simplifying it product overview

TITLE

Simple Buying Experience

(SBx)

Product Overview

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Copyright 2008-2010 by Simplifying-IT, LLC

"Delivering Tomorrow's Solutions Today!"

SBx – Simple Buying Experience for SAP e-Procurement

2

SBx Home Page

• The SBx software platform

provides a new UI that was

specifically designed to greatly

simplify and enhance the full

Procure-to-Pay (P2P) end-user

experience to increase adoption

and compliance of SAP-based e-

Procurement.

• SBx runs directly on your existing

SAP system and sits on top of

SRM, MDM, MM, PS, CS, and PM;

SBx connects real-time using an

Enterprise Service Oriented

Architecture (eSOA).

3

Aberdeen Research has found that even mature e-Procurement programs (average 5+

years) typically have failed to achieve targeted goals, largely due to user adoption:

“User adoption continues to be a challenging aspect of an e-procurement initiative and

an intuitive, easy to use procurement system is required to drive user adoption.”

Performance Area Average Best-in-

Class/Target*

ROI GAP

Spend Under Management 60% 88% 28% More On–Contract

User Adoption 63% 90%* 27% More User Adoption

Requisition-to-order cycles 3.4 days < 1 day 70% Faster Cycle Time

Percentage of maverick

spend23% 17%

6% Less Maverick Spend - Avg.

Lost Savings 12%

Off-Catalog Requisitions 34% 10%* 24% More “Touchless” POs

Requisition-to-order costs $31 $22 29% Savings per PO

Source: Aberdeen E-Procurement Benchmark Report 2008, Aberdeen e-Procurement Trials and Triumphs 2007

SBx Closes the ROI Gap Caused by Low Adoption/Compliance

SBx – Benefits Summary

4

1. Enhanced User Experience and Adoption

2. Advanced Functionality Not Available in

Native SAP

3. Improved Compliance and Control

4. Leverages SAP Investment

5. Low Impact Change, High Impact ROI

SBx Benefit #1 – Enhanced User Experience and Adoption

5

Common Usability Issues:

Frustrated users

High documentation costs

High training costs

Increased time to

complete a request

Burden placed on

purchasing organizations

Increased errors due to

complex screens,

navigation, and confusing

terminology

Additional support costs

Increase in “maverick”

spending

Shop

Checkout

Approve

Status

Receive

SBX Usability Enhancements:

Cross-Catalog Shopping -

Punchout and Stored

“Consumer-Like” Rich Internet

Application Feel w/Images,

Detailed Specs

Side-by-Side “Anchored”

Product Compare

“Drag and Drop” Items to Cart

Auto-Classify Product Category

from Description

Easily Add Notes, Attachments,

Approvers to Requisition

Graphical Approval Process

Preview

Approval and Order Process

Visibility

Feedback Required if Order is

Rejected

SBx Benefit #1 – Enhanced User Experience and Adoption

6

A “Use Case” for Usability – SBx vs. SRM

Scenario: Requisitioner Shops Product Catalogs, Selects

Product, Determines Delivery is Within Lead Time, Assigns

Vendor, Checks-Out, and Places Order

SRM 5.0 – 15 Steps

SBx – 5 Steps • SBx eliminates 2/3 of the process steps

• SBx increases order accuracy,

compliance, and completeness – in 50%

less processing time on average

Click "Create Shopping

Cart"

Choose “Request

Type”

Enter "Product ID“

Click "Proceed to Checkout”

Click "Submit Order“

Click "Shop (Wizard)“

Click "Internal Goods/

Services"

Enter/ Search "Product ID"

Click "Start" Button

Click "Product ID“

Enter "Date“Click "Add to

Shopping Cart"

Click "Line Item“

Scroll DownClick "Source

of Supply”

Scroll DownSelect

"Supplier“

Click "Assign Vendor" Button

Click "Continue"

Button

Click "Order" Button

7

SBx Benefit #2 – Advanced Functionality Not Available in Native SAP

Usability Features

Drag/drop items to the shopping cart

Enhanced kitting/bundling

Complex Question/Answer functionality

Robust comparing including "anchoring”

Ability to approve/reject many requests at

once

Rejected items require a comment

Delivery date automatically proposed for

non-catalog items based on lead time

8

Compliance Features

Message issued if a user does not search

prior to executing a non-catalog form

Automatic supplier agreement(s) proposed

Automatic search and proposal of catalog

item(s) during a non-catalog request

Automatic. real-time “price-check” on saved

“Shopping List” templates

Automated product category proposed

based on non-catalog description

Ability to add a new catalog item directly

from a non-catalog request

Automatic proposal of less expensive

substitutes

Ratings, Reviews, and company Policies

assigned to catalog items

SBx Benefit #2 – Advanced Functionality Not Available in Native SAP

9

SBx Benefit #3 – Improved Compliance and Control

Shop On-Catalog or Off-Catalog

Select Approved Vendor/Product

@ Contracted Price

Adhere to Corporate

Buying Policy

Properly Classify Product

Requisition

Assign and Verify

Accounting Distribution

SBx P2P Process Compliance Checkpoints:

User alerted to

search product

catalogs before

executing non-

catalog form

X-Catalog

search (all data

sources) presented

in single UI

Ratings and

Reviews available

to help in making

the best buying

decision

Preferred

supplier

agreement/items

automatically

proposed

Less expensive

substitutes

automatically

proposed

Real-time “Price

Check” on

shopping list re-

orders

Fields “auto-

populated” to

reduce errors

Context-

sensitive, point-

of-need alerts,

(e.g., CapEx

requests >

$100K)

Company

Policies and

documentation

assigned to

categories

Accounting

information

displayed in

cart/req for

approval/review

“Auto-

Classification” of

off-catalog

request based on

description

More “Touchless” POs

– Fewer Off-Catalog

Reqs

More “On-Contract

Spend” – Less Maverick

Buying

Faster Cycle Time –

Less Rework

More accurate spend

analysis – Better

decisions

Faster Cycle Time –

Less Rework

SBx Benefit #4 – Leverages SAP Investment

10

• SBx runs directly on your existing SAP server and sits

on top of SRM, MDM, MM, PS, CS, and PM

• SBx connects real-time to SAP databases using an Enterprise

Service Oriented Architecture (eSOA)

• SAP User ID/Password is used for SBx login

• SBx is an unique P2P end-user UI that leverages your existing SAP

investment and requires none of the following:

New hardware

Additional database(s)

System modifications

Synching of master data

Synching of transaction data

SAP’s Enterprise Portal (EP)

Additional user authentication

SBx Benefit #5 – Low Impact Change, High Impact ROI

Low Impact Change

Up and Running in 3 Weeks

User Training Available But Not

Required

Annual Enterprise License Includes:

• Unlimited Users

• Implementation

• Upgrades & Maintenance

• Level 2 & 3 Support

• Training Documentation

High Impact ROI

Improvement Assumption

Improved Adoption/Compliance

• Increase Spend Under

Management 20% and Reduce

Maverick Spend by 6% (from

23% of spend to 17%)

• Average Savings on Re-

Captured Maverick Spend

12%

Illustration*

$3.6M Savings on

Re-Captured Maverick

Spend

Greater Process Efficiency

• Reduce Off-Contract

Requisitions from 34%

of all orders to 15%

• Average Savings on

Incremental, On-

Contract/On-Catalog

requisitions @ $9 Per

Order

*Illustration Assumptions: $500 Million in P2P Addressable Indirect Spend

100K Annual PO Volume

$.2M Process Cost

Savings on 19K

fewer off-catalog orders

12

The SBx team has been providing SAP-based

P2P solutions utilizing MM and SRM for 13

years and has worked with countless

customers, all of which had a similar message…

“SAP is very robust, but it is too hard to use.”

Beginning in 2006, the team worked with a

diverse group of Fortune 500 customers from

Automotive, CPG, Oil and Gas, and other

industries, to design and develop an intuitive

and easy to use P2P UI for their customers

running SAP. Built on top of SAP SRM, the UI

tool proved a boon to user adoption and

liquidity in the marketplace and was

showcased as a Best Practice at SAP’s annual

Sapphire event.

“Consumerizing” the P2P experience

The History of SBx – Gen I

Background: More than 3 years into an SAP

SRM roll-out, the company was still struggling

with low user adoption and was looking to

increase both usability and compliance

Benchmarks:

User Adoption < 50%

Spend Under Management <50%

Non-Compliant Orders – High

Incidence of re-work on 22K annual

cart volume due to missing

attachments/incorrect accounting

$4B Global Pharmaceutical Company

SBx Customer Case Study – Gen II

User Feedback: Pilot users indicate that the

“SBx tool will make it easier to do my job and

saves me time.”

Roll-out Goals: Ramp 100% of targeted users

by YE 2010; drive compliant spend above 75%

SBx Demo – Home Page

13Demo can be viewed using the following url:

http://www.simplifying-it.net/demos.html




SBx Demo – Shopping



Browse for items

Tool Tip

Search for items

Drag/drop items into your cart

Ratings, Reviews, and Policies




SBx Demo – Cross-catalog Search



Internally and supplier-hosted catalogs presented in a single UI




SBx Demo – Non-catalog Forms



Line item options easily accessibleCombining internal

goods and describe requirements on a single screen




SBx Demo – Automatic Catalog Search from Non-catalog Form



Catalog Form

Auto propose catalog items




SBx Demo – Item Compare w/Anchoring



Differences shown in red

Anchored Item




SBx Demo – Order Status Tracking






SBx Demo – Goods Receipt



Receipt Entry Form




SBx Demo – Approve



Can Approve or Reject. Comment required for Rejected items.

Ability to Submit many orders at once




Mark Kenney

214.552.4511

[email protected]

www.simplifying-it.net

simplifying it product overview

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