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Hicx briefing (nov16)
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Transcript of Hicx briefing (nov16)
This document contains information that is proprietary, privileged, and confidential.
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1
Briefing on HICX Solutions
November, 2016
This document contains information that is proprietary, privileged, and confidential.
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Supplier management definitions and value propositions
Acronym Definition Scope How it creates value
SIM Supplier information management, to provide a single central
source of truth that brings together supplier information,
master data, and external data.
100% of supply base Underpins all other enterprise systems that need accurate supplier data i.e. ERP,
P2P, analytics, sourcing, contract management.
Efficiency gain through speed of information access and digitising the creation
and validation of data.
Opportunity gain through cross enterprise collaboration.
Compliance gain (risk reduction) by ensuring all required legislation and
corporate standards are met.
Savings gain through new ability to leverage enterprise wide terms and adoption
of contracts.
Fraud mitigation through effective governance and segregation of duties.
SLM Supplier lifecycle management, the process of onboarding,
maintaining, developing, and exiting suppliers.
100% of supply base Governance through defined end to end lifecycle processes
Cost reduction through operational efficiencies.
Risk mitigation
continuous improvements in value and operations
MDM Master data management, the ability to build data models,
define workflows for data governance, provide match and
merge, ETL and integration capabilities to extract data and to
push information back into the ERP systems.
100% of supply base Opportunity gain by aggregating information from multiple systems to deliver
business intelligence.
Identify data quality issues to enhance analytics and operational procedures.
SRM
(risk)
Supplier risk management, identifying supplier related risk.
Focuses on monitoring and mitigation of business risk to align
with appetite levels.
% of supply base Identify supply chain risks early to develop alternative options or put in place
mitigation strategies.
SPM Supplier performance Management, measurement of
adherence to KPI’s and SLA’s. Focuses on operational
performance and corrective action plans to ensure business
needs are met.
% of supply base Drive operational efficiency through supplier adherence to service/performance
levels.
Drive cost benefits through compliance to contract terms.
SRM (relationship) Supplier relationship management, to become the customer of
choice. Focuses on strategy, people, new products and
services.
% of supply base typically
segmented by spend/risk.
4-6% post-contract benefits in cost reduction.
Access to key supplier resources for innovation, speed to market.
Realisation of deals done.
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HICX deliver global 3rd party management solutions to the world’s largest, most complex, highly regulated organisations.
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Chicago(N.A. Headquarters)
London(Global Headquarters)
Dubai(MEAA Headquarters)
> OUR COMPANY > OUR CUSTOMERS
Current State:Over 1.2 MILLION suppliers under management
Global delivery, regional support
100% Self-funded
Foundation: Operational Master Data Management/Governance
Company History:GTM: Europe in 2011; MEAA in 2011; North America in 2012
Pre-GTM: 2+ years of research; 5 years of development (3x rollback, 100% code internal)
Average Customer Profile:$45.4bn in revenue/turnover (range: $1bn to $108bn)
10+ system integrations (range: 0 to 96)
36k suppliers (range: 800 to >1.2m)
Key Sector Experience:Aerospace & Defense, Energy, Pharmaceutical,Managed Service Providers,Banking & Financial Services
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What motivates our clients to invest in 3rd party management?
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Reducing the burden of inquiries on our
organization4%
Improving response times to supplier
inquiries5%
Improving supplier relationships
17%
Improving transparency and communication among suppliers
18%
Improving supplier validation/reducing risk, and improving
adherence to corporate vendor
compliance regulations
26%
Increasing supply chain efficiency
30%
TOP GOALS FOR MANAGING SUPPLIER BY ORGANISATIONS >$2BN
Drivers for 3rd party programs
Regulation or other external factors
Business change
Cost reduction
Risk incident
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Macro trends impacting vendor management technology
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Digitisation is changing business
models
• Airbnb, who own no accommodation, put up more that 30 millions guests this year;
• Uber, who own no cars, drives 3 million people every day
The cloud is mainstream
• Nearly a decade after it started as an internal project for a group of engineers, “Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating,” Jeffrey P. Bezos
Analytics for the masses
• Information is becoming a self-service commodity i.e. Qlik, Tableau, Domo, etc.
• (Domo, founded in 2010, just secured $450m in funding and is approaching $100m revenues.)
Artificial intelligence is
imminent
• Watson uses natural language processing and machine learning to reveal insights from large amounts of unstructured data – IBM are commercialising this capability now.
New comms. are social and
collaborative
• The previous generation of chat apps (i.e. skype) is giving way to a new breed of team tools such as Slack and Rocket.
• Block chain implications (central collaborative register of truth).
Supplier information strategy
Present Future
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Clients seek a central process for supplier management with decentralized ownership
Challenges
• Processes cannot be 100% harmonised, especially one as localised as supplier onboarding
• Onboarding requirements vary from Corporate, to specific Divisions, local needs and the nature of the supplier relationship
Division
Corporate
Local Organisations
USA
China
•Basic Due Diligence questionnaire (inc. Financial)
•Legal Documents – VAT registration, business
license
•Ensure compliance with corporate requirements.
•Assess the reputational risk of suppliers up-front, before commencing
business.
•Collect tax forms
•Data Privacy / Information Security
• Supplier Diversity
•Ensure compliance with regional standards for all suppliers delivering services in a particular commodity/country.
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In a typical client scenario, complexity is the key limiting factor
Client
Commercial Retail Investment
Am
eric
asEu
rop
eM
idd
le
East
Asi
a
Central procurement function activities• Master Data Management• Spend Management• Category Management• Contract Management• Compliance• Relationship, Risk, & Performance
Management• Etc.
Decentralized (local) and operational procurement activities
Non-procurement function activitiesMarketing•Agency Management•Payments/expense compliance
Information Technology•Information Security•Audits
Finance•Master Data Management
Compliance•Quality•Health & Safety•Data Privacy ERP ERP ERP
Supplier Onboarding | Master Data Management | Req2Pay | Contract Management | Relationship, Risk & Performance Management |etc.
Spend Cat. 1
Spend Cat. 2
Spend Cat. 3
Does not empower Corporate to: deliver vision and strategy deploy policies and standards define high level reporting standards
Does not enable Business Units to: apply business specific vision and
strategy implement business / industry specific
standards and policies define SOPs and implementation
guidelines for Corporate policies achieve more detailed business specific
relevant reporting standards retain direct line responsibility for local
performance
Does not support Local Country to: apply very detailed reporting needs transact daily with suppliers meet specific local legal requirements show content in local language
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Global, local and cross-functional variation
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Historic options clients use to solve their problem
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Large scale ERP consolidation Costly Slow Not agile for future
change
Global process harmonisation Costly Slow Leaves many
‘exceptions’
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HICX is a new solution with many benefits…
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Iasta
Bravo
Dynamics
JDE
N America, S America
OracleEurope
NAMET, RUB, Africa, N Asia,
SEAA
India, Sri Lanka,
Nepal
TungstenAsia
CoupaEurope
AribaAmericas
Payable Systems
BI Stack
Validation
Sourcing Tools
Tran
sact
ion
Dat
a
SAP
Global Vendor On-boarding Portal,
workflow & governance
Vendors
Sustainability
Data Capture and Validation
FTE Benefit: Fully integrated and automated global vendor on-
boarding portal removes need for manual data entry by MDM team
Data Visibility Benefit: Connect peripheral data
to vendor records.
Requestors/Procurement
ERP Systems
Supplier Engagement Benefit: Provide invoice visibility and data maintenance to vendors
Downstream Benefit: BI is now working on
accurate, validated data.
P2P Benefit: ERP vendor masters are clean and
accurate improving payables performance
Value Creation Benefit: Central and local supplier performance
management is enabled
Risk Benefit: All necessary due
diligence is mandatory
IT Benefit: Maintain ERP architecture
without costly change
Governance Benefit: Single global portal that
reflects local requirements
User Benefit: Connects all relevant systems to avoid duplicate effort
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With HICX, clients improve the full spectrum of 3rd party management
Mu
ltip
le le
gal a
nd
reg
ula
tory
req
uir
eme
nts
su
pp
ort
ed
Full
inte
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ion
to
lega
cy a
rch
itec
ture
, lo
w c
han
ge im
pac
t
Flex
ible
dat
a m
od
el w
ith
ro
bu
st d
ata
stan
dar
ds
Org
anis
atio
n m
od
el r
eplic
atio
n a
nd
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guag
es m
atch
ed
Glo
bal
/lo
cal u
ser
wo
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epo
rtin
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eed
s fu
lfill
ed
Complexity factors are no longer a barrier to progress
10
Phase outOn-boarding
Assessment
Development
Selection/request
Manage performance and innovation
Manage data and due diligence
Manage risk, ensure compliance
Manage portfolio volume
Manage new adds
Manage relationship
Documents & MetricsMaster Data
Match, merge, integrate
SyndicationMeta Data
Manage data
Reports, Dashboards,
BI
Users are empowered
to act
Data quality is mastered, maintained, & integrated
Processes are digitised
and automated
1
2
3
4
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Etc.
BvD
Modules that clients can select from
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Dow Jones
OracleSAP
D&B
Supplier Portal Comms Supplier
Discovery
Supplier Onboarding
Risk & Compliance
Management
SLA, Metrics Performance Management
Supplier Data Management
Document Management
Dashboards & ReportingMDM
Integration
MDM Match & Merge
3rd Party Data Integration
Contract Management
Contract Creation
Invoice Visibility
Problem Solver
Audit Management
Supplier Lifecycle
and Master Data Management
GoldenRecord
Sanctions Lists
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Why HICX are different to other SIM players
We started from an MDM base which makes us, and our capabilities, unique among our
competitors.
With Supplier Information Management the processes are complex, the data volumes are large, there
are many organisations, the business requirements change frequently, and organisations have existing
systems. You need to be able to collaborate in real-time.
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HICX proprietary integrationtoolkit enables the platformto quickly integrate withexternal data sources and/orapplications.
A completely adaptable andextendable data model, notdatabase dependent.
The ability to collaborate andenforce global standards, yetenable local flexibility.
Users empowered to defineand create highly interactivesupplier initiatives which areimmediately searchable andreportable.
Define metrics using any ofthe data within the systemwith our unique combinationof search, document capture,and extendable data model.
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HICX service proposition
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2. We Implement 1. We Design
Data GovernanceData policies, Business process Management
Current State and BenchmarkingTarget State Design and Strategy
Information ArchitectureIntegration and Reporting
Metadata, Master Data, Reference Data,Data Quality and Cleanse
Author, store, share, enrich, consume, archive.Due Diligence, Performance & Risk
Cross-functional oversight committee Global and Local Data Stewardship
3. We RunData cleanse & enrichment, User/Supplier support desk services, Supplier validation.
Key vision and strategic
considerations
Governance and functional ownership framework
Organisational model with roles and
responsibilities
Key processes for vendor data
lifecycle management
Data model and hierarchy structure
Application landscape
Enterprise Technology Managed Service Providers – managed suppliers across
customers to streamline processes and provide decision support & analytics. Established contract repository, document collection, & compliance.
Risk Management – centralized risk management processes for reputational risk (sustainability), health & safety, environmental and quality. Automated data collection, risk calculation, supplier segmentation and risk mitigation.
Supplier Lifecycle & Master Data Management– centralized master data management and lifecycle management processes; large volumes of suppliers and integrated to multiple ERP systems (10+ in all cases).
Supplier Master Data Strategy – establishing a blueprint for global vendor master data, add/change/delete process, vendor hierarchy structure, system map and integration approach to connect all data points for operational analytics.
Supplier Management Requirements – establishing business wide requirements across supply chain, strategic sourcing, quality assurance and group procurement to create a needs analysis and case for change.
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Typical program work streams
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Project Management
Process Design
Change Management
System
Data Migration
System Integration
Initiate project
Current state, Gap analysis
Source data quality analysis
Source analysis
Manage stage boundaries
Future state and Roadmap
Migration plan
Field mapping and governance
Configure application
Data cleanse
Feed connection
Factory and user testing
Data load
Data syndication
Transition to BAU team
Pilot
Close project
Cutover to BAU
Strategy OCM plan’sCommence
commsTrain Support
Design & Discovery
Build & Configure
Testing & Acceptance
Deploy SustainMobilisation
Bu
sin
ess
Tran
sfo
rmat
ion
Tech
no
logy
Tra
nsf
orm
atio
n
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Author
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Grant WatlingChief Customer Officer
Specialist in supplier management, master data management and analytics, working with Fortune 500 companies from consumer goods, defence, energy, and pharma sectors to improve their vision, strategy, governance, policies, organisation, processes, data, and systems.
Key skills include business transformation, multi-geographic team and programme management, client account management, and business partner development.
Grant is a guest lecturer at the University of Essex, has spoken at conferences across Europe and Asia, and writes on the topicsof:• Enterprise information management (EIM), Data Quality (DQ) and Master Data Management (MDM).• Supplier life cycle management (SLM) encompassing supplier relationship management (SRM), supplier information
management (SIM), supplier performance management (SPM).• Supplier innovation management and development.• Customer success and organisational excellence.
Contact:[email protected]+44 7974 223 063