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Driving Rapid Time-to-Value Through Ariba Collaborative Commerce Solutions


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Does it seem like a dream to provide buyers with 10 times the purchasing options they have today, reduce catalog maintenance by 75%, and onboard new suppliers 75% faster? Does it seem like an impossible wish to reduce manual processes, simplify the user experience, and drive rapid time to value without re-vamping your entire eProcurement system? Learn how one of the largest users of SAP in the world was able to renovate their processes to become more efficient, more user friendly and faster innovating… all on top of their existing SAP platform.

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Driving Rapid Time-to-Value Through Ariba Collaborative Commerce Solutions

  1. 1. Driving Rapid Time to Valuethrough Ariba CollaborativeCommerce SolutionsVikram Pathak© 2013 Ariba, Inc. All rights reserved.
  2. 2. #AribaLIVEThe information in this presentation is confidential and proprietary to SAP and may not be disclosed withoutthe permission of SAP. This presentation is not subject to your license agreement or any other service orsubscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in thisdocument or any related presentation, or to develop or release any functionality mentioned therein. Thisdocument, or any related presentation and SAPs strategy and possible future developments, products andor platforms directions and functionality are all subject to change and may be changed by SAP at any timefor any reason without notice. The information in this document is not a commitment, promise or legalobligation to deliver any material, code or functionality. This document is provided without a warranty of anykind, either express or implied, including but not limited to, the implied warranties of merchantability, fitnessfor a particular purpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP´s willful misconduct or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual resultsto differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in makingpurchasing decisions.Legaldisclaimer
  3. 3. #AribaLIVEAgenda• Executive Summary• Why do we need Collaborative Commerce?• What’s the Value Proposition?• Customer Success Stories• Peek into Roadmap3 © 2013 Ariba, Inc. All rights reserved.
  4. 4. #AribaLIVEAriba® Collaborative CommerceExecutive Summary1. Procurement has a more strategic role in today’s organizations. It mustdeliver value and bottom line savings.2. Most customers manage only a fraction of their spend even withProcurement Automation. But they must increase spend managed toachieve their goals.3. “ Networked enterprises are 50% more likely to have increased sales, higherprofit margins, gain market share, and be a market leader. ”4. Ariba provides a fast and differentiated solution for the entire Procure-to-Pay cycle even for companies using non SAP ERP eProcurement systemsHow do you maximize your SAP (or other ERP)Procurement investment?How do you improve collaboration with your tradingpartners?Why does a network make you more profitable?Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” December 2010
  5. 5. #AribaLIVEAgenda• Executive Summary• Why do we need Collaborative Commerce?Business DriversMarket Situation• What’s the Value Proposition?• Customer Success Stories• Peek into Roadmap5 © 2013 Ariba, Inc. All rights reserved.
  6. 6. #AribaLIVEThe Reality of Today’s Business:According to CFO Research…61% of you will haveincreased costsavings targets44% of these targetswill be greaterthan 5%Creating ProcessEfficiencies is thetop priority for CFOsSource: CFO Magazine survey of 263 senior finance executives6 © 2013 Ariba, Inc. All rights reserved.
  7. 7. #AribaLIVETop Business FocusesRevenueCostsRiskManage CashRISKMANAGE CASHThe Reality of Today’s Business:7 © 2013 Ariba, Inc. All rights reserved.
  8. 8. #AribaLIVEThe Challenges We Hear fromPotential BuyersI can’t find what Ineed! Newproducts aren’tthere.It’s toocomplicatedto use!I’ll just phoneJim like Ialways do!The pricing isnever right.I can’t buyservices!UsersPoor adoption of ProcurementSystemsNot enough suppliers enabledCatalogs not up-to-dateSystem is not user friendlyNo Complex ServicesLack of Contract Compliance –Difficulties managing complianceto contracts, SLAs and regulationsintroduces legal and financialrisks. Contract leakage andexception management.Poor Collaboration –Collaboration with trading partnersis limited to email, mail, fax, andphone. Inefficient plus lack oforder/invoice data hampersproductivity.8 © 2013 Ariba, Inc. All rights reserved.
  9. 9. #AribaLIVEThe Challenges We Hear from ourPotential Customers:The maintenance istoo much!It takes toolong to getcatalogs up!I give up, I can’tcontrol the spend!Everybodygoes aroundthe system!I can’t connectmultiplesystems!Procurement/IT/APDifferent systems have differentapplications- increased costsand time.High Maintenance – Catalogs arecostly to maintain as well asmultiple systemsLack of Contract Compliance –Difficulties managing complianceto contracts, SLAs and regulationsintroduces legal and financialrisks. Contract leakage andexception management.Long invoice cycle times –Missed discounts, late payments,lack of complianceInvoices aren’tgetting paid ontime9 © 2013 Ariba, Inc. All rights reserved.
  10. 10. #AribaLIVEThe Solution: Ariba® CollaborativeCommerceA cloud-based solution that extends the business process capabilities of SAP (or other ERP) systems acrossyour extended supply chain…Ariba® Collaborative CommerceAriba® Collaborative Commerce is:• Easy to Use Catalog• Purchase OrderAutomation• Invoice Automation• Invoice ConversionServices (Open ICS)Collaborative Commerce• Complete Compatibilitywith SAP NetWeaver™• Trading PartnerConnectivity• Supplier Enablement• Catalog Management• Buyer Portal• e-Invoice Receipt10 © 2013 Ariba, Inc. All rights reserved.
  11. 11. #AribaLIVEAriba® Collaborative Commerce ExpandedContractComplianceCatalogSupportPOCollaborationInvoiceReceipt &ComplianceARIBA Collaborative CommerceSupplierSupplierSupplierSupplierSupplierSupplierSupplierSupplierEDIEmailCSVHTMLcXMLAS2PaperEnterpriseERPxCBLSmartPDF• Plug-in to 800K+ Suppliers• Single Point of Collaboration for all Suppliers• Collaboration Capabilities to Include all Spend Types• Simplified Buying•Deployed in little as 14 weeks, High ROIRequisitionOwnership andOrder WorkflowGoods &ServicesReceiptExceptions andApprovalWorkflowPAYCORE ERPPOsInvoicesOrder & ShipmentConfirmationPOsInvoicesOrder & ShipmentConfirmation11 © 2013 Ariba, Inc. All rights reserved.
  12. 12. #AribaLIVECatalog CapabilitiesCapabilities and benefits• Simplified shopping forcasual users• My Favorites• Kits & Bundles• 3 Bids &Buy• Level 2 Punch Outs• Complex ServicesQuotations (optional)• Generation of a requisition,reservation, or purchaseorder• Drive spending to preferredvendors, contracts• Supplier catalogs deliveredvia the Ariba NetworkPOCollaborationInvoice Receipt& ComplianceAriba Collaborative CommerceRequisitionOwnership andOrder WorkflowGoods &ServicesReceiptExceptions andApprovalWorkflowPAYCORE ERPContractComplianceCatalogSupport12 © 2013 Ariba, Inc. All rights reserved.
  13. 13. #AribaLIVEUsability Helps Adoption…© 2013 Ariba, Inc. All rights reserved.13• Users can find what they need• From the suppliers they want• At terms that are proactively compliantNon catalogitemsFavoritesShopping cartDashboard viewType aheadFilteringApprovedsuppliersCompliant toyour contract“We start to see Ariba muchmore like,users are adopting thatmuch faster.”
  14. 14. #AribaLIVEPO and Invoice AutomationContractComplianceCatalogSupportPOCollaborationInvoiceReceipt &ComplianceAriba Collaborative CommerceRequisitionOwnership andOrder WorkflowGoods &ServicesReceiptExceptions andApprovalWorkflowPAYCORE ERPCapabilities and benefits• Delivery of electronic POs fromany system• Real-time visibility into orderstatus, ASNs, and relateddocuments• Paper and electronicinvoice capture• >70 configurable business rulescapture errors and exceptionsbefore they reach AP• Auto post rates of 98%+• Self-service supplier portalfor real-time invoice/paymentstatus• Flexible invoice submissionoptions, including PO-Flip®• Compressed invoiceprocessing cycle14 © 2013 Ariba, Inc. All rights reserved.
  15. 15. #AribaLIVEAriba® Collaborative CommerceFunctional Process FlowSystem generatescontract compliantPOs from approvedreqsSuppliers createelectronic invoiceswhich are routed viathe Ariba NetworkApprovals are routed tomanagers and/orpurchasing agentsbased on business rulesEnd-users create requisitions for goods & servicesfrom electronic catalogs in Ariba that are accessedthrough their ERP – seamlessly and checked forcontract complianceUser UserUserOK-To-Pay sent to ERPand Suppliers are paidvia ERP AccountsPayable systemEnd UserERPPOs routed tosuppliers via theAriba NetworkGlobal SupplierCommunitySupplierSupplierSupplierSupplierSupplierSupplierPortalXMLFaxEDIAS2CSVEmailSuppliers send backacknowledgementsand/or Advanced ShipNoticesGoods areshipped /Services areperformed bythe supplierCentral and/or end userreceiving is performed – signoff on services performed ERP2, 3, and/or 4-way invoicematching and reconciliationis done using POs, receipts,and contracts - payment isapproved by AccountsPayable deptOK-To-PayERPERP15 © 2013 Ariba, Inc. All rights reserved.
  16. 16. #AribaLIVEAgenda• Executive Summary• Why do we need Collaborative Commerce?• What’s the Value Proposition?• Customer Success Stories• Peek into Roadmap16 © 2013 Ariba, Inc. All rights reserved.
  17. 17. #AribaLIVEWhy Ariba® Collaborative Commerce?Key value proposition① Control the most spend – ‘More spend undermanagement’• “Percent spend under management: BIC: 88%,Ariba 99%”- Aberdeen Group compared withfully adopted Ariba solution suite; AribaBenchmarking, Aug 08② Casual-user friendly / quick adoption③ Manage any kind of service, Manage goodsand servicesBy managing more categories including goods andany service, Spend managed is increased.Average services spend in an organization 20-80%.④ Reduce paper, reduce problem invoices andimprove invoice processing cycle times⑤ More effective collaboration via the world’slargest Business NetworkSAPorOtherProcurementCustomersValue derived① Enable more suppliers with catalogs, PO’s and e-Invoicing quickly through the Ariba Network② Achieve better user adoption with user friendlyinterfaceGartner awarded Ariba an "Excellent" rating for ease-of-use.*Ariba has intelligent fuzzy search, parametric refinement alongwith side-by-side comparisons in a single user interface③ Manage more spend for increased savingsIndirect, Direct, MRO, Complex/Services④ Create a touchless invoice process, with the AribaNetwork “Smart invoicing”⑤ SaaS solution achieves payback in the first 12 months⑥ Proactive compliance with Contracts⑦ Faster processing allows better cash and discountmanagement* Critical Capabilities for Best-of-Breed E-Procurement Vendors, June 2009
  18. 18. #AribaLIVEAriba® Collaborative Commerce:Customer Proof PointsCompetitive Differentiators• Quick Catalog Enablement: Disney - Before: 2-4 weeks, After: 5 business days• Up-to-Date Content: Disney – Before: 3-7 days, After: 1 day• Catalog Accuracy: Disney – Before: 95%, After: 99%+• Solution Adoption: Carlsberg – 15% increase in solution adoption• Invoice/Payment processing: Carlsberg – 30% improvement• Invoice Matching: Alcoa – 99.99% first time match rate of POs to invoices• Paper Invoice Reduction: Alcoa - 56% reduction in paper invoice volume inNorth America
  19. 19. #AribaLIVEAgenda• Executive Summary• Why do we need Collaborative Commerce?• What’s the Value Proposition?• Customer Success Stories• Peek into Roadmap19 © 2013 Ariba, Inc. All rights reserved.
  20. 20. #AribaLIVECollaborative Commercefor use with SAP®Carlsberg A/S© 2013 Ariba, Inc. All rights reserved.20• Catalog SetupUsing the Network• 15% increase in solutionadoption beyond wherecompany could get with anERP-centric solution• 30% improvement inInvoice/Payment processing• 30% improvement in responsetimes and service level from ITthanks to a simpler solutiondesign and footprint• Using Ariba ProcurementContent in 13 countriesCompanyCarlsberg A/SProfileOne of the largest globalbeer companiesSolutionAriba CollaborativeCommerceTM for use withSAPChallenges Solutions Results• Multi-year ERP migration to asingle instance of SAP –crowding out opportunity toquickly capture opportunitiesin the supply chain without anadditional partner• Procurement function wasset-up as an independentbusiness with its own P&L –needed a best-in-classsolution to ensure success• Organization spread outglobally, leading to lack ofenforcement of companyagreements• Incorporate new companiesfrom acquisitions• Ariba Procurement Contentset up and connected toSAP core ERP system andSAP SRM 7.0 version –Ariba catalogs faster andeasier to use than SAP’s• Support major project to getsuppliers and catalogsenabled• Extensive use of Catalogviews in scope (filteredviews) to use fewercatalogs but display globalagreements appropriately tousers groups, business unit,or geography
  21. 21. #AribaLIVECollaborative Commercefor use with SAP®Case Study: LexmarkAriba P2P + SAP© 2013 Ariba, Inc. All rights reserved.21• Best- in-class capabilities thatdelivered 100% spend - processcompliance• Seamless transition - systemfunctioning as designed• Catalogs expanding globally,eliminating rogue processes• Supplier records reducedby 75%• Optimized global sharedservice centers21CompanyLexmark International, Inc.ProfileA leader in developing,manufacturing and supplyingprinting and imaging solutions foroffices and homesSolutionAriba Collaborative CommerceTMfor use with SAPAriba Procure-to-PayAriba NetworkChallenges Solutions Results• Movement to sharedservice centers dictated needfor global processes• Change management andhigh costs associated withtraining, maintenance andsupport• Ariba CollaborativeCommerceTM for use withSAP• Ariba Procure-to-Pay validate customer satisfaction prior to referencing their story
  22. 22. #AribaLIVEWalt Disney© 2013 Ariba, Inc. All rights reserved.22• Ease of use• Rapid user adoption• Increased catalog performancemeasured and sustainedpost deployment• Supplier collaboration• Decreased technical supportresource requirements• Improved catalog maintenancecycle times• Increased stakeholder demandfor new supplier catalog2222CompanyThe Walt Disney Company LimitedProfileA leading diversified international familyentertainment and media enterprisewith four business segments: medianetworks, park and resorts, studioentertainment and consumer productsSolution• Collaborative CommerceTM forProcurement• Ariba sourcing solutions• Ariba spend visibility solutionsChallenges Solutions Results• Lack of functional innovation• Support requirementsgrowing faster thanresource availability• Legacy business rulesthat hindered efficientcatalog management• Manual processes• Desired functionalimprovements deemed highrisk and cost prohibitive todevelop on the SAP platform• Deployed CollaborativeCommerceTM forProcurement• Deployed Ariba SpendVisibility• Deployed Ariba Sourcing- Shay Conway, Disney Enterprise Manager for Procure to Pay“Focus on the user experience and results will follow.” Collaborative Commercefor Procurement®Not for use outside Ariba - this slide is for internal training purposes only
  23. 23. #AribaLIVECollaborative Commercefor Procurement23RockTenn© 2013 Ariba, Inc. All rights reserved.23CompanyRockTennProfileLeading producer ofpaperboard, containerboard andconsumer-corrugated packagingproductsSolution• Collaborative CommerceTMfor Procurement• Ariba Invoice ConversionService (ICS)Challenges Solutions Results• Need to improve collaborationwith suppliers around ordersgenerated from JD Edwardssystem• Decentralized AP processingstructure contributed toinefficient, costly invoiceprocessing• Too many invoice errors• Inability to identify suppliersthat were consistentlysubmitting problem invoices• Deploy CollaborativeCommerceTM for JDEdwardssolution to enable real-timesupplier collaboration, smartinvoicing to streamlineprocessing and eliminateexceptions• Ariba Invoice ConversionService (ICS) for automatingthe processing of paperinvoices• Improved control overinvoice capture anddramatically reduced invoiceexceptions• Enabled movement ofsuppliers to a fully electronicinvoice delivery model• Transformed AP function byemphasizing data analysisand reporting in place ofprocessing paper invoices• Laid foundation forexpanding early paymentdiscounts captureNot for use outside Ariba - this slide is for internal training purposes only
  24. 24. #AribaLIVECollaborative Commercefor Procurement®© 2010 Ariba, Inc. All rights reserved.Albemarle© 2013 Ariba, Inc. All rights reserved.24• Improved requisitioning –approval processes• Centralized purchasing in U.S.& EU• Daily/weekly/monthly visibilityinto MRO spend• Historical reporting of volumeand pricing trends of specificMRO materials• $3M in negotiated procurementsavingsHigher negotiated discountsEnhanced discount capturefrom improved spend visibilityBetter spend control driven byhigher levels of compliance tocontracts and greater relianceon corporate standard catalogitemsCompanyLeading Global SpecialtyChemicals CompanyProfileLeading specialty chemicalcompany serving customersin over 100 countriesSolutionAriba CollaborativeCommerceTM forProcurementChallenges Solutions Results• Indirect purchasing was 100%text-based requisitioning inSAP• Limited spend visibility – toomany suppliers to manage• Savings lost from inconsistentpricing from suppliers• Purchasing lost leverage withno clear insight into volumeand price of spend• Strategic purchasing took aback seat to transactionaloverload• Ariba Procurement Contentto ensure compliance withcurrent pricing and preferredsuppliers• Ariba Network to automatePO delivery and enableelectronic invoice processing• Ariba CollaborativeCommerce solution forextending the businessprocess driven by SAP SRMbeyond the four walls of theenterprise to the extendedsupplier trading communityNot for use outside Ariba - this slide is for internal training purposes only
  25. 25. #AribaLIVEAgenda• Executive Summary• Why do we need Collaborative Commerce?• What’s the Value Proposition?• Customer Success Stories• Peek into Roadmap25 © 2013 Ariba, Inc. All rights reserved.
  26. 26. #AribaLIVE13s + Roadmap• APCNew Catalog ArchitectureAdvanced Contract IntegrationAdvanced Catalog LoadAdvanced Catalog FilteringShopping templatesCatalog Data Pull• InvoicingService InvoicingNew model for accounting defaults (TBD)Integrated B2B electronic payments26 © 2013 Ariba, Inc. All rights reserved.
  27. 27. #AribaLIVEBUYERS SELLERSAriba: Solving the CollaborationConundrum© 2013 Ariba, Inc. All rights reserved.27For the World’s Businesses – Including 90% of the Fortune100More than 800,000 connected companies collaborating on morethan €314 billion of commerce in over 140 countries
  28. 28. #AribaLIVEThank You 
  29. 29. Questions?
  30. 30. #AribaLIVEPlease Complete Session Survey© 2013 Ariba, Inc. All rights reserved.30Find Sessionin ScheduleClickChoose oneRateSessionThank you for joining usClick Survey andSelect BreakoutSession Survey