Empowering Procure-to-Pay Transformation for Operational Excellence

Procure to Pay Project Advisory Committee Meeting February 23, 2018 Last Updated: February 19, 2018

Agenda Procure to Pay Objectives Procure to Pay Transformation Change Management Technology Solution Schedule Early User Acceptance Test, User Acceptance Test Special Interest Groups Call to Action 2

Procure to Pay Objectives Transform the Procure to Pay business processes and the organizations supporting these processes to enable more efficient operations Simplify and enhance the Requisitioner and Approver experience Transition from a paper based transactional PO process to an electronic contract level process View of total spend, enhanced analytical capabilities, Leverage total spend at a category level across all departments to negotiate better pricing Improve key internal controls through electronic routing for approvals Improve departmental budget management 3

PROCURE TO PAY TRANSFORMATION PROCURE TO PAY TRANSFORMATION Transforming from PO Management Transforming from Transactional Transforming from Tactical, one off Transforming from Gut, Guestimate Transforming from Manual, paper based to Electronic and transparent to Contract Management to Consultative to Strategic Thinking to Data, Analytics, Facts Procure to Pay = Efficient Operational Processes Ever Better! 4

Change Management Plan RESULTS Status Quo Zone of Disruption Zone of Adoption Zone of Innovation Change is hard at first, messy in the middle, and gorgeous at the end! Robin Sharma Reality RESULTS Status Quo Zone of Disruption Adoption Zone of Zone of Innovation 5

Results Status Quo Zone of Disruption Adoption Zone of Zone of Innovation Change Management Improved work processes involves change Changes to how we work Changes to how we think Changes to how we interact with suppliers, with customers, with each other Change requires: A different way of leading A different way of thinking A different way of working A different tool set A different skill set Change Requires: Positive Attitude - Promotion - Support 6

PROCURE TO PAY PROCURE TO PAY NON CATALOGUE HIGH HIGH LEVEL TECHNOLOGY STRUCTURE LEVEL TECHNOLOGY STRUCTURE NON CATALOGUE Workday Request Purchase Purchase Requisition Financial Approval Purchase Order Payment 3 Way Match Purchasing Approval Build Shopping Car t Receipt of Goods & Invoice Suppliers Phase 1: Automates existing Business Processes improving efficiency and allowing some enhancements, improves data accessibility 7

PROCURE TO PAY WITH PROCURE TO PAY WITH e eMARKETPLACE FOR CATALOGUE PURCHASES FOR CATALOGUE PURCHASES MARKETPLACE Workday Contract Management Request Purchase Purchase Requisition Financial Approval Purchase Order Payment 3 Way Match Purchasing Approval Receipt of Goods & Invoice Purchase Order Build Shopping Cart Suppliers Receipt of Goods & Invoice eMarketplace Phase 2: Enables more Efficient Operational Processes, improved customer experience and data accessibility 8

Procure to Pay A Level Plan Roll out 1 Roll out 2 Roll out3 User Pilots 1 and 2 Prepare Acceptance Test 1, 2 Activity 2018 2019 2020 Q1 Preparation Purchasing readiness Accounts Payable Readiness Training Development Communications Planning and Creation Design, Develop, and Configure User Engagement Pilots Testing, Pilots Rollout Planning Q1 Q2 January - December Q3 Q4 Q1 Q2 Q3 Q4 January - December February - October Ongoing 2017 - Nov 2018 Feb - May June 11 - Aug 11 First Go Live June 11 Early User Acceptance Testing (EUAT) Activities Workday only User Acceptance Testing (UAT) Activities WKDY & Jaggaer Pilot 1 Pilot 2 Rollout 1 Rollout 2 Rollout 3 These are the Pilot Run dates, does not include preparation or assessment Feb- April Nov- Dec May - July Aug - Sept Oct - Dec Dec- Jan Procure to Pay Transformation two year schedule 1st half 2018 Procurement and AP Readiness, IT Design and Configure, Training build First Go Live June 11, Early User Acceptance Test Workday only, Nov-Dec 2018 Workday/ Jagger Sandwich model June - Dec 2018, continued Procurement and AP readiness, Training, IT Design and Configure Sandwich Model. 2 Pilots Feb July 2019 Rollout in phases Aug Dec 2019 9

Project Phases Early User Acceptance Test (EUAT) Workday for non-catalogued goods and services June July 2018 User Acceptance Test (UAT) Full Solution Adds eMarketplace (Jaggaer) for shopping cart build for catalogue and non-catalogued items Amazon like experience November December 2018 2 Pilots February March 2019, May June 2019 Phased Roll-out: August December 2019 User Pilots 1 and 2 Roll outs 1, 2, 3 Prepare Acceptance Test 1, 2 June Dec 2018 Nov 2017-May 2018 Feb July 2019 August Dec 2019 10

Early User Acceptance Test (EUAT) and User Acceptance Test (UAT) Pilot Criteria High 312 req % of all activity Low SOLO, PMM activity, F4 Consider number of Blanket Orders Consider contracts: goods and services Goods vs Services Considerations Size Cost Center level vs FAO level Who volunteered EUAT, UAT locations Simon School Kerry Coniglio, Computing CC11127-203 Physics and Astronomy Jenny Oliver, Dave Munson (was on design team), CC11072 Clinical Labs EIOH Eastman Institute of Oral Health - Clinical Dentistry CC 11481 Pediatrics (i.e. Admin, General, OPD, Cardiology, Endocrinology, Infectious Disease); Otolaryngology Administration OP137539, Pain Management Sawgrass - Pulmonary UIT Enterprise Applications, UR Tech Store, Inventory Account, CTS,(Lifecycle, Data, Voice) User Acceptance Test Schedule Phase 1 EUAT 6/11-8/11 non catalogue only Phase 2 UAT Nov-Dec 2018 same locations as EUAT adds eMarketplace User Acceptance Test support Paper transactions only Training to coincide with schedule Ongoing support and monitoring, Formal assessment at 60 days After EUAT and UAT continues to use P2P Testing solution, training and support 11

Special Interest Groups Criteria for SIG membership Knowledgeable of procure to pay Forward thinking Advocates for change Willing to help drive transformation Expectations of SIG members Attend and actively participate in Meeting Cadence 3-6 weeks Duration approximatley12 months Support requested: Advocate for Procure to Pay Bring information back to workgroups Gather feedback Share feedback with SIG Leaders 12

Call to action Embrace Procure to Pay as an enabler to improved business processes. Advocate Procure to Pay, Communicate benefits Share concerns with Procure to Pay Leads Feedback on SIG candidates Agreement on Pilot Locations and Communicate to them Confirm commitment with selected pilots Thank you to those who were not selected for the Early User Acceptance Test (EUAT), will consider for a later date 13

Questions? 14

Back up: Communications Training Scope Solution Scope 15

Communications Audience Objective Frequency Executive Steering Committee Status Monthly Project Sponsors Status Weekly Project Team Move Project forward Daily Special Interest Groups General University Feedback and advocacy 3-4 Weeks Status, acceptance Significant events Monthly Financial Website & UR Procurement? Status, Information, Training, Repository 16

Training Workday Jaggaer Solution Roll out based on implementation schedule On Demand training via links, videos, Tips and Tricks Additional training for support organizations as business processes are transformed Procurement Accounts Payable Leadership and Development, Change Management Procurement and Accounts Payable Over 2 year period Organizational Changes 17

Project Scope In Scope Companies/Divisions on Workday Reduce the use of 312 Requisitions (blue requisitions) by requisitioning through Workday Procurement 312 Requisitions for internal purchases? Still TBD eMarketPlace integration (Phase 2) Maintain McKesson inventory management system (Phase 2). Out of Scope URMC and SMH McKesson PMM replacement is not a part of this project Highland Hospital Affiliates 18

Solution Scope Business Process Phase 1 Phase 2 Supplier Contract Development Purchase Requisition Manual Process Attached in Workday Workday Manual Process - Attached in Workday Workday Build Shopping Cart Workday Jaggaer Approval Workday Workday Purchase Order Workday Workday Goods Receipt Workday Workday Invoice Receipt Workday Workday Payment Workday Workday Analytics Workday Workday/Jaggaer 19

PROCURE TO PAY TRANSFORMATION PROCURE TO PAY TRANSFORMATION Procure to Pay - enabling Business Transformation from a technology perspective and that isn t all Creating Better Operational Processes! 20