Explore the financial and organizational benefits of extending your eprocurement investments to IT purchasing

1. Explore the financial and organizational benefits of extending your
eProcurement investment to IT purchasing.
The IBM eProcurement Value Assessment Methodology
IBM Global Sales & Distribution

2. According to a Worldwide Research conducted
by the School of Management of the Politecnico
di Milano University (MIP) on 70 Large
Enterprise Clients, 71% of the Procurement
organizations interviewed use eProcurement
to buy indirect materials, while only 40% of
them use eProcurement to buy IT Products or
Services.
Organizations not buying IT products and
services via eProcurement reported that they
see eProcurement to be beneficial mostly
for low purchase value / high frequency / low
descriptive complexity transactions, such as
Office Supplies, Maintenance, Repair and
Operational materials.
The IT eProcurement Value Assessment
Methodology developed by MIP proves that
there are relevant benefits in buying IT via
eProcurement, both in terms of savings
(financial) and spend control (organizational).
IT eProcurement Benefits At A Glance
• Increase efficiency in IT procurement
procedures and process.
• Increase transparency in procurement
processes.
• Reduce maverick buying toward lower
total cost of ownership
• Reduce the IT supply base to a smaller
set of strategic suppliers.
Use of eProcurement
Use of eProcurement for IT

3. When an agreement for a fully customized
assessment is reached, an interview is
scheduled with the customer CPO, IT or
Category Manager to gather the available
IT purchasing information required. Since all
required data may not be available, the eProES
system is designed to compensate for gaps
by making intelligent estimations based on the
customer’s industry, company size and other
critical parameters.
After the information is collected, it is entered
into the eProES system that processes the
information using advanced proprietary Expert
System modeling formulas to generate the final
output.
The IT eProcurement Value Assessment
Methodology has been developed to enable
customers to evaluate the benefits deriving
from eProcurement adoption for IT purchases.
The methodology follows 4 main steps and it is
supported by the eProcurement Expert System
(eProES) tool for collecting, analyzing customer
information and generating customized
customer reports.
The process begins with the IBM
Representative collecting basic customer
information to create a preliminary value
assessment. The initial report is based on
general industry data and is intended to provide
the customer with a preview of the reporting
format and the key output elements.
The eProES Value Assessment System is
based on the following key customer priority
parameters:
• Efficiency
• Control
• Transparency
• Decentralization
• Supply Base
• Maverick Buying Reduction
eProES 4 Phase Approach

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01-09
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The final customized value assessment
illustrates the customer’s current IT
eProcurement maturity level along with
both financial savings and organizational
improvements that can potentially be
realized by leveraging eProcurement for IT
purchasing.
The customized value assessment reports
are delivered to the customer in an open
presentation format that can dynamically
be updated as more customer information
becomes available and can be re-used based
on the customer’s needs.
Take the next step to fully realizing the
benefits of your eProcurement investment
for IT purchases. To learn more about the
IBM eProcurement Value Assessment
Methodology please contact your IBM
representative or visit:
http://www.ibm.com/easyaccess/b2b
Sample Value Assessment Financial Output
Sample Value Assessment Organizational Output