procurement digital operating model

JUNE 2018

PROCUREMENT –DIGITALOPERATING MODEL

ACCENTURE VISIONEND-TO-END DIGITAL TRANSFORMATION CAPABILITIES

2

Designing digital

business & technology

strategies, defining and

sizing business and

operating models to

seize benefits

Supporting clients in

their transformation

journeys to compete

in today digital

context

Enhancing business

models with interactive,

analytics and/or mobility

digital solutions and

services

Providing leading

edge technologies

within a dual velocity

(legacy/ innovation)

IT landscape

Implementing & operating

business processes,

system landscapes &

maintenance of

applications (IaaS)

WESHAPE

WETRANSFORM

WEDIGITIZE

WEPOWER

WEOPERATE

Copyright © 2018 Accenture. All rights reserved.

WE ARE SUPPORTING DIGITAL PROCUREMENTSET OF DIGITAL OPERATING MODEL ENABLING TOOLS

3

VOICE OF THE CUSTOMER DESIGN THINKING DIGITAL VISION GOVERNANCEPROCUREMENT MASTERY

PROCESS FRAMEWORK ORGANIZATION BLUEPRINT DIGITAL OPERATING MODEL BLUEPRINTSKILL ASSESSMENT CATEGORY SEGMENTATION

BUSINESS CASE IMPLEMENTATION ROADMAPBALANCED SCORECARDDIGTAL STRATEGY CHANGE MANAGEMENT JOURNEY


HOW TO ENHANCE PROCUREMENT?

WHAT

Future of Procurement, in

particular how digital is

driving and enabling the

change

01HOW

Which capabilities,

enablers and

organizational structure

are needed to implement

a Procurement digital

operating model

02

PROCUREMENT IS EVOLVING...

5

1990s ‘00-’05 2007 2008 2009 2010 2011 2012 2013 2014 2017 2018 2020

PROCUREMENT COMES OF AGE

GLOBAL RECESSIONS CHANGES EVERYTHING

DIGITAL DISRUPTION

PROCUREMENT EVOLVES

Procurement Themes / Focus

Maturing of traditional procurement capabilities

Global Recession forces companies to make aggressive cuts in the face of volatility

Digitization changes how to buy & interact with suppliers & customers

Procurement begins to reinvent their core capabilities

Contract Management.

Strategic Sourcing

Category Mgmt.

R2P Optimization

SRM; SBM

Strategy; Op. Model

Cost Control Buying Channel Mgmt.

Risk and Regulation

Demand Management

Contract Management

Digital Ecosystem PredictiveInsights

Procurement as a Service


…BEING CHALLENGED & ENABLED BY DIGITAL

DIGITAL OFFERS OPPORTUNITIES IN TERMS OF …

PROCUREMENT IS CHALLENGED WITH THE NEED FOR …

6

• Enabling virtual enterprise & liquid workforce

• Optimizing user experience

• Harnessing intelligent automation

• Application ecosystems & platform economies

• Leveraging big data to predict disruption

• Ensuring resiliency & digital trust

• …

• Agile digital Operating models

• Consistent stakeholder interaction

• A rationalized tail

• A streamlined S2P solution landscapes

• The single source of truth

• Efficient supplier Risk Management

• …


SETTING A NEW PROCUREMENTKEY COMPONENTS OF A DIGITAL OPERATING MODEL

7Copyright © 2018 Accenture. All rights reserved.

DIGITAL OPERATING MODEL

CORPORATE GOALS SUPPORTED BY PROCUREMENT STRATEGY

SETTING DIRECTION

ELEMENT OBJECTIVE

MAINTAIN DIRECTION & COMPLIANCE

GOVERNANCE

ALIGN ON ROLES &

CAPABILITIES

ORGANIZATION

ALIGNMENT

SET STANDARDS FOR

COMPLIANCE

POLICY

SUPPORT DATA-LED

DECISION MAKING

BUSINESS

PERFORMANCE

ENABLE PROCESSES

& DATA

DIGITAL

LANDSCAPE

DEVELOP TALENT &

MANAGE CHANGE

PEOPLE

MANAGEMENT

DRIVE CONSISTENT,

EFFECTIVE

EXECUTION

PROCESS

Change Management

A NEW DIGITAL OPERATING MODEL WHICH QUESTIONS NEED ANSWERS?

8

• What collaboration models between Group and Local will we

adopt to drive a next level of spend influence?

• How do we enhance the role of Procurement to drive

participation and involvement throughout the organization?

• How will processes, policies & technology be organized to drive

compliance and continuous improvement?

• How will categories be distributed between global- regional-

country-site?

• Which processes / roles will we insource or outsource?

• What processes will be performed and where: global-regional-

country-site?

• At a detailed level, what are roles and responsibilities of Group vs.

Local? How will the reporting lines be organized?

PROCUREMENT STRATEGY

CORE PROCESSES FOUNDATION

DIGITAL ENABLERS

Visioning Workforce Digital ChangeFunctional Remit

EcosystemManagement

DemandManagement

CategoryManagement

Risk &Regulation

SupplierManagement

InsightManagement

SourcingManagement

ContractManagement

RequisitionTo Pay

Control Framework

Process Management

People Management

Change Management

Information Management

Performance Management

Source to Pay Mobile

Cloud Analytics Cognitive IIoT

Social Media

Level 1 - Digital Operating Model Framework

non- exhaustive


9

CORE PROCESSES

STRATEGIC(insource)

TRANSACTIONAL(outsource)

FOUNDATION

STRATEGY

VISIONING

Corp./Funct.Strategy

EcosystemStrategy

WORKFORCEWorkforceStrategy

DigitalWorkforce

DIGITAL

DigitalScouting

DigitalRoadmap

CHANGE

ChangeStrategy

KnowledgeStrategy

FUNCTIONAL REMITValueRealization

StrategicRoadmap

ManageRelationships

CollaborativeSupplier Mgmt.

CollaborativeFinancing

InnovationMgmt.

CollaborativeSourcing

CircularEconomy

Value ChainPartner Mgmt.

InnovationRealization

Zero BasedSpend Mgmt.

Strategic Spend Evaluation

CategoryStrategy

Supply Base Mgmt.

Financial Asset Mgmt.

Buying Channel Strategy

Tail SpendPurchasingSolutions

Compliance Mgmt.

RegulatoryCompliance Risk

Supply Risk

Information Security

SustainabilityCompliance

Supplier Risk

Price Risk

Commodity Price Risk Mgmt.

SupplierStrategy

SupplierCollaboration

SupplierDevelopment

Supplier Life Cycle Mgmt.

Supplier Performance Mgmt.

MarketAnalytics

InternalAnalytics

FinancialAnalytics

SourcingStrategy

Negotiation

SourcingExecution

Spot Buying

Contract Development

Contract Life Cycle Mgmt.

Contract Administration

RequisitionTo Order

Receipt To Pay

DIGITALENABLERS

SOURCE TO PAY MOBILE CLOUD ADV. ANALYTICS COGNITIVE IIoT

Control Framework

Governance Policies &Standards

Business Process Management

ProcessQuality

SpendTaxonomy

People Management

Talent LifeCycle Mgmt.

PerformanceMgmt.

Business Performance Management

CPODashboard

BusinessReviews

Change Management

ChangeTracking

Communications

Information Management

Master DataMgmt.

ContentProvider Mgmt.

EcosystemManagement

DemandManagement

CategoryManagement

Risk &Regulation

SupplierManagement

InsightManagement

SourcingManagement

ContractManagement

RequisitionTo Pay

ORGANIZATION

STRATEGIC (insource) TRANSACTIONAL (outsource)

SOCIAL MEDIA

DETAILED VIEW OF THE DIGITAL OPERATING MODEL Level 2 - Digital Operating Model Capability Map


FUTURE PROCUREMENT PROCESSESRE-DESIGN THE USER EXPERIENCE

10

USER-CENTRIC DESIGN


DIGITAL ENABLERSUSER EXPERIENCE ENABLING SOLUTIONS

11

Change Management & Communications Prepare employees to

adopt the Direct Access Buying solution and get them excited for a more

simplified, digital experience

Compliance & Reporting Enhance compliance (policy / preferred

supplier / pricing) and capabilities for increased visibility to support

adherence to process and policy

Supplier Portal Enable supplier registration and onboarding and master

data self-service

Process Improvements Implement multiple process and technology

improvement projects identified to improve overall buying efficiency and

effectiveness

Contracting Model Define capabilities, processes, organization, decision

making framework, roles and responsibilities, technology enablers, and

service required to support business

Solution Design & Architecture Design and deliver a buying

experience that the business wants to and can happily consume, use

and integrate into their way of working

Preferred Supplier Strategies Establish preferred suppliers for

business users to comply indirect Access channels, and close contacts

if and as needed

P-Card Increase utilization and update the P-card process, policy to

drive compliance and ultimately, reduction of new supplier adds

Catalogue Expansion Expand purchasing capabilities within

categories that are able to drive towards end user self-service and

simplified buying process

Online Spot Buy Implement spot buy capability to support

compliance and buying efficiency, and create sustainable autonomous

spot buy process

Tail Spend Management Manage low value / tactical sourcing

transactions, increasing value proposition to BU’s and minimizing their

activities related to buying

Buyer Portal Create a single destination for business users to buy

compliantly and efficiently and ultimately, support a more empowered

end user


DIGITAL ENABLERSNO ONE-SOLUTION TO SERVE ALL DIGITAL NEEDS

PROCUREMENTSTRATEGY

RELATIONSHIP MANAGEMENT

CATEGORY MANAGEMENT

REQUISITION TO PAY

SUPPLIER MANAGEMENT

CONTROL FRAMEWORK

KEY

SOLUTIONS

Accenture Robotics

“Amelia”

Seal

LeanLinking

SpendLead

RiskMethods

SirionLabsBeroe

SAP(includes Ariba, Fieldglass,

Concur)

Nallian


ORGANIZATION

OF ONE

VIRTUALLY INTEGRATED

ENTERPRISE

CLOUD

ANALYTICS

COGNITIVE

PROCUREMENT FUNCTION OF 2020 DIGITALLY DRIVEN AND STRATEGICALLY FOCUSED

Cost of

Procurement(as % of spend)

2020201520112007

Insightful Spend

Understanding(as % of spend)

Contract/Policy

Compliance(as % of spend)

Controlled

Suppliers(as % of suppliers)

0.2%

100%

98%

100%

1.0%

10%

40%

0.7% 0.6%

20% 60%

40% 50% 70%

80%50%

Smaller, more cost-efficient procurement

organization supported by digital platforms and

technologies

Full control through close cooperation with

strategic suppliers in the ‘virtually integrated

enterprise’

Cognitive systems to support procurement

professionals increasing compliance, automation

and quality

Extended use of advanced analytics together

with the industrial internet of things leading to

meaningful spend insights

internal

external


Accenture Strategy operates at the intersection of business and technology.

We bring together our capabilities in business, technology, operations and function

strategy to help our clients envision and execute industry-specific strategies that

support enterprise-wide transformation. We focus on issues related to Supply Chain &

Operations Digital Strategy and Competitive Agility.

For more information, follow @AccentureStrat on Twitter or visit

www.accenture.com/strategy.

OBRIGADO


procurement digital operating model

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