coupa roadshow san francisco

Purchasing

Purchasing

Procurement

Purchasing

Procurement

Spend Management

Purchasing

Procurement

Spend Optimization

Spend Management

Agenda

Time Item Presenter

8:30 – 9:00 Coffee All

9:00 – 9: 30 Welcome – Coupa Roadmap Tony Wessels, V.P. MarketingCoupa

9:30 – 10:30 Amplifying Procurement’s Role Ravi Thakur, V.P. Customer Success, Coupa

10:30 – 10:45 Break All

10:45 – 11:30 Pandora’s Spend Optimization Steve Cakebread, CFO, Pandora

11:30 – 12:15 High Performance Procurement Chris Brousseau, Accenture

12:15 - 12:30 Closing Remarks Tony Wessels, V.P. Marketing, Coupa

Coupa Overview

Tony WesselsVice President, Marketing

Coupa’s Mission

Delivering software innovation that breeds responsible spending while impacting the company bottom line.

Spend Optimization

Coupa’s Explosive Growth

180%Bookings

YOY

+95%Renewal Rate

YOY

150%Platform Usage

YOY

One World, One Platform

10 Languages

40 Countries

100,000 Users

Amplifying Procurement’s Role

Ravi ThakurVice President, Customer Success & Services

CFO Financial Books

HR Personnel Files

Sales & Mktg Customer Records

Procurement Needs To Own Spend Transactions

Own The Transaction Spend Optimization

Procurement Must Orchestrate

VS.

How Do You Do It?

� Proactively participate in growth strategy

� Manage change effectively

� Measure & demonstrate success

Participate In Growth Strategy

Growth Strategies

Acquisitions

Geographic Expansion

New Lines Of Business

Be Truly Strategic

� Ensure executive team supports your Spend

Optimization strategy

� Work with R & D / Product Development

� Be aligned with M & A and global expansion

Agile Spend Integration

� Bring distributed locations

under management

� Involve all stakeholders

e.g. facilities, marketing

� Proactively integrate

acquisitions

Managing Change

Change Management Requirements

Leveraging

change agents

Frictionless

transition

Leveraging Change Agents

Functional Users

IT

Procurement

Payables

Suppliers

Functional Users

� Familiar user

interface

� Support for function

specific spend

Solution

� A solution that they

can use

� Not stand in their

way

Needs

Procurement

� Enables transaction

ownership

� Measurable results

Solution

� Ensure policy

compliance

� Attain savings goals

Needs

Payables

� Automation for

invoice processing

� Eliminates tedium

Solution

� Reduce manual &

error prone steps

� Simplify tasks

Needs

IT

� SaaS/Cloud based

platform

� User configurable

solution

Solution

� Reduce burden on IT

resources

� Focus on value-add

tasks

Needs

Suppliers

� No network fees or

processes to support

� Innovation e.g.

Universal Search

Solution

� No additional cost of

doing business

� Ease of adoption

Needs

Frictionless Transition

� Familiar & convenient user interface

� Weave into daily life

Demonstrate Success

Set Targets

Measure Success

• Establish benchmarks and determine

targets

• Use data to analyze:• Tradeoffs and interdependencies

• Root cause

• Measurement excellence = capability

to improve and stay aheadBe Excellent

Achieve Targets

Benchmark Metrics

Productivity

� Transaction cycle time

� PO & invoices processed

per FTE (#)

� Support costs – not just IT

Effectiveness

� Spend under management

� User adoption = customer

satisfaction

� % saving / spend

Communicate Success

CFO Financial Books

HR Personnel Files

Sales & Mktg Customer Records

Procurement Spend Transactions

Steve Cakebread

36

Chief Financial Officer

Pandora Internet Radio

Coupa + Pandora

Confidential and proprietary

Our Mission: Redefining Radio

• Connect people with music they love

• Help people discover new music

• Personalize the experience

• Create positive bonds between brands, bands and fans

37


Pandora Legacy

All done over email and manual process

� Manual purchase requisition

� Manual ordering

� No receiving record

� No invoice approval

� No tracking

� No vendor management

� No automation

� No visibility

� No compliance

38


Challenges

� Lack of focus

� Inability to change behavior of current procurement process

� Not addressing cross functional needs of the departments

� Not having an aligned business strategy

� No uniform system to drive the thought process around accountability of each budget owner on their expenses

39


Put it in the

GOAL: Provide timely performance measurements, excellent GOAL: Provide timely performance measurements, excellent GOAL: Provide timely performance measurements, excellent GOAL: Provide timely performance measurements, excellent customer service, and effective processes to the company, our customer service, and effective processes to the company, our customer service, and effective processes to the company, our customer service, and effective processes to the company, our other departments and outside customersother departments and outside customersother departments and outside customersother departments and outside customers.

� Improve the billing systems, needed more efficient business systems

� Automate workflow

� Focus on process cycle times and meet those times

� Establish a reporting schedule, ability to forecast the business

� Develop a viable business and financial operation

� Enable procurement to document and perform proper controls

40


Transforming procurement

� Streamlining procurement was a vital and strategic project

� Make it a more transactional approach

� Implement a more regulated approval system instead of a top level down bottleneck

� Lower the costs and consumption of human time

� Track and manage vendors

� Able to properly document and budget each business segment

� Improve visibility and spend management

� Cloud based, anytime, anywhere Saasmodel

� Bring value to the whole financial ecosystem

41

Departmental Departmental Departmental Departmental

BudgetsBudgetsBudgetsBudgets

Executive Management Executive Management Executive Management Executive Management

ApprovalsApprovalsApprovalsApprovals

ManagersManagersManagersManagers

Enter and Track Enter and Track Enter and Track Enter and Track

RequisitionsRequisitionsRequisitionsRequisitions

FinanceFinanceFinanceFinance


Coupa + Pandora

� Efficient, easy vendor integration

� Scalable, versatile, innovative

� No hardware capital investment

� Lower support costs

� Rolled out to entire organization

� Minimum implementation time

� Minimum risk

� Mobile

� Effective management

42


Pandora Now

� Real time reporting and approval

� Transparency and visibility into departmental budgeting, spending and monthly accruals

� Allows procurement department to clean up stale invoices, outdated reqsand pending action items

� Easy integration with analytics and financial planning tools

� Accountability in each departmental spend and budgeting outlook

� Mobile, anywhere, anytime, no delay or bottleneck with purchase approvals

� Improved financial performance by controlling cost and spend effectively and efficiently

43

Confidential and proprietary44


High Performance Procurement Mastery

45

Christopher Brousseau

Global Commercial Sales Director

Accenture Inc.

47

Contents

Copyright © 2012 Accenture All Rights Reserved.

Sustaining Success – Sustainable positive impact for your company

Successful Approaches – Structuring Source to Pay initiatives

Big Picture – Begin with the end in mind

1

2

3

4

Introduction

Copyright © 2012 Accenture. All Rights Reserved. 48

• A market leading provider with 10+ years of experience • Strong client portfolio of clients from around the globe.• Can help CPOs deliver significant spend savings straight to the bottom line, improve

procurement performance and increase spend transparency and control.• Example benefits delivered include:

– $400m (15%) sourcing savings for one financial services client – 20% savings across seven purchasing categories for HOCHTIEF – $10.2m savings for banking client through the industrialized procurement of contract labor.

Our value Proposition

What do we offer?

• A complete source-to-pay BPO solution that enables organizations to reduce their overall cost of acquiring third-party goods and services and improve the efficiency and effectiveness of their procurement operations.

• Services include: sourcing and category management, sourcing support and procurement operations.

Accenture Procurement BPO Services - A snapshot

Accenture’s High Performance Procurement Mastery Study looked at the profiles of over 430 responding procurement organizations across the key dimensions of procurement mastery:

Procurement strategy

1

Sourcing and category management

2

Requisition to pay

3

Supplier relationship management

4

Workforce and organization

5

Technology

6 • Geographical scope: 22 countries from Europe, Americas, Asia-Pacific

• Industries: responses from 13 different industries

Big Picture:High Performance Procurement Mastery

49Copyright © 2012 Accenture. All rights reserved.

Procurement mastery

low high

Pro

cu

rem

en

tp

erf

orm

an

ce

Midrange performer

MasterLow performer

Average

high

low

Big Picture: Three Strategic Focus Areas

50

1. Focus on business outcomes

2. Deliver value through Sourcing & Category Management, Procurement operations, analytics and insight

3. Enable organizations with an increasingly flexible infrastructure and compelling assets

50Copyright © 2012 Accenture All Rights Reserved.

Implementation PrioritiesBusiness Interest

Maximize bottom line savingsfrom supply base

• Insight and visibility of organisational spend• Spend under procurement influence management• Sourcing and category management driving multi year plans• Driving compliance and managing cash

Driving compliance

• Capturing bottom line savings, active and passive compliance using technology or manual processes

• Contract compliance, management of contract policies and process

• Change management and governance.

Make vs buy decision• Investment, approach and strategy to create an internal

infrastructure to manage procurement vs selecting a partner to Design, Build, Operate or Transfer

Geographical footprint, presence and flexibility

• Flexibility and relevance of resources across regions• Decentralised buying and Onshore FTEs• Tactical vs strategic local support• Ability to support growth markets• Regional expertise and insight

Maximizing returns from technologyinvestments

• Strategy and road map for source to pay procurement technology

• Boutique best of breed providers or partner who provides technology infrastructure

Building the right capabilities• Procurement organisation design• Expertise and skill set• Category specific knowledge

Copyright © 2012 Accenture. All rights reserved.

Successful Approaches

Invoice

•Payment Terms

•Supplier Data

•Validated Contract Price

•Usage Data

Buy

Data

Integrity Drives

Value

Successful Approaches:Procurement Business Outcome Focus

Working Capital Management

Demand Management & Category Strategies

Spend Analytics & Sourcing

ChangeManagement

Procure-to-PayInstrumentation

VendorEnablement

Compliance Management

* Change Management is a continuous process across all of the Building Blocks

• Aggressive payment term management

• “Dynamic discounting”

Compliance Management



ChangeManagement


VendorEnablement

• Organizational measures aligned to drive compliance

• Ability to measure adherence to contracts, consumption policies, and purchasing policies

• Compliance programs enacted

• Supplier performance metrics and program established

Vendor Enablement



ChangeManagement


• Supplier segmentation and management program deployed

• Supplier partnerships established

• Diversity and Sustainability programs enacted

• Spend controlled through PO

• Workflow automation• Straight through

processing• Catalogs enabled• eInvoicing• Improved invoice

lifecycle• Centralized contract

administration

• User, supplier, and process policies implemented

• Change management program implemented

• Standardized approvals and authorization approach for Procurement and AP

• Policies established to drive change (i.e. “No PO, No Pay”)




ChangeManagement

Change Management*



• Spend analyzed for identification of savings & compliance opportunities

• Sourcing tactics deployed (eAuctions, Spot-Buys, RFx

• Contracts established• Savings methodology

defined and tracked

• Category strategies developed for all categories

• Purchase channel strategy developed for all categories

• Payment strategies developed for all categories

• Demand Management programs enacted




52

Sourcing Optimization and Demand Control Procure-to-Pay Transformation Supply Base Mastery Outcomes


53

Successful Approaches:Change Management Value Tree

Key Value Questions

• Do you understand the business case?

• What are the financial and non-financial benefits of the project?

• How do they expect to achieve the benefits?

• What behavioral changes must occur to achieve the benefit (as opposed to simply system automation / changes)?

• What are the value levers associated with driving the change?

Change Management levers

How do the benefits break down?

What are the benefit drivers?

What is the specific target?

What is the overall benefit of the project?

Comms. & Engagement

Change Readiness

Executive Sponsorship

Org. Alignment

Sustainment

Stakeholder Management

Training & Perf. Support

Project Goals

Financial Benefits

Project Benefits (e.g., NPV)

Time to Proficiency

People Able to Use

People Willing to Use

System Works

Non-Financial Benefits

Employee Retention / Morale

Understand Change

Engaged / Involved

Customer Satisfaction

Knowledge Retention

Process Automation

Document-ation


54

Contents


Sustaining Success – Sustainable positive impact for your company

Implementation approach – Preparing for best service

Service model – Components to drive procurement value

1

2

3

4

Our joint journey – Path of procurement innovation

Sustaining SuccessView on best practice – addressing your pain points [excerpted 2/3]

Your pain points What the leaders do – selected practices

Procurement Infrastructure: lack of enabled procurement applications leading to underperformance

Accenture Term:Procure-to-Pay

Supplier Management: major focus on administrative activities

Supplier Collaboration & Integration

Supplier Development

Accenture Terms: Supplier Performance Measurement

• Supplier management approaches, particularly for strategic suppliers, with defined and tracked collaboration initiatives

• Collaboration technologies and portals used to share data ranging from demand forecast to transactional data e.g. eInvoicing

• Share of risk and reward in contracting to exploit opportunities and balance pain/ gain etc.

• Process improvement teams review and audit key suppliers and provide guidance to address performance gaps (six sigma)

• Joint investments in initiatives/ technologies • End-to-end view of value chain with improvements made across enterprise boundaries

(buyer/ supplier)

• Agreed set of basic, customisable performance measures for each segment • Automated system-based performance tracking and dashboards with end user/ supplier

survey technology• Supplier performance delivery linked to incentives, reward mechanisms and future

business award

• E-enabled procure-to-pay process with defined approvals and strong controls, segregation of duties etc.

• Application of leading technologies to eliminate work or drive efficiency e.g. catalogues, electronic order transmission, OCR...

• Spend channel strategy ensuring most efficient and effective buying method for defined purchase types

55Copyright © 2012 Accenture All Rights Reserved.

Customer Challenge:

• Imperative to simplify, standardise and gain greater control over procurement globally

Client Case Study

Simplifying processes, standardizing and enabling with technology has increased controlfor leading European financial services company

Business Outcomes:

• Delivered significant indirect spend savings annual savings 12-19%

• Spot buys and e-auctions used to drive additional savings 27% savings

• Improved compliance in annual spend >70% and rising.

• Improved process efficiency , spend transparency and procurement insight

• Unlocked discount opportunities and additional value.

• Support sustainability agenda: >60% reduction in paper usage through e-invoicing (630k invoices)

• Reduced procurement operational costs


• Answer any questions that were not addressed during this discussion

• Schedule a follow-up with you, or other team members from your organization to learn more about Accenture’s capabilities and discuss potential opportunities for your company

Thank You and Next Steps

We would be glad to continue discussions to:

Contact with inquiries:

Christopher Brousseau

[email protected]

Thank You!

coupa roadshow san francisco

Technology

measure success

customer success services

procurement payables

growth strategy

procurement spendmanagement

optimization strategy

change agentsfunctional

set targets targets