tomkins spend visibility project kick-off meeting

A R I B A® C O N F I D E N T I A L 2 0 0 9

Tomkins Spend Visibility Project

Kick-off Meeting

May 17, 2010

Keith Luers, C.P.M.SV Project Mgr


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Agenda

Introductions

Spend Visibility Overview

Project Scope

Project Overview Roles Timeline Project Phases

Data Acquisition Overview

Enrichment Overview

Designated Support Contacts

Next Steps


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Software and Solution

AribaAnalysis

ReportingUI

Ariba DataEnrichment

Processing Engines,

Supplier DB, Knowledge

Base

Ariba Analysis Software• Hosted • Configurable database with reporting UI

Ariba Data Enrichment Software• Hosted• Processing engine• Supplier database• Knowledge (rules/content) databases


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Software and Solution

AribaAnalysis

ReportingUI

Ariba DataEnrichment

Processing Engines,

Supplier DB, Knowledge

Base

Ariba Analysis Software• Hosted or installed• Configurable database with reporting UI

Ariba Data Enrichment Software• Hosted or installed• Processing engine• Supplier database• Knowledge (rules/content) databases

Spend Visibility

• Fully hosted Analysis and ADE• Project Management services provided to enable data

collection and validation• Data Enrichment services provided to classify transactions and

enrich supplier information• Standard data schema enables robust OOTB reports• Web deployed Analysis user interface


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Spend Visibility Enables Best In Class Sourcing

Visibility should be the launching pad for all sourcing and procurement activities Provides high level view of corporate spend for strategic planning Enables supplier evaluation for spend and parent/child leverage opportunities Fuels the drive for opportunity visibility Allows to answer key questions like - What we spend our money on and

who we spend it with - across multiple source systems and company sites, etc

IdentifyOpportunity

DevelopStrategy

Source &Negotiate

Implement Contract & Execute

Monitor &Manage

Invoice& Pay


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Agenda

Introductions


Project Scope

Project Overview Roles Timeline Project Phases


Enrichment Overview


Next Steps


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Project Scope

Number of Source Systems: 17

Estimated Annual Spend: $2B Number of Users: 200 Max

Initial Deployment: 12 months historical data (2 phases)

Refresh Cycles: Quarterly

Refresh Data: 3 months worth of data


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Project Scope

Service Level Agreement: Ariba certified commodity classification on a minimum of 90% of customer

spend

• 95% accuracy of Ariba classifications when supported by data

• 90% accuracy of Ariba classifications when data does not support 95% accuracy

Supplier enrichment for a minimum of 90% of customer spend

• 95% accuracy of parentage for Supplier Records with name and address information – minimum of country and city

• 90% accuracy of parentage for Supplier Records when no country or city information provided

Implementation of customer “Custom Taxonomy” of up to six levels


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Agenda

Introductions Spend Visibility Overview Project Scope Project Overview

Roles Timeline Project Phases

Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps


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Project Overview: Roles

Ariba SV Project Manager – Daily responsibility for execution of hosted Spend

Visibility program ADES Manager and Team – Responsible for data enrichment process

Tomkins Gates Customer SV Champion – Overall responsibility for success of Spend

Visibility program Customer SV Project Manager – Daily responsibility for execution of

Spend Visibility Manager (may be Champion) Business Owner(s) – Individuals who understand client business data

from a user prospective, facilitates the validation spend based on extracted data (Typically one representative from each business unit)

IT Owner(s) – Individual(s) within the client organization who own responsibility for data extraction and transformation if required


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Project Overview: Timeline (Typical)C

lient

Arib

a PM

AD

ES • Enrichment Assessment• Set timeline

• Train Client on Data Schema• Initiate Analysis site

deployment• Receive, validate, and load

data

•Extract data•Approve Spend

Rev

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refin

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AA

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QA

, pub

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•Tr

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SV A

naly

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Collect and Validate Data4 - 8 Weeks

Data Enrichment5 – 9 Weeks

Deployment1 Week

Refinement1 – 2 Weeks

Apply Feedback

Perform EnrichmentAutomated + Manual

Rev

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Project Phase: Data Collection & Validation

Goal:

To collect customer’s spend data in the most complete and form fitting way possible.

Activities:

- Conduct the KickOff Meeting

- Train the customer on the data schema

- Proactively work with client on issues/questions to ensure spend data is collected in the right format

- Use the visibility tool to validate data which has been submitted.

• Enrichment Assessment• Set timeline

• Train Client on Data Schema• Initiate Analysis site

deployment• Receive, validate, and load

data

• Extract data• Approve spend


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Project Phase: Data Enrichment

Goal:

To classify and enrich customer’s spend providing easy segmentation and thus visibility into spending patterns.

Activities:

- Coordinate enrichment and timeline with the ADE Manager

- Present project plan and timeline to customer

- Educate customer on Ariba Analysis Tool and Enrichment Process

- Load and Validate Enrichment results into the Ariba Analysis Tool

Perform EnrichmentAutomated + Manual

Rev

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Project Phase: Refinement ** Note will only do after 2nd cycle

Rev

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Apply Feedback

Goal:

- Educate the customer on building reports and the refinement feedback form

- Crete report templates

- Collect and apply feedback

-Combination of manual feedback and automatic through Analysis tool


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Project Phase: Deployment

•Lo

ad fi

nal d

ata,

QA

, pub

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•Tr

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SV A

naly

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Goal:

To publish the approved data on the customer’s instance and enable them to use their site

Activities:

- Load final data

- QA final data

- Push final data to Presentation

- Train customer on Analysis

- Customer satisfaction survey


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Tomkins Gates Specific Project Plan


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Agenda





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Data Acquisition Overview The Ariba Data Acquisition Schema

A roadmap for the customer to create files in the proper format Helps the customer to define which data they want to include for upload Provides technical “do’s” and “don’ts” for the IT owner to follow in data

extraction Defines the various tables and fields, and the requirements for their

successful creation Is the primary and final reference for all matters relating to data extraction

and file creation.


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Where does the data come from? Spend Data refers to the accounts payable data or any other supporting

data including but not limited to purchase order data, purchasing card data, and third party payable data which the client provides to Ariba for processing during the Spend Visibility project. This data may include transactional data and data identifying client suppliers from any accounts payable systems.

A Source System generally refers to a standalone software installation where actual payment transaction data is available (typically AP systems).

The creation of a complete data set for a given Source System may include feeds from multiple feeds a number of systems to augment the AP data.


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Invoice #Invoice Line Description Part Number Supplier # GL description Unit Price Quantity

Supplier Name Supplier Address

Part Description

PO Number

PO description

12453-1Computer maintenance V768

IT HW - Maintenance 1100.00 1 IBM 2565 Maple Lane 1654851-1

Maintenance for green screen

37953-1 SCREW 13654-45 C326Misc Hdwre - Direct 0.045 1000 Fastenall 102 Industry Blvd

1/4-20 1" PAN HD 4563257-1

1/4-20 1" PAN HD


1/4-20 5" PN HD 4563257-3

1/4-20 5" PN HD


1/4-20 4" TR HD 4563257-2

1/4-20 4" TR HD

39845-1 Brochures W458Promotions - Literature 2500.00 1 Ditto 45 Main St

Invoice (payment) information found in an AP system describes the transaction but

does not contain a lot of related detail1 invoice system = 1 SV Source System

Supporting supplier detail may be found in a vendor master system

1 vendor master ≠ 1 SV Source System

PO and item master detail may be found in an MRP system1 MRP system ≠ 1 SV Source System

Three separate source systems = 1 SV Source System

Example of Related Systems


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Invoice #Invoice Line Description

Part Number Supplier # GL description Unit Price Quantity

AP System Name

12453-1Computer maintenance V768 IT HW - Maintenance 1100.00 1 Oracle

37953-1 SCREW 13654-45 C326 Misc Hdwre - Direct 0.045 1000 Oracle



39845-1 Brochures W458 Promotions - Literature 2500.00 1 Oracle

165-1 IT Services 586425 Infrastructure 2300.00 1 SAP

568-1 hwre 13654-45 845321 Inventory 0.032 1000 SAP



851-1 Literature 365789 Advertising 5512.00 1 SAP


To capture all the spend, transactions from both Oracle AP and SAP AP are required = 2 SV Source Systems

Oracle = 1SV Source

System

SAP = 1SV Source

System

Example of Independent Source Systems


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Data Acquisition Overview Questions The following questions need to be answered prior to an extract being generated

What constitutes an Accounts Payable (AP) Spend Event?• Invoice entered for eventual payment

• Invoice receipt

• Invoice payment

• PO receipt

• Other? What types of transactions/spend should be included/excluded?

• Invoice supported by PO

• Invoice without supporting PO

• P-Card

• Expenses

• Check Requests

• Wire Transfers

• Intra/Inter-Company

• Payroll (should probably be excluded from extract)

• Other Transaction Types


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Data Acquisition Overview Questions Which ERP date field should be used to determine transactions that are in

scope/out of scope? Which timeframe should the extract include? 12 months per contract How should taxes be handled? Is it necessary to flag direct vs. indirect spend? Is it necessary to flag Internal vs. External Suppliers? Are there specific requirements for enrichment we should be aware of upfront?


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Data Acquisition Overview – Next Steps

A formal Data Acquisition Schema training will be right after this overview session

The following team members should be present: Ariba Project Manager Customer Project Manager Business Analysts or Business Users IT Resources (person(s) performing extracts)


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Agenda





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Data Enrichment Overview

The Ariba Data Enrichment (ADE) team will focus on two areas for enrichment: Supplier - Provide parentage and enriched supplier information.

Invoice - Classify to a commodity code based on descriptive and ‘hint’ fields available in the customer-provided data.


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The following fields will be used to assign supplier parentage during the supplier enrichment: Name Address City State Zip Code Country


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Supplier Provided

Enriched Supplier Parent

Spend with the Palmer House Hilton was $4,456, but total spend with Hilton Hotels Corporation as a parent is $577k

Enriched Supplier

Supplier Enrichment Example Outcome


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Data Enrichment Overview Supplier Level Hierarchy in Analysis

Level 1 (highest): Active Supplier / Low Activity Supplier• Shows enriched supplier parent for top 75% of spend or line items. The

remaining 25% is grouped in one value as Low Activity Suppliers Level 2: Supplier Parent (enriched)

• Parent of raw supplier as enriched

• For the active suppliers, this will be the same as Active Supplier Level 3: Supplier (enriched)

• Supplier name after it has been Enriched Level 4: ERP Supplier

• Raw supplier as imported from source system (ERP)

• Basis for supplier dimension


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The following hint fields will be used to help perform classification during the invoice enrichment: Invoice & PO Descriptions Part Descriptions Suppliers ERP Commodity Descriptions GL Accounts Invoice Flex Fields (1-3)


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Customer Provided Information Ariba Classifications

Invoice Classification Example

This example shows how the ADE classification process looks at multiple sources of information to make a classification to UNSPSC


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Invoice Enrichment Ariba Analysis allows users to report on invoice commodity classifications

using the following fields

• UNSPSC – United Nations Standard Products and Services Code

• ACT – Ariba Classification Taxonomy



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UNSPSC Level 1: Segment

• Example: 44 – Office Equipment, Accessories and Supplies

Level 2: Family

• Example: 44 12 – Office Supplies

Level 3: Class

• Example: 44 12 19 – Ink and Lead Refills

Level 4: Commodity

• Example: 44 12 19 03 – Pen Refills



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ACT Foundation is UNSPSC New codes are being constantly added from 3 different sources:

• Newer version UNSPSC table when it is available.

• Leverage other industry taxonomies as benchmarking (e.g. Wand, eClass, NATO etc)

• SV customers' specific needs (e.g. Ingredients-Fruits-Fresh Fruits-Fresh Oranges)

Offers six level - allows more detailed classification results than UNSPSC



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ACT Level 1, Example: Chemicals including Bio Chemicals and Gas Materials Level 2, Example: Compounds and Mixtures Level 3, Example: Inorganic Compounds Level 4, Example: Inorganic Acids Level 5, Example: Nitric Acid Level 6, Example: Pure Nitric Acid



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InferenceEngine

Weighted Triangulation

EnrichedSpend Data

EnrichedSpend Data

Source Data HintsSource Data HintsSupplier Name

Supplier Address

Expense Description

GL AccountCommodity Description

Part Description

Invoice Description

other hints

SupplierEngine

RationalizationEngine

Business RuleEngine

39M+ Supplier Database Matching & Parentage Enrichment: Industry (SIC and NAICS), Revenue

Text Reading Learned Models

Custom Mapping Custom Rules

Data Enrichment Overview Data Enrichment Classification Methodology


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Agenda





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Designated Support Contact (DSC)*

Allows the user to submit administrative requests including:

• Master data updates, site customizations, legal agreement changes, and enhancement requests.

Acts as liaison for end-user requested changes Interfaces with Ariba regarding end-user issue trends DSCs automatically receive the following types of notifications:

• Scheduled/unscheduled downtime

• Security information/bulletins

• Information on new product releases, new features and service pack availability

Full access on Connect.ariba.com

*Designated Support Contact access is available for up to 3 contacts per solution. If you have any questions, please contact [email protected].


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Becoming a Designated Support Contact Register on Connect

Navigate to https://connect.ariba.com Click the “New User” link Complete the brief registration form After you set up your account, you will receive an email from Connect Support

when your account is activated. Please respond to the email from Connect Support and request DSC access.

If you have any issues logging in or creating the account on Connect, send an email to [email protected].


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Agenda





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Next Steps

Data schema training Receive/review extracted data Begin uploading and validating data Validate and approve spend Enrichment Process

Automated Process Manual Process Refinement drop and feedback

Deployment Survey


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Instance Set-Up (Hosted Site) URL Convention

http://tomkins.sourcing.ariba.com/ Currencies

USD Default Up to 5 additional

Unit of Measure Metric (gram, kilometer) US (pound, mile)

Source Systems Quantity - 17 Names – see supplied list to fill out


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Communications Plan

Weekly Status Call (best days/times?) Weekly Project Status Report & Project Plan


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Support and Escalation

Project Manager – Keith Luers,C.P.M. Data Issues / Day to day project support Analysis support and training [email protected]

719 260 6333

Spend Visibility Support https://connect.ariba.com Analysis site via a webform 1-866-218-2155

tomkins spend visibility project kick-off meeting

Documents