Implementing a new workflow solution in an existing system environment and integrated with a scanning solution can be extremely complex. If you’re also going live in 20 countries while simultaneously centralising to a shared service operation your project just got a whole lot more challenging! In this presentation from The Accounts Payable Tech Summit 2011 given by Urs Jraeffker, Project Manager at IKEA, shares how IKEA: • Implemented the Basware solution for workflow and integrated this with a scanning solution across five countries • Centralised transactional work simultaneously in Poland and China • Is overcoming resistance to change with its current roll out across 20 countries

1. Global automation domination:
How do you roll out one workflow
solution across 20 countries?
The Accounts Payable Tech Summit
London, UK
6th December 2011
By Urs Gräffker, Project Manager at IKEA
1

2. Agenda
IKEA in brief
P2P preconditions
Darwin project
Darwin solution
Biggest challenges
Where we are today
Key lessons learned
Urs Gräffker 2 19-Dec-11

3. IKEA – for the many people
OUR VISION
To create a better
everyday life for the OUR BUSINESS IDEA
many people
To offer a wide range of well-
designed, functional home
furnishing products at prices so
low that as many people as
possible will be able to afford
them
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4. IKEA is set for growth
125 stores in 15 countries (1996)
280 stores in 26 countries (2010)
143 million store visits (1996)
626 million store visits (2010)
2,400 suppliers of commercial goods (1996)
1,000 suppliers of commercial goods (2010)
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5. Some facts on the P2P status quo
Procurement
Global deals sourced from
global purchase organisation
in Sweden
Large national deals handled
by national purchasers
The rest: locally
Procurement tool: iShop –
implemented world wide
Number of suppliers: ?
Two Finance BSC‘s
(Business Service Centres)
1.Shanghai for Asia Pacific
and North America ~ 1.5 million
invoices for indirect material and
2.Poznan for Europe services per year
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6. How have we handled invoices for
indirect material and services?
In many countries manual handling of indirect
material and service invoices
T
O A time consuming and costly adminstrative
process
D
A Little control and transparency, due to manual
Y handling
Different working routines and applications for
invoice handling
6

7. Where do we want to be?
System supported and partly automated
invoice handling
In many countries manual handling of indirect T
material and service invoices
Increased efficiency in total, and less
O
T time spent in local accounting M
O departments
A time consuming and costly adminstrative process O
D Enhanced control and compliance, as R
A well as increased transparency and
Little control and transparency, due to manual
quality throughout the P2P process
R
Y handling
O
One way of handling indirect material W
Different working routines andinvoices in IKEA
and service applications for
invoice handling
7

8. The Darwin project was born with
two siblings
Increase number of electronic purchase
IPi project
orders and goods receipts
One common electronic workflow for
DARWIN project
invoice control and posting
Business
Centralise remaining transactional work
Service Centre
in shared service centers
transition
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9. The Darwin project in brief
PROJECT IDEA HISTORY & FACTS
The Darwin rollout project Pilot implementations in
spring 2010 in Italy, UK and
contributes to a higher Ireland
cost efficiency in IKEA’s P2P
process and Rollout project started in
opens up the September 2010
possibility to concentrate the
handling of invoices for indirect Ambition: Darwin implemented
material and services in regional in all countries by April 2013
business service centres
Project orderer: P2P process
by implementing the Darwin owner
solution in 23 IKEA group
countries
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10. We are on the way
Darwin implemented
Current rollout
To be rolled out
Out of scope
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11. The Darwin solution in a nutshell
Scanning
provider
Basware
Scanned and
Successful
verified
Match
Invoice
iShop Booking
Payment
Automatic
Matching
Accountant
Purchase Goods • Add Tax Master
Order Receipt Code
• Perform validation
Check
• Transfer to
accounting
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12. Invoice imported from scanning
= fields completed from scanning provider
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13. Master View in Basware
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14. ThinClient view in Basware
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15. The biggest challenges – and how
we try to overcome them 1/2
CHALLENGES ACTIONS
RESISTANCE TO
• Show benefits
CHANGE
• Work on concerns
Countries like their way of
• Clarify it‘s mandatory
working – why would they
• Deliver good examples with successful rollouts
want to change?
SYSTEM INTEGRATION
• Implement workarounds
Frictions in overall P2P
• Fix integration issues
system setup – interfaces
• Accept issues for the time being
and databases
• Identify what requests are really business critical
SPECIAL NEEDS
• If certain flows only – handle manually outside
Many countries request
Darwin
special functionalities, e.g.
• Implement workarounds
based on legal demands
• Change the system solution
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16. The biggest challenges – and how
we try to overcome them 2/2
CHALLENGES ACTIONS
BSC TRANSITION • Set up a common steering
Darwin go live = transition • Agree on common timeline
of transactional work into • Co-ordinate the rollout work
Business Service Centre • Work on content dependencies
• Focus more on setting up „contracts“ in Basware
AUTOMATIC MATCHING • Increase number of electronic purchase orders
Matching rates below and goods receipts
expectations in rollouts so • Include additional flows in purchasing tool
far • Be patient - work continuously on increasing the
rate – after rollout project is closed
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17. Where are we today?
Darwin up and running in eight
countries
One legacy invoice handling system
closed
Low rates of automatic matching
Core solution is stable
End users are satisfied with
functionality and usability of Basware
Remaining transactional work handled
in business service centres in Poznan
and Shanghai
Efficiency increase not measured yet
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18. Key lessons learned
Difficult to solve issues while running –
don‘t start without the right prerequisites
(e.g. system integration)
If two changes in one, set it up as one
(system rollout + BSC transition)
Don‘t underestimate the need for proper
change management
Big changes take time (e.g. automatic
matching, BSC transition)
A good solution is what counts long term
We become better with every country
rollout!
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19. “Most things still
© Inter IKEA Systems B.V. 2011
remain to be done.
A glorious future!”
INGVAR KAMPRAD
Founder of IKEA.
19 12/19/2011

20. © Inter IKEA Systems B.V. 2007
Home is the most important place in the world
Urs Gräffker 20 19-Dec-11