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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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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

4

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

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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


• 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. |


• Data access

• Model development

• Visual Analysis

• Dashboard

• Application

• Everything

Self Service Everything

9Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

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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


Delivering a platform to support your digital business

Delivers standardization

Enables rapid innovation

Keeps pace with change


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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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


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

“


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


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


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


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


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


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



5-8% Total Spend Savings

KPMG International copyright 2012


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


Oracle Procurement Cloud Momentum

100+Live customers

20+Industries

250+New customers in

FY15

400+Customers

45+Countries

1300+

Trained Procurement Partners


Procurement Cloud Customer Examples


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

http://www.oracle.com/modernbestpractice.com/finance


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

http://oracle.procurious.com/

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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 © 2015 oracle and/or its affiliates. all rights ... · source: deloitte global cpo...

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