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Debunking The e-Commerce Myths

In our work with thousands of sellers – large and small – we’ve identified the top common misperceptions that often hold companies back from fully realizing the benefits of eCommerce. Join industry experts as they systematically debunk these myths, which include:
• Ecommerce should be managed by IT, not Sales and Marketing, because of its complexity.
• Ecommerce is not for Services.
Our experts will also share recommended next steps for on overcoming these myths and realizing the full benefits of eCommerce.

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Debunking The e-Commerce Myths

  1. 1. Debunking the E-Commerce Myths: Addressing Common Misperceptions to Take E-Commerce to the Next Level © 2013 Ariba, Inc. All rights reserved.
  2. 2. #AribaLIVE Presenters • Kelly Stewart EMEA Sales Manager Global Accounts Systemax • Shirley Brzeski Founder & Managing Director ClearChoice Careers, Ltd © 2013 Ariba, Inc. All rights reserved.2
  3. 3. #AribaLIVE ECOMMERCE SHOULD BE MANAGED BY IT, NOT MARKETING AND SALES Kelly Stewart, Sales Manager, Global Accounts - EMEA Systemax EMEA Technology Group (Misco) © 2013 Ariba, Inc. All rights reserved.3
  4. 4. #AribaLIVE © 2013 Ariba, Inc. All rights reserved.4 Kelly Stewart Sales Manager, Global Accounts – EMEA Kelly’s current role is managing the Global Program. • Sales manage and drive the strategy for our ‘Top 100 Global Companies’ for Systemax. • Manage the overall EMEA relationship with the customer to provide an end to end solution • Dotted line responsibility for a team of over 30 across Europe who provide local day to day Account Management to our G100 customers ensuring SLA and pricing conditions are adhered to. . Grew consolidated revenue of these customers by 17% in 2011 27% in 2012. Engagement with Ariba is a big part of this strategy. ‘ ‘The glue to ensure things are stuck together’
  5. 5. #AribaLIVE Systemax Inc. Group • Systemax Inc. Group, operating across North America and Canada, specialising in the provision of IT goods, services and solutions. A Fortune 1000 Company, Systemax trades on the NYSE and employees in excess of 5,500 staff globally. IT reseller in North America and Europe $3.7 billion in 2011 Fortune 1000 (#562) company listed on the NYSE/Euronext © 2013 Ariba, Inc. All rights reserved.5
  6. 6. #AribaLIVE Trading as Misco and Inmac-Wstore • Call centers in 8 markets: FR, NL, DE, ES, IE, SE, IT, UK • Also support AT, BE, PT, CH, Nordics and CEE • 600+ outbound sales agents • Combined 30k m2 warehouse Systemax North American Technology Group Systemax European Technology Group Trading as: TigerDirect, Circuit City, Global Industrial and CompUSA • 15 call centers in the USA and Canada • 500+ outbound sales agents • 43 retail stores Systemax Inc. Group © 2013 Ariba, Inc. All rights reserved.6
  7. 7. #AribaLIVE Why eCommerce? E-Commerce has become an important tool for businesses worldwide not only to sell to customers but also to engage them • Our company roots are Direct Marketing. • eCommerce is a natural extension of our B2B strategy. It compliments our core Local Account Management. • Most importantly, it’s the primary channel our customers want to procure goods. © 2013 Ariba, Inc. All rights reserved.7
  8. 8. #AribaLIVE Systemax and Ariba • 20 Active Global Buyers • In Europe, 2,500 transactions took place between Ariba and various Misco entities in 2012 equating to just over $1mil in revenue which continues to grow. © 2013 Ariba, Inc. All rights reserved.8 Forced Invest Best Practice
  9. 9. #AribaLIVE Systemax and Ariba • We’re aiming for a 50% increase in revenue and transactions through Ariba by year ending 2013. • Increase Ariba connections throughout Europe with current customers looking to deploy E-procurement solutions • We hope to move some partners to Ariba invoicing, currently in testing phase. • Strong collaboration with Ariba in conjunction with prospective customers. • We’re aiming to provide full solution Punch in and Punch out © 2013 Ariba, Inc. All rights reserved.9
  10. 10. #AribaLIVE My Initial Mindset © 2013 Ariba, Inc. All rights reserved.10
  11. 11. #AribaLIVE The Big Question IT, Sales or Marketing © 2013 Ariba, Inc. All rights reserved.11 Purchasing and Marketing IT Systems IT Systems E-commerce Website Sales Team Order : Fax, Phone, e-mail E-commerce / Extranets Punch-Out Ariba/others Third Party Buying portal Internal Buying Tools (srm) EDI/XML E-invoicing
  12. 12. #AribaLIVE What were our challenges and obstacles? © 2013 Ariba, Inc. All rights reserved.12
  13. 13. #AribaLIVE Results and lessons learnt © 2013 Ariba, Inc. All rights reserved.13
  14. 14. #AribaLIVE ECOMMERCE IS NOT FOR SERVICES Shirley Brzeski, Founder & Managing Partner, ClearChoice Careers, Ltd. © 2013 Ariba, Inc. All rights reserved.14
  15. 15. #AribaLIVE About Me • Managing Director of ClearChoice Careers, Ltd. • Shirley’s background • Since ‘83 - recruitment…recruitment..recruitment • Started own agency in 1990’s – SAP Specialists • Late 1990’s innovated the concept of direct recruitment – enabled clients and applicants to interact direct for a fixed up-front fee using the internet. • Internet based Services evolved and ClearChoice Careers was born © 2013 Ariba, Inc. All rights reserved.15
  16. 16. #AribaLIVE ClearChoice Career’s Mission Helping clients and applicants to find each other using the internet © 2013 Ariba, Inc. All rights reserved.16
  17. 17. #AribaLIVE We recruit globally: • Permanent or Contract staff – all skill sectors • Flexible payment for clients who choose: low fixed fee up-front payment keenly priced fee once placement made New in 2012 – HR Consultancy • HR Reviews & Best Practice Reports • Employee Engagement Surveys • HR Training Workshops across related topics delivered in-house and roadshows: Interviewing techniques Psychometrics Absenteeism © 2013 Ariba, Inc. All rights reserved.17
  18. 18. #AribaLIVE The Internet Revolutionised Recruitment Methods but our backoffice administration remained very traditional © 2013 Ariba, Inc. All rights reserved.18
  19. 19. #AribaLIVE © 2013 Ariba, Inc. All rights reserved.19 Find the perfect candidate using the internet The future of recruitment is online
  20. 20. #AribaLIVE ClearChoice Journey to eCommerce © 2013 Ariba, Inc. All rights reserved.20 • Great idea for marketing…necessary for purchasing and supply? • Already pro internet, experimented with online marketing sites – mixed success. • Our main client dictated that we join Ariba as a supplier. • Optimistic about outcome, reservations about set-up. • Reassured in knowledge that our client had a point of contact to help us with set- up as well as Ariba support. • BUT WHAT DID WE NOT KNOW!
  21. 21. #AribaLIVE What Were Our Reservations? Decisions and Execution Rested with MYSELF!! 1. Set-up of catalog – quickly realised that it wasn’t typical windows or excel based document. Comfort zone challenged. 2. What content to include, unsure who was going to be reviewing – Existing clients, future clients? 3. Not selling products, how much detail should be included in descriptions of our service © 2013 Ariba, Inc. All rights reserved.21
  22. 22. #AribaLIVE What Were Our Challenges? • Set up – technical. • Pricing a fluctuating service suitable for all. • Existing operational & report procedures needed changing • Educating our clients • Marketing – how to grab attention from a wide audience through network discovery © 2013 Ariba, Inc. All rights reserved.22
  23. 23. #AribaLIVE How Did We Overcome the Challenges? 1. Technical - partnered with our client’s dedicated Ariba team and Ariba support. 2. Negotiated with clients as usual, then produced private catalogs specifically for them. 3. Changed internal operational & reporting procedures, additional fields in databases. 4. Re-education programme, system of reminders built into procedures 5. Network Discovery – specific to avoid irrelevant leads © 2013 Ariba, Inc. All rights reserved.23
  24. 24. #AribaLIVE Our first catalog FIELDNAMES: Supplier ID Supplier Part ID Manufacturer Part ID Item Description SPSC Code Unit Price DATA AN01000560098 Basic Basic Advertising UK Job Board - Basic Adertisement 80111700 475.00 AN01000560099 Specialist Specialist Advertising UK Job Board - Specialist Advertisement 80111700 475.00 AN01000560100 EMEA EMEA Advertising Europe other, Middle East and Africa Job Board 80111700 650.00 AN01000560101 Translation 1 Translation 1 Translation of adverts (250 words minimum) French, Italian, Dutch, German 80111700 0.40 AN01000560102 Translation 2 Translation 2 Translation of adverts (250 words minimum) Czech and Romanian 80111700 0.40 AN01000560103 Maint Maint Monthly Maintenance Fee 80111700 2,000.00 AN01000560104 Extra UK Extra UK Extra UK Job Board Advertisement 80111700 50.00 AN01000560105 Other UK Other UK Monster & UK Jobsite Advertisement 80111700 650.00 ENDOFDATA
  25. 25. #AribaLIVE Results © 2013 Ariba, Inc. All rights reserved.25 Payments Employee • Staff love it – • sales get commission quicker • cost control • forecasts are more accurate. Marketing • put us on radar • improved client commitment • Yr 1 sales up 300% • Yr 2 sales up 250% • removed chase payment • elimination of DSO • alerted to problems early • forecasts are more accurate Our customers consider us a Top Tier provider We can predict our payment and predicatively manage our cash We have met or exceeded all of our targeted metrics
  26. 26. #AribaLIVE Lessons Learned & Recommendations © 2013 Ariba, Inc. All rights reserved.26 • Catalogs: Communication • eInvoicing: Strive to put all through this medium • Ariba Supplier: Put on all sales documents, has opened doors for us!
  27. 27. #AribaLIVE
  28. 28. Questions? © 2013 Ariba, Inc. All rights reserved.
  29. 29. #AribaLIVE Please Complete Session Survey © 2013 Ariba, Inc. All rights reserved.29 Find Session in Schedule Click Choose one Rate Session Thank you for joining us Click Survey and Select Breakout Session Survey