Hicx briefing (nov16)

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Briefing on HICX Solutions

November, 2016



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



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



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

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asEu

rop

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idd

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East

Asi

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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



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’



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



With HICX, clients improve the full spectrum of 3rd party management

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Complexity factors are no longer a barrier to progress

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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



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



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.



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.



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

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Tran

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Tech

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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

Hicx briefing (nov16)

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