Network Collaboration - Kevin Costello, President, Ariba, Inc.


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  • The networks we use to run our daily lives share these three components of TECHNOLOGY, COMMUNITY AND CAPABILITIES.
  • Another benefit of the Quadrem acquisition and a chief component of our strategy is to add as many nodes as possible to the Ariba Network and to get more spend penetration in existing and new accounts. Interestingly, one of the quickest ways to do this is not by selling our own software. It’s by connecting existing spend-generating systems – like ERPs and Asset Management and MRP systems and others – to the Ariba Network and automating their POs, Invoices, and other collaborations.Most of these deployments automate internal processes…but stop at the edge of the enterprise – leaving a mess of paper, lots of rework, and costs for both buyers and sellers. By connecting these systems – and their trading partners – to the Network and extending them with our Network-based solutions like PO Automation and Invoicing; we’ve been able to yield an additional 5% to 15% savings for customers that…well…technically aren’t using Ariba software.For ex: Deutsche Bank, a big SAP shop, has outsourced its invoice management to Accenture. They got a first wave of value…but wanted more. Together DB and Accenture selected to automate the invoicing process through the Ariba Network. They shared the results in a webinar just last month…and they were impressive: on-boarded nearly 4,000 suppliers for e-invoicing; moved from 100 percent paper invoicing to a goal of 80 percent electronic in targeted regions. Today, they process more than 350,000 e-invoices annually. Flint Hills Resources is another good example. A producer of fuels and petrochemicals, Flint Hills is an asset intensive manufacturer, with needs for machine repairs and maintenance. They use MAXIMO – a leading asset management system now owned by IBM – to manage this internally…but their POs and invoices stopped at the edge of the enterprise. We connected them to the Ariba Network on April 7th using PO and Invoice automation. Now they have nearly 1,000 suppliers enabled and we’ve more than doubled their touchless e-invoicing expectations. This application-agnostic approach represents a big opportunity for us. Our analysis suggests that connecting and extending 3rd party systems with the Ariba Network represents a nearly 6X market opportunity for us – both within net new customers who are already using an ERP-based procurement solution or other spend generating system – as well as in our own customer base, where we may capture half their spend in Ariba – but have the opportunity to catch and automate the other half from other systems. We have made concerted efforts over the past year – and especially the past few months – to optimize our systems, expand our ecosystem, and amplify our focus on capturing more spend from more systems – beyond just Ariba.
  • Microsoft Dynamics is an industry leading suite of business solutions for small and mid-size customers, and enterprise customers. More than 350,000 customers and 5 million users worldwide use Microsoft Dynamics. Our solutions are available in over 40 languages, and sold through a partner channel of over 5,000 partners.
  • Our solutions can be deployed on-premise, in the cloud, or in a hybrid model. We strongly believe in offering our customers the choice of deployment, and not forcing them to a certain deployment model. Because Microsoft will be the only vendor to provide cloud and on-premises ERP and CRM solutions with a single code base, our customers will benefit from flexibility in their choice of deployment (on-premises, online or hybrid), and our partners will benefit from being able to repurpose existing vertical solutions. Finally, with the breadth and depth of products that Microsoft builds, including SQL Server, Sharepoint, Outlook etc, we offer an integrated stack of business solutions that is unparalleled in the industry.
  • It’s really all about the power of the network. When you bring hundreds of thousands of entities together on the same platform transacting electronically, there are tremendous efficiencies and innovations that result from that, and the end-customer is the beneficiary. You see this happening in the consumer e-commerce space with eBay and Amazon. We see the business of the future transact in the same way, connected to and transacting with thousands of businesses on a common network that provides process efficiencies and credibility, and continuously innovates on the information it has about the entities on the network. Ariba is that network in the B2B space. We believe that Microsoft Dynamics customers can benefit tremendously by being a part of the Ariba network.
  • The Ariba partnership also aligns perfectly with our Dynamics Business vision. Last month, during Convergence, our annual customer conference, we unveiled our vision of Dynamic Business that talks about how successful companies need to be dynamic in the way they react to the world that they are in, by enabling their people, managing their processes, and connecting with their ecosystem.  I encourage all of you to visit our website and read our Dynamic Business vision white paper.We are focused on designing business solutions that are optimized for the individual. This means designing applications that make people more proactive, deliver simplicity and agility and support connected organizations to transform them into Dynamic Businesses.  Traditionally, businesses have had to choose between best of breed solutions that could target a single workload or entire suites. The best of breed approach presents enormous integration challenges as the separate workload solutions rarely came from the same application vendor. The suites naturally delivered integration, but don’t support workload-at-a-time implementation.To solve this problem, Microsoft Dynamics is evolving into a suite solution, composed of workload services that are designed together but can be deployed independently. Businesses can consume the Microsoft Dynamics technology in the model that works for them – as an integrated suite in a business or subsidiary, or workload by workload in larger enterprises, with the workloads together composing the simplicity of a suite. There will be some key workloads that we will develop. E-Procurement is one such workload, and there is no better partner than Ariba to extend our e-Procurement capabilities and give our customers the benefit of the Ariba network.
  • Network Collaboration - Kevin Costello, President, Ariba, Inc.

    1. 1. Moneyball Meets Business Commerce
    2. 2. Internal vs. External Collison Buyer Supplier Buyer Supplier Buyer Supplier Buyer Supplier
    3. 3. The Business Commerce Dilemma… Buyer Seller Discovery & Negotiation (Search/Web Portal/Phone) Sourcing Sales/Mktg. Ordering (EDI/Fax/Web Portal) Order Mgmt Procurement Finance (AP/Treasury) Finance Payment (Check/ACH)
    4. 4. Buyer Supplier Ariba SupplierBuyer Supplier NetworkBuyer Supplier
    5. 5. Personal Commerce Networks Communication Shopping & Collaboration Entertainment Research
    6. 6. • Increases orders by centralizing on the Ariba Network• Efficiently updates content through catalogs• Lowered sales processing costs by 25%
    7. 7. Ariba Network Approach – A Better Way Buyer 1 Sourcing Supplier 1 Sales Procurement Order Mgmt Finance Discover Finance Identify, Qualify, Community Buyer 2 Sourcing Connect Enable, Transact, Manage Sales Supplier 2 Procurement Collaborate Order Mgmt Finance Order, Invoice, Source, Pay Finance Aggregate Intelligence, Analytics Buyer N Sourcing Sales Supplier N Procurement Order Mgmt Finance Finance
    8. 8. • Complex environment with commerce in 38 countries• Massive scale growing from $4B to $60B in 10 years• End-to-end process coverage with Ariba
    9. 9. • Extended the value of ERP with Ariba on demand• Enabled more than 400 suppliers in weeks• The network provided immediate access for all
    10. 10. • Receives more than $1.3B in new sales annually• Decreases order processing costs for sellers• Increases fully compliant orders for buyers
    11. 11. • Instant access to new sources of supply• Reduced costs and increased quality• Made in the USA supported business growth
    12. 12. • Fueled project growth with access to working capital• Accelerated cash flow by leveraging discounts• Provided flexibility for buyers to engage with them
    13. 13. Ariba Partners
    14. 14. Microsoft Dynamics
    15. 15. Microsoft Dynamics
    16. 16. Microsoft Dynamics and Ariba + Industry Leading Business Solution The World’s Business Commerce Network• Combine the world-class capabilities of Microsoft Dynamics with the industry leading Ariba commerce network• Single solution for all trading partners regardless of their infrastructure needs and capabilities• For Buyers: increase cost savings and efficiency automating all spend types and Supplier relationships• For Sellers: grow your business connecting with qualified Buyers via the networked economy
    17. 17. Dynamic Business ( Administrative Core Industry Horizontal Relationship Operational Workloads Operational Workloads Management Workloads
    18. 18. Microsoft at Ariba Live• Booth # 39• Breakout Session & Happy Hour: Thursday, April 12th, 3:15 PM “Plugging into the Networked Economy – Dan Schuster (Microsoft) with Microsoft and Ariba” – Joe Fox (Ariba) Chance to Win an Xbox and Kinect!