Building a Powerful Business Case That Will Resonate With All Key Stakeholders
1 like781 views
The document outlines a framework for building a compelling business case that satisfies various stakeholders, featuring insights from executives at BP, Grupo Posadas, and BB&T. Key components discussed include establishing vision and goals, evaluating opportunities, conducting cost/benefit analyses, and securing stakeholder buy-in. Additionally, it highlights corporate overviews of the companies involved and the importance of process optimization and governance in procurement management.
Building a Powerful Business Case That Will Resonate With All Key Stakeholders
- 1. Building a Powerful Business Case: One That Resonates with All Stakeholders Fausto Jimenez – Grupo Posadas, Purchasing Director Mark Schwiebert – BP, Global Procurement Director Samantha Haynes – BB&T, SVP-ESM Business Process Manager Ben Redwine – Ariba, Ariba Commerce Services Managing Director © 2011 Ariba, Inc. All rights reserved.
- 2. Agenda Panel Introductions Building a Powerful Business Case – Key Success Factors Confirm Vision, Goals and Objectives Evaluate the Opportunity Develop a Cost/Benefit Analysis Develop a Multi-Year Roadmap Obtain Stakeholder Buy-In Q&A © 2011 Ariba, Inc. All rights reserved.
- 3. Corporate Overview BP is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items Annual Revenue of $284B 97,000+ employees active in 29 countries Exploration & Production, Refining, Distribution, Alternative Energy, and customer facing businesses like Retail, Chemicals, Retail, LPG/Air/Marine fuels, and Bitumen Brands: BP, Arco, Aral, am/pm, Wild Bean Cafe, and Castrol Center-led strategic performance unit operating model with two segments – Exploration and Production (upstream) and Refining and Marketing (downstream) Ariba Solutions: Sourcing, Contracts, SIPM and P2P © 2011 Ariba, Inc. All rights reserved.
- 4. Corporate Overview Grupo Posadas is the leading hotel company in Latin America, operates over 115 hotels in Mexico, Brazil, Argentina and Chile, with over 20,000 rooms in 50 beach and city destinations Annual Revenue: $580,000,000 USD 16,000+ employees in four countries Business areas: Hotel management & operations, Call Centers, Business Process Outsourcing, Loyalty programs Five Hotel Brands in Mexico: Aqua, Fiesta Americana Grand, Fiesta Americana, Fiesta Inn and One Two Hotel Brands in South America: Caesar Park and Caesar Business Ariba usage: Sourcing: 10 users Procure to Order (P2O): 50 users (roll out in process) Contract Management: 20 users Supplier enablement: 10 users Supplier Info & Performance Mgmt (SIPM): 2 users Spend Visibility: 5 users © 2011 Ariba, Inc. All rights reserved.
- 5. Corporate Overview BB&T Corporation, is the 10th largest financial holding company, with $157.1 billion in assets Over 1,800 financial centers Enterprise Spend Management reporting to CFO within the Financial Management Division Annual spend of $1.2B ($800M is “sourceable”) with 30,000+ suppliers Business Process Manager – Support for Ariba Platform © 2011 Ariba, Inc. All rights reserved.
- 6. Confirm Vision, Goals and Objectives © 2011 Ariba, Inc. All rights reserved. Become the standard go-to destination for supply base management Vision Sourcing Purchasing & Ops Accounts Payable Areas of Focus Strategic Objectives Strengthen governance and establish alignment across Procurement & Finance Optimize and educate on process, policies and process controls Drive out process inefficiencies and lower costs Adopt customer-centric mentality for our internal and external stakeholders b Value Process Automation Working Capital Optimization Price Reduction Risk Management Spend Compliance
- 7. Evaluate the Opportunity © 2011 Ariba, Inc. All rights reserved. Invoice Receipt Exception Handling Approval Payment 0 Invoice Date ~3 Invoice Rec’d Location of Requisition ~26 Invoice Approved ~28 Invoice Rec’d by AP 30 Invoice Paid 30+ Invoice Scanned ~5 Requestor Receives Invoice ~15 Initial Exceptions Resolved & Routed for Approval ~23 Further Exceptions Resolved Spend Group Suppliers Spend % of Total Running % >$50M 18 $185,673,352 18% 18% $10-50M 68 $578,482,883 32% 51% $5-10M 64 $173,933,105 13% 64% $2-5M 140 $142,504,933 12% 76% $1-2M 236 $62,541,872 8% 83% $500K-1M 295 $16,376,421 6% 89% $250-500K 417 $40,598,296 4% 93% $100-250K 708 $33,581,477 4% 96% <$100K 10,497 $38,171,748 4% 100% Grand Total 12,443 $1,091,864,087 100% Pay File Data Set Characteristics* Pay Date Range: 1/1/10 – 12/31/10 ~$770 M in spend ~42,000 invoices ~4,800 suppliers Average DPO (weighted by invoices) 39 Average DPO(weighted by spend) 33 Payment Timeliness ~$85 M in spend early/on-time ~4,400 invoices early/on-time 420 suppliers paid early/on-time
- 8. Evaluate the Opportunity © 2011 Ariba, Inc. All rights reserved. Staff with long tenure Staff with short tenure Previous experience in systems implementation Limited/ no experience in systems implementation Clear executive sponsor and organizational buy-in Aggressive timeline Conservative / ample timeline Higher degree of readiness / presence of capabilities Clear governance structure Undefined governance structure Available staff to dedicate to project Limited/ no staff available to dedicate to project Undefined executive sponsor & limited organizational buy-in Experience with business change/ transformation Limited/ no experience with large scale business change Lower degree of readiness / presence of capabilities Business & IT have a good track record of working together Business and IT are not well integrated Limited process documentation and policy enforcement Well documented processes and enforced policies 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3
- 9. Develop a Cost/Benefit Analysis © 2011 Ariba, Inc. All rights reserved.
- 10. Develop a Multi-Year Roadmap © 2011 Ariba, Inc. All rights reserved. Month 1 Wks 3-4 Months 5-6 Y1 Q3 Y1 Q4 Y2 Q1 Y2 Q3 Y3 Q1 Y3 Q3 Y2 Q2 Y2 Q4 Y3 Q2 Month 1 Wks 1-2 Months 3-4 Month 2 Wks 5-6 Month 2 Wks 7-8 P2P Future State Design: Org, Process & Policy, Tech, Perf. Mgmt Program & Change Mgmt Procurement Value Enablement Initiate Program Change Mgmt Strategy & Program Plan Wave I Enablement Optimization - Evaluate and Refine Operating Environment: People & Org, Process & Policy, Technology, Performance Management Program & Change Mgmt: Ongoing Program Oversight, Training, Communications & Incentives AP & WCM Value Enablement Wave II Enablement Wave III Enablement Solution Deployment Services Procurement Procure-to-Pay Discount Mgmt P2P Future State Design: Org, Process & Policy, Tech, Perf. Mgmt Wave I Enablement + Invoice Automation Optimization - Evaluate and Refine Operating Environment: People & Org, Process & Policy, Technology, Performance Management Wave II Enablement Wave III Enablement Invoice Conv. Services Y3 Q4 Sourcing Supplier Management Spend Visibility Contract Management
- 11. Obtain Stakeholder Buy-In Leadership – Business Function & LOB Procurement A/P & Finance Treasury IT Lines of Business © 2011 Ariba, Inc. All rights reserved.
- 12. Questions © 2011 Ariba, Inc. All rights reserved.
- 13. “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. © 2011 Ariba, Inc. All rights reserved.
- 14. Building a Powerful Business Case: One That Resonates With All Stakeholders Fausto Jimenez – Grupo Posadas, Purchasing Director Mark Schwiebert – BP, Global Procurement Director Samantha Haynes – BB&T, SVP-ESM Business Process Manager Ben Redwine – Ariba, Ariba Commerce Services Managing Director © 2011 Ariba, Inc. All rights reserved.