Reimagine Business for the Digital Economy How the Digital ... · 26/07/2016 · How the Digital...
Transcript of Reimagine Business for the Digital Economy How the Digital ... · 26/07/2016 · How the Digital...
Reimagine Business for the Digital Economy
How the Digital Economy will change Procurement,
Finance and Shared Services
Dr. Marcell Vollmer, COO SAP Ariba
SAP Forum Hong Kong
How the Digital Economy will change Procurement, Finance and Shared Services
…and how SAP Ariba will provide an answer to the transformation needs
Dr. Marcell Vollmer
SVP and Chief Operating Officer July 26, 2016
Agenda
• Disruptive Trends in Technology
• Trends for Procurement & Source-to-Pay
• SAP Digital Core and Innovations
• SAP runs Cloud
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Today, four trends are dramatically reshaping the economy
Cloud Computing
Technology infrastructure is now rented to
eliminate barriers to entry. Project timelines
are dramatically shortened, and customer
relationships are becoming increasingly direct.
Big Data
The limits of 20th century computing power are gone.
Networking and in-memory computing allow for the
creation of new business opportunities previously
unimaginable.
Industry 4.0
Sensors, robotics, 3D printing, and artificial
intelligence are the new normal, driving an
outcome-based economy.
Hyper-connectivity
Every supplier, consumer and machine is
connected, disrupting established business
channels, processes, and relationships.
Networks
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Mega Trends and Innovations Impacting the
Procurement Function of the Future
Industry 4.0
Internet of Things
Digital
Business
To
da
y
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
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
Networks &
Marketplaces
B2C
B2B
connected
commerce
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Procurement of the Future and Impact of Mega Trends
Digitalization will change Procurement Organization, Processes,
Systems and require new skills for Buyers
Study Fraunhofer Institue and BME from 2016
Digitalization
In Procurement
1Business Value
5Digital
Sourcing
2Organization
4Big Data
3Supplier
Collaboration
6Networks &
Marketplaces
x
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TRAVELConcur
LABORSAP Fieldglass
SUPPLYCHAINSAP Ariba
HEALTHCARE
BUSINESS
FINANCIAL SERVICES
SAP’s Networks for Business simplify business collaboration
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SAP Ariba in the SAP Context
Open platform, Integration to SAP and Non SAP SolutionsB
UY
ER
SS
EL
LE
RS
Fulfill SettleSell
SP
EN
D C
AT
EG
OR
IES
Customer Management
Direct and Supply Chain
Indirect and MRO
Labor and Services
Travel
Procure SettleSource
Supplier Management
Network
Digital Core
Customer
Workforce
Assets
Enablement
& Internetof Things
ExperienceOmnichannel
SupplierCollaboration
Business Networks
SAP S/4HANA Platform
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Source-to-Pay Application Suite Roadmap
Discover Connect Collaborate
Ariba Network
BUY SELL
MANAGECASH
Direct Material
Sourcing
Supplier Risk
Management
Supplier
Management 2.0
Total User
Experience
Spot Buy Seller
Direct
Guided Buying
External Data
Providers Open
API
Glo
baliz
ation A
naly
tics
IntegrationPlatform
Invoice Pro
2.0
Demand
Aggregation
Total Landed
Cost
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One place to buy goods and services
Smart guidance to direct users to the right items, preferred suppliers, and the compliant policies
Configurable policies to guide users to the right business process
Preferred supplier list integrated into the buying experience
User feedback on suppliers and items integrated into the buying process
Recommendation engine to achieve 3-bids and a buy based on business policies
In-context collaboration between users, procurement experts, and suppliers
Empowerment of spend owners/departments to manage their policies, suppliers and drive compliance
Same user experience on all devices
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Key 2016 innovation: Guided Buying
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Key 2016 innovation
Direct Material Sourcing and Contracts
Supporting multi-level BOM’s, Product costing, Japanese Auctions
Advanced optimization options, Enhanced Material master and ERP integration, 360° Material/Part and Category Report, Pricing Conditions – Volume/Time Breaks, What-if Analysis,
Simplified Quoting Interface for Suppliers
Predictive Maintenance and Scan to Order
Automated ordering by IoT sensors indicating maintenance services
One click ordering by any device capable capturing pictures
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Guided Invoicing
new UI, with guidance for exceptions and resolution handling
persona-specific flows (for tax manager, accounting and mass edit of invoices
Enhanced queue management
Demand Aggregation
With Ariba Sourcing integration
Service PO’s with SAP ERP integration
Real-time budget checks and reservations directly in SAP ERP
Advanced Analytics
Graphical online reports for in-depth analysis of key metrics & KPIs, to identify patterns, bottlenecks & trends over longer periods of time
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Key 2016 innovation: Invoicing and Procure to Pay/Order
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Supplier risk management challenges
Large number of suppliers
Out-of-date and duplicate vendor data
Fragmented vendor risk processes across organization
Multiple data sources for supplier risk data
Manual process for risk identification and assessment
No active monitoring of suppliers
Risk scores calculated manually for a handful of suppliers
Vision for handling supplier risk
Deliver a scalable solution that can help manage risk across supplier base:
Supplier self-service portal for managing parts of vendor information
Cloud solution tightly integrated with ERP vendor master
Extensible 360-degree supplier profile, with up-to-date risk insights
Monitoring risk on all suppliers automatically based on usage and external data
Supplier engagement based on shared accountability for risk
Policy and risk exposure-based risk assessment triggers
Key 2016 innovation: Supplier Risk Management
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Key 2016 innovation: Mobile Supplier App
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Today’s State
75Internally Digitized
100End-to-End
DigitalEnterprise
0Paper
and Pen
25Basic Digital
Records
50Ad hoc
Digitization
Desired State
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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
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SAP’s Procurement Function 2004 – 2011
SAP SRM 5.0 (with SRM Catalog) and SAP ERP 4.7Vendor Invoice Management
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Evolution and Transformation of SAP’s Procurement Function 2012 - 2015
SAP SRM 7.02 integrated (only workflows in use) into SAP ERP on HANAVendor Invoice Management
2011 Upgrade SRM 7.02
2011 Global Categories and
Procurement SSC
2013 SAP Ariba
2014 SAP Fieldglass
2015 Concur
Global Categories for all Spend (approx. 4bn in 2015)
Spend Visibility | eSourcing & eAuctions | Contract Management
Supplier Management | Ariba Catalog & Spot Buy 2014ebay
Ariba Purchase Order & Invoice Automation | Discount Pro
Travel booking and reimbursement
Temp labor and SOW sourcing
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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
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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