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Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |1
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |
Oracle Cloud ProcurementGet Strategic to Reduce Spend
David HobsonBusiness Development Director – Cloud Applications
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Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Oracle Confidential – Internal/Restricted/Highly Restricted 3
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MOBILE & SOCIAL
RETAIL
Commerce Anywhere on
Any Device
HEALTH SCIENCES
Personalized Medicine
FINANCIAL SERVICES
Online Banking and Mobile Payments
COMMUNICATIONS
Machine-to-Machine
Communications
$1+ trillion in Mobile eCommerce revenue by 2017
$17+ billion in Big Data revenue by 2015
BIGDATA
$200+ billion in Cloud Services revenue by 2015
CLOUDSERVICES
$290+ billion in Machine-to-Machine revenue by 2017
THE INTERNET OF THINGS
UTILITIES
Smart Grids and Flexible Power Consumption
ASSET INTENSIVE
Flexible CapitalPlanning &
Deployment
$
HOSPITALITY
“Above Property” Cloud Solutions
Digital is Transforming How Industries Create Value
5
Enterprises who have embraced digitization across the enterprise have revenues, profit margins and stock prices 20-30% higher than laggards.
- McKinsey
Digital Technologies Drive Tremendous Value
6
Today’s Reality
• 90% of data has been generated in last 24 months
• Big data has improved overall performance by 26%
• 62% of CFOs agree analysis needs more support from modern technologies
• Big Data used in measuring risk and accounting irregularities
Big Data isCreating a New Signal
MoreMobileStakeholders
Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 77
Today’s Reality
• Mobile devices projected to grow to 12.5b by 2020
• Mobility doubles adoption rates for business analysis
• Mobile adoption provides growth opportunities and competitive advantage
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
• Mobile Access Anywhere
• Cloud, On-Premises, Hybrid
• Discover More Patterns
• Meaningful Management Reports
Simplifying How We Work
8Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |
• Data access
• Model development
• Visual Analysis
• Dashboard
• Application
• Everything
Self Service Everything
9Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 10
Companies risk falling behind
Regulations
Technology Innovation
Competitive LandscapePace of Change
IT Infrastructure
Business Model
Skills
Ability to Respond
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Aging ERP Systems Can’t Keep Pace with Change
Business Events• Acquisition• Divestiture • Preparation for IPO• Shared service center of excellence
IT Events• Ending support on an old version• Alternative to costly upgrade • Reduce maintenance on customizations • Data center consolidation
47% 70% 49%76%
Of Business Leaders say their current ERP is unacceptable
CFOs who are moving Financial Management to Cloud
Of companies with 1,000 employees want a single ERP
Of companies have 6 or more ERP systems
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Cloud Security Concerns Have Subsided
Source: Oracle 2015 Top Trends Research
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Delivering a platform to support your digital business
Delivers standardization
Enables rapid innovation
Keeps pace with change
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Changing dynamics, established priorities
The Modern Procurement Agenda
Source: Ardent Partners , CPO Rising. The Hackett Group 2014 Procurement Agenda
Ensure spend control and cost savings to maintain margins
Expand procurement’s effectiveness and influence
Support company growth with existing headcount
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 15
Quantifying key business issues
Procurement Scorecard
Source: Ardent Partners and Deloitte CPO Survey
39%
47%of addressable spend is actually sourced
55%of spend is contract compliant
39%
50%of CPOs say procurement-related risk has increased in the last year65%
Of procurement departments lack standardized, streamlined and automated processes
!
60%of supplier invoices are still manually keyed into AP systems
63%Of total spend is linked to a Purchase Order
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 16
Is Your Procurement Strategic?
Source: Deloitte Global CPO Survey 2015 and Ardent Partners CPO Rising 2015
Missed cost savings
Inconsistent negotiation and contracting practices
Lack of influence over spend
Lack of insight into risk, qualifications and compliance
Inability to link sourcing and contracting
Impediments to becoming a strategic business partner
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. 17
Average annual savings realized by best-in-class sourcing teams
12.8% Aberdeen Group 2015
Copyright © 2016, Oracle and/or its affiliates. All rights reserved.
TO BE A VALUED BUSINESS PARTNER…
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Lack of automation across the source-to-settle process constrains procurement’s ability to maintain credibility and optimize operations and performance over the long term.”
Ardent Partners , 2015
…YOU NEED TO DO THE FUNDAMENALS RIGHT
“
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 19
Strategic Procurement provides…
- A systematic way to qualify and manage your suppliers
- Consistent negotiation practices and streamlined awards
- Standardized contracts, proper reviews and approvals
- The ability to link sourcing and contracting processes
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 20
Modern Strategic Procurement
Execute Contract
Source
PurchaseManage Suppliers
Award Business
Assess Suppliers
Streamline Negotiations
Informed Decisions
Streamline Contract Creation
Compliant Purchasing
Manage Profiles
Manage Contract Lifecycle
Your path to streamlined supplier management
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
A complete source to settle solution
Oracle Procurement Cloud
NEGOTIATIONS
PURCHASEORDERS
CONTRACTS
RECEIPTS
REQUISITIONS
SUPPLIERS INVOICES
CONTRACTMANAGE SUPPLIERS
SOURCE SETTLEPURCHASE
| Strategic | Operational |
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
A complete source to settle solution
Oracle Procurement Cloud
NEGOTIATIONS
PURCHASEORDERS
CONTRACTS
RECEIPTS
REQUISITIONS
SUPPLIERS INVOICES
CONTRACTMANAGE SUPPLIERS
SOURCE SETTLEPURCHASE
SELF SERVICE PROCUREMENT
SUPPLIER QUALIFICATION MANAGEMENT
SOURCING PROCUREMENT CONTRACTS
SUPPLIER PORTAL
PROCUREMENT ANALYTICS
PURCHASING PAYABLES
Collaborative Negotiations | Enforceable Contracts | Streamlined Procure to Pay | Supplier Qualification Management
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.
Connected
Analytics
Social
Auditable
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• Easy-to-use, rapidly deployed
Simple, Modern
Best Practice Strategic Procurement
No pre-requisite products
Easily integrates
Can stand-alone
Fast time-to-value
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Increasing Procurement Cloud AdoptionDelivers lower cost and faster time-to-value
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66% will either complement or replace on-premise with SaaS when considering Procurement software (up from 54% in 2013)
Source: Forrester Research
66%
54%
2013 ... 2015
Procurement Cloud Adoption
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Journey to Cloud Can Vary
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Contracts
SINGLE PROCESS
Planning and Budgeting
BUSINESSFUNCTION
Procure to Pay
END-TO-ENDPROCESS
ERP and HCM
COMPLETETRANSFORMATION
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 26
ERP Journey to Cloud: Transform Your Way
PLAN TO REPORT
SOURCE TO PAY
ORDER TO CASH
PROJECT MANAGEMENT
Financial Reporting Compliance
Sourcing and Contracts
Configure, Price, Quote
Project Execution Management
Enterprise Planning and BudgetingNarrative Reporting
Supplier Qualification Management
INDEPENDENT SERVICES
Account Reconciliation
Revenue Management
Financial Close & ConsolidationAdvanced Financial Controls
Existing Legacy Core Applications
Self-Service Procurement | Supplier Portal
Travel and Expense Management
Advanced Collections
Project Financials
Grants Management
CORE-DEPENDENT EXTENSIONS
OUTSIDE IN
Purchasing | Inventory
Order Management
COREFi
nan
cial
s
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
The Journey to Procurement Excellence
Oracle Confidential – Internal/Restricted/Highly Restricted 27
Level 1 – Manual• There little formal procurement policies• Sourcing and Contract activities lack formal process• Excel and Word are used for Sourcing, Contracts along with a core ERP purchasing system
Level 2– Foundational• Procurement policies exist , bit are not consistently adhered to• Sourcing, Supplier and Contract activities lack formal process•Little system automation in the procurement process
Level 3 – Established• Policies are evident across most spend categories and processes• Sourcing, Contract and or supplier review have a defined periodic agenda• Systems have been adopted with interfaces to financials
Level 4 – Leading• Non-compliance is reported and actively managed• Contractual obligations are tracked thru the life cycle• System functionality allows procurement to focus on strategic issues
Level 5 – Excellence• Non-Compliance is exceptional• Collaboration with supplier drive tangible value• Procurement technologies establish procurement influence to Operation and Finance
5-7% Savings Over Level 1
8-13% Savings Over Level 1
10-18% Savings Over Level 1
5-8% Total Spend Savings
KPMG International copyright 2012
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 28
Time to Value Accelerating for Cloud AppsFixed price and scope implementation for rapid time-to-value
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
January February March April May June
Mid
Mar
ket
Startup, Gather Configuration Information
Configure and Validate Cloud Environment
Capabilities Refinement
End User Validation and Acceptance
Transition to Production
Interactive User Workshops and Feedback
1
2
3
4
5
6
7
Key Activities
Up
Mar
ket
12-24 weeks
4-12 weeks
Go Live
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Oracle Procurement Cloud Momentum
100+Live customers
20+Industries
250+New customers in
FY15
400+Customers
45+Countries
1300+
Trained Procurement Partners
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Procurement Cloud Customer Examples
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
UK ERPM Cloud Customers
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Oracle Modern Best Practice For Finance & Procurementwww.oracle.com/modernbestpractice/finance
• Flexible, Open, End-To-End, Business Processes
• Enabled by Cloud, Mobile, Social, Analytics, Big Data and The Internet of Things
• Finance, Procurement and much more
• Delivers: Confident Growth, Digital Excellence & Agile Operations
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Recent estimates suggest that there are close to 200 million suppliers around the world.
How can you be sure you’re connecting with the right suppliers?
Best-in-Class technology implementation can help procurement to be more strategic and add more value
to organisations.
Our free webinar “http://oracle.procurious.com/”, will help you to:
• Come to terms with volatility, and procurement’s role in risk mitigation
• Ensure best practice in technology implementation throughout the sourcing process
• Understand the role and benefits of technology in procurement strategy, planning and decision making
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Largest portfolio of digital apps
One industry-standard platform
Future-proof & co-exists with existing apps
Global reach and compliance
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Easy to change, extend and build new apps
Digital Business Platform
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. | Confidential – Oracle Internal/Restricted/Highly Restricted