all right so hi there everyone Welcome to our session today I'm Todd zamb brovitz I'll be your facilitator today um and we're going to share with you a little bit of information about how you can multiply the value of your service now platform with our new source to pay uh workflow solution and we just introduced this new area to our workflow portfolio this past year and our speakers today will be Raa Risa Davis who's uh one of our senior outbound product managers and Mark Leets who's the director of products and solution marketing for this part of our portfolio and we're going to put them to work in just a few minutes but first here's a little word from our sponsor a little suggestion from our legal team now we may offer some forward-looking details which are provided to you for just information purposes only these details are obviously ly subject to change and should not be relied upon in making purchasing decisions and now that we've gone through this I think it's safe for us to proceed all right little housekeeping if you have questions as we go you can enter them uh using the Q&A button at the bottom of your screen and we'll cover as many of those questions at the end uh of our session as time allows we're also recording this session and that will be uh shared on the ser now Community after and at the end of the event we'll invite you to take a short survey so that you can uh tell us how we did all right as far as agenda so what Ree and Mark are going to take us through today is we we're just gonna um uh take a quick level set look at some of the basics around kind of these source to pay processes a lot of people uh don't really know fundamentally what goes on behind the black curtain of procurement and Supply Chain management and all of the the things that happen around the office of the the CFO and so we're going to kind of Orient you to some of those things what some of the challenges are those teams come across and how we're building solutions to kind of help accommodate those those challenges and then you'll be introduced briefly to the source to pay solution itself and um we'll close up by sharing some examples of what outcomes can actually be achieved by your procurement teams uh by going this route and so let's start before we get going here with just a little information about you guys and so uh we have a quick poll question that's asking sorry that c in my way um so where do you have planned or in progress initiatives targeting transformation and so is it in procurement supplier management Finance or none of the above and give that a minute to paint out like procurement supply chain and maybe some other functions not noted here all right thanks for that okay and finally all right it is now my pleasure to introduce you all to Risa Davis who will start us off today by talking again about a little oneone intro on what source to pay is and and how this opportunity uh can help Drive value on the service now platform and just so you know Risa just got back from vacation in Italy so if she breaks out into some Italian we're going to try to rush to get the subtitles in there for you as quick as we we can so uh Risha you want to uh take over the controls and take us through the first segment you can see my screen everything's good looks good okay thanks Mark okay so yes I am just back from vacation but really excited to be here today and just walk you through maybe again starting off with just the basics of source to pay operations so first it's just good to have a level set understanding of what we mean when we say source to pay so source to pay is really a core business process just like order to Cash record to report source to pay um some may call it source to settle you know but source to pay is just it exists really in every business and it really is the process that is from identifying you know finding the goods that you or Services you need to purchase qualifying the suppliers that you're going to purchase from putting a contract in place if a contract is needed and then raising requisitions the employees raise requisitions to get the approval to buy those goods or services that then generates a purchase order a purchase order is shared with a supplier so that they is now offer an acceptance that the legal agreement between um the buying company and the supplier then they ship the goods we receive the goods or acknowledge the services have been completed we receive an invoice from the supplier we match that invoice to the purchase order resolve any exceptions if there's any mismatch once it's matched then we pay the supplier and that end to end process is what we refer to by um source to pay so you can see there are a lot of steps there's a lot of different teams involved in that process so what are the challenges with that process I said it's basically in every organization so what are what are the challenges um behind that this slide says New Times New Challenges I say New Times same challenges just everything all at once so the world we live in today the challenges for procurement are that they have um attention and visibility on literally everything they're doing every good every service they're buying what the risk is they're being pushed to you know meet Global Supply pressures um reach ESG goals there's you know doing more with less um there's just everything all at once these are the same challenges if you talk to your procurement team they wouldn't say anything's new here but they would say that they're really dealing with them all at once what hinders procurement in having the time really to address that is that most people people don't understand they don't get to spend 100% of their time on that source to pay business process right we did a Time study with some of our customers and internal at service now and we learned that about half a little bit more of half of their time is actually spent on uh processing those requests for goods and services and a little bit less than half of that time is dealing with all of the other requests that go along with it you know where is my stock I got this it's broken um you know this supplier needs to be on boarded this supplier didn't meet the risk assessment we need an NDA we can't pay the supplier the supplier is asking where his payment is all of those type of things all of those type of unstructured requests come to procurement and they come to them in emails and phone calls and team messages and it's a lot for procurement and it's hard to automate that unstructured work and so procurement really doesn't have 100% of their time time to devote to what they wish they did have and so what they want to be spending their time on is uh reducing Rogue spend which then results in an increase in managed spend so we're going to talk about that next but that's really understanding you know procurements time really isn't being used effectively and we'll come back to this when when we talk about what service now is bringing to the market and how we're trying to um solve for that problem so why does procurement or why do any of us care about manage spend I me I mentioned you know we want to increase manage spend and decrease Rogue spend so Rogue spend is when somebody doesn't understand how procurement works and they just run down and buy something and expense it or they go on their own to A supplier and work out a deal and then when it comes time for the supplier to get paid they come back to procurement and they say oh I've got this invoice I need to get it paid they didn't follow that end to end process so when we don't follow if when we don't have our spend managed well that's when we have higher costs we have greater risk because we're not dealing with approved vendors and we lose the visibility that we need to as far as what our commitments are for goods and services and what we're actually buying and from whom so this is a core responsibility of procurement but more than that it really has a bottom line impact and this is this is another kind of key takeaway for you this is a general rule of thumb so for every dollar of unmanage spend that we can convert to manage spend you can save approximately 10 cents so if you think about how we can contribute to the bottom line we can either grow sales or we can reduce expenses right th th those are the two ways so in procurement we're focused on you know cutting down on our cost and what we're spending so if we convert to manage spend and we save that 10 cents that really does matter so if we look at an example to kind of highlight how much that can matter we have two customer examples here one with is in retail where they've got a very large $2.5 billion uh spend right in indirect procurement and then we have a high-tech company $750 million so if we look at just that general rule of thumb of converting to 10% and that's usually looked at for like the first year is 10% and then years after it drops down to you know two to 3% somewhere in there that's the general rule of thumb but if we're converting that look at the numbers over to the right in the green and see what that savings can really contribute back to the bottom line even on our smaller example of the high-tech 750 million if we can convert that unmanaged spend with just a 10% savings which again that's an average some of them will be be much higher some of them will be less that's a $7.5 million savings that's why this matters so much to the business Beyond just procurement and the business is overall health and success so service now um you're all familiar with us service now looking at our platform uh we had customers that were building out procurement Solutions with our platform because we didn't have that in the market yet but we heard from our customers hey we' really you know this is what we've done we'd really uh think this would be a great opportunity we looked at it and now the next group here I want to talk the next section I want to talk about how service now with source to pay workflows is actually trying to address the challenges that we just discussed so first uh we are source to pay operations is actually made up of three products s sourcing and procurement operations supplier life cycle operations and accounts payable operations so if you can remember back to I think the first or second slide where I showed you that endtoend source to pay process these three products really deal with that end to end from the first bit of an employee raising a request uh through procurement sourcing that request to the supplier and supplier managers fulfilling that request all the way through to accounts payable um settling matching and settling that payment for the goods or services so those are the three products that make up source to pay operations and we're part of the fifth workflow that has been introduced at service now and that is finance and supply chain workflows so um source to pay operation fits in its own workflow at service now and that is finance and supply chain workflow so so those are the products but what are the products actually solving we talked about the process but how are we solving this in a way that is really going to address those key challenges I mentioned in the beginning so first and foremost in procurement and and I would argue really in any key business process there are a lot of disconnected systems that's certainly true and source to pay when I walked through all those different components those are typically many different teams using these different tools so some have been inherited some have been you know through acquisition mergers Etc some have been put into place new but you end up with many different systems that have to connect to get that endtoend source to pay process and right now these disconnected systems are really what's causing a loss of that productivity that I mentioned earlier also because we have procurement people as well as employers as as well as supplier managers Risk Managers all going to different systems trying to get information and when they can't get the information they need that's when they go back to procurement and ask these questions right these were the questions when I went to that time stady I mentioned why procurement can't spend all their time on the really important stuff that's because they are getting asked like these type of questions and having to run these down because this is super important to an employee or a supplier's experience and whether or not they use the system and adopt it or if they don't and if they don't feel like they're being supported or that they're that they understand what's happening with their requests they're more likely to go around it and that's when we have that problem of spend under management so those disconnected systems really tie back to that spend under management problem so how do we solve for that and what are we bringing to the market here so we are we believe based on you know discussions with our customers and what service now our kind of core DNA is we will bring a single engagement layer or automation layer to this source to pay experience that's first and foremost what source to pay operations is bringing to the market so if you think about the top row here regardless of who the individual is that's having to interact with a source to pay process uh and regardless from what system of record or core transactional systems you may have in place which is on the bottom part of the screen we want to automate and we do automate that process end to end so all of these systems at the bottom of the page the Koopas the saps oracles they all have individual workflows so it's not that they don't have workflow most of them actually it's approval workflow but they have workflow just within themselves what what we're really solving for here is we we want an endtoend workflow across any system of record any transactional system and that's what we mean by automation layer that's what we're delivering so regardless of what system it's happening in we have full visibility to through Integrations with those core systems and we are just layering on this automation layer and why that's also important uh is you're not having to rip and replace any of those other systems so so a lot of folks will tell you and I worked for one of these companies at the bottom who shall remain nameless for a long time great company great system but our solution had was to you know replace and put in one single system and that's just not really feasible so service now and why I came here um is because we really have this single experience and automation layer across the end to end flow so first and foremost that's what we're doing so again just very succinctly put here source to pay operations is that workflow automation Solution that's bringing together everyone involved in that very complicated process of source to pay for goods and services in a single work experience and that's something that is really um of interest to everyone everyone is looking to solve that um as simply and as easily as they can and it's the same you know challenge that we've been solving in other areas of the business for a long time we're just now doing it for source to pay so if we take another just a quick look here at again the three products if we think about use cases we think about sourcing and procurement operations that's really about the employee experience and how they interact with procurement and all the different work teams so I don't have to know everything that's going on behind the curtain I just have to have full visibility to my request where it is and when am I going to get it right right that's what's going on in the first sourcing and procurement operations supplier life cycle operations is around the supplier experience and how we interact with suppliers and there's a very high cost to managing suppliers especially when they have questions and we're doing that through phone calls and emails and spreadsheets Etc so when we look at managing that through collaboration portals or collecting information about supplier and maintaining their supplier M data as we also do through our supplier Knowledge Management that those kind of um benefits are really around how we interact with a supplier from onboarding the supplier through any type of work that they need to request they can actually request it just like an employee does so that's the second and then the third one is Accounts Payable operations and I mentioned that when we get those invoices from the supplier this is part of the product then we have to go through a matching process and if it does doesn't match so let's say a quantity is off or a price is off it will cause an exception and that exception is typically handled very manually that can delay payment we can miss payment discounts um it can cause friction with your suppliers there there's a whole bunch of problems that happen if that process isn't really um handled smoothly so that's something that we handle as well managing those exceptions and then processing an okay to P file and pushing it back to the system of record or the Erp for payment so those are the three components we sell them as a solution source to pay operations because we really want to solve for all of source to pay operations but we can see customers you know sometimes want to Target all at once sometimes they want to start in one area and then expand so we're modular and how that's done but it is a complete uh source to pay solution I mentioned earlier uh that we're part of finance and supply chain workflows same great things that service now has been doing for all of the other um areas in the company unifying people processes and data that's what we continue to do the same platform that you're all familiar with it's a same platform we're uh built on and leveraging in our Solutions every day uh and enhancing every day we still we use integration Hub as well uh to integrate with all those systems of record um below I've talked a lot about source to pay and source to pay is a key business process but there's also other um critical operations that depend on source to pay and you can see them listed here whether it's Enterprise Asset Management um project and portfolio management risk all of those tie into source to pay um so we have uh many package workflows solutions that all work together and are part of finance and supp supply chain workflows so the big this is my last slide and I'll be handing it back to Todd but um the big takeaway here I hope that you that you got out of this is um you know what source to pay is uh what are the challenges how is service now solving for them and what are the benefits and the last the last bit I will leave you with is and this is really important service now is really designed for Action we are being that automation layer we're improving the experience getting more spend under management that's what we're doing and we are layering over those transactional systems of record and we're not looking to rip and replace we're looking to coexist with those systems so they're two distinct software Cate categories but they are complimentary and that is I think a lot of times people when they hear source to pay they think we're another source to pay solution and it would be really great if everyone come came away understanding that we're a source to pay operations solution so we work with whatever source to pay transactional systems you have to automate and really unify that end to end business process and that's all I have all right thank you Rea that was really great so I mean everyone I think gets the track right we're we're kind of uh those of you in the audience that are kind of quote unquote platform owners you own and operate the value Journey for the service now platform for your respective organizations so uh this is just you know us kind of continuing to layer on those value propositions and give you that much more ability to do the things you've already been doing successfully on the platform and just expand the scope of of those things so before we uh move on and talk to Mark I thought we'd stop real quick because we were talking about transactional systems of record uh let's take a quick uh read from you folks on what do you have in your environements currently what transactional systems of record do you currently operate would it be something like a reeba Koopa or one of the Erp Suites from sap or Oracle and and it's calculating looks like sap p RP is going to win give it just one more minute okay sap all right and with that let get that out of the way and now let's move to our final segment and bring Mark Leets up to talk about what are some of the outcomes that uh your procurement and Supply teams teams can look forward to uh when they're addressing some of the things that reysa just shared so Mark the stage is yours great thanks Todd let me pop this open I think Rea did a a great job walking through you know what is source to pay operations what are the the component products how do we build it how do we deliver it I'd like to take you through a few ex few outcomes kind of bring to life a few of the things both Todd and Risa have mentioned over the last uh little while here over the last half hour and I want to do that through the context of some process examples and show off the product a little bit so the first uh the first one I want to look at is doubling the number of requests handled by your source to pay team I think Rea nailed this one right at the beginning when we went and did our our user research we realized just how much time procurement teams spend managing status requests managing the the low value type requests of the how do I or where is you know these are are very high volume requests but ultimately at the end of the day they don't add a lot of value so we deflect those we provide a lot of self-service tools we make it really easy to use um and all of those add up to cutting down on those requests second we automate manual tasks and then we provide one focused workspace let me illustrate that with an example here so managing A supplier issue right something comes up in this case it's going to be you know a finance employee recognizes that we have out-of-date Bank information this ultimately is what you are very familiar with it's a case with a workflow attached to it so the supp the employee opens up a case and we're going to walk through how that works back and forth just applying case management and workflows to the you know supplier issues um example all right as with so much we're going to start with employee Center you all know this uh one place to go to start the the majority of your employee uh needs so whether you can see here in the screenshot you're buying something you're canceling something you have an issue something comes up this is one nice easy to access way onto the platform and into the system so as a finance professional I raise this case I open it I note that we need new bank account information from A supplier I'm trying to pay them we want to pay them but uh the the information that I have is out of dat that case then uh gets pushed through workflow brings it to a procurement professional somebody who owns the relationship with that supplier in this case you know updated banking information is a pretty straightforward request but it's also one that we want to handle carefully because banking information of course um is not something that you want to spread around and we want to make sure that we get it right so um working through the system all of the data is captured within the case you'll see that we have playbooks on the left in this case very simple it's very easy we ask for the update these tasks are created automatically or can be created automatically and we shoot a note to the supplier right the supplier then gets a notice within the supplier portal the supplier portal is one place to go to manage and understand the interaction between me as a supplier and the company that I'm working with of course we also recognize that not every supplier wants to enter a lot of portals we have an omni Channel approach of course we can ingest and work through email and through a variety of other ways um as well I think rysa hit on some of those during the intro so um I see as the supplier quick request to update my banking record I provide that information that corrective action happens as a procurement professional I can take a look at it I can verify that we have what we need I can verify that the information you know checks out and then of course close this case and that triggers a resolution note to finance so that Finance can make the updates within their systems and Trigger payment again it's it's case management and workflows applied to the procurement and finance space the second part I want to show is volume based discounting opportunities and this really comes down to making it easier for requesters employees who have purchasing needs to follow the process Rea spent a lot of time talking about what is spend under management or managed spend and why it matters that all drives back to volume discounting opportunities so if we can help companies consolidate spend with vetted suppliers and centralize all of that data so that procurement professionals have more insight they have more negotiating power they can unlock those higher tiers of volume based discounts they can work with selected vendors selected suppliers to ensure that they're getting the best possible terms whether that's price payment delivery there are a whole variety of different measures that can be adjusted and that can be improved based on the amount of spend that you have and the relationships that you can drive forward so this is everyday employee buying I would Hazard to bet it's what everybody on this call does when they purchase something certainly I do it as an employee here at service now I know Todd does and I know does as well so I'm an employee I'm going to go through and I'm going to request goods or services in this case goods and I'm going to do it out of a catalog based buying experience again this is the fundamental day today and we want to show that it makes it we're making it very easy to follow the process we make it very easy to find what goods are needed um and to get all of that done and of course including things like a approval workflows um double-checking you know having that manual review because in this case we're going to trigger you know trigger that review but of course it's all configurable so uh this is me playing me I have I enter as the an employee into employee Center and I'm going to use chat to get to uh to get to what I need and this case it's a it's a bunch of Yeti microphones um as giveaways for an event right I'm going to a marketing or a sales event I want to give away something um you know little bit bigger ticket item so I need a whole lot of these there's the one that I want you know chat has returned a series of options these all come from the catalog so we know that it's catalog based buying these are reviewed they are vetted suppliers these are Goods um or you know if you're searching for services of course and it's something that could could be a catalog based service um you know goods and services that are vetted they're ready to go we know and can trust these vendors so I'm going to select that Yeti microphone I want a bunch of them chat's going to to recognize and and F and fill in the information necessary as it has asked me over the course of of creating this request I select the item and that triggers an approval work flow to my boss right he's on his cell phone um gets the gets the request gets the uh notification Clicks in he can review or reject approve or reject right here after reviewing he remembers hey this is you know this is something Mark asked and talked about yesterday during our one-on-one let me go ahead and approve it and then this case moves through to the procurement professional each of these purchase requests the PRS um can be prioritized can be Consolidated into a variety of to-dos the open tasks that you see right here as a procurement professional I know and can focus on the most important ones that can be configured you know by item category by total purchase price by quantity there a variety of different ways that we can configure this but as a procurement professional I have one place to go to do this work I don't need to go in and out out of email in and out of um a procurement system in and out of an an Erp system just as you know some examples I can click into that purchase request I review it I see that I have all the information that I need including the fact that you know the boss has already approved it and right here from service now I can create a purchase order that purchase order gets created in the Erp system and transmitted to the supplier now as a supplier I have my PO um I can deliver against that PO and the case is closed that request has been fulfilled the next example is Raising supplier quality with embedded ESG and risk so one of the things that we can do that really sets us apart it's a fundamental it's like you know sort of a core value of service now it's connecting with a variety of systems across a variety of different teams I imagine all of you recognize and understand how many different systems how many different data sources how many different processes people teams Etc go into fulfilling one endtoend process that's the same across it across employee across customer and of course now across finance and supply chain workflows so we can help support new business processes we can help you turn that unstructured work all of those emails back and forth the tracking spreadsheets all of that into digital workflows and it speeds time to Value we provide those guided experiences so if you're not familiar with a particular system if you're not familiar with the you know the standard approved process maybe you're a new employee we help you through that with that in context experience and guidance and of course all of this provides a lower TCO one place where ESG and risk come in when we're buying items that need sourcing this could be an item or in in this case I'm going to show a service request so as the employee again employee Center hopefully you're starting to notice a little bit of a trend here uh I go in just like I would for those Yeti microphones except that I say that I need a service in this case um it is to design a a new booth for an event right this could be any sort of trade Show event um could be a marketing event uh Sales Event but I need I need a new new conference Booth I can begin a qualification series and all of the work that goes into searching for Contracting with vetting onboarding that supplier all attached to this case and we can provide you know the workflows that ensure that we meet all of those different needs Finance legal ESG maybe a risk team there are a whole variety of different teams that need to be involved that have their own processes as part of the broader source to pay process and we want to make sure that we handle all of that efficiently and effectively minimizing email minimizing tracking spreadsheets so that people can get the work done that they need to get done it's all about making work easier for everybody so in this case we can create you know a financial review we can create a procurement legal NDA review we can do all of the supplier onboarding work right understanding legal entity information addresses contact in contact UM information bank accounts like we talked about earlier all of that stuff goes into the onboarding right and then of course there's supplier risk assessment whether that's from a finance perspective uh Financial perspective do they have the wherewithal are they you know a stable source of goods and services or maybe there's a geopolitical uh element to your risk assessment however you need to incorporate that risk we're happy to help you through that and we can configure to do it for to do that and incorporate it into a broader process uh you'll notice here quickly Risa is one of our contract specialist she's you know Moonlighting here uh to help the workflow will be assigned to her she will have tasks associated with this case again all common functionality things that you are used to from from the platform just applied to this new context so with those uh checks with those you know process subprocesses and tasks complete registration for the supplier onboarding and qualification can happen I as a supplier could go into the portal and provide information again I could provide it via email as well there are different ways that we can collect and interact collect information and interact between the supplier um and the procurement team to make sure that we have everything covered off and of course you know we can configure and reconfigure those workflows reconfigure the processes all without custom code this is a tremendous change relative to the Legacy environments that so many companies are used to man managing all right ultimately it all comes back to creating a better experience for everyone right employees that are trying to request Goods procurement professionals or Finance professionals that are trying to process requests process invoices do their day-to-day job and of course the suppliers that you want to build Better Business relationships with it's a single ux across the entire workflow regardless of that underlying system of record so it's easier to use it's easier for people to onboard um and whether that's you know as a new employee or as just a an infrequent user of a system it decreases the overall source to pay time because we're eliminating manual tasks we're making it easier uh for employees to do their work to request goods and services to issue POS and of course shortening supplier onboarding time coordinating orchestrating all of the manual effort e that goes into these processes all right let me close out here with some suggested next steps and then I think we'll turn it over to Todd to open Q&A so I'd encourage everyone here go to servicenow.com FSC this is the landing page for our new finance and supply chain workflows category we are building that out as as I speak lots of information going in there explore the demos on demo now um you'll see probably a few that I just shared here but also a lot more in depth of course we would love to give you a live um in-depth demo you can request that been more than happy to do it talk to your account team they'll be more than happy to talk to you about source to pay operations and of course if you still have questions by all means reach out to myself um and I'll I'll add Todd and Risa to that list as well we're more than happy to to answer questions and get you pointed in the right direction so Todd with that let me hand it back over to you uh just real quick the today's session is obviously I think most of you attend these on a regular basis but this is a part of our uh curated service service live on service now and so this these are just conversations to help you get the value faster on the platform right and so you can see the entire schedule events by scanning the QR code here or you can use the link in the chat and also we didn't go through this and when you get the uh the deck when it's posted on community these are links to resources that you can access so you can have additional uh access to some information there and there was one more question Todd I just wanted to answer really quick I'm sorry recorder uh in the recording I'm answering it I'm typing as fast as I can uh but somebody asked are the supp suppliers are they being charged for accessing the portal no they are not suppliers are not part of our licensing model your uh your subscription um covers uh the suppliers okay uh one more question I if you can cover this in time maybe real quick uh I'd like to know more about import procurement workflow about more about procurement import procurement workflow since there would be multiple contracts yeah that that's a little confusing for me as well rul and I were talking back and forth so what I how I responded in the past was we deliver many out of the box workflows and continue to develop more we released two in November we are uh we believe that's faster time to value for our customers if we can deliver more out of the box workflows we also recognize we are not going to deliver every workflow our customer needs so you can use standard platform tools like process automation designer to duplicate that workflow and make modifications so the example you gave earlier rul was inco terms if you needed to do that um obviously there's additional things that have to happen around inco to a standard purchase order you could just duplicate that in process automation designer and then change it um I'm not aware I can certainly follow up and see if there is a way to import um those processes but but I'm not aware of that out of the box okay that's it for our time today uh I'd like to thank our speakers Risa Davis and Mark Leets as well as all of you for your time and attention um we hope you found this session useful and that you can now help your your own procurement and supply chain teams to hopefully create a better way to work with service now thanks everybody and we'll see you next time