Transcript of "Ariba Knowledge Nugget: What is the Ariba Commerce Cloud"
Ariba KnowledgeNuggets What is the Ariba Commerce Cloud?Businesses have spent billions streamlining their internal operations. Yet few tackle the inefficiencies involved indealings between companies. Thats where paper-based processes and outdated infrastructures lead to lost revenueand productivity.The Ariba Commerce Cloud is a unique web-based platform, it contains everything businesses need to buy, sell andmanage cash more efficiently and effectively than ever before.• Technology: Market-leading applications for spend management, collaborative finance management, and sales acceleration management.• Community: The Ariba Network, the worlds largest Web-based trading community, where more than 300,000 global businesses to discover, connect, and collaborate. And Ariba Exchange, the industry-leading customer community for networking, sharing best practices, and collaborating with partners and peers.• Capabilities: Market, category, technical, strategic and other expert capabilities that can be accessed on-site or via the Web to support ever-changing business needs. The beauty of the Commerce Cloud is that all companies engage daily with the 3 basic concepts — Buy, Sell and Manage.BUY —Buying can be tricky business. Your success depends on always buying at the lowest possible cost, with theleast possible risk. Far easier said than done, isnt it, considering that it takes: • Thorough spend analysis and visibility • Comprehensive category and commodity knowledge • A wide base of qualified suppliers – for both goods and services • The means to find the right supplier quickly, and manage them effectively • Automated savings negotiation and tracking • Tools to create, execute, and manage contracts without delay • And, probably the trickiest thing of all, system-wide compliance Until now, cost-effectively covering all these basesAriba Solutions for Buyers: has been a pipe dream. But no longer.• Spend Analysis• Sourcing So, take some time to explore those solutions from Ariba that you• Contract Management do not have yet. Then contact your Account Executive or me to• Procurement find out more. Because over the next 24 hours, businesses buying• Supplier Management through the Ariba Commerce Cloud will save over $60 million. And I’m pretty sure you want a piece of that.
Best Practice Tip for Spend Visibility —- User AdoptionIt is important to remember that loading and enriching the data is just the first part of enabling a spend analysis tool. Inmany cases this is a new platform for end users, and all of the work completed in the initial phases will be worth nothingif end-users do not take advantage of the tool. While many users are able to run reports in the tool, they may be missinguseful features and efficiencies of the tool without training.Below are steps taken by customers that I consider best-in-class from a user-adoption standpoint.• Power-users should be assigned, ideally one per location. These users can then provide on-site training and supportfor the rest of the user base at that location. They can also assist in designing and building useful reports anddashboards that are relevant to their location, all items that help new users quickly become comfortable with the tool.• Make the end-user training sessions more of a workshop instead of a demo. Encourage the trainees, if possible, tohave their computers at the training so they can follow along. The more interactive the session, the more value userswill get out of it.• Mandate that end-users attend a training of the tool. I have seen many customers just hand out IDs with no training,which delays the value proposition of the solution.• Facilitate follow-up review sessions that can be attended. This is a good opportunity for questions to be addressed,and new features/uses to be demonstrated. Aribas Project Managers provide these on a quarterly basis to their custom-ers.Best Practice Tip for Sourcing — Ariba Discovery (Also attached as a PDF)
Harnessing the Power of the Ariba Network for Your Commerce Needs Buyer Benefits •Reduce operating costs 70% or more Network Portal •Capture 3x more discount savings Sales / •Facilitate paperless invoice compliance Sourcing Marketing •Optimize working capital Order •Strategic platform for growth Management Procurement Supplier Benefits •Manage customers via self-service Portal •Reduce receivables costs 75% Finance / •Get paid up to 70% faster Finance / Receivables •Improve visibility and control Payables •Automate Order-to-Cash process •Access new business opportunities with largest buying community •Strategic platform for growth Financing Payment Accounting
Best Practices for Contracts—How close is your company to Contracts Best Practices? Traditional/Base line Advanced Best In Class No formal written contracts Have written contracts processes, but Have electronic contracts policies (withContract processes processes, thus often use often not followed by users or groups, checklist/tasks) that are followed by all(including editing and “third party paper” instead of and often still use “third party paper”. groups and regions. But still may haveamendments) your own contract Word file. to use “third party paper”.End user training No formal training or only Written manuals used to train new Written, class room, and/or WBT (Web done on occasionally. users. Based Training) are used for new users.Types of contracts No electronic contract system Electronic contract system for at least Electronic contract system for all typeselectronically sup- for any type of contract (Buy one type of contract. of contracts.ported side or Sell side or NDA, etc)Approval workflow Contract approvals are manu- Contract approvals are static elec- Contract approvals are dynamic elec- ally done by paper signatures. tronic, but are often not followed or tronic, with clause level approvals, with Approvers do not approve quickly. automated escalations if approvals are delayed..Contract execution Original documents are manu- Original or faxed documents are Documents are electronically signed(signatures) and trans- ally signed (wet signature) manually signed and mailed, faxed, or and electronically transmitted.mission method and mailed. emailed.Contract template Separate Word file used for Correct Word files is electronically Correct Word file is electronically se-(Word file) used to cre- different contract types, with selected for use with different contract lected for the correct contact type. Con-ate contracts and the manual Word file update of types, with manual Word file update of tract template Word files are electronicupdate process each different Word file. each different Word file. mass updated for changes common clauses.Invoices for Invoices are manually created Some invoices are created electroni- Many invoices are created from contractgoods/services cov- and mailed to your company. cally from the contract to reduce in- by suppliers/customers and electroni-ered by contracts voice errors. cally sent for auto matching to contract before payment.How is legal team in- Legal team called for all Legal team advice is in contract Word Legal team advice is accessible fromvolved for contract changes for all contacts (no file (must remove before executing) or the contract Word file but not part of thechanges/edits pre-approved alternate in associated separate document. Word file. Standard pre-approved alter- clauses used). Legal team often called for routine nate clauses available so legal team changes. Use common clauses in only called for unusual edits or situa- Word files. tions.Integration Contracts software is stand Share contract base data (suppliers, Contracts software integrated to other alone. users, categories, etc) with other soft- software (base data, sourcing, procure- ware system. ment, compliance, payment, etc).Contract storage, Paper contracts stored in file Electronic storage, with electronic Electronic storage, with electronicsearching, reminders cabinets, and must be manu- searching of header data and elec- searching of header data and documentand metrics. ally searched. No electronic tronic reminders of upcoming contract free text searching, with electronic re- reminders nor contract met- expiration. Some contract metrics. minders of multiple events (such as ex- rics. piring certifications or contract renew- als). Use contract metrics. The Ariba Commerce Cloud MANAGE BUY SELL CASH• Control costs TECHNOLOGY• Increase revenues,• Optimize Cash Flow Ariba Applications Ariba Applications Ariba Platform Ariba Platform and Operations COMMUNITYOne Ariba Exchange Ariba Exchange Ariba Network Ariba Network Partner Solutions Partner SolutionsCompany CAPABILITIESDoes It All…. Ariba Expertise Ariba Expertise Ariba Enablement Ariba Enablement Ariba Execution Ariba ExecutionAriba!