Simplifying It Product Overview

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TITLE

Simple Buying Experience
(SBx)
Product Overview

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Copyright 2008-2010 by Simplifying-IT, LLC

SBx – Simple Buying Experience for SAP e-Procurement

• The SBx software platform
provides a new UI that was SBx Home Page
specifically designed to greatly
simplify and enhance the full
Procure-to-Pay (P2P) end-user
experience to increase adoption
and compliance of SAP-based e-
Procurement.

• SBx runs directly on your existing
SAP system and sits on top of
SRM, MDM, MM, PS, CS, and PM;
SBx connects real-time using an
Enterprise Service Oriented
Architecture (eSOA).
2

SBx Closes the ROI Gap Caused by Low Adoption/Compliance
Aberdeen Research has found that even mature e-Procurement programs (average 5+
years) typically have failed to achieve targeted goals, largely due to user adoption:
“User adoption continues to be a challenging aspect of an e-procurement initiative and
an intuitive, easy to use procurement system is required to drive user adoption.”

Performance Area Average Best-in- ROI GAP
Class/Target*
Spend Under Management 60% 88% 28% More On–Contract

User Adoption 63% 90%* 27% More User Adoption

Requisition-to-order cycles 3.4 days < 1 day 70% Faster Cycle Time

Percentage of maverick 6% Less Maverick Spend - Avg.
23% 17%
spend Lost Savings 12%

Off-Catalog Requisitions 34% 10%* 24% More “Touchless” POs

Requisition-to-order costs $31 $22 29% Savings per PO

3
Source: Aberdeen E-Procurement Benchmark Report 2008, Aberdeen e-Procurement Trials and Triumphs 2007

SBx – Benefits Summary

1. Enhanced User Experience and Adoption
2. Advanced Functionality Not Available in
Native SAP
3. Improved Compliance and Control
4. Leverages SAP Investment
5. Low Impact Change, High Impact ROI

4

SBx Benefit #1 – Enhanced User Experience and Adoption

Common Usability Issues: SBX Usability Enhancements:
 Frustrated users Shop  Cross-Catalog Shopping -
 High documentation costs Punchout and Stored
 “Consumer-Like” Rich Internet
 High training costs Application Feel w/Images,
 Increased time to Checkout Detailed Specs
complete a request  Side-by-Side “Anchored”
 Burden placed on Product Compare
purchasing organizations  “Drag and Drop” Items to Cart
Approve  Auto-Classify Product Category
 Increased errors due to from Description
complex screens,  Easily Add Notes, Attachments,
navigation, and confusing Approvers to Requisition
terminology Status  Graphical Approval Process
 Additional support costs Preview
 Approval and Order Process
 Increase in “maverick” Visibility
spending Receive  Feedback Required if Order is
Rejected
5

SBx Benefit #1 – Enhanced User Experience and Adoption
A “Use Case” for Usability – SBx vs. SRM

Scenario: Requisitioner Shops Product Catalogs, Selects
Product, Determines Delivery is Within Lead Time, Assigns
Vendor, Checks-Out, and Places Order
SRM 5.0 – 15 Steps
Click "Internal Click "Add to
Click "Shop Enter/ Search Click "Start" Click "Product Click "Line Click "Source
Goods/ Enter "Date“ Shopping Scroll Down
(Wizard)“ "Product ID" Button ID“ Item“ of Supply”
Services" Cart"

Click "Assign Click
Select Click "Order"
Scroll Down Vendor" "Continue"
"Supplier“ Button
Button Button

SBx – 5 Steps
• SBx eliminates 2/3 of the process steps
• SBx increases order accuracy,
compliance, and completeness – in 50%
Click "Create Choose
Enter "Product Click "Proceed Click "Submit
Shopping “Request
ID“ to Checkout” Order“
Cart" Type”
less processing time on average
6

SBx Benefit #2 – Advanced Functionality Not Available in Native SAP

Usability Features

Drag/drop items to the shopping cart

Enhanced kitting/bundling

Complex Question/Answer functionality

Robust comparing including "anchoring”

Ability to approve/reject many requests at
once

Rejected items require a comment

Delivery date automatically proposed for
non-catalog items based on lead time

7

SBx Benefit #2 – Advanced Functionality Not Available in Native SAP

Compliance Features

Message issued if a user does not search
prior to executing a non-catalog form

Automatic supplier agreement(s) proposed

Automatic search and proposal of catalog
item(s) during a non-catalog request

Automatic. real-time “price-check” on saved
“Shopping List” templates

Automated product category proposed
based on non-catalog description

Ability to add a new catalog item directly
from a non-catalog request

Automatic proposal of less expensive
substitutes

Ratings, Reviews, and company Policies
assigned to catalog items 8

SBx Benefit #3 – Improved Compliance and Control

SBx P2P Process Compliance Checkpoints:
Select Approved Assign and
Adhere to Properly Classify
Shop On-Catalog Vendor/Product Verify
Corporate Product
or Off-Catalog @ Contracted Accounting
Buying Policy Requisition
Price Distribution

 User alerted to  Preferred  “Auto-  Accounting
 Fields “auto-
search product supplier Classification” of information
populated” to
catalogs before agreement/items off-catalog displayed in
reduce errors
executing non- automatically request based on cart/req for
 Context-
catalog form proposed sensitive, point- description approval/review
 X-Catalog  Less expensive of-need alerts,
search (all data substitutes (e.g., CapEx
sources) presented automatically requests >
in single UI proposed $100K)
Ratings and  Real-time “Price Company
Reviews available Check” on Policies and
to help in making shopping list re- documentation
the best buying orders assigned to
decision categories

More “Touchless” POs More “On-Contract Faster Cycle Time – More accurate spend Faster Cycle Time –
– Fewer Off-Catalog Spend” – Less Maverick Less Rework analysis – Better Less Rework

9
Reqs Buying decisions

SBx Benefit #4 – Leverages SAP Investment
• SBx runs directly on your existing SAP server and sits
on top of SRM, MDM, MM, PS, CS, and PM
• SBx connects real-time to SAP databases using an Enterprise
Service Oriented Architecture (eSOA)
• SAP User ID/Password is used for SBx login
• SBx is an unique P2P end-user UI that leverages your existing SAP
investment and requires none of the following:
 New hardware
 Additional database(s)
 System modifications
 Synching of master data
 Synching of transaction data
 SAP’s Enterprise Portal (EP)
 Additional user authentication

10

SBx Benefit #5 – Low Impact Change, High Impact ROI
Low Impact Change High Impact ROI
 Up and Running in 3 Weeks
Improvement Assumption
 User Training Available But Not
Improved Adoption/Compliance Greater Process Efficiency
Required
• Increase Spend Under • Reduce Off-Contract
 Annual Enterprise License Includes:
Management 20% and Reduce Requisitions from 34%
• Unlimited Users Maverick Spend by 6% (from of all orders to 15%
• Implementation 23% of spend to 17%) • Average Savings on
• Upgrades & Maintenance • Average Savings on Re- Incremental, On-
• Level 2 & 3 Support Captured Maverick Spend Contract/On-Catalog
• Training Documentation 12% requisitions @ $9 Per
Order

Illustration*
$3.6M Savings on $.2M Process Cost
Re-Captured Maverick Savings on 19K
Spend fewer off-catalog orders

*Illustration Assumptions: $500 Million in P2P Addressable Indirect Spend
100K Annual PO Volume

The History of SBx – Gen I SBx Customer Case Study – Gen II
“Consumerizing” the P2P experience $4B Global Pharmaceutical Company

The SBx team has been providing SAP-based Background: More than 3 years into an SAP
P2P solutions utilizing MM and SRM for 13 SRM roll-out, the company was still struggling
years and has worked with countless with low user adoption and was looking to
customers, all of which had a similar message… increase both usability and compliance
“SAP is very robust, but it is too hard to use.” Benchmarks:

Beginning in 2006, the team worked with a  User Adoption < 50%
diverse group of Fortune 500 customers from  Spend Under Management <50%
Automotive, CPG, Oil and Gas, and other  Non-Compliant Orders – High
industries, to design and develop an intuitive Incidence of re-work on 22K annual
and easy to use P2P UI for their customers cart volume due to missing
running SAP. Built on top of SAP SRM, the UI attachments/incorrect accounting
tool proved a boon to user adoption and
User Feedback: Pilot users indicate that the
liquidity in the marketplace and was
“SBx tool will make it easier to do my job and
showcased as a Best Practice at SAP’s annual
saves me time.”
Sapphire event.
Roll-out Goals: Ramp 100% of targeted users
by YE 2010; drive compliant spend above 75%
12

SBx Demo – Home Page

Demo can be viewed using the following url: 13
http://www.simplifying-it.net/demos.html

SBx Demo – Shopping Ratings, Reviews,
and Policies
Search for
items
Browse for
items

Drag/drop items
into your cart
Tool Tip


SBx Demo – Cross-catalog Search

Internally and supplier-
hosted catalogs
presented in a single UI


SBx Demo – Non-catalog Forms

Line item options
Combining internal easily accessible
goods and describe
requirements on a
single screen


SBx Demo – Automatic Catalog Search from Non-catalog Form

Auto propose
catalog items

Catalog Form


SBx Demo – Item Compare w/Anchoring

Differences
shown in red
Anchored Item


SBx Demo – Order Status Tracking


SBx Demo – Goods Receipt

Receipt Entry
Form


SBx Demo – Approve

Can Approve or Reject.
Comment required for
Rejected items.

Ability to Submit many
orders at once


Mark Kenney
214.552.4511
mkenney@simplifying-it.net
www.simplifying-it.net

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