Technology additions by themselves rarely pay-off and can be prone to adoption issues, resistance to change and actually impede the advantages we expect from them. By starting off with a Center of Excellence (COE) framework from the beginning we can set these initiatives up for success and begin delivering results immediately.Technology additions by themselves rarely pay-off and can be prone to adoption issues, resistance to change and actually impede the advantages we expect from them. By starting off with a Center of Excellence (COE) framework from the beginning we can set these initiatives up for success and begin delivering results immediately.

1. Leveraging a Center of Excellence
Strategy for Procurement Tech Ops
Lessons Learned and Insights Gained
Bob Amareld
AD Strategic Operations & Technology

2. #scoutspark
Bob Amareld, MS, MBA Strategic Operations & Technology
Bob Amareld leads the Strategic Operations and Technology function for Global Procurement at
Biogen. In this role, he has led the digital transformation of procurement by bringing in
technology such as automated spend analytics, E-sourcing, advanced data analysis, market
intelligence, Contract Lifecycle Management along with easily searchable catalogs and spot buy
services. He has also created 3 distinct Centers of Excellence supporting Biogen globally, which
include our BPO Buying Desk COE, our CLM COE along with our Strategic Sourcing COE. These
digital transformation activities and strategic off-shoring initiatives have supported and enabled
Biogen's procurement team to achieve savings totaling over $500MM in just 3 years.
Additionally, Bob has diverse experience in Procurement, Sourcing, Biomedical and Process
Engineering, Intellectual Property Law, Technology Transfer and R&D. He has Masters degrees in
Business and Biomedical Engineering from UNC and Johns Hopkins respectively.
Introduction: Who am I

3. #scoutspark
AGENDA
Introduction Biogen & Strategic Ops1
Center of Excellence Models and How
We’ve Leveraged Them
2
Strategic Reasons for Each Model3
Our Results with the COE Model4
What We’ve Learned5
Key Take-Aways6

4. Caring Deeply.
Working Fearlessly.
Changing Lives.TM
At Biogen, our mission is clear: we are pioneers
in neuroscience. Biogen discovers, develops,
and delivers worldwide innovative therapies for
people living with serious neurological and
neurodegenerative diseases.
>115kPATIENTS TREATED WITH
OUR BIOSIMILARS*
12LIFE-CHANGING
MEDICINES

5. #scoutspark
Varying Center of Excellence Models
• >30 Individuals on 3 Continents
• 4 COE Teams
• Supporting Infrastructure for ~$4B Spend
• Built to Enable Digital Transformation
• Built to Generate Actionable Data
Introduction: Strategic Operations & Technology
Strategic Sourcing
COE
• Centralized Pure COE
Model
Contract Life Cycle
Management COE
• Federated or Hybrid COE
Model
Buying Desk
• Centralized Off-Shore
COE Model (BPO)
Supplier Diversity
• Decentralized Best
Practices & Reporting
Procurement
Strategic Ops
& Tech

6. #scoutspark
Why Decentralize?
• Limited or No central team
• High Influence on Shared Goals for Broader org
• No Tech or Super Intuitive User Interface
• Basic Support for the Function
• Lowest Cost, but Not Always Best Controls
• Automated Reporting Available
Decentralized Virtual COE or No COE
Supplier
Diversity
Manager
Influence Org
to Attain
Goal/ Report
External
Diversity
Memberships
Automated
Diverse
Spend
Reporting &
Supplier
Certification
Best
Practices and
Supplier
Enablement

7. #scoutspark
Why Go Federated?
• Small Team maintains Tech or Process
• Centralized Tech Ownership & Support
• Decentralized Process Ownership & Data
• Intuitive UI for Many Decentralized Users
• Data Quality is Automated / Mandated
Federated or Hybrid COE Model
Central
CLM Tech
and Small
COE
Stakeholder
Contract
Build
Internal/
External
Templates
Stakeholder
Meta-Data
Addition
Stakeholder
Data,
Reporting &
Search

8. #scoutspark
Why Centralize?
• Owns Specific Process and Technology
• Core Support for the Function
• Single Source of Truth in Reporting
• Relieve Strategic Teams of Tactical Work
• Consistent Relationships & Source of Talent
Centralized Pure COE
Strategic
Sourcing
COE
E-Sourcing &
RFP
Management
Market
Intelligence
Data
Stewardship &
Dashboarding
Spend Visibility
& Analytics
Templates &
Process
Standardization
Sourcing Intake
and Routing

9. #scoutspark
Why go off-shore?
• Technology isn’t Always the Answer
• But Leverage Tech as BPO Control
• High Volume / Non-Strategic
• Labor Arbitrage Increases ROI
• Well Defined Process and Intake Channel
• Supporting Multiple Languages
Centralized BPO COE
USA
LATAM
EU
Mumbai
Prague
San Jose
Service Delivery Supported Markets

10. DecentralizedFederatedCentralized
Strategic Reasons for Each Model
Own the System &
the Process
Adv
• Embed Expertise
• Farm for Category Talent
• Off-Shore if Non-Strategic
Dis-Adv
• More People Expense
• Increased Complexity
Own the System
Adv
• Super –User Program
• Lower FTE
Dis-Adv
• Lack of Control
• Data Quality Ownership is
outside the team
Own Deliverable
Influence Those
Delivering
Adv
• Lowest Cost
• High Influence
Dis-Adv
• No Control
• Limited Ability to Impact

11. Real World Results
Strategic
Sourcing COE
↑30% Productivity
~$500MM Savings
Over 3yrs
↑Analytics and Data
Generation
↑Source of Talent
↓Turnover
E-sourcing
BPO COE
↑5X ROI
@35% penetration
↑Tail-spend managed
~$70MM Annually
5-10% Savings
↑Customer Service
4.5/5 CSAT
CLM
Federated COE
>2500 Users
↑30%y/y Adoption
↑Compliance
75k Contracts
Cleansed
↓Data Quality

12. #scoutspark
Strategic Operations Multi-COE Learnings
Over-Powered, Poor
UI Tech Creates a
Blackbox of Support
Limited adoption
Increased resistance
UI Beats Technical
Capability
Federated Models Limit Data Quality
Centralized has best quality
Decentralized is cheapest
Data Connection Mapping is
Challenging
Change Management
is a Core Competency
Hire on Potential
You don’t need 10 yrs
analytics experience

13. #scoutspark
You are in a Strategic Sourcing Organization
• Non-Standard Analytics Formats
• Category Managers all Running Events “Their Way”
• Lacking a Central Data (events, suppliers, spend, etc)
• Need to impact more events with less people
• Un-managed non-strategic tail-spend (BPO COE)
• Data doesn’t provide actionable insights
Signs That You Are Ready for a COE

14. #scoutspark
ROI is King
How to Justify the Head-Count
Earn Your Right to Expand
with Data & Metrics
TAT /$Impacted /$Saved / # Events/
CSAT / Benchmarking
Prove the Model with
Temp to Hire
Frameworks
E-Sourcing COE and BPO
Tail-Spend has had the
Highest ROI of 5-10x+
Link to a Corp
Compliance Initiative

15. 1. Technology doesn’t adopt itself, add a COE, get a good UI.
2. People are the key to successful use of new tech.
3. Treat every initiative like a Start-Up company. Feet on the
ground. White-glove service. Voice of the Customer.
4. Listen and Pivot when things don’t go right.
Key Take-Aways

16. Thank You!
Bob Amareld | Bob.Amareld@Biogen.com