business commerce innovation [new york city]

Buy, Pay, Manage: The Future of Business

Commerce

Andrew Bartolini, Chief Research Officer

Christopher J. Dwyer, Research Director

Ardent Partners

October 7, 2014

CO-PRESENTERS

Andrew Bartolini

Chief Research Officer

Ardent Partners

Christopher J. Dwyer

Research Director

Ardent Partners

AGENDA

Introduction

Commerce

Convergence on the Network

Ardent Partners is a research and advisory firm

focused on defining and advancing the supply

management strategies, processes, and

technologies that drive business value and

accelerate organizational transformation within the

enterprise.

ARDENT PARTNERS

CPO Rising: The site for CPOs and

other supply management executives

www.cporising.com

ARDENT’S NETWORK OF SITES

Payables Place: Global source for

ePayables news, research, & analysis

www.payablesplace.com

ARDENT’S’ RESEARCH COVERAGE:

SUPPLY MANAGEMENT

Commercial Cards

Supply Risk & Supplier Information/Performance Management

Contingent Workforce Management

Other Complex Categories (T&E , Meetings and Events, Print, etc.)

Analysis eSourcing

Contract

Management eProcurement ePayables

Procurement Outsourcing

BUY, PAY, MANAGE: THE FUTURE OF BUSINESS

COMMERCE

WHAT IS BUSINESS COMMERCE?

BUY PAY MANAGE

BUSINESS COMMERCE INNOVATION

BUY PAY MANAGE

2006 2011

Motorola Market Share: Mobile Phones

Key Takeaways:

Joy’s Law: “Innovation will happen,

and it will happen elsewhere.”

Innovation extends to all supply

markets

A ‘static “supply base is now a red

No company can risk going it alone

Increasing reliance on suppliers

Suppliers are partners assets

CPO’S AGENDA: THEN AND NOW

CPO View 2009

"There has been a change in context, speed, and risk. It's

time for procurement to be the hero.“

Christina DeLuca

CPO - BP

CPO View 2014

"The minute you get complacent, people will

begin to offer other opinions. You must stay

sharp.“

Chris Shanahan

CPO - BD

TOP CPO PRIORITIES (NEXT THREE YEARS)

Innovation

©Ardent Partners - 2014

TOP STRATEGIES FOR SOURCING TEAMS IN 2014

32% 31% 31%

Improvecollaborationwith business

Improvecollaborationwith suppliers

Improve use oftechnology (buynew systems /

improve currentones)

Implementstronger

policies andprocesses

Improvecollaborationwith the CFO

and otherexecutives

Optimize currentsystems and

processes

Collaboration

THE CPO ROLE IN 2014

Purchasing

Sourcing

Cash Risk

Innovation Sales

M&A New

Products

New Markets

Ventures

Travel

Outsourcing

Contingent

Workers

Trusted Advisor / Influencer / Special Projects

Accounts

Payable

Convergence

BUY PAY MANAGE

Key Takeaways:

No company wants to “slow the line”

ePayments are easier

ePayments are cheaper

ePayments are more accurate

ePayments are more secure

AP’S TOP PRIORITIES IN 2014

Generate discounts on spend

Better link P2P processes and systems

Improve collaboration/communication withprocurement

Improve visibility into invoice and paymentdata

Improve reporting and analytics around AP

Reduce processing costs

THAT PERSISTENT PAPER PROBLEM

Manual Electronic

Invoice Formats Payment Formats

44% 56%

Manual Electronic

THE BENEFITS OF ELECTRONIC PAYMENTS

24% of all AP groups report

increased accuracy and

control of payment delivery

24% 45% 51%

45% of AP groups say that

electronic payments

enable more efficient and

streamlined processing

(e.g., review, approval,

execution).

51% of enterprises rate

cost savings as the top

benefit seen from

electronic payments

Greater

involvement in

working capital

optimization

Skill set

required within

AP will change

Stronger AP &

Procurement

partnership

AP process will

be largely

automated

AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3

YEARS)

83% 69% 66% 57%

BUY PAY MANAGE

Job Stats

4.4 years = Average job

tenure in US (US Dept. of Labor - 2014)

91% of Millenials expected

to stay at current job less

than 3 years

Key Takeaways:

The “rules of employment” have

changed

Work will continue to migrate to where it

can best be done

Geography will not be a talent constraint

Job hopping is now a trend

Outside talent can offer great value and

agility

There is a talent war

New strategies and approaches are

needed

CURRENT CONTINGENT WORKFORCE CHALLENGES

THE EVOLVING CONTINGENT WORKFORCE

Ardent Partners predicts that the average contingent workforce will

rise by 30% over the next three years

92% of enterprises cite non-traditional talent as a moderate-to-vital

aspect of their overall corporate strategy

The “war for talent” now outweighs “cost savings” as the top driver

of contingent workforce management

Traditional Complex Independent Contractors

Comprised of SOW-

based projects and

services

Purpose: Unique

talents and

expertise

Freelancers,

consultants and

contractors

Purpose: High-level

talent and

specialized skillsets

“Temps” sourced

via staffing

suppliers and

agencies

Purpose: Low-to-

mid-level talent

ARDENT PARTNERS CWM FRAMEWORK

THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT

CONVERGENCE ON THE NETWORK

THE EVOLUTION OF TALENT SOURCES

BUSINESS NETWORKS’ IMPACT ON

TRANSACTIONS

BUSINESS NETWORKS’ IMPACT ON SUPPLIER

COMMUNICATION / COLLABORATION

THE NEW “COMMERCE” DYNAMIC

Speed and complexity continue to accelerate

Compliance, control, efficiency are table stakes

This is the “Age of Innovation and Collaboration“

Winners will be the agile organizations that can tap into

expertise and find value wherever it exists in the market

Selecting the right partners and platforms has never been

more important

For more information please visit:

www.ardentpartners.com

THANK YOU!

Andrew Bartolini

Managing Partner &

617.752.1620

abartolini@ardentpartners.com

@andrewbartolini

Contact Info: Ardent’s Media Sites:

Research Director &

VP, Operations

617.752.1624

cdwyer@ardentpartners.com

@cjd_ardent

Commerce

Andrew Bartolini, Chief Research Officer

Christopher J. Dwyer, Research Director

Ardent Partners

October 7, 2014

CO-PRESENTERS

Andrew Bartolini

Ardent Partners

Research Director

Ardent Partners

AGENDA

Introduction

Commerce

Convergence on the Network

Ardent Partners is a research and advisory firm

focused on defining and advancing the supply

management strategies, processes, and

technologies that drive business value and

accelerate organizational transformation within the

enterprise.

ARDENT PARTNERS

CPO Rising: The site for CPOs and

other supply management executives

www.cporising.com

ARDENT’S NETWORK OF SITES

Payables Place: Global source for

ePayables news, research, & analysis

www.payablesplace.com

ARDENT’S’ RESEARCH COVERAGE:

SUPPLY MANAGEMENT

Commercial Cards

Supply Risk & Supplier Information/Performance Management

Contingent Workforce Management

Other Complex Categories (T&E , Meetings and Events, Print, etc.)

Analysis eSourcing

Contract

Management eProcurement ePayables

Procurement Outsourcing

BUY, PAY, MANAGE: THE FUTURE OF BUSINESS

COMMERCE

WHAT IS BUSINESS COMMERCE?

BUY PAY MANAGE

2006 2011

Motorola Market Share: Mobile Phones

Key Takeaways:

Joy’s Law: “Innovation will happen,

and it will happen elsewhere.”

Innovation extends to all supply

markets

A ‘static “supply base is now a red

No company can risk going it alone

Increasing reliance on suppliers

Suppliers are partners assets

CPO’S AGENDA: THEN AND NOW

CPO View 2009

"There has been a change in context, speed, and risk. It's

time for procurement to be the hero.“

Christina DeLuca

CPO - BP

CPO View 2014

"The minute you get complacent, people will

begin to offer other opinions. You must stay

sharp.“

Chris Shanahan

CPO - BD

TOP CPO PRIORITIES (NEXT THREE YEARS)

Innovation

©Ardent Partners - 2014

TOP STRATEGIES FOR SOURCING TEAMS IN 2014

32% 31% 31%

Improvecollaborationwith business

Improvecollaborationwith suppliers

Improve use oftechnology (buynew systems /

improve currentones)

Implementstronger

policies andprocesses

Improvecollaborationwith the CFO

and otherexecutives

Optimize currentsystems and

processes

Collaboration

THE CPO ROLE IN 2014

Purchasing

Sourcing

Cash Risk

Innovation Sales

M&A New

Products

New Markets

Ventures

Travel

Outsourcing

Contingent

Workers

Trusted Advisor / Influencer / Special Projects

Accounts

Payable

Convergence

BUY PAY MANAGE

Key Takeaways:

No company wants to “slow the line”

ePayments are easier

ePayments are cheaper

ePayments are more accurate

ePayments are more secure

AP’S TOP PRIORITIES IN 2014

Generate discounts on spend

Better link P2P processes and systems

Improve collaboration/communication withprocurement

Improve visibility into invoice and paymentdata

Improve reporting and analytics around AP

Reduce processing costs

THAT PERSISTENT PAPER PROBLEM

Manual Electronic

Invoice Formats Payment Formats

44% 56%

Manual Electronic

THE BENEFITS OF ELECTRONIC PAYMENTS

24% of all AP groups report

increased accuracy and control

of payment delivery

24% 45% 51%

45% of AP groups say that

electronic payments enable

more efficient and streamlined

processing (e.g., review,

approval, execution).

51% of enterprises rate cost

savings as the top benefit seen

from electronic payments

Greater

involvement in

working capital

optimization

Skill set

required within

AP will change

Stronger AP &

Procurement

partnership

AP process will

be largely

automated

AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3

YEARS)

83% 69% 66% 57%

BUY PAY MANAGE

Job Stats

4.4 years = Average job

tenure in US (US Dept. of Labor - 2014)

91% of Millenials expected

to stay at current job less

than 3 years

Key Takeaways:

The “rules of employment” have

changed

Work will continue to migrate to where it

can best be done

Geography will not be a talent constraint

Job hopping is now a trend

Outside talent can offer great value and

agility

There is a talent war

New strategies and approaches are

needed

CURRENT CONTINGENT WORKFORCE CHALLENGES

THE EVOLVING CONTINGENT WORKFORCE

Ardent Partners predicts that the average contingent workforce will

rise by 30% over the next three years

92% of enterprises cite non-traditional talent as a moderate-to-vital

aspect of their overall corporate strategy

The “war for talent” now outweighs “cost savings” as the top driver

of contingent workforce management

Traditional Complex Independent Contractors

Comprised of SOW-

based projects and

services

Purpose: Unique

talents and

expertise

Freelancers,

consultants and

contractors

Purpose: High-level

talent and

specialized skillsets

“Temps” sourced

via staffing

suppliers and

agencies

Purpose: Low-to-

mid-level talent

ARDENT PARTNERS CWM FRAMEWORK

THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT

CONVERGENCE ON THE NETWORK

THE EVOLUTION OF TALENT SOURCES

BUSINESS NETWORKS’ IMPACT ON

TRANSACTIONS

BUSINESS NETWORKS’ IMPACT ON SUPPLIER

COMMUNICATION / COLLABORATION

THE NEW “COMMERCE” DYNAMIC

Speed and complexity continue to accelerate

Compliance, control, efficiency are table stakes

This is the “Age of Innovation and Collaboration“

Winners will be the agile organizations that can tap into

expertise and find value wherever it exists in the market

Selecting the right partners and platforms has never been

more important

For more information please visit: www.ardentpartners.com

THANK YOU!

Andrew Bartolini

Managing Partner &

617.752.1620

abartolini@ardentpartners.com

@andrewbartolini

Contact Info: Ardent’s Media Sites:

Research Director &

VP, Operations

617.752.1624

cdwyer@ardentpartners.com

@cjd_ardent

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