Date post: | 20-Aug-2015 |
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ERP Procurement The Outrageous Cost of 'Free’ When to Look Beyond Your ERP For Procurement
The webcast will start in a few minutes.
Duncan Jones V.P., Principal Analyst Forrester
Tony Wessels V.P. Marketing Coupa
Christian Bader V.P. IT Adidas Group
Coupa’s Mission
Delivering software innovation that breeds responsible spending while
impacting the company bottom line.
Poll QuesPon
What systems are you using to manage procurement processes?
1. We use manual, paper-‐based processes
2. We rely solely on our exisCng ERP system for procurement
3. We have a third party procurement system in conjuncCon with ERP
© 2012 Forrester Research, Inc. Reproduction Prohibited 13
Brute force alone won’t make people use your eProcurement system
© 2012 Forrester Research, Inc. Reproduction Prohibited 14
Six keys to successful eProcurement projects
Product selection best practices
Summary recommendations
Agenda
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eProcurement can deliver several business benefits
§ Delivering sourcing savings to the bottom line, by directing purchases to approved suppliers and contracts
§ Reducing expenditure via greater visibility and more effective control
§ Lowering administration costs , though process automation and optimization
© 2012 Forrester Research, Inc. Reproduction Prohibited 16
The business case depends on you achieving four objectives
Project business
case
User adoption
Supplier adoption
Category coverage
Controls’ effectiveness
© 2012 Forrester Research, Inc. Reproduction Prohibited 17
Success
Executive sponsorship
Application usability
Tailored approvals
Supplier enrolment
and integration
Category-specific
processes
Collaboration with Finance
Which depend on six pre-requisites
Project business
case
User adoption
Supplier adoption
Category coverage
Controls’ effectiveness
© 2012 Forrester Research, Inc. Reproduction Prohibited 18
Six keys to successful eProcurement projects
Selection and implementation best practices
Summary recommendations
Agenda
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Make the right way easy, and the wrong way hard
• Eliminate non-essential approvals
• Give managers a good mobile UI
• Integrate with suppliers
• Tell user about PO’s progress
• Measure & report compliance • A PO raised after the fact is a fail
• Track maverick buyers and make compliance a performance goal
• Delay payment if there is no PO
© 2012 Forrester Research, Inc. Reproduction Prohibited 20
Select the product that will best help you achieve the project’s goals
§ Use formal objective decision criteria
§ Consider the pros and cons of going with your ERP incumbent
§ Who can best help you: – drive high user and supplier adoption?
– support broad category coverage?
– enable effective controls?
© 2012 Forrester Research, Inc. Reproduction Prohibited 21
Your eProcurement solution should be easy to use
Search catalogue
Approve requisition
Confirm price & delivery
Receive goods or services
Submit invoice
Approve invoice
(difference)
Systems of engagement - flexible, intuitive, mobile
Systems of record – robust, internally consistent, static
Purchase Order
ApprovedInvoice
© 2012 Forrester Research, Inc. Reproduction Prohibited 22
Evaluate your incumbents’ ability to help you achieve the project’s goals
ERP § Financial resources
§ Productized integration with system of record
§ Well-known brand
§ Job security for IT
§ License may be sunk cost
ePurchasing specialists § Usability
§ Vision and focus
§ Supplier support services
§ Negotiation leverage
§ SaaS
© 2012 Forrester Research, Inc. Reproduction Prohibited 23
Is it really SaaS? Apply the duck test
§ Subscription contract – Investment matches roll-out – Flex up or down
§ Hosted by the software provider § Highly configurable § Frequent product enhancements § Scalable, on demand § Multi-tenant infrastructure § Customer success culture
© 2012 Forrester Research, Inc. Reproduction Prohibited 24
The real difference is a client-focused culture
They can’t afford to:
§ Release products that aren’t really ready for production use
§ Push bundled deals with lots of modules you’re not yet ready to consume
§ Sell to the CIO without securing broad executive buy-in
§ Let implementation projects go on for ever
§ Allow adoption and usage to wane after the initial enthusiasm
SaaS vendors are focused on your success not merely on their own revenue recognition
© 2012 Forrester Research, Inc. Reproduction Prohibited 25
Six keys to successful eProcurement projects
Product selection best practices
Summary recommendations
Agenda
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Summary recommendations
If you’re just starting: § Build a business case, and
ensure that drives the selection process
§ Use objective evaluation criteria
– Weight usability over integration
– Who will best deliver adoption?
§ Start somewhere you can get a quick win
If you’re further along: § Analyse adoption to identify
obstacles
§ Make the right way easier and the wrong way harder
– Find juicier carrots and bigger sticks
§ Persuade Finance to repeal their counter-productive edicts
© 2009 Forrester Research, Inc. Reproduction Prohibited
Thank you
Duncan Jones [email protected] http://www.forrester.com/Duncan-Jones
Poll QuesPon
What are the key challenges of using ERP for procurement?
1. User AdopCon – complexity
2. Lack of control, dependency on IT
3. None, we love it!
© 2012 Forrester Research, Inc. Reproduction Prohibited 29
Introductions
Adidas Case Study
Agenda
Forrester Insight
Q & A
q The adidas Group strives to be the global leader in the sporting goods industry
q The Group comprises around 170 subsidiaries with headquarters in Germany
q Brands include adidas, Reebok, TaylorMade, CCM Hockey and Rockport
q Revenues of €13,3 billion in 2011
31
• One of the fastest growing regions
• Multiple languages and currencies
• Common ERP Suite
• Centralized as well as local BI Platform
• Over 200 Retails
LATIN AMERICA LANDSCAPE
BUSINESS OBJECTIVES
• Ensure compliance / governance with policies and regulations
• Create visibility at Regional / country level ( 7 countries, 600-700 users)
• Create foundation for a centralized buying organization
• Improve end user experience.
• Replace in house spaghetti code
• Give process visibility to customers.
• One solution everywhere
SELECTION CRITERIA
• Usability
• Multi language and currency support
• Robust functionality
• Complement ERP
• Highly configurable - No ERP customization
• Total cost of ownership
• Time to Market (implementation time)
• Low training requirement
RESULTS SO FAR
• Implemented Coupa in 6 weeks with full procure to pay, budgets, contracts and reporting
functionality
• 550k GL accounts, 7,700 suppliers
• Multi language & currencies e.g. Spanish
• Spend categories - marketing, personnel expenses, maintenance & repairs, projects,
technology, legal fees