Published on February 27, 2014
Global Source to Pay Transformation Focus on Business Outcomes John McGoun, Source to Pay & Supply Chain Process Owner, Symantec Michael Dunn, Vice President, Source to Pay, Genpact #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
Next 60 mins… • • • • • • 2 Quick Facts – Symantec and Genpact WHAT – did we set out to achieve WHY – did we need an end-to-end Source to Pay process HOW – did we achieve WHEN – did it all come together and the impact!!! Q&A © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved.
Symantec Is – Symantec is a global leader in providing security, storage and systems management solutions to help consumers and organizations secure and manage their information and identities. 3 © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved.
Symantec at a Glance Founded in 1982 IPO in 1989 Approximately 21,500 employees Operations in more than 50 countries #379 on the 2013 Fortune 500 100 percent of Fortune 500 companies are customers * R&D 4 $6.9 billion revenue in FY 2013; approximately 52% outside of the U.S. More than 1900 global patents Symantec footprint on more than one billion systems Included on Fortune’s Most Admired Companies list Invests 14% of annual revenue in R&D* investment is Non-GAAP © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved.
Genpact – A Global Leader in Transforming and Running Business Processes, Operations and Technology • Spun off from GE as an independent company in 2005 • Listed on NYSE in 2007 (Ticker: G); exited FY 2013 with annual revenues of $2.1 billion • Strong growth; revenues growing at 17% CAGR since 2007 • Best–in-class NPS (net promoter score) of 65%; ~80% growth from large referenceable client base Pioneers in Business Process Management 5 • 4,700+ processes, 800+ clients, 11 core industry verticals, delivery centers in 18 countries • >70% revenues from clients using multiple delivery centers • 20% revenue from onshore delivery © 2014 Copyright Genpact. All Rights Reserved. 55+ Nationalities 30+ Languages © 2014 Ariba – an SAP company. All rights reserved.
Genpact Source to Pay Credentials – Strong Focus on Re-Engineering, Process, Technology and Analytics Source to Contract Spend analysis Category management Procure to Pay Planning and PO issue Negotiation and contracting Material receipt Accounts payable 45+ Customers $45 BN+ spend managed 7.5 MM+ purchasing transactions /yr 2,200+ FTE’s 13 Delivery locations; 25+ languages 40 MM+ invoices managed /yr Blue Chip Client Base Our Technology Application stack No.1 End-to-End Procurement Outsourcing Vendor Ranked Among the Top Global Procurement BPO Providers by Black Book of Outsourcing Nelson Hall Among Top 100 Global Supply Chain Service Providers Supply & Rated as ‘PO Market Star Performer’ By Everest Research Demand Chain Executive (SDCE) 6 © 2014 Copyright Genpact. All Rights Reserved © 2014 Ariba – an SAP company. All rights reserved.
What did we set out to achieve? Desired Business Outcomes Commercially optimal deals that represent the best value for Symantec Risk mitigation that ensures protection to Symantec and it’s brand A good employee experience driven by an intuitive and efficient buying process A True Source to Pay End to End Process was required 7 © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved.
WHY – Because everything is inter related... Business Impact Inadequate spend visibility Spend Management Bad spend visibility Delayed or inaccurate receipt transactions Money leakages Manual accruals Incomplete market assessment Hindered actionable category strategy Wrong negotiation strategy Category Strategy Negotiation & Contracting Procurement Inadequate negotiationleverage Contract non-compliance Delayed payments Non PO invoices A silo-ed outlook adversely impacts Visibility, Compliance and Savings 8 © 2014 Copyright Genpact. All Rights Reserved. Symptom Failure to link procurement to contracts © 2014 Ariba – an SAP company. All rights reserved. Payment
HOW - We Add Value for Our Business Partners Satisfied Business Partners Good Employee Experience Risk Mitigation Enabling Functions Examples: CEC, VMO, Insurance Info Security Commercial Optimization Employee Engagement Protection of Company data & information Delivered supplier performance & cost savings while ensuring accurate payments Employees know how and when to engage process Operating Processes Supplier set up… PO processing… Supplier Payment Consistent Supplier Governance Key Performance Indicators Spend Under Management, Savings, Employee Experience 9 © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved. Enabling Functions Examples: Legal, Trade Compliance, Treasury, Tax
HOW – Key Levers for Our End-to-End Transformation People 10 © 2014 Copyright Genpact. All Rights Reserved. Policy Process © 2014 Ariba – an SAP company. All rights reserved. Technology
PEOPLE – How to Organize Symantec S2P Team Internal team Third party partners ON-SITE PROGRAM MANAGEMENT ON-SITE CATEGORY MANAGEMENT Category management center of excellence P2P OPERATIONS CENTER Sourcing Marketing Travel IT Facilities Corp Services MULTI-CLIENT MARKET INTELLIGENCE AND OPTIMIZED BUSINESS PROCESSES 6000 SOURCING EVENTS 11,000 CONTRACTS $400B SPEND ANALYZED 100+ KPIs 200+ LEADING PRACTICES 11 © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved.
PEOPLE – How to Drive Adoption Source to Pay UAT Change Network Branding & Communications Coaching & Training Leadership Engagement Go-live Preparations 12 Stakeholder Engagement © 2014 Ariba – an SAP company. All rights reserved. Change Effectiveness Dashboard © 2014 Ariba – an SAP company. All rights reserved.
POLICY – How to Change and Mandate • • • • • • • 13 Determine the scope of the process(es) Identify your audience – S2P team or employees? Consider the customer of the process when drafting the policy Establish a governance structure for S2P policies If a corporate policy framework does not exist, start one for S2P Level 1, Level 2, level 3, Work Instructions, etc. Review policies regularly – as processes evolve, so should policies! © 2014 Copyright Genpact. All Rights Reserved. © 2014 Ariba – an SAP company. All rights reserved.
TECHNOLOGY A proven technology foundation is key to enabling simplified business operations, driving greater compliance, improving financial performance, and providing detailed insights across the S2P process Business Outcomes - Enabled by Technology & Driven by Process Simplified Business Operations Delight customers through ease of doing business Improved Financial Performance Enable growth and margin goals Single Repository with Standard Data Accessible, reliable data for key metrics: # new customers, attrition rates, RGUs, revenue per customer, etc. Integrated Technology Platform Analytics 14 14 Source & Contract © 2014 Ariba – an SAP company. All rights reserved. Procurement Invoice
PROCESS – How to Drive End-to-end Process Optimization • • • • Implemented the 6-step SEP - Smart Enterprise Process Framework Implemented End to End process metrics to focus on sum of all parts Training provided to process SMEs on Management by Metrics & LEAN Focused on few quick wins like Tactical Buy, Spend Visibility to drive adoption 4 3 2 1 Identifies the key business outcomes for the company 15 Maps every core business process at a granular level © 2014 Ariba – an SAP company. All rights reserved. Links business outcomes and benchmarks to key performance measures and key performance drivers Identifies drivers of performance variability & roadmap for improvement by leveraging insights & best practices 6 5 Offers solutions, including process, analytics reengineering & focused IT Implements solution to deliver business outcomes through process efficiency, transformation projects, Point IT / analytics solutions
The Impact YEAR 2007 Spend Under Management @ Early Engagement Sourcing Savings 47% in North America Limited ability to record early engagement Limited ability to record savings at the point they occurred Spend Under Management @ Early Engagement Sourcing Savings 79% Compliance to early engagement for Sourcing at 95% $150MM YEAR 2014 Global 16 © 2014 Ariba – an SAP company. All rights reserved.
Every Element of Our Strategy Was Focused on End-to-End Business Outcomes Commercially Optimal Deals 17 © 2014 Ariba – an SAP company. All rights reserved. Risk Mitigation Employee Experience
Ask Anything! 18 © 2014 Ariba – an SAP company. All rights reserved.
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