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Candace Blust

Why Adoption Matters: Maximizing ROI through Engagement

By Procurement No Comments

Adoption is the latest in a long line of buzzwords and many of you probably have it on your “corporate lingo” bingo cards.  And you may have gotten a foundational point of view of adoption from my colleague Loyd Hawkins in his “Content Is King” blog.

But let’s discuss another aspect of adoption and get to why it should be more than just a buzzword to your organization.

Whatever software solution you are implementing, no matter the industry, one of the measures indicating success that remains the same is ROI.

What are getting from installing your solution?  Not just “saved time through clicks” but the resolution of issues that specifically impact your users from day to day, like having to answer fewer questions due to enhanced access to reporting or being able to source more commodities because you’re spending less time pouring through emails to find your RFQ responses.

None of this value happens, there is no positive ROI, if no one is using the software. Thus, the importance of adoption.

Allow me to take the time to plug two heroes of adoption value – change management and communication.

Whether big, medium, or small change, you will not see improvement if you continue to do things the same way.  Therefore, change management and communication must be an integral part of your implementation program.

Don’t forget the training part of this as well, as discussed by my colleague Rich Potts in his blog, “Training for Outcomes”.

Let users know what’s coming.

Let them know the elements of the upcoming change that will increase the company’s ability to be competitive.  Let them know how it will help them do their jobs better, faster.  Let them know how they will be supported after the software goes live.  Let everyone know how you will measure success as you use the system.

Ensuring users understand the playbook and end goal for the new software increases familiarity and therefore increases usage. Don’t get me wrong – support from the high levels are one ingredient to a successful adoption stew – but we all know that one ingredient alone makes for a bland dish, right?

We all know that communication gaps in the procurement function are highlighted as an issue by C-suite executives.  A recent report from Economist Impact sponsored by SAP Ariba addressed these and other procurement-focused challenges to the C-suite, such as “gaps in procurement’s visibility into stakeholder risks and priorities”, according to Baber Farooq, senior vice president for Market Strategy Procurement Solutions at SAP.  You can eliminate these perceptions before they become a larger problem by focusing on communication wherever possible.

Let’s talk about your company’s self-awareness.  Sounds strange, I know.

Do you know the change agility of your organization?  Are they raring to go when tools are available, or does it take a while for people to warm up to a new process?  If ramp up time is a factor, make sure you account for that in your adoption statistics.  There will be some sort of curve the company will follow until you’re speeding along the efficiency highway.  Counting on immediate adoption will have a negative effect on morale and adoption.  Set your team up to win in this transformation with realistic adoption targets.

What’s a great go to document to know how well you’re doing along the software implementation journey?  The business case.

You would be surprised how many companies launch into a major software change without documenting the whats, wheres, whens and whys of a software purchase.  You don’t have to “wing it” to come up with relevant KPIs for this project if you’ve done that before the project starts.  Indicators may change, and sometimes they should, but a business case at least provides the initial strategy upon which that adoption can be built.  And throughout the project you can turn back to the business case to make sure you’re on track.

And after go-live, let’s hear it for ongoing communication that rewards those who have taken the plunge to support the company’s future goals by using the software.  Give those that are successful with it an opportunity to show others that it can be done.  These can be the best folks to convert your doubters in the crowd.

Ultimately, you are the experts in the operation of your organization.  An advisable strategy to see faster time to value would be to engage PREMIKATI to handle the people, processes, and technology of your SAP Ariba transformation.  This leaves you more time to strategically evaluate, plan, and act on your corporation’s ability to take full advantage of your technology upgrade.  Or you can engage the change management experts at PREMIKATI to take your ROI even further. Getting assistance to speed up your adoption ROI is winning strategy, no matter the goal!

Content Is King

By Blog No Comments

So your organization has transformed a paper-based, zero-control system to the latest, fresh-off-the-shelf Ariba Procurement platform.

You finished ahead of schedule and managed not to incite a revolt amongst your stakeholders. And now you have a fully “live” system. You should be on “Cloud” Nine!

However, a dark cloud is looming on the horizon – ADOPTION! In order to fully realize your return on investment, your organization must continue to increase adoption across all spend categories. The math is simple: Adoption = spend throughput = savings.

Enabling Spend: A Daunting Task

Enabling spend can be a daunting task. Each spend category may consist of several commodities, and each commodity may have features and attributes that require several enablement approaches. Hopefully, you took advantage of Ariba Value Enablement Services to create a strong Category Enablement Plan.

But, fear not! If you haven’t, all is not lost. As a rule of thumb, commodities usually fall into four major purchasing processes: Catalog, Non-Catalog, Purchase Order Against a Contract (POAC), and Invoicing Against a Contract (IAC).

Catalog: Streamlined Purchases for Known Goods

This type of purchasing process is great for buying known goods and services. At a minimum, the price and supplier are known. Catalogs allow users to buy only what the organization allows them to buy, but still provides choice. By working with your supplier and category managers, you can easily contract and define these items and aggregate them into catalogs.

Additionally, through the use of the Ariba Commerce Cloud, you can push catalog creation and maintenance to your suppliers while maintaining approval authority and control. As you move along your enablement journey, you should see an increase in catalog purchases and a decrease in non-catalog purchases.

Examples of catalog purchases: Office supplies, IT equipment, copier and fax machines—any consumables where both the price and supplier(s) are known.

Non-Catalog: The “Fail-Safe” Purchasing Process

The non-catalog purchasing process is a safety net when it’s difficult to get 100% of your known goods and services into catalogs. Your stakeholders still need a way to buy what they require. Instead of reverting to old processes, Ariba’s non-catalog function allows authorized users to request items and route those requests to a professional buyer for review. This enables greater oversight while still capturing spend within your procurement platform.

Over time, non-catalog spend should decrease as catalog purchasing grows.

Purchase Order Against a Contract (POAC): Enhanced Control

Even with catalogs and a functioning non-catalog process, you may want more control. POAC allows you to place stricter limits on items and suppliers. By linking catalogs, categories, or suppliers to contracts, you can control maximum quantities, spending limits, and apply dynamic discounting across your spending profile.

When goods or services are added to a purchase order, Ariba checks them against the contract’s terms and applies these controls automatically.

Invoicing Against a Contract (IAC): Flexibility with Control

Around 60 to 70% of organizational spend is related to professional services such as consulting, facilities maintenance, legal services, and security. Previously, companies issued blanket POs for this type of spend, an inefficient and ineffective process.

With IAC, you can set up contracts with clear terms for pricing, delivery, and maximum invoice amounts. Suppliers invoice through the Ariba Network, and any items outside the contract trigger an invoice exception. Clean invoices can be processed with zero human intervention, speeding up transaction times and reducing manual work for your A/P team.

Moving Toward Best-in-Class Spend Adoption

While there may be exceptions to each of these process groups, this framework provides a solid starting point for moving from weak adoption to industry-leading spend adoption. By continuously increasing adoption and spend throughput, you will set your organization on a path to achieve best-in-class procurement efficiency.

 

Ready to unlock the full potential of your Ariba Procurement platform?

Don’t let adoption stand in the way of maximizing your ROI.

Let PREMIKATI guide you through every step of your spend enablement journey, ensuring seamless adoption and industry-leading procurement efficiency. Contact us today and take control of your procurement success.

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