Procurement and Spend Analytics

Transcription

1 Atlanta Oracle Applications User Group Procurement and Spend Analytics Customer Case Study Kshitij Kumar & Sravan Daggupati Apps Associates LLC November 20, 2009

2 Agenda Why BI Apps Welch s Case Study Procurement and Spend Analytics Dashboards KPIs Reports Live Demonstration (time permitting) Summary Atlanta OAUG November

3 Disclaimer The following is intended to outline Speaker's ideas on the topic. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. Atlanta OAUG November

4 Business Intelligence Perspective Make Adoption Curve ERP BI $ Implement & support Buy Customized Mainframe Software MRP MRPII Atlanta OAUG November

5 About Apps Associates Making Global Delivery Feel Closer To Home Offices in USA, Germany and India MA (HQ); NY/NJ & Atlanta in 2009 Founded in 2002 with >100 % growth every year for last 5 years: Inc. 500 list of fastest growing private U.S. companies Over 250 employees (end of Q3 2009) with strong local presence Management & Sr. Consultants: 75% former Oracle employees Oracle s Pillar Partner for OBI and BI Apps Top 20 in North America #1 in North East Atlanta OAUG November

6 Representative Clients more Atlanta OAUG November

7 About Speakers Kshitij Kumar Vice President of Business Intelligence 15 years industry experience Sravan Daggupati Practice Manager 10 years industry experience Lead Oracle BI Implementations Atlanta OAUG November

8 Driver for Business Intelligence Business Units Multiple Data Marts Multiple BI Tools Disparate Systems Data Store1 BI Tool1 BU1 Data Store2 BI Tool2 BU2 Data Store3 BI Tool3 BU3 Data Store n BI Tooln BUn Atlanta OAUG November

9 Welch Foods Inc. Business Challenges o o o Limited visibility into KPIs Lag time between business event and key data IT Challenge o o o o Heavy dependence on IT Multiple source and end user systems Design and scalability of custom datawarehouse and reports Demand to handle constant change and rework of business scenarios No tool to report on OPM and ASCP Oracle Solution Oracle Products / Solution Implement OBI-EE / BI Applications Finance Supply Chain and Order Management Procurement and Spend Build BI App Modules for: OPM (Oracle Process manufacturing) ASCP (Advanced Supply Chain and Planning) Integrate Custom Data Warehouse Atlanta OAUG November

10 OBI and BI Apps EPM Workspace Pre-Built (Best Practice) PERFORMANCE MANAGEMENT APPLICATIONS Performance Management Business Profitability Planning Applications Management Strategy Management Interactive Dashboards Reporting & Publishing Financial Reporting & Compliance Ad-hoc Analysis Procure &Spend Proactive Detection and Alerts SC &OM Business Intelligence Foundation BI APPLICATIONS BI Projects Applications HR Mktg. Disconnected Analytics MS Office Plug-in Service Contact Center. Hybrid Web Services Finance Oracle BI Suite EE Plus Fusion Middleware Traditional / Custom Packaged ETL Maps DW Schema Universal Adapters IVR, ACD, CTI Hyperion MS Excel Other Data Sources Atlanta OAUG November

11 Prepackaged Analytics Auto Comms & Media Complex Mfg Consumer Sector Energy Financial Services High Tech Insurance & Health Life Sciences Public Sector Travel & Trans Projects Service & Contact Center Marketing Procurement & Spend Supply Chain & Order Management Financials Human Resources Funding & Agreements Service Effectiveness Campaign Effectiveness Direct / Indirect Spend Revenue and Backlog General Ledger Employee Productivity Budgets Analysis Customer Satisfaction Customer Insight Buyer Productivity Inventory Accounts Receivable Compensation Revenue Analysis Resolution Rates Product Propensity Off Contract Purchases Fulfillment Status Accounts Payable Compliance Reporting Billing Analysis Service Rep Efficiency Loyalty & Attrition Supplier Performance Customer Status Cash Flow Workforce Profile Cost Analysis Profitability Analysis Service Cost Churn & Service Trends Market Basket Analysis Campaign ROI Purchase Cycle Time Employee Expenses Order Cycle Time BOM Analysis Profitability Expense Management Retention Analysis Return on Human Capital Source adapters: Oracle BI Suite Enterprise Edition Plus and Other Operational & Analytic Sources Atlanta OAUG November

12 Out of the Box - Components Atlanta OAUG November

13 Procurement and Spend - Overview Supply side performance by integrating data from across the enterprise value chain Increases visibility into the complete procure-to-pay process Gain efficiency with comprehensive spend and procurement analysis Quantify Supplier performance Employee expense analytics Atlanta OAUG November

14 Target Users / Stakeholders Business Users and Management Business Ownership to drive the implementation CFO Supply Chain and Procurement Executives Procurement and Commodity Managers Cost Center and Inventory Managers Buyer IT Users and Management BI Manager Oracle BI Administrator and Developers ETL Developers Atlanta OAUG November

15 Procure and Spend - Flow Atlanta OAUG November

16 Procure to Spend - Decision Flows Atlanta OAUG November

17 Procurement and Spend Dashboards Procurement Performance Current Status Requisition Processing Procurement Effectiveness Receipt Performance PO Price and Contract Leakage Spend Analyzer Spend by Category Spend by Supplier Spend by Organization Item Details Supplier Performance Trends Exceptions Supplier Payables Quality Performance Delivery Performance Price Performance Employee Expenses Manager Expenses Cost Center Expenses Atlanta OAUG November

18 Procurement Performance Dashboard Value of outstanding commitments Are requisition being managed effectively. Are Purchased orders being issued, filled according to policy? How will current procurement impact cash flow? Are purchasing trends similar to prior periods, if not why? Are prices creeping up? What could be done to control them? Atlanta OAUG November

19 Spend Analyzer Dashboard What are we spending on? Can I find ways to save money? Who is buying the most or least? What are organizations, locations, projects buying? Are there changes in spending patterns? Atlanta OAUG November

20 Supplier Performance Dashboard Who are my biggest suppliers? Who are my best suppliers? Worst suppliers? Are we sufficiently taking advantage of volume discounts? Which suppliers deliver on time, consistently? Are our suppliers invoicing us correctly? Are there changes in spending patterns? Are there outstanding supplier payment issues? Atlanta OAUG November

21 Employee Expenses Dashboard How much are my employees expenses (T&E)? What organization / regions / people are spending the most? What are they spending it on (expenditure types)? Are there any changes in spending patterns? Any outliers? Are we following our employee reimbursement policy What are the expense report submission timings (day of the month, week of the quarter)? Atlanta OAUG November

22 More Reports Atlanta OAUG November

23 Ad-hoc Reports: Oracle Answers More information required? Existing Reports not good enough? Want to report additional fields? Reduce IT dependency for additional Information? Oracle Answers as ad-hoc reporting tool (similar to Discoverer) Procurement and Spend Subject Areas Pick the columns to build ad-hoc reports 5 Subject Areas Various Dimensions and Facts Atlanta OAUG November

24 Implementation Approach / Best Practices Pilot Project Finite set of data to reconcile Engage users upfront Report Rationalization What questions are answered by the report Design the Roadmap for future implementations based on the pilot project results Design to enhance and reuse the existing investments Right architecture for scalability Adhere to the customization guidelines to preserve in upgrades Engage with experts Incremental builds and change control board Atlanta OAUG November

25 Cost of Ownership & ROI Build from Scratch with Traditional BI Tools Oracle BI Applications Training / Roll-out Define Metrics & Dashboards DW Design Results Faster time to value Lower TCO Assured business value Back-end ETL and Mapping Months or Years Training / Rollout Define Metrics & Dashboards DW Design Back-end ETL and Mapping Weeks or Months Easy to use, easy to adapt Role-based dashboards and thousands of pre-defined metrics Prebuilt DW design, adapts to your EDW Prebuilt Business Adapters for Oracle, PeopleSoft, Siebel, SAP, others Source: Patricia Seybold Research, Gartner, Merrill Lynch, Oracle Analysis Atlanta OAUG November

26 Typical Effort & Customization Dashboards & Reports Easy Additional dashboards and reports, guided and conditional navigations, ibots, etc. OBIEE Metadata DW Schema ETL Degree of Customization Level of Effort Moderate Intermediate Involved Additional derived metrics, custom drill paths, exposing extensions in physical, logical and presentation layer, etc. Extension of DW Schema for extension columns, additional tables, external sources, aggregates, indices, etc. Extension of ETL for extension columns, descriptive flexfields, additional tables, external sources, etc. Atlanta OAUG November

27 Summary Typical Results and ROI Financial: 1. Existing ERP systems can remain as is. Future upgrades etc do not affect business insight 2. OBI leverages heterogeneous data sources. Helps to consolidate costs around licensing, maintenance and other support costs 3. Reduced Training, Helpdesk Support and IT infrastructure costs 4. End user empowered with timely data and Self Service reporting (Oracle Answers) hence freeing up IT resources to work on other initiatives reduce cost of new hires Operational: 1. Single Source of truth 2. Cross functional / department view 3. One tool for both operational and KPI reports 4. One tool to cater all levels of users in an organizations 5. Increased governance and risk since no data movement to multiple systems 6. All business units speak the same language for all business KPIs and terms Atlanta OAUG November

28 Thank You BI is evolution not revolution take time to evolve Boston, MA (HQ) Lakeview Parkway, #700, Alpharetta, GA Atlanta OAUG November