Business Commerce Innovation [Boston]1. 1
Commerce Innovation: 2014
Andrew Bartolini, Chief Research Officer
Christopher J. Dwyer, Research Director
Ardent Partners
October 2, 2014 2. 2
CO-PRESENTERS
Copyright © 2014 - Ardent Partners Ltd.
Andrew Bartolini
Chief Research Officer
Ardent Partners
Christopher J. Dwyer
Research Director
Ardent Partners 3. 3
AGENDA
Introduction
Commerce Innovation
Convergence on the Network
Copyright © 2014 - Ardent Partners Ltd. 4. 4
Ardent Partners is a research and advisory firm focused on defining and advancing the supply management strategies, processes, and technologies that drive business value and accelerate organizational transformation within the enterprise.
ARDENT PARTNERS
Copyright © 2014 - Ardent Partners Ltd. 5. 5
CPO Rising: The site for CPOs and other supply management executives
www.cporising.com
ARDENT’S NETWORK OF SITES
Copyright © 2014 - Ardent Partners Ltd.
Payables Place: Global source for ePayables news, research, & analysis
www.payablesplace.com 6. 6
ARDENT’S’ RESEARCH COVERAGE: SUPPLY MANAGEMENT
Commercial Cards
Supply Risk & Supplier Information/Performance Management
Contingent Workforce Management
Other Complex Categories (T&E , Meetings and Events, Print, etc.)
Spend Analysis
eSourcing
Contract
Management
eProcurement
ePayables
Copyright © 2014 - Ardent Partners Ltd.
Procurement Outsourcing 8. 8
WHAT IS BUSINESS COMMERCE?
Commercial Cards
Supply Risk & Supplier Information/Performance Management
Contingent Workforce Management
Other Complex Categories (T&E , Meetings and Events, Print, etc.)
Spend Analysis
eSourcing
Contract
Management
eProcurement
ePayables
Copyright © 2014 - Ardent Partners Ltd.
Procurement Outsourcing 9. 9
Copyright © 2014 - Ardent Partners Ltd.
WHAT IS BUSINESS COMMERCE?
BUY
PAY
MANAGE 10. 10
BUSINESS COMMERCE INNOVATION
Copyright © 2014 - Ardent Partners Ltd.
BUY
PAY
MANAGE
22%
4%
2006
2011
Motorola Market Share:
Mobile Phones
Key Takeaways:
Joy’s Law: “Innovation will happen, and it will happen elsewhere.”
Innovation extends to all supply markets
A ‘static “supply base is now a red flag
No company can risk going it alone
Increasing reliance on suppliers
Suppliers are partners assets 11. 11
CPO’S AGENDA: THEN AND NOW
CPO View 2009
"There has been a change in context, speed, and risk. It's time for procurement to be the hero.“
Christina DeLuca
CPO - BP
CPO View 2014
"The minute you get complacent, people will begin to offer other opinions. You must stay sharp.“
Chris Shanahan
CPO - BD
Copyright © 2014 - Ardent Partners Ltd. 12. 12
TOP CPO PRIORITIES (NEXT THREE YEARS)
Copyright © 2014 - Ardent Partners Ltd.
©Ardent Partners - 2014
Innovation 13. 13
TOP STRATEGIES FOR SOURCING TEAMS IN 2014
Copyright © 2014 - Ardent Partners Ltd.
55%
47%
42%
32%
31%
31%
Improve
collaboration
with business
Improve
collaboration
with suppliers
Improve use of
technology (buy
new systems /
improve current
ones)
Implement
stronger
policies and
processes
Improve
collaboration
with the CFO
and other
executives
Optimize current
systems and
processes
© Ardent Partners - 2014
Collaboration 14. 14
THE CPO ROLE IN 2014
Purchasing
Sourcing
Cash
Risk
Innovation
Sales
M&A
New Products
New Markets
Joint Ventures
Travel
Outsourcing
Contingent Workers
Trusted Advisor / Influencer / Special Projects
Accounts Payable
Copyright © 2014 - Ardent Partners Ltd.
Convergence 15. 15
BUSINESS COMMERCE INNOVATION
Copyright © 2014 - Ardent Partners Ltd.
BUY
PAY
MANAGE
Key Takeaways:
No company wants to “slow the line”
ePayments are easier
ePayments are cheaper
ePayments are more accurate
ePayments are more secure 16. 16
AP’S TOP PRIORITIES IN 2014
Copyright © 2014 - Ardent Partners Ltd.
23%
25%
27%
31%
37%
63%
Generate discounts on spend
Better link P2P processes and systems
Improve collaboration/communication with
procurement
Improve visibility into invoice and payment
data
Improve reporting and analytics around AP
Reduce processing costs
© Ardent Partners - 2014 17. 17
THAT PERSISTENT PAPER PROBLEM
Copyright © 2014- Ardent Partners Ltd.
70%
30%
Manual
Electronic
© Ardent Partners - 2014
Invoice Formats
Payment Formats
44%
56%
Manual
Electronic
© Ardent Partners - 2014 18. 18
THE BENEFITS OF ELECTRONIC PAYMENTS
24% of all AP groups report increased accuracy and control of payment delivery
24%
45%
51%
18
45% of AP groups say that electronic payments enable more efficient and streamlined processing (e.g., review, approval, execution).
51% of enterprises rate cost savings as the top benefit seen from electronic payments 19. 19
19
Greater involvement in working capital optimization
Skill set required within AP will change
Stronger AP & Procurement partnership
AP process will be largely automated
AP TRENDS & PREDICTIONS (“LIKELY” IN NEXT 2-3 YEARS)
83%
69%
66%
57% 20. 20
BUSINESS COMMERCE INNOVATION
Copyright © 2014 - Ardent Partners Ltd.
BUY
PAY
MANAGE
Job Stats
4.4 years = Average job tenure in US (US Dept. of Labor - 2014)
91% of Millenials expected to stay at current job less than 3 years
Key Takeaways:
The “rules of employment” have changed
Work will continue to migrate to where it can best be done
Geography will not be a talent constraint
Job hopping is now a trend
Outside talent can offer great value and agility
There is a talent war
New strategies and approaches are needed 22. 22
THE EVOLVING CONTINGENT WORKFORCE
Ardent Partners predicts that the average contingent workforce will rise by 30% over the next three years
92% of enterprises cite non-traditional talent as a moderate-to-vital aspect of their overall corporate strategy
The “war for talent” now outweighs “cost savings” as the top driver of contingent workforce management
Copyright © 2014- Ardent Partners Ltd. 23. 23
Traditional
Complex
Independent Contractors
Copyright © 2014 - Ardent Partners Ltd.
Comprised of SOW- based projects and services Purpose: Unique talents and expertise
Freelancers, consultants and contractors
Purpose: High-level talent and specialized skillsets
“Temps” sourced via staffing suppliers and agencies
Purpose: Low-to- mid-level talent
ARDENT PARTNERS CWM FRAMEWORK 24. 24
THE FUTURE OF CONTINGENT WORKFORCE MANAGEMENT
Copyright © 2014 - Ardent Partners Ltd. 29. 29
THE NEW “COMMERCE” DYNAMIC
Speed and complexity continue to accelerate
Compliance, control, efficiency are table stakes
This is the “Age of Innovation and Collaboration“
Winners will be the agile organizations that can tap into expertise and find value wherever it exists in the market
Selecting the right partners and platforms has never been more important
Copyright © 2014- Ardent Partners Ltd. 30. 30
For more information please visit:
www.ardentpartners.com
THANK YOU!
Andrew Bartolini
Managing Partner &
Chief Research Officer
617.752.1620 abartolini@ardentpartners.com @andrewbartolini
Contact Info:
Ardent’s Media Sites:
Copyright© 2014 - Ardent Partners Ltd.
Christopher J. Dwyer
Research Director &
VP, Operations
617.752.1624
cdwyer@ardentpartners.com
@cjd_ardent