Upload
others
View
7
Download
1
Embed Size (px)
Citation preview
A World Gone Digital
SAP Ariba
John McGurrinVice President – Procurement & Business Network
Global Summit Spring 2018Digital, Cognitive, Blockchain and IoT
John McGurrin – Vice President - SAP Business Networks
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Internal
Discussion Topics for Today
Digital
Transformation for
Procurement
Cognitive
Procurement
BlockChain
IoT
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
4 Reasons for Transforming Procurement…
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Internal
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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Internal
CPOs are navigating a changing environment…
• Fragmented supply base
• Volatile markets
• Intricate costing and
pricing structures
• Detailed specs and design
requirements
• Extensive supplier
qualification
• Many line items and pricing
variances
• Existing strategic supplier
relationships
• Supplier contingency plans
• Regulatory and environmental
requirements
Market complexity Category complexity Strategic constraints
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Internal
Transforming The Procurement Organization
Optimize evolving procurement model and deliver value
across a range of corporate goals
Risk, sustainability and brand | Value management and
reporting | Strategic partnership development | Supplier
performance management
Partner and “embed” with business teams to drive value beyond cost
savings
Category spend management | Supplier management | Contract
management | Innovation | Sourcing
Perform highly automated and autonomous activities to optimize
cost, accuracy and cycle time
Transactional procurement (order and invoice processing, goods
receipt, audits, tactical sourcing) | Master data management |
Analytics |Support
Shared
Centers Service
Business Unit
Procurement
Corporate
Procurement
World-class procurement
organizations have 22% lower labor
costs and 29% fewer FTEs2
60% of source-to-pay processes have
the potential to be fully or largely
automated, yielding up to 3.5% of
overall spend savings3
84% of procurement organizations
believe that digital transformation will
fundamentally change the way their
services are delivered over the next three
to five years4
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 8Customer
Digital Core
APIs
SECURITY
MACHINE LEARNING
BLOCKCHAIN
INDUSTRIES
Business
Transactions
Intelligent
Insights
Workforce
Management
Business
Networks
Customer
Experience
IoT
and Assets
Framework for Digital Business
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Internal
Emerging Technologies
9
Data transformed into powerful
insights to drive proactive strategy and
smarter actions
Step-change in productivity with
autonomous systems
These four technologies have the greatest potential impact on procurement
and together, will drive business innovation and customer value while
improving productivity.
AUTOMATION AND
MACHINE LEARNING
PREDICTIVE
ANALYTICSHUMAN ENGAGEMENT
& AUGMENTED SENSES
BLOCKCHAIN AND THE
INTERNET OF THINGS
Bridging the physical and digital
worlds for well-guided and faster
execution
Secure, transparent, and efficient
exchange of assets and value without
intermediaries
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Internal
Cognitive Capabilities – Insights and Intelligence
Intelligent Sourcing
BlockChain
Instant Contract Analyzer
Cognitive Buying Assistant
Intelligent Network
Use Cases for Cognitive Sourcing
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Internal
Cognitive Procurement - Throughout the Contract Continuum
11
Scan non-text contracts –convert to
contract clauses and sections
% match with reference to
template contracts
% match to specific
reference contracts
Contract CreationContract
Authoring
Contract
Negotiation/Award
Contract
Compliance
Predetermine clauses based on commodity,
region/legal regulatory needs
Recommend critical clauses
based on contracting
history
Analyze frequently modifiedclauses,
suggests library additions
Suggest missing sections,
clauses, sub clauses
Recommend the optimal team members to
engage
Minimizes risk exposure by
ongoing checks of document compliance
Extract executable
terms and link them to
compliance tracking and Performance
Assess terms and pricing
against benchmarks
Digital Assistant
Leverage machine learning to understand
relevant entities (e.g. news,
commodities, etc)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Internal
Cognitive Procurement - Throughout the Sourcing Continuum
12
Uncover pricing pressures and
demand trends for selected products
Recommendation of sourcing event
initiation based on trends
Environmental
Monitoring
Sourcing Event
Initiation
Sourcing
Execution
Recommend RFI/RFP/RFQ
event type based on
commodity type, region and
history.
Sourcing Intelligence provides buyers with the right knowledge to execute the right event at the right time, with the right suppliers, for
the right duration.
Assess results against
benchmark prices
Recommend number of
suppliers to engage based on commodity, history and for optimal results
Recommend duration of
sourcing event for optimal
results
Automatically populate
sourcing event data using
unstructured data
Guide selection of sourcing
template based on unstructured
data
Configure template search,
identification, and mapping
Award Recommend-
ations
Incorporate missing data into
the model
CONFIDENTIAL
Guide selection of sourcing template
Digital Assistant
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal
Blockchain – Trusted and secured transactions/processesUse Cases by Industry
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
Blockchain and IoT Across Procurement
Evaluation How-to:
▪ Your feedback drives
SIG Event content
▪ By signing and
submitting your
evaluation, you are
automatically entered
into a prize drawing
Why?
From the App
1. Select Sessions2. Select Day3. Select Session Keynote
Session Lunch4. Click on Clipboard Icon
How?
COMPLETE &
SUBMIT EVAL
Keynote Session Thursday Lunch
SAP Ariba
John McGurrin
Vice President - SAP Ariba Strategic Accounts
215.630.4285
Tweet: #SIGspring18
Download the App: sig.org/app
A World Gone Digital
Thoughtonomy
Have an idea or want to present?
If yes, please take a moment and submit your name and idea here:
www.sig.org/present