jump-start procurement-led innovation · asset velocity trade financing . supplier innovation is a...
Post on 16-Aug-2020
0 Views
Preview:
TRANSCRIPT
Jump-Start Procurement-Led Innovation ProcureCon Webinar July 27, 2016
IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion.
Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.
The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.
Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.
2
Speakers
© 2016 IBM 3
Dr. Robert Hanfield Director of the Supply Chain Resource Cooperative Author of The Procurement Value Proposition
Speaker
Jeff Townley Former CPO of Nortel Networks Former President of Global Services at Genband
Guest Speaker Speaker
Jim Holbel Procurement Solutions Practice Leader, IBM
Agenda
The Pressure to Innovate What we know about procurement-led innovation A Process for procurement-led innovation IBM Emptoris Cognitive Procurement
The Emerging Role of Procurement
Procurement is at an inflection point where the old “bag of tricks” no longer works.
Opportunity for savings through leveraging of spend have been depleted?
Analytics represents the next wave of opportunity.
Supply chain innovation is on the horizon.
A new set of procurement tools enabled by analytical innovation is required!
Time
Value
Traditional Sourcing Leveraging spend
Procurement analytics TCO Slm Clean sheeting Demand management
Supply chain innovation Value creation Working capital reduction Asset velocity Trade financing
Supplier Innovation is a critical development area
Source: Key Issues Study, The Hackett Group, 2016
Degree of supplier integration into new product development decision making
Degree of Supplier Influence
Informal Supplier
Participation
No Supplier Involvement
Formal Supplier
Participation
Primarily Supplier Driven
100%
0%
Degree of Buying Company Influence
Supplier integration varies on different new product development projects
Black Box – Supplier developed
Internal Design and Make
Gray Box – Joint development
Buyer Established Functionality
and specification
Successful Partner Integration Significantly Improves Partnership Outcome
Self reported results Significantly better outcomes have been achieved when suppliers were integrated into new product/process/service development
Integration improvement: Cost 11% Cycle time 20% New product development time 42%
Quality improvement 14%
Technology access 40%
Difference between Most Successful and Least Successful Partnership Projects Highly correlated success factors include:
• Supplier participation on buying companies team
• Direct cross-functional inter-company communication
• Design team’s consensus on project goals
• Top management commitment to integration by both buyer and supplier
• Clarity of metrics, performance targets and their joint development
What You Might be Thinking Right Now…
? How do I get my suppliers to innovate?
? What changes do I need to make right away to get this going?
? What technology tools are available to help me identify the right partners?
?
Two Criteria for Success
There are aligned strategies, and a process in place to establish key approaches for achieving strategic milestones within a foreseeable planning horizon.
Demonstrated excellence in inventory management, planning, material handling, and order fulfillment.
Clearly defined roles, with open, honest and ethical discussions relying on sharing of all relevant cost, technical, and commercial-related issues.
Aligned Strategic Focus: Demonstrated Record of Performance:
Five-step process for procurement-led innovation
Technology Perspective #1: Cognitive Analytics Capabilities:
Cognitive analytics is the most advanced form of analytics—one that combines machine learning with natural language processing and human-like reasoning, to collect insights into specific queries related to supply management innovation.
#2: Supplier-centric Workflows with End-to-End Visibility:
Managing supplier relationships and fostering trust is central to procurement-led innovation. Best of breed supplier lifecycle management systems are essential to assessing supplier capabilities and managing the ongoing relationship.
#3: Collaborative Platforms:
Collaborative platforms play an increasingly important role in SRM. It can serve as powerful catalysts for conducting initial discussions with suppliers, to explore the opportunities for innovation.
Cognitive Computing Brings Significant Benefits Optimized operations
Employee-facing applications that aid knowledge workers in execution of business process
Leverage experience & best practices for improved decision-making
Access disparate systems to provide holistic view of an account
Shift time spent finding information to making decisions & recommendations
Explore Discover Decide
Where do I find comprehensive
research on an account?
How do we form a single view of a
company from many disparate internal and
external sources?
What's happening in my client's world that I should know about?
How do I identify a new business
opportunity?
IBM Emptoris Cognitive Procurement
2.5 quintillion bytes of new data created daily Expertise matters more today than ever, but even top experts can’t keep up
Are you ready for the challenges and opportunities?
Oil & Gas
80,000 sensors in a facility produce 15 petabytes of data
Public Safety
520 terabytes of data are produced by New York City's surveillance cameras each day
Energy & Utilities
680m+ smart meters will produce 280 petabytes of data by 2017
Healthcare
The equivalent of 300 million books of health related data is produced per human in a lifetime
Supplier Master Data
Spend Data
Contract Data
Sourcing Bids & Results
Scorecards
POs/Invoices
What About Procurement Data?
Enterprise spend management
Strategic Sourcing
Procurement Contracting
Procurement Compliance & Savings Validation Purchase Requisition Invoice
Supplier Qualification
Supplier Risk Management
Supplier Compliance Management
Supplier Classification
Supplier Lifecycle Management
Supplier Evaluation & Development
18
IBM Enterprise Source to Pay
What About Procurement Data?
News
PR
Filings
Legal Actions
Regulatory Actions
Events
Social (official)
Social Opinion Analysis
Economic Conditions
Geopolitics
Weather
Employee Data
Customer Data
nTier Suppliers
eMails
wiki
Intranet
Minutes
Incidents
Issues Suggestions Innovations
Complaints
Reviews
Outcomes
Performance
Reports
Analyses
Evaluations
Summaries
Rankings Ratings
Feedback
KPIs
SLAs
Supplier Master Data
Spend Data
Contract Data
Sourcing Bids & Results
Scorecards
POs/Invoices
8%
Company X Struggled to deliver our new Marketing Mobile App for iPhone and android. The overall project was scheduled for 9 weeks but disastrously was 6 weeks late. Our bug list at launch was 50+.
The other 92% Problem
21
Watson cognitive capabilities.
50 underlying technologies
22
Entity Extraction Sentiment Analysis Emotion Analysis (Beta) Keyword Extraction Concept Tagging Taxonomy Classification Author Extraction Language Detection Text Extraction Microformats Parsing Feed Detection Linked Data Support Concept Expansion Concept Insights Dialog Document Conversion
Language Translation Natural Language
Classifier Personality insights Relationship Extraction Retrieve and Rank Tone Analyzer Emotive Speech to Text Text to Speech Face Detection Image Link Extraction Image Tagging Text Detection Visual Insights Visual Recognition AlchemyData News Tradeoff Analytics
Watson News Explorer
Natural Language Classifier
Tone Analyzer
Structured data
for analysis
Natural Language
Unstructured content “Company X Struggled to deliver our new Marketing Mobile App for iPhone and android. The overall project was scheduled for 9 weeks but disastrously was 6 weeks late. Our bug list at launch was 50+.”
23
Supplier Company X
Category IT: Mobile Application Development
Customer Marketing
Platform Smart Phone
Issue 6 weeks late
Issue 50+ Bugs
Watson Natural-language
Classification
Tone Analysis
Watson Tone Analyzer
24
Unstructured content “Company X Struggled to deliver our new Marketing Mobile App for iPhone and android. The overall project was scheduled for 9 weeks but disastrously was 6 weeks late. Our bug list at launch was 50+.”
Document-level tone
25
26
Entity Canada Post
Relevance 0.933704
Watson Natural-language
Classification
Concept Trade Union
Concept Strike Action
Concept Lockout
Concept Negotiation
Canada Post Negative
Lockout Notice Negative
Contract Dispute Negative
Strike Notice Negative
Is this article about a supplier of interest?
Are the concepts in the article relevant?
Is the sentiment of the article concerning?
“There were signs of progress Sunday in a contract dispute between Canada Post and the union representing 50,000 of its workers as talks resumed and the post office withdrew a threat to lock out its workers. Canada Post issued a brief statement that said it had withdrawn its lockout notice "which will allow both parties to focus their efforts on serious negotiations."
"We are also expecting the union to honour their repeated public statements that they have no plans to issue a strike notice," it said. Assurance from both parties that the postal system will remain open for business while we negotiate will provide the certainty that Canadians and our employees are looking for."
Scalable Natural Language Processing
Scaled to Millions of Items – Make Connections Documents Facets Time Series Deviations Trends
Facet Pairs Dashboard Sentiment Connections Reports
27
Cognitive systems will extend procurement capability
Humans excel at: Common Sense Morals Imagination Compassion Abstraction Dilemmas Dreaming Generalization
Cognitive Systems excel at: Locating Knowledge
Pattern Identification
Natural Language
Machine Learning
Eliminate Bias
Endless Capacity
28
Cognitive Procurement solutions
Shifting technology’s role from enabler to advisor
Watson Cognitive Platform
Foundational Analytics
Deep Supplier Insight
Supplier
Trusted Buying Advisor
WBA
Risk Mitigation
Risk Insights
Dynamic Pricing Information
Pricing
External Data
Internal Data
Structured / unstructured
Make better decisions
Scale expertise
Automation
BlueHound
Instant Contract Analysis
29
Ebook Procurement’s New Chapter: Innovation
Download at ibm.com/supplier-innovation
30
Thank You! Q&A
Join the conversation Blog, YouTube, Twitter and Facebook
For additional questions regarding IBM Procurement Solutions please contact: Jim Holbel IBM Procurement Solutions Practice Leader jholbel@us.ibm.com Alex Zhong IBM Procurement Solutions Senior Market Segment Manager alex.zhong@us.ibm.com
top related