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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
specifically designed to greatly
simplify and enhance the full
Procure-to-Pay (P2P) end-user
experience to increase adoption
and compliance of SAP-based eProcurement.
•
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).
SBx Home Page
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-inClass/Target*
ROI GAP
Spend Under Management
60%
88%
28% More On–Contract
User Adoption
63%
90%*
27% More User Adoption
3.4 days
< 1 day
70% Faster Cycle Time
Percentage of maverick
spend
23%
17%
6% Less Maverick Spend - Avg.
Lost Savings 12%
Off-Catalog Requisitions
34%
10%*
24% More “Touchless” POs
Requisition-to-order costs
$31
$22
29% Savings per PO
Requisition-to-order cycles
Source: Aberdeen E-Procurement Benchmark Report 2008, Aberdeen e-Procurement Trials and Triumphs 2007
3
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:








Frustrated users
High documentation costs
High training costs
Increased time to
complete a request
Burden placed on
purchasing organizations
Increased errors due to
complex screens,
navigation, and confusing
terminology
Additional support costs
Increase in “maverick”
spending
SBX Usability Enhancements:
Shop


Checkout

Approve



Status


Receive

Cross-Catalog Shopping Punchout and Stored
“Consumer-Like” Rich Internet
Application Feel w/Images,
Detailed Specs
Side-by-Side “Anchored”
Product Compare
“Drag and Drop” Items to Cart
Auto-Classify Product Category
from Description
Easily Add Notes, Attachments,
Approvers to Requisition
Graphical Approval Process
Preview
Approval and Order Process
Visibility
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 "Shop
(Wizard)“
Click "Internal
Goods/
Services"
Enter/ Search
"Product ID"
Click "Start"
Button
Click "Product
ID“
Scroll Down
Select
"Supplier“
Click "Assign
Vendor"
Button
Click
"Continue"
Button
Click "Order"
Button
SBx – 5 Steps
Click "Create
Shopping
Cart"
Choose
“Request
Type”
Enter "Product
ID“
Click "Proceed
to Checkout”
Click "Submit
Order“
Enter "Date“
Click "Add to
Shopping
Cart"
Click "Line
Item“
Scroll Down
Click "Source
of Supply”
• SBx eliminates 2/3 of the process steps
• SBx increases order accuracy,
compliance, and completeness – in 50%
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:
Shop On-Catalog
or Off-Catalog
 User alerted to
search product
catalogs before
executing noncatalog form
 X-Catalog
search (all data
sources) presented
in single UI
Ratings and
Reviews available
to help in making
the best buying
decision
More “Touchless” POs
– Fewer Off-Catalog
Reqs
Select Approved
Vendor/Product
@ Contracted
Price
 Preferred
supplier
agreement/items
automatically
proposed
 Less expensive
substitutes
automatically
proposed
 Real-time “Price
Check” on
shopping list reorders
More “On-Contract
Spend” – Less Maverick
Buying
Adhere to
Corporate
Buying Policy
 Fields “autopopulated” to
reduce errors
 Contextsensitive, pointof-need alerts,
(e.g., CapEx
requests >
$100K)
Company
Policies and
documentation
assigned to
categories
Faster Cycle Time –
Less Rework
Properly Classify
Product
Requisition
 “AutoClassification” of
off-catalog
request based on
description
More accurate spend
analysis – Better
decisions
Assign and
Verify
Accounting
Distribution
 Accounting
information
displayed in
cart/req for
approval/review
Faster Cycle Time –
Less Rework
9
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



Up and Running in 3 Weeks
User Training Available But Not
Required
Annual Enterprise License Includes:
•
Unlimited Users
•
Implementation
•
Upgrades & Maintenance
•
Level 2 & 3 Support
•
Training Documentation
High Impact ROI
Improvement Assumption
Improved Adoption/Compliance
Greater Process Efficiency
•
Increase Spend Under
•
Reduce Off-Contract
Management 20% and Reduce
Requisitions from 34%
Maverick Spend by 6% (from
of all orders to 15%
23% of spend to 17%)
•
Average Savings on
•
Average Savings on ReIncremental, OnCaptured Maverick Spend
Contract/On-Catalog
12%
requisitions @ $9 Per
Order
Illustration*
$3.6M Savings on
Re-Captured Maverick
Spend
$.2M Process Cost
Savings on 19K
fewer off-catalog orders
*Illustration Assumptions: $500 Million in P2P Addressable Indirect Spend
100K Annual PO Volume
The History of SBx – Gen I
“Consumerizing” the P2P experience
The SBx team has been providing SAP-based
P2P solutions utilizing MM and SRM for 13
years and has worked with countless
customers, all of which had a similar message…
“SAP is very robust, but it is too hard to use.”
Beginning in 2006, the team worked with a
diverse group of Fortune 500 customers from
Automotive, CPG, Oil and Gas, and other
industries, to design and develop an intuitive
and easy to use P2P UI for their customers
running SAP. Built on top of SAP SRM, the UI
tool proved a boon to user adoption and
liquidity in the marketplace and was
showcased as a Best Practice at SAP’s annual
Sapphire event.
SBx Customer Case Study – Gen II
$4B Global Pharmaceutical Company
Background: More than 3 years into an SAP
SRM roll-out, the company was still struggling
with low user adoption and was looking to
increase both usability and compliance
Benchmarks:



User Adoption < 50%
Spend Under Management <50%
Non-Compliant Orders – High
Incidence of re-work on 22K annual
cart volume due to missing
attachments/incorrect accounting
User Feedback: Pilot users indicate that the
“SBx tool will make it easier to do my job and
saves me time.”
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:
http://www.simplifying-it.net/demos.html
13
SBx Demo – Shopping
Ratings, Reviews,
and Policies
Search for
items
Browse for
items
Tool Tip
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
Drag/drop items
into your cart
14
SBx Demo – Cross-catalog Search
Internally and supplierhosted catalogs
presented in a single UI
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
15
SBx Demo – Non-catalog Forms
Combining internal
goods and describe
requirements on a
single screen
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
Line item options
easily accessible
16
SBx Demo – Automatic Catalog Search from Non-catalog Form
Auto propose
catalog items
Catalog Form
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
17
SBx Demo – Item Compare w/Anchoring
Anchored Item
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
Differences
shown in red
18
SBx Demo – Order Status Tracking
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
19
SBx Demo – Goods Receipt
Receipt Entry
Form
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
20
SBx Demo – Approve
Can Approve or Reject.
Comment required for
Rejected items.
Ability to Submit many
orders at once
Demo can be viewed using the following url:
http://www.simplifying-it.net/demos.html
21
Mark Kenney
214.552.4511
mkenney@simplifying-it.net
www.simplifying-it.net