intellisource - sigsig.org/docs2/s05_intellisource_-_netapp_2014_10_15.pdfintellisource netapp...

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NetApp's Innovative, Customer-

Centric Procurement Operations

IntelliSource:

NetApp

Tunc YilmazSr. Manager Operations

Denali

Alpar KamberManaging Partner

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© 2013 Copyright Denali Group. All Rights Reserved.

IntelliSourceNetApp's Innovative, Customer-Centric Procurement Operations

Presented by

Tunc Yilmaz – Sr. Manager Operations, NetApp

Alpar Kamber – Managing Partner, Denali

Denali Group Confidential, 2013

5

Procurement Transformation, Strategic Sourcing, and Category Management

Managed, Source to Pay programs, Sourcing, Contracting, Supplier Management, Analytics and Intelligence

Subscription and Custom Supply Market Intelligence

Staffing and Recruiting of Procurement Professionals

Expanding Procurement’s Value

for The Global 1000 for Over 18 years

Learn, Play and Reinforce: Category Management and Strategic Sourcing Training


6

“Money is earned, while you spend it”

My Father


7

Managed Services Era

Strategic Sourcing Era

Category Management Era


8

Often the two are confused: Managed Services in a procurement capacity

delivers value in an integrated fashion and one size does not fit all

Managed Services BPO

Ownership transferred to the provider

End to End

$$$

Replaced

Ownership

Scope

Focus

Capabilities

Procurement Managed Services IS NOT consulting services or staff augmentation

Procurement Managed Services IS NOT lifting and shifting you procurement function

Procurement Managed Services IS “capable support” to help procurement organizations

create bench and flex capacity to drive additional volume of value added work delivered to

organizations in a flexible, scalable way

.

Ownership remains with the client

Selective Tasks

Results

Combined


9

“You can outsource the work,

but you can’t outsource responsibility”

Peter McGinley

VP Finance APAC NetApp

Dedicated to Your Success

Source: IDC Names NetApp Data ONTAP as the #1 Branded Storage Operating System Source: IDC Worldwide Quarterly Disk Storage Systems Tracker 2014 Q2, September 2014

IDC Storage Users Demand Study 2013 – Fall Edition, IDC #250106, August 2014 (based on IDC’s estimates for external storage systems capacity shipped in 1H 2013)

Public cloud infrastructure includes storage acquired by service providers for delivering SaaS/IaaS/PaaS as well as storage acquired by value-added content providers (VACP) for delivering content.

#1 Integrated Infrastructure Capacity - When measured by revenue in IDC’s Worldwide Quarterly Integrated Infrastructure and Platforms Tracker Q1 2014, published June 2014

(Integrated Infrastructure is a segment of the integrated infrastructure and platforms market that are designed for general-purpose, distributed workloads)

Customers have made us their top choice for key technologiesthat drive data center transformation.

#1 Storage Operating System

#1 in Storage for

Public Cloud#1 Integrated Infrastructure

Leading organizations worldwide count on NetApp for software, systems and services to manage and store their data.

From FORTUNE Magazine, February 3, 2014 © 2014 Time Inc. FORTUNE and FORTUNE 100 Best Companies to Work For

are registered trademarks of Time Inc. and are used under license. FORTUNE and Time Inc. are not affiliated with, and do not

endorse products or services of, NetApp.

US $6.3B revenue

Fortune 500®

NASDAQ: NTAP

Our Team:12,000+

150+ countries

Founded in 1992

12 Years in a Row:

A Fortune 100 Best

Place to Work

GSPSGlobal Supplier Programs and Strategy

© 2014 NetApp, Inc. All rights reserved. NetApp Proprietary – Limited Use Only13

GSSGlobal Sourcing Services

COECenter of

ExcellenceSupplier

Programs

Travel

GSP – Global Sourcing Partners

Category Management & Business Relationship

SRM, Card Programs,

Diversity

Tools, Process, Policy,

Data, Analytics,

Tactical Operations • Part of Finance & Operations Group (CFO)

• ~$1 Billion indirect spend

• Global Organization

• 3 major categories

• Professional Services

• Technology

• Marketing

IntelliSource

NetApp IntelliSource journey started 4 years ago

How do we scale procurement globally and expand our reach?

How do we best utilize our GSS organization?

Keep “Strategic Activity” in house,

scale“Tactical Activity” utilizing a Managed Services model

Concentrate our strategic resources to develop

category strategies

business relationship

Provide Business End to End Seamless Procurement Service


IntelliSource Storyboard


Nicole reaches out to get

IntelliSource Service help

Let us follow Nicole on her IntelliSource Experience


Nicole wants to buy something

GSS Operations works with Nicole to understand what

she wants to buy

• Requirements

• Timelines

• Budget

• Preferences

GSS Operations assesses the request

• Nicole’s requirements

• Complexity

• Procurement Strategies & Guidelines

• Policy & Best PracticesGSS Operations decides on the best solution

• Catalog Buy

• Card Buy

• Quick Buy from preferred suppliers

• Quick Bid/SOW

• Competitive Bid, Sourcing Event

• Contract Negotiation

• Strategic Sourcing Event

Team executes the request

Let us follow Nicole on her IntelliSource Experience


• Identify suppliers

• Negotiate

• Analyse and find the best value

• Consult & agrees with Nicole

• Consult & engage with GSP

• Draft the contract

• Execute the contract

• Advise Nicole on next steps

Nicole is Happy• She received what she wanted and fast

• She didn’t need to worry

• who the suppliers are

• how to negotiate

• if she’s getting the best TCO

quality/service/price

• How to draft a contract

• Follow all the policies

• She even saved money on her budget

All of these Services provided to her by IntelliSource, she

was involved at the right times and decision points and

watched all happen very quickly on her behalf.

Nicole’s Request gets assigned to the right operations team

- Tactical

- Strategic

- Help Desk

The assigned team engages Nicole

for next steps and

• Explain Process

• Agree on timeliness

• Level set expectations

• Explain engagement model

• Agree on outcomes & results

GSP is Happy• His category is executed based on his strategy

• His stakeholders are happy

• He got engaged at the right time at the right level

• He can concentrate his energy to the right strategic events or

strategy development

• He receives feedback on what’s working, not working he can

include into his strategy

He scaled himself to do more and watch his

strategies make stakeholders happy and bring

value to NetApp

So what can go wrong?

IntelliSource


Nicole wants to buy something

Nicole reaches out to get

IntelliSource Service help

“Who and what is IntelliSource?”

“I don’t have time to deal with IntelliSource”

“I’d rather buy it myself, I know what I want”

“Savings? I don’t need savings I have

budget”

Nicole clearly doesn't understand what

IntelliSource is, what it does and what value it

brings to her and to NetApp

STRONG ROLLOUT INITIATIVE – CHANGE MANAGEMENT

• Engagement & Agreement from Leadership

• Make success of this rollout a co-owned goal

• Use leadership for traction; align regions, BUs, processes

• Use Cross Functional Rollout Teams – Change Agents

• Make them part of core team and accountable, act as change agents in their own groups

• Use cross functional team to give feedback to process, develop ownership

• Don’t Rush – Train – Soft Launch

• Take a multi stage, soft launch approach, don’t force people, use the opportunity to educate on new process

• Assess, review adjust, tweak, train again as necessary


IntelliSource


GSS Operations decides on the best solution

• Catalog Buy

• Card Buy

• Quick Buy from preferred suppliers

• Quick Bid/SOW

• Competitive Bid, Sourcing Event

• Contract Negotiation

• Strategic Sourcing Event

GSS Operations works with Nicole to understand what

she wants to buy

• Requirements

• Timelines

• Budget

• Preferences

GSS Operations assesses the request

• Nicole’s requirements

• Complexity

• Procurement Strategies & Guidelines

• Policy & Best Practices

Operations didn’t even understand what Nicole

wants

They told her they need to bid it out, where there

was already a preferred supplier

They spent endless hours with GSP to

understand what they need to do

Nicole got frustrated on the time lost and what

value IntelliSource brings

GSP is frustrated that he has to deal with

resources that don’t understand his category

There is a clear disconnect between how a

GSP wants to execute a category vs Operation

Team’s understanding

OPERATIONALIZING A PROCUREMENT STRATEGY IS NOT OUTSOURCING IT

• Put Your Strategies on Paper

• Create category cards, category playbooks

• Use a 80/20 approach, quick short to the point, ask right questions, get right answers & drive decisions

• Dedicate Time & Train Operational Resources

• Operational team can only get better when they practice and learn how to interpret the instructions

• Learn from shortcomings/fails to develop your instructions better

• Identify operational team leads/experienced resources to cross train/cross execute

• Assess Competency of Resources

• Figure out where they fail and take action accordingly

Nicole’s Request gets assigned to the right operations team

- Tactical

- Strategic

- Help Desk

The assigned team engages Nicole

for next steps and

• Explain Process

• Agree on timeliness

• Level set expectations

• Explain engagement model

• Agree on outcomes & results


IntelliSource


Team executes the request

• Identify suppliers

• Negotiate

• Analyse and find the best value

• Consult & agrees with Nicole

• Consult & engage with GSP

• Draft the contract

• Execute the contract

• Advise Nicole on next steps

Nicole is bounced between the

teams, every time she needs to

explain again what she wants

Operations team think GSP is

going to engage, GSP thinks

operations team, ball gets

dropped

Everyone starts pointing the

finger at each other

Nicole doesn’t care whose fault it

is or understand GSS structure,

she wants to get it done.

There is a clear gap in Roles & Responsibilities

and accountabilities between teams

WE ARE ONE TEAM – CHANGE MANAGEMENT STARTS INTERNALLY

• Make Sure Your Procurement Organization Understands the Model and Their Role In It

• Make them part of the model design, provide feedback and understand the workings

• If they don’t understand and take accountability, it’s a fail from the start

• Define Roles & Responsibilities Clearly

• Who does what, how interactions work

• It may be complex in the background but it should work as one team/one process to Nicole

• Create Transparency and Escalation Chain

• Transparency between the teams on good, bad and ugly

• Make a process to get it to the right person to solve right away but also identify root cause and fix long term


21

DistanceEmotional

Baggage

Dishonesty and

Deception

Lack of

CommitmentLazy Bones

The Real Self

Emerges

Fairy Tale

Fantasies

Criticism

Creeps in

Too Physical

too Fast

Managed Services engagements are made up of many to many relationships

that bring complexities to managing the experience for both parties


22

Tunc YilmazNetapp

[email protected]

Alpar KamberDenali Group

[email protected]

mailto:[email protected]

mailto:[email protected]

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2014

Session #5

IntelliSource: NetApp's Innovative, Customer-Centric Procurement Operations

Tunc YilmazNetapp

[email protected]

Alpar KamberDenali Group

[email protected]

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