e-Procurement system at PFS:

Proposal for successful implementation and effective

maintenance

Contact: Rahul Dev

e: Rdev@infoys.com
m: +…….
 Discussion topics
• Our understanding of the requirement
• What it takes to deliver a program like this
• Are we the right partner
• Critical Success Factors
• Commercials
• Summary
A. Our understanding of the requirement
Changing
Fierce Competition
industry
dynamics
PFS
Leader in the
industry

Impact on Market share

Margin erosion

PFS Initiatives to maintain leadership

Order processing cost $78 => $45
e-Procurement
 B. What it takes to deliver an
important program of this nature?

Deep understanding
of Procurement
Program function
Expertise in
Management Ariba s/w
Skills Package
PFS eProcurement
Implementation
System Insurance
Integration & Industry
Maintenance domain
Consultative
Skills
 Are we the right partner?
i. 25 global customers have trusted us with
management of one or more functions of
their procurement process
ii. We have X number of consultants in this area
iii. Our teams have historically delivered 12%
Deep understanding efficiency gains to the customers beyond
of Procurement contract value
Program function
Expertise in
Management Ariba s/w
Skills Package
PFS eProcurement
Implementation
System Insurance
Integration & Industry
Maintenance domain
Consultative
Skills
 Are we the right partner?

Deep understanding
of Procurement i. 3 implementations have
function been done at customer
Program Expertise in sites who can endorse
Management Ariba s/w the quality of our work
Skills Package ii. We are Platinum partner
PFS eProcurement of Ariba and have access
Implementation to their experts and
System Insurance knowledge base
Integration & Industry
Maintenance domain
Consultative
Skills
 Are we the right partner?

Deep understanding
of Procurement
Program function
Expertise in
Management Ariba s/w
Skills Package
PFS eProcurement
Implementation
System Insurance
Integration & Industry
Maintenance domain
Consultative
Skills i. Most of our projects are custom
developments / implementations. Our teams
have to be consultative in nature.
ii. We are taking this part very seriously and
invested in a senior consultant XYZ. profile:
 Are we the right partner?

Deep understanding
of Procurement
Program function
Expertise in
Management Ariba s/w
Skills Package
PFS eProcurement
Implementation
System Insurance
Integration & Industry
Maintenance domain
Consultative
Skills i. PFS is one of our good customer references for
SI and Maintenance
ii. We have delivered over USD 15Million in
incremental value over and beyond the
contractual terms.
 Value delivered over and beyond contract value

1. Through combination of Global

delivery model and automation:
~ $13 Million

2. Prevention of data corruption:

~ $0.5 Million

Additional value delivered 3. Disability Claims Reserve

over 5 years: reduction: ~ $1.5 Million
Approx. $15 Million
4. Protection of PFS Reputation
• Elimination of late submission
Our contract value @ PFS: of compliance reports
USD 30 Million
 Team profile

HR
Ariba Expert
Experience Profile:

PZ
Insurance domain Expert
Experience Profile:
Program manager

SRK
Program Manager
Experience Profile:
Extensive experience in
handling customers in
Europe and US
 Sponsor

The One&Only
Sponsor of PFS account
“Bored” member…..
Governance structure
Steering committee
Sponsor / BU Sponsor, BU
heads / CIO Head/Director

Management committee
VP / Senior Delivery /
manager Senior Manager

Operational Committees
Project Project
Manager Manager

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 Governance structure
Steering committee • Mapping of
Sponsor / BU Sponsor, BU people from both
heads / CIO Head/Director sides (Supplier
and Customer)
Management committee • Metrics of
VP / Senior Delivery / success to be
manager Senior Manager measured,
reported
• Periodicity of
Operational Committees
meetings
Project Project
Manager Manager • Escalation
mechanisms

14
 Case studies
• Ariba related
• Insurance industry related
• Consulting related
• Large program related
• If there are couple of case studies that address all of the
above, one doesn’t need to include separate case studies for
each
 Critical Success Factors
• Excellent Consultative and Program
Management are important. We have
identified very capable candidates for
these roles.
Consulting 20%
Program
management • Equally important is the operational
team involved at the implementation
Ariba Product 80% level as the bulk of the effort (close
Implementation, to 80% of the total effort) is under
System Integration, this category. Infosys has built this
Design/Programming important capability ground-up and
/Testing our experience shows that it takes
significant time and effort to build a
competent operational team.
 Commercials
• Considerations
– Knowing how critical the success of eProcurement system is for overall
competitive strategy of PFS, “Horses for the Courses” approach to
ensure program success
– Judicious mix of experience and youth contributing to right skill mix
and competitive price
– Existing strong relationship between PFS and Infosys
– Passing on the advantages of Infosys team’s current knowledge of PFS
systems in terms of savings of $120,000 in knowledge transfer due to
sole-sourcing
• Implementation charges: $2,000,000
• Maintenance per YEAR: $400,000
• T&C… (Payment milestone, acceptance criteria, discounts etc)
 Case for Sole Sourcing
• Infosys proposes to move a part of the implementation team
to maintenance ensuring low or no impact to business during
transition

• Tangible savings of $120,000 to PFS related to knowledge

transition effort from implementation to maintenance phase
has already been considered in the commercial section of our
proposal.

• Sole sourcing also minimizes the supplier management costs

significantly and brings accountability.
 Case for Sole Sourcing

Low or No Business Savings of $120,000

Sole Sourcing - related to knowledge
impact during transition
- Infosys proposes to move a Advantages transition effort from
portion of the implementation with Infosys implementation to
team to maintenance maintenance phase

Minimizes supplier management costs

- Quicker decisions and faster time-to-market
 Infosys is the right partner for PFS
• Being a partner of PFS for over 5 years, we intimately understand the
importance of eProcurement system for overall business objectives of PFS
• Solution proposed for this engagement has been carefully designed with
appropriate expertise, skill and financial considerations.
• Our case studies, team profile and offer to arrange reference calls with the
customers is the manifestation of our confidence in our ability to deliver the
program successfully.
• Attention and commitment of continuous investments by our senior
management means that progress of the project will be smoother and
guarantees quicker remedy, if there were to be any temporary bumps in the
road.
• Our ability to deliver considerable economic value over and beyond what is
promised has been evident in our relationship with PFS over 5 years.
• We are delighted about the possibility of being your partner in this
important phase of your journey.
Infosys is the right partner for PFS
5 Years of close Commitment to deliver
relationship Value
We understand the Upfront commitment of
culture and values of experts to the program,
PFA and what is very Reference calls with
important for PFS customers, History of having
delivered ~$15Million in
additional value

Why Infosys
Solution specifically Management
designed for PFS backing
Balancing skills, expertise Guarantees tangible
and economic advantage investments and
Global Delivery Model assurance of moving
capabilities built group up resources when needed
that can not be developed
in short term
Learning
 Learning
• What are the underlying concerns in the mind of the customer?

• What are the gaps in our solution?

• How will we plug these gaps? Will we be convincing enough?

• How can we lend credibility to our claims?

– Senior supplier leaders committing resources in the open forum
– Customer reps endorsing your claims
– Preparing them prior to the meeting

• How do we subtly plant the seeds of doubt about competition?

• How do we want to structure the content?