Coupa INSPIRE '14 - Day 1

1. ©2014 Coupa Software, Inc.©2014 Coupa Software, Inc.
Bryce Berg
Vice President of
Corporate Administration
Molina Healthcare, Inc.
The Art & Science of a Successful
Business Case
Robert Derocher
Principal, Strategic Sourcing
& Procurement Practice
The Hackett Group
Amit Duvedi
Vice President of
Business Strategy
Coupa

2. Speakers Today
Robert Derocher
Principal, Strategic Sourcing &
Procurement Practice
The Hackett Group
Amit Duvedi
Vice President of
Business Strategy
Coupa
Bryce Berg
Vice President of Corporate
Administration
Molina Healthcare, Inc.

3. Agenda
 Science behind business case
• What’s the current state? – Maturity model
• Quantifying value from improvement
• Defining success KPIs
 Art behind business case
• What’s in it for all Executive Stakeholders
• Real examples of “pain”
• Risk mitigation (what you control)
• Risk mitigation (what Partners control)
 Q & A – Let’s Make It Interactive!!

4. Where Do You Stack Up?
The Hackett Perspective – Establishing the Baseline
Benchmarking P2P and establishing your company’s baseline
performance levels vs. peer and world-class
 Process Costs, for example:
• PO Processing Costs
• Cost per PO
• Cost per Invoice
 Effectiveness Metrics, for example:
• Spend via PO’s
• % of spend on e-catalogs
• % of invoices received electronically
• PO cycle time
Do you know where you stand?

5. 4 Stage Capabilities Maturity Model
(Summary View)
- Future State Aspiration
- Current State Assessment

6. Quantified Business Benefits
(Top Down)

7. Defining Success KPIs
Molina Healthcare’s Experience
Coupa Impact
• 8 AP Processors -> 5 AP Processors
• Scalability - 101% increase in number of Invoices processed and
60% increase in Invoice $$ amount while reducing HC
• 18% automated and 82% manual invoices -> 77% automated
and 23% manual invoices
• Reduction in Overtime hours and cost

8. Agenda
 Science behind business case
• What’s the current state? – Maturity model
• Quantifying value from improvement
• Defining success KPIs
 Art behind business case
• What’s in it for all Executive Stakeholders
• Real examples of “pain”
• Risk mitigation (what you control)
• Risk mitigation (what Partners control)
 Q & A – Let’s Make It Interactive!!

9. What’s In It for Diverse Executive
Stakeholders?
 Accurate accruals for financial & management reporting
 Reduce budget over-spend
 Identify cost avoidance opportunities
 Drive spend savings (new contracts, re-negotiate existing
contracts, ensure contract terms are used while buying)
 Get easy, real time, granular reporting / analytics
Spend Visibility
and Control
 30-40% improvement in Invoice and Purchase Order processing cost
and time = avoid hiring FTEs to support current growth
 Shift from transactional activities  more strategic focus
 Exception management based processes to build scale
 Optimize trade-off - early payment discounts & DPO / cash
Procurement &
Invoicing
Automation
Lower Risk
 Reduced regulatory compliance risk – right items from right
vendors, process documentation, audit trail
 Predictable & low TCO; Opex instead of Capex
 Shared risk model - “Skin in the game” for Coupa
Coupa’s Value Prop to Finance

10. Real Examples of “Pain”
 Purchase Requisition Approval time
 No ability to scale when business was growing quickly
 Needed to reduce administrative costs
 No ability to mine data – at summary level only

11. Risk Mitigation
What You Control
Your Company
• Definition of Problem
• Diagnosis of Solution
• Executive sponsorship and agreement
• Choosing the best solution fit
• Strong project management
• Clear communication of goals and plan
• Change management
• Strong focus on success metrics
• Measurement and communication of ROI

12. Risk Mitigation
What You Need from Your Partners
Solution Partner
• Easy user and supplier adoption – everything starts there!!
• Proactive engagement post go-live
• Ability to benchmark and track success KPIs
• Rate of innovation – Organic growth, Cloud
• Future proofing – adapt to change quickly
Service Partner
• Establishing an Implementation Roadmap that clearly defines the journey
and supports your long-term success
• Embedding Best Practices in your process design
• Providing Change Management guidance and helping you understand the
“lessons learned”
• Defining a Business Case and P2P Balanced Scorecard for on-going
measurement and tracking
• Designing and implementing support processes that are key to success
(e.g., supplier adoption, catalog maintenance, system administration, etc.)

13. What Your Partners Control –
Coupa Partnership post go-live
Overall spend capture
% of POs sent electronically
Req to Order cycle time (hours)
Invoice cycle time (hours)
Coupa will work with you to define and track success

14. ©2014 Coupa Software, Inc.©2014 Coupa Software, Inc.
Q
A&

15. ©2014 Coupa Software, Inc.©2014 Coupa Software, Inc.
When: TONIGHT!
Where: Mezzanine SF
444 Jessie St.
mezzaninesf.com
Time: 6 - 11pm
Dress: Business casual or
semi-formal
Sponsored by:
INSPIRE Party!