1. Ariba Knowledge Nuggets
Technology alone TECHNOLOGY
TECHNOLOGY
is not a Silver Bullet...
Companies of all sizes across industries need to drive maximum value
from their business commerce initiatives. But commerce is hard. And
technology alone won’t make it easier. Successful commerce is driven
Typical Spend by a combination of technology, capabilities, and community. So how
Management Goals can you ensure success as you plan, deploy, and adopt a business
commerce program to deliver world-class results to your organization?
♦ Gain visibility to There are multiple challenges to getting the most out of your business
what we’re buying commerce initiatives, including:
♦ Reduce maverick • Developing a business case and program approach
spend • Setting expectations and securing executive support
♦ Ensure we pay • Fueling change management
the right price
• Marketing efforts internally
♦ Streamline
• Enabling trading partners
processes
• Driving adoption by category, geography, function, etc.
♦ Increase our
percentage of • Testing technology for acceptance, data, and integration
spend with • Accessing external resources and expertise to fill internal gaps
Preferred Companies must not only prepare for deployment of their technology,
Suppliers but the change necessary to fully leverage their new solution over the
♦ Improve controls long haul.
♦ Provide
foundation for There are several critical success factors for driving adoption
additional and maximizing solution value
opportunities
♦ Enlist broad organizational support in business units
1. Executive
and regions
Sponsorship
♦ Execute detailed communication plan across the
&
organization: Global and regional communications
Change
♦ Manage change proactively and engage end users
Management
early in process

2. Ariba’s Vision for Spend Management
To drive best-in-class
procurement, Ariba works with
customers across six Process
dimensions of spend Systems
management to drive spend
capture and adoption.
Spend People
Manage-
Organizational ment
Process - Identification of Performance Strategy
process improvement
opportunities based on best Organizational
practices across the procure- Design
to-pay process. Spend
People – Evaluation of an
organization’s performance
and potential through the
assessment of roles / responsibilities, training, professional
development, communication and change management.
Organizational Design – Evaluation of a spend management
organization’s internal design and the identification of opportunities for
greater efficiency or effectiveness.
Are you currently
Spend – Identification and prioritization of savings opportunities through
signed up for the procure-to-pay category enablement.
Ariba Benchmark Organizational Performance – Identification of the appropriate internal
program? If not, and external (supplier performance) metrics and measures that firmly
contact me...it’s easy connect organizational performance to strategies / goals.
and won’t cost you Systems – Review of current spend management platform
anything! (applications, infrastructure and support) for opportunities to support
more categories / spend under management and to improve internal
customer service.
There are several critical success factors for driving adoption
and maximizing solution value
♦ Develop category roadmap that includes early
2. Category
organizational wins (Sourcing and Procurement
Roadmap
roadmaps)
♦ Expand category coverage over time (including
complex services and areas not previously
supported by the purchasing organization)

3. There are several critical success factors for driving adoption and
maximizing solution value
♦ Organize teams around specialty skill-sets/
3.
Organizational center of excellence approach
Structure ♦ Integrate Finance and Business Unit Leadership
through strategy development and measurement
♦ Develop required capabilities in purchasing
organization
The Journey to Best-in-Class
Hi
“If you do not re-
Specialize and engineer and measure
Sustain your processes you will
Capture More Complex Areas
fail to gain the full
(Learning & Collaboration)
Process Maturity
benefits of the
Year
Year
technology.”
Expand and
Enable 3+
3+
Increase Throughput – Pierre Mitchell, The
Hackett Group, 2009
Year
Year
2
2
Launch and
Leverage
Get Early Savings
Year
Year
1
1
Low Adoption (Technology & Automation) Hi
There are several critical success factors for driving adoption and
maximizing solution value
Ensure commerce ♦ Update policies and procedures as
program success with
4.
categories are enabled
programs that consider Policy &
♦ Expect adherence to policies once solution
business case Procedure
has been rolled-out across the organization;
development, planning, Enforcement
use both carrot and stick approach for
deployment, flight-
success
planning, organization
needs, trading partner
strategies, and adoption.

4. How can Ariba help? Value Enablement Services
Why Ariba Value Enablement
Ariba has provided business commerce support to companies around the
world for more than a decade. And the most-successful organizations share
a few things in common:
1. A comprehensive approach to business commerce that incorpo-
rates technology, community, and capabilities
2. A structured approach based on industry best practices
3. A solid business case and ROI model that incorporates milestones
and tracking devices
Based on these characteristics, Ariba has created a “one-stop shop” ap- Let Ariba help
proach that delivers all the resources and expertise that companies need to get you to the
overcome the challenges to commerce, including:
next stage
• Market intelligence of your
• Change management strategies and templates organizational
• Organizational maps and best-practice approaches
• World’s-largest network of pre-enabled trading partners transformation!
• Flight-planning expertise by category, geography, and function
• Technology deployment and integration capabilities
Ensure commerce program success with programs that consider business case development,
planning, deployment, flight-planning, organization needs,
trading partner strategies, and adoption.

5. Defining True Spend Management
- requires a strategic end-to-end view of spend management across all categories of spend from technology,
organization and process perspectives
Identify Develop Source and Contract Invoice Monitor
Opportunity Strategy Negotiate and Procure and Pay and Manage
Sourcing P2P Process Enablement
Complete Creating and Ensuring active Enabling best
visibility managing compliance in class
into all of your best-in-class with contracts processes from
company’s contracts for and policies for sourcing to pay
spend all of your all your to ensure user
categories of categories of adoption
spend via spend
continuous
sourcing
True Spend Management leads to bottom-line savings
Across 100% of your spend base
It is very important to define what spend management is, and more importantly what it
is not. It is not inventory management, nor asset management and nor supply chain
management, even though it touches and links to all these enterprise processes.
Spend management is only about two things.
1. Creating and managing best-class contracts through continuous sourcing, and
2. Ensuring that people within the enterprise comply with the contracts put in place
with suppliers as well as internal purchasing policies.
To do this effectively across all areas of spend, enterprises need to increase their
“sourcing throughput”, i.e. rate and breadth of spend sourced and savings negotiated);
and their “enablement put-through”, i.e. rate and breadth of spend enabled for
purchasing against contracts and policies, so as to increase negotiated savings.