On the main stage this morning, John Crowther, Vice President and CIO for Diebold, gave a unique perspective into Spend Management at his organization. As background, Diebold jumpstarted its Spend Management initiatives in 2003 only to find that by 2004, their efforts were running out of steam.
What happened? Diebold found that culture, bandwidth, and a lack of tools were preventing them from maximizing the potential of Spend Management programs. To get their efforts back on track, they began to link their Spend Management efforts to a broader set of corporate and IT initiatives. They also developed a partnership with Ariba that, in Crowther’s words, made "their partner put skin in the game". Crowther described this relationship as more than a typical vendor / supplier partnership. In fact, Ariba's chief commercial officer sits on the company's Spend Management oversight committee with Diebold's most senior executives.
How is the new program going? Thanks to close alignment between their executive, technology, and operations teams, and their partner, Ariba, it looks like their Spend Management programs are back on track. While Diebold is only currently addressing 30% of their potential spend, their goal through this reinvigorated Spend Management program is $50 million in net savings -- a significant amount for a $2 billion (revenues) organization.