Ariba Procurement Content Hybrid – Lessons Learned

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Information about Ariba Procurement Content Hybrid – Lessons Learned
Business & Mgmt

Published on March 10, 2014

Author: Ariba

Source: slideshare.net

Description

The session will be a continuation from last year's session where Hewlett-Packard and Pfizer shared their reasoning, decision process, and value determination behind connecting their on-premise Ariba Buyer instance to Ariba Procurement Content in the cloud. At the time, neither Hewlett-Packard nor Pfizer had completed the implementation and roll-out (they were in the process).

In this session, they will share lessons learned on the entire process including decision process, planning, implementation, roll-out, training, and other aspects from their real-world experiences from their Ariba Procurement Content hybrid implementation.

Learn more about Ariba LIVE at http://spr.ly/LIVE2014LV-d

#AribaLIVE Ariba Procurement Content Hybrid: Lessons Learned © 2014 Ariba – an SAP company. All rights reserved. @ariba

Speakers • Jeremy Carter, Ariba Sr. Manager, Solution Optimization • Nieves Alva, Hewlett Packard Global Procurement Business Architect • Rick Raker, Pfizer Global Procurement Systems & Tools Lead © 2014 Ariba – an SAP company. All rights reserved.2

Ariba/SAP Roadmap • Cloud development will be accelerated: Functional enhancements across all solutions Expanded network scope to cover new areas such as supply chain and logistics Ability to address market demand for rapid innovation • On-premise development will focus on: Targeted user interface and platform improvements (9rX, SRM, Fiori) Improved performance and total cost of ownership Network integration Customer-driven innovations • Common roadmap topics across cloud and on-premise: Integration between cloud and on-premise solutions in support of hybrid deployments Leveraging SAP technologies such as mobility, SAP HANA, and analytics Ariba and SAP’s product and solution management organizations are aligned on Many customers are moving their procurement processes to cloud wherever possible for higher ROI and faster innovation Cloud Solutions An SAP Company OnPremise Solutions An SAP Company

What is Procurement Content Hybrid? Leverage your Ariba Buyer / ERP Investment: NO CHANGES Your Systems (Create PO) Your processes (Sending PO) Search in the Catalogs and Return Results to Buyer / ERP • Consumer-like catalog functionality in a cloud based, hosted solution • Access to the catalog from external procurement system(s) • Shopping carts seamlessly returned to a Requisition in the buy-side application • Ability to manage all content in a single place for all buying applications • Includes ongoing catalog enablement services

#AribaLIVE Ariba Procurement Content Hybrid: Lessons Learned (Hewlett Packard) Nieves Alva, Global Procurement Business Architect, HP © 2014 Ariba – an SAP company. All rights reserved. @ariba

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP is one of the world‟s largest technology companies, delivering innovation in printing, personal computing, software, services, and IT infrastructure.

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.7 Hewlett-Packard $11.6B in cash flow from operations for fiscal 2013 $1.5B returned to stockholder in the form of share repurchases and dividends $5.5B reduction in gross debt $112.3B net revenue FY13 Americas 46% EMEA 35% Asia Pacific 19% Revenue by Region* U.S. 36% Canada/LA 10% *Based on FY13 results More than 300,000 employees serving 1B customers in 170 countries.

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.8 HP’s portfolio of businesses Enterprise Group Printing & Personal Systems Software • Strong enterprise-grade services portfolio • Advising our clients and helping them transform and manage their IT environment and services to deliver industry-leading business outcomes • World-class IT operations and projects • Deep relationships across the world‟s largest enterprises • Global scale and presence • Industry-leading innovation in design and ease of use • Strong product quality, compatibility and security • Lower costs and reduced environmental impact • Significant, leading share positions • Unmatched scale, distribution, and IP in the industry • Optimizing the user experience through modern IT applications, operations, and cloud management • Industry leading IP with capabilities across Cloud, IT Management, Security, and Big Data • Platform agnostic and open standard-based software • Unmatched assets in storage, networking and servers • Industry leading Converged Infrastructure, Software- defined Data Center, and Converged Cloud • Modern architectures across infrastructure stack, based on open systems • Strong share position Enterprise Services $23B $56B $28B $4B

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.9 Currently deployed Footprint in HP Identify Opportunity Develop Strategy Source and Negotiate Contract and Procure Invoice and Pay Monitor and Manage Ariba Platform eForms Dashboard Supplier Supplier Ariba Network Ariba Invoice Ariba Sourcing Ariba Contract Compliance Ariba Buyer 9r1 Ariba Contract Workbench Ariba Category ProcurementAriba Category Management Ariba SPM Ariba Analysis Ariba Data Enrichment ERPERPERP Ariba Procurement Content

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.10 Currently deployed Footprint in HP Identify Opportunity Develop Strategy Source and Negotiate Contract and Procure Invoice and Pay Monitor and Manage Ariba Platform eForms Dashboard Supplier Ariba Network Ariba Invoice Ariba Sourcing Ariba Contract Compliance Ariba Buyer 9r1 Ariba Contract Workbench Ariba Category ProcurementAriba Category Management Ariba SPM Ariba Analysis Ariba Data Enrichment ERPERPERP Ariba Procurement Content Supplier

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.11 Customers … Impact … • Billions in spend • 10s of thousands of purchase orders • 100s of catalogs • 1000s of catalog transactions • 100s of Thousands of Internal Order transactions • 100s of Pcard transactions • 10s of thousands of suppliers 100K users in 55 countries, 167 legal entities Processes SmartBuy: HPs On-Premise Buyer SmartBuy Charter… To provide simple, intuitive, reliable processes and tools that enable HP employees to achieve their buying needs, while delivering an exceptional customer experience. Rally cry… Make it faster Make it simpler Make it better

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.12 HP’s On Premise Buyer - 2012 SmartBuy user feedback “The SmartBuy ordering system is not user friendly” “Might be a good tool for someone who does nothing else but ordering goods, but not for an infrequent user “ ”…should be as simple as going to a site like Amazon.com” “ It can be time consuming and frustrating to figure out how to get an order placed” “…time wasting & frustrating” “Using the catalog procurement tool can be confusing” “There has GOT to be a better way” “…it's taken me 3 hours already… “ Create an exceptional user experience by delivering a „consumerized‟ catalog shopping environment, simplified approval flows and checkout processes. AP C Ariba Buyer 9r1

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.13 User experience elements for SmartBuy 2.0 Procurement Central SmartBuy Homepage SmartBuy training SmartBuy Customer Support Model SmartBuy UI SmartBuy Approval Flow PO Status & goods/services delivered SmartBuy E2E Process Architecture

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.14 Enhanced SmartBuy Shopping Experience •Simplified screens •Simplified data entry •Usability •More efficient E2E environment •Upgraded user interface •Enhanced SmartBuy homepage •Easy, intuitive solution to send users to the right place •Unnecessary fields will not be displayed •Catalog functionality and searches •Streamlined E2E environment Our Goals What we delivered Lean Tools Used: •Voice of the Customer •Value Stream Mapping •Muda (waste) •Poka-Yoke (Error Proofing)

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.15 What changed? More Intuitive SmartBuy • An enhanced SmartBuy catalog. • New, user friendly field names and help text. • More intuitive SmartBuy screen layouts. • Enhanced Commodity code search. • Enhanced Dashboard and To-Do portlet including additional information regarding transactions. • The number of clicks and screens to order an item reduced by 25%. • The number of fields to order an item reduced by 50%. • Fewer approvals to obtain your purchase order. • Checkout screen simplified to show relevant data in the line item summary including comments (if populated) for a faster checkout. Faster SmartBuy

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.16 Validating our Solution with our customers • Conducted usability interviews to solicit feedback from SmartBuy user segments on key usability items • Scope of interviews included: • Naming of UI fields • Help text within SmartBuy • Procurement Central, Internal Order & SmartBuy pages • New SmartBuy Home Page design • Catalog hierarchy •SmartBuy training collateral • User test-drives of our solution. •231 people signed up to become SmartBuy testers. •48 testers provided us feedback: • 71% viewed the changes as a significant enhancement over the existing SmartBuy. • 79% felt confident that they could successfully purchase in the improved tool without training. • 83% felt positive about their experience using SmartBuy.

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.17 Challenges and Lessons Learned Challenges: • Enabling the last 10% of suppliers has been a challenge. • Suppliers are slow to comply with AN document processes. • Customization were required to bridge the gap in Ariba functionality and maintain transparency for our users. • Punch-out catalogs do not meet our user experience goals. • APC is not as business configurable as we need. Lessons Learned: Supplier enablement and compliance: • Prepare for heavy engagement throughout the supplier enablement process. • Engage the contract owners to enforce a strong compliance message to suppliers. • Local language support was key in Latin America and Asia-Pacific. • Have an E2E catalog operating model defined before you start. Solution design: • Be cautious of over-engineering the solution. • Design for the rule and not the exception.

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Restricted.18 Big Bang implementation on September 16th 2013! Initial customer satisfaction scores increased 10%.

#AribaLIVE Ariba Procurement Content Hybrid: Lessons Learned (Pfizer) Rick Raker, Global Procurement Systems & Tools Lead, Pfizer © 2014 Ariba – an SAP company. All rights reserved. @ariba

Agenda • APC Implementation Big Bang vs. Phased Approach Implementation Timeline • Ariba On-Demand Deployment Framework Resource Commitment Training & Communications • APC Implementation Summary • Future Enhancements and Improvement Opportunities © 2014 Ariba – an SAP company. All rights reserved.20

© 2014 Ariba – an SAP company. All rights reserved.21 Pfizer implemented 354 catalogs across 40 countries (150 Internal and 204 Punch-Out Catalogs) Australia Austria Belgium Canada China Colombia Denmark Finland France Germany Hong Kong Italy Japan Korea Malaysia Mexico Netherlands New Zealand Norway Peru Philippines Portugal Puerto Rico Singapore South Africa Spain Sweden Switzerland Taiwan Thailand UAE UK India US Venezuela Ireland Czech Republic Hungary Romania Slovakia

Processed Over 78K Catalog Orders Since Go-Live (Sept 30, 2013) 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 Sept Oct Nov Dec Jan Feb Catalog Orders © 2014 Ariba – an SAP company. All rights reserved.22

Multiple Instances? Big Bang vs. Phased Approach © 2014 Ariba – an SAP company. All rights reserved.23 Big Bang Approach at Pfizer Pfizer connected APC to 3 instances of Ariba Buyer (Ariba 9r1 and 8.2)

Planned APC Implementation Timeline: 6 Months © 2014 Ariba – an SAP company. All rights reserved.24 SeptAugJulyJuneMayAprilMarFeb Kickoff Site Configuration & Integration Testing Training & Communications Support Oct Go-Live

Actual Actual APC Implementation Timeline: 8 Months © 2014 Ariba – an SAP company. All rights reserved.25 SeptAugJulyJuneMayAprilMarFeb Kickoff Site Configuration & Integration Testing Training & Communications Support Actual Oct Actual Actual Go-Live

Why did Pfizer decide to delay? © 2014 Ariba – an SAP company. All rights reserved.26 • Needed additional time to work through connectivity issues with a few punch-out supplier sites • Realized the keyword search against “store-level” Punch-Out Catalogs did not return any results due to missing content

© 2014 Ariba – an SAP company. All rights reserved.27 Assign Customer Deployment Project Manager Customer Assign Ariba Deployment Project Manager Ariba Develop Draft Project Plan Ariba Key Deliverables Draft Project Plan Ariba On-Demand Site Enablement Ariba Key Activities Project Management Objective: Define the project scope, set the timeline and ensure the resources are available. Ariba On-Demand Deployment Framework Project Management Kickoff Testing Training & Communication Go-Live/ Wrap-up Configuration

© 2014 Ariba – an SAP company. All rights reserved.28 Ariba On-Demand Deployment Framework Project Management Kickoff Testing Training & Communication Go-Live/ Wrap-up Configuration Kickoff Objective: Validate the project scope and timeline with the project team, confirm roles and responsibilities of the team members, and provide Customer with an overview of the system. Ensure overall alignment of Project Scope, Resources & Timelines Joint Conduct On-Demand Demo Ariba Identify Customer resources Customer Review Project Plan Joint Conduct Project Kick-Off Ariba Key Activities Key Deliverables Kickoff Presentation Ariba Final Project Plan Ariba Issue Tracker Ariba

Ariba Roles & Responsibilities © 2014 Ariba – an SAP company. All rights reserved.29 Role Responsibilities Project Manager Point of contact for overall deployment Ensure resources are available and properly assigned Manage project timeline to help ensure timely completion of all project tasks Ensure participation across all project resources Identify and addresses resource needs (in addition to resources outlined in the project organizational structure) Provide project roles, responsibilities, and issue escalation path Identify and escalates, as appropriate, project issues Ensure timely project communication and status updates Provide documentation on customer‟s support services Technical Lead Review master data for completeness and assists in data issue resolution Assist with technical aspects of site configuration and integration with Customer eProcurement applications. Provide knowledge transfer to site administrators on technical tasks throughout deployment. Supplier/ Catalog Enablement Responsible for management of the enablement services work stream Builds catalog content into Ariba Procurement Content solution Provide input and obtains internal approval for all suppliers‟ communications and education Behind the Firewall (BTF) Tech Lead Oversee technical changes that will be required for BTF instances Data Rationalization / Tech Resource Perform data rationalization and technical activities

Customer Roles & Responsibilities © 2014 Ariba – an SAP company. All rights reserved.30 Role Responsibilities Project Sponsor Assign a Project Manager Help define overall project vision and provide guidance for high-level issue resolution Provide senior leadership communication in support of the project Monitor status reports and timelines Help to drive change management for higher adoption Project Manager, Functional Lead Project Management Responsibilities Point of contact for overall deployment Secure appropriate resources and ensure availability Ensure participation of all required resources Manage project timeline and ensure schedule adherence Provide business and technical guidance Facilitate configuration workshops Participate in project status meetings Provide timely resolution of any escalated issues Manage communication plan development and project-wide communications to key stakeholders Provide/coordinate signoff on all deliverables Participate in all transition and wrap-up discussions Coordinate stakeholders as needed across sites integrating to Ariba Procurement Content Functional Lead Responsibilities Identify, escalate, resolve project issues Participate in configuration workshops Develop test cases and test scripts for testing Plan, manage, and conduct system testing Plan, manage, and conduct user acceptance testing Validate master data loads from ERP system

Customer Roles & Responsibilities © 2014 Ariba – an SAP company. All rights reserved.31 Role Responsibilities Enablement Lead Develop cutover plan and manage cutover execution Serve as primary contact for Ariba Enablement team Ensure accurate data from supplier data collection Approve supplier communications / education information for the portal Support supplier communications Participate in system test and UAT Conduct catalog enablement related cutover activities Owner of supplier relationships Ensure accurate catalog content requirements Technical Team Technical contact for all Ariba interaction/coordination Extract and format master data from ERP systems to load into Ariba Load master data as well as eProcurement integration (SSO, OCI) with Ariba Procurement Content. Participate in system integration testing and User Acceptance Testing (UAT), as needed Issue investigation and resolution Secure additional technical resources as necessary Conduct cutover activities for site specific integrations Training Lead Overall responsibility for coordinating all training activity for end-users Ensure training needs are addressed/issues escalated appropriately Develop training approach Develop training documentation Plan and manage training delivery Ensure training plan is in sync with overall project plan

Customer Roles & Responsibilities © 2014 Ariba – an SAP company. All rights reserved.32 Role Responsibilities Process Experts / Stakeholders Provide input to Configuration workshops Provide input to test case development Participate in UAT Support supplier enablement activities Receive training Support/conduct business-related cutover activities Designated Support Contact (DSC) Authorize administrative requests, including site customizations and enhancement requests Liaison for end-user requested changes Interface with Ariba regarding end-user issue trends DSCs automatically receive the following types of notifications: •Notifications regarding scheduled/unscheduled downtime and security information/bulletins •Notifications regarding new product releases, new features, and service pack availability Full access on Connect.ariba.com

Actual Customer Resource Commitment © 2014 Ariba – an SAP company. All rights reserved.33 1 Full Time Resource Project Manager Functional Lead Enablement Lead Part Time Resources 1 Training Lead 1 Technical Lead 15+ Testing Resources (Category Managers, Analysts, End-Users, SMEs, IT)

© 2014 Ariba – an SAP company. All rights reserved.34 Project Management Kickoff Testing Training & Communication Go-Live/ Wrap-up Configuration Ariba On-Demand Deployment Framework Configuration Objective: Configure Customer On-Demand Catalog site. Load Customer-specific master data and test eProcurement system connectivity to Ariba Procurement Content. Prepare for testing. Key Activities Master & Reference Data Extract & Load Customer Lead Business Process Review & Design Sessions - Define Catalog Approval Rules - Define Catalog Filters - Define User Profile Approval Rules Ariba Configure Approval Rules / Catalog Filters Ariba Integration w/Customer‟s Ariba Environments Customer • Supplier registered on the Ariba SN • Publication of eCatalog specifications to supplier • Education and Training of eCatalog Management to supplier • Receipt of Content from supplier • Confirmation of connectivity testing (PunchOut) • Confirmation of loaded catalog (CIF) • Review of content / pricing with Customer Key Deliverables

Ariba On-Demand Deployment Framework © 2014 Ariba – an SAP company. All rights reserved.35 Project Management Kickoff Testing Training & Communication Go-Live/ Wrap-up Configuration Testing Objective: This phase culminates in the first delivered version of the system. At this milestone, all configurations are complete and the solution is ready for testing and verification. This milestone is the opportunity for key project stakeholders to evaluate the solution and identify any remaining issues that must be addressed before the solution is cut-over to production. Perform System Testing Customer Perform User Acceptance Testing Customer Manage Issue & Tracking Resolution Ariba Trouble-shoot Testing Issues Joint Key Deliverables Systems Testing Review & Sign-Off Customer User Acceptance Testing Review & Sign-off Customer Test Issue Log Joint Key Activities

© 2014 Ariba – an SAP company. All rights reserved.36 Project Management Kickoff Testing Training & Communication Go-Live/ Wrap-up Configuration Ariba On-Demand Deployment Framework Training & Communication Objective: Develop and execute effective training & communication strategies to ensure successful deployment & adoption of On-Demand software. Develop user communication strategy Customer Deliver communication Customer Develop user training material Customer Deliver user training Customer Develop Change Management strategy (as necessary) Customer Key Deliverables Communication Strategy Customer Training Plan Customer Change Management Strategy Customer Key Activities

Training & Communication © 2014 Ariba – an SAP company. All rights reserved.37 Communications  Email  Ariba News Update on Ariba Buyer Home Page  Slides within Ariba when accessing APC for the first time  Posters at key sites – Guide users to hypercare desks  eSigns (Plasma Screen Ad) Guide users to hypercare desks Training  Quick Reference Guide updated (QRG)  Web Based Training updated (WBT)  Offer special training sessions on new features Support  Staff a table at key sites for 1 week to answer questions  Hypercare Support Team available by email for two weeks

© 2014 Ariba – an SAP company. All rights reserved.38 Project Management Kickoff Testing Training & Communication Go-Live/ Wrap-up Configuration Ariba On-Demand Deployment Framework Go-Live Objective: Deploy the solution, transition the project to operations and support, and obtain final approval of the project. Perform cutover activities Customer Transition to Product Support Ariba Send Go-Live communication to end-users Customer Send Go-Live communication to suppliers Ariba Review Project Wrap-up document w/Customer Ariba Complete Project Wrap-up & Exit Criteria Sign-off Ariba Key Activities Key Deliverables Go-live Checklist Ariba Project Sign-off Document Customer Project Wrap-up Document Ariba

APC Implementation Summary © 2014 Ariba – an SAP company. All rights reserved.39 • Pfizer Implemented APC in Sept, 2013 • 8-Month Implementation • 3 Instances of Ariba (Ariba 9r1 and 8.2) • Managing 354 Catalogs across 40 Countries • Placed over 78K Catalog Orders since Go-Live • No Critical Issues or Major Gaps

Future Enhancements for APC with On-Demand Release Schedule © 2014 Ariba – an SAP company. All rights reserved.40

Future Enhancements with Ariba 9r2 & 9r3 © 2014 Ariba – an SAP company. All rights reserved.41

Continuous Improvement Opportunities © 2014 Ariba – an SAP company. All rights reserved.42 • Launching APC • Searching from Ariba Buyer • Ariba Privacy Statement • Recently Viewed Items • Exact Match using Keyword Search • Categories with Most Items

Launching APC from Ariba Buyer On-Premise © 2014 Ariba – an SAP company. All rights reserved.43 1 2 Issue: Multiple clicks required to launch APC Recommendation: Reduce number of clicks to launch APC from Ariba Buyer On-Premise by removing the “Buy from Catalog” step

Searching from Ariba Buyer © 2014 Ariba – an SAP company. All rights reserved.44 Issue: Searching from Ariba Buyer On-Premise Home Page does not return any results Recommendation: Remove this search option or allow an APC search from Ariba Buyer On-Premise

Ariba Privacy Statement © 2014 Ariba – an SAP company. All rights reserved.45 Issue: Every user must accept the privacy statement the first time logging into APC Recommendation: Allow a company level approval so everyone wouldn‟t have to approve this privacy statement

© 2014 Ariba – an SAP company. All rights reserved.46 APC Home Page

Recently Viewed Items © 2014 Ariba – an SAP company. All rights reserved.47 Issue: Recently Viewed Items on the Catalog Home Page show a punch-out catalog link and not the item Recommendation: Ignore punch-out catalogs from the Recently Viewed Items unless you are able to display the item

Recently Viewed Items © 2014 Ariba – an SAP company. All rights reserved.48 Issue: Multiple clicks required to buy from a punch-out catalog from Recently Viewed Items Recommendation: Launch the punch-out catalog from the Recently Viewed Items

Exact Match using Keyword Search © 2014 Ariba – an SAP company. All rights reserved.49 Issue: No text instructing a user how to perform an exact match search Recommendation: Add text to the Keyword Search to instruct users how to perform an exact match search by using double quotes “”

Categories with Most Items © 2014 Ariba – an SAP company. All rights reserved.50 Issue: Limited to no value on helping an user find an item Recommendation: Allow the APC home page to be configurable to remove this option Also, Ariba should have prepackaged icons for the categories, not puzzle pieces

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