Business Networks - Come digitalizzare i processi · Lights out Procurement, Finance and Shared...

The Age of Digital BusinessCome fare digital transformation

Business Networks - Come digitalizzare i processi

11-12 Marzo 2016

Cernobbio - Villa d’Este

In collaborazione con Con il contributo di

Future Trends and

Disruptive Technologies

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3

The Digital Economy is Now and Growing Rapidly

…Demographics Have Shifted and… The World is Connected and Digital and …

… the connectedness of everything allows companies to interact in real-time with their customers,

products, employees, assets and partners in ways that they never did before, offering the opportunity

to expand and fully digitize their value chain.

1.5 billionPeople on business and social

networks today

Nielsen

50 billionconnected devices and the

Internet of Things by 2030

Cisco, Morgan Stanley

5 billionpeople worldwide will become

middle class by 2025

Brookings Institute

$65 trillionbusiness to business commerce

Bain, PWC, SAP

40%business networks growth over

next two years

Ardent Partners

90%of the world’s data generated in

last 2 year

ScienceDaily. ScienceDaily

75%of the global workforce will be

Millennials by 2030

Brookings Institute

$15 trillionbusiness to consumer commerce

SAP


Business Applications &

Networks in the

Digital Economy

SAP Business Network Group


Things have changed.


Digital

Transformation


Business has changed – but

not at the same pace.


Lights out Procurement, Finance and Shared Services

Accounts Payable / Procurement Operations:

Transactional, operational and administrative tasks

and activities will be more and more automated.

Invoice management will change from a paper based

invoice handling process with manual data entry on

two screens to a networked automated invoice

solution without manual process steps.

Automated Ordering Product Creation

Sourcing: The role of a buyer will change

significantly as Procurement transitions from

Goods to Services. Buyers will be asked to provide

solutions to the business and implement new

(supplier) innovations that align with strategic

objectives and deliver business value.

Warehouses 3D Printing

Manual paper based process Fully automated on Ariba Network

Steps towards ‘Lights out Finance’, ‘Lights out Procurement’, instead of Shared Services

Today’s State

75Internally Digitized

100End-to-End

DigitalEnterprise

0Paper

and Pen

25Basic Digital

Records

50Ad hoc

Digitization

Desired State


13%More

Revenue

50%More

Profitable

19%Higher Market

Valuation

MIT Sloan Management Review and Deloitte’s 2015 Global Study of Digital Business

Organizations that rank high on digital maturity


Innovations with

Business Networks

Source-to-Pay from Strategic Sourcing,

Procurement, Services, Account Payables

and Travel to Payment


The Business

Network Group


We simplify business

commerce for buyers and

sellers, connecting them to

the world’s largest business

network.

Buy. Sell. Settle


Grow connections that matter

Discover new trading partners

Source or spot-buy goods

and services

Pay; capture discounts

and savings

Discover. Connect.

Collaborate.

BUYERS SELLERS

Find buyers ready to buy

Grow and accelerate sales

Predict and apply cash


Innovations Impacting the Procurement Function

Networks &

MarketplacesIndustry 4.0

Internet of Things

Digital

Business

To

da

y B2C

Business Value of

Procurement

Tasks are

operative,

tactical and

strategic

Key KPI:

Savings

Paper based

POs / Goods

Receipt and

Invoices

Scanning

Sequential

Processing of

purchase

requisitions and

POs

To

mo

rro

w

B2B

connected

commerce

Business value –

‘Value Creation

Officer’

Supplier

innovations

Supplier Risk &

Performance

3 D

PrintingWarehouse

ordering

automation

Lights out shared

services with end-to-

end automation

Spot buy integration

in catalogs


Procure services from anywhere in the world in two simple clicks.

Efficiency

Compliance

Cost

Visibility

Quality


Destination

IST - Istanbul

Estimated Total Cost

$18,000

Part Availability

Delivered in 6 hours

Supplier

SentinelRating

Cost

$13,000

Technician

Sourced from 3rd party

Name

R.S.RRating

Time on Site

4 Hours

Travel

Availability Confirmed

Rental Car

SIXTModel

Cost

Corporate Rate

Economy

Travel

Availability Confirmed

Hotel Reservation

Hilton - Istanbul

Nights

Cost

81 Euros / Night

1 Night


Services mash-up


Awards Decorated


SAP runs Ariba


Evolution of Procurement at SAP

Today

Operational Strategic Partner

Regional

Purchasing

SRM 5.0 SRM 7.02 Cloud

Change

Management

Tactical

Procurement

Operations

People

Development

Business Partner

Leadership

Global

Categories

Processes & SystemsE2E P2P & Cloud Systems,

Networks, Mobile

OrganizationGlobalization Category

Managements

PeopleDevelopment & Change

Management

The Transformation Journey towards Run Simple and Business Value Enabler Role


Process & Systems Overview: Hybrid Model

To-PayAccounts Payable and

Travel & Expenses

Source-to-PurchaseStrategic and Tactical Procurement

Purchase-Operational

Procurement

Organization & PeopleGlobalization Category Managements

Spend

Visibility

Supplier

Management

eSourcing /

eAuctioning

Fieldglass – Services Purchasing(Contingent Labor and SOW POs)

Contract

Management

Ariba Purchase Order & Invoice Automation

for Goods and Services

Discount Pro

Ariba Catalog Spot Buy ebay

Concur - Travel Request and Booking

(Portal)Travel Reimbursement

SAP SRM &

SAP ERP on HANAVendor Invoice Management

Savings

Costs

Compliance

Risk Management

Sustainability

Source-to-Pay Process and Systems: On-Premise and Cloud-Based Solutions for Upstream and

Downstream Processes

26© 2016 SAP SE or an SAP affiliate company. All rights reserved.© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26

3-Clicks to Order

Workflows & Details

User Comments

Attachments to Supplier

Full History

Mobile Approval

1 click to approve/deny

Apple & Android Apps

Common Actions

Catalog Ordering

Spot Buy

Ariba Mobile Procurement


Achievements

Streamline Entire Source-to-Pay Process Achievements: Facts & Figures

3 MonthsImplementation Time

>5,000Suppliers on ARIBA

Network

>400,000Documents transmitted

50%Increase in Automation

20%Productivity gain

10.6 FTEs by migration

25 FTEs by automation

>1.5bnPurchase Order

value sourced

Leverage economies of scale and control through shared

services

Cut costs through automated data extraction and process

automation

Create workforce efficiency through streamlined processes

including mobile approvals

Reduce errors at the source

Improve working capital management through better visibility

to cash requirements

Optimize cash discount utilization including dynamic

discounting

Source-to-Pay Automation, Business Networks and Shared Services


Key Takeaways on Transforming Procurement

Transform Organization to fit future needs

Develop people and manage change

Implement end-to-end processes and cloud

systems to automate transactional processes

Leverage the power of

social, supplier, and business networks

to get innovations and to deliver solutions

to the lines of businesses

Transform

to Run Simple

Get Linked

to Stay Relevant


Thank you

Dr. Marcell Vollmer

SVP and Chief Operating Officer

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Internal

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

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