A Rock Star Approach:

Transcription

1 A Rock Star Approach: Establishing a Global Financial System for Procurement Alignment Determine David Cravens VP-Client Success Constantine Limberakis VP-Product Marketing sig.org/summit

2 A Rock Star Approach: Establishing a Global Financial System for Procurement Alignment CONFIDENTIAL 2017 Determine. All rights reserved

3 What you will learn from this session: How to manage complexity based on global requirements Best practices for aligning global procurement needs Benefits of standardization of systems and processes How global organizations are positioning this strategy for the future CONFIDENTIAL 2017 Determine. All rights reserved 3

4 DETERMINE: Presenters for this Session David Cravens VP-Client Success Determine, Inc. Constantine Limberakis VP-Product Marketing Determine, Inc. CONFIDENTIAL 2017 Determine. All rights reserved 4

5 ABOUT DETERMINE CONFIDENTIAL 2017 Determine. All rights reserved 5

6 DETERMINE: A few facts and figures A global company (NASDAQ: DTRM) 300+ clients all over the world Recognized by analysts Tens of thousands of enterprise users Rich partner network Focused on Contract Management & Source to Pay Recognized SaaS/Cloud provider Interconnected & modular integration CONFIDENTIAL 2017 Determine. All rights reserved 6

7 DETERMINE: An international company Determine listed on NASDAQ: DTRM $26M USD turnover ~200 employees around the world Offices in 6 countries; HQ - Carmel, Indiana CONFIDENTIAL 2017 Determine. All rights reserved 7

8 ADDRESSING THE CHALLENGE CONFIDENTIAL 2017 Determine. All rights reserved 8

9 Challenges of a Global Roll-Out EMEA APAC Legal Jurisdictions Contract Types Invoicing & Tax Requirements Employee Access Company Subsidiaries Suppliers / Other Counterparties Existing / Upgraded Technology CONFIDENTIAL 2017 Determine. All rights reserved 9

10 Factors impacting how to deploy CLM or S2P TAX/INVOICE DIFFERENCES FUTURE IMPACT OF BREXIT INTL. DATA PRIVACY & PROTECTION CURRENCY & MARKET VOLATILITY CHANGE IN ADMINISTRATION, POLICY & REGULATIONS 10 CONFIDENTIAL 2017 Determine. All rights reserved 10

11 What is the scope of the project? Deciding on where to start and scope Upstream (Sourcing) or Downstream (Procure to Pay) only? Does it include elements of Contract Management, or Supplier Management? Is it in conjunction with an ERP/Financial or other platform roll-out? What is the main driver for the global roll-out in the first place? CONFIDENTIAL 2017 Determine. All rights reserved 11

12 POLL QUESTION How many global Procurement systems do you have? How many global Financial systems? How many CLM solutions? Is it one? Is it two? Is it three? More? CONFIDENTIAL 2017 Determine. All rights reserved 12

13 GLOBAL DEPLOYMENT CHALLENGE #1: A GLOBAL ENTERTAINMENT COMPANY CONFIDENTIAL 2017 Determine. All rights reserved 13

14 Global Entertainment Company Global entertainment group ($5 billion USD), is one of the world s largest recorded music companies. With locations in nearly four dozen countries, the challenge was significant for creating alignment. The purchasing processes were very disparate from one country to another and global user adoption was a concern. In synchronization with Global SAP, Client rolled-out the Determine procurement solution to more than 20 countries in Europe, North America, and Latin America. Deploying globally required: Ability to address the specific needs of the business Strong budget control in an international environment Capability to natively integrate with SAP Ease of use and ensure a strong user adoption across the globe Meeting all international requirements CONFIDENTIAL 2017 Determine. All rights reserved 14

15 Global Entertainment - Architecture Example Client initially implemented SAP as a core Large Company finance System beginning 15 years ago taking a federated approach. While it still meets our financial accounting requirements, there are significant opportunities in harmonizing the environment. The federated implementation approach resulted in country specific configurations with significant differences SAP Company Code US Can EU Digital ~50 CoA (G/L) 8, Cost Center UK 6,337 GSA 4,522 France 1,669 Spain 1,295 Portugal 739 ~100 1, ,552 ~50 Finance System SAP Navision 5.1 Navision 3.7 Navision Local JDE FORMULA Local/Other No SME This situation results in unnecessary support cost and a more complex financial environment CONFIDENTIAL 2017 Determine. All rights reserved 15

16 Challenges & Planned Benefits Challenges: Managing cost control / difficulty in getting global project P&L Standardizing on Purchasing solution for Global SAP Roll-out Managing 95% services with inconsistent and manual processes Needed control on budgets across the board Local reporting formats despite global scope of need Steady decline in revenue in the industry Planned Benefits: One global purchasing solution for 5 Continents Streamline invoices through a global shared service center Improve supplier relationships Real-time visibility on the business through budgets Added flexibility to their SAP System / one global version of truth IT Operating Cost Savings of $1.2M/yr for IT Support, Data Hosting and elimination of ancillary non SAP systems approx 20% CONFIDENTIAL 2017 Determine. All rights reserved 16

17 End Result GRAS Project & Product Intuitiv (Images) T&E RMS/GRPS elink Streamworks (Cross System Scheduling) EROS SAP BPC Physical (ODS/CDS/JBA) BW/IP Global Clearing (Cars, etc) Payroll Cash (Autobank/SEPA) Digital Samis CONFIDENTIAL 2017 Determine. All rights reserved 17

18 What was required for aligning success? In order to achieve the benefits, the project required the following business process changes: Alignment on SAP Organizational structures Agreement on Product Master, Vendor, Customer and other key Financial metadata Common Chart of Accounts Common P&L Methodology including Detail vs. Summary data Alignment on Global, Harmonized and Local Business Processes in SAP Alignment on Marketing and Recording Budgeting Processes Alignment on Procure to Pay processes and policies Alignment required strong leadership from the finance organizations to support the corporate global initiative CONFIDENTIAL 2017 Determine. All rights reserved 18

19 GLOBAL DEPLOYMENT CHALLENGE #2: A GLOBAL MANUFACTURING COMPANY CONFIDENTIAL 2017 Determine. All rights reserved 19

20 Global Manufacturing Company Tier 1 Automotive Manufacturer (12.7 billion Euros ) and its Affiliates are a major actor in the designing, manufacturing and selling of equipment, embedded systems and modules for clients in the automotive industry. Employs 78K workers on 120+ production sites. As part of this project, the client decided the implementation of a new eprocurement Solution to meet its needs as well as those of Affiliates. P2P being deployed worldwide. Focus - starting in France then deploying globally in 3-5 years. Application interfaces with SAP instances everywhere in the world. Supplier on-boarding - technical challenge regarding catalog loading for suppliers. CONFIDENTIAL 2017 Determine. All rights reserved 20

21 Client 2 Example P2P User Concentration > < 100 No Presence Items Currently Number of end users (requesters / buyers) 15,145 Number of Purchase Orders per year 500,000 Number of catalogs 70 Number of country to migrate 28 CONFIDENTIAL 2017 Determine. All rights reserved 21

22 Client 2 Example Challenges & Planned Benefits Challenges: Managing cost control / difficulty in getting global project aligned Aligning with the reduction in number of SAP instances and upgrade to ECC6 (Master Data, Interfaces) Standardizing catalogs - purchasing solution for roll-out Synchronization of cost centers, internal orders, purchasing groups, GL accounts Local reporting formats despite global scope of need Managing growth in revenue Planned Benefits: Using modern web-based technologies and a more effective e-procurement portal. Provide their internal clients and potential suppliers, more information, a more user-friendly environment, and the ability to achieve more wins from procurement perspective. Modern web-based technology to create an online procurement tool that will be user friendly, simple to use, and provides detailed information about their suppliers and offerings. Enabling the ability to easily add or modify content. Latest key word search practices and maximize searchability in all search engines in the tool and database. CONFIDENTIAL 2017 Determine. All rights reserved 22

23 End Result Procure to Pay CONFIDENTIAL 2017 Determine. All rights reserved 23

24 POLL QUESTION If you ve been involved in a Global Roll-Out, what was the Approach? 1) Big-Bang? (Everything all at once) 1) Regional? (One region or country at a time) 1) Who was the project driver (Procurement, Finance, Legal, Other)? CONFIDENTIAL 2017 Determine. All rights reserved 24

25 What have learned Lift & Shift BPO set the stage - Pareto works Align Scope, Targets & Timelines Establish Stakeholder Management Be mindful of Culture mandates don t work! Strong, encouraging business leadership drives buy-in Owner of the Project needs to drive the change (in this case Finance) Improvements in Processes & Controls go hand in hand It takes perseverance and time to (overachieve goals New challenges will always emerge.... CONFIDENTIAL 2017 Determine. All rights reserved 25

26 What can be important about global rollout Helping procurement planning & budget management Importance of linking to annual budget planning Tax Regime adaptability to local regions (Europe, Mexico, Brazil) Rules can be defined by users Level of data accessibility can be adjusted Can build in steps to achieve data accuracy before moving to next steps Providing true auditability across all processes Accountability built into each step of processes Creating a streamlined approval process that is highly configurable Establishing a smoother way of requisition for global users CONFIDENTIAL 2017 Determine. All rights reserved 26

27 CONFIDENTIAL 2017 Determine. All rights reserved 27

28 Contact Us David Cravens Constantine Limberakis CONFIDENTIAL 2017 Determine. All rights reserved 28

29 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 Session (#06) COMPLETE & SUBMIT EVAL

30 Session #6 Getting Global but Thinking Local: Establishing Alignment for Multi-National Technology Deployments David Cravens Constantine Limberakis Download the App: bit.ly/sigamelia Tweet: #SIGspring17

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