#p2ptransform19 · source: hfs research in conjunction with kpmg, state of intelligent automation,...
TRANSCRIPT
#P2PTransform19
Robotics - Artificial Intelligence – Automation
Business Partnering – Culture Shifts
Corporate Social Responsibility
What will the next 5 years bring…?
AgendaOpening remarks Ellen Leith, Editor Purchase to Pay Network (PPN)
Keynote Speaker Matthew Syed, introduced by Nick Hunt, Enterprise Account Director, Tradeshift
Panel Discussion Led by Ollie O’Donoghue, HFS
Ganna Pogrebna – Alan Turing Institute, Rakesh Sangani, Proservartner, Andrew Parris, Tarmac
Networking Break 11:25 – 12:00
Lunchtime Keynote Kate O’Neill, Sponsored by Documation
Lunch served 13:00 – 14:00 *Build a Bot sessions
Agile Sessions Breakout rooms Broomhouse Room & Mulgrave Theatre
Networking Break 16:10
Awards and Prizes PPN Awards, Prize Giving, Champagne reception
Event ends 16:45
Say hello to our partners
Keynote introduction by Nick Hunt of
Panel discussion – lead by: Ollie O’Donoghue, VP HFS
With:
Rakesh Sangani – Proservartner
Ganna Pogrebna – Alan Turning Institute
John Wallace - CEO at Documation
Source: HFS Research in Conjunction with KPMG, State of Intelligent Automation, 2019 Sample = 590 Business Leaders including 100 C-level executives
What is the current state of adoption of the following Intelligent Automation technologies in your organization?
P2P Technology's Nothing Without
Talent and Culture
Dan Foley
Finance Shared Service Director
Kier Group plc
13
Context ……..
PTP Technology has many parts … too many for 35 minutes …….
Data ……
Uncover how to take a leadership role over your data, and not just pay
lip service.
Learn the importance of getting the basics right and understand the
emotional impact of data.
The "it will do" approach will no longer cut it.
Understand the parts Procurement and Finance play in creating a rich
environment for data analysis to support business outcomes.
Understand what sort of talent to look for and foster in your team and
how the culture you create can have just as much impact as the
technology you use.
14
Data
In unchartered waters when it comes to Data and Data Science
“we are entering a new world where data may be more
important than software” Tim O’Reilly
Pace of change in Data is moving at a rate unseen in the past
Automation, failing faster and clarity are driving change like never
Continue to trade Data against Time/Resource
“most of the world will make decisions by using their gut – they
will either be lucky or wrong” S. Doshi
Now … do you want your Data direction to be lucky, wrong or
considered? Who know holds the power?
15
Leadership not Lip service
Looking on / Waiting / Following is an option for some but not all
Understanding, Sponsorship and Funding will define where your
organisation is on the Data/Data Science curve
On-line retailers 7 second technology response to product price
changes / Military BI activities
3 elements need exploration/leadership when we consider Data future
Data Explosion .. The new “big bang”
March of Machines
Thinking in the Clouds
Where is your organisation’s thinking here? And Leadership?
Followers in the main but don’t just say “yes” and do nothing
16
Getting the basics right
Data underlies every decision
If the data is bad, the decision will be bad ……
Many data projects were
too encompassing (boil the ocean approaches)
not tied to business objectives and goals
didn’t have the right foundation
Integrating data across multiple systems is ripe with challenges due to
data quality
data definition
data ownership
17
Data Driven organisations
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One organisation believes that to
enable a company to become data-
driven, the right foundation begins
with a 3-prong approach:
Enterprise approach where the
data is now owned / controlled at
Group level,
Enterprise data governance
committee
Mature Data Warehouse based
on a mature data strategy model
Emotional Impacts of Data
What do you think they may be?
It will be what it will be! Really?
Wow!
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I’m Ok - you’re Ok
Thomas Harris’s seminal 1967 book on Parent – Adult – Child
relationships
Homework … last moment .. “it will do” …. Really?
Children will do what they see or want
Parent will demand
Adult needs to coach, nurture and set examples
What response do we play when we consider day2day role of Data?
Data cleansing … last moment … wrong people doing it?
Data archiving …. approach flawed … get over the line?
Data maintenance v Data management … which one trumps?
20
All Blacks Focus - Excellence
“It will do” isn’t good enough
OK is NOT OK!
Standard Setters – who are the leaders?
It comes NATURAL – or looks like it!
Champions DO EXTRA .. All the time
On-field Leaders – step up and make decisions
Sharp feedback mechanisms – take it and get on with it ...
Deep meaning to be All-Black – getting a jersey means something
“sharp, cutting-edge, performance excellence”
Can this be taken into how organisations consider Data?
Procurement and Finance’s role
“Never share your bed with
someone who doesn’t share your
dreams”
Japanese proverb
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Future …
Where Finance and Procurement can grow together on data
Shared dreams and goals – act as not
Agreement of Strategic and Tactical importance of Data
What Business Outcomes are both together trying to deliver on?
Creation of Data Excellence Unit – to plan and map the future
Standardisation – across end2end process -
Continous Experimentation
Don’t seek a two-way solution … it will only confuse
“come together”
23
Our People challenge in Data
Understand what sort of talent to look for and
foster in your team
Culture you create can have just as much
impact as the technology you use.
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Talent
“without data, you are just another person with an opinion” Denning
Our futures are intertwined with those will work with and through data
Clear basis towards Data staff now being “unique contributors”
Moving beyond “nerd/shoe-gazing” to influencers
Recruitment skillsets moving away from systems to
Knowledge / decision making / future thinking / innovative
Not just what organisations want .. What does the team member want?
Freedom / Responsibility / Ability to “fail without fear” / Investment
Do organisations really understand the change and how future
requirement will impact on talent recruitment, development and
retention? I’m not so sure ...
25
Data Culture Excellence…
What should the Culture drivers be?
Consistently outperform peer group over period of time
Come out better having been “in the right environment”
Want to do more, better, quicker and want to enjoy
Basic Premise
People are adaptive beings
Specific circumstances stimulate improved performance in people
Create right conditions to deliver better performance
Determine the Performance Culture
3 levels for sustained the right culture
The Plan / The People / The High Performance Environment
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Leadership
Management
Team Members
Accountability
PowerDirection
Reality
‘Performance Culture’
Leadership Culture
Data Culture ….. Performance Driven
Data ….. Moving from …….
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Only way together is COLLABORATION / REALISATION
“The past was yours but the future is mine” NOPE!!
Its not his or hers to do ,,, its not even yours, its OURS
29
Thank you
30
#P2PTransform19
ADOPTING NEW PROCURE TO
PAY SYSTEMS: THE
NEUROSCIENCE OF CHANGE
Becca Brighty, MSc MBPsS
Key takeaway: what can I do
to minimise the threat
response and maximise the
reward response within my
colleagues’ brains?
What we will cover
• Why am I here?
• Why you should care about neuroscience
• Change and employee engagement
• The brain
• The brain during change
• What can we do?
• Questions
Why should you care about
neuroscience?
• It is simple
• It’s not a fad
• To get the best out of something you need to
understand it
The Brain
Main goal- survival
How? Minimise threats and maximise rewards
The brain is a prediction machine
Brains love shortcuts
The brain sees the workplace as a social system
The brain is not designed for the 21st century workplace
Why our brains don’t like change
Why change efforts fail- leaders fail to engage employees (Kotter, 1995)
Change= threat… physiological changes (fight or flight response)Change= can’t predictChange = colleagues are a threat, not part of my tribe
Threat state= survival state. All non-essential functions turned off.Impossible to be fully engaged
What can we do?The social brain
• People not strategy!
• Demonstrate fairness and equality
• Use the word “Together”
What can we do?Our brains as prediction machines
• Communicate communicate communicate!
• Avoid cognitive dissonance
• Manage and coach
Worries
1. People with more system
knowledge than me and who
are better at using computers
will get more opportunities
and promotions.
2. One day technology will take
over everything and there will
be no need for humans in the
workplace
3. I won’t understand the system
Our brains are not designed for the
21st century workplace
Driving tangible value to your business through AP
P2P Transformation SummitAnthony “Ant” Persse
€1.3tr€1,300,000,000,000
0.
5,000.
10,000.
15,000.
20,000.
25,000.
GD
P in b
illio
n U
SD
Country
Countries with the largest gross domestic product (GDP) 2017
International Monetary Fund
Gizmodo’s Graphical representation of $1tn
PWC - Navigating uncertainty: PwC’s annual global Working Capital Study – European all industries statistics
2018 / 19
So what is Working
Capital?
How can it drive cash
to businesses?
The Facts
Faster receivables in
Faster churning stock
Slower payments out
How much cash is created for an organisation with €500m spend if they delay their payments by just one day?
€1.37mHow much cash is created for an organisation with €500m
Turnover if they speed up receivables by just one day?
Or
Negative Working Capital Gap
Working Capital
Gap
Supply Chain & Working Capital - Buyers
Day 0 Day 30 Day 60 Day 90 Day 120
Goods
Purchase
d
Goods sold
for cash
Supplier
paid to
terms
Goods
Purchase
d
Supplier
paid to
terms
Goods enter
manufacturing processStock Days
Goods sold
on creditDebtor Days
Payment
received
Grocer =
Manufacturer =
1 PWC - Navigating uncertainty: PwC’s annual global Working Capital Study – European all industries statistics
NWC Days = 42.3 Days
Debtor Days
(DSO 51.8)
Goods
Purchase
d
Stock days (DIO 58.2)Goods sold on
credit Supplier paid
(DPO 67.7)
Payment
receivedActual1 =
Supply Chain
Finance
Supplier Led Solutions
New
Solutions
Buyer Led Solutions
Technology
+
Data
SCF Solutions and Awareness – Larger orgs
49%
16% 19% 27%
37%
64% 57%60%
14% 21% 24%13%
SUPPLIER FINANCE / REVERSE
FACTORING
INVENTORY FINANCING AND ASSET
BASED LENDING
TRADITIONAL INVOICE
FINANCING
DYNAMIC DISCOUNTING
W ITH SUPPLIERS
SCF SOLUTIONS AND AWARENESS
Unaware
Conidering / Aware
Adopted / Under Implementation
23% run more than one
SCF programme
55% run an SCF
programme
41% Who don’t run one
are considering it
1 PWC - - SCF Barometer 2018/2019
SCF Roll-out continues to grow
Year of implementation
However…
26%of spend is covered by
an SCF Solution
Onlyx Tier 2 suppliers or below
x Suppliers in financial hardship
x Suppliers with limited spending
1 PWC - - SCF Barometer 2018/2019
SMEs
Challenges for large businesses
Accounts Payable departments
are burdened with handling payment
status inquiries
of AP departments believe that invoice inquiries from vendors and internal staff distract from AP staff priorities1
68%
1 Deloitte, “Global Chief Procurement Officer Survey”, 2018
Regulation
Data thin
Risk weighting
Cost of onboarding
Income potential
Complex onboarding
Use of more portals
Lack of awareness
Limited availability
Lack of trust
Why?
What about the
suppliers?
What about the
SME suppliers?
99%of businesses are SME’s
UNSURPRISINGLY
small business is
BIG BUSINESS
UNSURPRISINGLY
small business is
BIG BUSINESS
Meet Benji…
Recap
There is a huge potential for cash to be released through working capital
There is a clear disconnect in the cash flow and working capital challenges
There is significant growth in Supply Chain Finance
Yet, only a relatively small percentage of spend is covered by this
SCF Solutions are often targeted towards larger businesses
Smaller businesses struggle to obtain liquidity
Smaller businesses often non-strategic can be distracting to buyers AP teams
The Supply Chain Finance Landscape
Supplier Finance
Traditional &
Spot Invoice Finance
Opportunity to supportSp
en
d
Trade Finance
Inventory Finance
Dynamic Discounting
o Complex supplier onboarding
o Dependent on supplier use of platforms
o Decision makers can be tough to reach
o Focused towards larger businesses
o Unattractive for micro / small businesses
Simple supplier onboarding
Not platform dependent
The decision maker often wears many hats and is easy to reach
Informed by buyers and user tested by suppliers
Often transactional / consumer led
Personal savings, Credit cards, Loans,
Overdrafts, Friends and Family
Objective
BuyersCreate operational efficiencies and financial benefits whilst
supporting a positive CSR message
SME SuppliersGenerate convenient, simple and fast access to much needed liquidity
without the fear of hidden costs or unreasonable levels of security
We are building a buyer facility that…
Insights and success
metrics
Simple set-up
Flexible participation
Strong controls
Search functionality
Intuitive user experience
Two-way communications
Updates
Agnostic
integration
+
Supports push or
pull data transfer
We are building a supplier facility that…
Offers maximum convenience
Proactively notifies suppliers that an invoice has been approved
That offers market leading speed and delivery of funds
That needs no security to be provided
Is completely flexible
Does not have any fees or charges – just a small discount
Has no convoluted onboarding process
Does not impact on credit scores
Does not need a portal for SMEs to access funds
Responsible and cost effective
Soft Benefits Hard Benefits
Benefits to the Buyer
CS
R
Focu
s
Access
Reduced Costs
Increased
Income
Cash-flow Benefits
Supporting SMEs who are generally
underserved by financiers with their liquidity
needs
Reducing effort to serve smaller often
non-strategic suppliers allowing focus
on larger strategic suppliers
Increased access to wider supplier based
delivers greater choice
Wider supplier pool and operational costs
Supplier access admin payment and
discount participation
Harmonisation of terms
COMING SOON
“A working capital solution for
all”
Thank you for your time…
SEE YOU NEXT YEAR
Tuesday 9th June 2020, Hurlingham Club, London
Finally…