Transcript Ariba LIVE - CD Roadmap and Cloud Touchpoints
On-Premise Roadmap and Cloud Touchpoints
Jon Buckbee, Director, Procurement, Capital One Kerry Green, Senior Vice President Vendor Management and Shared Services, Union Bank Victoria Parra, Senior Procurement Manager David Leonard, Director, Ariba Commerce Services
UC
© 2011 Ariba, Inc. All rights reserved.
Agenda
• • • •
Session Overview
David Leonard, Ariba
Contracts and Sourcing On-Demand Conversion
Jon Buckbee, Capital One
Ariba Buyer to P2P On-Demand Conversion
Kerry Green, Union Bank
Hybrid CD to On-Demand Approach
Victoria Parra
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Overview
• • •
This session is about YOUR roadmap and the options available to you CD Options to Consider
Stay on 9r1 CD Stay on 9r1 CD and leverage On Demand Stay on 9r1 CD, convert some products to On Demand (hybrid) Full conversion to On Demand
How CD fits into the Ariba Commerce Cloud
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Ariba CD Investments
• • • • • • Appointed a General Manager of the Ariba CD business Field Market team created to organize user conferences, customer advisory meetings in order to listen to your needs Dedicated Solution Owner assigned to the CD business that will incorporate your voice into the ER process Dedicated CD engineering team formed to focus on the needs of our CD customers for both responsiveness and quality Provided a Customer Care program for customers with acute support needs such as during an upgrade to 9r1 or conversion to OnDemand Formed a Solution Optimization Team to provide CD customers with advice and options to consider
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Stay on 9r1 CD
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Highly customized solution Fully deployed Highly integrated into backend systems “Control” factor
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Considering OnDemand?
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What are my options?
Stay on CD, Deploy OnD where it makes sense Hybrid Full conversion
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• • •
Stay on 9r1 CD and Leverage OnD Changing enterprise
Acquisitions Emerging markets Spin-offs
IT Strategy Decisions
Cloud strategy Different ERPs Outsourcing
AP Requirements (Invoice Pro)
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• • •
Convert Some Products to OnD
Hybrid Approach Broad definition
Any customer who has a mix of OnD and CD solutions
Specific definition
Pairing Contracts Pro (OnD) with Ariba Buyer (CD) Enables integrated Contract Workbench > Contract Compliance flow Enables Single Sign On-based navigation between OnD and CD
Things to Consider
Take full advantage of latest Sourcing/Contracts capabilities while maintaining Downstream customization and integration investments Optimize your solution set while maintaining a sense of cohesion Hybrid consists of “loose” integration rather than “tight” master data integration
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• • •
Full Conversion to OnD
Broad definition
Redeploy your CD solution to the applicable OnD solution
Specific definition
Redeploy as much configuration and customization from CD as possible into OnD – – Reevaluate your CD customizations and configurations Continuum of implementing “like new” or “like for like”
Things to Consider
Faster access to the newest functionality, combined with a lower total cost of ownership Maintain historical transaction data in a local archive or a reporting solution
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CD Customers Can Leverage the Ariba Commerce Cloud Today
Sourcing Pro SIPM Contracts Pro Savings Tracking
Ariba Commerce Cloud Technology
P2P Services Procurement Spend Visibility P2O eForms
1.
2.
3.
4.
AN49 / AN50 Upstream OND to Downstream CD Hosting services with Ariba or AT&T Hosted Catalogs (Procurement Content) 5.
6.
7.
Data Enrichment with D&B data SFDC integration DocuSign 8.
9.
Ariba Exchange Ariba Discovery 10. Application Management 11. Best Practice Center 12. Enablement Support 13. Premium Support 14. Empowerment help deck support 15. Invoicing Solutions
Peer Collaboration
Community
World’s Largest Trading Network Domain Expertise
Capabilities
Value Enablement Invoice Pro Discount Procurement Content Partner Ecosystem Execution Support
ACS App Management BPC ADE Enablement
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Contracts and Sourcing OnDemand Conversion Jon Buckbee,
Director, Procurement
UC
© 2011 Ariba, Inc. All rights reserved.
Agenda
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Corporate Overview Executive Summary Choosing between Different Models Planning for the Implementation Implementation Challenges and Responses Lessons Learned and Best Practices
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• • • • •
Capital One at a Glance
A leading diversified bank with $197.95 billion in assets, $125.9 billion in loans and $122.2 billion in deposits
Top 10 largest banks, based on deposits 1 4th largest retail depository institution in metro New York 2 Largest consumer and commercial banking institution headquartered in the Washington, DC region Top-5 credit card issuer in the U.S.
3 The 3rd largest issuer of small business Visas and MasterCards in the U.S.
4 The 4th largest independent auto originator
Major operations in 8 U.S. cities, Canada, U.K.
Approximately 43 million customer accounts and 28,000 associates A FORTUNE 500 Company - #144 Numerous recent awards including:
CEO named to the Washington Business Hall of Fame Banking president named one of 25 Most Powerful Women in Banking by U.S. Banker Fortune Top Companies for Leaders Named to Working Mother’s 100 Best Companies list & to Diversity Inc’s Top 50 List Ranked #41 on InformationWeek 500 list of most innovative companies
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1) 2) 3) 4) Deposits ranking as of Q3 2010; Ranking includes domestic deposits.
Source: FDIC, June 2010, deposits capped at $1B.
VISA, MasterCard, Amex, Discover reported domestic Outstandings, Q3 2010.
Source: Nilson, Q4 2009.
Executive Summary
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Capital One has been an Ariba customer since 2005
Sourcing, Contracting, Spend Vis, SPM
Facing contract expiration and retired product service charges from Ariba, we went to market Selected Ariba On Demand
Executed contract in mid-2010
Converted from Ariba CD to Ariba OND in Q4 2010
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System Options and Considerations
SV Fully Integrated Suite S CM SPM Purch. AP
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Value derived from the integrated flow of data through the entire process – systems “talk” to each other Simplicity: 1 system to manage, maintain, and train on SV S Best in Breed CM SPM Purch. AP SV S Hybrid CM SPM Purch. AP
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Each module is best in class Can substitute different modules, as needed Often involves the employment of the “Super-user” strategy in order to drive lowest pricing
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Minimizes change & implementation risk – closest to our current state Balances system maintenance complexity against system capabilities 15
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SaaS vs. “Behind the Firewall” Considerations
Software as a Service (SaaS)
+ + − −
Lower Total Cost of Ownership Less reliance on Capital One IT (Procurement can “self support”) Less ability to customize fields, workflow, reporting Less direct control over data security Behind the Firewall
+ + − −
Fully customizable Direct control over data security Higher Total Cost of Ownership Requires more Capital One IT support 16
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Prior to OD Migration, We Took Stock of our Current State An enormous number of documents that we needed in On Demand
Hundreds of Sourcing Projects Thousands of NDAs and Supplier Performance Scorecards Tens of thousands of Contract Documents •
Inconsistent organization of documents within Ariba CD
Inconsistent naming conventions Inconsistent linking of contract parent – child relationships Superseded documents not reflected as such •
Resource considerations and constraints
End user community which varied in its proficiency with Ariba CD Limited number of resources to draw upon for implementation project Attrition of the most experienced IT resource
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Our First Step Was to Align Procurement Leadership on Guiding Principles
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Principle Change Management and Training will target adoption maximization Priority High
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Process will lead technology, but we will not “over process”
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Invest the time to export our Contract Workspaces in a way that will serve us in the future
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The cross-over from old system to new will be clean and minimize disruption to BAU activities
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Implementation completed by 11/30 (December is off the table due to holidays) Low 18
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Four of our Workstreams Focused on Preparing for the Implementation
Workstream Pre-Migration Workspace Clean-Up File Migration Process Change Management Ariba Support
• Consultation on the Ariba archive process • Dependent on migration option selected • • Consulting resources to assess “As Is” and “To Be” processes Provide input to Sourcing Kaizen • Consulting resources to conduct 4 week Needs Assessment and Training Plan creation
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The Other Three Workstreams Focused on System Setup and Connectivity Workstream Sourcing / Contracting Configuration Spend Visibility Configuration IT Ariba Support
• On-Site consultant to facilitate the configuration process and provide expert guidance • Project Management resource assigned for term of contract to provide guidance and deliver upon requirements established by COF • On-Site consultant to facilitate the configuration process, Single Sign-on, and provide expert guidance
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Implementation Challenges and Responses
Issue Response
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Difficulty in transferring files and data
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Persistence!
Learn by doing Leverage Ariba knowledge & tech support
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“Slipping” project timelines
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Low resource bandwidth
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Daily morning status meetings Project “war” room Visual charts of daily targets & actuals
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Lean on Ariba Learn by doing Hire temp labor for tactical support
© 2011 Ariba, Inc. All rights reserved.
Lessons Learned and Best Practices
File Migration
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Clean your data!
Upload order and batch size is important
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Know your OD error messages produced Training
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Ensure that you attend Ariba System Administration training Tailor training to users based upon their familiarity and future usage of the system Invest in training your Trainers – and not on your Training Materials Other
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Ariba proved to be a very responsive partner Offsite to design system configuration was highly effective Make the Project Team available and visible for several weeks after Go Live
© 2011 Ariba, Inc. All rights reserved.
Union Bank’s Journey with Ariba Kerry Green
, Senior Vice President Vendor Management and Shared Services © 2011 Ariba, Inc. All rights reserved.
UC
• • • • • • • • •
Agenda
Corporate Overview Where We Started Major Milestones and “Future State” Why Ariba OnDemand Building a Business Case Current Ariba Footprint Project Highlights New Process Change Management – Keys to Success
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Union Bank
Corporate Overview
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Union Bank, N.A., is the primary subsidiary of UnionBanCal. UnionBanCal Corporation is a financial holding company with assets of $79.1 billion at December 31, 2010.
UnionBanCal Corporation is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG, NYSE:MTU), one of the world's largest financial organizations. Union Bank is a full-service commercial bank providing an array of financial services to individuals, small businesses, middle-market companies, and major corporations. The bank has more than 11,000 employees and operated 401 banking offices in California, Oregon, Washington and Texas and two international offices, on December 31, 2010. Corporate headquarters are in San Francisco, CA Masashi Oka is president and CEO.
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Where We Started
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Ariba Buyer Implemented across the Bank for Purchasing Only capturing approx 10% of commodity spend on POs through Ariba Buyer Not capturing complex spend (e.g. software and professional services, marketing, etc.) A/P was a paper-based process No end-user visibility into PO status (e.g. ability to see remaining funds on PO or payments against PO) Limited access to financial information to support sourcing projects 26
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Major Milestones and “Future State”
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Design an integrated Source-to-Pay program to increase control and provide detailed commitment and spend data at an end-user level Increase use of POs to capture spend Automate the Accounts Payable process Ability to proactively manage our vendor expenses at the user level Develop a Strategic Sourcing Organization to support the Bank
Capture and actively source spend areas across the Bank to leverage spend and increase price performance
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• • •
Building a Business Case
Why Upgrade (or) Convert to On Demand?
Do Nothing Pro: Keep the functionality and technical interfaces we have today.
Con: Maintenance increased due to Retired Product Support Program; UB concerns on support of older version over time ; Limited functionality to capture complex spend on POs.
Upgrade current system Pro: Keep similar feel and functionality as what we have today and get benefits included in each upgrade.
Con: No additional functionality to capture complex spend on POs; Behind the firewall software upgrades and enhancements will be less frequent; Continued maintenance and infrastructure costs.
Replace Buyer with On Demand Pro: Capture significantly more spend on POs through Ariba; Greatly increased functionality; Automates more business processes; Directionally same cost as annual maintenance; Eliminate internal infrastructure costs; Ariba upgrades and enhances more frequently - included in the annual cost.
Con: May impact how we interface technically with Buyer today; Bank no longer “owns” the software.
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• • • •
Why Ariba On Demand
• Bank selected Ariba’s OnDemand (SaaS) model Strong return on investment, plus greatly increased functionality.
Ease of implementation, maintenance and ongoing upgrades.
Ariba is ERP agnostic Improves business process by tying together Purchasing and Payables and automating the functions Ability to leverage best practice and market leading processes No additional infrastructure needed, all hosted by Ariba. Reduces existing infrastructure and expense by removing Ariba Buyer and other ad hoc tools.
• • Access to Ariba Discovery for real-time market based pricing knowledge Ariba OnDemand made it cost effective to add upstream modules (e.g. Sourcing and SIPM)
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• • • • •
Project Highlights
Converted downstream from CD to OnDemand and implemented the Sourcing and SIPM module Deployment Ariba estimated approx an 18 - 20 week deployment Actual implementation nine months Capture of spend on PO Go from 10% to 25% within first six months of implementation, 40% by year end. Ramp up additional spend over time to 70%+. Scalable, best practice, Purchase to Pay program As the Bank grows, easier to scale and expand Ariba’s automated platform vs. the Bank’s Ariba Buyer platform Run two sourcing events through the system to build credibility around the new tools
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New Process
Sourcing and Procurement Process Category Management Spend Analysis/ Demand Management Supplier Management Contract Negotiations and Terms Requisition Response Order Lifecycle Mgmt and Tracking Invoicing and Reconciliation Reporting & Analytics
Visibility real-time spend and supplier data Compliance programs, process and contract terms Cash management auto triple match, invoice and allocations Services Supplier Relationship Management • • • • • Unifying sourcing, purchasing and supplier management Streamlines buyer and supplier collaboration More efficient and accurate invoice to payment cycles Real-time visibility for spend and supplier analysis Single platform for any time, milestone or fee-based service
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•
Change Management – Keys to Success
Change Management is a key to success. Implementation of an overall Communication Plan, including Webex and personal training for super-users; multiple communications to all end users; ad hoc training; etc.
• Required more resources than suggested. Ariba guidelines severely underestimated the number of hours/resources to implement the system. • Recommend strong joint planning sessions with Ariba prior to signing the agreement to understand current environment and future state to streamline implementation. Develop a both a business and technical plan.
• If moving from behind the firewall to an OnDemand system, ensure IT completely understands the impact of the move to their role.
• Aggressively move spend into the system and have senior management support. “Stealthing” in the spend is not effective as it is wasting the value of the investment.
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Hybrid CD to On-Demand Approach Victoria Parra,
Senior Procurement Manager
UC
© 2011 Ariba, Inc. All rights reserved.
Hybrid CD to On-Demand Approach
• • • •
Company Profile
Leading human therapeutics company in the biotechnology industry
Ariba History
Ariba Buyer since 2000, Upstream since 2006 Utilize Ariba’s Application Management services
Upgrade Path
Upgraded and Integrated full suite of CD products to 9r1 Moved to hosted model during upgrade
Conversion Path
Currently converting all Upstream applications to OnDemand Integrating 10s2 Upstream to 9r1 Downstream via Hybrid Integration
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Hybrid CD to On-Demand Approach
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Why On Demand
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Project Overview
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Lessons Learned 35
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Questions
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“Safe Harbor” and Confidential Information Statement
This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.
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© 2011 Ariba, Inc. All rights reserved.
CD Roadmap and Cloud Touchpoints
Jon Buckbee, Director, Procurement, Capital One Kerry Green, Senior Vice President Vendor Management and Shared Services, Union Bank Victoria Parra, Senior Procurement Manager David Leonard, Director, Ariba Commerce Services
UC
© 2011 Ariba, Inc. All rights reserved.