Inspiring Success in the Era of Smart - Patrick Quirk INSPIRE Keynote

1. Patrick D. Quirk
CEO, Emptoris
Inspiring Success in the Era of “Smart”
IBM Emptoris
Strategic Supply Management

2. The past year…
Economy
80% of CEOs
are concerned
about uncertain
economic
growth Volatility
56% of CEOs said
their operations were
impacted by Euro-
zone debt crisis
Risk
29% of CEOs
cited an impact
from Japan's
earthquake and
tsunami
Emerging Markets
50% of CEOs believe
emerging economies are
more important to their
company’s future than
developed markets

3. …has shaped the corporate agenda
Global growth and sustainable savings
Manage risk and compliance
Identify volatility and maximize predictability
Drive innovation

4. Meeting the Business Needs of
Chief Procurement Officers
Chief Procurement Officers are challenged to:
–Drive global growth and
sustainable savings
–Manage risk and compliance
–Identify volatility and maximize predictability
–Maximize sourcing and fulfillment flexibility


Buy
Adaptive
procurement
and optimized
supply chain
Procurement transformation requires a
combination of best practices and
the right technology

5. What if you could deliver greater value?
99% of spend
visibility achieved
for customers on
average




99
%
90
%
11
%
35
%
90% of contracts
under
management
and compliance


11% average
savings on total
sourced spend



35% savings
possible on
telecom
expenses


$
30
B
$30 Billion in
savings
documented in a
survey
of our customers
Ability to:
Analyze $1 Trillion
of spend
Ability to:
Manage more
than 2.5M
contracts
Ability to:
Conduct more
than 25,000
eSourcing events
annually
Ability to:
Seamlessly
manage $1.2B
in telecom
expenses
Ability to:
Sustain savings

6. Era of “Smart”
Forrester is beginning to characterize many of the
SVM-centric offerings as “smart process apps” due to
the deep process, collaboration, analytics, and integration
built into these solutions
By connecting the sourcing-life -cycle processes that
are already taking place with these smart process apps,
SVMOs can bootstrap themselves out of a transactional-
effectiveness mode and into a strategic value driver role
for the business
Source: The Forrester Wave™: SVM Tool Set, February 25, 2013

7. Procurement technologies drive innovative performance
Source: IBM Institute of Business Value

8. New value to inspire customer success
People
•500 consultants
worldwide
supported by 3,000
supply chain
professionals
•Recognized by
Gartner as BPO
leader
Processes
•Market leader in Procurement Services
•Over $57B in managed spend
•Sourcing Councils supported by analytics
Technology

9. Our mission and our commitment
to customer success
Delivering strategic supply and
contract management solutions that
enable our customers to maximize
financial performance and optimize
commercial risk.

10. Challenge
Solution
Results
IBM success story
Transform the IBM procurement organization to become an
essential corporate function. Standardize procurement best
practices globally in an effort to reduce costs, generate revenue,
increase customer satisfaction and drive supplier innovation and
collaboration.
IBM Emptoris Strategic Supply Management
IBM Cognos Procurement Analytics
IBM ILOG Optimization

Realized savings of $7b savings in the last year
Common global process and platform
Comprehensive strategic sourcing agenda
Spend compliance greater than 95%
Integrated and automated approach to Business Unit Requirements, RFX,
Contracting, and transaction execution
IBM spends approximately $36.5 billion
annually through its supply chain, procuring
materials and services globally. The supply,
manufacturing and logistics and customer
fulfillment operations are integrated in one
operating unit that has optimized inventories
over time.
Customer Profile
“IBM’s platform utilizing Emptoris, Cognos, ILOG offers fast time
to value by enabling predictive analytics. Organizations who
leverage this new technology will be the leaders in the next wave
of procurement”
– John Paterson, CPO, IBM

11. Coming in May!



IBM’s Institute for Business
Value (IBV) will deliver its
first ever…

http://www.ibm.com/services/c-suite/series-download.html
Global
Chief Procurement
Officer Study

12. Contributor Demographics
19%
2%
79%


32%
8%
8%
19%
33%




Survey Respondent Headquarters Region
Approximate Annual Revenue
1128 large, geographically diverse companies
completed CPO survey, and one-on-one
conversations with senior procurement leaders gave
context to findings

12% of respondents hold the title ‘Chief
Procurement Officer’, and 88% report directly
to the CPO

Geographic representation from 22 countries and all
industry sectors

One-on-one interviews conducted between
December 2012 and February 2013 by IBM
procurement specialists

Topics covered included procurement management
metrics, procurement technologies, human resource
challenges, best practices, and emerging
procurement trends
12
$1bn to $10bn
$10bn to $100bn
Over $100bn
North America
Europe
Asia Pacific
Latin America
Middle East & Africa

13. Strategic Supply Management
addressing client needs
Maximize
and lock in
savings
with advanced
sourcing and
enterprise
contract
management
capabilities
Analyze
enterprise
spend
across systems
and effectively source and manage complex categories
Effectively
manage
supplier information, relationships and processes to ensure compliance and mitigate risk
Enterprise and Category
Spend Management
Source to Contract
Supplier Management,
Risk and Compliance

14. It’s all about ROI
An Army of Solution Sellers: +200 people
utilizing the ROI model and business case
template world wide.
A lot of value being found:
•Customer Loyalty has completed over 350
studies in 2.5 years.
•+30% of the Pro- forma (L1) studies move
to L2 studies with heavy customer
engagement
Accuracy, accuracy, accuracy: L1's are
typically within 75% of the achievable value.
Working with the customer to adjust moves
accuracy to >90% of achievable value.
Recent examples of top brands utilizing
the process:
3M Company
AON
Apple
AT&T
Cathay Pacific Airways
Citigroup
Florida Blue
Frontier Communications
Altria Group
Qantas

15. Spend Management –
Best In Class
Ease of Use
Success Requires Adoption
Uncompromised
Best in Class in Every Area
True Savings
Identified & Realized

16. What does best of breed combination really mean?
Transaction Engine
Channel Spend Through
Preferred Suppliers
Capture Savings &
Ensure Compliance
Strategic Sourcing
Identify & Contract With
Preferred Suppliers
Negotiate Savings &
Favorable Terms

17. Coupa- Emptoris Solution

Back office “strategic” analysis
and negotiations
Powerful analytics, sourcing
and contract processes
Negotiate savings from
sourcing and contracting

Front office “procure to pay” offering
Captures and controls your spend
Realize savings from strategic initiatives
Analyze
Source
Create
Contracts
Enforce
Compliance
P2P

18. Coupa- Emptoris Solution
POWERFUL PARTNERSHIP
INDUSTRY ACKNOWLEDGED LEADERS
COMPREHENSIVE SOLUTION
ANALYTICS
Dashboards
Advanced reporting
What-if analysis
SOURCING
RFI, RFQ, RFP, Reverse Auction
Bid Optimization
Comparison charting
CONTRACTS
Buy side – Sell side
Approvals
Redlining
Authoring and negotiation
PROCURE–TO–PAY
eProcurement
Budgets
Approvals
Inventory
CSN
Taxes
Freight
AP/Invoicing
Shopping
Compliance
T&E
Transactional reporting
Analyze
Source
Create
Contracts
Enforce
Compliance
P2P

19. Coupa- Emptoris Solution
Out of the box integration
Business processes mapped to
your requirements
POWERFUL PARTNERSHIP
INDUSTRY ACKNOWLEDGED LEADERS
COMPREHENSIVE SOLUTION
SEAMLESS, INTEGRATED WORKFLOW
Analyze
Source
Create
Contracts
Enforce
Compliance
P2P

20. Joint Coupa & IBM Customers

22. You can’t afford NOT to get a better
handle on your data
“The Year of the Supplier: Perspectives on Supplier Management in 2011”, published by Aberdeen, May 2011
“Nearly one third of respondents don’t know the
costs related to supplier management disruptions.”
“44% of organizations don’t know or don’t measure
supplier failure costs.”
“only 20% of organizations are tracking supplier
corporate social responsibility.”
“supplier data residing in multiple systems”
systems “unable to manage the depth of supplier
information being demanded”

23. You can’t afford NOT to have your
forecasted savings materialize
“The State of Strategic Sourcing: Building a Context for the Next Decade”, published by Aberdeen, April 2011
Savings
leakage
Off-contract
spending and poor
contract
management
Failure to accurately
forecast and
understand business
performance
Unexpected supplier
price increases

24. Inconsistent supplier information
•Due to multiple procurement and purchasing systems
Single supplier master record
•Cross-referenced to source systems eliminates
duplication and confusion
No single supplier view
•Due to unlinked data spread across multiple systems
Single supplier view
•Provides information on performance, risk status,
spend, bids and contracts
Challenges Capabilities
Supplier data inaccuracy
•Due to lack of data checking and cross- referencing
Supplier data governance
•Ensures that supplier data is consistent and correct
Limited procurement insights
•Due to data inaccuracies and lack of consistent
structure
Analytics
•Across all procurement applications provides deep
procurement insights
Limited scope of suppl. programs
•Due to manual processes for managing supplier
information
Process Automation
•Improving productivity and increasing the number of
suppliers under management
Start buying smarter

25. Solutions to help you buy smarter
Emptoris Integration Services
Virtual Supply Master Technology
Suppliers
Categories
Events Users
Organizations
Regions Bids
Program Management
Supplier
Lifecycle
Management
Suite Reporting / e360
Spend
Analysis
Sourcing Contract
Management
Telecom
Expense
Management
Services
Procurement
Suppliers
Users
Suppliers
Users

26. What’s coming
IBM Portal
and IBM Connections
for Social Business

27. Consistently recognized as a Leader by
independent research firms
Market
Leader
Leaders
Quadrant Gartner
Telecom
Expense
Management
Magic Quadrant
2012
The Forrester
Wave
TM
:
Services
Procurement Q3
2010
Leaders
Quadrant
Gartner
Strategic
Sourcing
Magic Quadrant
2010
Market
Leader
Market
Leader
The Forrester
Wave
TM
:
Sourcing and
Vendor
Management
Q1 2013
The Forrester
Wave
TM
:
Contract
Life-Cycle
Management Q2
2011
Leading Analyst Recognition

28. Thank You!