This document discusses insights on procurement data analytics solutions from SAP. It introduces speakers from Vodafone and SAP and outlines an agenda covering executive dashboarding using Supply Watch at Vodafone, process mining using Celonis at Vodafone, and advanced analytics using SAP Fraud Management. The document provides details on each of these topics and opportunities for data mining in procurement organizations.

1. Santiago Ramos - Vodafone, SAP / June 15, 2016
Insights on Procurement Data with Analytics
Solutions from SAP
Public

2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Speakers
Santiago Ramos
Head of SCM
programmes and Tools
Alain Dang Van Mien
Business Architect,
Customer Innovation and
Enterprise Platform
Eric Salviac
Director , Network
Value Organisation
Clément Celier
Regional VP and Head
of Network Value
Organisation

3. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Agenda
Introduction
Executive Dashboarding : Supply Watch at Vodafone
Process Mining : Celonis Process Mining at Vodafone : Making Data Speak
Data Mining : Advanced Analytics at Vodafone with SAP Fraud Management
Q&A

4. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public
Digital transformation / Machine learning redefines the enterprise
Bottom line: Machine
learning is providing the
needed algorithms,
applications, and
frameworks to bring
greater predictive
accuracy and value to
enterprises’ data, leading
to diverse company-wide
strategies succeeding
faster and more
profitably than before.

5. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public
Spend data though traditionally kept in the procurement tower, has
significant value to other parts of the business … and vice versa
Applications Database &
Technology
Analytics CloudMobile
Strategic Sourcing and
Supplier Management
• Manage global supply risk
• Spend intelligence
• Supplier discovery,
performance and analysis
• Contract Management
Direct & Indirect
Procurement
• Standardize and automate
processes
• Material Requirement
Planning and requisitioning
• Collaborative supply chain
• Catalog and content
management
• Approval flows
Invoice Management
• PO and Invoice
collaboration
• Electronic capture
• Workflow and
approvals
• Discount and payment
term optimization
Commodity Management
• Optimize procurement, sales
and risk management
• Real-time Commodity risk
across LoBs
• Efficient processing of
physical commodity
Integrations into Finance, Resource Planning, Compliance, Extended Supply Chain, Marketing

6. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public
Agenda
Introduction
Executive Dashboarding : Supply Watch at Vodafone
Process Mining : Celonis Process Mining at Vodafone : Making Data Speak
Data Mining : Advanced Analytics at Vodafone with SAP Fraud Management
Q&A

7. 7

8. 1. Why use SupplyWatch?
1. SupplyWatch lets you see critical business information on strategic
suppliers as well as Supplier Briefing Documents for executive level
meetings
2. SupplyWatch lets you collaboratively contribute information on
suppliers so that everyone can stay in the loop.
• SupplyWatch supports well-informed decision making on the go providing:
1. Easy to use mobile channel
2. Rapid distribution of critical supplier information
3. Smooth collaboration on key briefing documents
4. Secure platform for confidential content

9. 4. Application Map
Home
Company Information
CompanyRevenue
OperatingMargin
CashFlow
NumberofEmployees
Research&
Development
Account Information
As Supplier
Invoice
Spend
NetPromoter
Score
Improvement
Plans
As
Customer
Numberof
Connections
Revenue
with
Customer
Exec
.
Brief
ing
BriefingDocuments
Contact
ContactDetails
Biographies

10. Appendix 2.1 – Home Page
10
• View: adjustable to grid or list
• Filter: allows to select suppliers by
category (Technology or Terminals)
• Alert: updates highlighted on the supplier
icon :
1. New executive briefs
2. New comments on executive briefs
3. New biographies
• Drop down (across application):
1. Annotation
2. ‘Take a selfie’ – set profile picture for your
comments on supplier briefs
3. Application Settings (Reset your app)
1. Limited to a number of suppliers due to data volumes – to be defined during testing as part of performance optimisation

11. Appendix 2.2 – Company &
Account Information
• Data on recent year is visible at the header
level1
• Dynamics:
• Drill to yearly or quarterly trends
• Data feed:
• EVO SAP: Net Invoice Amount (€) for Supply
Chain Management
• MIS1: Intake Amount (€) for Terminals
• External Sources: all other data metrics
• Refresh cycles:
• Company Information: yearly (dependent on
publish date of the supplier’s Financial Results)
• Account Information: monthly
11
1. Please note that data published for the recent year is dependent on supplier
financial result publish date
2. MIS: Management Information System

12. Appendix 2.3 – Briefing &
Financial Documents
• Alert on supplier header if new document
is published
• User collaboration enabled
(who/what/when) on:
• Attendees
• Agenda
• Key topics
• Relationship…
• View and comment on supplier briefing
documents
12

13. Appendix 2.4 – Contact
Details
• Internal Contacts:
• Technology Account Owner
• Procurement Account Owner
• External Contacts
• Biographies of CEO/CTO/CFO
• Direct call/email enabled from the app
• Biography profile
• Company level contact details
• Direct Links to:
• Company website
• LinkedIn
• Twitter
13

14. 5. SupplyWatch Architecture
Admin UI
SAP BI / BO
Document Repository
Maintain logos, biographies
Edit C3 documents
C3 Documents / Briefing Packs
Data queries
Authorization
Roles
Publish for End users
Frontend
Backend
14 C2 - Vodafone Confidential - Internal Use
Only

15. SAP Dashboarding capabilities – short point of view and demo

16. Celonis Data
Mining
“Making
Data Speak”

17. Vodafone – Making data talk

18. What are the challenges with Big Data today?
C3
Inefficiencies,
bottlenecks,
loss of time
and money
Getting to the
root cause of
problems takes
far too long
Large number of SCM reports -
they tell us that something
goes wrong but not where and
why

19. The Solution: Celonis, “Making data speak for itself”
100 %
transparency
Actual process flows
are visualized in real
time
Digital
footprints
Celonis Process
Mining finds &
reconstructs digital
workflow traces
IT-based
workflow
Every workflow is
supported by IT
systems like SAP
ID
C3
About Celonis
Company:
• German Company
• Founded at 2012
• 50+ employees
• SAP Partner
• Fastest Growing
German Tech
company in 2015

20. SAP Process mining capabilities – Short Celonis Video

21. C3
In a nutshell…
Tool capabilities Benefits
Scope Roadmap
• Analyze big data/business
processes in real time and
achieve a maximum level
of transparency
• Quickly detect weaknesses
/ potential for improvement
• Purchase to Pay
• Further process areas
to come (Master Data,
Supplier On-boarding..)
• Jan ‘16 Tool go-live
• Mar ‘16 Full Team go-live
• Apr ‘16 Start
Transformation
• Drive Process Efficiency
& Effectiveness
• Ensure Process
Compliance vs internal
Policies

22. Celonis: Key Enabler for our Efficiency Program
FRAUD TOOL
+
EVO CONTROLS
DRIVING AREA:
COMPLIANCE
EFFICIENCY
REPORTING
ROBOTICS
COGNITIVE
PROCESS
CHANGES
CLOUD (to
be)
P2P
C3
AUTOMATIC
DASHBOARDS

23. Advanced analytics
with SAP FM

24. 24
Enables enterprises across industries to detect, investigate, analyze, and prevent irregularities or fraud in
ultra-high volume environments (big data).
Allows for analyzing different types of objects from SAP and non-SAP source systems that may be
subject to non-compliance and irregularities.
Delivers a platform to define/configure detection strategies based on rules and advanced predictive
methods. Event-based and periodic detection runs create alerts for further investigation.
Simple and intuitive UIs enable business users to investigate alerts and determine fraud cases. Extensive
reporting capabilities allow for the measurement and calibration of the detection efficiency as well as the
performance management of the investigation process.
1 SAP Fraud Management capabilities
prevent detect investigate monitor

25. 25
1 SAP Fraud Management capabilities
Standard Roles
• Chief Risk Officer
• Business Analyst
• Fraud Investigator
• Fraud Manager
• System Administrator
• Fraud Alert
Dispatcher

26. 26
• New vendors whose
turnover in the first year
exceeds a specific threshold
• New vendors who have a
suspiciously high turnover
growth between the first and
second years
• New vendors that have a
large percentage of their
turnover approved by a
single employee
• Bank accounts that were
used multiple times in one-
time accounts (OTA)
• One-time bank accounts
that also belong to a regular
vendor
• One-time accounts that
already exist as regular
vendors
• One-time vendor that has
too many invoices
• Postings from a regular
vendor to a one-time
account
• Purchase orders that have
had an excessive number of
changes
• Purchase orders containing
addresses that are on
sanctions or politically
exposed persons (PEP) lists
• Purchase order items that
have a vendor located in a
high-risk country
• When the invoice receipt
quantity is greater than the
goods received quantity
• When changes to PO
exceeds the defined limit
• Frequent changes in the
master data of a vendor
(bogus business, flip-flop
payee)
• Vendors whose bank data
has been changed and then
reverted to the original data
(flip-flop bank data)
• Vendors whose alternative
payee field has been
changed and then reverted
to the original state (flip-flop
payee)
• Vendors with similar bank
accounts
• Employees with same bank
data as regular vendors
Irregularities
Concerning New
Vendors
One-Time Accounts
(One-Time Vendor)
Irregularities in
Purchase Orders and
Purchase Order Items
Irregularities in Vendor
Data and Transactions
2 Detection methods and pre-defined rules for SCM processes

27. 27
3 Transaction monitoring for CCM and P2P
Scope: discover irregularities or abnormalities with the transactions done in EVO and deploy a limited set of business
rules in using standard reporting .
• This approach will minimize the risks and will allow the business to focus on the core of the solution and get
familiar with the tool.
• In parallel carry out activities related to gather reporting requirements, additional or changes in business rules for
next releases.
Objective for CCM: measure and monitor deviations to contractual obligations/commitments detected form
transactional behavior, such as:
• PO price vs invoice price
• Invoice actual date vs when the supplier was supposed to issue the invoice
Objective for P2P: implement the standard rules related to Purchase Orders and Purchase Order Items provided by
SAP FM tool.
• Purchase orders containing addresses that are on sanctions or politically exposed persons (PEP) lists
• Purchase order items that have a vendor located in a high-risk country
Next phase(s): think big and extend the solution with additional business rules and new reports/dashboards
(using BI tools included in VF pipeline)

28. 28
4 Reporting using executive dashboard
The Executive Dashboard provides the following:
• A map that displays all currently open alerts for which the location information is available
in the alert BO
• A set of key performance indicators (KPIs) of the alert processing
• A set of charts with statistics on the alert processing

29. 29
KPIs
The KPIs provide an overview of the alert
workload, and include:
 Open Alerts
All alerts with status Not Started or In Process
 Total Value
Sum of risk values of all alerts with status Not Started or In Process
 Efficiency
A KPI for closed alerts; this is the number of alerts with completion status
Confirmed from the total number of completed alerts (percentage)
 Average Processing Time
A KPI for closed alerts; the average time, in days, between the alert creation
and the alert close date
4 Reporting using executive dashboard

30. 30
Charts (1/2)
 Top 10 Countries by Risk Value
The total risk value of all closed alerts matching the filter criteria, listed per
country.
 Top 10 Countries by Number of Alerts
The number of completed alerts matching the filter criteria, listed per
country. The bars’ stacks represent the findings of the alerts: green for
Confirmed, red for False Alarm, and blue for Closed Without Investigation.
 Top 10 Countries by Risk Value with Num. of
Alerts
This chart combines the charts Top 10 Countries by Risk Value and Top
10 Countries by Number of Alerts in one chart. The top 10 are determined
by risk value.
4 Reporting using executive dashboard

31. 31
Charts (2/2)
 Top 10 Countries by Num. of Alerts with Risk
Value
Same as the chart before, but the top 10 are determined by number of
alerts.
 Cumulative Fraud Loss Comparison
Compares the cumulated Actual Loss (yellow) and cumulated Opportunity
Cost (violet) of the current period (that is, the current year) to the cumulated
Actual Loss (red) and cumulated Opportunity Cost (green) of the past period
(that is, the previous year).
 Efficiency Trend
Displays the efficiency of the fraud investigations over the past 12 months.
Efficiency represents the percentage of completed alerts with finding
Confirmed from the total number of investigated alerts. The more confirmed
alert items there are, the more efficient the investigation is; whereas, the
more false positives there are, the less efficient the investigation is.
4 Reporting using executive dashboard

32. 32
Map
 It provides an overview of the geographical
distribution of the open alerts per assigned
location.
 Like all standard maps, you can zoom in and
out and rotate it using the mouse or the
corresponding control at the side of the map.
4 Reporting using executive dashboard

33. 33
Filters
You can filter alerts based on filters like:
 Fraud division/area
 Region
 Alert group
 Alert category
4 Reporting using executive dashboard

34. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public
Data mining opportunities for procurement organisations – some
suggestions
1) Category, catalog, contract management optimization
2) Procurement intelligence and advisory (forecasting asset usage, predictive
maintenance, energy )
3) Compliance & Risk Management. Non-compliant buying behaviour
4) P2P Process mining
5) Supplier Performance
6) Service Level Management – internal and external benchmarking
7) Matching supply and demand patterns
8) P2O to Finance (working capital, fixed asset, MRO) – margin analysis
9) P2O to extended Supply chain
10) P2O to Marketing – matching campaign to purchase

35. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Public
Data mining opportunities for procurement organisations – focus
on extended supply chain
1) Demand Analytics – How is my forecast tracking with actual sales- forecast accuracy, in-store availability, lost sales
Detailed demand forecasting at the level of point of sale (store level, retailer, distribution channel roll-up) - Deviation analysis of forecast
versus actual - Forecast integration with promotional events, weather, holidays to fine tune the forecast
2) Finished Inventory Optimization – What stock should I hold and where should I position it. inventory cost, customer
service levels.
Inventory budget optimization - Safety stock level recommendations - Segment inventory for tailored and customized fulfillment strategies by
customer type.
3) Replenishment Planning Analytics – What, when, and where should I ship. in-store availability, customer service
levels
Integrated planning at the retailer, distributor, and channel level. Optimize fulfillment logistics to account for handling, storage or warehouse
constraints.
4) Network Planning and Optimization – Do I have the right network of manufacturing and warehousing facilities.
Fixed and variable costs of operations.
Number of physical plants for manufacture and warehouse. Optimized flow paths to fulfill different segments of customer demand at the lowest
total cost.
5) Transportation Analytics – Optimizing transportation routes and loads including contract compliance. freight costs,
equipment utilization, contract compliance.
Optimizing routes including backhaul - Optimizing shipment schedules - Maintaining compliance with transportation contracts

36. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Public
Questions?

37. Thank you
Contact information:
Santiago Ramos
Head of SCM programmes and Tools
santiago.ramos@vodafone.com
Alain Van Dang Mien
Business Architect, Customer Innovation and
Enterprise Platform
alain.dang.van.mien@sap.com
Eric Salviac
Director , Network Value Organisation
eric.salviac@sap.com
Clément Celier
Regional VP and Head of Network Value Organisation
Clement.celier@sap.com