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Emergence of the Digital VMO
COPENHAGEN, 2018
Tools & automation to drive value and compliance across services supply chain
(extract of SIG.org presentation from 2017, contact us for full edition & demo)

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Today’s presenters
 Nipun is the Founder & CEO of
Enlighta;Enlighta’s solutions have been deployed
by global 2000 enterprises to simplify and
streamline performance management, risk
management, contracts compliance, relationship
and financials management across strategic
supplier relationships.
 Over the last 25 years (including 10+ years at
Enlighta), Nipun has been involved with
architecture, implementation and deployment of
enterprise grade web-solutions and middleware
for Global 2000 clients.
 Nipun’s interests and focus areas are enterprise-
class solutions and platforms for complex,
challenging and “big” problem areas that remain
unaddressed in enterprises.
 Bo is co-owner and Sourcing Advisor at Implement
Consulting Group, a leading European advisory firm
partnering with Enlighta on making vendor manage-
ment more effective, efficient and smooth while
improving overall governance of demand and supply.
 With +20 years of experiences from global service
consuming enterprises, large service providers and
as Director at Deloitte and KPMG, Bo has been
involved in projects across the full sourcing lifecycle.
 Bo’s ambition and interest is to assist companies and
organizations in responding to changes - huge
amounts of resources are invested in such activities
every year. Bo assists in making sure the resources
are well spent, on e.g. innovation, transformation and
restructuring, and that the changes have the desired
impact – e.g. improved satisfaction and performance
with less efforts and costs.
Nipun Sehgal Bo Lund Rosenlund

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Introducing Enlighta
10weeks to go-live for
typical engagements
ROI within 9 months
for engagements
More than 10000
suppliers contracts
governed
Over 99.9%
uptime for production
applications
# 1Solution
Recommended and used
by industry advisors
HfS Winner’s Circle
“Enlighta provides the broadest and deepest set of functionality that HfS has observed
to-date. It is a very flexible and scalable solution that was highly rated by its clients.”
HfS Research – leading analyst authority
Enlighta Govern 8 – brief introduction:
Enlighta Govern 8 is the proven best-in-
class solution for Supplier Governance &
Relationship Management, available both
as SaaS & On-Premise
Functionality in Enlighta Govern 8
automates core VMO tasks, such as:
 Relationship Management
 Performance Management
 Financial Management
 Risk & Compliance
 Contract Administration
Key Benefit of Enlighta Govern is reduced
value leakage due to:
 One Truth of data, shared with all
stakeholders (internal and external)
 Improved outcomes due to effective
performance mgmt.
 Improved alignment with internal clients
 Increase ‘bandwidth’ of the VMO – can
be used for innovative value creation
 Improved Data Quality and less ‘issues’
 Improved Risk Management and
Contractual Compliance

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Agenda
“Generation Y” and “Digital trends” impacts to VMO
Impact to traditional model of governance
Capabilities needed for beyond governance as usual
Emergence of Digital VMO
Key benefits of Digital VMO
Architecture & Technology Components of Digital VMO
Interested in a tool demonstration? Please reach out!
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“Generation Y” and “Digital trends” impacts to VMO
New vendors and new
ecosystems are popping
up for new “categories”,
e.g. Internet of Things,
Robotics, Cognitive
Analytics and other
“digital” services.
Current manual
approaches for VMO
does not scale well – in
some scenarios the
efforts required will
increase exponentially
with the number of
vendors, without
meeting the business
needs for speed, agility
and “control”.The App Store as metaphor for
future Service Integration:
No one knows exactly what the future
Governance model will look like – but
most likely, it will build upon the
principles laid down in SIAM/”Service
Integration And Management”.
The eco-system of integrating Services from a wide source of providers both within
and outside the organisation needs facilitation, if not control.
Looking ahead, due to the habits of ”Generation Y” (and their children) the number of ”buyers” will
increase dramatically. Each of these new buyers are born in the ”digital era”, and feels confident in
finding a way to get the digital service they need, either providing it themselves or via a service
provider they find fit for their purpose.
This will erode the traditional boundaries between ”Demand” and ”Supply”, which increasingly will
make the Business users providers of Services that are consumed by others, both within and
outside their own organisation.
A Farewell to ”Being in Control”?
Will the governance frameworks used to ”Fix the
Basics” and mature e.g. the IT department need
to be abonded with the Atomic volume of
Demand/Supply transactions hitting the
Enterprise like a tide wave? Or should we
automate the basics, allowing our limited VMO
resources to focus elsewhere?
Going from few to many
hundreds or thousands of
”Demand / Supply agents”
requires a different
mindset – and a new
toolset, to allow VMO to
focus on value creation
rather than operations.
Growth in # of
buyers
Growth in # of Service Providers
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3
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Impact to traditional model of governance
In the Digital era, centralism is replaced with a common governance model and agreed set of roles, also for the VMO
CPO
CRO
Business users Sponsors
Support units (Legal, HR, Compliance, …)
Contractors Service Providers Vendors
 Applies technology to what the business does today
 Maintains status quo efficiency
 Focus on efficiency, economy of scale, continuity
 Well defined governance and processes
THE OLD MODEL
Centralized hierarchical
automationof business
TRANSFORM
CPO
Relationship
Managers
VMO
THE NEW MODEL
Decentralized network
enablement of digital
business transformation
 Explores how technology re-imagines the business
 Good at managing constant changes
 Focus on responding to opportunities at scale
 Dynamic self-organizing teams & processes
Sourcing
Risk &
Compliance
Sourcing
Governance
(VMO)
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Tier 1
(Strategic)
Tier 2
(Important)
Tier 3
(Emerging/
Tactical)
Tier 4
(Low
Importanc
e)
Contracts Contract Mgmt & Renewal Alerts Yes Yes No No
Contract Change Approvals Yes As needed No No
Performance Supplier Scorecards Yes Yes No No
Service Level Management Yes As needed No No
Financials Consumption Management Yes As needed No No
Invoice Validation & Approvals Yes Yes As needed No
Benchmarking Yes No No No
Compliance Deliverables & Obligations Yes Yes Yes Yes
Risk Assessment and Mitigation Yes As needed No No
Audits and Findings Disposition Yes As needed No No
Risk Periodic Supplier Classification by Risk Tier Yes Yes Yes Yes
Active Risk Monitoring, Mitigation and
Reporting
Yes Yes As needed No
Typical Core VMO activities by Contract Risk Tier
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Core VMO functions
Core VMO
Functions
• Contracts
• Performance
• Financials
• Compliance
• Risk
The core functional capabilities of the VMO
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Beyond Governance as Usual –
Supplier Relationships
Supplier
Relationships
• Relationship Health
• Pipeline
• Issues Resolution
Core VMO
Functions
• Contracts
• Performance
• Financials
• Compliance
• Risk
The key functional capabilities of the Digital VMO
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Beyond Governance as Usual –
Value generation & on-demand services assembly
Value generation
& on-demand
services
assembly
• Scouting
• Preferred Suppliers
• Services Integration
• Innovation
Supplier
Relationships
• Relationship Health
• Pipeline
• Issues Resolution
Core VMO
Functions
• Contracts
• Performance
• Financials
• Compliance
• Risk
The key functional capabilities of the Digital VMO
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Beyond Governance as Usual – the Digital VMO
Business
Stakeholder
Relationships
• Request for Services
• Standard Processes
& Templates
• Demand
Management
Value
generation & on-
demand
services
assembly
• Scouting
• Preferred Suppliers
• Services Integration
• Innovation
Supplier
Relationships
• Relationship Health
• Pipeline
• Issues Resolution
Core VMO
Functions
• Contracts
• Performance
• Financials
• Compliance
• Risk
The four key functional capabilities of the Digital VMO
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The Digital VMO – Architecture ComponentsContracts
Contract Data
Change
Approvals
Governance
Library
SOWs
Assets in Scope
Interpretations
Performance
Service Levels
SLA compute
Supplier Input
Obligations
Supplier
Scorecard
Financials
Consumption
Invoice
Validation
Dispute Mgmt.
Service Credits
Spend Tracking
Spend Pools
Relationship
Issues
Meetings
Action Items
Communication
Ideation
Health
Assessment
Resources
Requisition
Skills and
Experience
Work Auth
Allocations
Billing Rates
Risk
Risk Assessment
Risk Register
Remediation
Risk Scorecards
Audits
Role-based Workflow, Secure Access, Configurable Processes, Engagement Data Analytics
Suppliers
Profile Contacts Capabilities Ratings Certificates Sites Hierarchy Sub-Contractors
Intake Requests Supplier Onboarding Ideation Portal
VMO
Business
Stakeholders
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Suppliers
Integrated with enterprise systems
Procurement Service Mgmt. Financial Systems Time-Tracking GRC Tools

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Key Benefits (ROI) of the Digital VMO
 The figure below illustrates the typical levers for your business to realize the full potential of its service provider relationships.
 The Digital VMO will automate operations and introduce enhanced processes to reduce leakage, enabling the VM organization
to focus on Value Creation and governance of multiple suppliers.
Reduce costs
by limiting, e.g.:
 Invoice errors,
 Credit errors,
 Number of issues.
Avoid costs
by controlling, e.g.:
 Change orders,
 Need for investments,
 Timing of investments
 Capacity needs.
Create value
by improving, e.g.:
 Time to market,
 Adoption rates,
 Foster innovation
 Empowering governance.
Potential
value
Value
typically
realized
Value
leakage
Realized
value
Total
potential
value
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Bo Lund Rosenlund
M: +45 2363 5309
E: bolr@implement.dk
For tool-demo or inqueries, please
reach out: