Download - Zycus ASA Brochure 2008 Web[2]
SAVE WITH EASE
Gain Better Visibility Generate Greater Savings Maximize ROI
with Zycus
better visibility for
Actionable Spend Analysis
greater savings
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Actionable Spend Analysis
It (Zycus Actionable Spend Analysis Solution) quickly finds opportunities, prioritizing them based on immediate impact of
expense reduction or margin improvement, and suggests the possible long-term improvements. This new enhancement provides
procurement visibility and a savings opportunity pipeline. Procurement and sourcing teams will be impressed by the product’s
features and functionality.
The Zycus Actionable Spend Analysis Solution presents
procurement stakeholders a platform to aggregate,
cleanse, classify and enrich cryptic, multilingual spend
and supplier data to build a savings pipeline. This spend
management infrastructure facilitates comprehensive
sourcing performance management and helps to reduce
maverick spend, increase contract compliance,
rationalize suppliers, manage categories, and track
savings. This next generation solution can be quickly
deployed in a SaaS mode to provide a transparent,
automated and repeatable spend analysis solution to
achieve consistent savings, year on year, every year.
Mickey North Rizza,
Research Director, Procurement and Sourcing Practice, AMR Research
n Automated Spend Data and Supplier Classification
n Language agnostic, works even on poor quality data
n UNSPSC or any taxonomy of choice
n Easy to use spend reports that are designed for sourcing professionals
Opportunity Finder with pre-built
savings/compliance identification
techniques
Objective, collaborative and result oriented
process
Prioritize and finalize opportunities through
a pipeline based process
Leverage existing applications through
re-use
Flexible deployment, SaaS or behind
the firewall
Minimal dependance on IT or external
consultants through complete automation
CREATE GLOBAL SPEND VISIBILITY
Actionable Spend
Analysis
GENERATE MORE SAVINGS MAXIMIZE ROI
Spend Analysis today is much more than spend
visibility. According to Aberdeen's Spend Intelligence
Benchmark report 2006, 78% of organizations cite
cost savings as the top driver for Spend Analysis in
their respective companies. How many of them are
actually achieving it? The answer is - very few. Zycus
has taken a radically different approach in designing a
solution that can be easily used by sourcing
professionals without any IT support to classify spend
data and find savings opportunities.
Zycus Actionable Spend Analysis
If you were previously looking at Zycus as just a focused classification and enrichment provider within an integrated spend
visibility deployment, you owe it to yourself to see how far they've come on the analytical and visual side.
Jason Busch,
Spend Matters
Solution Architecture
Data Import/Export
Scheduler
Data ExtractionServices
System agnostic
Schedule based
Multilingual capability
Autoclass
Item Classification
Supplier Classification
Accurate
Consistent
Granular Classification
Actionable Analytics
Opportunity Finder
Pipeline based
Opportunity
Management process
Report Explorer
Objective based analysis
Opportunity management
Detailed spend visibility
AutoClass
By classifying all purchasing transactions at the source, AutoClass should provide significant benefits in terms of increased
data integrity and superior sourcing decisions brought about by increased spend visibility.
Gary Reiner,
Chief Information Officer and Senior Vice President, General Electric
Artificial Intelligence based, multilingual, taxonomy
independent Auto Classification tool that automatically
classifies enterprise-wide spend data originating from
multiple systems into a common coding structure that is
optimal for enterprise needs.
Multiple AI based classification algorithms
Supports all major European and Asian
languages
Very high throughput of more than 300,000
line items per hour
Pre-packaged Java APIs and built-in schedulerTMCertified for SAP NetWeaver
Key Features
Accurate classification of cryptic and multilingual
spend data
Shorter implementation cycle - weeks not months
Integration ready with all major ERPs and data
warehouses
Refresh spend data at the push of a button
Key Benefits$
maximumaccuracymaximumaccuracy
A spend analytics application that moves beyond
conventional slice-n-dice and uses an objective
driven approach for discovery and analysis of savings
opportunities. This intuitive application has been
designed and built ground up to be used by sourcing
professionals without any overt IT support.
identifyopportunities
We are implementing Actionable Analytics 4.0 to help increase work efficiencies, assist in the proper prioritization of
workload/commodity management, and help increase the credibility of the purchasing organization given the proper change
management practices are part of its implementation.
Gary R. Miklos,
Manager, Benchmarking & Compliance, Siemens Power Generation Inc.
Identified Opportunities
Validate
Finalize
Priortize
EffortLow HIGH
SourcingWave 2
Sourcing Wave 1
SourcingWave 3
Savings
High
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Opportunity finder for objective driven savings
discovery
Easy to use intuitive reports interface
Report explorer for fast and easy ad hoc reporting
Opportunity Pipeline Management module
automates process of prioritization, finalization
and management of savings opportunities
Key Features
Spend visibility at your finger tips, no need to
Learn to slice-n-dice spend data
Improve adoption among Commodity Managers
Achieve savings mandates through a transparent,
predictable
Refresh spend data at the push of a button
Key Benefits$
Actionable Analytics
identifyopportunities
“ Zycus' work enabled us to identify savings
opportunities we would not have been able to see
without aggregating across UNSPSC and supplier. In
some areas, it revealed significant spend from core
suppliers, but not in the areas where we had
negotiated deals with them. Finally, in a number of
areas it revealed much larger spend than we realized
we had - across way too many suppliers. All these
things helped us to build a supply management plan
that is enabling us to leverage our spend in the right
areas with the right suppliers.”
Head of Information Management
Fortune 100 CPG Company
A Customer Snapshot
THE CUSTOMER
A Fortune 500 Global Leader in Pharmaceuticals & Biotechnology with revenues of $14+ billion and
geographical spread across 25 countries.
BUSINESS CHALLENGES
n Low visibility into purchase of goods and services using SAP material groups due to inconsistent classification
n Absence of a granular taxonomy such as UNSPSC for better spend reporting
n Increased adoption of spend analysis among Commodity Managers to drive efficiencies and savings
n Visibility and management of spend with diverse suppliers
THE ZYCUS SOLUTION
n Automated, repeatable enterprise spend classification across multiple locations
n SAP groups using UNSPSC as standard taxonomy
n Actionable Analytics for detailed spend reporting and building a pipeline of savings opportunities for
procurement stakeholders
n Detailed and consistent visibility into spend by using automated and repeatable spend management
infrastructure
n Encouraged adoption of Spend Analysis among Commodity Managers for effective decision making and
providing easy-to-use spend reporting environment
n Drive the creation of a pipeline of savings opportunities through effective opportunity identification
and management
$THE BUSINESS BENEFITS FROM ACTIONABLE SPEND ANALYSIS
Recently Aberdeen Group surveyed more than 800 procurement professionals around the globe to understand the impact of
Spend Analysis on cost savings and performance. Results of survey revealed that organizations can additionally save more than
$19 million for every one billion dollar of spend. Key highlights of the business case reported by Aberdeen are:
Spend Analysis Impact - Strategic Sourcing: Spend Analysis Impact - Spend Under Management:
For example, an average procurement organization with $500 million of spend under management would see an
improvement of 34% or an additional $170 million brought under management. Aberdeen research has shown that
enterprises have been able to achieve a 5% to 20% cost savings for each new dollar of spend brought under management.
Business Case: $500 million under management
n 34% increase in spend under management
n 5% (low) savings estimate applied to new spend
$170 million
$8.5 million
$$8.5 million
incremental benefit
MORE THAN 100 COMPANIES
IN 14 COUNTRIES
FIND SAVINGS WITH ZYCUS
MORE THAN 100 COMPANIES
IN 14 COUNTRIES
FIND SAVINGS WITH ZYCUS
Spend Analysis Impact - Strategic Sourcing:
For example, an average procurement organization with $500 million of spend under management would see saving
rates from its strategic sourcing efforts improve by 7.5%.
Business Case: $500 million under management
n 30% addressable spend in any year
n 40% of spend is strategically sourced
n 6.7% savings before Spend Analysis
n 75% incremental savings with Spend Analysis
$150 million
$60 million
$4.02 million
$3 million
$3 million
incremental benefit$
Spend Analysis Impact - Contract Compliance:
For example, an average procurement organization with $500 million spend under management would see contract
compliance rates improve by an average of 33%.
Business Case: $500 million under management
n Compliant spend before Spend Analysis
n Compliant spend after Spend Analysis
n 33% of additional spend brought into compliance
n 10% benefit from contract compliance
$220 million
$295 million
$75 million
$7.5 million
$7.5 million
incremental benefit$
Spend Analysis - A Business Case
Zycus is the world’s leading provider of Spend Management solutions to Global 1000 companies. Zycus' solutions suite,
comprising of eSourcing and Actionable Spend Analysis tools, combine cutting-edge technology and domain expertise to
enable greater user adoption and sustainable savings. Zycus’ solutions facilitate greater process planning, control and
increased corporate alignment of Spend Management initiatives.Innovation & Ease of use is at the core of every Zycus
offering. Zycus’ Spend Management solutions help procurement departments of Global 1000 companies Analyze, Plan
and Source through an intuitive and objective driven process. With proven Spend Management deployments across the
globe with over 100 implementations, Zycus’ solutions have emerged as global favorites. Zycus has over 250 employees
spread across its offices in North America, Europe and Asia Pacific.
About Zycus
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