IntelliSource: NetApp's Innovative, Customer- Centric Procurement Operations. NetApp Tunc Yilmaz Sr. Manager Operations
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1 IntelliSource: NetApp's Innovative, Customer- Centric Procurement Operations NetApp Tunc Yilmaz Sr. Manager Operations Denali Alpar Kamber Managing Partner DENVER FALL 2014 SU MMIT
2 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 (#5) DENVER FALL 2014 SU MMIT
3 IntelliSource NetApp's Innovative, Customer-Centric Procurement Operations Presented by Tunc Yilmaz Sr. Manager Operations, NetApp Alpar Kamber Managing Partner, Denali 2013 Copyright Denali Group. All Rights Reserved.
4 2013 Copyright Denali Group. All Rights Reserved. 4
5 Expanding Procurement s Value for The Global 1000 for Over 18 years Procurement Transformation, Strategic Sourcing, and Category Management Managed, Source to Pay programs, Sourcing, Contracting, Supplier Management, Analytics and Intelligence Subscription and Custom Supply Market Intelligence Learn, Play and Reinforce: Category Management and Strategic Sourcing Training Staffing and Recruiting of Procurement Professionals Denali Group Confidential,
6 Money is earned, while you spend it My Father Denali Group Confidential,
7 Managed Services Era Category Management Era Strategic Sourcing Era Denali Group Confidential,
8 Often the two are confused: Managed Services in a procurement capacity delivers value in an integrated fashion and one size does not fit all Procurement Managed Services IS NOT consulting services or staff augmentation Procurement. Managed Services IS NOT lifting and shifting you procurement function Procurement Managed Services IS capable support to help procurement organizations create bench and flex capacity to drive additional volume of value added work delivered to organizations in a flexible, scalable way Managed Services Ownership remains with the client Ownership BPO Ownership transferred to the provider Selective Tasks Results Scope Focus End to End $$$ Combined Capabilities Replaced Denali Group Confidential,
9 You can outsource the work, but you can t outsource responsibility Peter McGinley VP Finance APAC NetApp Denali Group Confidential,
10 Dedicated to Your Success
11 Customers have made us their top choice for key technologies that drive data center transformation. #1 Storage Operating System #1 in Storage for Public Cloud Source: IDC Names NetApp Data ONTAP as the #1 Branded Storage Operating System Source: IDC Worldwide Quarterly Disk Storage Systems Tracker 2014 Q2, September 2014 IDC Storage Users Demand Study 2013 Fall Edition, IDC #250106, August 2014 (based on IDC s estimates for external storage systems capacity shipped in 1H 2013) Public cloud infrastructure includes storage acquired by service providers for delivering SaaS/IaaS/PaaS as well as storage acquired by value-added content providers (VACP) for delivering content. #1 Integrated Infrastructure Capacity - When measured by revenue in IDC s Worldwide Quarterly Integrated Infrastructure and Platforms Tracker Q1 2014, published June 2014 (Integrated Infrastructure is a segment of the integrated infrastructure and platforms market that are designed for general-purpose, distributed workloads) #1 Integrated Infrastructure
12 Leading organizations worldwide count on NetApp for software, systems and services to manage and store their data. Our Team:12, countries Founded in 1992 US $6.3B revenue Fortune 500 NASDAQ: NTAP From FORTUNE Magazine, February 3, Time Inc. FORTUNE and FORTUNE 100 Best Companies to Work For are registered trademarks of Time Inc. and are used under license. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, NetApp. 12 Years in a Row: A Fortune 100 Best Place to Work
13 GSPS Global Supplier Programs and Strategy GSS Global Sourcing Services GSP Global Sourcing Partners Category Management & Business Relationship Center of Excellence COE Supplier Programs SRM, Card Programs, Diversity Tools, Process, Policy, Data, Analytics, Tactical Operations Travel Part of Finance & Operations Group (CFO) ~$1 Billion indirect spend Global Organization 3 major categories Professional Services Technology Marketing NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
14 IntelliSource NetApp IntelliSource journey started 4 years ago How do we scale procurement globally and expand our reach? How do we best utilize our GSS organization? Keep Strategic Activity in house, scale Tactical Activity utilizing a Managed Services model Concentrate our strategic resources to develop category strategies business relationship Provide Business End to End Seamless Procurement Service NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
15 IntelliSource Storyboard NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
16 Let us follow Nicole on her IntelliSource Experience Nicole wants to buy something Nicole reaches out to get IntelliSource Service help GSS Operations works with Nicole to understand what she wants to buy Requirements Timelines Budget Preferences GSS Operations decides on the best solution Catalog Buy Card Buy Quick Buy from preferred suppliers Quick Bid/SOW Competitive Bid, Sourcing Event Contract Negotiation Strategic Sourcing Event GSS Operations assesses the request Nicole s requirements Complexity Procurement Strategies & Guidelines Policy & Best Practices NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
17 Let us follow Nicole on her IntelliSource Experience Nicole s Request gets assigned to the right operations team - Tactical - Strategic - Help Desk The assigned team engages Nicole for next steps and Explain Process Agree on timeliness Level set expectations Explain engagement model Agree on outcomes & results Team executes the request Identify suppliers Negotiate Analyse and find the best value Consult & agrees with Nicole Consult & engage with GSP Draft the contract Execute the contract Advise Nicole on next steps GSP is Happy His category is executed based on his strategy His stakeholders are happy He got engaged at the right time at the right level He can concentrate his energy to the right strategic events or strategy development He receives feedback on what s working, not working he can include into his strategy He scaled himself to do more and watch his strategies make stakeholders happy and bring value to NetApp Nicole is Happy She received what she wanted and fast She didn t need to worry who the suppliers are how to negotiate if she s getting the best TCO quality/service/price How to draft a contract Follow all the policies She even saved money on her budget All of these Services provided to her by IntelliSource, she was involved at the right times and decision points and watched all happen very quickly on her behalf NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
18 IntelliSource So what can go wrong? Nicole wants to buy something Nicole reaches out to get IntelliSource Service help STRONG ROLLOUT INITIATIVE CHANGE MANAGEMENT Who and what is IntelliSource? I don t have time to deal with IntelliSource I d rather buy it myself, I know what I want Savings? I don t need savings I have budget Nicole clearly doesn't understand what IntelliSource is, what it does and what value it brings to her and to NetApp Engagement & Agreement from Leadership Make success of this rollout a co-owned goal Use leadership for traction; align regions, BUs, processes Use Cross Functional Rollout Teams Change Agents Make them part of core team and accountable, act as change agents in their own groups Use cross functional team to give feedback to process, develop ownership Don t Rush Train Soft Launch Take a multi stage, soft launch approach, don t force people, use the opportunity to educate on new process Assess, review adjust, tweak, train again as necessary NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
19 IntelliSource So what can go wrong? GSS Operations decides on the best solution Catalog Buy Card Buy Quick Buy from preferred suppliers Quick Bid/SOW Competitive Bid, Sourcing Event Contract Negotiation Strategic Sourcing Event There is a clear disconnect between how a GSP wants to execute a category vs Operation Team s understanding GSS Operations works with Nicole to understand what she wants to buy Requirements Timelines Budget Preferences GSS Operations assesses the request Nicole s requirements Complexity Procurement Strategies & Guidelines Policy & Best Practices OPERATIONALIZING A PROCUREMENT STRATEGY IS NOT OUTSOURCING IT Put Your Strategies on Paper Create category cards, category playbooks Use a 80/20 approach, quick short to the point, ask right questions, get right answers & drive decisions Dedicate Time & Train Operational Resources Operational team can only get better when they practice and learn how to interpret the instructions Learn from shortcomings/fails to develop your instructions better Identify operational team leads/experienced resources to cross train/cross execute Assess Competency of Resources Figure out where they fail and take action accordingly Operations didn t even understand what Nicole wants They told her they need to bid it out, where there was already a preferred supplier They spent endless hours with GSP to understand what they need to do Nicole got frustrated on the time lost and what value IntelliSource brings GSP is frustrated that he has to deal with resources that don t understand his category NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
20 IntelliSource So what can go wrong? Nicole s Request gets assigned to the right operations team - Tactical - Strategic - Help Desk There is a clear gap in Roles & Responsibilities and accountabilities between teams The assigned team engages Nicole for next steps and Explain Process Agree on timeliness Level set expectations Explain engagement model Agree on outcomes & results WE ARE ONE TEAM CHANGE MANAGEMENT STARTS INTERNALLY Team executes the request Identify suppliers Negotiate Analyse and find the best value Consult & agrees with Nicole Consult & engage with GSP Draft the contract Execute the contract Advise Nicole on next steps Nicole is bounced between the teams, every time she needs to explain again what she wants Operations team think GSP is going to engage, GSP thinks operations team, ball gets dropped Everyone starts pointing the finger at each other Nicole doesn t care whose fault it is or understand GSS structure, she wants to get it done. Make Sure Your Procurement Organization Understands the Model and Their Role In It Make them part of the model design, provide feedback and understand the workings If they don t understand and take accountability, it s a fail from the start Define Roles & Responsibilities Clearly Who does what, how interactions work It may be complex in the background but it should work as one team/one process to Nicole Create Transparency and Escalation Chain Transparency between the teams on good, bad and ugly Make a process to get it to the right person to solve right away but also identify root cause and fix long term NetApp, Inc. All rights reserved. NetApp Proprietary Limited Use Only
21 Managed Services engagements are made up of many to many relationships that bring complexities to managing the experience for both parties Distance Emotional Baggage The Real Self Emerges Dishonesty and Deception Lack of Commitment Lazy Bones Fairy Tale Fantasies Criticism Creeps in Too Physical too Fast Denali Group Confidential,
22 Alpar Kamber Denali Group Tunc Yilmaz Netapp Denali Group Confidential,
23 Session #5 IntelliSource: NetApp's Innovative, Customer-Centric Procurement Operations Alpar Kamber Denali Group Tunc Yilmaz Netapp DENVER FALL 2014 SU MMIT
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