A New Digitally Driven, Strategically Focused Procurement ... · A colony on Mars: $6 billion . 3 ....

Procurement’s Next Frontier A New Digitally Driven, Strategically Focused Procurement Organization Giovanni Giacchetti Accenture Strategy Sourcing & Procurement Lead Italy

SAP Forum 2015 | Milano, 29 ottobre

Copyright © 2015 Accenture All rights reserved. 2

10 Things that are cheaper than Whatsapp

Channel tunnel: $7.44 billion 1 A colony on Mars: $6 billion 2 Large Hadron Collider: $11 billion 3 London 2012 Olympics: $14.6 billion 4 Cost of providing safe, clean water to entire globe: $10 billion/year 5 Cost of Hurricane Sandy: $8.3 billion 6 World’s tallest building (Burj Kahalifa): $1.5 billion 7 Entire world music industry: $16.8 billion 8 Hubble space telescope: $10 billion 9 And finally… Jamaica: $14.84 billion!! 10


A sobering fact


Digital Business results in new challenges and new roles for Corporate Leaders

Competitor can reduce their operating costs by 10 – 15% through digitalized operations

New competitors are emerging from previously unrelated industries

The skills required by leaders and organizations to compete are different

CEO • What should I do about digital disruptions in my industry?

• How does digital help me grow the business, enter new markets or strengthen the position?

• How does it threaten my value chain ecosystem of customers, suppliers, business partners?

CPO • What is the new CPO mandate in a Digital Business ?

• How will Digital change the Procurement organization ?

• How will supply markets change through Digital ?

• What historic challenges will disappear through Digital ?

• What needs to be done to be ready for Digital ?

COO / CIO / CFO / CMO /…


From the traditional Procurement operating model…

Business Users Strategic Procurement

(Front Office)

Tactical Procurement (Middle Office)

Transactional Procurement (Back Office)

Internal Stakeholders

Other Buying Companies

Strategic Suppliers

Non-Strategic Suppliers Logistic

Providers

Innovators

X-functional Teams

INTERNAL

EXTERNAL

!


…to Procurement operating model of the future

Business Users


Other Buying Companies

Strategic Suppliers

Non-Strategic Suppliers

Logistic Providers

Innovators

X-functional Teams

INTERNAL

EXTERNAL

!


Many digital capabilities exist already, while some still need to evolve in the market

Traditional

Category Room

Supplier Room

Supplier Network

Company Mall

Supply Analytics

DIGITAL

DIGITIZED

e-ENABLED Online Catalogues

Reporting Solution

Spend Reporting

Analytics Solution

Procurement Dashboard

e-Procurement

Procurement Portal

e-Buying Channels

Self Service Spot Buy Tools

e-Marketplaces

Single Purchasing Interface (Mall)

Fully embedded content (internal / external) Agent

technology

Spend Analytics

Analytics Repository

Analytics Service Function

EDI Supplier Portal

E-Invoicing solution

Transactional Network

Supplier Discovery

Open Innovation network

Supplier Collaboration Platform

Supplier Collaboration Network (powered by social media)

Supplier access to relevant systems

Knowledge Exchange (powered by SharePoint)

Category Management Portal

Category Management Platform (powered by social media) Buying Networks

(powered by social media)

Already available On market roadmap


A Supplier Network connects… companies seamlessly with the supply market

Tendering e-Sourcing Auctioning Spot Buying

Performance Assessment

X-company supplier performance feedback

Supplier interaction

Purchase Order and Invoice exchange

Supplier Discovery

Directory with ready to use data

Digital operating model component Human

Supplier Portal Supplier Service

Supplier Room Integration Company Mall integration

Supplier Connector

Category Room Integration

Supplier Mgmt. as a

Service

Supplier Onboarding as a Service

Powered By

eTendering

Supplier Repository

Transaction engine Performance


Supply Analytics transforms … reporting into guided decision making

“Do it yourself” Analytics Easy to use Self Service

KPI dashboard Pre-defined repository of levers required to steer procurement

Scenarios predictions

Forecasting & “What if” analysis

Opportunity advisor

Recommendations (rules & self learning)

Digital operating model component Human

Powered By

Use case repository

Value Engineering

Use Case development

Data Mart

Dashboard

KPI repository

Data Collector

Self Service analysis

Text Mining

Rules engine

Process Analytics Predictive Analytics

Scenario Modelling


A Real Case: Procurement as Ecosystem Orchestrator in a digitally enabled environment

2

4

3

1

Compliance Analytics to monitor effectiveness of Procurement results

Global P2P Platform to channel effectively demand from Internal Stakeholders Embedded

resources in Functions


3rd party for non core categories

Spot Buy Desk

MRO Consolidator

Logistic Control Tower

Global Procurement

Team

2 1

3 4

$

$

Collaboration Platform to improve internal visibility on Value Generation activities

Supply Network to leverage segmentation and focus on Strategic Suppliers

Powered by:

11

Thank you!

A New Digitally Driven, Strategically Focused Procurement ... · A colony on Mars: $6 billion . 3 ....

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