leveraging saas as part of a technology-led procurement transformation jesse hanger, specialist...

Leveraging SaaS as Part of aTechnology-led Procurement Transformation

Jesse Hanger, Specialist Master

Sean Rhoades, Senior Consultant

September 29, 2014

Soft·ware·as·a·Ser·vice (SaaS) (/sæs/ or /sɑːs/)

a licensing and delivery model in which software is centrally hosted and licensed on a subscription basis

trans·for·ma·tion (/tɹæns.fɔɹ.meɪ.ʃən/)

a thorough or dramatic change in form or appearance, especially one for the better

Deloitte has identified several trends within the marketplacedirectly related to procurement technology

Contract ComplianceMinimize rogue contracting through efficient management and tracking of contracts through a central repository including full-scale template driven authoring

User AdoptionFocus on the end user experience to reduce or eliminate resistance to change

Single Global InstanceUnlock new opportunities by creating a single global instance and installing standardized process and building in regional requirements

Mobile DevicesDevelop a strategy encompassing workforce mobility, ideally it improves usability

Touchless ProcurementContinue focus on reducing total number of touches, and eliminating physical touches

Extended Supplier Relationship ManagementOptimize relationships with trading partners and manage performance, compliance, and information flow

Increased use of AnalyticsBuild the right internal capabilities to leverage the power of analytics to track savings and enhance reporting effectiveness

Supplier Self Service / Supplier NetworkConnect suppliers through self service and allowing collaboration and automation through transactions across a network or portal

Category Specific SolutionsTo fully address spend, leading organizations are configuring solutions by category

Cloud SolutionsLicense based, cloud solutions that require less maintenance and shorter deployment timeframes

3 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Procurement organizations are facing challengeswith common themes emerging from the CPO community.

“We know we need to invest in procurement technology, but

we don't know where to invest to get maximum benefit fast"

Operating Model Enablement

Productivity"Our Procurement organisation is already stretched, but being

asked to increase savings further"

Collaboration and Innovation

“Procurement must get under the skin of what the business

needs by being able to ask the right questions."

Benefits Realization and Control

“We need to ensure that hard negotiated savings are realized

within a complex global environment”

Sources: 1) The Deloitte Global CPO Survey 2013 2) Gartner "Establish a Savings Management Process to Drive Procurement's Financial Performance", 2013.

91%of top performing CPOs place high/very-high importance on savings management2

70%of CPOs plan to invest in technology in 20141

77%of organizations are already working in cross functional teams1

79%of CPOs see cost reduction as a top priority1


Chasing trends is not the answer, organizations need to unify technology and leading trends to solve tomorrow’s challengesWe identified six pillars to focus your procurement strategy and approach to combat procurement challenges.

Operating Model Enablement

Benefits Realization and Control

Collaboration and Innovation

Productivity

PROCUREMENT 2.0

On-lineCollaboration

MobileWorking

SocialNetworking

EmbeddedAnalytics

CloudDeployment

UsabilityPrioritized


Common Themes from CPOs

Most organizations are choosing a solution involving the cloud

Hybrid solutions, with On-Premise ERP complimented by SaaS solutions, continue to be a path of choice for a growing percentage of companies.

41% Percent of organizations complement or plan to complement their ERP systems with SaaS solutions2

When considering SaaS Procurement Software, 66% will either complement or replace On- Premise with SaaS (up from 54% in 2013) 2

90% of new Procurement Applications deals involve cloud solutions1

Sources: 1) Gartner "The Top Four Impacts of Cloud Computing on Procurement Applications". 2) Forrester "Application Adoption Trends: The Rise Of SaaS".


On-Premise versus SaaS / Cloud is not an either-or decisionHybrid solutions allow organizations to take advantage of SaaS solutions while still maintaining best-of-breed vendors.

Hybrid Solutions• Contains SaaS and On-Premise modules or solutions• Allows for shorten deployment timeframes across the

enterprise• Increases ability to scale and expand scope• Leverages pre-built integrations and APIs

• Allows organizations to strategically select modules to deploy early

• Ability to use system internally or externally• Handles complex goods and services• Increases flexibility and speed to value


Procurement

Financials PurchasingSupplier

Management

Sourcing Contracts

SaaS

On-Premise

Illustrative Hybrid Solution

Reducing complexity is one key to overcoming challenges. Top organizations utilize 80% fewer platforms and 37% fewer applications.

Systems of InnovationQuickly adopt new concepts

Systems of DifferentiationOrganization or Industry

unique processes, dynamic

Systems of RecordCore processes, follow common standards, common approaches

Best-of-vendor and best-of-breed strategies should be combinedDeveloping a Pace-Layer strategy helps to identify which systems should be part of an application suite, and which systems should be integrated with an application suite.

Workforce Social Media

Innovation / Project Management

Predictive Analytics

Custom developed applications

eSourcing / eProcurement

Extended Supplier Relationship Management

Inventory Management

Core Financials

Manufacturing


Illustrative Breakdown of Systems by Layer

Regular strategy reviews help identify when systems migrate between layers.

Procurement Transformation ConsiderationsThings to consider when deploying procurement technologies.

Cost Model

Number of Integrations

Deployment Timeline

Scalability

Number of Customizations


10

Key concepts when considering a SaaS strategy

SaaS / Procurement PlaybookMaximizing the value of SaaS solutions requires different priorities than traditional procurement initiatives and technologies.

Strategy

Approach

Deployment

Sustainment

• Strategy: Layering = Flexibility

‒ Accelerated timeline requires different communication approach

‒ Focus on the business case and communicate benefits

• Approach: Stay agile!

‒ Use an iterative approach to design sessions

‒ Integrations require concurrent design, build and test phases

• Deployment: User adoption is #1

‒ Create challenge sessions to limit customizations / integrations

‒ Increase your testers and super users

• Sustainment: Singles win games

‒ Promote early success and benefits

‒ Leverage support services


Questionsand Answers

leveraging saas as part of a technology-led procurement transformation jesse hanger, specialist...

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