A Software Guy Explains How Software (Alone) Doesn't Work

Transcription

1 A Software Guy Explains How Software (Alone) Doesn't Work Ivalua Paul Noël SVP Procurement Solutions

2 A Software Guy Explains How Software (Alone) Doesn't Work Paul Noël SVP Procurement Solutions Ivalua

3 Ivalua The Broadest Spend Suite Vendor You've Never Heard Of - Spend Matters, 2010 Founded in 2000 in Paris in US Deployment Stats: 200 clients, 150K users, 500K suppliers, 70+ countries, 15 languages Profitable organic growth Gartner Leader in less than 3 years Exceptional user adoption 98% Client Retention (over 15+ years) Flexible Deployment (Cloud or Premise) Partner Friendly Integrated Suite Highly Configurable Industry-specific Quick time to value No Supplier Fees Simple Pricing

4 Agenda Brief Review of Procurement Issues Why Technology Driven Solutions fall short Other, Better, Ways to Drive a Solution What NOT to expect from technology Wrap Up and Q&A

5 Paul Noël Business Process Re-Engineering Consulting Clients in Hi Tech, Defense, CPG, Retail, Fin Serv. Outsourcing Specialist (both Buyer and Provider sides) Kanban and Kaizen program consulting Engineered to Order Procurement Operations Sourcing of Off-Shore Sub-Contract Manufacturing (Asia) Implemented MRP and Lean Supply for Hi-Tech Industry Supply Chain management for Complex Direct Materials 15 years experience building Spend Software 7 years at Ariba (can be blamed for their SaaS transformation) Spend Classification and Analysis pioneer Direct Materials spend management innovator

6 Baseball, Mom and Apple-Pie Spend under management Spend under contract Lead or heavily influence demand Pro-actively manage supply-chain risks Quick Poll: Would you say your Organization is below average on any of these measures? Benchmarks* 60% 30% <17% basic Solutions Employed: Centralized or Center-led Procurement Well Documented Policies and Procedures Procurement Tools 50% 60% >70% *Power of Procurement, KPMG Study, 2012

7 Technology Driven Solutions We will use technology, to drive organizational and process change. Technology can be the catalyst for change, but not the driver

8 The Driver will be YOU Two things to do before buying that car: 1. Examine your people and organization 2. Understand how things work today

9 Consider the People and Processes Involved Supplier Systems Account Sales/ Proposals Contract Order AR/ Finance Onboarding Performance & Risk Improvement Plans Exceptions Mgmt RFP RFI RFQ Auctions Discovery Contract Negotiations Catalogues Rate Cards Assets Order Delivery Change Orders Ship Notice Receipts Timesheets e-invoice Capture Invoice Reconciliation Dynamic Discounting Vendor Strategic Sourcing Contract Buyer Systems Procurement AP / Finance Category

10 Focus on the People and Organizations Supplier Systems Account Sales/ Proposals Contract Order AR/ Finance 1. Will Suppliers welcome Change? 2. Are they staffed with the right people? 1. Where are your strategic functions? Centralized, Center-led, COE or distributed? 1. Do you have defined roles or is everyone doing a bit of everything? 2. Who, on your team, is open to Change? 1. Is Procurement involved in transactional buying? 2. What is the relationship between AP and Procurement? 3. What is Procurement s contribution to corporate initiatives or the bottom line? Vendor Strategic Sourcing Contract Buyer Systems Procurement AP / Finance Category

11 Organizational Reactions to Change 1 This is how it works deal with it! 4 We all understand that we need to change Procurement is not worth investing in Suppliers and our own people will never go for this! 2 3 Quick Poll: Which Quadrant are you in Today?

12 Focus on the Processes 1. Do your suppliers have more advanced processes with your competitors or peers? 2. Document variations in level of collaboration/sophistication among your suppliers Onboarding Performance & Risk Improvement Plans Exceptions Mgmt RFP RFI RFQ Auctions Discovery Contract Negotiations Catalogues Rate Cards Assets Order Delivery Change Orders Ship Notice Receipts Timesheets e-invoice Capture Invoice Reconciliation Dynamic Discounting 1. Are the current processes documented as-is? 2. What are the differences by BU, Geography, type of spend, etc.

13 Process Mapping and Observation Close Observation, even participation, yields a deeper understanding and insights and the tribe will trust your conclusions and recommendations later

14 What not to expect from technology...ever Mind reading One size fits all Perfection forever One tool for everything Hands free The network effect (in B2B)

15 In Summary Know your people, the organization and your suppliers Know your processes before you look to change or automate them Keep your mind open for other ideas as you introduce technology to the mix Accept the inevitability of further change down the road Find partners to accompany you through the constructive chaos to come Q&A?

16 Paul Noël Ivalua, Inc. SVP Procurement Solutions

17 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Workshop (#8) Complete and submit!

18 Workshop # 8 A Software Guy Explains How Software (Alone) Doesn't Work Speaker: Paul Noël Ivalua pno@ivalua.com bit.ly/downloadameliaapp Tweet using: #SIGspring15

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