Transforming SAP - PDF Free Download

Transforming Procurement @ SAP Erich Winsloe, Head of Regional Procurement, SAP APJ and Greater China Hong Kong, June 16, 2015 Public

Agenda Why Transform? The Procure-to-Pay Organization Simplifying the User Experience SAP Runs Ariba Program The Road Ahead Question? 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 2

The World is changing fast Todays Challenges are bigger in nature and uncertainty persists Growing Middle Class Millennials entering labor market expect different leadership and working environment True Global Economy Incidents can have significant impact on global supply chains Disruptive Technologies Cloud Mobile Social Big Data 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4

Changing Business Environment increases pressure on companies Increases Pressure on Procurement Economic Volatility Volatility in markets Decreased stock valuation Slow economic growth High expense ratio Increasing Globalization Expansion into new markets Global process standardization International supply chains Increased off/near shoring Greater Risk Supply chain disruption Financial risk and fraud Commodity risk More Competition Pricing pressures New sources of competition Decreased budgets and spending Regulatory Changes Increasing disclosure requirements Country-specific regulations Industry-specific disclosures Accelerating Technological Change Changing business models Faster innovation cycles Expanding partnerships and channels Leveraging big data for decisions 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Procure-to-Pay @ SAP Organization and Goals GPO vision is to help SAP buy better and be a value generating business partner to the business for all procurement related activities, globally. Structure Goals CPO and Procure-to-Pay Business Owner Leverage purchasing power and driving sustainable savings across all geographies Category Procurement strategic and tactical sourcing in 36 locations Procurement Shared Services* operational procurement and accounts payable Deliver best-in-class procurement processes and highest possible service levels to internal customers Mitigate risk to SAP Be a fair partner to our suppliers >3.8 billion Spend >710,000 Annual invoices *reports solid line into Global Finance Shared Services Organization >970,000 Trips 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 6

Procure-to-Pay @ SAP Key Facts and Figures (2014) Key Facts Spend by Region 74,000+ Global SAP Employees > 430,000 PO Line Items 17.6 billion Revenue > 710,000 Annual Invoices 3.8 billion Spend > 910,000 Trip Entries 14,000+ Global Suppliers 420 FTS in P2P AMERICAS 33% EMEA 54% ASIA PACIFIC 13% 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 7

Evolution of Procurement towards a Strategic Function The Transformation Journey towards Run Simple and Business Value Enabler Role Operational Tactical Strategic Partner Regional Purchasing Procurement Operations Global Categories Organization Globalization Category Managements Change Management People Development Business Partner Leadership People Development & Change Management SRM 5.0 SRM 7.02 Cloud Processes & Systems E2E P2P & Cloud Systems, Networks, Mobile Globalization E2E Process Simplification Automation Strategic Solutions Providing Today 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 8

Simplify the user experience. Procure-to-Pay Innovations at a Glance New Catalogue Google fast and Amazon like shopping experience with Ariba Catalogue Analytics Procurement Dashboards are key to manage the Procure-to- Pay Process Mobile Solutions Improved Usability Increased Manager Effectiveness Simplify Travel Reduced time with faster reimbursement and increased employee satisfaction Business Networks Reduced Process costs and faster cycle times Leveraging purchasing power of SAP 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 9

Mobile Easy order Simplified Shopping experience: Shopping in three clicks 1. Mobile and flexible Mobile apps for ipad, iphone, available Easy ordering of preferred end-use consumable articles (online/offline) Using of non productive waiting time to process shopping carts 2. Full Integration Integration to online SRM system Detailed information of articles on item level 3. User friendly User-Interface Simple and intuitive 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 11

Mobile Shopping Cart Approval Simplified Approval: Improved Manager Effectiveness 1. Mobile and flexible Mobile apps for ipad, iphone, Android smartphones and Blackberry available Approval and rejection of shopping carts with mobile apps (online/offline) Using of non productive waiting time to process shopping carts 2. Full integration Integration to online SRM system Submission of the receipts via mobile app or email 3. User friendly User-Interface Simple and intuitive 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 12

Travel and Expense Management on the Cloud Faster reimbursement. Increased Employee Satisfaction 1. Reduction of the entries/clicks and time spent on the expense report entry (77% time and 57% clicks saved) Integration to online booking systems like GetThere or Amadeus e-travel Management Data feed of the credit card items Submission of the receipts via mobile app or email Expense report creation via an Outlook meeting request 2. Mobile and flexible Mobile apps for ios, Android & BB Devices Scanning of receipts with mobile apps Using of non productive waiting time during trip for expense entry 3. User friendly User-Interface - usability satisfaction level of 71% (good) Simple and intuitive Coming soon: 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 13

Spend Visibility. Run Simple New analytics frontend creating full transparency to strategically manage spend Before After PO and non-po Spend aggregated PO-Spend BW non PO-Spend ERP ERP SRM ERP ERP SRM 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 14

Moving on to the Business Network. Collaborate to win Reduced Process costs and faster cycle times Procure-to-Pay Process Demand Planning / Aggregation and Spend Analytics Sourcing / Procurement and Contract Management Supplier Management Invoice Management and Accounts Payable Ariba Spend Visibility Ariba Collaborative Commerce Ariba Collaborative Sourcing Ariba Cloud & Network Solutions Ariba Collaborative Finance Ariba Procurement On Demand SAP On Premise Solutions FI PM PP SAP Business Suite MM SCM SRM Sourcing CLM SPM 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 15

SAP runs ARIBA The Power of 2 253,000+ Customers 17.6B+ 2014 total SAP revenue 8M+ Users >1.7 million Companies in 190 countries 74% Of the world s transaction revenues touch an SAP system 34 Languages 1200 New network suppliers weekly $750 Bn+ Commerce conducted annually 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 16

Program Step 1: The Supplier Match for SAP 12 % of our suppliers are on Ariba 34 % of our Invoices come from those suppliers 45 % of our Top 100 suppliers matched 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 17

Example Purchase Order Invoice Automation and Run Simple Automation of Invoice to Pay Eliminate Manual, no Value Adding Tasks Transition to fully integrated and automated purchase-order to invoice process will be a must in the future to reduce transactional costs and free up resources to focus on value adding activities in the end-to-end process. Manual paper based process from Purchase Order to Invoice Purchase Order to Invoice fully automated on Ariba Network Invoice creation in a system Printing Mail Shipping Scanning Manual Data Entry Purchase Order creation / Invoice data Purchase Order data conversion in invoice 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 18

Program Step 2: The Solution Framework we got started with Selected Solutions Ariba Supplier Management Single Point for Business Collaboration Maintain Supplier Profile Information Ariba Sourcing RFI, RFP, eauction Ariba Procurement Content Ariba Collaborative Commerce Catalogues, Punch Out Catalogues PO, OC, ASN, Invoice, Invoice Status SAP Global Procurement SAP Suppliers 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 19

Program Step 3: Implementation of Hybrid Model by orchestrating SAP On Premise and Ariba Cloud Solutions Strategic and tactical procurement Operational Procurement Accounts Payable and T&E Purchase Order, Invoice Status Spend Visibility Supplier Management esourcing Contract Management Catalogue Procurement Content Service Procurement SRM on HANA Self Service Procurement ERP on HANA Purchasing/ Invoicing Ariba Discount Pro Supplier Supplier Ariba Cloud Solutions Vendor Invoice Management by Open Text Invoices, Order Conf., ASN Ariba PO & Invoice Automation Supplier 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 20

Achievements Source-to-Pay Automation, Business Networks and Shared Services Streamline entire Source-to-Pay Process Achievements: Facts & Figures Leverage economies of scale and control through shared services Cut costs through automated data extraction and process automation Create workforce efficiency through streamlined processes including mobile approvals Reduce errors at the source Improve working capital management through better visibility to cash requirements Optimize cash discount utilization including dynamic discounting 3 Months Implementation Time >4,000 Suppliers on ARIBA Network 268,000 Documents transmitted 50% Increase in Automation 20% Productivity gain <1.0bn Purchase Order value sourced 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 21

Evolution of SAP s Procurement Function. Organization Source-to-Pay, People Development and Change, Processes & Systems: Cloud only Organization & People Globalization Category Managements Source-to-Purchase Strategic and Tactical Procurement Purchase- Operational Procurement to-pay Accounts Payable and Travel & Expenses Processes & Systems E2E P2P & Cloud Systems, Networks, Mobile Ariba for Goods, Fieldglass for Services and Concur for Travel 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 22

Our Team s Keys to Success Implementation Approach Project Management Focus Implementation of vanilla standard OnDemand Ariba solutions Use of SAP Rapid Deployment Solution (RDS) Use of scrum project methodology Coordination of involved business groups (Internal IT / Business / Ariba) Harmonization of four work streams and alignment with supplier enablement efforts Simplification and standardization Focus on enablement of suppliers already registered on the network first Highly motivated teams taking responsibility Implementation done in just 3 months record speed! 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 23

Transformation is a Journey

Thank You! Erich Winsloe Head of Regional Procurement, Global Procurement Organization SAP Asia Pacific Japan and Greater China E-Mail: erich.winsloe@sap.com 2015 SAP SE or an SAP affiliate company. All rights reserved.