signyc distrupting-status-quo - coupa
TRANSCRIPT
7 Ways Procurement Innovation is Fundamentally Changing
Spend Management
Innovation
in·no·va·tion
noun the act of innovating; introduction of
new things or methods
Why is innovation so important?
Innovation is what moves us forward to be able to: Be more efficient
Be more effective
Save (time, money, lives, etc.)
Improve quality
Make new discoveries
Stay on the cutting edge
Be thought leaders
How we power our lives
VS
How we travel
VS
How we commute
VS
Innovation has redefined everything we do!
How we communicate
VS
How we buy
VS
How we shop
VS
E-Procurement 1.0
Improved efficiency and handling Took what was being done on paper
and put it online
Reduced the need for manual intervention
Automated basic workflows like requisition approvals
Introduced supplier networks
Basic integration into certain systems like ERP
Stalled Innovation
E-Procurement 1.0 required a robust technological backbone Quarters-to-years to implement
Delayed time to value
Limited ability to prove ROI
Teams of resources to setup and maintain
Technology and market conditions stalled innovation Dotcom bust
Technology skepticism
Introducing the Cloud & Web 2.0
More applications and innovation that have once again redefined the way we… Communicate (social networks, blogs)
Get information (RSS, newsfeeds)
Shop (online auctions, name your own price, supplier aggregators)
Manage and maintain applications (less software, less hardware)
And it is redefining the way that procurement, purchasing and sourcing organizations work
7 Innovations That Are Changing Procurement
1. Take the best from Web 2.0 to drive adoption
2. Leverage the power of the crowd to save even more
3. Notify the right people to prevent overspending
4. Educate employees as they buy to increase compliance
5. Integrate and collaborate between systems
6. Demonstrate real results and value
7. A single platform for controlling all indirect spend
Innovation 1Take the best from Web 2.0 to drive adoption
The Status Quo
Enterprise software has to be hard Designed for functionality, not usability
Requires hardware, software and IT to support
You need to be a highly trained expert to use it
Disruptive Innovation
Enterprise software can be as easy as consumer software
Web 2.0 introduced a new generation of applications that Are more user friendly and user focused
Puts power in the hands of the end user
Makes it easier and faster to share information
Provides a forum for anyone to say anything
Impact on Procurement
1. Easy to use, familiar experience As easy to use as performing a
Google search
1. Easy to use, familiar experience As easy to use as performing a
Google search
2. Solutions that empower users One set of results provide purchase
options across all channels
3. Take advantage of global suppliers and deals
Easily purchase from any supplier within the process
1. Easy to use, familiar experience As easy to use as performing a
Google search
2. Solutions that empower users One set of results provide purchase
options across all channels
Innovation 2Leverage the power of the crowd to drive adoption
The Status Quo
Only professional buyers can source good deals
They are the most educated on suppliers in the space
Have the skills to negotiate favorable terms and prices
Are able to manage the process to choose the right supplier for the right purchase
Disruptive Innovation
Anyone can find a good deal! Online world changed the way we buy – personally and
professionally Buyers – not sellers – are in control
No more global boundaries, you can buy from anyone at anytime
Improved tools for comparison shopping, naming your price, etc.
Impact on Procurement
1. Employees are skilled bargain shoppers
They bargain shop in the personal lives
2. Employees are “experts” on what they need to get their job done
They know what they need and who niche suppliers in the particular area
3. Procurement does not have to be involved in every single ad-hoc purchase
Employees can buy from any source through the process
Innovation 3
Notify the right people to prevent overspending
The Status Quo
Too little, too late information Hard to access, disjointed data
Manual processing to calculate key metrics
Received once action has already been taken
Disruptive Innovation
Real-time data means real-time results Faster access to data necessary for smarter business
decisions Instant access lets you know what is happening at that exact
moment
Proactive, customized alerts keeps you abreast of important things as they happen
Impact on Procurement
1. Be in the know in real-time Email and mobile budget and spend
alerts
2. Understand consequences BEFORE taking action
Know the budget impact before you decide to approve
3. Stay on track and on budget Predict spend based on historic
trends
Innovation 4
Educate employees as they buy to increase compliance
The Status Quo
Policies are created, but often ignored Published in paper manuals or company intranets
Information not easily accessible during purchase
Employees are trained once
Disruptive Innovation
Empowerment, not only enablement E-Procurement empowers users beyond just filling out a
form Use the process as a chance to educate employees on how to
buy and from where to buy
Get end-users involved in providing feedback on suppliers and product quality
Impact on Procurement
1. Employees are educated as they buy
“How to buy” policies are accessible WHEN they buy
2. No more excuses for not knowing
Inline alerts let users know if they are missing information
3. Share your experience
Automated requests encourage users to share their feedback
Innovation 5 Integrate and collaborate between systems
The Status Quo
Procurement has e-procurement, accounting has ERP, employees have order forms, etc.
Multiple, disparate systems
Limited ability to work across departments
Forces manual intervention
Disruptive Innovation
Faster, easier, cheaper integration More common, compatible platforms and technology
Out-of-the-box system connectors
Open APIs for integration with key systems
Automatic data flow between systems
Users continue to use existing systems with little disruption
Impact on Procurement
1. Eliminate the need for manual rekeying of data System synching automatically passes information from system to
system
2. Continuous information and process flow between departments and systems
Customizable business rules, approval workflows, invoice tolerance matching, etc.
3. Accelerate the time to value in other investments Extend the power of your existing systems through integration
Innovation 6Demonstrate real results and value
The Status Quo
Procurement is a necessary function, not a strategic asset
Spending-centric vs. savings-centric
Things HAVE to be bought for business
Use it or lose it planning and budgeting
Disruptive Innovation
Procurement is critical to company success
Procurement has the power to drive real efficiencies and savings
True process automation with flexible workflows for quick changes / corrections
Data / feedback to identify the best suppliers, terms and deals
Greater visibility and control to eliminate wasteful, unapproved maverick spending
Impact on Procurement
1. Procurement is focused on savings – not spending!
New tools, resources and insights narrow in on where savings can be obtained
2. Real-time process management and changes
Easily add / remove people from workflows or change limits based on roles, responsibilities and behaviors
3. Comparative benchmarks
See how you stack up to similar users, other companies and the competition
Innovation 7
A single platform for controlling all indirect spend
The Status Quo
Purchases are managed through one system, expenses are managed through another
Unable to get view of all spend against a specific budget Have to rely on finance to provide spend insights Two separate systems to pay for, two separate systems to
maintain
?Requisitions Expense Reports
Disruptive Innovation
Multi-tenant, cloud computing platforms Support multiple roles, workflows and applications
through a single platform One line of code means always the latest release and innovations
One platform equals one database for comprehensive reporting
One system for users to access, one process for approvers to manage
Impact on Procurement
1. One system to drive 100% budget compliance
Purchase requisitions and expense reports managed from a centralized system
2. Consistent user experience
Same easy-to-use interface for requests and approvals
3. One system to maintain
One system to upgrade, keep information current and to train employees on
Innovation in Action
Demo
Summary
Innovation is key to improving and moving forward
7 recent innovations have radically changed procurement1. Take the best from Web 2.0 to drive adoption
2. Leverage the power of the crowd to save even more
3. Notify the right people to prevent overspending
4. Educate employees as they buy to increase compliance
5. Integrate and collaborate between systems
6. Demonstrate real results and value
7. A single platform for controlling all indirect spend
Move to the cloud to get the latest and greatest Cloud technologies make it possible to stay up-to-date without upgrade or IT
headaches
A
Q&
Rob BernshteynChief Executive [email protected]
Mark CarltonDirector, Solutions [email protected]
THANK YOU!