Sales Guide: Oracle Procurement Cloud

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The document discusses the market opportunity and target markets for Oracle Procurement Cloud. It also outlines some of the challenges procurement organizations face and priorities of procurement leaders.

The target markets mentioned are enterprise, mid-market, and SMB organizations looking to better manage costs and streamline processes. Specific industries called out are higher education, manufacturing, healthcare, utilities, high tech, transportation, and business services.

The document states that reducing costs is the top priority for procurement leaders. It also mentions that managing risk is a high priority as 87% of organizations faced disruptions with suppliers in the past few years.

Sales Guide

Oracle
Procurement
Cloud

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Sales Guide

Oracle Procurement Cloud

Market Insight | 3 Offer | 4 Audience | 5


• Market Opportunity • Elevator Pitch • Key Messages
• Target Market • Solution Description • Sales Tactics & Messaging
• Industry Trends & Challenges • Benefits • Key Features
• Key Audiences and Pain Points • Value Proposition • Conversation Starters / Topics to Investigate

SWOT Analysis | 6 Customer Challenges and Competition | 7 Use Cases and References | 8
• Addressing Customer Challenges • Use Case 1
• Addressing Competitive FUD • Use Case 2
• Overcoming Objections
• Competitive Traps to Set

Selling Tools and Contacts | 9


• Benchmarks / Technical Evidence
• Selling Motions
• Cross Selling Opportunities
• Analyst Reports
• Additional Resources
• Key Contacts

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Sales Guide

Oracle Procurement Cloud


Market Opportunity Target Market
Procurement is a critical function that drives cost savings, controls spend, manages risk and Industries and Organizations to target:
supplier relationships, and enables revenue growth. Increasingly, organizations of all sizes are • Enterprise, Mid-Market, and SMB needing to better manage costs, spend, and streamline the
adopting cloud solutions that streamline the Source-to-Settle cycle with modern technologies such Source-to-Settle process
as social collaboration, mobile access, and more intuitive user experiences to drive improvements • Industries: Higher Ed, Industrial Mfg., Healthcare, Utilities, High Tech, Travel & Transportation,
in productivity and user adoption. Professional and Business Services
Forrester estimates the market for procurement (full-Source-to-Pay) software is growing rapidly • Sell Sourcing and Contracts & Supplier Qualification Management individually or together into
(CAGR of 13%), with total revenues of $7.9 billion in 2017. Subscription-based solutions comprise JDE, EBS, PSFT install base and/or companies greater than $1B in revenue that lack these
the largest segment ($4.4B CAGR of 16%), outpacing that for on premises (CAGR of -1.8%), but the capabilities.
on premises market remains significant as medium and large-sized enterprises are choosing to • Sell the full suite into large enterprises with >$1B in revenue
maintain existing software rather than disrupt the critical integrated processes and data required • Mid-Market and SMB more apt to buy Procurement, Self Service
to procure the needed materials, parts, services, and supplies. • Procurement and Financials (P2P).
Regional breakdowns as follows: • Net New vs. SAP/Ariba or Coupa take out
Americas: $4.1 B in 2017, growing at 9%
EMEA: $2.9B, growing at 10%
APAC: $817M growing at 10%

Industry Trends & Challenges Key Audiences & Pain Points


The value drivers for Procurement are closely linked to a company’s overall business objectives and CPO - Chief Procurement Officer
C-level priorities as well as the market environment in which the company operates. These • Reduce Costs – Reducing costs and controlling spend is their top
objectives include: revenue growth, improving margins, and managing uncertainty. priority. The largest culprit is “maverick” or unauthorized spending by employees. They also need
Accordingly, Procurement priorities are as follows: to direct spend to authorized suppliers who are under contract to provide competitive prices.
Reducing Costs: According to the Deloitte 2018 CPO survey, the top priority for CPOs surveyed is • Increase Productivity – the source-to-settle process is often inefficient due to disparate systems,
reducing costs. This statistic is closely linked to CPOs wanting to increase cash flow. lack of standardization and automation. Employee purchasing is inhibited by non-intuitive and
difficult to use systems, leading to lack of adoption and employees circumventing the process.
Managing Risk: According to the Deloitte survey, 87% of organizations faced a disruptive incident
• Supplier Management – Supplier problems can disrupt production cycles. Companies need a
with suppliers in the last two to three years. Procurement risk is at its highest ever level and
systematic way to qualify, select, and manage suppliers to reduce risk, manage quality, and
managing risk is the second most important priority for CPOs. ensure revenue growth.
Operational Excellence: Improving the Procurement organization's productivity though greater CFO - Chief Financial Officer
automation and collaboration. Also consolidating spend by reducing the number of suppliers and
• Reduce costs, improve margins, cashflow and optimize working capital.
increasing productivity through supplier collaboration.
Support Revenue Growth: Managing suppliers, onboarding them quickly, and sourcing effectively
to meet new product/service launches while minimizing supply disruptions in order to meet
company revenue goals.

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Sales Guide

Oracle Procurement Cloud

Elevator Pitch Solution Description


Oracle Procurement Cloud is a complete, modern cloud-based solution. It enables companies to Supplier Qualification Management Cloud: Qualify and assess suppliers to support supplier
reduce costs, improve productivity, manage risk, and grow revenue by streamlining and management and compliance. Capture timely updates and proactively respond when changes
automating the complete source-to-settle process. It helps improve margins through negotiated affect qualifications, capabilities, or risk profile.
savings, contract terms, policies, controls, and compliant purchasing. Robust supplier management Sourcing Cloud: Simplify your negotiation activities with intuitive tools, collaboration, and guided
ensures compliance, improves productivity, and manages risk. The solution can be licensed as a full
authoring. Compare criteria across bids to make faster awards and maximize savings.
suite or as individual products depending on the customer’s requirements.
Procurement Contracts Cloud: Simplify contract creation through guided authoring, templates,
Oracle Procurement Cloud enables organizations to:
and deviation reports. Enforce approvals, enable electronic signatures, and automate renewals.
• Reduce costs and control off contract (“maverick”) spend
Self Service Procurement Cloud: Help employees to quickly find goods and services with an
• Source more effectively and efficiently to realize greater value
intuitive buying experience. Ensure purchases leverage negotiated pricing to maximize savings.
• Reduce risk, enforce terms, and ensure policy compliance
Purchasing Cloud: Automate requisition to purchase order creation and approval workflow.
• Support Revenue Growth via new product introductions and M&A
Supplier Portal Cloud: Improve collaboration, give suppliers insight into activities and
transactions, allow document sharing and commentary, and enable electronic transactions.
“When can we discuss more about how we can do this for you?”

Value Proposition
Benefits
CPO – Chief Procurement Officer
• Reduce Costs: Reduce costs by leveraging negotiated savings into compliant purchases from • Reduce Costs – Reduce costs by leveraging negotiated savings into compliant purchases from
approved suppliers to minimize off contract (“maverick”) spend. approved suppliers to minimize off contract spend.
• Increase Efficiency: Simplify, standardize and automate processes to reduce cycle times and • Manage Supplier Risks – Manage supplier risks by having complete visibility into source-to-settle
effort. process.
• Ensure Compliance: Enforce buying through approved suppliers and ensure compliance with • Increase Productivity – Increase productivity by simplifying, standardizing, and automating
contract terms process with robust audit trails. Ensure approvals of invoices as well as processes to reduce cycle times.
employee-generated purchase requisitions with full audit trails. • Ensure Compliance – Ensure compliant purchasing through approved suppliers and within contract
• Enable Revenue Growth: Support new product/service introduction and ensure uninterrupted terms. A simplified user experience makes it easy to purchase while ensuring control through
approval workflows.
supply through proactive reordering and supplier risk management.
• Modernize: Leverage modern procurement applications that incorporate social collaboration,
mobile device enablement and embedded analytics to reduce cycle times and ensure CFO – Chief Financial Officer
compliance spend. • Streamline Processes – Streamline Accounts Payable by automating supplier invoice processing.

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Sales Guide

Oracle Procurement Cloud

Key Messages by Persona Sales Tactics & Messaging


CPO – Chief Procurement Officer Seller’s Essentials
Companies face increasing pressure to reduce costs, manage risk, and grow revenue through agile
Battle Card: Procurement Cloud
Procurement organizations that are responsive to changing business strategies, market demands,
and shifts in supply markets. Oracle Procurement Cloud is a modern, cloud-based, end-to-end Elevator Pitch
source-to settle solution that enables companies to reduce costs, control spend, manage risk, and Procurement Cloud Data Sheets
grow revenue. Leveraging digital technologies, it is an integrated solution designed to maximize
Solution Brief: Oracle Procurement Cloud
productivity and more effectively manage suppliers, sourcing, automate purchasing transactions,
and contracting activities. Procurement Customer Presentation

Only Oracle delivers:


• A modern, cloud source-to-settle solution.
• Automation for routine tasks and streamlined business processes.
• An intuitive and consumer-like buying experience that makes it easy to adopt while ensuring
compliant spend.
Key Features
Procurement Cloud is a full end-to-end solution suite that helps companies manage suppliers,
Conversation Starters / Topics to Investigate
reduce risk, control spend, and improve margins. 1. What is the average time to create, negotiate, and approve a contract?
It includes many modern features including:
2. What percentage of your addressable spend is actually sourced?
• Standardize and streamline sourcing negotiations and contract creation through templates,
clause libraries, guided navigation, and authoring. Built in social collaboration streamlines 3. What percentage of spend is contract compliant?
information sharing; deviations monitoring flag changes that diverge from standard language to 4. What percentage of supplier invoices are manually entered?
ensure compliance. Workflows streamline reviews and proper approvals. 5. Is your procurement department standardized, streamlined, and automated?
• Improve supplier management through electronic information gathering and document sharing.
6. What percentage of total spend is linked to a purchase order?
Qualify suppliers and ensure up to date information. Receive notifications when changes occur
to qualifications and risk profile. 7. Has your procurement risk increased over the last year?
• Automate requisition to payment cycle. Streamline PO creation, approval, and issuance as well 8. Are you involved in M&A planning, particularly regarding supplier rationalization
as supplier invoice reconciliation in Accounts Payable. and consolidation?
• Consumer-like buying experience helps employees find what they need and make compliant 9. Are you involved in new product/service introduction or new production modes
purchases by ensuring purchases are directed to contracted suppliers with proper approvals. such as off shoring?
• Utilize mobile devices for self service purchasing and requisition approvals.

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Sales Guide

Oracle Procurement Cloud


Oracle Strengths Oracle Opportunities
• Oracle Procurement Cloud is the only complete SaaS-based Source-to-Settle solution suite. It
• Oracle PSFT, EBS, and JDE customers can take advantage of Oracle Supplier Qualification
spans supplier management, sourcing, contracts, eProcurement and purchasing, and full Management, Sourcing, and Contracts Cloud’s modern capabilities to coexist with their native
integration with AP. Procure-to-Pay functionality.
• Oracle Procurement Cloud is a modern solution featuring many productivity-enhancing digital • Existing Oracle customers who are looking to upgrade their on premises Source-to-Settle
technologies such as embedded social collaboration and analytics, and support for mobile software with a modern cloud-based solution.
devices to enable the modern workforce. • SAP/Ariba customers who are tired of paying high transaction fees on the Ariba Supplier Network.
• The solution features a modern, intuitive user interface and easy navigation for quick user Oracle provides a full source-to-settle Procurement cloud solution with more modern capabilities
adoption and enhanced productivity. It also features a Self Service “eProcurement” solution and doesn’t charge for supplier networking.
that features a consumer-like buying experience to encourage adoption and enforce purchasing • Net new customers both Enterprise and SMB who are either migrating to modernize their on
policies. premises ERP or are investing in a cloud Procurement solution for the first time.
• Customers benefit from continued innovation characteristic of a SaaS service. The frequent
enhancements mean that their business investment will improve over time, as opposed to an
"on premises" or “hosted” deployment mode that requires continual customization to meet
changing business requirements, upgrades and compatibility issues, and a degradation of
investment over time.
• Out of the box integration with Oracle ERP and SCM Cloud.
• Oracle Procurement Cloud has over 1200 customers as of FY 2018. Oracle Threats
• Mature, financially strong company with a strong balance sheet and economic staying power.
• Analyst ratings: Both Gartner and Forrester seem prejudiced against Oracle. Gartner doesn’t rank
Oracle Weaknesses us favorably in their MQ and Spend Matters doesn’t rate us well in the SolutionMap.
• Best of breed vendors Coupa and Ivalua specialize in procurement and are highly rated by
• Oracle is included in the Gartner Magic Quadrant for Procure-to-Pay Suites but less favorably Gartner and Forrester.
than competitors Coupa and SAP (Ariba and Fieldglass). (NOTE: Gartner has a bias towards • SAP/Ariba: Ariba also uses the specialized vendor message, but they are a division of SAP. SAP
standalone P2P suites vs. Oracle’s approach of being a member of a larger suite—namely ERP uses sensational messaging and overstates product capabilities, customer counts and vision. They
and SCM.) also position Ariba as being part of their “next generation” S/4HANA suite when in fact it is a
• Oracle is not a leader in Forrester’s eProcurement wave. Again, Coupa and SAP/Ariba are. completely separate acquired cloud solution.
Forrester has a bias for “specialist” vendors and attractive UXs. With R13, large improvements • Potential acquisition of Coupa by Workday or other tier 2 provider. Should this come to pass,
in our Self Service Procurement UI should erase any “eye candy” advantage, particularly with WDAY would have a more complete ERP offering with robust cloud procurement capabilities.
Coupa.
• The Self Service Procurement UX is often rated as not as modern and intuitive as that of
competitors, namely Coupa. R13 closes much of the usability gap and customers have favorable
impressions of our UX

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Sales Guide

Oracle Procurement Cloud

Addressing Customer Challenges Addressing Competitor FUD


• Need to reduce costs by sourcing more effectively and implementing spending controls. • “Oracle was built using technology from the previous generation. It can’t support today’s
Companies need to negotiate competitive pricing with suppliers, implement them via modern requirements..”
enforceable contracts, and provide employees with an intuitive tool to encourage adoption • Response: It’s just the opposite. Oracle cloud was purpose-built for modern enterprise software
while directing their purchases to authorized suppliers. Approval workflows also ensure requirements. SAP has a collection of acquired products. Coupa and Ivalua are stand-alone
managers review and approve employee requisitions. systems.
• Streamline procurement administrative and transactional processes. Guided authoring, pre- • “Oracle lacks Procurement expertise”
approved language, embedded collaboration, and approvals expedite sourcing document and • Response: Oracle has decades of experience in procurement solutions. PeopleSoft, eBusiness
contract creation. Automate routine transactions such as PO creation, invoice validation, and Suite, and JDE have robust procurement functionality and Oracle Procurement Cloud brings the
renewal notifications. best of those solutions combined with modern digital capabilities to make our solution truly best
in class. Today, we have over 1,000 Procurement Cloud customers.
• Manage supplier risk and streamline supplier management through standardized methodology
• “Oracle is new to the cloud, Oracle is an on premises technology company.”
to qualify suppliers on a variety of areas such as regulatory compliance, financial stability, and
past performance. Utilize collaboration tools to onboard suppliers and electronically • Response: Oracle has the broadest cloud portfolio spanning ERP, SCM, HCM, and CX and is one of
communicate, exchange documents and payment information with them. the fastest growing cloud companies.
• Modernize their enterprise applications with digital capabilities like social, mobile, and
embedded analytics.
Overcoming Objections Competitive Traps to Set
• “Oracle does not have Procurement expertise.” • Coupa claims their organization’s sole focus on procurement is an advantage. However, most
Response: Yes, Oracle is not a specialized Procurement vendor like Coupa. However, Oracle does companies choose an integrated suites that provide a complete source-to-settle solution.
have deep Procurement expertise and the Procurement Cloud offers robust Procurement • Coupa has had significant success, but how do you feel about partnering with a company that is
capabilities, tight integration with Finance in addition to modern capabilities such as the the unprofitable and may need additional capital to survive? Oracle on the other hand is a stable,
Oracle Social Network (OSN) that enables employees to increase collaboration. highly profitable company with vast financial resources.
• Coupa is unprofitable (and never has been)—they lost $44M in CY/FY2018.
• You will rarely have enough room to address all objections, so rank them in order of importance • Coupa has good P2P capabilities but lacks Supplier Management, Contracts and has weak
or frequency asked. sourcing. Is that the kind of vendor you want to depend as your needs grow?
• You can link to any additional resources that provide responses to specific objections, such as • SAP Ariba claims to have an integrated cloud suite, but it’s really comprised of disparate systems
from acquired companies. Do you want to build your cloud landscape around disparate products
any product-specific Overcoming Objections you have prepared. that are not unified?

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Sales Guide

Oracle Procurement Cloud

Growing Mobile Technology Company Leader in Professional Services


• Reduce sourcing costs – standardize and streamline sourcing negotiations and • Manage supplier risk – companies are better able to manage risks by qualifying
contract creation through templates, clause libraries, guided navigation, and and managing suppliers, negotiating enforceable contracts with them, and
authoring. managing them throughout the supplier and contract lifecycle.
• Modernize – enhance collaboration and increase business agility to reduce cycle • Improve communication – receive access to a secure supplier work area that
offers full visibility into transactions and enables electronic invoicing.
times and ensure compliant spend.

Customer Reference
Customer Reference
Customer name: Capgemini
Customer name: Kakao
Industry: Professional Services
Industry: Technology/Mobile Platform Messaging
Challenges:
Challenges:
• Streamline supplier registration operations and piloting in North America, which
• Automate the bidding and sourcing processes for suppliers in various industries,
accounts for 40% of global revenues.
such as music streaming and gaming, and allow the company to quickly find the
right suppliers to support its expanding services. • Reduce time and manual effort to register new suppliers, which involves
spreadsheets sent back and forth via email from approval centers in India and the
• Increase operating efficiency by enabling employees to easily view and share
United States, often taking up to two weeks.
procurement data, anytime, anywhere.
Results:
Results:
• Reduced procurement spend, enhanced visibility, streamlined registration of major
• Reduced time to source suppliers by up to 30% by automating supplier
IT Suppliers through Oracle Procurement Cloud.
processes such as RFP, quotation, and bidding with Oracle Sourcing Cloud.
• Streamlined procurement processes in Latin America by implementing Oracle
• Raised the quality of suppliers by quickly expanding the pool of suppliers with an
Sourcing Cloud, enabling sourcing specialists to conduct end-to-end negotiations
electronic bidding system.
with suppliers, leading to a reduction in sourcing costs.
Customer References:
Customer References:
• “Compared to other solutions, Oracle Sourcing Cloud Service offered faster
deployment and higher system availability “ – Jackie Sung, Kakao Corp. • “We considered alternative strategic sourcing solutions from other vendors, but
Oracle’s out-of-the-box functionality fit our needs perfectly” – Jasper Oskam,
Capgemini

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Sales Guide

Oracle Procurement Cloud

Benchmarks / Technical Evidence GTM Plans Solution BOM


• SpendMatters - Procurement Thought Leadership • Oracle Open World: October 22-25, 2018 • Battle Card: Oracle Procurement Cloud
• Ardent Partners - Supply Management/Procurement • Elevator Pitch: Strategic Procurement (Source-to-
Settle)
• Customer Presentation: Procurement Cloud Overview

Analyst Reports / White Papers Additional Resources Key Contacts


• White Paper: How Strategic is Your Procurement? cloud.oracle.com/procurement Product Marketing:
• Spend Matters: Oracle Leapfrogs Ahead in E- oracle.com/procurement Ana Galindo, Marketing Manager, Cloud Business Group
Procurement
oracle.com/scm Jim D’Addario, Director, Cloud Business Group, SCM
• IDC: MarketScape 2018: Procurement Applications
Procurement Modern Best Practice Rudy Lukez, Director, Cloud Business Group, ERP
Value Navigator Maria Jimenez, VP Competitive Intelligence
CI Dedicated Blog Product Strategy:
Tom Anthony, VP, Procurement Product Strategy
Procurement CI Portal
Business Development and Sales:
Customer Big Book
John Mervis, NAS, Business Development, Procurement
Procurement Customer Stories on oracle.com
Lionel Albert ,EMEA, ERP SCM & MFG Business Solution
PRC Wizards list: fusionprc-scwizards_ww_grp Director

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