procurement innovation in the cloud 02 march, 2016 · source: ardent partners and deloitte cpo...

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Procurement Innovation in the Cloud

02 March, 2016

David HobsonBusiness Development Director – Cloud Applications


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


Top Boardroom Priorities

3

Source: “Inside The 2015 Boardroom Priorities”, Constellation Research, December 2014

Readiness for Inorganic Growth

Efficiency in Post-merger Integration

Growth From Non-traditional Markets

Demand for Faster Innovation CyclesRapid Response to Non-traditional CompetitorsDigital Transformation of the Business


Transforming how industries create value

Digital Technologies

RETAIL

Commerce Anywhere on Any Device

HEALTH SCIENCES

Personalized Medicine

FINANCIAL SERVICES

Online Banking and Mobile Payments

COMMUNICATIONS

Machine-to-Machine Communications

MOBILE& SOCIAL

$1+ trillion in Mobile eCommerce revenueby 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 and Deployment

$

HOSPITALITY

“Above Property” Cloud Solutions

4


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


Top priorities

The Modern Procurement Executive

Source: Ardent Partners , CPO Rising. The Hackett Group 2014 Procurement Agenda

Ensure cost savings to maintain operating margins

Expand procurement’s effectiveness and influence

Support company growth with existing headcount

6


Quantifying key business issues

Strategic Procurement Scorecard

Source: Ardent Partners and Deloitte CPO Survey

39%

55%of addressable spend is actually sourced

7

60%of spend is contract compliant

39%

50%of CPOs say procurement-related risk has increased in the last year

69%of CPOs say they need to improve process efficiencies

!


Impediments to procurement’s effectiveness

Need to Modernize Strategic Procurement Process

Missed cost savings and lack of influence over spend

Inconsistent negotiation, contracting and risk practices

Long cycle times due to lack of automation

Lack insight into risk, qualifications and compliance

No linkage between sourcing and contracting processes

8

Source: The Hackett Group, Deloitte Global CPO Survey 2013 and Aberdeen Group, Effective Procurement Study

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 9

Key capabilities that improve procurement’s effectiveness and influence

Oracle Delivers a Modern Strategic Procurement Solution

Increase influence over spend and sourcing practices

Manage supplier risk, qualifications and contract compliance

Improve efficiency through more effective collaboration

Simplify, standardize and automate processes


ProcurementStrategic Procurement

Maintain accurate supplier information and qualifications

Manage Suppliers Source Contract

Collaborate and negotiate with your suppliers

Improve supplier relationships and accountability

Maximize negotiated savings Improve contract compliance and minimize risks

Enforce contracting standards and controls


ProcurementTransactional Procurement

Broaden adoption with a consumer buying experience

Purchase Settle

Leverage automated invoicing and scanning

Simplify purchasing process and realize negotiated savings

Streamline invoice matching and supplier payments


Enhance your sourcing, contracts and supplier management

Modern Strategic Procurement Capabilities

Ensure greater cost savings through better negotiations, bid analysis and award recommendations

Qualify suppliers to support compliance, manage risk, and improve award decisions

Reduce cycle times with easy navigation to help users find what they need and prioritize actions

Increase cross-functional communication and information sharing through social collaboration

Analytics Workflows

User Experience

Data

Simplify your sourcing activities with guided navigation, negotiation styles and intuitive tools

Standardize contracts and enforce policies using clause libraries, templates and approval workflows


Delivers lower cost and faster time-to-value

Increasing Procurement Cloud Adoption

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


New World - Cloud ERPOld World - ERP On Premise

Network

Data CentreCosts

Servers

Disk

Disaster/Recovery Upgrades and Patches

Customisations

IT Staff

Purchase Licenses

Annual Support

CapEx OpEx

Super UsersConfigure system

Standard Processes, easier deployment

Latest Software Maximum Business Benefit

End Users Finance and Procurement

Rent a Flexible Service

VS

Cloud Applications are More Adaptable and Agile

With SaaS solutions, easier & faster deployment and more rapid innovation at reduced cost!

14


Modern cloud solutions for today’s challenges

Enhance Your Oracle On-Premise Procure-to-Pay

Procurement Contracts

Sourcing

SupplierQualification Mgmt.

On Premise Procure-to-Pay

E-Business Suite PeopleSoft JD Edwards

Enhance your procure-to-pay solution with modern strategic procurement capabilities

Benefit from modern digital technology including social collaboration, embedded analytics and mobile capabilities

Faster time to value with lower upfront costs and investment risks to gain modern cloud applications


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 A Complete Source to Settle Solution

Negotiations

Invoices and Payments

RequisitionsContracts

Suppliers

• Collaborative Negotiations

• Enforceable Contracts

• Streamlined Procure to Pay

• Supplier Qualification Management

Receipts

Manage Suppliers

Source Contract Purchase Settle

Procurement Contracts

SourcingSupplier Qualification

ManagementSupplier Portal

Self Service Procurement Purchasing Payables

Purchase Orders

Procurement Analytics


Cloud Applications

Applications Foundation

Oracle’s Modern Cloud for the digital future

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CX Foundation HCM Foundation ERP Foundation

Marketing Commerce

Innovation Management

Sales Service

ProjectsTalent Management

Procurement Planning & Budgeting

Move at the speed of business2

Standardize on a modern applications platform4

Unify processes, data, access controls and business intelligence

5

Digitize business interactions1

Enrich apps with PaaS6

ratings in SaaS categories

18 leader3

CPQ


Our Cloud Transformation

200+Countries

15 yearsManaging Enterprise

Clouds

14 No.1Cloud Product Categories

20Data Centers in

75%+of Fortune 100

Run Oracle Cloud

70M+Users on the Oracle

Cloud Every Day

31B+Transactions on the Oracle Cloud Every

Day

19 of 20Top Cloud Providers

Run on Oracle


New Procurement Cloud Customer Examples

Oracle Confidential


Delivering a platform to support your digital business

Delivers standardization

Enables rapid innovation

Keeps pace with change

Thank You

procurement innovation in the cloud 02 march, 2016 · source: ardent partners and deloitte cpo...

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