Spending Analysis

Ontology-driven Total Spending Visibility

Gubbio, 18 ottobre 2010

Spending Analysis
With spending greater than $1 billion, company which attempts to manage it without spending analysis is like trying to sail a boat without a rudder. Without spending analysis, the procurement department expends its resources by focusing on the wrong things. Spending analysis applications clearly identify where are the opportunities for leveraging, automation and compliance.
The focus of spending analysis applications is on preparing data for analysis: they extract, deduplicate, classify, cleanse and aggregate procurement transactional data.

Spending analysis tools span multiple, heterogeneous transaction systems to provide procurement with a single view of enterprisewide spending.
Unlike data warehouses or business intelligence tools, spending analysis tools deliver value through content, including common iterations of supplier names, such as "I.B.M. is the same as IBM," and classification rules, such as "classify laptops as personal computers.
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Spending Analysis
Spend Analysis (and the visibility enabled) provides the necessary foundation for procurement organizations seeking to take better and more informed sourcing decision.
By analyzing reports generated from spend data, sourcing professional within an organization can discover what they are buying, who is buing (department or business unit), from what suppliers, at what cost, how frequently.

The holy grail of spend intelligence is the full and correct auto-classification of spend data, reducing the human intervention for the data handling.
Best in Class enterprises are those with at least 81% of spend auto-classified.

BEST-IN-CLASS MEAN PERFORMANCE 88% of spend under management 8,5% cost savings as a percentage of total spending

Spending Analysis
The adoption of a Spending Analysis structured program, with technologies and dedicated skills , give important and measurable results DRIVERS FOR ADOPTION Saving identification Prioritization purchasing categories Increase spend under management Increase negotiation opportunities MAIN BENEFITS Saving (+12%) Compliance increase (+73%) Sourcing cycle time reduction Controlling implementation

The result, in term of potential saving percentage, depends on the automation level of the spending analysis process adopted
Spending analysis investment are justified when an high level of automation is reached A not automated process is not repeatable and each analysis cicle requires a significant re-work

Applicazioni ontology driven

RAW, BAD, SEMI , UNSTRUCTURED or DIFFERENTLY STRUCTURED DATA AUTOMATIC DATA CLEANSING & CLASSIFICATION CLASSIFIED & CLEANSED DATA

ONTOLOGICAL ENGINE ONTOLOGY WORK BENCH

MASTER DATA MANAGEMENT

BI TOOL
STANDARD ONTOLOGY

new standard

CUSTOMER SPECIFIC ONTOLOGY

TOTAL SPENDING VISIBILILTY

Alte performance Utilizzabilit real time Dinamicit: no obsolescenza, ridondanza, duplicazione Analisi on demand: ontologia come data repository (no DBMS) Query dinamiche: analisi in memory

Flessibilit di classificazione Lontologia cresce nel tempo (a partire da quella standard) accumulando la conoscenza aziendale in modo totalmente flessibile Le regole specifiche del Cliente si aggiungono alla ontologia mediante il tool Ontology Work Bench (disponibile per luso diretto da parte del Cliente)
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Benefici dellapproccio semantico

Struttura di base per progetti di Master Data Management

PLUS
Classificazione ottimale Conoscenza capitalizzata Tecnologia open box

Classificazione : qualit & flessibilit

Ontologia standard ready to use Flessibile e totalmente personalizzabile Massimo livello di dettaglio Elevata precisione

Operativit : elevate performance di business

Analisi real time on demand drill down al massimo livello di dettaglio Grandi volumi di dati Processo automatico
Nessun impatto sui sistemi legacy Effort minimo richiesto agli esperti del cliente Elapsed di pochi mesi

Analisi operativa per manager e buyer

Progetto : approccio assolutamente non invasivo

Costo totale (TCO)

Una suite di applicazioni ontology driven

TOTAL SPENDING VISIBILITY (TSV) GLOBAL STOCK VISIBILITY (GSV)

SELF-SERVICE PROCUREMENT CATALOG (SPC)

VIRTUAL INVENTORY SHARING (VIS)

PRICE LIST ANALYSIS (PLA)

TECHNICAL ATTRIBUTE MANAGEMENT (TAM)

TSV : Total Spending Visibility

Classificazione, automatica ad alta precisione (+95%), di dati eterogenei non strutturati raccolti da diverse fonti Ontologia standard ready to use per i principali domini (Materials & Services Ontology) e lingue (12+ : inglese, francese, italiano, tedesco, spagnolo, portoghese, polacco, fiammingo, rumeno, turco, slovacco, svedese ) Classificazione su pi tassonomie: normalizzazione e riclassificazione dei dati di spesa in base a standard di riferimento (i.e.: UNSPSC, e-CLASS) o a strutture gerarchiche del cliente
Definizione ed estrazione dinamica degli attributi tecnici per ogni categoria (200+) Albero tassonomico standard con 10+ livelli per 9.000+ categorie

Total Spending Visibility

Normalizzazione fornitori e supporto per la gestione dei Gruppi Analisi della spesa per natura e generazione automatica del modello di consumo Analisi real time on demand e drill down liberamente gestita dallutente
Aggregazione dinamica per ogni metadato di contesto (estratto automaticamente) e dato di input fornito (organizzativo, temporale, di fornitura, ) Analisi dinamica (filtri, pivot), estrazioni (xls, pdf, csv) e definizione report preferiti

Navigazione dei dati globali (+indicatori statistici) per categoria e per fornitore per analisi overview e definizione di Cost Reduction Master Plan Ricerca semantica Nessun impatto sui sistemi e processi ERP

Clienti

Grazie

paolo.gamberoni@creactive-consulting.com adriano.garibotto@creactive-consulting.com