Business Commerce Innovation [New York City]

1

Buy, Pay, Manage: The Future of Business

Commerce

Andrew Bartolini, Chief Research Officer

Christopher J. Dwyer, Research Director

Ardent Partners

October 7, 2014

2

CO-PRESENTERS

Copyright © 2014 - Ardent Partners Ltd.

Andrew Bartolini

Chief Research Officer

Ardent Partners

Christopher J. Dwyer

Research Director

Ardent Partners

3

AGENDA

Introduction


Commerce

Convergence on the Network


4

Ardent Partners is a research and advisory firm

focused on defining and advancing the supply

management strategies, processes, and

technologies that drive business value and

accelerate organizational transformation within the

enterprise.

ARDENT PARTNERS


5

CPO Rising: The site for CPOs and

other supply management executives

www.cporising.com

ARDENT’S NETWORK OF SITES


Payables Place: Global source for

ePayables news, research, & analysis

www.payablesplace.com

6

ARDENT’S’ RESEARCH COVERAGE:

SUPPLY MANAGEMENT

Commercial Cards

Supply Risk & Supplier Information/Performance Management

Contingent Workforce Management

Other Complex Categories (T&E , Meetings and Events, Print, etc.)

Spend

Analysis eSourcing

Contract

Management eProcurement ePayables


Procurement Outsourcing

7

BUY, PAY, MANAGE: THE FUTURE OF BUSINESS

COMMERCE

8 Copyright © 2014 - Ardent Partners Ltd.

WHAT IS BUSINESS COMMERCE?

BUY PAY MANAGE

9

BUSINESS COMMERCE INNOVATION


BUY PAY MANAGE

22%

4%

2006 2011

Motorola Market Share: Mobile Phones

Key Takeaways:

Joy’s Law: “Innovation will happen,

and it will happen elsewhere.”

Innovation extends to all supply

markets

A ‘static “supply base is now a red

flag

No company can risk going it alone

Increasing reliance on suppliers

Suppliers are partners assets

10

CPO’S AGENDA: THEN AND NOW

CPO View 2009

"There has been a change in context, speed, and risk. It's

time for procurement to be the hero.“

Christina DeLuca

CPO - BP

CPO View 2014

"The minute you get complacent, people will

begin to offer other opinions. You must stay

sharp.“

Chris Shanahan

CPO - BD


11

TOP CPO PRIORITIES (NEXT THREE YEARS)


Innovation

©Ardent Partners - 2014

12

TOP STRATEGIES FOR SOURCING TEAMS IN 2014


55%

47%

42%

32% 31% 31%

Improvecollaborationwith business

Improvecollaborationwith suppliers

Improve use oftechnology (buynew systems /

improve currentones)

Implementstronger

policies andprocesses

Improvecollaborationwith the CFO

and otherexecutives

Optimize currentsystems and

processes

© Ardent Partners - 2014

Collaboration

13

THE CPO ROLE IN 2014

Purchasing

Sourcing

Cash Risk

Innovation Sales

M&A New

Products

New Markets

Joint

Ventures

Travel

Outsourcing

Contingent

Workers

Trusted Advisor / Influencer / Special Projects

Accounts

Payable


Convergence

14



BUY PAY MANAGE

Key Takeaways:

No company wants to “slow the line”

ePayments are easier

ePayments are cheaper

ePayments are more accurate

ePayments are more secure

15

AP’S TOP PRIORITIES IN 2014


23%

25%

27%

31%

37%

63%

Generate discounts on spend

Better link P2P processes and systems

Improve collaboration/communication withprocurement

Improve visibility into invoice and paymentdata

Improve reporting and analytics around AP

Reduce processing costs


16

THAT PERSISTENT PAPER PROBLEM

Copyright © 2014- Ardent Partners Ltd.

70%

30%

Manual Electronic


Invoice Formats Payment Formats

44% 56%

Manual Electronic


17

THE BENEFITS OF ELECTRONIC PAYMENTS

24% of all AP groups report

increased accuracy and

control of payment delivery

24% 45% 51%

17

45% of AP groups say that

electronic payments

enable more efficient and

streamlined processing

(e.g., review, approval,

execution).

51% of enterprises rate

cost savings as the top

benefit seen from

electronic payments

18 18

Greater

involvement in

working capital

optimization

Skill set

required within

AP will change

Stronger AP &

Procurement

partnership

AP process will

be largely

automated

AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3

YEARS)

83% 69% 66% 57%

19



BUY PAY MANAGE

Job Stats

4.4 years = Average job

tenure in US (US Dept. of Labor - 2014)

91% of Millenials expected

to stay at current job less

than 3 years

Key Takeaways:

The “rules of employment” have

changed

Work will continue to migrate to where it

can best be done

Geography will not be a talent constraint

Job hopping is now a trend

Outside talent can offer great value and

agility

There is a talent war

New strategies and approaches are

needed

20

CURRENT CONTINGENT WORKFORCE CHALLENGES


21

THE EVOLVING CONTINGENT WORKFORCE

Ardent Partners predicts that the average contingent workforce will

rise by 30% over the next three years

92% of enterprises cite non-traditional talent as a moderate-to-vital

aspect of their overall corporate strategy

The “war for talent” now outweighs “cost savings” as the top driver

of contingent workforce management


22

Traditional Complex Independent Contractors


Comprised of SOW-

based projects and

services

Purpose: Unique

talents and

expertise

Freelancers,

consultants and

contractors

Purpose: High-level

talent and

specialized skillsets

“Temps” sourced

via staffing

suppliers and

agencies

Purpose: Low-to-

mid-level talent

ARDENT PARTNERS CWM FRAMEWORK

23

THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT


24

CONVERGENCE ON THE NETWORK

25

THE EVOLUTION OF TALENT SOURCES


26

BUSINESS NETWORKS’ IMPACT ON

TRANSACTIONS

27

BUSINESS NETWORKS’ IMPACT ON SUPPLIER

COMMUNICATION / COLLABORATION

28

THE NEW “COMMERCE” DYNAMIC

Speed and complexity continue to accelerate

Compliance, control, efficiency are table stakes

This is the “Age of Innovation and Collaboration“

Winners will be the agile organizations that can tap into

expertise and find value wherever it exists in the market

Selecting the right partners and platforms has never been

more important


29

For more information please visit:

www.ardentpartners.com

THANK YOU!

Andrew Bartolini

Managing Partner &


617.752.1620

[email protected]

@andrewbartolini

Contact Info: Ardent’s Media Sites:

Copyright© 2014 - Ardent Partners Ltd.


Research Director &

VP, Operations

617.752.1624

[email protected]

@cjd_ardent

http://www.ardentpartners.com/

mailto:[email protected]


http://www.payablesplace.com/

30


Commerce

Andrew Bartolini, Chief Research Officer

Christopher J. Dwyer, Research Director

Ardent Partners

October 7, 2014

31

CO-PRESENTERS


Andrew Bartolini


Ardent Partners


Research Director

Ardent Partners

32

AGENDA

Introduction


Commerce

Convergence on the Network


33

Ardent Partners is a research and advisory firm

focused on defining and advancing the supply

management strategies, processes, and

technologies that drive business value and

accelerate organizational transformation within the

enterprise.

ARDENT PARTNERS


34

CPO Rising: The site for CPOs and

other supply management executives

www.cporising.com

ARDENT’S NETWORK OF SITES


Payables Place: Global source for

ePayables news, research, & analysis

www.payablesplace.com

35

ARDENT’S’ RESEARCH COVERAGE:

SUPPLY MANAGEMENT

Commercial Cards

Supply Risk & Supplier Information/Performance Management

Contingent Workforce Management

Other Complex Categories (T&E , Meetings and Events, Print, etc.)

Spend

Analysis eSourcing

Contract

Management eProcurement ePayables


Procurement Outsourcing

36

BUY, PAY, MANAGE: THE FUTURE OF BUSINESS

COMMERCE

37 Copyright © 2014 - Ardent Partners Ltd.

WHAT IS BUSINESS COMMERCE?

BUY PAY MANAGE

38



BUY PAY MANAGE

22%

4%

2006 2011

Motorola Market Share: Mobile Phones

Key Takeaways:

Joy’s Law: “Innovation will happen,

and it will happen elsewhere.”

Innovation extends to all supply

markets

A ‘static “supply base is now a red

flag

No company can risk going it alone

Increasing reliance on suppliers

Suppliers are partners assets

39

CPO’S AGENDA: THEN AND NOW

CPO View 2009

"There has been a change in context, speed, and risk. It's

time for procurement to be the hero.“

Christina DeLuca

CPO - BP

CPO View 2014

"The minute you get complacent, people will

begin to offer other opinions. You must stay

sharp.“

Chris Shanahan

CPO - BD


40

TOP CPO PRIORITIES (NEXT THREE YEARS)


Innovation

©Ardent Partners - 2014

41

TOP STRATEGIES FOR SOURCING TEAMS IN 2014


55%

47%

42%

32% 31% 31%

Improvecollaborationwith business

Improvecollaborationwith suppliers

Improve use oftechnology (buynew systems /

improve currentones)

Implementstronger

policies andprocesses

Improvecollaborationwith the CFO

and otherexecutives

Optimize currentsystems and

processes


Collaboration

42

THE CPO ROLE IN 2014

Purchasing

Sourcing

Cash Risk

Innovation Sales

M&A New

Products

New Markets

Joint

Ventures

Travel

Outsourcing

Contingent

Workers

Trusted Advisor / Influencer / Special Projects

Accounts

Payable


Convergence

43



BUY PAY MANAGE

Key Takeaways:

No company wants to “slow the line”

ePayments are easier

ePayments are cheaper

ePayments are more accurate

ePayments are more secure

44

AP’S TOP PRIORITIES IN 2014


23%

25%

27%

31%

37%

63%

Generate discounts on spend

Better link P2P processes and systems

Improve collaboration/communication withprocurement

Improve visibility into invoice and paymentdata

Improve reporting and analytics around AP

Reduce processing costs


45

THAT PERSISTENT PAPER PROBLEM


70%

30%

Manual Electronic


Invoice Formats Payment Formats

44% 56%

Manual Electronic


46

THE BENEFITS OF ELECTRONIC PAYMENTS

24% of all AP groups report

increased accuracy and control

of payment delivery

24% 45% 51%

46

45% of AP groups say that

electronic payments enable

more efficient and streamlined

processing (e.g., review,

approval, execution).

51% of enterprises rate cost

savings as the top benefit seen

from electronic payments

47 47

Greater

involvement in

working capital

optimization

Skill set

required within

AP will change

Stronger AP &

Procurement

partnership

AP process will

be largely

automated

AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3

YEARS)

83% 69% 66% 57%

48



BUY PAY MANAGE

Job Stats

4.4 years = Average job

tenure in US (US Dept. of Labor - 2014)

91% of Millenials expected

to stay at current job less

than 3 years

Key Takeaways:

The “rules of employment” have

changed

Work will continue to migrate to where it

can best be done

Geography will not be a talent constraint

Job hopping is now a trend

Outside talent can offer great value and

agility

There is a talent war

New strategies and approaches are

needed

49

CURRENT CONTINGENT WORKFORCE CHALLENGES


50

THE EVOLVING CONTINGENT WORKFORCE

Ardent Partners predicts that the average contingent workforce will

rise by 30% over the next three years

92% of enterprises cite non-traditional talent as a moderate-to-vital

aspect of their overall corporate strategy

The “war for talent” now outweighs “cost savings” as the top driver

of contingent workforce management


51

Traditional Complex Independent Contractors


Comprised of SOW-

based projects and

services

Purpose: Unique

talents and

expertise

Freelancers,

consultants and

contractors

Purpose: High-level

talent and

specialized skillsets

“Temps” sourced

via staffing

suppliers and

agencies

Purpose: Low-to-

mid-level talent

ARDENT PARTNERS CWM FRAMEWORK

52

THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT


53

CONVERGENCE ON THE NETWORK

54

THE EVOLUTION OF TALENT SOURCES


55

BUSINESS NETWORKS’ IMPACT ON

TRANSACTIONS

56

BUSINESS NETWORKS’ IMPACT ON SUPPLIER

COMMUNICATION / COLLABORATION

57

THE NEW “COMMERCE” DYNAMIC

Speed and complexity continue to accelerate

Compliance, control, efficiency are table stakes

This is the “Age of Innovation and Collaboration“

Winners will be the agile organizations that can tap into

expertise and find value wherever it exists in the market

Selecting the right partners and platforms has never been

more important


58

For more information please visit: www.ardentpartners.com

THANK YOU!

Andrew Bartolini

Managing Partner &


617.752.1620

[email protected]

@andrewbartolini

Contact Info: Ardent’s Media Sites:

Copyright© 2014 - Ardent Partners Ltd.


Research Director &

VP, Operations

617.752.1624

[email protected]

@cjd_ardent

http://www.ardentpartners.com/



http://www.payablesplace.com/

Business Commerce Innovation [New York City]

Business

Transcript of Business Commerce Innovation [New York City]