procurement and spend analytics -...

Procurement and Spend Analytics

Customer Case Study

November 20, 2009

Kshitij Kumar & Sravan Daggupati

Apps Associates LLC

Atlanta Oracle Applications User Group

Atlanta OAUG November 2009 2

Why BI Apps

Welch’s Case Study

Procurement and Spend Analytics Dashboards

KPIs

Reports

Live Demonstration (time permitting)

Summary

Agenda


Disclaimer

The following is intended to outline Speaker's ideas on the

topic. It is intended for information purposes only, and may

not be incorporated into any contract. It is not a

commitment to deliver any material, code, or functionality,

and should not be relied upon in making purchasing

decisions.


Business Intelligence Perspective

1960 1970 1980 1990 2000 2010

$

Implement

& support

Make

Buy

ERP

BI

MRP MRPII

Customized

Mainframe

Software

Adoption Curve


Offices in USA, Germany and India MA (HQ); NY/NJ & Atlanta in 2009

Founded in 2002 with >100 % growth every year for last 5 years:

Inc. 500 list of fastest growing private U.S. companies

Over 250 employees (end of Q3 2009) with strong local presence

Management & Sr. Consultants: 75% former Oracle employees

Making Global Delivery Feel Closer To Home

Oracle’s Pillar Partner for OBI and BI Apps

Top 20 in North America

#1 in North East

About Apps Associates


Representative Clients

more…

http://www.interactivedata.com/

http://www.vectron.com/

http://www.akamai.com/


Kshitij KumarVice President of Business Intelligence

15 years industry experience

Sravan DaggupatiPractice Manager

10 years industry experience

Lead Oracle BI Implementations

About Speakers

http://esp-global.com/


Multiple Data MartsBusiness Units Disparate Systems

Data Store1

Multiple BI Tools

BI Tool1

BI Tool2

BI Tool3

BI Tooln

BUn

BU3

BU2

BU1

Data Store2

Data Store3

Data Store n

Driver for Business Intelligence


Welch Foods Inc.

• Business Challenges

o Limited visibility into KPIs

o Lag time between business

event and key data

o Heavy dependence on IT

• IT Challenge

o Multiple source and end user

systems

o Design and scalability of

custom datawarehouse and

reports

o Demand to handle constant

change and rework of

business scenarios

o No tool to report on OPM and

ASCP

Oracle Products / Solution • Implement OBI-EE / BI Applications

• Finance

• Supply Chain and Order

Management

• Procurement and Spend

• Build BI App Modules for:

• OPM (Oracle Process manufacturing)

• ASCP (Advanced Supply Chain and

Planning)

• Integrate Custom Data Warehouse

Oracle Solution


OBI and BI Apps

EPM Workspace

Fusion Middleware

Business Intelligence Foundation

BI ApplicationsPerformance Management

Applications

PERFORMANCE MANAGEMENT APPLICATIONS

Strategy

Management

Business

Planning

Profitability

Management

Financial

Reporting &

Compliance

Service

Contact

Center.

Mktg.SC

&OM

BI APPLICATIONS

Procure

&Spend

HR Finance

Oracle BI Suite EE

Plus

Ad-hoc Analysis

ProactiveDetectionand Alerts

MS OfficePlug-in

Reporting & Publishing

Interactive Dashboards

DisconnectedAnalytics

WebServices

Traditional / Custom

Pre-Built (Best Practice)

Hybrid

PackagedETL Maps

UniversalAdapters

IVR, ACD, CTIHyperionMS Excel

Other Data Sources

DW Schema

Projects

http://www.sap.com/index.asp

http://www.siebel.com/

http://www.peoplesoft.com/corp/en/public_index.jsp


Prepackaged Analytics

Travel

& TransAuto

Comms

& Media

Complex

Mfg

Consumer

SectorEnergy

Financial

Services

High

Tech

Insurance

& HealthLife

Sciences

Public

Sector

and Other Operational

& Analytic SourcesSource adapters:

MarketingProcurement

& Spend

Supply Chain

& Order

ManagementFinancials

Human

Resources

Employee Productivity

Compensation

Compliance Reporting

WorkforceProfile

RetentionAnalysis

Return on Human Capital

General Ledger

AccountsReceivable

AccountsPayable

Cash Flow

Profitability

ExpenseManagement

Revenue andBacklog

Inventory

FulfillmentStatus

CustomerStatus

Order Cycle Time

BOM Analysis

Direct / Indirect Spend

Buyer Productivity

Off Contract Purchases

Supplier Performance

Purchase Cycle Time

Employee Expenses

Campaign Effectiveness

CustomerInsight

Product Propensity

Loyalty &Attrition

Market Basket Analysis

Campaign ROI

Service &

Contact

Center

ServiceEffectiveness

Customer Satisfaction

ResolutionRates

Service RepEfficiency

Service Cost

Churn & Service Trends

Oracle BI Suite Enterprise Edition Plus

Projects

Funding &Agreements

BudgetsAnalysis

Revenue Analysis

Billing Analysis

Cost

Analysis

ProfitabilityAnalysis

http://www.siebel.com/

http://www.sap.com/index.asp

http://www.peoplesoft.com/corp/en/public_index.jsp


Out of the Box - Components


Supply side performance by integrating data from across the enterprise value chain

Increases visibility into the complete procure-to-pay process

Gain efficiency with comprehensive spend and procurement analysis

Quantify Supplier performance

Employee expense analytics

Procurement and Spend - Overview


Business Users and Management

Business Ownership to drive the implementation

CFO

Supply Chain and Procurement Executives

Procurement and Commodity Managers

Cost Center and Inventory Managers

Buyer

IT Users and Management

BI Manager

Oracle BI Administrator and Developers

ETL Developers

Target Users / Stakeholders


Procure and Spend - Flow


Procure to Spend - Decision Flows


Procurement PerformanceCurrent Status Requisition Processing

Procurement Effectiveness Receipt Performance

PO Price and Contract Leakage

Spend AnalyzerSpend by Category Spend by Supplier

Spend by Organization Item Details

Supplier PerformanceTrends Exceptions

Supplier Payables Quality Performance

Delivery Performance Price Performance

Employee ExpensesManager Expenses Cost Center Expenses

Procurement and Spend Dashboards


Procurement Performance Dashboard

•Value of outstanding commitments

•Are requisition being managed effectively.

•Are Purchased orders being issued, filled according to policy?

•How will current procurement impact cash flow?

•Are purchasing trends similar to prior periods, if not why?

•Are prices creeping up? What could be done to control them?


Spend Analyzer Dashboard

•What are we spending on?

•Can I find ways to save money?

•Who is buying the most or least?

•What are organizations, locations, projects buying?

•Are there changes in spending patterns?


Supplier Performance Dashboard

•Who are my biggest suppliers?

•Who are my best suppliers? Worst suppliers?

•Are we sufficiently taking advantage of volume discounts?

•Which suppliers deliver on time, consistently?

•Are our suppliers invoicing us correctly?

•Are there changes in spending patterns?

•Are there outstanding supplier payment issues?


Employee Expenses Dashboard

•How much are my employees expenses (T&E)?

•What organization / regions / people are spending the most?

•What are they spending it on (expenditure types)?

•Are there any changes in spending patterns? Any outliers?

•Are we following our employee reimbursement policy

•What are the expense report submission timings (day of the

month, week of the quarter)?


More Reports


More information required? Existing Reports not good enough? Want to report additional fields?

Reduce IT dependency for additional Information?

Oracle Answers as ad-hoc reporting tool (similar to Discoverer)

Procurement and Spend Subject Areas

Pick the columns to build ad-hoc reports

5 Subject Areas

Various Dimensions and Facts

Ad-hoc Reports: Oracle Answers


Implementation Approach / Best Practices

Pilot Project

Finite set of data to reconcile

Engage users upfront

Report Rationalization

What questions are answered by the report

Design the Roadmap for future implementations based on the pilot project results

Design to enhance and reuse the existing investments

Right architecture for scalability

Adhere to the customization guidelines to preserve in upgrades

Engage with experts

Incremental builds and change control board


Cost of Ownership & ROIBuild from Scratchwith Traditional BI Tools

Oracle BI Applications

Prebuilt Business Adapters for

Oracle, PeopleSoft, Siebel, SAP,

others

Prebuilt DW design, adapts to your

EDW

Role-based dashboards and

thousands of pre-defined metrics

Easy to use, easy to adapt

Weeks or Months

Back-end ETL andMapping

DW Design

Define Metrics& Dashboards

Back-end ETL andMapping

DW Design

Define Metrics& Dashboards

Training / Roll-out

Training / Rollout

Months or Years

Results• Faster time to value

• Lower TCO

• Assured business value

Source: Patricia Seybold Research, Gartner, Merrill Lynch, Oracle Analysis


Extension of DW Schema for

extension columns, additional

tables, external sources,

aggregates, indices, etc.

Extension of ETL for

extension columns,

descriptive flexfields,

additional tables, external

sources, etc.

Additional derived metrics,

custom drill paths, exposing

extensions in physical, logical and

presentation layer, etc.

Additional dashboards and

reports, guided and conditional

navigations, iBots, etc.

Level of

EffortDegree of Customization

Easy

Moderate

Intermediate

Involved

Dashboards & Reports

OBIEE Metadata

DW Schema

ETL

Typical Effort & Customization


Summary – Typical Results and ROI

Financial:

1. Existing ERP systems can remain as is. Future upgrades etc do not affect

business insight

2. OBI leverages heterogeneous data sources. Helps to consolidate costs

around licensing , maintenance and other support costs

3. Reduced Training, Helpdesk Support and IT infrastructure costs

4. End user empowered with timely data and Self Service reporting (Oracle

Answers) hence freeing up IT resources to work on other initiatives – reduce

cost of new hires

Operational:

1. Single Source of truth

2. Cross functional / department view

3. One tool for both operational and KPI reports

4. One tool to cater all levels of users in an organizations

5. Increased governance and risk since no data movement to multiple systems

6. All business units speak the same language for all business KPIs and terms


Thank You

BI is evolution not revolution…

…take time to evolve

[email protected]

508-395-3423

Boston, MA (HQ)

[email protected]

404-386-0633

2300 Lakeview Parkway, #700,

Alpharetta, GA 30009

mailto:[email protected]

mailto:[email protected]

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