business commerce innovation [boston]
DESCRIPTION
Get an analyst's perspective on the impacts they're seeing from business networks today. Whether seeking sources for spot buy opportunities, identifying and satisfying staffing needs, developing new ways to facilitate payments, or better managing supply chain and business risks, Andrew Bartolini and Chris Dwyer will explore the benefits they're seeing for the clients they work closely with and share their vision on where this may lead us in the future. Andrew Bartolini, Chief Research Officer, Ardent Partners and Chris Dwyer, Research Director, Ardent Partners - Ariba Commerce Summit Boston 2014TRANSCRIPT
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Commerce Innovation: 2014
Andrew Bartolini, Chief Research Officer
Christopher J. Dwyer, Research Director
Ardent Partners
October 2, 2014
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CO-PRESENTERS
Copyright © 2014 - Ardent Partners Ltd.
Andrew Bartolini
Chief Research Officer
Ardent Partners
Christopher J. Dwyer
Research Director
Ardent Partners
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AGENDA
Introduction
Commerce Innovation
Convergence on the Network
Copyright © 2014 - Ardent Partners Ltd.
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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
Copyright © 2014 - Ardent Partners Ltd.
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CPO Rising: The site for
CPOs and other supply
management executives
www.cporising.com
ARDENT’S NETWORK OF SITES
Copyright © 2014 - Ardent Partners Ltd.
Payables Place: Global
source for ePayables news,
research, & analysis
www.payablesplace.com
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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.)
Spend
Analysis eSourcing
Contract
Management eProcurement ePayables
Copyright © 2014 - Ardent Partners Ltd.
Procurement Outsourcing
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COMMERCE INNOVATION
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WHAT IS BUSINESS COMMERCE?
Commercial Cards
Supply Risk & Supplier Information/Performance Management
Contingent Workforce Management
Other Complex Categories (T&E , Meetings and Events, Print, etc.)
Spend
Analysis eSourcing
Contract
Management eProcurement ePayables
Copyright © 2014 - Ardent Partners Ltd.
Procurement Outsourcing
9 Copyright © 2014 - Ardent Partners Ltd.
WHAT IS BUSINESS COMMERCE?
BUY PAY MANAGE
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BUSINESS COMMERCE INNOVATION
Copyright © 2014 - Ardent Partners Ltd.
BUY PAY MANAGE
22%
4%
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
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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
Copyright © 2014 - Ardent Partners Ltd.
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TOP CPO PRIORITIES (NEXT THREE YEARS)
Copyright © 2014 - Ardent Partners Ltd.
©Ardent Partners - 2014
Innovation
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TOP STRATEGIES FOR SOURCING TEAMS IN 2014
Copyright © 2014 - Ardent Partners Ltd.
55%
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 and
processes
© Ardent Partners - 2014
Collaboration
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THE CPO ROLE IN 2014
Purchasing
Sourcing
Cash Risk
Innovation
Sales M&A New
Products
New Markets
Joint
Ventures
Travel
Outsourcing
Contingent
Workers
Trusted Advisor / Influencer / Special Projects
Accounts
Payable
Copyright © 2014 - Ardent Partners Ltd.
Convergence
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BUSINESS COMMERCE INNOVATION
Copyright © 2014 - Ardent Partners Ltd.
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
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AP’S TOP PRIORITIES IN 2014
Copyright © 2014 - Ardent Partners Ltd.
23%
25%
27%
31%
37%
63%
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
© Ardent Partners - 2014
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THAT PERSISTENT PAPER PROBLEM
Copyright © 2014- Ardent Partners Ltd.
70%
30%
Manual Electronic
© Ardent Partners - 2014
Invoice Formats Payment Formats
44% 56%
Manual Electronic
© Ardent Partners - 2014
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THE BENEFITS OF ELECTRONIC PAYMENTS
24% of all AP groups report
increased accuracy and control
of payment delivery
24% 45% 51%
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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
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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%
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BUSINESS COMMERCE INNOVATION
Copyright © 2014 - Ardent Partners Ltd.
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
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CURRENT CONTINGENT WORKFORCE CHALLENGES
Copyright © 2014 - Ardent Partners Ltd.
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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
Copyright © 2014- Ardent Partners Ltd.
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Traditional Complex Independent Contractors
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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
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THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT
Copyright © 2014 - Ardent Partners Ltd.
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CONVERGENCE ON THE NETWORK
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THE EVOLUTION OF TALENT SOURCES
Copyright © 2014 - Ardent Partners Ltd.
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BUSINESS NETWORKS’ IMPACT ON TRANSACTIONS
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BUSINESS NETWORKS’ IMPACT ON SUPPLIER
COMMUNICATION / COLLABORATION
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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
Copyright © 2014- Ardent Partners Ltd.
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For more information please visit:
www.ardentpartners.com
THANK YOU!
Andrew Bartolini
Managing Partner &
Chief Research Officer
617.752.1620
@andrewbartolini
Contact Info: Ardent’s Media Sites:
Copyright© 2014 - Ardent Partners Ltd.
Christopher J. Dwyer
Research Director &
VP, Operations
617.752.1624
@cjd_ardent