business commerce innovation [new york city]
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 New York City 2014TRANSCRIPT
1
Buy, Pay, Manage: The Future of Business
Commerce
Andrew Bartolini, Chief Research Officer
Christopher J. Dwyer, Research Director
Ardent Partners
October 7, 2014
2
CO-PRESENTERS
Copyright © 2014 - Ardent Partners Ltd.
Andrew Bartolini
Chief Research Officer
Ardent Partners
Christopher J. Dwyer
Research Director
Ardent Partners
3
AGENDA
Introduction
Buy, Pay, Manage: The Future of Business
Commerce
Convergence on the Network
Copyright © 2014 - Ardent Partners Ltd.
4
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.
5
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
6
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
7
BUY, PAY, MANAGE: THE FUTURE OF BUSINESS
COMMERCE
8 Copyright © 2014 - Ardent Partners Ltd.
WHAT IS BUSINESS COMMERCE?
BUY PAY MANAGE
9
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
10
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.
11
TOP CPO PRIORITIES (NEXT THREE YEARS)
Copyright © 2014 - Ardent Partners Ltd.
Innovation
©Ardent Partners - 2014
12
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
13
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
14
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
15
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
16
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
17
THE BENEFITS OF ELECTRONIC PAYMENTS
24% of all AP groups report
increased accuracy and
control of payment delivery
24% 45% 51%
17
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
18 18
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%
19
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
20
CURRENT CONTINGENT WORKFORCE CHALLENGES
Copyright © 2014 - Ardent Partners Ltd.
21
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.
22
Traditional Complex Independent Contractors
Copyright © 2014 - Ardent Partners Ltd.
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
23
THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT
Copyright © 2014 - Ardent Partners Ltd.
24
CONVERGENCE ON THE NETWORK
25
THE EVOLUTION OF TALENT SOURCES
Copyright © 2014 - Ardent Partners Ltd.
26
BUSINESS NETWORKS’ IMPACT ON
TRANSACTIONS
27
BUSINESS NETWORKS’ IMPACT ON SUPPLIER
COMMUNICATION / COLLABORATION
28
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.
29
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
30
Buy, Pay, Manage: The Future of Business
Commerce
Andrew Bartolini, Chief Research Officer
Christopher J. Dwyer, Research Director
Ardent Partners
October 7, 2014
31
CO-PRESENTERS
Copyright © 2014 - Ardent Partners Ltd.
Andrew Bartolini
Chief Research Officer
Ardent Partners
Christopher J. Dwyer
Research Director
Ardent Partners
32
AGENDA
Introduction
Buy, Pay, Manage: The Future of Business
Commerce
Convergence on the Network
Copyright © 2014 - Ardent Partners Ltd.
33
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.
34
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
35
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
36
BUY, PAY, MANAGE: THE FUTURE OF BUSINESS
COMMERCE
37 Copyright © 2014 - Ardent Partners Ltd.
WHAT IS BUSINESS COMMERCE?
BUY PAY MANAGE
38
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
39
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.
40
TOP CPO PRIORITIES (NEXT THREE YEARS)
Copyright © 2014 - Ardent Partners Ltd.
Innovation
©Ardent Partners - 2014
41
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
42
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
43
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
44
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
45
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
46
THE BENEFITS OF ELECTRONIC PAYMENTS
24% of all AP groups report
increased accuracy and control
of payment delivery
24% 45% 51%
46
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
47 47
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%
48
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
49
CURRENT CONTINGENT WORKFORCE CHALLENGES
Copyright © 2014 - Ardent Partners Ltd.
50
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.
51
Traditional Complex Independent Contractors
Copyright © 2014 - Ardent Partners Ltd.
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
52
THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT
Copyright © 2014 - Ardent Partners Ltd.
53
CONVERGENCE ON THE NETWORK
54
THE EVOLUTION OF TALENT SOURCES
Copyright © 2014 - Ardent Partners Ltd.
55
BUSINESS NETWORKS’ IMPACT ON
TRANSACTIONS
56
BUSINESS NETWORKS’ IMPACT ON SUPPLIER
COMMUNICATION / COLLABORATION
57
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.
58
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