XCHANGING INVESTOR SEMINAR · PDF file · 2014-11-28XCHANGING INVESTOR SEMINAR 27...

XCHANGING

INVESTOR SEMINAR 27 November 2014

© 2014 Xchanging plc

AGENDA

2

15:00 Arrival and Refreshments

15:20 Welcome Alexandra Hockenhull

15:25 Overview: Strategy and the Investment Proposition Ken Lever

15:45 Procurement and Q&A Chirag Shah

16:25 Application Services and Q&A Alok Sinha

17:05 Concluding comments Ken Lever

17:15 Q&A

17:30 Formal close

17.30 Refreshments & Demo Room Showpiece

WELCOME

Ken Lever Chief Executive


STRATEGIC CONTEXT

Technology Procurement

BPS

Technology Innovation

Insight Differentiation

Focused offerings to chosen markets

4


TECHNOLOGY ENABLEMENT

Technology-enabled

BPS Technology Procurement Customer

platform

Third party IP or Xchanging IP

Customer Customer

Xchanging IP

“Big T” “Little t”

Technology

5


SPEAKERS

6

Chirag Shah

Executive Director,

Procurement

Alok Sinha

President,

Application Services

OUR NEXT

GENERATION

PROCUREMENT

BUSINESS

Chirag Shah Executive Director, Procurement


SETTING THE SCENE

8


BPS





OVERVIEW

Strong position in market

‘Old’ and ‘New’ Procurement

Four focused offerings

Clear growth strategy built around technology

9


XCHANGING RECOGNISED AS A “STAR PERFORMER”

10

Source: Everest Group, Procurement Outsourcing (PO) – Service Provider Landscape with PEAK Matrix, https://research.everestgrp.com/Product/EGR-2014-1-R-1215/Procurement-Outsourcing-PO-Service-Provider-Landscape-with-PEA

https://research.everestgrp.com/Product/EGR-2014-1-R-1215/Procurement-Outsourcing-PO-Service-Provider-Landscape-with-PEA
























OUR FOUR PROCUREMENT OFFERINGS

11

2.PROCUREMENT

AS A SERVICE (PAAS)

3. PROCUREMENT OUTSOURCING (PO)

1. MM4 - SOFTWARE AS A SERVICE(SAAS)

4. TAIL-END SPEND

MANAGEMENT (TSM)

SaaS (as above) + on-premise services available ‘On Demand’

Flexible menu of people, technology and expertise as a managed service

Traditional procurement services now built

around MM4 technology

Cloud-based technology available by subscription, hosted by Xchanging

Online MarketMaking support

Technology-led service designed to address ‘high-hanging fruit’

Addresses spend activities not usually in scope within traditional PO or SaaS activity

OFFERING REVENUE MODEL

Subscription with ‘On

Demand’ services

Fee + gainshare

Subscription model

Transaction charge +

performance incentive


PROCUREMENT OUTSOURCING (PO) PROCUREMENT AS A

SERVICE (PAAS)

PROCUREMENT

OUTSOURCING (PO)

MM4 - SOFTWARE AS

A SERVICE (SAAS)

TAIL-END SPEND

MANAGEMENT (TSM)

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

PO offering

now

technology-

enabled

12

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

TAIL ANALYTICS

QUICK QUOTE

BENCHMARKING

CATEGORY CARDS

SAVINGS TRACKER

TRIAGE & TACTICAL

BUYING

REQUISITIONING SYSTEM

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

AGGREGATION

SUPPLIER PORTFOLIO

MANAGEMENT

KEY MM4 TECHNOLOGY

XCHANGING PROCUREMENT SERVICES

CUSTOMER RESOURCES


MM4 – SOFTWARE AS A SERVICE (SAAS) PROCUREMENT AS A

SERVICE (PAAS)

PROCUREMENT

OUTSOURCING (PO)

MM4 - SOFTWARE AS

A SERVICE (SAAS)

TAIL-END SPEND

MANAGEMENT (TSM)

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

MM4 and

Xchanging

technology

now single

platform and

configured

for SaaS

market

13

TAIL ANALYTICS

QUICK QUOTE

BENCHMARKING

CATEGORY CARDS

SAVINGS TRACKER

TRIAGE & TACTICAL

BUYING


SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

AGGREGATION

SUPPLIER PORTFOLIO

MANAGEMENT

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

KEY MM4 TECHNOLOGY


CUSTOMER RESOURCES


PROCUREMENT AS A SERVICE (PAAS) PROCUREMENT AS A

SERVICE (PAAS)

PROCUREMENT

OUTSOURCING (PO)

MM4 - SOFTWARE AS

A SERVICE (SAAS)

TAIL-END SPEND

MANAGEMENT (TSM)

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

SaaS + On

Demand

Services =

PaaS

Differentiates

Xchanging

14

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

TAIL ANALYTICS

QUICK QUOTE

BENCHMARKING

CATEGORY CARDS

SAVINGS TRACKER

TRIAGE & TACTICAL

BUYING


SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

AGGREGATION

SUPPLIER PORTFOLIO

MANAGEMENT

KEY MM4 TECHNOLOGY


CUSTOMER RESOURCES


TAIL-END SPEND MANAGEMENT (TSM) PROCUREMENT AS A

SERVICE (PAAS)

PROCUREMENT

OUTSOURCING (PO)

MM4 - SOFTWARE AS

A SERVICE (SAAS)

TAIL-END SPEND

MANAGEMENT (TSM)

TAIL ANALYTICS

QUICK QUOTE

BENCHMARKING

CATEGORY CARDS

SAVINGS TRACKER

TRIAGE & TACTICAL

BUYING


SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

AGGREGATION

SUPPLIER PORTFOLIO

MANAGEMENT

New growth

market,

technology-

led

15

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

SPEND ANALYTICS

E-SOURCING TOOLS

CATEGORY AND MARKET

INSIGHTS

CONTRACT

MANAGEMENT

SAVINGS TRACKER

SOURCING STRATEGY &

EXECUTION

MARKETMAKING™

SUBJECT MATTER

EXPERTISE

REPORTING &

COMPLIANCE

CATEGORY & CONTRACT

MANAGEMENT

RELATIONSHIP

MANAGEMENT

KEY MM4 TECHNOLOGY


CUSTOMER RESOURCES


TAIL-END SPEND MANAGEMENT

16

Traditional spend managed covers only c.80% of an

organisation’s spend

Source:“Betting on tail spend to save coins” Everest Group 2014

TOTA

L SPEN

D (

BY

SU

PPLI

ER

)

TOTAL NUMBER OF SUPPLIERS


MARKET OPPORTUNITY AND COMPETITIVE POSITION

17

MARKET

OPPORTUNITY

All companies have tail-end spend

Companies often ill equipped to manage ‘the tail’ in-house

An area of ‘high-hanging fruit’ now being addressed by Chief Procurement Officers (CPOs)

Market not currently well addressed by procurement vendors

Savings to customers can be c.15-20% of spend under management* – higher than traditional PO

*Source:“Betting on tail spend to save coins” Everest Group 2014

COMPETITIVE POSITION

Requires: Strong technology capability Scale efficiencies Sourcing track record

Credible supplier relationships

Difficult for many competitors to emulate

Requires a degree of customer intimacy – incompatible with offshore/nearshore back office hubs

Xchanging’s IP, MM4 technology platform and flexible services model

places it in a premium position to exploit market


MM4 (SAAS) LED GO-TO-MARKET STRATEGY

18

Cost to acquire customer

Pro

pe

nsi

ty f

or

co

mp

etitiv

e t

en

de

r

Size denotes profit

per customer

SaaS

PaaS

TSM

Key:

SaaS – Software as a Service

PaaS – Procurement as a Service

TSM – Tail-end Spend Management

PO – Procurement Outsourcing

PO

TSM

(XCH)

PO

(XCH)

Route to market reduces likelihood of competitive tender for

Tail-end Spend Management and Procurement Outsourcing


ANALYTICS

19

Xchanging’s data and analytics capabilities put to use in

procurement

Supply risk

management

Responsible

procurement

Transparency and

benchmarking

Complexity

management


SUMMARY

20

An engine for growth

MM4 has enabled Procurement to become both:

a) Technology-enabled (little ‘t’)

b) A technology offering in its own right (Big ‘T’)

A differentiated Procurement offering

Significant new opportunity in Tail-end Spend Management

Strategy for growth:

a) Build technology capability further

b) Establish global footprint with differentiated operating model

c) In particular, establish position in significant US market

APPLICATION

SERVICES Alok Sinha President, Application Services


OVERVIEW

What we do: scalable, repeatable technology offerings based on IP

Who we sell to: global leaders

Why customers choose Xchanging:

Industry and customer insight

Flexibility

23


SETTING THE SCENE


BPS




24


OUR TECHNOLOGY BUSINESS

Xuber:

Insurance

Software

Application

Services

Technology

25


In

cre

asi

ng

cu

sto

me

r v

alu

e

2012 2014 2016

Cost

Arbitrage

Operational

Efficiency

Business

Outcome

VALUE PROPOSITION FOR CUSTOMERS

Operational Partner Transformation Partner

26


THREE CAPABILITIES ACROSS THREE OFFERINGS

27

OFFERINGS CAPABILITIES

Development Testing Support


THREE CAPABILITIES ACROSS THREE OFFERINGS

Revenue model: Annuity and Project based

BESPOKE

ENTERPRISE

PLATFORM/

PRODUCTS

Customised solutions for specific business

needs

Off the shelf solutions configured for the

particular enterprise

28

In-house developed platforms/products

and outsourced product development


Development Testing Support


WHERE GROWTH COMES FROM

Logistics Product Lifecycle

Management

Packaged Apps

Xuber Post

Implementation

Support

Learning

Platforms (LP)

Internet of Things (IoT)

Building 360,

Vehicle 360,

Supply Chain 360

Digital 360

Outsourced Product Development (OPD)

Xchanging

Messaging

Middleware (XMM)

Key:

Embryonic

Emerging

Growth

Core

29

Mobility Business Intelligence/

Analytics Engineering Services

Custom Apps & Integration

BESPOKE

ENTERPRISE

PLATFORM/

PRODUCTS


Testing Support Development


STRONG DOMAIN EXPERTISE

Insurance Manufacturing

Real Estate

Independent

Software Vendors

Energy

Banking and

Financial Services

Logistics

30

We work with world

No. 1’s:

No.1 Third Party

Logistics Global Service

Provider

No.1 Commercial Real

Estate Services Firm

No.1 PC Maker

No.1 Mobile Money

Solutions Provider


Insight in chosen industries

Referenced by customers and

independent software vendors

WHY CUSTOMERS CHOOSE XCHANGING

Cultural fit

Nimble and flexible

31

Xchanging provides

technology, innovation

and insight to create

differentiated solutions

that deliver value to our

customers

Tech Proc

BPS

Differentiation Insight



Insight

15+ years of Supply Chain and Logistics domain

expertise

Partnership with Oracle

Value to

customer

Zero Down Time

Consistent Y-o-Y cost reduction

Reduction in upgrade and new customer

onboarding time

Best in class processes

WORLD’S NO. 1 THIRD PARTY LOGISTICS PROVIDER

Technology

Oracle Transport Management System

Implementation

Upgrade

Support

Innovation

Designed Availability Management System

Using Incident Management Analytics

Oracle Transport Management Upgrade toolkit

<24hrs to migrate upgrades

Test Automation

Significantly reduces testing time

32


Insight

15+ years of relationship with strong knowledge of

insurance and customers’ business

Value to

customer

Ranked number 1 of 12 suppliers

Y-o-Y cost reduction

High availability and compliance with stringent

service level requirements

GLOBAL INSURANCE COMPANY

Technology

Bespoke, Mainframes and Reporting tools

Development and testing

Xuber

Support

Innovation

Operational efficiency systems

Predictive Incident Analytics

Test Automation

Significantly reducing testing time

33


TECHNOLOGY ENABLEMENT

Technology enabled

BPS Technology Procurement Customer

platform

Third party IP or Xchanging IP

Customer Customer

Xchanging IP

“Big T” “Little t”

Technology

Example 1: MM4 Spend

Tracker

(Xchanging IP)

Example 2: Digital 360

(Xchanging IP)

34


Technology and

domain strength

Fed from premier

institutes and

organisations

Mini CEO programme

Certifications

Development of tools

and accelerators (IP)

Partnerships

CAPABILITIES

Operational excellence Talent Global Reach

1,500+ employees

across:

UK (30+)

US (70+)

India (1300+)

Singapore (100+)

Malaysia (40+)

Technology hub in

Kuala Lumpur

35


STRATEGY

Grow existing accounts

Win new customers

Partner strategy

36

Leverage expertise to expand in our chosen markets


Maturing technology capabilities

Creation of IP enables development of technology offerings that are scalable and repeatable

Technology know-how that creates both “Big T” and

“little t” benefits for other Xchanging businesses

SUMMARY

An engine for growth

37

CONCLUDING

COMMENTS Ken Lever Chief Executive


Ken joined Xchanging in 2010 as the Chief Financial Officer

and became the Chief Executive in 2011.

Ken was a partner at Arthur Andersen until 1987 and has since

served as a public listed company director, initially as Group

Managing Director with Corton Beach plc. He was then

Finance Director of Alfred McAlpine plc, the international

construction services group, Albright & Wilson, the global

chemicals group, and spent eight years with Tomkins plc, the

global engineering and manufacturing group. Ken then

moved into the role of Chief Financial Officer of Numonyx BV,

based in Switzerland.

Ken is a non-executive Director of FM International, Catesby

Property and DAC Beachcroft.

41

KEN LEVER

Chief Executive


Chirag joined Xchanging in 2013 following the acquisition of MM4 where he was previously Co-Founder and Chairman.

After graduating from the University of Cambridge with a degree in engineering, Chirag became one of the founding players in the eProcurement movement, building pioneering organisations.

He has held senior positions in industry, consultancy and the technology field in companies including Rover Group, GE and A.T.Kearney Management Consultants.

Chirag has extensive experience in running businesses in the USA, UK, China and Continental Europe and has received an accreditation from the “Best Companies to Work For” Award in association with The Sunday Times.

42

CHIRAG SHAH

Executive Director, Procurement


Alok joined Xchanging in 2011 and is responsible for the

Application Services business.

He joined from Symphony Services where he was

responsible for establishing the Professional Service &

Support, and later Outsourced Product Development

operations for the company’s Engineering Services

business.

Prior to this, from 2002 – 2005, Alok worked at Scandent

Solutions Limited where he was Executive Vice President,

Enterprise Applications. In addition to Reliance and ILFS,

he has also worked for TATA Group in the roles of

Executive Officer and Strategic Information Officer to the

Executive Director of TATA Motors.

43

ALOK SINHA

President, Application Services

XCHANGING INVESTOR SEMINAR · PDF file · 2014-11-28XCHANGING INVESTOR SEMINAR 27...

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