cognitive procurement - the future is here!

Stefan Freund, Robert Jamison, Reid Francis

Cognitive Procurement - The Future is Here!

Please Note:

• IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion.

• Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.

• The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract.

• The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

• Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

SSM Suite roadmap

Interaction User Experience Enhancements

Integration Internal/external systems

InsightsAnalytics and Advanced Reporting

InnovationCognitive Supply Chain Topics

� Design Thinking releases v10.1 -

(Contracts), v10.1.1 (Sourcing)

� Next Release – Contract Editor

� Reporting on Cognos 11 (new UX)

� Within Emptoris Suite and PgM

� Within IBM (Maximo, Filenet, etc)

� External systems (Coupa P2P,

other enterprise apps)

� Reporting Services w/external

data systems available now

� Additional self-service models on Cognos

� Extended analytics – IBM assets

� Big Data for Supplier Risk

� Procurement Advisor

� Procurement Insights

Agenda

• Emptoris + Watson = Cognitive Procurement

• Procurement Intelligence (a new Emptoris app!)

• Digital Workbench

• Watson Company Analyzer (former SupplierIQ)

Emptoris + Watson = Cognitive Procurement

The evolving role of procurement through 2020

Insights

Advisor• Real Time visibility

• Relationship managers?

• Transformation

• Cognitive Procurement

• Supply Chain Risk Mitigated

• Corporate/global innovation

Enabler• Historical data visibility

• Commodity specialized and

expert

• Compliance

• e-Procurement, Digital

• Supply Chain Risk Managed

• Procurement-only

innovation

Administrator• Limited visibility

• Generalist covering all

aspects of S2P

• Savings focus

• Transactional

• Supply Chain Risk Aware

• No innovation

Strategic

Cognitive in procurement

IBM Enterprise Source to Pay

Enterprise spendmanagement

StrategicSourcing

ProcurementContracting

Procurement Compliance& Savings ValidationPurchaseRequisition Invoice

SupplierQualification

Supplier Risk Management

Supplier Compliance Management

SupplierClassification

Supplier Lifecycle Management

Supplier Evaluation & Development

Procurement data

News

PR

Filings

LegalActions

RegulatoryActions

Events

Social(official)

Social Opinion

Analysis

Economic Conditions

Geopolitics

Weather

EmployeeData

CustomerData

nTierSuppliers

eMails

wiki

Intranet

Minutes

Incidents

Issues

Suggestions Innovations

Complaints

Reviews

Outcomes

Performance

Reports

Analyses

Evaluations

Summaries

RankingsRatings

Feedback

KPIs

SLAs

Supplier Master Data

Spend Data

Contract Data

Sourcing Bids & Results

Scorecards

POs/Invoices

The need for cognitive

To combat a broad range of disruptive forces, clients need strong capabilities in engagement, discovery and decision making

To take their engage, discover and decide capabilities to the next level,

Procurement leaders must be smarter in how they approach data.

$

DiscoverEngage Decide

Empowered consumers

Changing demographics

Product redesign/demand

Supplier resiliency

Changingregulations

Cognitive computing

Cognitive Automation� Autonomous decision

making (“reasoning and

remembering”)� New insights and data

discovery (“learning”)

� Personal and interactive

support (“engagement”)

Watson technology enables the transformation

Understands natural language, structured and

unstructured data, text

or sensory information

Generates and evaluates hypotheses

for better outcomes

Adapts and Learns from user selections

and responses

1 2

3

� Customer Experience– Guided Assistance

– Self Service

� Personalized Coach/Learning

� Compliance and Regulation

� Risk Management� Transition Management

� Sales and Solution Support

Key BPS

Focus

Areas

Cognitive computing dramatically transforms business processes through intelligence and automation

Cognitive computing

50 underlying technologies

� Entity Extraction

� Sentiment Analysis

� Emotion Analysis (Beta)

� Keyword Extraction

� Concept Tagging

� Taxonomy Classification

� Author Extraction

� Language Detection

� Text Extraction

� Microformats Parsing

� Feed Detection

� Linked Data Support

� Concept Expansion

� Concept Insights

� Dialog

� Document Conversion

� Language Translation

� Image Tagging

� Text Detection

� Visual Insights

� Visual Recognition

� AlchemyData News

� Tradeoff Analytics

Watson News Explorer

Natural Language Classifier

Tone Analyzer

� Natural

Language

Classifier

� Personality

insights

� Relationship

Extraction

� Retrieve and

Rank

� Tone Analyzer

� Emotive

Speech to Text

� Text to Speech

� Face Detection

� Image Link

Extraction

Watson in Procurement

12

Cognitive Procurement

IBM Watson

cognitive capabilities

IBM Emptoris

procurement experience, processes, data

Enterprise spendmanagement

StrategicSourcing

ProcurementContracting

Procurement Compliance& Savings Validat ionPurchaseRequisition Invoice

SupplierQualification

Supplier Risk Management

Supplier Compliance Management

SupplierClassification

Supplier Lifecycle

Management

Supplier Evaluat ion & Development

+

Cognitive Procurement

Cognitive Procurement – enhancing the Emptoris Suite with Watson solutions

Watson Cognitive Platform

Foundational Analytics

W C A

D eep S upplier

Insight

B lueH ound

Instant

C ontract

A nalysis

W B A

Trusted

B uying

A dvisor

R isk Insights

R isk

M itigation

P ricing IQ

D ynam ic P ricing

Inform ation

IBM Procurement

IBM Emptoris Procurement Solutions

inspired by

Innovation Projects

Big Data for Supplier Risk

Receive alerts on trending social

media / news about your suppliers!

► better supplier risk insights,

faster risk mitigation

Watson + SLM Risk #omnipresent Watson + SSM Suite #justask

Watson + SSM Suite #getinsight

Procurement Advisor

Watson can answer any question

on your strategic procurement!

► higher user adoption,

improved efficiency

Procurement Insights

Watson powered procurement dashboards

for a holistic overview and unique insight

► increased transparency, discovery of

optimization potential

procurement intelligence

(a new Emptoris app!)

Emptoris SSM Suite + Watson

Allowing you to:

� Gets answers to question for question without having to

understand the data model or data complexities of the supply chain

data for his company.

� Clarify a request if it is not understood by providing further or

narrowing information.

� Quickly see data related to the suppliers or categories without

having to login or access other systems

• Procurement professionals struggle to easily find procurement data

• Data is spread across multiple systems with different data models and terminology

• The most difficult data to map is sometimes the most important

We want to solve this with...

Allowing you to:Which suppliers am I already working

with?

How much am I spending in certain

regions and categories?

Who are my top suppliers?


Example Use Cases for Watson in Procurement

1.Natural Language Question

2. Interactive Chat

3.Actual Advise about a business question

Digital Workbench

Digital Workbench

P rocurem ent Suite

Sourcing 4 C ontract M anagem ent SLM 12

Spend PG M 27

R elease H iuT ech 29.10.2016

Evaluate B annister 01.11.2016

Evaluate T echInc 02.11.2016

A nsw er Leonrod 06.11.2016

O pen all in S LM

R elease A cm e 11.11.2016

R eview Zew an IT 19.09.2016

R eview A cm e 31.12.2016

A w ard T echInc 12.05.2016

Initiate Leonrod 16.07.2016

O pen all in S ourcing

A nsw er B usw ell 29.10.2016


A pprove P eneller 02.11.2016

A pprove Leonrod 06.11.2016

O pen all in P G M


Buswell

H iuT ech 34.900.000

B usw ell 31.081.000

T echInc 28.760.000

P eneller 25.400.000

O pen in S pend

A cm e 24.150.000

A pprove B usw ell 29.10.2016


R eview B usw ell 02.11.2016


O pen all in C M

R enew B annister 11.11.2016

P rocurem ent Suite


Spend PG M 27 A dvisor *N EW *





O pen all in S LM


H ave a question?

→ A sk W atson

H ow m uch spend do w e have on ...? W hich are the best suppliers?

W hich contracts exist w ith ...? W ho w on the last Sourcing event?










O pen all in P G M


Buswell

H iuT ech 34.900.000

B usw ell 31.081.000

T echInc 28.760.000


O pen in S pend

A cm e 24.150.000





O pen all in C M


Digital Workbench

Digital Workbench

P rocurem ent Suite


Spend PG M 27 A dvisor *N EW *





O pen all in S LM


H ave a question?

→ A sk W atson

H ow m uch spend do w e have on ...? W hich are the best suppliers?

W hich contracts exist w ith ...? W ho w on the last Sourcing event?










O pen all in P G M


Buswell

H iuT ech 34.900.000

B usw ell 31.081.000

T echInc 28.760.000


O pen in S pend

A cm e 24.150.000





O pen all in C M


Supporting more

and more apps

creating a

Procurement Workbench

Procurem ent new s *N EW *Procurem ent new s *N EW * Supplier room s *N EW *Supplier room s *N EW *

C oupa

H iuT ech 34.900.000

B usw ell 31.081.000

T echInc 28.760.000


O pen in C oupa

A cm e 24.150.000

C oupa

H iuT ech 34.900.000

B usw ell 31.081.000

T echInc 28.760.000


O pen in C oupa

A cm e 24.150.000

M y O rder Tracking 819

….... ....... .......

….... ....... .......

….... ....... .......

….... ....... .......

O pen in M y O rder Tracking

….... ....... .......

M y O rder Tracking 819

….... ....... .......

….... ....... .......

….... ....... .......

….... ....... .......

O pen in M y O rder Tracking

….... ....... .......

W C A *N EW *

View a supplier!

→ go

W C A *N EW *

View a supplier!

→ goNews Social

Partner Own apps More Watson

Working time spent

Strategic

Transactional

?

Cognitive

Engagement

Working time spent

Strategic

Transactional

Social

C ollaborationA nalytics

Watson Company Analyzer

(formerly known as SupplierIQ)

Introducing Watson Company AnalyzerA solution for procurement officers and managers

G enerate a detailed profile and

overview of a com pany

E lim inate m anual data

gathering

A utom ated financial

benchm arking inform ation

U p-to-date industry new s

and activity Single

Platform

Intuitive

U I

C loud w / on

prem option

Security

O LS/D LS

SpeedC ognitive

A nalytics

Private D ata

(O ptional)

Public

R epositories

Social

M edia

R eports B ios Em ail Forum s W eb

D ata

Features

Thank you!

cognitive procurement - the future is here!

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