SAVE WITH EASE

Gain Better Visibility Generate Greater Savings Maximize ROI

with Zycus

better visibility for

Actionable Spend Analysis

greater savings

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Actionable Spend Analysis

It (Zycus Actionable Spend Analysis Solution) quickly finds opportunities, prioritizing them based on immediate impact of

expense reduction or margin improvement, and suggests the possible long-term improvements. This new enhancement provides

procurement visibility and a savings opportunity pipeline. Procurement and sourcing teams will be impressed by the product’s

features and functionality.

The Zycus Actionable Spend Analysis Solution presents

procurement stakeholders a platform to aggregate,

cleanse, classify and enrich cryptic, multilingual spend

and supplier data to build a savings pipeline. This spend

management infrastructure facilitates comprehensive

sourcing performance management and helps to reduce

maverick spend, increase contract compliance,

rationalize suppliers, manage categories, and track

savings. This next generation solution can be quickly

deployed in a SaaS mode to provide a transparent,

automated and repeatable spend analysis solution to

achieve consistent savings, year on year, every year.

Mickey North Rizza,

Research Director, Procurement and Sourcing Practice, AMR Research

n Automated Spend Data and Supplier Classification

n Language agnostic, works even on poor quality data

n UNSPSC or any taxonomy of choice

n Easy to use spend reports that are designed for sourcing professionals

Opportunity Finder with pre-built

savings/compliance identification

techniques

Objective, collaborative and result oriented

process

Prioritize and finalize opportunities through

a pipeline based process

Leverage existing applications through

re-use

Flexible deployment, SaaS or behind

the firewall

Minimal dependance on IT or external

consultants through complete automation

CREATE GLOBAL SPEND VISIBILITY

Actionable Spend

Analysis

GENERATE MORE SAVINGS MAXIMIZE ROI

Spend Analysis today is much more than spend

visibility. According to Aberdeen's Spend Intelligence

Benchmark report 2006, 78% of organizations cite

cost savings as the top driver for Spend Analysis in

their respective companies. How many of them are

actually achieving it? The answer is - very few. Zycus

has taken a radically different approach in designing a

solution that can be easily used by sourcing

professionals without any IT support to classify spend

data and find savings opportunities.

Zycus Actionable Spend Analysis

If you were previously looking at Zycus as just a focused classification and enrichment provider within an integrated spend

visibility deployment, you owe it to yourself to see how far they've come on the analytical and visual side.

Jason Busch,

Spend Matters

Solution Architecture

Data Import/Export

Scheduler

Data ExtractionServices

System agnostic

Schedule based

Multilingual capability

Autoclass

Item Classification

Supplier Classification

Accurate

Consistent

Granular Classification

Actionable Analytics

Opportunity Finder

Pipeline based

Opportunity

Management process

Report Explorer

Objective based analysis

Opportunity management

Detailed spend visibility

AutoClass

By classifying all purchasing transactions at the source, AutoClass should provide significant benefits in terms of increased

data integrity and superior sourcing decisions brought about by increased spend visibility.

Gary Reiner,

Chief Information Officer and Senior Vice President, General Electric

Artificial Intelligence based, multilingual, taxonomy

independent Auto Classification tool that automatically

classifies enterprise-wide spend data originating from

multiple systems into a common coding structure that is

optimal for enterprise needs.

Multiple AI based classification algorithms

Supports all major European and Asian

languages

Very high throughput of more than 300,000

line items per hour

Pre-packaged Java APIs and built-in schedulerTMCertified for SAP NetWeaver

Key Features

Accurate classification of cryptic and multilingual

spend data

Shorter implementation cycle - weeks not months

Integration ready with all major ERPs and data

warehouses

Refresh spend data at the push of a button

Key Benefits$

maximumaccuracymaximumaccuracy

A spend analytics application that moves beyond

conventional slice-n-dice and uses an objective

driven approach for discovery and analysis of savings

opportunities. This intuitive application has been

designed and built ground up to be used by sourcing

professionals without any overt IT support.

identifyopportunities

We are implementing Actionable Analytics 4.0 to help increase work efficiencies, assist in the proper prioritization of

workload/commodity management, and help increase the credibility of the purchasing organization given the proper change

management practices are part of its implementation.

Gary R. Miklos,

Manager, Benchmarking & Compliance, Siemens Power Generation Inc.

Identified Opportunities

Validate

Finalize

Priortize

EffortLow HIGH

SourcingWave 2

Sourcing Wave 1

SourcingWave 3

Savings

High

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Opportunity finder for objective driven savings

discovery

Easy to use intuitive reports interface

Report explorer for fast and easy ad hoc reporting

Opportunity Pipeline Management module

automates process of prioritization, finalization

and management of savings opportunities

Key Features

Spend visibility at your finger tips, no need to

Learn to slice-n-dice spend data

Improve adoption among Commodity Managers

Achieve savings mandates through a transparent,

predictable

Refresh spend data at the push of a button

Key Benefits$

Actionable Analytics

identifyopportunities

“ Zycus' work enabled us to identify savings

opportunities we would not have been able to see

without aggregating across UNSPSC and supplier. In

some areas, it revealed significant spend from core

suppliers, but not in the areas where we had

negotiated deals with them. Finally, in a number of

areas it revealed much larger spend than we realized

we had - across way too many suppliers. All these

things helped us to build a supply management plan

that is enabling us to leverage our spend in the right

areas with the right suppliers.”

Head of Information Management

Fortune 100 CPG Company

A Customer Snapshot

THE CUSTOMER

A Fortune 500 Global Leader in Pharmaceuticals & Biotechnology with revenues of $14+ billion and

geographical spread across 25 countries.

BUSINESS CHALLENGES

n Low visibility into purchase of goods and services using SAP material groups due to inconsistent classification

n Absence of a granular taxonomy such as UNSPSC for better spend reporting

n Increased adoption of spend analysis among Commodity Managers to drive efficiencies and savings

n Visibility and management of spend with diverse suppliers

THE ZYCUS SOLUTION

n Automated, repeatable enterprise spend classification across multiple locations

n SAP groups using UNSPSC as standard taxonomy

n Actionable Analytics for detailed spend reporting and building a pipeline of savings opportunities for

procurement stakeholders

n Detailed and consistent visibility into spend by using automated and repeatable spend management

infrastructure

n Encouraged adoption of Spend Analysis among Commodity Managers for effective decision making and

providing easy-to-use spend reporting environment

n Drive the creation of a pipeline of savings opportunities through effective opportunity identification

and management

$THE BUSINESS BENEFITS FROM ACTIONABLE SPEND ANALYSIS

Recently Aberdeen Group surveyed more than 800 procurement professionals around the globe to understand the impact of

Spend Analysis on cost savings and performance. Results of survey revealed that organizations can additionally save more than

$19 million for every one billion dollar of spend. Key highlights of the business case reported by Aberdeen are:

Spend Analysis Impact - Strategic Sourcing: Spend Analysis Impact - Spend Under Management:

For example, an average procurement organization with $500 million of spend under management would see an

improvement of 34% or an additional $170 million brought under management. Aberdeen research has shown that

enterprises have been able to achieve a 5% to 20% cost savings for each new dollar of spend brought under management.

Business Case: $500 million under management

n 34% increase in spend under management

n 5% (low) savings estimate applied to new spend

$170 million

$8.5 million

$$8.5 million

incremental benefit

MORE THAN 100 COMPANIES

IN 14 COUNTRIES

FIND SAVINGS WITH ZYCUS

MORE THAN 100 COMPANIES

IN 14 COUNTRIES

FIND SAVINGS WITH ZYCUS

Spend Analysis Impact - Strategic Sourcing:

For example, an average procurement organization with $500 million of spend under management would see saving

rates from its strategic sourcing efforts improve by 7.5%.

Business Case: $500 million under management

n 30% addressable spend in any year

n 40% of spend is strategically sourced

n 6.7% savings before Spend Analysis

n 75% incremental savings with Spend Analysis

$150 million

$60 million

$4.02 million

$3 million

$3 million

incremental benefit$

Spend Analysis Impact - Contract Compliance:

For example, an average procurement organization with $500 million spend under management would see contract

compliance rates improve by an average of 33%.

Business Case: $500 million under management

n Compliant spend before Spend Analysis

n Compliant spend after Spend Analysis

n 33% of additional spend brought into compliance

n 10% benefit from contract compliance

$220 million

$295 million

$75 million

$7.5 million

$7.5 million

incremental benefit$

Spend Analysis - A Business Case

Zycus is the world’s leading provider of Spend Management solutions to Global 1000 companies. Zycus' solutions suite,

comprising of eSourcing and Actionable Spend Analysis tools, combine cutting-edge technology and domain expertise to

enable greater user adoption and sustainable savings. Zycus’ solutions facilitate greater process planning, control and

increased corporate alignment of Spend Management initiatives.Innovation & Ease of use is at the core of every Zycus

offering. Zycus’ Spend Management solutions help procurement departments of Global 1000 companies Analyze, Plan

and Source through an intuitive and objective driven process. With proven Spend Management deployments across the

globe with over 100 implementations, Zycus’ solutions have emerged as global favorites. Zycus has over 250 employees

spread across its offices in North America, Europe and Asia Pacific.

About Zycus

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