1. 1985
Closed Economy

2. 2018
Open Global Economy

3. How can we move ahead????

4. The Procurement Landscape
Direct Material
Indirect Material
Services
About 80% of the Total expenditure of the organization is spent in Procurement

5. Companies struggle with inconsistency across their contracts
Why Cloud & Big Data…. ?????
Only handful firms have a database with a capacity of more than a petabyte
(1 million gigabytes)
Very few businesses have some kind of data management initiative in place
Companies say they need to reduce the cost of their contracting process and activities.
Companies struggle with inconsistency across their contracts
Procurement employees utilize most of their time in ordering materials and services.

6. What Is Digital Procurement Transformation?
Radical reconceptualization and reorganization of procurement strategy.
New and emerging digital technologies.
Results in outsized profits.
Build a more agile and competitive organization.
Benefits of Digital Transformation
Information Technology
Real time, automated availability of data
Simplified and improved communication
Informed decision making
Faster response to changes in market dynamics
People & Management
Focus on strategic activities
Optimal utilization of human resources
Greater synergies between internal & external stakeholders
Establish procurement’s role as a valued partner
Organization & Processes
Faster and more effective processes & workflows
Greater flexibility & agility
Enhanced collaboration across enterprise
Business
Greater profitability
Improved market competitiveness
Effective communication
Development of client centric model
file:///C:/Users/gauravpa/Downloads/Digital-Procurement-Transformation-Brochure.pdf

7. Delivery What It delivers
Real-time visibility for proactive monitoring and risk mitigation
Elimination of routine and repetitive tasks.
Enhanced speed, control and efficiency across all source-to-pay activities.
Proactive monitoring and mitigation of supply chain risks.
More time for business advisory work & new modes of value creation

8. Digital tools for procurement teams
Virtual Company Malls
Cloud based shopping centers that allow internal customer to choose goods and services.
Virtual Payment Cards
Similar to Credit and Debit Cards
Buyers can gain more control over the transactions
Supply Analytics dashboard
Overall performance review in a single screen
Solution of specific procurement problems
Supplier Network
Broad platform to connect its supply market & integrating the tools
Virtual Meeting room
Common place for interaction & collaboration with strategic suppliers
Virtual Tracking room
For managers to keep track of the in process projects

9. (Infrastructure as Service)
Cloud Computing
Scalable and elastic IT-enabled capabilities.
Available as service to external customers using Internet
Reduced cost of services and increased choice of technologies due to economies of scale.
Cloud Computing
SAAS
(Software as Service)
PAAS
(Platform as Service)
IAAS
(Infrastructure as Service)

10. Elements of Cloud procurement

11. Advantages of Cloud procurement : Tangible benefits
Reduced Costs
Transparency on Expenditure
Increase in Productivity
Improved Control and scalability

12. Factors that derail cloud procurement success
Lack of formal cloud procurement roadmap
Not enough information to determine security requirements.
Not enough information to determine security requirements.
Procurement and IT teams do not collaborate effectively.
Text
Text
Traditional procurement processes are not structured to acquire services.
Procurement and IT teams do not collaborate effectively.

13. BIG DATA ANALYTICS v/s “TRADITIONAL” BUSINESS ANALYTICS
WHAT IS BIG DATA?
High-volume, high-velocity and high-variety information assets
demand cost-effective, innovative forms of information processing
Results in enhanced insight and decision making
BIG DATA ANALYTICS v/s “TRADITIONAL” BUSINESS ANALYTICS
Uses much larger set of data
Many different data types & combinations
Typically can’t process with traditional systems
Predictive Analytics
Data Mining
Text Analytics
Visualization
Finding relationships

14. Four V’s of Big Data Variety Volume Veracity Velocity
More than 420 million wearable ,wireless health monitors
Four V’s of
Big Data
By year 2020, 1.7 megabytes/second of new information will be created by every human being on the planet.
Variety
DIFFERENT FORMS OF DATA
Volume
SCALE OF DATA
6 Billion people have cell phones
400 Billion hours of video watched every month
400 million tweets sent by 200 million users shared every month
30 Billion pieces of content shared on Facebook every month
7.7Billion
Modern Cars have close to 100 Sensors that monitor running parameters
1 in 3 Business Leaders don’t trust the information they use to make decisions
Veracity
UNCERTAINITY OF DATA
Velocity
ANALYSIS OF STREAMING DATA
18.9 Billion network connections
-almost 2.5 connections per person on earth
27% of Respondents Business Leaders in one survey were unsure of how much of their data was inaccurate.

15. Using analytics to gain deep insights across the source-to-pay process

16. Expectations & hurdles for implementation of Big data analytics
Non homogenous internal data
Unintegrated data sources
Gain transparency
Automation of data collection
More efficient KPIs
Analytical Prediction
Better representation of Data
Availability of new data sources

17. Key areas where analytics is useful
Vendor Master
Management
Invoice Management
Contract Management
Purchase Order (PO)
Reducing purchase price variance.
Improving compliance to payment terms and PO approval limits.
Increasing adherence to NoPO- NoPay.
Reducing retrospective Pos.
Reducing savings leakage by detecting & avoiding spend with unapproved vendors
Creating accurate vendor records to facilitate more efficient transaction processing.
Detecting & avoiding fraudulent or collusive transactions.
Improving compliance with payment terms
Increasing spend under contract.
Increasing compliance with contract price.

18. Advantage of Big Data analytics & Cloud in Procurement Function
visibility and accuracy of information
Operational efficiencies
higher service quality
Elimination of Cost of poor data quality
Improved risk management
New business models

19. Thank You!