business commerce innovation [chicago]

Buy, Pay, Manage: The Future of Business

Commerce

Andrew Bartolini, Chief Research Officer

Ardent Partners

October 14, 2014

Chief Research Officer, Ardent Partners

Publisher, CPO Rising – www.cporising.com

Summary

Recognized expert in AP, sourcing, procurement, and supply management

Named a “Pro to Know” by Supply and Demand Chain Executive three times

Former VP of Global Supply Mgmt. research at Aberdeen Group; Benchmarked

thousands of enterprises across all facets of their supply management operations

Experience

Leadership roles in sales, marketing, and services at Ariba and Commerce One. Rich experience in strategic sourcing, business process transformation, and software implementation. Background also includes consulting and investment banking.

Education

MBA – Indiana University

BA – College of the Holy Cross

ANDREW BARTOLINI

AGENDA

Introduction

Buy, Pay, Manage: The Future of Business

Commerce

Convergence on the Network

Ardent Partners is a research and advisory firm

focused on defining and advancing the supply

management strategies, processes, and

technologies that drive business value and

accelerate organizational transformation within the

enterprise.

ARDENT PARTNERS

CPO Rising: The site for CPOs and

other supply management executives

www.cporising.com

ARDENT’S NETWORK OF SITES

Payables Place: Global source for

ePayables news, research, & analysis

www.payablesplace.com

ARDENT’S’ RESEARCH COVERAGE:

SUPPLY MANAGEMENT

Commercial Cards

Supply Risk & Supplier Information/Performance Management

Contingent Workforce Management

Other Complex Categories (T&E , Meetings and Events, Print, etc.)

Analysis eSourcing Contract

Management eProcurement ePayables

Procurement Outsourcing

BUY, PAY, MANAGE: THE FUTURE OF BUSINESS

COMMERCE

WHAT IS BUSINESS COMMERCE?

BUY PAY MANAGE

BUSINESS COMMERCE INNOVATION

BUY PAY MANAGE

2006 2011

Motorola Market Share: Mobile Phones

Key Takeaways:

Joy’s Law: “Innovation will happen, and it

will happen elsewhere.”

Innovation extends to all supply markets

A ‘static “supply base is now a red flag

No company can risk going it alone

Increasing reliance on suppliers

Suppliers are partners assets

CPO’S AGENDA: THEN AND NOW

CPO View 2009

"There has been a change in context, speed, and risk. It's

time for procurement to be the hero.“

Christina DeLuca

CPO - BP

CPO View 2014

"The minute you get complacent, people will

begin to offer other opinions. You must stay

sharp.“

Chris Shanahan

CPO - BD

TOP CPO PRIORITIES (NEXT THREE YEARS)

Innovation ©Ardent Partners - 2014

TOP STRATEGIES FOR SOURCING TEAMS IN 2014

47% 42%

32% 31% 31%

Improvecollaborationwith business

Improvecollaborationwith suppliers

Improve use oftechnology (buynew systems /

improve currentones)

Implementstronger

policies andprocesses

Improvecollaborationwith the CFO

and otherexecutives

Optimize currentsystems andprocesses

Collaboration

THE CPO ROLE IN 2014

Purchasing

Sourcing

Cash Risk

Innovation Sales

M&A New

Products New Markets

Ventures Travel

Outsourcing

Contingent

Workers

Trusted Advisor / Influencer / Special Projects

Accounts

Payable

Convergence

BUY PAY MANAGE

Key Takeaways:

No company wants to “slow the line”

ePayments are easier

ePayments are cheaper

ePayments are more accurate

ePayments are more secure

AP’S TOP PRIORITIES IN 2014

Generate discounts on spend

Better link P2P processes and systems

Improve collaboration/communication withprocurement

Improve visibility into invoice and paymentdata

Improve reporting and analytics around AP

Reduce processing costs

THAT PERSISTENT PAPER PROBLEM

Manual Electronic

Invoice Formats Payment Formats

44% 56%

Manual Electronic

THE BENEFITS OF ELECTRONIC PAYMENTS 24% of all AP groups report

increased accuracy and control of

payment delivery

24% 45% 51%

45% of AP groups say that

electronic payments enable more

efficient and streamlined

processing (e.g., review, approval,

execution).

51% of enterprises rate cost

savings as the top benefit seen

from electronic payments

Greater

involvement in

working capital

optimization

Skill set

required within

AP will change

Stronger AP &

Procurement

partnership

AP process will

be largely

automated

AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3 YEARS)

83% 69% 66% 57%

BUY PAY MANAGE

Job Stats

4.4 years = Average job

tenure in US (US Dept. of Labor - 2014)

91% of Millenials expected

to stay at current job less

than 3 years

Key Takeaways:

The “rules of employment” have changed

Work will continue to migrate to where it can

best be done

Geography will not be a talent constraint

Job hopping is now a trend

Outside talent can offer great value and agility

There is a talent war

New strategies and approaches are needed

CURRENT CONTINGENT WORKFORCE CHALLENGES

THE EVOLVING CONTINGENT WORKFORCE

Ardent Partners predicts that the average contingent workforce will rise by

30% over the next three years

92% of enterprises cite non-traditional talent as a moderate-to-vital aspect of

their overall corporate strategy

The “war for talent” now outweighs “cost savings” as the top driver of

contingent workforce management

Traditional Complex Independent Contractors

Comprised of SOW-

based projects and

services

Purpose: Unique

talents and

expertise

Freelancers,

consultants and

contractors

Purpose: High-level

talent and

specialized skillsets

“Temps” sourced

via staffing

suppliers and

agencies

Purpose: Low-to-

mid-level talent

ARDENT PARTNERS CWM FRAMEWORK

THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT

CONVERGENCE ON THE NETWORK

THE EVOLUTION OF TALENT SOURCES

BUSINESS NETWORKS’ IMPACT ON TRANSACTIONS

BUSINESS NETWORKS’ IMPACT ON SUPPLIER

COMMUNICATION / COLLABORATION

THE NEW “COMMERCE” DYNAMIC

Speed and complexity continue to accelerate

Compliance, control, efficiency are table stakes

This is the “Age of Innovation and Collaboration“

Winners will be the agile organizations that can tap into expertise and

find value wherever it exists in the market

Selecting the right partners and platforms has never been more

important

For more information please visit: www.ardentpartners.com

THANK YOU!

Contact Info: Ardent’s Network

of Sites :

Andrew Bartolini

Managing Partner &

Chief Research Officer

617.752.1620

abartolini@ardentpartners.com

@andrewbartolini

business commerce innovation [chicago]

Business

electronic commerce and organizational innovation: aspects...

mobile innovation & the next step in multichannel commerce

chicago center overview and guide - accenture.com€¦ ·...

the state of pharmaceutical innovation - science ·...

postal product innovation and new opportunities for postal...

mobile payments - how payments spark innovation for...

to: office of innovation and incubation chicago...

itu-trcsl training on icts for promoting innovation ... ·...

innovation in history chicago dominic a. pacyga, ph.d....

preview the second thinkubator innovation meeting space in...

business commerce innovation [boston]

mit innovation & creativity in e-commerce - maandag 28...

the application of dynamic capabilities in e-commerce...

business commerce innovation [new york city]

innovation frontiers for agriculture-nutrition linkages,...

determining market need (university of chicago ccist...

innovation technologique - tradedoubler - e commerce 2010

chicago region october 15, 2014 workforce innovation and...

m-commerce innovation sample deck

payment innovation in europe - world...