As the saying goes, “If you're not the lead dog, the view never changes”. For Zycus which has once again been positioned as a “Leader” in the newly published Gartner Magic Quadrant for Strategic Sourcing Suite Vendors for 2018 – just as was the case for the previous three iterations in 2017, 2015, and 2013.
2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Today’s Presenter
Richard Waugh
VP Corporate Development,
Zycus Inc.
• As Vice President for Corporate Development, Richard
leads strategic initiatives in the areas of new product
introduction, market development, thought leadership,
analyst relations, and strategic partner development
programs.
• Richard has an extensive background in B2B E-Commerce.
He helped launch GE's Trading Process Network (TPN), the
first on-line Marketplace for Sourcing and Procurement.
He was also Co-Founder of B2eMarkets, one of the first
SaaS (Software as a Service) Sourcing Suite providers and
later covered the Supply Management market as an
Industry Analyst for the Aberdeen Group .
richard.waugh@zycus.com
• 540.454.5809
4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Gartner Magic Quadrant for SSAS : Zycus’ Consistent Leadership
Consistent Leadership Since 2013:
Zycus is among the only 2 vendors to retain
its position as a LEADER for the 4th time in
a row.
5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Gartner’s Corporate Level Positioning for Zycus
Global Presence - Zycus, based in Princeton, New Jersey, U.S., was founded in 1998. It has
additional offices in Chicago and Atlanta in the U.S.; Melbourne, Australia; Bengaluru, Mumbai
and Pune in India; Singapore; Dubai, UAE; and London, U.K., and has recently opened a new
office in Amsterdam, Netherlands.
Employee Strength - 950 employees
Revenue – “We estimate that Zycus' revenue in 2017 was $80 million.”
Strategic Sourcing Clients - Gartner estimates that Zycus has 200 clients for Strategic Sourcing
Application Suites
Source: Gartner (August 2018)
6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Zycus’ Strengths mentioned in the Gartner’s MQ 2018
Openness to product enhancements - Zycus is a very customer-centric organization and its
customer references rate it highly for openness to product enhancements.
Analytics - Zycus has its origins in spend analytics and has been able to leverage this to develop
good overall analytics capabilities. It receives high scores from its customer references for general
cross-suite analytics and reporting.
Product functionality - Zycus has strong overall product functionality, with especially good
scores for spend analytics and CLM.
Demonstrates strong market understanding
Its product offerings are highly thought of by its customer references compared with most
other vendors in this Magic Quadrant.
Source: Gartner (August 2018)
8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Top 3 Reasons for Investing and Selecting Sourcing Suites
To transform strategic
sourcing within our
organization (74%)
To increase productivity
by automating strategic
sourcing within our
organization (65%)
To deliver increased
savings (61%)
Product
Functionality (83%)
Strong Ease-of-Use
Focus (59%)
Overall Cost (58%)
Source: Gartner (August 2018)
Investing Selecting
9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Key Market Trends
01
“Packaged, multitenant SaaS
offerings delivering much of the
necessary functionality ‘out of the
Box’ have displaced the ERP-
based solution with a knowledge-
management-oriented flexible
architecture, quicker time to value,
lower overall cost of ownership and
order-of-magnitude improvements
in access to innovation. None of
the solutions evaluated in this
Magic Quadrant is a native ERP
application, not because we
focused on best-of-breed offerings,
but because ERP offerings do not
compete effectively in this market.”
02
“Innovation in procurement and
sourcing technology continues with
a big focus on leveraging AI
technologies to automate basic
tasks and provide insights and
recommendations. However,
outside of improving spend
analysis capabilities, AI is still
mostly in development.”
03
“Organizations are beginning to
leverage their strategic sourcing suites
for much more than just running events
and documenting contractual
agreements. They are deploying entire
suites, or at least multiple modules,
and successfully configuring their
solutions to track savings, measure
and monitor supply risk, support
category management, and leverage
community/ecosystem knowledge.”
04“The market is under
consolidation…this consolidation is
also reflected in social media, with
mergers and acquisitions (M&A),
being one of the top drivers of
conversations. After a number of
years where the focus has been on
filling out gaps in functionality to
create full strategic sourcing (or
S2S) suites, the emergence of AI
now promises to become the major
differentiator in the future.”
Source: Gartner (August 2018)
10. The Leader’s Perspective:
Zycus’ View on Key Trends from Gartner’s 2018 Magic Quadrant For Strategic Sourcing Application Suites
11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Applying AI to Procurement Starts with Spend
“Vendors such as Zycus, SpendHQ and Coupa Spend360 are already
using machine learning to improve spend classification. The next step in
this area is to explore the predictive spend analytics that can further
improve the planning and prioritization of strategic sourcing activities.”
Source : Gartner : “Start Preparing Now for the Impact of AI on Procurement”
02
“Innovation in procurement and
sourcing technology continues with
a big focus on leveraging AI
technologies to automate basic
tasks and provide insights and
recommendations. However,
outside of improving spend
analysis capabilities, AI is still
mostly in development.”
12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Spend Classification – Before AI
Data
• Distributed data
• Multiple GL codes
• Multiple languages
• Multiple classification
standards
Spend
Report
• Inaccurate reports
• Low reliability
• Low spend visibility
• No ROI
Garbage In Data Warehouse Garbage Out
13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Spend Classification – After AI
Data
• Distributed data
• Multiple GL codes
• Multiple languages
• Multiple classification
standards
Spend
Report
• Statistical model based
data classification
• Handles erroneous data
• Automated and rapid
classification
• Quick ROI
Quality In Quality Out
Analytics
16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
AI suggests relevant categories
based on user’s natural language
search term and organizational
buying patterns
AI steers users to approved suppliers
and Buy/Pay channel for the category
AI Invokes category-specific
workflows, map to GL account and
default bill to/ship to based on user
profile
GUIDED BUYING
Key
Finding
AI-Enabled Guided Buying – Key to Better UX and Better Data
03
“The market is under
consolidation…this consolidation is
also reflected in social media, with
mergers and acquisitions (M&A),
being one of the top drivers of
conversations. After a number of
years where the focus has been on
filling out gaps in functionality to
create full strategic sourcing (or
S2S) suites, the emergence of AI
now promises to become the
major differentiator in the future.”
17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Key
Finding
AI-Enabled Guided Sourcing & Contracting – Better Decisions
“SmartAssist” Suggestions:
• Which Suppliers to Shortlist for Sourcing
• What Type of Negotiation Yields Best Results
• When Do I Need to Start Contract Process
• Which Clauses Need to Be Included
03
“The market is under
consolidation…this consolidation is
also reflected in social media, with
mergers and acquisitions (M&A),
being one of the top drivers of
conversations. After a number of
years where the focus has been on
filling out gaps in functionality to
create full strategic sourcing (or
S2S) suites, the emergence of AI
now promises to become the
major differentiator in the future.”
18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Sourcing
Spend
Analytics Contracts
Supplier
Management
eProcurement
Supplier
Performance
eInvoicing
Strategic Procurement
Operational Procurement
Request
Management
Tail Spend Non–Procurement
Managed
Financial Savings Management
Reporting
Digitized Source-to-Pay…Connected Dots, No Pockets of Paper
“Organizations are beginning to leverage their strategic sourcing suites for much more than just running events and
documenting contractual agreements. They are deploying entire suites, or at least multiple modules, and
successfully configuring their solutions to track savings, measure and monitor supply risk, support
category management, and leverage community/ecosystem knowledge.”
04
19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Category Management Starts with Stakeholder Requests
Reject inappropriate requests
eSourcing
Contract
Management
Project/
Savings
Management
Supplier
Management/
P2P
ProcurementApproverRequester
Sends
requests
Approves
requests
Manages and
Processes
Requests
Create Contract
Create Sourcing Event
Onboard a Supplier
Pre-purchase Request
Supplier Performance improvement
PO Amendment
Contract Amendment
Task Assignment
Initiating a Project
Price or terms change request by
Supplier
Configurable Flexiform
Configurable Approval Workflow
Conditional Logic / Rules
Calculated Fields
Delegation
Comprehensive Reporting
Process Use Cases
Features
20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Automated request management and tracking triages
procurement’s work queue – empowers and engages end-users
Sophisticated, conditional approval workflows (>175 conditions,
4-5 approvals per form)
Conditional logic integrates IT security reviews with on-boarding
requests
Supports multiple request use cases, e.g. negotiate contract, run
sourcing project, on-board supplier, capital appropriation project
approval
Seamless process flow from request to execution – e.g.
approved request initiates activity in target module
Also supports non-procurement (Hotel, Facilities, HR, IT)
requests
Extending
Beyond
Procurement
Users
Integrating
Business
Processes
Customer-
Centric
iRequest - Porsche
Customer-Centric Case Study: Request Management
22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Standardized, Self-Service Tail Spend Sourcing
Tactical, Spot Buys – 3 Bids & Buy
Create and Invite New Suppliers on the Fly
Create RFQ Inquiry on Single Screen
23. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Financial Savings Management Challenges/Solutions
Challenges
• Most organizations tracking with spreadsheets/home-
grown tools
• Existing tools lack Finance collaboration and approval
workflow
• No standard definition of savings calculation and allocation
methods exists, and lifecycle tracking visibility is missing
Solution
Align:
• Import baseline spend from
Spend Analytics
• Establish Finance-approved
spend baseline and savings
calculation formulae on
common, enterprise platform
Validate:
• Employ workflow to obtain
validation from stakeholders
• Map savings projects to
stakeholders and approvers
Analyze:
• Segregate savings by type,
e.g. cost reduction vs.
avoidance, and accounting
period
• Identify savings by
project/sourcing strategy
• Map savings impact to P&L,
Balance Sheet, Cash Flow
Source: Gartner/Rutgers Survey
24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Case Study: Financial Savings Management
600+
Savings Projects Initiated
$40-50M
Annual Incremental Savings Realized To Date
000’s of Users
40 Power Users Create Savings Projects and Collaborate
with 000’s of Stakeholders (600 Financial Analysts Alone)
25% Productivity Gain
Category Managers Save 2 Hours per Day from Data
Gathering Tasks
Single Version of Savings Truth
Standardized calculation/allocation formulae
Full audit trail and version control
Secure user access by BU/Div/Dept/Cat
Fx conversion and multi-lingual UI
Flexible/multiple savings types/definitions
Approval workflow sign-off by budget owner and Finance
Dashboard analytics and Financial Statement impact
reporting: P&L/Budget/Balance Sheet,/Cash Flow
Savings Tracking for Non-Procurement
Platform applied to non-procurement savings projects (e.g.
Reorg, ERP Consolidation, M&A), Budgeting/S&OP, Cash Flow
Forecasting
iSave - Qualcomm
25. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Governance Model: Managing Supplier Information and Risk
Supplier Vetting
On-boarding
Approval Workflow
Supplier Self-
Registers
Supplier
Locations
+
Contact
Details
Certifications/
Documentation
Banking &
Financial Info
Business
Classifications/Product &
Service Details
ERP Synchronization
System Assigns
Pre-Qualification
Scoring
3rd Party Validation & Real-
time Monitoring Integrated
with SIM Repository
27. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
REGISTER NOW
Use the Promo Code WEBINAR100 to avail $100 off on
the actual conference cost
28. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
What’s Next?
A Big News headed your way on October 28th !
29. +1 866 563 9219
info@zycus.com
www.zycus.com
Thank You
Editor's Notes
Step 3: Drive P2P Process Simplicity, User Adoption
Most critical aspect of Procurement Transformation at AmeriHealth was re-inventing a non-intuitive, cumbersome requisitioning and ordering process in P2P
By introducing “Guided Buying” to the P2P process, AI (Artificial Intelligence) streamlines the user experience by:
Making it easy for users to quickly find what they need by matching their natural language search term to the appropriate product/service category, ensuring they are presented only with relevant search results from approved, contracted vendors
Allowing users to copy old requisitions or save shopping baskets to streamline process for repeat orders
Removing the guesswork about how to code and classify the shopping cart item – defaulting the correct category code, G/L code and ship/bill to information
Invoking the appropriate category-specific automated approval workflow routing to get their requisition approved
Providing visibility to the status of their request
Enabling mobile approvals to prevent delays in processing requests
Step 3: Drive P2P Process Simplicity, User Adoption
Most critical aspect of Procurement Transformation at AmeriHealth was re-inventing a non-intuitive, cumbersome requisitioning and ordering process in P2P
By introducing “Guided Buying” to the P2P process, AI (Artificial Intelligence) streamlines the user experience by:
Making it easy for users to quickly find what they need by matching their natural language search term to the appropriate product/service category, ensuring they are presented only with relevant search results from approved, contracted vendors
Allowing users to copy old requisitions or save shopping baskets to streamline process for repeat orders
Removing the guesswork about how to code and classify the shopping cart item – defaulting the correct category code, G/L code and ship/bill to information
Invoking the appropriate category-specific automated approval workflow routing to get their requisition approved
Providing visibility to the status of their request
Enabling mobile approvals to prevent delays in processing requests