coupa 'crank up the savings' road show - dallas

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Page 1: Coupa 'Crank Up The Savings' Road Show - Dallas
Page 2: Coupa 'Crank Up The Savings' Road Show - Dallas

Tony  Wessels  Vice  President,  Marke0ng  

Coupa  

Page 3: Coupa 'Crank Up The Savings' Road Show - Dallas

Thank  You  

Page 4: Coupa 'Crank Up The Savings' Road Show - Dallas

Ravi  Thakur  Vice  President,    Customer  Success  

Coupa  

Page 5: Coupa 'Crank Up The Savings' Road Show - Dallas

Keaton  Miller  Director,    Procurement  Advisory  

KPMG  

Page 6: Coupa 'Crank Up The Savings' Road Show - Dallas

Jack  Miles  Industry  Visionary,  Former  CPO  CIGNA  CA,    Inc.,  AIG,  CIBC,  Travelers,  

Page 7: Coupa 'Crank Up The Savings' Road Show - Dallas

Tom  Brewer    Vice  President,  Shared  Services  

Michaels  Stores  

Page 8: Coupa 'Crank Up The Savings' Road Show - Dallas

Bhaskar  Deka  Sr.  Director,  Product  Marke0ng  

Coupa  

Page 9: Coupa 'Crank Up The Savings' Road Show - Dallas

You  AEendee,  Coupa  Roadshow  

Page 10: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa Overview ������

Tony Wessels���Vice President, Marketing

Page 11: Coupa 'Crank Up The Savings' Road Show - Dallas
Page 12: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa’s  Mission  

Delivering software innovation that breeds responsible spending while impacting the

company bottom line.

Page 13: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa’s  Mission  

Delivering software innovation that breeds responsible spending while impacting the

company bottom line.

Page 14: Coupa 'Crank Up The Savings' Road Show - Dallas

InnovaCon  –  Integrated  Cloud  PlaGorm  

Bolt-on Functionality Organic, Integrated Functionality

Cloud

Yesterday Today

Client Server

Page 15: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa’s  Mission  

Delivering software innovation that breeds responsible spending while impacting the

company bottom line.

Page 16: Coupa 'Crank Up The Savings' Road Show - Dallas

Responsible  Spending  –  User  AdopCon  

Complicated, Time Consuming Convenient & familiar

Users Spend Money Back Office - Process Automation

Yesterday Today

Page 17: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa’s  Mission  

Delivering software innovation that breeds responsible spending while impacting the

company bottom line.

Page 18: Coupa 'Crank Up The Savings' Road Show - Dallas

Impact  BoKom  Line  

Products Service

Customer Satisfaction

Customer Success

Yesterday Today

Page 19: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa’s  Explosive  Growth  

180%  Bookings  

YOY  

+95%  Renewal  Rate  

YOY  

150%  Pla7orm  Usage  

YOY  

Page 20: Coupa 'Crank Up The Savings' Road Show - Dallas

One  World,  One  PlaGorm  

10  Languages  

40  Countries  

Page 21: Coupa 'Crank Up The Savings' Road Show - Dallas

Customers  Highlights  Retail Finance Mfg. Health Care High Tech

Real Estate

Page 22: Coupa 'Crank Up The Savings' Road Show - Dallas

Coupa Vision & ���Platform Overview ���

���Ravi Thakur���

Vice President, Customer Success

Page 23: Coupa 'Crank Up The Savings' Road Show - Dallas

           CFO                Journal  Entries  

 VP  HR          Employee  Records    

                 VP  Sales      OpportuniCes  

 Procurement        Spend  TransacCons  

Page 24: Coupa 'Crank Up The Savings' Road Show - Dallas

Starts  With  the  Employee  

Page 25: Coupa 'Crank Up The Savings' Road Show - Dallas

Employees  Have  DramaCcally  Changed  

Page 26: Coupa 'Crank Up The Savings' Road Show - Dallas

Our  Vision  is  the  Coupa  PlaGorm  

Page 27: Coupa 'Crank Up The Savings' Road Show - Dallas

The  Coupa  PlaGorm  

Page 28: Coupa 'Crank Up The Savings' Road Show - Dallas

The  Coupa  PlaGorm  

Page 29: Coupa 'Crank Up The Savings' Road Show - Dallas

The  Coupa  PlaGorm  

Page 30: Coupa 'Crank Up The Savings' Road Show - Dallas

99.9% Uptime SLA

500,000 Daily Transactions

300,000 Suppliers

4+ API Calls p/Second

The Most Active Cloud Procurement Platform On the Planet

Page 31: Coupa 'Crank Up The Savings' Road Show - Dallas

User Sourced

Execute

Confirm Receipt

2 & 3 Way

Match

Contract Source Analyze

Order Ack & ASN

     Seamlessly  Integrated  PlaGorm    

Requisition Submitted

Purchase Need

PO Issued To Supplier

Order Fulfilled

Invoice Received

Invoice Paid

Requisition Approval

Page 32: Coupa 'Crank Up The Savings' Road Show - Dallas

RequisiCon  to  Approved  Invoice  

Requisition Submitted

Purchase Need

PO Issued To Supplier

Order Fulfilled

Invoice Received

Invoice Paid

Requisition Approval

• 18,000 Users • 3,500 Locations • 4,000 + PO’s & Invoices p/day • OK to Pay Invoices flow into Lawson • Emptoris Integration for Advanced Contracts

Page 33: Coupa 'Crank Up The Savings' Road Show - Dallas

RequisiCon  To  PO  &  Receipt  

Requisition Submitted

Purchase Need

PO Issued To Supplier

Order Fulfilled

Invoice Received

Invoice Paid

Requisition Approval

• 1,000 users • Over 500k Catalog Items • Over 500 Custom Views • PO’s and PO changes flow into SAP • Receipts flow into SAP

Page 34: Coupa 'Crank Up The Savings' Road Show - Dallas

RequisiCon  To  PO  

Requisition Submitted

Purchase Need

PO Issued To Supplier

Order Fulfilled

Invoice Received

Invoice Paid

Requisition Approval

• Over 6,000 users • Integration to McDonalds Intranet Applications • Over 4,000 logins daily • Over 10,000 p-cards

Page 35: Coupa 'Crank Up The Savings' Road Show - Dallas

Demonstration

Page 36: Coupa 'Crank Up The Savings' Road Show - Dallas

Marketing

Innovation

Market

Customers

Roadmap  Influencers  

Page 37: Coupa 'Crank Up The Savings' Road Show - Dallas

What  this  All  Means  to  You  

Page 38: Coupa 'Crank Up The Savings' Road Show - Dallas

Thank  You!  

Page 39: Coupa 'Crank Up The Savings' Road Show - Dallas

Sustaining Value Through Integrated Procurement Transformation���

���Keaton Miller���Director, KPMG

Page 40: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

40

Procurement Advisory at KPMG

Our mission is to make Procurement a competitive differentiator for our clients.

Organizational effectiveness

Supplier Risk Management

Technology Enablement

Master Data Management

Process Optimization

Category Sourcing & Management

Tax Efficient procurement

Supplier Relationship Management

Rapid Assessment

Page 41: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

41

Session objectives

n  Discuss the key elements of an integrated procurement target operating model

n  Provide a high-level overview and insight into how the procurement technology space has evolved in response to customer demand for innovation and lower cost of ownership

n  Highlight critical success factors of an integrated approach for successful and sustained procurement transformation

Page 42: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

42

KPMG has an integrated, life-cycle view of the procurement function

It is critical to recognize the interconnectedness of the different components: Strategic Sourcing generates the savings while Transactional Procurement delivers them to the bottom line.

Vendor Risk and Portfolio Management help preserve the value delivered.

Page 43: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

43

Value leakage can occur at every stage of the Source-to-Pay cycle

Strategic Sourcing "   Total cost levers "   Cross-functional team

approach "   Rigorous tracking of

generated savings

Contract Management " Established contract

management teams " Defined contract

management plans " Active performance

and transition management

Deliver

" Lack of business buy-in to sourcing strategies

" Limited use of eRFx tools

" Lack of transparency around supplier selection

" Buyers too focused on tactical purchasing

" Limited visibility to negotiated contracts

" Paper contracts distributed across organization

" High degree of off-contract spend

" Conflicting/duplicate contracts with the same vendors

" Disparate processes and tools

" Few upfront purchase orders

" ‘After-the-fact’ approvals

" Blocked invoices " Duplicate payments " Limited use of ACH/

EFT

" Abundance of data; little intelligence

" Incomplete, incorrect, inconsistent data – materials and vendors

" Spend data dispersed across multiple systems; Enterprise view not available

Identify Sustain

Lead

ing

Prac

tice

Com

mon

Pra

ctic

e

Operational Procurement " Documented policies

and procedures " End-to-end process

visibility and transparency

" Standardization and automation

Procurement Intelligence " Defined KPIs and

metrics " Enterprise tracking

and Reporting " Data accuracy and

reliability

Supplier Management " Formalized supplier

management program " Dedicated supplier

account teams " Aligned KPIs

" Exception-based supplier management

" Tactical interactions versus strategic relationships

" Limited supplier collaboration and sharing of data

Page 44: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

44

Technology is a key enabler for procurement effectiveness and transactional efficiency…

People & Organization – Procurement operating model (centralized, center-led, decentralized), roles, responsibilities and people that should be supporting the defined process.

Process – P2P processes, activities and tasks for each of the buying channels including the mapping to specific functions and departmental roles performing them.

Technology & Tools – tools and applications that are used to enable the P2P processes, policy compliance, internal controls, and report generation.

Performance Measurement – Internal key performance indicators and metrics to manage people and processes, and drive correct behavior. Includes procurement operational and executive reporting needs.

Governance & Policies – Policies, procedures and controls in place to mitigate risk of processing errors, linked to specific steps in the Requisition-to-Pay process.

Master Data – Quality of master data associated with procurement and invoicing processes e.g. materials, services, vendors, commodity codes, etc. Includes processes and controls to maintain master data and sustain its quality.

Performance Measurement

Organization Layer People & Organization

Processes

Technology & Tools

Governance & Policies

Master Data

Page 45: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

45

0%

20%

40%

60%

80%

100%

Financial Services Health Manufacturing / CPG

Public Sector Retail TMT / Busn Services

Transportation / Logistics

ENR & Process Not for Profit

Foundational or Established Leading or Excellence

… Yet most companies are immature adopters of procurement technology

Very few companies exhibit Leading or Excellence maturity levels for procurement technology – levels that indicate that users are

empowered to use technology, and procurement can refocus on strategic work

Source: KPMG’s Power of Procurement Survey, 2012

82%

18%

Page 46: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

46

ERP

The procurement technology landscape has evolved dramatically – making it easier to successfully adopt

Typical Procurement 1.0 Landscape Procurement 2.0 Landscape

Contract Management

Spend Analytics Sourcing &

RFx)

Operational Procurement

Supplier Collaboration

Invoicing

ERP

Key Characteristics of the typical procurement 1.0 landscape: n  Standalone, single purpose point solutions n  Low to moderate degrees of integration n  On-Premise Centric n  High Total Cost of Ownership n  Less focused on end user experience

Key Characteristics of an evolving procurement 2.0 landscape: n  Suite-oriented solutions n  Tight integration n  Open standards n  Greater accessibility and scalability n  Greater use of on-demand resources n  Internal and external collaboration tools n  Oriented towards the end user experience

¹ Operational procurement includes requisitioning, purchase order, and receiving functions

Sourcing & RFx

Invoicing

Operational Procurement

Supplier Collaboration

Spend Analytics

Contract Management

Page 47: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

47

Optimizing use of the cloud as part of your technology strategy can serve as a game changer

§  By removing traditional barriers to access, the cloud has created a resurgence in demand for technology, by making investments in innovation more affordable to companies of all sizes and scale

Innovations in procurement are being delivered through the cloud

§  The cloud is already changing how we collaborate with our coworkers and business partners, and the speed at which those interactions can occur.

§  By virtualizing processes, the cloud creates new opportunities and business models for deployment.

Page 48: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

48

KPMG recognizes that procurement transformation is a journey – not a destination

Page 49: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

49

We understand the keys to transformation success…

* Source: Mori Study

Top 10 Risks toTransformation Programs * Culture 54% Inappropriate org structure 48% Employee resistance 46% Senior mgmt resistance 45% Fear 43% Change overload 36% Ineffective performance measurement 33% Failure to sustain momentum 23% Failure of past projects 21%

Critical Success Factors 1.  Focus on people and changing

behaviors 2.  Start generating savings early to

establish credibility 3.  Striking the right balance between

“running the business” and “transforming the business”

4.  Include internal and external stakeholders in the journey

5. Recognize the role of foundational elements to drive sustainable savings

Includes Technology Enablement

Page 50: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

50

… And have found that an integrated approach to transformation can drive sustainable value

•  Accelerate the time to achievement of savings •  Generate additional value and savings •  Sustain value and savings by ensuring compliance to preferred suppliers and contracts

Benefit

Time to value

Integrated approach

Speed

Additional value

eProcurement and Contract Mgmt alone

Addressing eProcurement, Contract Management, Classical Strategic Sourcing, Organization and Technology together will:

Sourcing alone

Sustained benefit due to compliance

Page 51: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

51

In summary…

•  Current cloud technology-enabled procurement transformation programs demonstrate feasibility and tangible, realizable benefits

•  World-class performance in procurement can be achieved and can drive sustainable business value

•  Dramatic changes in procurement technology now makes adoption of foundational enablers easier and more cost effective

Page 52: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

52

For more information….

Samir Khushalani Principal Advisory KPMG LLP 811 Main Street Houston, TX 77002 [email protected] KPMG is a U.S. limited liability partnership.

Tel 713 319 3570 Cell 713 459 2236

Keaton Miller Director Advisory KPMG LLP 811 Main Street Houston, TX 77002 [email protected] KPMG is a U.S. limited liability partnership.

Tel 713 319 3825 Cell 214 316 9682

What We Do > Advisory > Management Consulting >

By Function > Strategic Sourcing & Procurement

…Email our KPMG Procurement Advisory Mailbox… [email protected]

…Contact us directly…

…Or visit our website at www.kpmg.com!

Page 53: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 108976

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Page 54: Coupa 'Crank Up The Savings' Road Show - Dallas

© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 52188DAL

54

Jack Miles

54

Former CPO, CIGNA

Conversations with an Industry Visionary

Page 55: Coupa 'Crank Up The Savings' Road Show - Dallas

Break

Page 56: Coupa 'Crank Up The Savings' Road Show - Dallas

Agenda  Time Item Presenter

8:30 – 9:00 Coffee All

9:00 – 9: 15 Welcome – Coupa Overview Tony Wessels, V.P. Marketing Coupa

9:15 – 10:00 Coupa Solution & Roadmap Ravi Thakur, V.P. Customer Success, Coupa

10:00 – 10:30 Sustaining Value Through Integrated Transformation

Keaton Miller, Director, KPMG

10:30 – 11:00 Conversation with an Industry Visionary Jack Miles, Former CPO CIGNA

11:00 – 11:15 Break All

11:15 – 11:45 Customer Success – Best Practices Tom Brewer, V.P. Shared Services, Michaels

11:45 – 12:15 Calculating TCO Bhaskar Deka, Sr. Director Product Marketing, Coupa

12:15 – 12:30 Closing Remarks Tony Wessels

12:30 – 1:00 Coupa Demo

Page 57: Coupa 'Crank Up The Savings' Road Show - Dallas

Tom Brewer

57

VP, Shared Services Michaels Stores

Customer Success – Best Practices

Page 58: Coupa 'Crank Up The Savings' Road Show - Dallas

58

Michaels Privileged & Confidential

Michaels Stores

Category Leader in Arts & Crafts

• Over 1,000 stores in U.S. and Canada

• 40,000+ SKUs across a variety of general & kids crafts, art supplies, framing and seasonal / décor categories

• $4.0 Billion in Revenue

Page 59: Coupa 'Crank Up The Savings' Road Show - Dallas

59

Michaels Privileged & Confidential

Michaels Vision & Strategy

A World-Class Performer that: • Inspires and enables consumers to experience creativity • Leads industry growth & innovation • Creates a fun and rewarding place to work that fosters meaningful connections with our communities

Vision

PEOPLE: World-Class Workforce / Environment / Performance

CO-SOURCING: Systems & Process Enablers

StoreGrowth

CategoryMgmt

GlobalSourcing

CashFlow

Mark-eting

CustomerExperience

PEOPLE: World-Class Workforce / Environment / Performance

CO-SOURCING: Systems & Process Enablers

StoreGrowthStoreGrowth

CategoryMgmt

CategoryMgmt

GlobalSourcingGlobalSourcing

CashFlowCashFlow

Mark-etingMark-eting

CustomerExperienceCustomerExperience

Strategic Priorities

Page 60: Coupa 'Crank Up The Savings' Road Show - Dallas

60

Michaels Privileged & Confidential

The Goal….

Lean Process and Improved Accuracy

•  Reduce invoice coding and approval time by 60% (support department )

•  Reduce invoice processing effort by 25% (Accounts Payable)

•  Reduce costs for invoice scanning and online retention by 30%

•  Improve On time payment by 25%

•  Ensure 100% centralized systemic visibility to complete non-merchandise purchase obligations (Compliance)

• Corporate-wide systemic process

•  To record PO obligation

•  Leverage authorized suppliers and items

Page 61: Coupa 'Crank Up The Savings' Road Show - Dallas

61

Michaels Privileged & Confidential

The Decision….

Lean Process and Improved Accuracy

• Oracle Financials rolled out in 2006 •  Needed to implement many modules to function effectively

•  iSupplier

•  Procurement

•  Purchasing

•  Projects

•  No available capital or resources for an indirect spend tool

• Coupa provided ease of use and quick start for the process •  No capital investment or IT resources required

•  Offered control and approval to spend before PO placed

•  Consistent use of approved vendors

Page 62: Coupa 'Crank Up The Savings' Road Show - Dallas

62

Michaels Privileged & Confidential

The Journey – Identifying Opportunities

•  Conducted workshops and interviews

•  Captured Voice of Customer (VOC)

•  Identified Improvement Opportunities

•  Segregated Effort and Process Control related Issues

•  Conducted Surveys to estimate AS-IS Effort

•  Completed Process Mapping for finding process bottlenecks.

Page 63: Coupa 'Crank Up The Savings' Road Show - Dallas

63

Michaels Privileged & Confidential

The Journey – Analyze & Identify Waste

• Charted an Affinity diagram to • Identify all process improvement opportunities

• Classify and group opportunities

• Built Value Stream Map to determine

•  Value adding & enabling steps (essentials)

•  Non value adding steps (Wastes)

• Identified Manual Efforts, rework and errors to be reduced

• Cash flow impact analysis to ensure no negative impacts on cash flow

Manual Rejection

$2,576,050.00

$1,356,432.00

$931,822.00

$- $473,442.00 $568,858.00

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

Duplicate Payment

Missing Information

Clarification Miscellaneous Approval Missing

Incorrect Payment

Type of Errors

$ V

alu

e

Page 64: Coupa 'Crank Up The Savings' Road Show - Dallas

64

Michaels Privileged & Confidential

Achieving the Goal….

Lean Process and Improved Accuracy

• With vendor interface the vendor invoices will presented by the vendor in the tool to eliminate the need to:

•  Scan

•  Route to departments for approval

•  Coding is linked PO eliminating the need to add coding

•  Recover invoices

•  Tool will hold all PO’s for indirect spend

• Control vendor setup to only approved vendors and pricing

•  Interface Payment information from AP to Tool to aid vendor in payment status

Page 65: Coupa 'Crank Up The Savings' Road Show - Dallas

65

Michaels Privileged & Confidential

Where we are…..

Lean Process and Improved Accuracy

•  Capital and expense items for corporate and DC’s operational •  Using punch outs to vendor catalog and selected items build into our item list

•  Suppliers link invoicing into tool

•  Electronic invoicing

•  Over 5,000 PO’s / $83 M orders

$0.0  

$2.0  

$4.0  

$6.0  

$8.0  

$10.0  

$12.0  

$14.0  

$16.0  

$18.0  

2011  Q1   2011  Q2   2011  Q3   2011  Q4   2012  Q1   2012  Q2  

Page 66: Coupa 'Crank Up The Savings' Road Show - Dallas

66

Michaels Privileged & Confidential

Projected benefit is HUGE

The Journey – Reaping the Benefits

•  Shifted effort of invoice coding and approval time from departments to AP

•  Saving from Accounts Payable Invoice

Processing

•  Improved Working Capital

• Control of budgets and projects in one central tool

•  CFO – controls for projects

Page 67: Coupa 'Crank Up The Savings' Road Show - Dallas

67

Michaels Privileged & Confidential

Next Steps

•  Partner with Coupa to add Budget/Project tracking into system

•  Coupa setup allows only authorized access to set item level data to include account coding

•  Linked with Tax Department for reporting

•  Invoice approval in tool with feed to AP for funding

•  Develop reverse feed into tool of Spend data for analysis and accruals

Page 68: Coupa 'Crank Up The Savings' Road Show - Dallas

68

Michaels Privileged & Confidential

Questions

? ? ?

Page 69: Coupa 'Crank Up The Savings' Road Show - Dallas

Calculating TCO For A ���Rock Solid Business Case���

���Bhaskar Deka���

Sr. Director, Product Marketing

Page 70: Coupa 'Crank Up The Savings' Road Show - Dallas

Making  the  Business  Case  May  Seem  Complicated    ..  

Page 71: Coupa 'Crank Up The Savings' Road Show - Dallas

You Manage: §  ApplicaCon  §  RunCme  §  IntegraCon  §  Database  

Vendor Manages:

§  Server Hardware/Software

§  Storage

§  Network

Hosted       SaaS/Cloud      On-­‐Premise      Vendor Manages: §  Application

§  Runtime §  Integration

§  Database

§  Server Hardware/Software

§  Storage §  Network

Especially,  with  3  Deployment  OpCons  …  

You Manage: §  Application

§  Runtime §  Integration

§  Database

§  Server Hardware/Software

§  Storage §  Network

Page 72: Coupa 'Crank Up The Savings' Road Show - Dallas

Which  OpCon  Is  The  Best  For  The  Long  Term?  

       Customer  Records  

Page 73: Coupa 'Crank Up The Savings' Road Show - Dallas

TCO  To  The  Rescue  

TCO  Whitepaper   TCO  Calculator  Tool  

Page 74: Coupa 'Crank Up The Savings' Road Show - Dallas

Are  You  Familiar  With  Total  Cost  Of  Ownership  (TCO)  Analysis  ?  

§  Yes,  used  TCO  Analysis  before  §  Yes,  sort  of  familiar    §  No,  never  used  

Page 75: Coupa 'Crank Up The Savings' Road Show - Dallas

What  is  TCO?  Direct  Cost   Indirect  Cost  

Over  the  lifeCme  of  an  Asset  ..  

§  Hardware  §  Sohware  

§  InstallaCon  §  Training  §  Professional  Services  §  Upgrades  

Page 76: Coupa 'Crank Up The Savings' Road Show - Dallas

Why  Care  about  TCO?  

§  SoluCon  costs  vary  greatly  based  on  the  delivery  

model  

§  Need  a  simple  model  to  compare  cloud  vs.  on-­‐

premise/hosted  soluCons  

§  IniCal  terms  look  aKracCve  but  will  crush  you  in  

the  long  run  

Page 77: Coupa 'Crank Up The Savings' Road Show - Dallas

Key  Metrics  to  Consider  for  TCO  

§  #  of  Users  §  Expected  user  growth  

§  Spend  through  system  

§  Expected  growth  of  spend  through  system  

§  #  of  LocaCons  

Company  Profile  

§  #  of  ERP  instances  §  #  of  Other  IntegraCon  Points  

§  #  of  Custom  Fields  §  #  of  Complex  Approval  Rules  

Complex  

§  #  of  Purchase  Orders  §  #  of  Invoices  §  #  of  Catalogs  §  #  of  Suppliers  §  #  of  Punch-­‐outs  

Environmental  

Page 78: Coupa 'Crank Up The Savings' Road Show - Dallas

Cost  Drivers  For  Procurement  AutomaCon  

Cost Driver On-Premise Cloud

Software 1x Licensing Cost Annual Subscription

Hardware & Infrastructure Servers & Databases No fees

Configuration/Implementation Professional Services Set-up fees

Data Migration Extensive Minimal

User Training Required Lower Cost – Ease of Use

Annual Maintenance 19 – 20% of Software None

78

Page 79: Coupa 'Crank Up The Savings' Road Show - Dallas

Soft Costs & Gotchas���

Cost  of  Delaying  Savings    

•  Many  projects  never  get  started  

•  Savings  are  delayed  or  never  begin  

Project  Management  

•  Costs  of  engaging  with  IT  

•  Time  away  from  more  strategic  tasks  

•  Custom  forms  &  ?ields,  multiple  charts  of  accounts  

•  Special  features  can  double/triple  cost  

Complex  Requirements    

Page 80: Coupa 'Crank Up The Savings' Road Show - Dallas

4  Steps  for  TCO  Analysis  

Evaluate Functionality

Determine Initial/Upfront Costs

Identify Annual/Recurring Costs

Enter Data into TCO Tool & Compare Optons

Page 81: Coupa 'Crank Up The Savings' Road Show - Dallas

4  Steps  for  TCO  Analysis  

Evaluate Functionality

Determine Initial/Upfront Costs

Identify Annual/Recurring Costs

Enter Data into TCO Tool & Compare Optons

Page 82: Coupa 'Crank Up The Savings' Road Show - Dallas

4  Steps  for  TCO  Analysis  

Evaluate Functionality

Determine Initial/Upfront Costs

Identify Annual/Recurring Costs

Enter Data into TCO Tool & Compare Optons

Page 83: Coupa 'Crank Up The Savings' Road Show - Dallas

4  Steps  for  TCO  Analysis  

Evaluate Functionality

Determine Initial/Upfront Costs

Identify Annual/Recurring Costs

Enter Data into TCO Tool & Compare Optons

Page 84: Coupa 'Crank Up The Savings' Road Show - Dallas

§  $2  Billion  Manufacturer  of  Energy  Related  Materials  §  Decentralized  purchasing  -  Plant  managers  control  material  -  Services  procurement  (45%  of  spend)  black  hole  

§  ParCally  Centralized  AP  with  Imaging  -  1,200,000  annual  invoices  -  Limited  EDI/Electronic  Invoices  

§  Issues/Pains  -  Lots  of  paper/long  PO  approval  cycle  -  No  visibility  to  non-­‐PO  purchases    -  Late  payments/Missed  discounts  -  Too  much  manual  effort  

Case  Study    Fortune  100  Manufacturing  

Page 85: Coupa 'Crank Up The Savings' Road Show - Dallas

 Cost Categories Year 1 Year 2 Year 3

Cloud Traditional and Network

Cloud Traditional and

Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Typical Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

Case  Study    Fortune  100  Manufacturing  

Page 86: Coupa 'Crank Up The Savings' Road Show - Dallas

86

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Typical Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  

Page 87: Coupa 'Crank Up The Savings' Road Show - Dallas

87

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  

Page 88: Coupa 'Crank Up The Savings' Road Show - Dallas

88

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network

One Time Costs Software & Hardware

Software License $137,500 Software Upgrades $15,000

Hardware & Infrastructure $35,000 Software & Hardware $0 $172,500 $0 $15,000 $0 $0

Configuration & Implementation: Data migration $0 $75,000

Services Procurement $0 $60,000 Catalogs $0 $22,500

Punch-outs $0 $15,000 $0 $15,000 $0 $15,000 Professional services $0 $175,000

Program management (vendor) $0 $150,000 Training $0 $90,000

Typical Configuration & Implementation: $0 $622,500 $0 $15,000 $0 $15,000 Additional Complex Environments Set Up:

Multiple charts of accounts $0 $0 $0 $60,000 $0 $60,000 Other integrations e.g. HR, Budget $0 $10,000

Custom forms $0 $4,000 $4,000 $4,000 Custom fields $0 $0 $2,000 $2,000

Custom approval rules $0 $3,500 $3,500 $3,500 Additional Set Up $0 $17,500 $0 $69,500 $0 $69,500

Total One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

One  Time  Costs  

Page 89: Coupa 'Crank Up The Savings' Road Show - Dallas

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

89

Annual  Costs  

Page 90: Coupa 'Crank Up The Savings' Road Show - Dallas

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

Page 91: Coupa 'Crank Up The Savings' Road Show - Dallas

Cost Categories Year 1 Year 2 Year 3 Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network Annual Costs

Maintenance / Hosting / Subscription Hardware / infrastructure maintenance $5,000 $5,000

Software maintenance $27,500 $27,500 Application Support $50,000 $50,000 $50,000

Procure to Pay subscription $650,000 $300,000 $650,000 $300,000 $650,000 $300,000 Req to PO subscription

Expense management subscription Contracts module subscription $0 $50,000 $0 $50,000 $0 $50,000 Payables module subscription

Spend analysis subscription $0 Transaction fees $0 $400,000 $0 $400,000 $0 $400,000

Hosting fees Maintenance / Hosting / Subscription $650,000 $800,000 $650,000 $832,500 $650,000 $832,500

Services & Fees: Supplier enablement $0 $50,000 $0 $50,000 $0 $50,000

Supplier fees $0 $1,200,000 $2,000,000 $2,400,000 Services & Fees $0 $1,250,000 $0 $2,050,000 $0 $2,450,000

Total Annual Costs $650,000 $2,050,000 $650,000 $2,882,500 $650,000 $3,282,500 Opportunity Costs

Savings lost from continued maverick spend $0 $1,250,000 $0 $937,500 $703,125 Savings Lost $0 $1,250,000 $0 $937,500 $0 $703,125

Total Costs $650,000 $4,112,500 $650,000 $3,919,500 $650,000 $4,070,125

Annual  Costs  

Page 92: Coupa 'Crank Up The Savings' Road Show - Dallas

Year 1 Year 2 Year 3 Procure to Pay Costs Summary Cloud Traditional

and Network Cloud Traditional

and Network

Cloud Traditional and

Network One Time Costs $0 $812,500 $0 $99,500 $0 $84,500

Annual Costs $650,000 $630,000 $650,000 $727,500 $650,000 $742,500

Total Costs $650,000 $1,442,500 $650,000 $827,000 $650,000 $827,000

Annual Differerence $792,500 $177,000 $177,000

Total Three Year Savings = $1,146,500

Results  

Page 93: Coupa 'Crank Up The Savings' Road Show - Dallas

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Initial Investment Year 1 Year 2 Year 3

Mil

lio

ns

On-site Development Costs

Cloud Development Costs

Initial Investment Year 1 Year 2 Year 3On-site Development Costs $0 $3,855,000 $3,822,000 $3,987,625Cloud Development Costs $0 $850,000 $850,000 $850,000

Cumulative Total Cost of Ownership

Results  

Page 94: Coupa 'Crank Up The Savings' Road Show - Dallas

Calculate  Your  Own  TCO  

TCO  Whitepaper   TCO  Calculator  Tool  

Page 95: Coupa 'Crank Up The Savings' Road Show - Dallas

Closing Remarks������

Tony Wessels���Vice President, Marketing