Sourcing and Procurement Excellence in the Networked Economy CA Technologies, Inc. Richard Lazarra Director IT Ariba, an SAP Company Sundar Kamak Vice-President, Solutions Marketing www.sig.org/eval
Sourcing and Procurement
Excellence in the Networked
Economy
CA Technologies, Inc.
Richard LazarraDirector IT
Ariba, an SAP Company
Sundar KamakVice-President, Solutions Marketing
www.sig.org/eval
Sourcing and Procurement Excellence in the Networked
Economy
Sundar Kamak, Vice-President, Solutions Marketing, Ariba, an SAP Company
Richard Lazarra, Director IT, CA Technologies, Inc.
Global Executive Summit | Huntington Beach, CA | Oct 28, 2015
© 2015 SAP AG. All rights reserved. 3
We are witnessing an unprecedented pace of change…
An emerging
middle class
growing to 5
billion
will strain already
diminishing
resources
1 billion
people in
social
networks
will rewire
business and
personal
boundaries
75 billion
connected
devices by
2020
will create a
universe of
intelligence
everywhere
Data doubling
every 18
months
will create new
opportunities
and risks for
value creation
New,
disruptive
business
models
will accelerate
change and
innovation
Millennial Class
will transform
customer
demands and the
workplace
75%+ of new
enterprise IT
spend
will be cloud-
based or hybrid
by 2016
© 2015 Ariba – an SAP company. All rights reserved. 4Public
Changing business environment increases pressure on
companies
Increasing Globalization
• Expansion into new markets
• Global process
standardization
• International supply chains
• Increased off/near shoring
Economic Volatility
• Volatility in markets
• Decreased stock valuation
• Slow economic growth
• High expense ratio
More Competition
• Pricing pressures
• New sources of competition
• Decreased budgets and
spending
Greater Risk
• Supply chain disruption
• Financial risk and fraud
• Commodity risk
Accelerating Technological
Change
• Changing business models
• Faster innovation cycles
• Expanding partnerships and
channels
• Leveraging big data for decisions
Regulatory Changes
• Increasing disclosure
requirements
• Country-specific regulations
• Industry-specific disclosures
© 2015 Ariba – an SAP company. All rights reserved. 5Public
Businesses can no longer afford the costs of collaboration
inefficiencies
Paper Based
Transactions
Leakage
Of Value
Too Many
Exceptions
Lack Of Visibility Into
Spend By Category
“15% of invoices
have exceptions
adding 6.6 days
to the cycle.”
- TAPN, 2010
“$4.6 million in
contract leakage
per billion in
spend on
average.”
- The Hackett Group,
2012
“50% of
prenegotiated
discounts are
never captured.”
- Aberdeen, 2012
“Companies are
losing $260 billions
each year due to a
pervasive inability to
organize and analyze
spend data.” Aberdeen, 2010
90% of companies
still use spreadsheets
application as their
primary analysis tool.
- Aberdeen, 2010
“Nearly 77% of all
incoming invoices
are still paper
based.”
- Aberdeen, 2012
“70% of payment
is still handled via
paper checks”
- 2013 AFP Electronic
Payments Survey
(1) Basex Research
Collaboration inefficiencies cost companies $650B (1)
annually
© 2015 Ariba – an SAP company. All rights reserved. 6Public
Business Networks simplify business collaboration
YOUR TRADING
PARTNERS
Business Networks
Discover
• New trading partners and
communities
• New staffing, contingent
labor or goods and services
• New business opportunities
Connect
• Trading partners anytime, anywhere
• Any device, back-end system and level of technical ability
Collaborate
• Comprehensive set of
inter-company
collaboration processes
• Any commerce category
and/or spend type
Gain Insights
• Unique analytics and
benchmarking data
• Real-time alerts and
notifications
• 3rd party data, risk and
insurance information
YOUR SYSTEMS
6© 2015 Ariba – an SAP company. All rights reserved.
Your
Company
© 2015 Ariba – an SAP company. All rights reserved. 7Public
And drive transformation in many areas . . . .
Product
Innovation
Market
Expansion
Working
Capital
Mgmt
CSR /
Regulatory
Compliance
© 2015 Ariba – an SAP company. All rights reserved. 8Public
Supply-side ValueBuy-side Value
Sourcing
Req to PO
Invoice
Process
Complianc
e
WCM &
Discount
3-9%
Process
Savings
$3-20
Savings/
Document
1-8%
Spend
Savings
Faster
Payment
AR Process
Processing
Orders
Sales &
Marketing
Increased
Revenue
15-75%
Time
Savings
15-75%
Process
Savings
5-32%
Revenue
Increase
Source: Ariba Value Engineering Account Engagements and Benchmarking Studies
Network Collaboration – Drives Buyer and Seller ValueDelivers measurable benefits to both sides of the equation
© 2015 Ariba – an SAP company. All rights reserved. 9Public
Ariba Connects You to the Digital Economy
BUYERS SUPPLIERS
COMPREHENSIVE
INTELLIGENT.
OPENGLOBAL
UNMATCHED
SERVICES
TRUSTED/
SECURE
.
PARTNERS
LOGISTICS
PROVIDERSFINANCIALSERVICES
© 2015 Ariba – an SAP company. All rights reserved. 10Public
SAP is building on 42+ years of heritage in solving internal company
problems by expanding into business-to-business collaboration
Across 25
INDUSTRIES
253,000
CUSTOMERS
40+ MILLION
On-premise users
74%
in 180
COUNTRIES
35+ MILLION
Cloud Users
2+ MILLION
Ecosystem
consultants
of the world business transactions
are processed by SAP
$USD 930B In annual
commerce
106+ MILLION
business documents
over 20,000 business
categories
1.8+ MILLION
companies world wide
Over $USD 14B investment by SAP
over the past 3 years
Over 76% of the Global 2000 use Ariba Business
Network
Sourcing and Procurement Excellence in the Networked EconomyRich Lazzara, Director IT, CA Technologies, Inc.
@rplazz
October 28, 2015
© 2015 Ariba – an SAP company. All rights reserved. 12Public
Topics
Background
Executive Challenges
Program Objectives
Key Decisions along the Ariba Journey
CA / Ariba Global Footprint
Benefits of Ariba
Lessons Learned
Q&A
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 13Public
Background
CA Technologies
$4.5B software company headquartered in New York
13,000 employees
SAP and Ariba are a strategic part of our IT ecosystem
SAP ECC / SRM Shop
Running “hybrid” SRM / Ariba Solution
Team Responsibilities
All Procurement functions plus Asset Management and Travel
Mobility and UX Improvement overall
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 14Public
Executive Challenges
Drive Innovation at CA Technologies
• Think like a “Chief Integration Officer”
• Build a trusting relationship between IT and the business by delivering
innovation
Improve the Procure-To-Pay user experience
• Provide a simple user interface for requisitioning goods and services
• Untether the work force for frequently requested tasks
Build a global footprint and scale to support worldwide operations
• Consistent, integrated solution builds adoption and reduces IT burden
• Automation shifts focus to exception processing - deliver more innovation
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 15Public
Program Objectives
More “Consumer Grade” User Interface
• Shopping and Catalog Management in the Cloud
• Offline email approval of Invoices and PO’s now, mobile apps coming
out
World-class procurement, contracts, spend analytics and
sourcing solutions
• Simplification of interactions with Suppliers
• Easily switch suppliers if desired
Access to a large population of Suppliers – the “Network”
• Enable business to focus on strategy vs. Supplier Enablement
• Opens up new sourcing opportunities
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 16Public
Key Decision Points Along the CA / Ariba Journey
Calendar 2014
SAP Asia Pacific
DecOctSepAugJulJunAprMarFebJan May Nov
Ariba Invoice Pro for North America
APC/PO in NA
• Project started late January
2014
• Project go-live July 21, 2014
• Included APC/PO as part of larger
SAP Rollout in APAC
• APC/PO Started January 2014
• Project go-live August 18, 2014
Ariba APC/PO for EMEA
Ariba Upstream
• Project started October
2014
• Project go-live March 2015
• CPO wanted to replace existing
3rd party tools
• ”Knock out of the box” approach
• Idea to contract in under 3
months
• Project started December 2014
• Project go-live June 17, 2015
CA Technologies
• Goal: Improve the Shopping UX
• AribaLive! May 2013 in DC
• Full PTP Business Case Created
• Scope Adjusted Down to APC/PO
• Project Approved
• JPM gives notice September 2013
• Project started in October 2013
• APC/PO go-live March 10, 2014
© 2015 Ariba – an SAP company. All rights reserved. 17Public
CA Technologies utilizes procurement cloud solutions globally
Cover end-to-end source-to-pay process through each spend category
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 18Public
The Case for Driving More Spend Through
Catalogs
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 19Public
Ariba Procurement Content / PO Automation
CA Technologies
Benefits
• Consumer-grade shopping experience
• Easily switch suppliers
• Reduced supplier-related catalog issues
• Reduced Shopping Cart to PO cycle time from 6 to 2.5 days
• Reduced turn-around time to enable a catalog from 6 weeks to under 2
weeks
• Gain benefit of compliance with company pre-negotiated products and
pricing
• Eliminate point-to-point handling of transmission of POs
• Single cXML format interface for all purchase orders
© 2015 Ariba – an SAP company. All rights reserved. 20Public
Ariba Invoice Professional
Key Benefits
• No loss of functionality
• Foundation for a global procure-to-pay process
• Offline invoice approval
• Integrated procure-to-pay process
• High level of automation
• Lower error rate
• Achieved 92% electronic invoice submission rate in just six
months
• Compared to 86% JPM XIGN after 3+ years
2
0
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 21Public
Ariba Collaborative Sourcing Solutions
Key Benefits
• Integrated data across sourcing, contracting, spend and supplier
• Increased spend visibility and analytics
• Cost neutral to replace existing solutions with Ariba upstream
modules
• Reduced cycle time for contracting
• Document repository to support compliance with FATCA
• Suppliers now provide W8/W9 forms as part of the Registration Process
• Allowed for process improvements globally
• Introduction of the Supplier Risk Program (SRP) on a global basis
• A new Self-Service Supplier Registration Portal globally
• “Strategic” Sourcing
Sourcing, Contract Management, Spend Visibility Supplier Information & Performance Mgmt.
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 22Public
Spend Visibility
Data Collection
• Data from backend SAP systems (PO’s and Invoices), plus legacy data
• Master data also needed
• Commodity Codes and Currency Exchange Rates from ECC
• Supplier, Cost Center and WBS information (some PO’s have WBS vs.
CC)
– Matching takes place between PO and Invoice – non-PO data is identified
Functionality
• Category groupings allow summary rollup view and drill down
• Pivot, Graph and Dashboard capabilities right in the platform
• Category cleanup is a work in progress
Best Practice – Get the data right before putting automation in place
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 23Public
Spend Visibility
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 24Public
Spend Visibility
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 25Public
Spend Visibility
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 26Public
Spend Visibility
CA Technologies
© 2015 Ariba – an SAP company. All rights reserved. 27Public
Lessons Learned
CA Technologies
Lesson / Suggestion Reason / Recommendation
Keep shoppers within the APC
Cloud
Punching out from APC to supplier site adds steps and reduces
functionality
Use ACS – Ariba Consulting
Services
Ensure Lead and product expert are the right fit for your organization
and project
Do complete PTP implementation
if possible
Staggered approach of APC/PO then Invoice-Pro caused rework
Start with Upstream before doing
Downstream modules if possible
Doing Downstream first led to technical complexity for onboarding
suppliers
Deployment Descriptions are
good, but…
If doing multiple modules at once or multiple regions, add time to the
plan
Strong partnerships are key –
With SAP and your business
partner
Worked with Chief Customer Office to escalate and expedite when
needed. Must have close relationship with business, co-locate if
needed
© 2015 Ariba – an SAP company. All rights reserved. 28Public
Thank you
Contact information:
Sundar Kamak
Global Vice President – Solutions Marketing
Ariba, an SAP Company
Email: [email protected]
Q&AContact information:
Richard Lazzara
Director, Information Technology CA Technologies |
One CA Plaza | Islandia, NY 11749 Email:
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Sourcing and Procurement Excellence in the Networked
Economy
www.sig.org/eval
Sundar KamakGlobal Vice President –
Solutions Marketing
Ariba, an SAP [email protected]
Richard Lazzara
Director, Information TechnologyCA Technologies [email protected]