Building the Next-Level Procurement Capabilities for the Digital Age

Sammy Rashed,

Principal at SRCD, Co-founder The

Beyond Group AG

Dr. Theofanis Zoumis, Head of Procurement -

Data, Systems & Processes, Linde AG

Anders Lillevik, Global Head of

Procurement Support Services, QBE

Insurance

Abdullatif Albastaki, Senior Vice President (Head, Retail

Infrastructure and Automated Banking Services Retail Banking &

Wealth Management), Emirates NBD

Building the next-level

Procurement Capabilities

for the Digital Age

Sammy Rashed

Prague,

June 2018

3

Background

Agility and Efficiency at the heart of Procurement

Next-level skills for Procurement

Defining and deploying the Digital Roadmap

Panel discussion

4

Personal Background Nearly three decades transforming and leading global organizations

5 6 12

1990 1995

7 8 3 8

Centralization &

Re-engineering

Global Category

Management

Demand Management Offshoring &

Outsourcing

Integrated Productivity &

Business Services

2000 2005 2010 2013

Beyond

Procurement

Next-level Productivity

Get the

buy right

GILES BREAULT

SAMMY RASHED

5

Research & Publications

Through our global Academic network with leading institutions, seek to understand, evaluate, publish, and present findings related to top options

by industry & geography on how Procurement can help businesses drive greater company-wide productivity

Advisory

Work with few companies at Sr. Exec. Level to

develop & deploy next-level productivity strategy

Transformation blueprint to grow organizational

readiness and Procurement capabilities

Intense, pragmatic and output-focused, drawing

from experience, practice & research

Centered around personal relationships, and

guidance / coaching

Think Tanks

Gathering small groups of Procurement

executives (12-15) in a single industrial sector

Balanced group of peers, thought leaders,

practitioners, academicians and advisors

Three 1-day sessions to Assess, Analyze, and

Solve a key question facing industry

Aim to share innovative content, develop

concrete solutions, and build a close community

Learning Conferences

Standard or tailored-content programs covering

both strategy and implementation

Open enrolment (100–150 pers.) or in-house

(~25 pers.) learning conferences

Topics include: Business Partnering, Better-

Selling to Pharma, Productivity, and LEAN for

Procurement

Executive Coaching for high-caliber talent

Our Offer ing Strategy & guidance for break-through results in cost optimization

6

Productivity Think Tank

2018 EU series: Deploying the Digital Roadmap

Members

Partners

Small group of invited sr. business leaders from Procurement

Participants from leading companies in Pharma, FMCG, and other industries

Series of three 1 ½ - day workshops focusing on lead question:

Se

rie

s

Con

trib

uto

rs

Aca

de

mia

“Deploying the Digital Roadmap”

Pa

rtn

ers

7

Background

Agility and Efficiency at the heart of Procurement

Next-level skills for Procurement

Defining and deploying the Digital Roadmap

Panel discussion

8

1. Customer Centricity: link Agility to Digital Business Model (e.g. customer journey)

2. Intelligence & network: constantly keep up with wider external trends and

manage internal/external communities

3. Risk Management: not only focus on how can we leverage digital but understand

the wider risk environment and what could go wrong

What Procurement needs to master Agility

Key considerations (transcripts from breakout)

ANTICIPATION RESPONSIVENESS

ANALYTICS COLLABORATION

1. Keep Spare capacity (e.g. operate at 80% level) + be able to shift / reassign workload

(e.g. free up an extra 20%)

2. Output-focused KPIs, as Procurement’s tend to be over-narrowly defined

3. Don’t ask for permission to align on important & shifting

priorities

1. Systems: Accurately capture data and access it in fast and

mobile friendly way

2. Business Partnering: higher understanding to identify which

relevant info / data is needed and deliver useful & actionable insights

3. Data Management: ability to leverage Big Data and Predictive Analytics to

obtain insights not previously possible

1. Connector: tie external capabilities to customer needs

2. Abundance mentality: move away from win-lose solutions

and adopt value co-creation mindset

3. Fearless leading: do less policing and “act as your own CEO”, focusing on

potential gains

9

Background

Agility and Efficiency at the heart of Procurement

Next-level skills for Procurement

Defining and deploying the Digital Roadmap

Panel discussion

10

Our CPO of the future model needs to be supercharged “You must lead with your head, heart, hands… and guts”

Heart

Wants value for all partners

Perceived as principled and trustworthy

Provide enhanced stakeholder experience

Hands

Credible Experience

Finance and Legal Knowledge

Drive Operational Efficiency

Guts!

Strong Advocate

Unafraid of manageable risks

Manages Conflicts

Don’t ask for permission

Make better decisions with data insights

Head

Understands the totality of the

business

CEO of own business

Align with Digital Strategy

11

Background

Agility and Efficiency at the heart of Procurement

Next-level skills for Procurement

Defining and deploying the Digital Roadmap

Panel discussion

12

Digital Transformation is ____________

Transcripts from Think Tank flipchart

Essential ✔✔

A way, not a goal

A growth engine (for business)

About embedding technologies in

functions

An opportunity & a threat

Getting the system to work for you (and

not vice-versa)

Changing the way we work

”Digital transformation is a journey without a destination”

• Each company must start small

• Acquire the necessary skills and knowledge

• Continue to innovate and refine the goal

Now

Better way of communication (int/ext)

Coming

An (untapped) opportunity✔✔✔

Enabling the organization

transformation

A key enabler ✔✔

Need for speed & efficiency

Enabling agility

13

Building our Digital Roadmap

Progressive flow of digital enablement

What should we do? - Automating decision

What will happen? - anticipating

Why did it happen? - understanding

What happened? - reporting Descriptive

Smart Workflows /

RPA

Diagnostic

Strategic Imperatives

Digital Enablement

Burning Platform

OPERATIONS INSIGHTS

Predictive

Prescriptive Cognitive / AI

4

3

1

2

4

3

1

2

Individual

/automation

Enterprise /

Functional

Automation System / software enabled - tech as common platform

Algorithm enabled - tech as an admin

Machine learning - tech as a consultant

Individual enabled - tech as time hack

a

b

c

d

14

CAPABILITIES STRATEGY

SYSTEMS & PROCESS

ORGANIZATION & ECOSYSTEM

A structured flow and target output Bui ld ing b locks for 2018 EU PTT

What Procurement

will look like

Aligning with

company Digital plan

Changes in future

roles

Acquiring new

Competencies

Decision making Digital readiness Foundation & advanced

technologies

Apply

in GBS

Environment

Integrate in

organization roll-out

Build collaboration

platform

Manage the

wider ecosystem

Digital “puzzle

pieces”

DEPLOYMENT

1 2 3 4

8 7 6 5

9 10 11 12

DA

Y 1

D

AY

2

DA

Y 3

15

Looking forward

“We always overestimate the change that will occur in

the next two years, and underestimate the change that

will occur in the next 10. Don’t let yourself be lulled into

inaction.”

- Bill Gates (The Road Ahead, 1995)

16

Background

Agility and Efficiency at the heart of Procurement

Next-level skills for Procurement

Defining and deploying the Digital Roadmap

Panel discussion

17

Our expert Procurement panel Diverse backgrounds covering a wide range of activities

Anders Lillevik

QBE Insurance

Global Head of

Procurement Support

Services

Dr. Theofanis Zoumis

Linde AG

Head of Procurement, Data,

S&P

Abdullatif Albastaki

Emirates NBD

SVP (Head, Retail Infrastructure

and Automated Bank Services)

18

Why Digital? What’s different now

then before?

Question 1

19

Question 2

In order to prepare for

digitalization, what should

we Stop doing, and

should we Start to do?

20

Question 3

What Capabilities do you

think are required for each

element of the roadmap:

1- Operational efficiency,

2- Data insights

21

Question 4

Does Procurement have the

talent needed to drive

Digital? If not, how do we

develop them?

22

Question 5

What are your biggest

challenge today regarding the

creation of a digital transformation

program

23

Question 6

Is s-Sourcing a key part of the digital

solution?

• How can it improve sourcing capabilities

on indirect spend?

• How it affects supplier relationship, since

focus is on competitive bidding?