As businesses across virtually every industry face pressure to remain on the cutting edge of technology to maintain competitive advantage, the role of today’s CPO is about going beyond the numbers. View this presentation on "Raising the Bar in Procurement Through Digitalization" and learn how the procurement digitalization is driving significant improvements. Including: 1. Pointers for creating a digitalization roadmap 2. Success in digitizing business relationships with suppliers 3. A huge leap forward in procurement efficiency and control. 4. A dramatic improved invisibility and controls to identify savings and reduce the risk of fraud.

1. RAISING THE BAR IN PROCUREMENT
THROUGH DIGITIZATION
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2. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Today’s Presenter
Kanishka Ghosh,
Director – Product Management, Zycus Inc.
Email: kanishka.ghosh@zycus.com
 Mr. Ghosh heads the Product Management team for Zycus’ Source-
to-Pay Suite. He has been working in the enterprise product
management space for more than a decade, primarily involved in
designing best-of-class applications. He has been instrumental in
successful procurement application adoption by a large number of
Global 1000 organizations.
 He has created numerous whitepapers, solution documents and
patents and has been actively evangelizing world class procurement
practices in different industry events.
 Previously, he was responsible for managing a number of products in
Oracle’s EBS Advanced Procurement product family.

3. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Setting the Context: The Digital Journey
Where it all started Electronic records filing and
retrieval. Bringing IT tools to
support manual processes
Process optimization and
value driven technology
adoption. Leveraging AI / ML
/ Cognitive computing
The Digital Transformation Journey

4. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Why is the Digital Journey Essential for the Procurement Organization
Directly or indirectly driven
by technology adoption
Source: Zycus Pulse of Procurement Study, 2017

5. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Contributing to Cost Reduction
Percentage procurement process cost reduction attributable to digital transformation
Source: The Hackett Group, Digital Transformation Framework

6. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
And drives ROI for the Procurement team
Source: Zycus Pulse of Procurement Study, 2017
% respondents claiming very high RoI
from their technology investments
A very direct co-relation of technology
adoption and performance on critical
procurement benchmarks

7. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
But the benefits extends beyond the cost savings
Decision Support: New Insights And Intelligence
Shift Effort: Commercial And Supply Relationships
Business Alignment & Communication: Enhance
Agility And Internal Customer Experiences
Value Beyond Cost Savings: Enhanced Value
Above Spend Cost Reduction
Source: The Hackett Group, Digital Transformation Framework
Digital Transformation In Procurement: Improving customer experiences, operational efficiency,
agility and business value contribution by fundamentally changing the way procurement
services are delivered using digital technologies as the enabler of holistic transformation

8. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Defining ‘Procurement Digital Transformation’
Source: The Hackett Group

9. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Embracing Digital Transformation: The new Blueprint
• Embrace a fail fast philosophy
• Execute pilots in targeted areas and scale up rapidly
• Shift focus from discrete projects to continuous transformation
• Move beyond just automating existing processes
• Define completely new ways of doing things
• Enable with new technologies (e.g., cloud, big data, RPA, social media)
• Move beyond internally focused transformation
• Design from the “outside in”, starting with customer needs
• Design new ways to engage the customer (internal and external)
Source: The Hackett Group

10. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
New technologies will drive the Digital vision
Source: 2018 Key Issues Study, The Hackett Group

11. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Technology Expected as Biggest Change Driver
“Traditional” Responses
Include:
- Strategic Transformation
- Supplier Relationship
Management
- Global Competitiveness
- Outsourcing

12. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Request
Management
Project/Savings
Management
Spend
Analytics
Sourcing Contracts
Supplier
Management
Supplier
Performance
eProcurement eInvoicing
Request and
track Contract
creation
Create events
from requests
Create, track and
manage
sourcing/savings
projects
Review past
performance before
inviting suppliers
Create sourcing
projects
Convert PRs to
RFP and award
POs
Validate contract terms
for catalogs, PO to
contract matching
Update
preferred
vendor lists
Refer master
data for
creating
invoices
Review supplier
history
Create, track
and manage
contracts
Transfer
Attachments,
T&Cs, Pricelist for
Contract creation
Create and invite
potential
suppliers
Control Layer
Strategic Layer
Operational Layer
Refer
supplier
data
Review supplier scores
before ordering
Connecting the Dots….for a Single Version of S2P Truth

13. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Technology Use Cases: Automated Invoice Processing & Reconciliation
A large # of paper
invoices
+
Invoice & PO
discrepancies
requires manual
intervention
Digital Procurement
system receives, scans
and creates invoices.
AI driven automation
looks at attributes to
provide resolution or
suggest next steps
Matched and
processed for
Payment.
Reduces
processing time
and manual
intervention
Customer Case Study: A large global hospitality provider

14. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Technology Use Cases: Supplier Management
Supplier Master
has hundreds of
thousands of
suppliers. Tracking
quality,
performance and
timely action are
critical
Digital Procurement
system identifies
missing information or
updates pending,
tracks quality, delivery
KPIs and sends
notifications &
manages escalations
System is always
kept up to date
and potential
high risk
situations are
identified and
averted
Customer Case Study: A large Automobile parts manufacturer

15. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
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
Financial Savings Management Challenges/Solutions

16. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
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
Case Study: Financial Savings Management (Qualcomm)

17. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Poll Question: How prepared are we for digital transformation?
 Question: As the procurement function within your organization, do
you have the resources & competencies to execute on your digital
transformation roadmap?
 Options:
• Strongly Agree
• Agree
• Do not Agree

18. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
But are we ready?
Source: 2018 Key Issues Study, The Hackett Group

19. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Technology roadmap is very different from real Adoption
 Ensure end user adoption
• Right selection of tools
• Training
• Business process mapping
• Cross-functional ownership
 Define RoI and KPI targets
 Actionable plan
 Senior management focus

20. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Human capital & enablement becomes more critical than tech. adoption
Zycus University
~ 500 webinars in an year
~ 1 ‘on-request’ training session / day
~ 200 product videos
~ 70% of active users trained every year
2016 2017-18 (Projected)
Percentage of companies ranking issues as “high
risk”
Source: The Hackett Group, 2017
The 6 skills that are crucial for today’s procurement workforce:
• Business acumen
• Relationship management
• Supply risk management expertise
• Strategic mindset
• Data analysis and modeling
• Savings and financial analysis

21. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Zycus SmartAssist

22. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Zycus has been Recognized as a LEADER in Gartner’s 2013, 2015 and 2017 Magic Quadrant for Strategic
Sourcing Application Suites
Zycus : The Consistent Leader

23. Questions?

24. Source to Pay Suite: Spend Analysis | eSourcing | Contract Management | Supplier Management | Savings Management | Project Management | Request Management | Procure-to-Pay
Disclaimer
This document contains Zycus’ product plans, designs, approaches, product prototypes that are used
by Zycus’ product management team to explain Zycus’ product vision. These Zycus’ product related
designs and ideas and other contents mentioned herein are tentative in nature. Zycus reserves the
right to make changes without further notice to any products to improve reliability, function, or design.
and further Zycus does not commit to deliver any of the product features or changes thereof
mentioned in this document. You acknowledge that no promise, representation, warranty or
undertaking has been made or given by Zycus in relation to the profitability of or any other
consequences or benefits including any purchase or planning decisions to be obtained by relying on
the contents of this document

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