® PeopleSoft Enterprise SRM Overview and Positioning Hosts: Steven Demetriou GSS Solutions Architect, SCM Marc Weintraub Apps Marketing, Enterprise SRM

®

PeopleSoft Enterprise SRMOverview and Positioning

Hosts: Steven Demetriou GSS Solutions Architect, SCM

Marc Weintraub Apps Marketing, Enterprise SRM

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Right now….

There is $1.1 in SRM Deals waiting for you in your territory…

SRM Sells!SRM Sells!

…we want to help you get it!

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Identifying where SRM opportunities exist in your

assigned territory

Initiating sales opportunities in your target accounts

Closing business in SRM sales cycles

The goal of this presentation is to make you better at:

Victory DefinedVictory Defined

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Key SRM “Take Aways”Key SRM “Take Aways”

Large demand in the market place

Hard dollar value proposition drives sales

We are the leading SRM solution provider

We are successful at winning deals

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AgendaAgenda

PeopleSoft SRM Suite Overview

Procurement Trends

Identifying Opportunities

Winning Deals

Solution Positioning

Competition

Supporting Resources

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PeopleSoft Enterprise SRM Suite OverviewPeopleSoft Enterprise SRM Suite Overview

FunctionFunction ProductProduct Value PropositionValue Proposition

Spend Analysis Spend Mart Identifies procurement savings opportunities and documents results.

Sourcing Strategic Sourcing Drives supplier competition and selection through online collaboration.

ContractManagement

Supplier Contract Management*

Adds automation, consistency and control to the agreement process

EmployeeSelf-Service

eProcurement,Services Procurement

Self-service requisitioning and approval management application.

Procure-to-PayeProcurement,

Payables, eSettlementsStreamlines purchase order processing while strengthening policy compliance.

SupplierEnablement

eSupplier Connection,Open Supplier Network**

Automates transactions & interactions between buyer and supplier.

Supplier Performance Management

Supplier Rating System,Procurement Mart

Monitors supplier KPI’s and evaluates supplier performance.

**Available in release 8.9 **Available through 3rd party partner, Perfect Commerce

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DemandCollection

IndirectGoods

DirectMaterials

EngineeredGoods

Services ApprovalRoutingApprovalRouting

TouchlessBuyingTouchlessBuying

Automated PaymentAutomated Payment

Budget-BasedProcurementBudget-BasedProcurement

ContractManagementContractManagement

SupplierPerformanceSupplierPerformance

CategoryManagementCategoryManagement

OnlineSourcingOnlineSourcing

SpendAnalysisSpendAnalysis

SupplierCollaboration

Settlement

Orders

ProfileManagement

Logistics

SupplierPortal

SupplierNetwork

PeopleSoft Enterprise SRM OverviewPeopleSoft Enterprise SRM OverviewThe Integrated Suite that Dramatically Cuts

All Supply Management Costs

Enforce Policy ComplianceEnforce Policy Compliance

Reduce Spend on Goods and ServicesReduce Spend on Goods and Services

Streamline Procurement ProcessesStreamline Procurement Processes

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When you hear this…When you hear this…• Internal Compliance• Transaction

Efficiency• Maverick Spend• Demand

Management• Product

Standardization• Catalog

Management

• Purchase price Reduction

• Cost takeout• Category

Management• Tactical Sourcing• Risk Management• Vendor

Rationalization

• Supplier Compliance

• Supplier Performance Management

• Supplier Enablement• Supplier On-boarding• Supplier Portal• EIPP• Supplier Self-Service

• Direct Materials Management

• CPFR• Business Process

Outsourcing

……think this.think this.• eProcurement• (Purchasing)• Services

Procurement• GL’s Commitment

Control

• Strategic Sourcing• Contract

Management*

• Spend Mart• Supplier Rating• Procurement Mart

• Community Portal• eSupplier Connection• SC Portal Pack• Open Supplier

Network**• eProcurement (Direct

Connect)

• Call in Specialists in the IBU to Help Support Sales and Solution Strategy

**Available in release 8.9 **Available through 3rd party partner, Perfect Commerce

PeopleSoft Enterprise SRM OverviewPeopleSoft Enterprise SRM Overview

Buzz Words, Industry Terms, & Solutions

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Procurement TrendsProcurement Trends

Goal Achievement Strategies Advanced sourcing & supplier relationship approaches Improve supplier development and collaboration Out sourcing, low-cost country sourcing Increasing spend under management Extend and enhance procurement process automation

Procurement’s Charter Positively impact corporate operating margins Provide goods and services at a reduced cost and

managing corporate spend patterns Provide year-over-year savings

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Identifying OpportunitiesIdentifying Opportunities

1 in 9 dollars is from SRM…

CY2004 PeopleSoft Enterprise Revenue by Pillar

…with core products dominating…

CY2004 PeopleSoft Enterprise SRM Revenue by Product

…and strong Public Services selling…

CY2004 PeopleSoft Enterprise SRM Revenue by Industry

…FY06 Goal: $55.8M in SRM

FY2006 PeopleSoft Enterprise SRM Revenue Goal by Product

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General Target Account Profile

• >$1B for SRM, >$2B for SPro & Strategic Sourcing

• Enterprise 8.4 or greater, or Upgrading from 8.0

• Owning Purchasing is a plus

Summary of Opportunity Areas

• Financials Install Base Up-Sell

• SRM Suite Extensions

• Contingent Workforce Management Up-Sell

• Enterprise Upgrade Up-Sell

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Financials Install Base Up-Sell

• 1800 target accounts

• ERP integration lowers TCO, leverages existing investments

• Position: eProcurement, Strategic Sourcing, Services Procurement, and Supplier Contract Management

*overlapping with target in Financials Install Base Up-Sell

SRM Suite Extensions

• 1400 target accounts*

• Next wave of strategic value-add, extend hard dollar savings

• Position: Strategic Sourcing, Services Procurement, Supplier Contract Management, Spend Mart, Procurement Mart and Supplier Rating System

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Contingent Workforce Management Up-Sell

• 673 target accounts*

• Services is an untapped source of value

• Position: Services Procurement and complimentary HCM applications

*not overlapping with target in Financials Install Base Up-Sell

Enterprise Upgrade Up-Sell

• 836 target accounts

• Path to project Fusion, reduce overall upgrade expense

• Position: 8.9 release of customer owned modules, plus appropriate SRM modules additions: ePro, Strategic Sourcing, Contract Management

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Tales from the FieldTales from the Field

Big SRM Wins…

• Qwest: $2.5M full SRM/Materials Management solution

• HP: $2.8M Services Procurement deal in SAP lighthouse account

• IBM: $2M Services Procurement deal

• Leggett & Platt: $1M SRM deal lead by hosted Strategic Sourcing solution

• FedEx: $1.1M eProcurement Ariba replacement

• Kaiser: $12M Enterprise license deal precipitated by$700K eProcurement and Catalog Management opportunity

Winning DealsWinning Deals

Tales From the Field

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Why We Win…

• Single solution vendor preference, TCO a priority

• Strong account relationships

• Proactive selling and road-mapping


Why We Lose…

• Fail to do strategic discovery early

• Fail to position and differentiate our unique value proposition

• Fail to effectively sell to procurement and appropriately leverage our account relationship strengths

• Fail to foster the perception of thought leadership, market leadership, experience and trust

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Strategic Discovery – Elevated Q & A

• Prerequisite for a successful sales cycle

• Defines you (and the solution) in a leadership role

• Uncovers and clarifies economic value & pains

• Identifies and expands the opportunity

• Builds trust and rapport

Solution Value Positioning & Differentiation

• Requires industry-specific solution value knowledge

• Requires account and decision-maker knowledge

• Requires competitive capabilities & activity knowledge

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Industry Positioning

• Industry implication solutions and messaging are critical.

• SRM processes and value propositions vary by industry.

• Addressing industry practices and value propositions builds sales credibility and solution differentiation.

Oracle Industry Vertical SupportOracle Industry Vertical Support

Aerospace & DefenseAutomotiveChemicals, Oil & GasCommunications & MediaConsumer GoodsEducation & ResearchFinancial ServicesGovernmentHealthcare

High TechnologyIndustrialsLife SciencesProfessional ServicesPublic ServicesRetailTravel & TransportationUtilities


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Engage Decision-Makers, Leverage Relationships

• Play out the successful sales cycle in reverse:

– Who was involved and why – Think CEO, CFO, VP HR

• Find solution relevance for must-have decision-makers

• Knowledge and credibility is key

• “We speak Procurement” – get informed, use resources

Thought Leadership

• Know our SRM/Procurement story, it’s a good one

• Leverage our experts (Strategy, Marketing)

• Have an opinion when it comes to our competitors

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CompetitionCompetitionWeaknessesStrengths

Narrow, point solutions not inclusive of other enterprise functions

Higher TCO due to required interfaces Lack flexibility Questionable financial viability Unproven business model mixing s/w & services Limited capacity to scale across spend areas Limited support in certain industries e.g. Public Sector due to

lack of encumbrance accounting

Lagging 2 years behind in SRM functionality e.g. no contract management story

Netweaver is unproven and untested Limited understanding of the purchasing domain Very slow release cycles, many beta customers "Per Supplier" pricing penalizes supplier ramp-up—

questionable viability CCHubwoo, limited presence in North America

Too focused on expensive services—creates dependency Fails to link procurement with key disciplines e.g. Financials,

Engineering, Maintenance, etc Few proven ERP integrations—creates yet another

information silo No references using ‘end to end spend management’ Too focused on indirect materials—no strategy for direct

materials

Functional depth Focused on purchasing domain Strong references—especially by industry Easy deployment Proven ROI

Nic

he V

endo

rs

Breadth of solution Netweaver architecture Focused on vertical industries—especially Manufacturing Commitment to product enhancements Strong supplier enablement—partnership with CCHubwoo World’s largest applications vendor

SA

P

Strong focus on & understanding of purchasing ERP agnostic Strong services offering & deep expertise Strong references Strong brand identity End-to-end spend management offering

Arib

a

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Solution PositioningSolution Positioning

Key Needs/Business Drivers

• P.O. processing overwhelming, department spending out of control

• Corporate cost reduction is a priority

• Costly legacy system upgrade is needed Key Benefits

• Cost savings, cycle time reduction, compliance & control Related Modules

• OSN, Services Procurement Competitors/Tactics

• Competitors: Ariba, P-Net, Home-Grown, Supplier Provided (Staples/Dell)

• Tactics: Domain expertise, proven solution/references, ease of use, feature function, low cost hosting options

Selling Themes/Tactics

• Selling Themes: ERP integration, broad & deep process integration, TCO, SOX compliance, single technology vendor with strong enhancement futures

• Tactics: Sell to Procurement, bring in the experts, reference early, broaden selection decision base, vendor viability

eProcurement

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• Corporate cost reduction is a priority

• Sourcing practice maturity requires new capabilities and technology tools

• Paper, paper everywhere Key Benefits

• Broader & deeper cost savings, supplier reduction, contracting process standardization and efficiency

Related Modules

• Spend Mart, Supplier Rating Competitors/Tactics

• Competitors: Ariba, Emptoris, Procuri, Frictionless, VericalNet and more….

• Tactics: Domain expertise, proven solution/references, ease of use, feature function, low cost hosting options, sourcing category expertise

Selling Themes/Tactics

• Selling Themes: Deep SRM and ERP process integration, SOX compliance

• Tactics: Strategic discovery early, bring in the experts, sell to Procurement, broaden selection requirements

Strategic Sourcing & Supplier Contract Management

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• Concern over unmanaged Services spend: High cost, multiple fronts of legal risk, overtime/overpayment concerns

Key Benefits

• Reduced services spend, reduced corporate risk relating to contractors, improved quality and access to contracted skills

Related (HCM) Modules

• Talent Acquisition Manager, Candidate Gateway

Competitors/Tactics

• Competitors: Ariba, E-Lance, Chimes, Fieldglass, and many BPO firms

• Tactics: Domain expertise, proven solution/references, ease of use, feature function, low cost hosting options, business process outsourcing support

Selling Themes/Tactics• Selling Themes: HCM, FIN, SRM integration, robust complex services

management, single technology vendor with strong enhancement futures TCO,

• Tactics: Proactive selling, bring in the experts, sell to HCM and Procurement, leverage IT relationships to support TCO

Services Procurement

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OrganizationOrganization Value Add in Sales Cycles & Opportunity DeploymentValue Add in Sales Cycles & Opportunity Deployment

Industry Business Unit (IBU) SRM Up-Sell

Focused on identifying and closing SRM deals within the install base, provide domain knowledge and application expertise during the sales cycle.

Industry Business Unit (IBU) Industry Groups

Provide industry expertise and assist during the sales cycle with business strategies through solution recommendations tailored to specific industries.

Global Sales Support (GSS)Offers applications expertise in sales, marketing, competitive knowledge and business development to the worldwide Oracle community.

Applications MarketingBringing Oracle applications to market through the development of content, execution of campaigns, and sales cycle support.

Product ConsultingProvide detailed product knowledge and competitive differentiation to the sales cycle.

Field MarketingDrive awareness and thought leadership by managing and promoting live regional events and web-based forums.

Product StrategyResponsible for driving the future direction of requirements for Project Fusion as well as the interim strategy for each product family.

Key Support Organizations

Supporting ResourcesSupporting Resources

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Sup

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IBU, Vice President IndustriesHarry Ghuman

Director, Field MarketingPerry Hardt

Sr. Director, Procurement Apps MarketingDavid Hope-Ross

GSS, Procurement Solution ArchitectSteve Demetriou

GSS, Solution Architect ManagerBill Welch

IBU, Procurement Up-Sell Greg Cozzens

Director, Procurement Product StrategyTom Anthony

OrganizationOrganizationName Name

Enterprise SRM Apps MarketingMarc Weintraub

GSS, Procurement Solution ArchitectVance Checketts

IBU, Procurement Up-Sell Miklos Gaal

IBU, Procurement Up-Sell DirectorMike Kvietkus

Key Sales Support Contacts


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Sales Materials on Global Xchange

• Sales Kits > Advance Procurement > PeopleSoft Enterprise SRM

• Presentations, News, Positioning, Messaging, Collateral, etc…

Ongoing Announcements

• Subscribe to Global Xchange procurement professional community

• Communities > Procurement > Subscribe

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Thank You &

Good Selling

Documents

® PeopleSoft Enterprise SRM Overview and Positioning Hosts: Steven Demetriou GSS Solutions Architect, SCM Marc Weintraub Apps Marketing, Enterprise SRM