Most Organizations are NOT capturing full value of Spend Analysis Immediately focusing on Spend Analysis process even if it is not optimized will deliver results Emerging Cloud Based Spend Analysis solutions are secure, are easy to start up and have a near immediate ROI and a 12 month ROI of 10X or more

1. CPO CHALLENGES UPDATE
SPEND ANALYSIS DRIVES SUCCESS
BILL KOHNEN MAY 2015

2. SPEND ANALYSIS IS THE TOP TOOL
FOR A CPO
CPO CHALLEGES
• MORE
• SPEED
• GROWTH
SAVNGS
• 2% NOW
• 10% MONTHS
• 30% POTENTIAL
BENFITS
• TRANSPARENCY
• BASELINE
• ORGNAZINATION
TECHNOLOGY
• HELPS
• CLOUD SaaS
• ROI of 10X
BILL KOHNEN MAY 2015
IN PRACTICE FEW ORGANZIATIONS HAVE CAPABILITY TO
CONDUCT A COMPREHENSIVE SPEND ANALYSIS EVEN A SINGLE
EVENT.

3. EXAMPLE
Immediate Savings
•$10,000,000
Achievable Savings In 12 Months
•$50,000,000
Longer Term Savings Opportunity
BILL KOHNEN MAY 2015
A Company with a Billion Dollars of
Revenue would typically spend $500M
• $
150,000,000

4. CPO CHALLENGES ARE THE SAME AS THOSE
SHARED ACROSS ORGANIZATION
COST
LEGACY
SYSTEMS
GLOBAL TRANSPARENCY
ORGANIZATION CSR MOBILE RISK
BILL KOHNEN MAY 2015
More than anything the CPO needs real visibility to global
spend to:
set a baseline, manage operational needs and determine a

5. SPEND ANALYSIS WILL SHOW
Opportunities Current State Baseline
Immediate
Savings
BILL KOHNEN MAY 2015
WHICH LEADS TO ACTIONABLE STRATEGIC AND TACTICAL
RESULTS

6. WHY AFTER OVER 100 YEARS OF
CORPORATE PURCHASING IS SPEND
ANALYSIS NOT WIDESPREAD
• HARD TO GET
• DISPERSED
DATA
• PEOPLE
• TOOLS
RESOURCES
• SHARING DATA
• REVIEWING
COLLABORATION
PROJECT
BILL KOHNEN MAY 2015
• NON REPEATIBLE EVENT
• STATIC RESULTS

7. TECHNOLOGY TO THE RESCUE
NOT SO FAR
TECHNOLOGY CONSTRAINT
MAINFRAME Access to Data
No User Interface
CLIENT SERVER/NETWORK Data Further Dispersed
ERP Access to Data
Poor Analytics
MS OFFICE SUITE Start to Analyze Data
Driven by Strategic Sourcing
CLOUD SOLUTIONS Security
Process and Capability
BILL KOHNEN MAY 2015
EVEN WITH IMPERFECT DATA CAN START PROCESS AND GET IMMEDIATE VALUE FROM
SPREADSHEETS

8. SPEND ANALYTIC CLOUD
SOLUTION
What Does this Mean
•You will provide raw spend data in any format to the solution which will transform the data to
meaningful views.
•Solution provider delivers service via internet connection so no hardware needed
•Implementation is measured in weeks
•Complete ROI should be achievable in 6 months or less
•Repeatable Process
BILL KOHNEN MAY 2015

9. QUESTIONS TO ASK
BILL KOHNEN MAY 2015
Data Acquisition
• Formats
• Data Prep
Data Processing
• Automated
• Proprietary
User Experience
• References
• Configurable
Product
• Standalone
• Information
Security
Implementation
• Time
• Professional
Services
• ULTIMATELY USER EXPERIENCE WHICH IS VIEWING MEANINGFUL
OUTPUT IS MOST IMPORTANT
• TO BEST DETERMINE CAPABILITY HAVE PROVIDERS RUN A DEMO USING
A PORTION OF YOUR DATA

10. BUSINESS TERMS FROM
PROVIDERS
•Higher Value Solution as part of total spend process
•No Cost Upfront Options with Value Sharing
Cost
•Subscription
•If Event Based Typically Would Be Via Consultant
Term
•Legitimate Initial Set Up Costs
•Most Do Not Provided Spend Consulting
•Solutions With Embedded Industry Intelligence
Services
BILL KOHNEN MAY 2015

11. CONCLUSION
SPEND ANALYSIS IS THE MOST POWERFULL TOOL AVAILIBLE FOR PURCHASING
• Most Organizations are NOT capturing full value of Spend Analysis
• Immediately focusing on Spend Analysis process even if it is not optimized will deliver results
• Emerging Cloud Based Spend Analysis solutions are secure, are easy to start up and have a
near immediate ROI and a 12 month ROI of 10X or more
Next Steps
•Make Evaluating options for Spend Analysis and immediate
priority
•Before the end of 2015 engage with a Cloud Spend Analysis
provider for a trial
BILL KOHNEN MAY 2015