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  1. 1. AgendaTimeItemPresenter8:30 9:00 CoffeeAll9:00 9: 30Welcome Coupa Roadmap Tony Wessels, V.P. Marketing Coupa9:30 10:30Amplifying Procurements Role Ravi Thakur, V.P. CustomerSuccess, Coupa10:30 10:45 Break All10:45 11:30 Project : Get Smart Mike Wilding, CPO,Rent A Center11:30 12:15 Extended Business Relationship Bruce McQuillen,Management (EBRM)Deloitte Consulting12:15 - 12:30 Closing Remarks12:30 1:30Coupa Demo Ravi Thakur, V.P. Customer Success, Coupa
  2. 2. Purchasing
  3. 3. ProcurementPurchasing
  4. 4. ProcurementSpendPurchasingManagement
  5. 5. ProcurementSpendPurchasingManagement Spend Optimization
  6. 6. Coupa Overview Tony WesselsVice President, Marketing
  7. 7. Coupas MissionDelivering software innovation thatbreeds responsible spending while impacting the company bottom line.
  8. 8. Innovation
  9. 9. Responsible Spending
  10. 10. Bottom Line
  11. 11. Spend Optimization
  12. 12. Coupas Explosive Growth180% Bookings+95%150%Renewal Rate Platform UsageYOYYOY YOY
  13. 13. One World, One Platform10 Languages40 Countries100,000Users
  14. 14. Customers Highlights Retail Finance Mfg. Health Care High Tech
  15. 15. Amplifying Procurements RoleRavi Thakur Vice President, Customer Success & Services
  16. 16. CFO Financial BooksSales & Mktg Customer Records HRPersonnel Files
  17. 17. Procurement Needs To Own Spend Transactions
  18. 18. Own The Optimize SpendTransactionSpend Optimization Platform & Processes
  19. 19. Procurement Must Orchestrate VS.
  20. 20. How Do You Do It? Proactively participate in growth strategy Manage change effectively Measure & demonstrate success
  21. 21. Participate In Growth Strategy
  22. 22. Understand Growth StrategiesGeographic Expansion
  23. 23. Understand Growth StrategiesGeographic ExpansionNew Lines Of Business
  24. 24. Understand Growth StrategiesGeographic ExpansionNew Lines Of BusinessAcquisitions
  25. 25. Provide Truly Strategic Value Ensure executive team supports your SpendOptimization strategy Work with R & D / Product Development Be aligned with M & A and global expansion
  26. 26. Develop Agile Spend Processes Bring distributed locationsunder management Involve all stakeholderse.g. facilities, marketing Proactively integrateacquisitions
  27. 27. Managing Change
  28. 28. Change Management RequirementsLeveragingFrictionlesschange agentstransition
  29. 29. Leveraging Change Agents Functional UsersIT ProcurementPayablesSuppliers
  30. 30. Functional UsersNeedsSolution A solution that they Familiar user can useinterface Not stand in their Support for function wayspecific spend
  31. 31. Procurement NeedsSolution Ensure policy Enables transaction compliance ownership Attain savings goals Measurable results
  32. 32. PayablesNeedsSolution Reduce manual & Automation for error prone steps invoice processing Simplify tasks Eliminates tedium
  33. 33. ITNeedsSolution Reduce burden on IT SaaS/Cloud basedresources platform Focus on value-add User configurabletasks solution
  34. 34. SuppliersNeeds Solution No additional cost of No network fees ordoing businessprocesses to support Ease of adoption Innovation e.g.Universal Search
  35. 35. Frictionless Transition Familiar & convenient user interface Weave into daily life
  36. 36. Demonstrate Success
  37. 37. Measure Success Establish benchmarks and determine Set Targets targets Use data to analyze: Achieve Targets Tradeoffs and interdependencies Root cause Measurement excellence = capabilityBe Excellent to improve and stay ahead
  38. 38. Benchmark Success Effectiveness Productivity Spend under management Transaction cycle time User adoption = customer PO & invoices processedsatisfaction per FTE (#) % saving / spend Support costs not just IT
  39. 39. Communicate Success
  40. 40. CFOFinancial BooksSales & Mktg Customer Records HRPersonnel FilesProcurementSpend Transactions
  41. 41. Break
  42. 42. Project: Get SmartMike WildingChief Procurement OfficerRent A Center44
  43. 43. Crank the Savings World TourMay 1, 2012 - 45 -
  44. 44. Executive SummaryAbout Rent-A-Center The largest operator in the United States rent-to-own industry Over 4,000 locations (2,983 Core U.S.; 763 RAC Acceptance; 87 International, 218ColorTyme franchisees) Stores offer high quality, brand name durable products such as major consumerelectronics, appliances, computers, and furniture and accessories under flexible rentalpurchase agreements Allows customers to obtain ownership of the merchandise at the conclusion of anagreed-upon rental period Approximately 20,000 employees Annual revenues projected to exceed $3.0 billion in 2012 NASDAQ: RCII Headquarters: Plano, Texas (opened a Field Support Center in Monterrey, Mexicodedication is May 15th) - 46 -
  45. 45. A peek into the past Two procurement tools in past 18 months prior to June 30, 2010 Lack of visibility into invoice submitted by vendor at store location Punch out catalogues and catalogues in general not consistently utilized Existing platform extremely clunky and lacked ability to find product quickly (minimumof five clicks before you were able to place an order) User adoption was slow and intermediate; complaints were fast and frequent On boarding of suppliers was not an easy, friendly process Invoices were entered into ERP by hand Procurement of approximately $600 million of indirect spend was very decentralized No consistent esourcing tools utilized Invoicing off of a contract was foreign No central repository for contracts Spend analyzing was performed by tearing apart general ledger accounts - 47 -
  46. 46. Need for Change Process Path MigrationSupporting Modules How They Help Procurement Catalog creation and EIPP(for non-EDI enabled management 1suppliers) PO creation, routing, and tracking Reporting Visibility to purchasing accrualsCatalog with Purchase Three way matching and issue Order identification 2 Procurement Purchase request/PO creation,Non-Catalog EIPP routing, and tracking with Reporting Three way matching and issue PurchaseidentificationOrder Visibility to purchasing accruals3 Electronic Invoice Presentment Invoicecreation, routing, and Invoice and Payment (EIPP)tracking Directly Reporting Ability to invoice against a Against contract (or against open P.O.) Contract Two way matching 4 NA Futurespend expected to beexception/emergency onlyInvoice Only - 48 -
  47. 47. RAC Technology Scope Source-to-Contract Procure-to-PayReporting & SupplierTravel & Process (Upstream)(Downstream)Management ExpenseSupplier ModuleeSourcing eContracting eProcurementeInvoicing ReportingT&E Management Increased savings through Increased electronic PO use for Abilityto monitor SMO Online booking with RACcompetitive pressure and pricing spend management, compliance, andperformance and identify future policiesvisibility 2, 3, and 4 way matching savings opportunities Automatedexpense Automatedproject workflow for User-friendlyinterface to support field Supplier portal to enable vendor managementRAC sourcing methodology and adoption and complianceinitiated electronic invoicing andBenefitscontract authoring Abilityto invoice against a contract payment Contract repository to support(or against an open P.O.) to increase Vendor score carding to monitorinvoicing against contracts (PP 3) pricing compliance pricing and service compliance Automatedinvoicing will lower AP department costs Concurimplementationcomplete on 6/14/2010 - 49 -
  48. 48. The RAC Technology Assessment ApproachThe RAC team assessed our spend needs and capabilities, developed the future state vision for the SMO, and created the optionsthat the Technology Steering Committee assessed to make the final recommendation Project: Get SMarT Accomplishments Potential Next Phase As Is Assessment Strategy Development Technology SelectionImplementationMajor Activities Maturity survey Implementation scenario Formation of steering RAC solution design SMO vision developmentdevelopment committee Solution implementation Needs assessment Scenario ROI analysis RFP development and User trainingprioritization Implementation prioritization distribution Process and technology Response analysisassessment Technology selectionOutcomeBusiness and technology Technology Business CaseSolution and vendorTechnology implementedneeds identifiedcreated recommendation developedExample DocumentsTech Selection RFP Scoring ResultsRAC stakeholders have completed the scoring process and identified SAP, Oracle, and Ariba as the best full suite providers,and Emptoris as a leading single process provider. Full Suite Upstream Only Downstream OnlyOracleSAP AribaKetera EmptorisBravoSolution Basware Lawson3.93.9 3.73.6 3.83.9 3.4 3.7 GeneralCompany Information 3 214.44.7 4.63.0 4.83.3 N/A N/ASource toContract 2 3 14.64.3 4.33.3 N/A N/A3.8 2.9Procure to Pay 1 2 34.24.2 4.33.5 4.23.8 2.9 3.4Spend Analysis & Reporting 2 1 34.54.4 4.43.2 2.71.9 3.1 3.2Supplier Management1 2 34.03.4 3.82.9 3.53.4 3.4 3.6Technical 1 23Considering the strong performance of the full-suite providers and the relatively weak performance of the niche providers, the team has not included Aravo and JPMC in this assessment. Note: RAC stakeholders include M. Wilding, T. Fuller, P. Hall, J. Whitehead, B. Corley, N. Stevens, J.Chanani, M. Douglas, J. Arnette and R. Salvans-3- Maturity model assessment Technology cost / benefit Technology demo Technology Example and gap analysis assessmentscripts RFP evaluationimplementation roadmap - 50 -
  49. 49. The Business Case - Executive Summary Scope of Business CaseReporting & Supplier Travel & Process Source-to-ContractProcure- to- Pay ManagementExpenseSupplier ModuleeSourcing Contracts eProcurementInvoicing Reporting T&E ManagementRAC had some spend management technology in place, however further investments were required to reach the desired to-bestate RAC had limited Sourcing and Contracting technology in place The eProcurement technology was at a low level of maturity and required an upgrade to support new process paths if not replaced RAC had very limited spend management Reporting capabilities, and no Supplier Management technology Beyond basic electronic forms, the Travel and Expense (T&E) analysis, audits, and reporting were at a low level of maturity5 Year financial analysis shows net savings of $ $ MM for RAC- 51 -
  50. 50. The Technology Selection ProcessThe RAC technology selection team conducted a 4 step process to identify the right technology solution to meet our needsVendors included in Vendors included in Vendors that provided Vendors receiving RFP initial assessmentcapability assessment demonstrations 1. Market Research2. Detailed Analysis3. RFP 4. Demo Analysis Conducted high level market Conducted capability Developed and distributed Developed seven page scriptanalysis 44 vendorsassessment and detaileddetailed RFP consisting of:and executed detailed vendor Perform functionality review financial analysis 6 sections demosand financial assessment Down selected from 19 to 11 275 questions Identified best-fit solution and Down select to 19 vendorsvendors that would receiveimplementation scenario for Evaluated responses andthat could potentially meetRFP RACidentified 4 vendors that best metRAC needs RACs needs and providedcompetitive pricing estimatesWheres Coupa? - 52 -
  51. 51. RAC Technology ScopeSource-to-Contract Procure-to-PayReporting & SupplierTravel &Process(Upstream)(Downstream)Management Expense Supplier Module eSourcing eContracting eProcurementeInvoicing ReportingT&EManagement Increased savings through Increased electronic PO use for Ability to monitor SMO Online booking with RAC competitive pressure and pricing spend management, compliance, andperformance and identify future policies visibility 2, 3, and 4 way matching savings opportunities Automated expense Automatedproject workflow for User-friendly interface to support field Supplier portal to enable vendor management RAC sourcing methodology and adoption and complianceinitiated electronic invoicing andBenefits contract authoring Ability to invoice against a contract payment Contract repository to support(or against an open P.O.) to increase Vendor score carding to monitor invoicing against contracts (PP 3) pricing compliance pricing and service compliance Automatedinvoicing will lower APdepartment costseSourcingeProcurement Reporting Concurimplementation Emptoris Coupa Spend Analysis / Businesscomplete on 6/14/2010What wasObjectseContracting eInvoicingselected? Emptoris Coupa Supplier ManagementEmptoris / Coupa- 53 -
  52. 52. Technology Implementation TimelineJune JulyAugustSeptember October December Q1, 2011 6/7 6/14 6/21 6/287/5 7/12 7/197/268/2 8/9 8/16 8/238/309/6 9/139/20 9/27 10/4 10/11PMOProgram Leadership (PMO) Source toContract Go-Plan DesignBuildValidate eSourcingLive eContractingInstallationConfigurationcompletedcompletedGo-Spend AnalysisPlanDesignBuild ValidateLive InstallationConfiguration Integration completedcompleted completed Build Validate Go-LiveProcure to PayCoupa Release 21PlanDesignBuild Validate Go-Live eProcurement(Invoice to Contract, PP3) eInvoicingInstallationConfiguration Integration Coupa Release 1completedcompletedcompleted (Blanket PO) BuildValidate Go-LiveCoupa Release 31 (Tiered Pricing) Supplier Go-Plan Design Build ValidateManagementLiveInstallation ConfigurationIntegrationcompleted completed completed Master Data Master DataCTCChange, Training, Communications - 54 -
  53. 53. eSourcing OverviewModule Assessment Source-to-Contract Procure-to-Pay Reporting & Supplier Process (Upstream)(Downstream) Management Supplier ModuleeSourcing eContracting eProcurement eInvoicing ReportingManagement eSourcing Benefits to RAC Increased competitive pressure and visibility into market pricing Streamlined RAC supplier evaluation for rapid apples to apples analysis Automated workflow to ensure enforcement of RACs 6 step sourcing methodology Whats at Stake for RACeSourcing advanced functionality will be used by the SMO to achieve incremental soft dollar savings for RAC.Sourcing Impact All current and future events can use traditional and advanced sourcing functionality SMO can use auction functionality for rapid spot sourcing events Like other retailers, RAC can use the eSourcing tool for merchandise - 55 -
  54. 54. eContracting Overview Module AssessmentSource-to-Contract Procure-to-Pay Reporting & SupplierProcess (Upstream)(Downstream) ManagementSupplier Module eSourcing eContracting eProcurement eInvoicing Reporting ManagementeContracting Benefits to RAC Contract authoring automates contract development, enforces internal approval flows, and provides visibility to progress Contract repository enables uploading of new and existing contracts for automated procurement and invoicing (PP3) Automated tracking enables pricing, commitment, vendor compliance, and lifecycle management Whats at Stake for RACeContracts automated authoring, storage, and procurement integration will drive efficiencies, compliance, and savings identification.- 56 -
  55. 55. eProcurement Overview Module Assessment Source-to-ContractProcure-to-Pay Reporting & Supplier Process (Upstream) (Downstream) ManagementSupplierModule eSourcingeContracting eProcurement eInvoicing Reporting ManagementWhat Coupa brings to RAC Electronic PO acknowledgements and approval flows lower cost to serve and increase visibility and compliance Reduction of headcount in our AP group Advanced search functionality and user friendly interface drives compliance and use of catalogs and punch-outs in the field Extremely high adoption rate of tool Ability to order supplies from the desktop keeping our employees in the store renting and selling merchandise Labor hours under control; sales going up Business partner to discuss other needs and solutions (sales tax) Increased performance against established KPIsTransparent Controlled 1Catalogwith Purchase 2 Order (PO) Non-Catalog Invoiced spend willwith PO 3 be moved to PO Invoice based process path Directly Against(PP 1 & PP 2)4Contract Invoice Only- 57 -
  56. 56. eInvoicing OverviewModule Assessment Source-to-Contract Procure-to-Pay Reporting & Supplier Process (Upstream)(Downstream) Management Supplier ModuleeSourcing eContracting eProcurement eInvoicing ReportingManagement What Coupa brings to RAC Ability to invoice against a contract (or against an open P.O.); pricing compliance to negotiated agreements Automated invoicing lowered our AP department costs and shorten the time required to process payments Electronic approvals and tracking has increased our visibility and compliance for our users and vendors - 58 -
  57. 57. Reporting & Supplier Management OverviewModule Assessment Source-to-Contract Procure-to-Pay Reporting & Supplier Process (Upstream)(Downstream) Management Supplier ModuleeSourcing eContracting eProcurement eInvoicing ReportingManagement Reporting Benefits to RAC Spend analysis has provided visibility into our costs and helped us prioritize the activities of SMO Supplier Portal has facilitated automated registration and management of supplier information Supplier Management gives us data and scorecards to identify pricing compliance issues and new sourcing opportunities - 59 -
  58. 58. Lessons learned View a live environment, see how other companies use the product and see whathardware they are using Engage internal IT group earlier and more frequently in the process (what will berequired on ongoing basis after implementation) Engage Internal Audit and IT Security earlier in the process First significant Software as Service model for RAC (IT, Legal, IA) - 60 -
  59. 59. Contact informationMike WildingSVP- Accounting/Global Controller & [email protected] 801 1404- 61 -
  60. 60. Extended Business RelationshipManagement (EBRM)Bruce McQuillen Deloitte Consulting LLP 62Confidential and proprietary
  61. 61. Extended Business Relationship Management (EBRM)A Deloitte PerspectiveMay 2012Deloitte Consulting LLP
  62. 62. Companies across industries are feeling the impact of ineffective management oftheir business relationships ExamplesThe closure of the German company responsible for supplying a convertible models folding roof left the otherwisefinished car in purgatory while the automaker searched for a new supplier.A toy maker was forced to recall nearly 2 million toys and pay $2.3 million in fines due to identification of lead paint intoys made by one of its Chinese contract manufacturers.Due to a concern over the role of third party risk in bank failures, the Office of the Comptroller of the Currency hasrequired that national banks establish a comprehensive program for managing the relationship with third parties.The launch of a technology companys long-anticipated white smartphone was delayed for 10 months because of thequality and longevity of the white paints manufactured in China. Coupa is one of several components that can help address the impact of ineffective business relationships Note: Sources listed on slide 17 - 64 -
  63. 63. A peek into the past at Rent-A-Center and where Coupa addressed key EBRMconcerns Two procurement tools in past 18 months prior to June 30, 2010 Lack of visibility into invoice submitted by vendor at store location Punch out catalogues and catalogues in general not consistently utilized Existing platform extremely clunky and lacked ability to find product quickly (minimum of five clicks before you wereable to place an order) User adoption was slow and intermediate; complaints were fast and frequent On boarding of suppliers was not an easy, friendly process Invoices were entered into ERP by hand Procurement of approximately $600 million of indirect spend was very decentralized No consistent esourcing tools utilized Invoicing off of a contract was foreign No central repository for contracts Spend analyzing was performed by tearing apart general ledger accountsCoupa enabled Rent-A-Center to capture consistent data on transactions and suppliers in order toaccurately understand and manage its key business relationships - 65 -
  64. 64. How do you rate your organizations relationship management capabilities? PARTIALLY YES Survey Questions NOYES1. Do you have risk assessment and mitigation strategies in place to manage your business relationship risks effectively?0 1 2 Do you monitor them on a periodic basis?2. Do you monitor globally and on a continuous basis the performance of your extended value chain in terms of service 0 1 2 levels, responsiveness and quality?3. Do you gather intelligence from third party and other sources on your business partners to identify potential financial and0 1 2 compliance issues?4. Do you have an effective technology solution that provides one stop enterprise wide visibility into the extended value chain of your company i.e., the network of suppliers,0 1 2 customers, outsourcers etc.? A net score between 0 5 indicates the lack of an effective business relationship management strategy within your organization - 66 -
  65. 65. Lack of effective business relationship management can expose your company torisk in four broad areas Loss of Revenue Supply disruptions caused by environmental, financial or political issues Lack of adherence to sell side contract terms Increased Costs Inefficient process of measuring business relationship performance on a periodic basis Lack of adherence to buy side contract termsA Score of 0 5 means Legal Issues Lack of effective contract management practices Lack of contract compliance, standardized contracts, etc. Brand Reputation Lack of adherence to CSR by its suppliers or customers Improper monitoring of the carbon footprint of trading partners- 67 -
  66. 66. Business relationships have evolved significantly over the last decade with increased focus on effectively integrating and managing those relationships IntegratedRelationships Information centralizationAn evolving strategy to Centralized or center-ledenable companies management of relationshipsmanage business Effective risk prediction andrelationships effectivelymitigation strategies Advanced analytics to assess relationshipsBusiness Relationship Management Risk proneRelationshipsCapability Information dispersed across theorganizationCollaborativeRelationships Limited organizational capability tomanage relationships Significant increase in number of Lack of visibility into data acrossbusiness partners systems Centralized internal support functions Lack of risk mitigation strategies Legacy Limited information visibility acrossthe enterprisetransactional Transactional Transactional systems and point Relationshipssystems solutions Decentralized functionsNo significant change in Limited internal and externalexisting business collaboration Basic data analysis capabilitiesrelationship Limited integration across systems management practices Past Present Future Time - 68 -
  67. 67. Extended Business Relationship Management (EBRM) is a strategy to monitor andmanage key business relationships across the companyCorporate Functions Buy Side Partners Sales Direct Materials SuppliersFinanceIndirect SuppliersExtended Business Relationship Management (EBRM) LogisticsContract Manufacturers Provide central visibility to businessrelationships Outsourced ServiceOperations Providers Measure, monitor and manage relationshipsrisk, performance, compliance andHRinformation Sell Side Partners Manage relationships proactively vs.CustomersITreactively Deepen and improve key relationshipsTrade Partners Marketing Improve top ad bottom line performance Other PartnersProcurement Alliance Partners - 69 -
  68. 68. Successful EBRM strategy requires building capabilities at a people, process and technology levelIllustrative Capabilities Ability to assess and correct existing Responsibility and ownership to take business processes that monitor risk necessary actions for risk mitigation and performance metrics Alignment of organizational structure Continuous benchmarking with and governance with EBRM strategy industry best practices to measure the effectiveness of the relationship Shift in mindset towards the nature ofbusiness relationships from Standardized data capture, transactional to a long term strategic management and reporting processes perspective EBRMStrategyTechnology Capability Superior database management and data analytics capabilities Integration of different information systems within the enterprise Improved visibility into the systems across different functions - 70 -
  69. 69. Our EBRM Lifecycle Framework provides the capability to assess and manage relationship across multiple elements of EBRM EBRM Lifecycle FrameworkPrioritize RelationshipsEvaluate RelationshipsManage Relationships Segment / DefineSet Target MonitorImplement Identify PrioritizeCriteria LevelsPerformanceimprovements Identify key Segment Define Assess MonitorIdentify andexisting relationships evaluation criteria performance of performance ofexecuterelationship types within each type(quantitative and companies basedcompanies withinperformance(suppliers,based on variousqualitative) foron pre-defined a relationshipimprovementcustomers, criteria (e.g., each relationship criteria type on a opportunitieschannel partners,importance, type and Set performanceperiodic basisbased on gapscontract business impact,segment targets for each against the set observed againstmanufacturers, financial Identify data relationship typetargets the key criteriaoutsourced obligations, etc.)required to and segmentservice providers, measure definedetc.)criteria Risk ManagementElements of Performance Management EBRM Compliance Management (regulatory, financial, sustainability, etc.)Information Management- 71 -
  70. 70. The EBRM framework applies across industries, however, the prioritization ofEBRM elements differs Financial Services Health Care & Life Consumer & Industrial Technology, Media &ElementIndustrySciencesProductsTelecom High debt levels Brand damage Supply chain disruption Supply chain disruption Risk Default/Credit risk Success rate of drugs Over-reliance on few IP security Fraudvendors Data security Brand equity Expensive delays Co-manufacturingPerformance System reliability Co-manufacturing Higher cost management management Quality issues Project costs and delays SEC guidelines Federal/State/Local Safety, Health, Environment IT laws and securityCompliance Regulatory approvals and regulations policy Global e-Sustainabilitylicenses International and country Carbon footprintInitiative (GeSI) regulations Labor laws Labor laws Customer database Electronic Health Records Customer Relationship Customer RelationshipInformation Portfolio management (EHR) ManagementManagementManagement Audit Seamless mobilization of Vendor and item master Vendor and item master health information exchange (HIE)ApplicabilityHighLow- 72 -
  71. 71. The key to effective EBRM is capturing and managing three inter-connected layers ofdata: Strategic, Tactical and Transactional Data Management Example: Performance ManagementData CategoryDescriptionExample DataData that directly drives shareholder valueIncreasedStrategicsuch as revenues, costs of goods sold, and Supply Cost Lost Revenue cost of capitalData that is used to help make day-to-day management decisionsTactical data is derived by consolidatingPurchase Price % of On-Time Tacticaltransactional data elements such as Variance Deliveries contractual price and invoice price to calculate purchase price varianceData that describes a business transactionTransactionalsuch as orders, invoices, payments, and Invoice Price Delivery Date delivery details- 73 -
  72. 72. EBRM Technology can be classified into 3 broad categories Transactional, Tactical,Strategic, in conjunction with the type of data it handles EBRM Solutions by Data Type Transactional TacticalStrategic HiperosAravoXcitecSAPOracleCoupa EmptorisCVM solutions Tools like ERP and CRM capture Solutions like spend analysis, e- Consolidate information fromtransactional data useful primarily sourcing, contract management several solutions like ERP, CRM,at an operational level provide expertise in respective and CLMdomains Typically fail to capture tactical or Provide seamless data integrationstrategic data Can access tactical and evenand analysis for one-stoptransactional data but fail toenterprise-wide snapshot of Some ERP providers also provide assess strategic aspects (e.g., relationshipsupstream tactical solutions risk) Enable comprehensive Lack an enterprise-wide view of assessment and management ofbusiness relationshipskey business relationships - 74 -
  73. 73. EBRM is not just implementation of a technology solution An effective EBRM strategy requires Understanding and prioritizing the key drivers of a business relationship - performance, risk, compliance, sustainability Understanding industry trends and supplier/customer behavior Understanding the right data elements to track and maintain in order to monitor the effectiveness of the business relationship Assessing the readiness of an organization to implement EBRM strategy from a people, process and technology standpoint Identifying the right technology based on the business needs Understanding the change management practices of the firm Developing a roadmap to implement an EBRM technology solution Deloitte Approach 1 2 3 4 Understand As-Is Business Identify Risk Areas and GapsDevelop Improvement Build EBRM Solution Roadmap Relationship Landscapebased on Benchmarks Opportunities- 75 -