Leveraging SaaS as Part of a Technology-led Procurement Transformation Jesse Hanger, Specialist...
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Transcript of Leveraging SaaS as Part of a Technology-led Procurement Transformation Jesse Hanger, Specialist...
Leveraging SaaS as Part of aTechnology-led Procurement Transformation
Jesse Hanger, Specialist Master
Sean Rhoades, Senior Consultant
September 29, 2014
Soft·ware·as·a·Ser·vice (SaaS) (/sæs/ or /sɑːs/)
a licensing and delivery model in which software is centrally hosted and licensed on a subscription basis
trans·for·ma·tion (/tɹæns.fɔɹ.meɪ.ʃən/)
a thorough or dramatic change in form or appearance, especially one for the better
Deloitte has identified several trends within the marketplacedirectly related to procurement technology
Contract ComplianceMinimize rogue contracting through efficient management and tracking of contracts through a central repository including full-scale template driven authoring
User AdoptionFocus on the end user experience to reduce or eliminate resistance to change
Single Global InstanceUnlock new opportunities by creating a single global instance and installing standardized process and building in regional requirements
Mobile DevicesDevelop a strategy encompassing workforce mobility, ideally it improves usability
Touchless ProcurementContinue focus on reducing total number of touches, and eliminating physical touches
Extended Supplier Relationship ManagementOptimize relationships with trading partners and manage performance, compliance, and information flow
Increased use of AnalyticsBuild the right internal capabilities to leverage the power of analytics to track savings and enhance reporting effectiveness
Supplier Self Service / Supplier NetworkConnect suppliers through self service and allowing collaboration and automation through transactions across a network or portal
Category Specific SolutionsTo fully address spend, leading organizations are configuring solutions by category
Cloud SolutionsLicense based, cloud solutions that require less maintenance and shorter deployment timeframes
3 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Procurement organizations are facing challengeswith common themes emerging from the CPO community.
“We know we need to invest in procurement technology, but
we don't know where to invest to get maximum benefit fast"
Operating Model Enablement
Productivity"Our Procurement organisation is already stretched, but being
asked to increase savings further"
Collaboration and Innovation
“Procurement must get under the skin of what the business
needs by being able to ask the right questions."
Benefits Realization and Control
“We need to ensure that hard negotiated savings are realized
within a complex global environment”
Sources: 1) The Deloitte Global CPO Survey 2013 2) Gartner "Establish a Savings Management Process to Drive Procurement's Financial Performance", 2013.
91%of top performing CPOs place high/very-high importance on savings management2
70%of CPOs plan to invest in technology in 20141
77%of organizations are already working in cross functional teams1
79%of CPOs see cost reduction as a top priority1
4 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Chasing trends is not the answer, organizations need to unify technology and leading trends to solve tomorrow’s challengesWe identified six pillars to focus your procurement strategy and approach to combat procurement challenges.
Operating Model Enablement
Benefits Realization and Control
Collaboration and Innovation
Productivity
PROCUREMENT 2.0
On-lineCollaboration
MobileWorking
SocialNetworking
EmbeddedAnalytics
CloudDeployment
UsabilityPrioritized
5 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Common Themes from CPOs
Most organizations are choosing a solution involving the cloud
Hybrid solutions, with On-Premise ERP complimented by SaaS solutions, continue to be a path of choice for a growing percentage of companies.
41% Percent of organizations complement or plan to complement their ERP systems with SaaS solutions2
When considering SaaS Procurement Software, 66% will either complement or replace On- Premise with SaaS (up from 54% in 2013) 2
90% of new Procurement Applications deals involve cloud solutions1
Sources: 1) Gartner "The Top Four Impacts of Cloud Computing on Procurement Applications". 2) Forrester "Application Adoption Trends: The Rise Of SaaS".
6 Copyright © 2014 Deloitte Development LLC. All rights reserved.
On-Premise versus SaaS / Cloud is not an either-or decisionHybrid solutions allow organizations to take advantage of SaaS solutions while still maintaining best-of-breed vendors.
Hybrid Solutions• Contains SaaS and On-Premise modules or solutions• Allows for shorten deployment timeframes across the
enterprise• Increases ability to scale and expand scope• Leverages pre-built integrations and APIs
• Allows organizations to strategically select modules to deploy early
• Ability to use system internally or externally• Handles complex goods and services• Increases flexibility and speed to value
7 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Procurement
Financials PurchasingSupplier
Management
Sourcing Contracts
SaaS
On-Premise
Illustrative Hybrid Solution
Reducing complexity is one key to overcoming challenges. Top organizations utilize 80% fewer platforms and 37% fewer applications.
Systems of InnovationQuickly adopt new concepts
Systems of DifferentiationOrganization or Industry
unique processes, dynamic
Systems of RecordCore processes, follow common standards, common approaches
Best-of-vendor and best-of-breed strategies should be combinedDeveloping a Pace-Layer strategy helps to identify which systems should be part of an application suite, and which systems should be integrated with an application suite.
Workforce Social Media
Innovation / Project Management
Predictive Analytics
Custom developed applications
eSourcing / eProcurement
Extended Supplier Relationship Management
Inventory Management
Core Financials
Manufacturing
8 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Illustrative Breakdown of Systems by Layer
Regular strategy reviews help identify when systems migrate between layers.
Procurement Transformation ConsiderationsThings to consider when deploying procurement technologies.
Cost Model
Number of Integrations
Deployment Timeline
Scalability
Number of Customizations
9 Copyright © 2014 Deloitte Development LLC. All rights reserved.
10
Key concepts when considering a SaaS strategy
SaaS / Procurement PlaybookMaximizing the value of SaaS solutions requires different priorities than traditional procurement initiatives and technologies.
Strategy
Approach
Deployment
Sustainment
• Strategy: Layering = Flexibility
‒ Accelerated timeline requires different communication approach
‒ Focus on the business case and communicate benefits
• Approach: Stay agile!
‒ Use an iterative approach to design sessions
‒ Integrations require concurrent design, build and test phases
• Deployment: User adoption is #1
‒ Create challenge sessions to limit customizations / integrations
‒ Increase your testers and super users
• Sustainment: Singles win games
‒ Promote early success and benefits
‒ Leverage support services
11 Copyright © 2014 Deloitte Development LLC. All rights reserved.
Questionsand Answers