TheOutrageousCostof 'Free’& …. We#rely#solely# ... Adidas Case Study ##Agenda Forrester Insight...
Transcript of TheOutrageousCostof 'Free’& …. We#rely#solely# ... Adidas Case Study ##Agenda Forrester Insight...
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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.
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ERP Procurement The Outrageous Cost of 'Free’ When to Look Beyond Your ERP For Procurement
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Duncan Jones V.P., Principal Analyst Forrester
Tony Wessels V.P. Marketing Coupa
Christian Bader V.P. IT Adidas Group
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Coupa Overview
Today’s Agenda
Q & A
Forrester Insight
Adidas Case Study
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Coupa’s Mission
Delivering software innovation that breeds responsible spending while
impacting the company bottom line.
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Coupa’s Explosive Growth
180% Bookings
YOY
+95% Renewal Rate
YOY
150% PlaJorm Usage
YOY
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One World, One PlaJorm
10 Languages
40 Countries 100,000 Users
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Customers Highlights
Retail Finance Mfg. Health Care High Tech
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Spend OpPmizaPon
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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
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Introductions
Adidas Case Study
Agenda
Forrester Insight
Q & A
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Brute force alone won’t make people use your eProcurement system
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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
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The business case depends on you achieving four objectives
Project business
case
User adoption
Supplier adoption
Category coverage
Controls’ effectiveness
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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
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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
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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?
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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
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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
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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
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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
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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
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Thank you
Duncan Jones [email protected] http://www.forrester.com/Duncan-Jones
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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!
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Introductions
Adidas Case Study
Agenda
Forrester Insight
Q & A
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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
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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
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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
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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
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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
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A Q &