Presented with

Business Intelligence to Create

Procurement Insight & Opportunity
Amit Jha
Project Leader, Product Management
Oracle EBS Procurement & Contracts
Rick Nguyen
Business Systems Manager
Boeing

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole discretion of Oracle.

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Program Agenda
1

Oracle Spend Classification

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Program Agenda
1

Oracle Spend Classification

How It Works
Business Benefits
New Features and Roadmap

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Oracle Spend Classification

The Solution

1. Extract data from ERP to Procurement and

ERP(s)

2.
3.

Procurement and
Spend Analytics

Spend Analytics
Classify the Spend Data
Rewrite classified data back to Procurement
and Spend Analytics

Spend
Classification
Procurement and
Spend Analytics

Extract
In-line classification

Classify
Approve

Knowledge Base
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Analyze

Oracle Spend Classification

How It Works

Identify
Cleansed Data

Train the
System

Classify
Enhance
PointSystem

Make Manual
Changes (if required)

Approve

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Update Analytics
Data

Program Agenda
1

Oracle Spend Classification

How It Works
Business Benefits
New Features and Roadmap

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Powerful Data Manipulation

Process Data from Any Source

Procurement &
Spend Analytics

ETL & Business Adapters

Other

Purchasing Systems
Pre-built ETL to extract data from hundreds of operational systems
Classifies Requisitions, Purchase Orders, Invoices and other documents
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Support for Multiple Sources

Classify Heterogeneous Data Into a Single Taxonomy

Americas

Standard Taxonomy

APAC
EMEA

Map multiple data sources & taxonomies to one standard

Avoid intrusive changes to source systems

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Predictive Engine
Interpret Data from New Sources and Classify Into Existing Taxonomies
New Sourcing
Program for
Existing Business
Unit

Incorporating
Acquired
Company 1

Incorporating
Acquired
Company 2

Standard Taxonomy

eCl@ss

(e.g. UNSPSC)

Custom
UNSPSC

No
Hierarchy

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Intelligent Learning Engine

Use Manual Corrections and New Spend Patterns to Improve Accuracy

Assisted Mode Identifies Potential Categories for

Ambiguously Classified Spend and Improves Future Results
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Oracle EBS iProcurement In-line Classification

Prevent Misclassification at Source

Works seamlessly with Oracle EBS

iProcurement

Functionality extensible to other e-

procurement applications using Web

services

Easy for Requisitioners to assign correct

category

Improves category-based approval

routings

Reduces Errors and Procurement Cycle

time

Helps to drive Compliance

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Oracle Spend Classification

The Intelligence-Based App that Improves Spend & Performance Visibility
Organize Spend Into Logical
Categories

Automate Expensive Data

Management

Adapts to Changing Spend

Patterns

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Oracle Spend Classification

Some of Our Customers

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Program Agenda
1

Oracle Spend Classification

How It Works
Business Benefits
New Features and Roadmap

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources
Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

16

Oracle Spend Classification

Simplified User Interface
Feature
Simplified, intuitive user interface
Key functions initiated from Dataset entity
Create Knowledge Base
Enrich Knowledge Base
Classify

View Log in context of Entity

Benefits
Improved User Experience
Increased User Productivity

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Oracle Spend Classification

Classify Selective Transactions
Feature
Specify transactions to be classified

Benefits

Better control on transactions to be classified

Manageable Batch Size
Improved Query Performance
Reduced Download Time
Quicker Batch Analysis
Faster Approval and Reset

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Oracle Spend Classification: Current Release and Roadmap

Release 12.2.4
August 2014

Improved User Interface

Custom Classification Batch
Track Progress Updates
Reset Specific Datasets
Export to Excel
Delete Classification Batch

Whats Next
0-12 month planning cycle

OBIA 11.1.1.8.1 Certification

Manage Taxonomy
Enhance Classification Quality

Future Directions
Post 12 month planning cycle

Classify P-Card & Employee

Expense
Integration with i-Expense
Supplier Cleansing
Dataset Wizard
Automate Classification
Increase Weightage to Supplier

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

Restricted to event use only.

19

Program Agenda
1

Oracle Spend Classification

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

20

Program Agenda
1

Oracle Spend Classification

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

21

Shared Services Group

Supplier Management

Spend Analytics
Oracle Open World
September 2014

Copyright 2014 Boeing. All rights reserved.

File location:

Productivity
Driving Productivity to Enable Boeing Competitiveness
Shared Services Group

Productivity
Levers

Service Delivery Optimization

Work Placement
Skills Management
Quality Management & Lean+
Technology / Automation
User Access / Experience
Demand Management
Contract Savings
Asset Management
Overhead Management
Benchmarking

SSG Implications

Service Requests
Major Projects
Hiring / Employment
Facilities / Infrastructure
Compliance / Regulatory

Business Requirements

Production Rates
Program Changes
Repositioning
International Expansion
Mergers & Acquisitions

Copyright 2014 Boeing. All rights reserved.

Cost
Drivers

Deliver
Year-Over-Year Quality, Cost
and Productivity
Improvements

28

Global Service Delivery

109 Services Supporting the Boeing Enterprise
Shared Services Group

Site Services
Site Services

Enterprise Services

Planning and Real Estate

Services

Creative Media

Project Implementation
Services

Print, Plot and Scan

Maintenance Services
Transportation Services
Environmental and Utilities
Services
Surplus and Reclamation
Services

Finance and Business

Enterprise Payment Services
Payroll Services
Corporate Credit Office Services
International Finance
Services (Payment,
Assignee Tax, & Payroll)
Travel and Expense Services
Cost Assurance
Enterprise Benefits Accounting
Property Accounting
Copyright 2014 Boeing. All rights reserved.

Technical Media
Information and Content
Services
Freight Transportation
Frequency Management
Services
Employee Services

Supplier Management
Non-Production Supplier Management and Supplier
Quality, such as:
IT
Professional Services
Contingent Labor
Travel
Site Services
Manufacturing Support
Freight and Logistics
Benefits Administration

Security and Fire Protection

Security and Fire
Compliance Services
Government and BCA
Security
Business Continuity
Supply Chain / Aviation
Security
Emergency Preparedness
and Response
Site Security and Fire Services

International Business Support

Operations Management and
Compliance
Business Partner Compliance and
Support
In-Country Human Resources and
Travel Support

29

Spend Analytics Overview

Shared Services Group | Supplier Management

Collection: Bringing invoice line-item data from approximately seven P2P systems into a single
data warehouse
Classification: Categorizing data against a Boeing-customized two-level category hierarchy
Reporting: Presenting categorized data in a web-based reporting tool featuring pre-configured
reports, charts, graphs, filtering and export capabilities
Enables build of multi-year sourcing strategies and to monitor compliance with quarterly data updates
Enables value-add analysis, fraud analysis, supplier diversity reporting and other ad-hoc report requests

Copyright 2014 Boeing. All rights reserved.

30

Spend Analytics - Overview

Shared Services Group | Supplier Management

P2PSystems
PCOS - BCA

NWP - BDS

PCard

Travel

Ecova - Utilities

IronData Freight

SSPN

Oracle BI Data Warehouse

OBIEE Dashboards
Formatted charts, graphs, tables, filtering,
trend reports, etc.

Seven Systems

Spend classification engine

Categorizes each transaction based on a
defined Boeing category taxonomy

Copyright 2014 Boeing. All rights reserved.

Oracle ANSWERS
Enables custom querying and report
creation (will be extended to BI team and
power users TBD)
31

Spend Analytics Improvement over past systems

Shared Services Group | Supplier Management

Data availability: from ad-hoc to quarterly

Scope: from summary (i.e. spend by supplier) to line-item detail
Completeness: from fragmented/local to enterprise-wide
Functionality: from static Excel-based to on-demand and web-based
Categorization: from manual to automated
Accuracy: from low/unproven to high/continually monitored
Process: from labor-intensive to automated

Copyright 2014 Boeing. All rights reserved.

32

Spend Analytics How the data is now being used

Shared Services Group | Supplier Management

Currently a small core of highly skilled data and strategy analysts (Business Intelligence
Team)
Once aware of the capability, users have brought forth additional ideas on how to leverage the
capability
The process of building training sets, running classification and validating accuracy has led to
requests from other business units within Boeing
Potential of becoming a profit center, performing taxonomy development, training set,
classification and validating the accuracy.

Copyright 2014 Boeing. All rights reserved.

33

Spend Analytics - Current

Shared Services Group | Supplier Management

Operating rhythm - sustaining

Receive or chase expected data files (Supplier Management)
Monthly or quarterly
Validate data files per existing data maps (Information Technology)
Load data files (Information Technology)
Update training sets (Supplier Management)
Run classification (Supplier Management)
Validate classification and fix errors (Supplier Management)
Publish updates (Supplier Management)

One labor head in Supplier Management (sustaining, contractor)

Four labor heads in Information Technology (two sustaining and two development)

Copyright 2014 Boeing. All rights reserved.

34

Spend Analytics Development (future)

Shared Services Group | Supplier Management

Repackage visibility dashboards for Procurement Managers and for leaders

Transition MRO BPA Utilization visibility Dashboards

Seven commodities to date, more on horizon

Quarterly updates
Requires changes to category taxonomy
Requires additional database attribute

Copyright 2014 Boeing. All rights reserved.

35

Spend Analytics Lessons Learned

Shared Services Group | Supplier Management

Plan, plan and plan again!

Dont underestimate the effort to build a custom taxonomy
Socializing both the taxonomy and the benefits of classification is a time-consuming task
Requisitioners outside of procurement add substantial time and further communication
Sync your taxonomy with your finance and tax departments. This can avoid or eliminate taxonomy
rework, and reclassifying the data

Build and enforce a robust taxonomy change management process!

Socialize the impact of taxonomy changes.
Perform cost benefit analysis upfront and use as part of the decision process

Look for residual benefits! Although we adopted this tool for category management, we found
it to be valuable for compliance monitoring, fraud analysis, and business continuity monitoring

Copyright 2014 Boeing. All rights reserved.

36

Spend Analytics Lessons Learned Cont.

Shared Services Group | Supplier Management

Multiple data sources

Understand the input data
Identify data source subject-matter expert
Mapping of the data will require comprehensive analysis

Customization is require to identify the source system

Running data classification on select data source
Currently implementing

Manual analysis
Spend analytics requires substantial analysis work to update the training set and knowledge
base
Multiple data sources increases training set work

Copyright 2014 Boeing. All rights reserved.

37

Copyright 2014 Boeing. All rights reserved.

Program Agenda
1

Oracle Spend Classification

Demo Value Add by Spend Classification

Case Study Boeing

Additional Resources

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

39

Additional Resources
Oracle Support Notes
948082.1 Latest Roll Up Patch, Certification Matrix, Installation Instructions
1450275.1 Spend Classification Process Guide
1672861.1 Best Practices for Creating a Spend Classification Knowledge Base

Oracle University Transfer of Information

Implement and Use Oracle Spend Classification (L2)
Support and Troubleshoot Oracle Spend Classification (L3)

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40

Questions & Answers

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41

Copyright 2014, Oracle and/or its affiliates. All rights reserved. |

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