligence Virtual assistants/chatbots Blockchain Mainstream adoption Limited adoption Emerging Technologies 3.7x 4.5x 3.6x 3.9x 3.9x © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  33. 33. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Mainstream & Emerging: Some procurement organizations are piloting emerging technology with RPA, blockchain, cognitive/AI and chatbots 38% 33% 31% 31% 29% 24% 24% 20% 16% 13% 7% Robotic process automation Blockchain Cognitive computing / AI Virtual assistants / chatbots Master data management technologies Advanced analytics Social media / collaboration Internet of things Data visualization tools Mobile computing Cloud-based applications / SaaS % of procurement organizations currently piloting the technology Mainstream Technology Emerging Technology © 2018 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited. Source: Key Issues Study, The Hackett Group, 2018
  34. 34. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay Speaker Contact Information Richard Waugh VP of Corporate Development Zycus Email: richard.waugh@zycus.com Chris Sawchuk Principal & Global Procurement Advisory Practice Leader, The Hackett Group Email: csawchuk@thehackettgroup.com
  35. 35. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay CONTENTS  Procurement Findings 1. Change in Priorities & Goals 2. Impact of Digital 3. Technology Adoption 4. Link to the Webinar Access an on-demand Webinar on this topic here: http://zyc.us/2FalvaE
  36. 36. Need more insights? An On-Demand Webinar on the topic "2018 Key Issues Study" can be accessed here: http://zyc.us/2FalvaE Follow us on social media for more updates! Twitter | LinkedIn | Google+ | Xing | SlideShare
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