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SIG Is Opening Doors Worldwide

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SIG Is Opening Doors Worldwide

  1. 1. The SIG Webinar will begin shortly. Once the webinar begins, the sound will come from your computer speakers. In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen and plan to join us if you are in one of these cities this fall. NETWORKING EVENTS GLOBAL SUMMITS Mar 10-12 2015 – Amelia Island SYMPOSIUMS March 25 – Minneapolis, MN May 20 – Toronto, Canada REGIONAL ROUNDTABLES Feb 4 – Seattle, WA Feb 25 – Hartford, CT Apr 15 – Sydney, Australia Apr 29 – Chicago, IL For more information and to register for all SIG events: www.sig.org
  2. 2. Become a SIG Champion and earn points in the process by… • Attending an event • Dialing into a webinar • Speaking at a Summit • Submitting content to our blog or SRC • Referring a new member • And more For more information and to register for all SIG events: www.sig.org
  3. 3. RECENT POSTINGS The SIG Career Network is bursting with opportunities. New jobs are posted daily by some of the best known global companies in the world for those seeking careers in sourcing, outsourcing, procurement and related functions. For more information go to: www.sig/career-center.org NEW to the Career Network! • Illinois Tool Works – posted Jan. 30 • Senior Analyst – Procurement BI • Senior Analyst – Training and Tools • Holyoake Search Group – posted Jan. 29 • Strategic Sourcing Specialist – MRO • Director of IT & Telecom Sourcing • Senior Strategic Sourcing Manager • Strategic Sourcing Associate - IT • Director of Strategic Sourcing • HBO – posted January 21: • Procurement Manager • Buyer • Ecolab – posted January 20: • Procurement Manager • Ecolab – posted January 14: • Procurement Manager – Packaging • Procurement Director – Travel & Fleet
  4. 4. bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebookbit.ly/SIGYouTube Join the discussion in SIG’s Peer2Peer Resource program too! Stay connected with other SIG members through various social media channels SOCIAL MEDIA bit.ly/SIGBlog
  5. 5. New Topic Each Week 2:00 pm Eastern (11:00 am Pacific) Upcoming Free SIG Webinars: February 10, 2015 Cybersecurity and Privacy Issues in Sourcing Support of M&A Deals Presented by Mayer Brown February 26, 2015 6 Reasons Why Procurement Loves SOW Programs Presented by PeopleFluent March 17, 2015 Thought Leadership Presented by Canon Business Process Services Register at www.sig.org For more information and to register for all SIG events: www.sig.org
  6. 6. Upcoming Town Hall Teleconference: February 11th The Keys You Need for Acquiring and Managing Talent Presented by: Clyde Dornier Independent Consultant SIG Town Hall Teleconferences bring a small group of buy-side ONLY attendees together for a facilitated discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded. Calendar of Town Hall Teleconferences Taking place at 1:00 pm Eastern on the following dates: February 11 August 12 April 8 September 9 May 13 October 14 June 10 November 11 July 8 December 9 For more information and to register for all SIG events: www.sig.org
  7. 7. SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users Symposiums 2015: Minneapolis – March 25 Toronto, Canada – May 20 Columbus – Sep 16 New York– Oct 15 San Francisco Bay Area – Nov 13 Regional Roundtables 2015: Seattle – Feb 4 Hartford – Feb 25 Sydney AU – April 15 Chicago – April 29 Houston – May 6 For more information and to register for all SIG events: www.sig.org
  8. 8. A SIG Global Summit is… • Non-commercialized • Almost 70% buy-side • Global brands • 3 days of networking • Executive Roundtables • Nearly 50 breakout sessions 69% at director level or above, of which 43% are VP/C-level; Recent speakers include: www.sig.org/summits.php Dr. Kenneth Sullivan Next Practices in Leadership and Sourcing: Create Value for the Greater Good Randy Lewis Adding Meaning to Your Mission: Improving Results While Making the World a Better Place Steve Peterson The Source of Value: Research-based Insights into How Procurement Drives Value Keynote speakers:
  9. 9. Ariba® Contract Management Facilitating Signature and Compliance February 3, 2015
  10. 10. 10© 2014 Ariba - an SAP company. All rights reserved. Speakers Leslie Martensen is senior product manager for Ariba Contract Management Solution. In this role, she is responsible for the Contract Management solution including, new features, roadmap and plan. Leslie has been with Ariba for almost 5 years. She started as the senior product manager for Ariba Platform and became senior product manager for Ariba Contracts Management in June of 2012. Before joining Ariba, Leslie worked as senior product manager at Callidus Software for 10 years where she was responsible for the Callidus TrueComp product strategy, features and roadmap. She also spearheaded the new product design for the Callidus TrueResolution product. Michael Koch, Director, Ariba Solutions Marketing, has been with Ariba since 2011, He is responsible for Sourcing and Contract Management. Michael has held positions in the Network Growth and the Customer Management Organization within Ariba. He has worked with some of the larger and tenured customers as well as new customers joining Ariba. Prior to Ariba, Michael worked in Marketing and Product Development at MasterCard and GE.
  11. 11. 11© 2014 Ariba - an SAP company. All rights reserved. Topics  Introduction  Typical Contract Management Business Requirements  Solution Overview and Differentiators  Customer Success in Action  Demo
  12. 12. 12© 2014 Ariba - an SAP company. All rights reserved. Increased Globalization  Expansion into new markets  Global process standardization  International supply chains Economic Volatility  Volatility in markets  Decreased stock valuation  Slow economic growth Pressure on Margins  Profitability by segments  Decreased budgets and spending  Determination of the cost to serve Focus on Risk  Supply chain disruption  Financial risk and fraud  Commodity risk New Business Models  Shared services organizations  Business partnerships  Leveraging big data for decisions Regulatory Changes  Increasing disclosure requirements  Country-specific regulations  Industry-specific disclosures CPOs Need Help to Navigate a Changing Environment Competing Pressures on Procurement Organizations
  13. 13. 14© 2014 Ariba - an SAP company. All rights reserved. Contract lifecycle management Risk management, visibility, and compliance concerns are paramount Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012 Top 5 reasons cited Establish better control of enterprise spend66% Poor visibility of contractual relationships44% Pressure to reduce supply and supplier risk40% Need to improve compliance37% Poor visibility into supplier performance on contracts34% Contract lifecycle management technology provides an opportunity for procurement organizations to take contract maintenance out of the hands of legal counsel while allowing them to focus on increasing efficiency and driving cost savings.*
  14. 14. Contracts of the future will be seen as instruments to describe and safeguard the delivery of economic value and will achieve this through an apportionment of risk and responsibilities that is appropriate to the capabilities of the contracting parties and the nature of the transaction.* *Source: THE FUTURE OF CONTRACTING : Ariba and IACCM 2012
  15. 15. 16© 2014 Ariba - an SAP company. All rights reserved. Ineffective Contract Lifecycle Management Results in Increased Compliance Risks Draft Contract Negotiate Contract Approval/ Signatures Storage/ Repository Manage Compliance Admin/ Optimize Creation Visibility Performance Management  Inconsistent and email-intensive processes  Long Negotiations approval cycle times  Lack of tight controls ( e.g. for non standard contracts /language  Legal Risk  Organizationally dispersed contracts  Redundant contracts  No visibility into commitments (financial, legal)  Inability to track regulatory compliance or understand contract history  Poor contract compliance ( PO, Invoice, SLAs )  Poor renewals management  Lack of performance information hinders re- sourcing or resale efforts .
  16. 16. 17© 2014 Ariba - an SAP company. All rights reserved. 60% of corporate litigations are related to contract disputes Source: Fulbright & Jarowski 2010 Annual Litigation Survey
  17. 17. 18© 2014 Ariba - an SAP company. All rights reserved. Companies Leveraging Contract Management Solutions Drive Superior Procurement Results* * Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012 Laggards – Bottom 30% Industry Average – Middle 50% Best in Class – Top 20% 67% 4% 8% 45% 8 16 Spend Under Management Average Days for Contract Review & Approval Realized Contract Savings 79% 17% 47 Up to 50 percent reduction in contracting cycle times More than 50 % increase in realized contract savings 25% increase in Spend Under Management
  18. 18. 19© 2014 Ariba - an SAP company. All rights reserved. - - - - Leading to Better Visibility and Compliance* Stated Benefit Contract Management Metric Best-in- Class All Others Spend Visibility Compliance by Suppliers to Service Level Agreements 75% 58% Contract Visibility Percent of suppliers managed under contracts 71% 51% Supplier Visibility Percentage of supplier contracts stored in a central repository 75% 52% * Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
  19. 19. 20© 2014 Ariba - an SAP company. All rights reserved. These are the Challenges We Hear From Our Customers Legal  Weak Contract Management. Poor contract compliance, belated renewals management, and lack of performance information  Ineffective Contract Creation. Lack of tight contract authoring controls, creating legal risk  Poor Contract Visibility. Dispersed and redundant contracts and the inability to track regulatory compliance or understand contract history  Disconnected Negotiation Processes. Inconsistent and e-mail- intensive processes, long negotiation and approval cycle times, and risk of not including the correct stakeholders  Slow Time-to-Value. Poor user adoption, lengthy deployment, and limited process and data integration
  20. 20. 21© 2014 Ariba - an SAP company. All rights reserved. What if you could…?  Manage all of your agreements on an integrated SaaS platform  Address your complex scenarios with robust, configurable workflows  Leverage pre-built best-practice templates and workflows  Execute contracts electronically making the contracting process 100 percent paperless  Improve collaboration with suppliers via the Ariba Network  Incorporate deployment and best practices services in order to achieve your ROI  ...And receive all of this in a single subscription pricing model with no hidden or additional costs? Average $3.5 million in annual savings with 14x ROI on a $250K investment from an Ariba customer:  $1M to $2M due to improved efficiencies in contract search and visibility  $1M to $2M due to contract creation efficiencies (eliminating rekeying, reduced time drafting, etc.)  $400K to $800K due to approval process improvements  $400K due to reduction in FTE support for ongoing enhancements (comparison of CD installed software vs. SaaS delivery model)  $350K with elimination of support and maintenance of CD software  Improved data integrity between contract data and transactional systems  Improved consistency and use of standard terms
  21. 21. 22© 2014 Ariba - an SAP company. All rights reserved. Topics  Introduction  Typical Contract Management Business Requirements  Solution Overview and Differentiators  Customer Success in Action  Demo
  22. 22. 23© 2014 Ariba - an SAP company. All rights reserved. Ariba Contract Management Supports the entire contract lifecycle Draft contract Negotiate contract Approval and signatures Storage and repository Manage compliance Admin and optimize Contract visibility and repository Contract execution and compliance Contract creation  Automates the contract creation cycle, from draft to reviews and approvals  Contract authoring tools, including clause libraries and conditional templates  Creates a contract repository with access- controlled search and reporting  Audit trail for internal and external and regulatory requirements  Deep, bidirectional integration within the source-to- contract process  Expiry notification for improved renewal management  Centralized electronic task-driven notification alerts  Rapid time to value with on-demand deployment  Microsoft Word integration  Integration to leading eSignature providers – DocuSign and Adobe EchoSign
  23. 23. 24© 2014 Ariba - an SAP company. All rights reserved. Delivering Optimized Contract Lifecycle Management  Improved Contract Management. Improved contract compliance, timely renewals management, and visibility to performance information  Effective Contract Creation. Tighter controls and minimized legal risk  Full Contract Visibility. Single repository for contracts, elimination of redundant contracts, visibility into commitments, and the ability to track regulatory compliance and understand contract history  Streamlined Negotiation Processes. Streamlined and controlled processes, abbreviated negotiation and approval cycles, and inclusion of the right stakeholders  Rapid Time-to-Value. Enables strong user adoption, delivers rapid on-demand deployment, and provides process and data integration
  24. 24. 25© 2014 Ariba - an SAP company. All rights reserved. Third Parties Agree: Ariba is THE Single Best-in-Class SaaS Solution for ALL Contract Types and Agreements More than four million contracts every day…  At Ariba, we help our customers manage more than four million contracts every day with than 500 total customers  Extensive experience and customer reach across both procurement as well as sales contracts Consistent Leader in CLM according to…  Gartner Magic Quadrant, June 2013  Forrester Research, SVM Toolset, Q1 2013 Benefits of OnDemand deployment …  Y1 TCO 5X-10X less than installed software  50% faster implementation cycles  25% more spend under management  2X-4X more innovation releases Sources: Aberdeen, AMR, Triple-Tree, Ariba Publication Date: June 2013 Gartner MAGIC QUADRANT Forrester WaveTM Q1 '13
  25. 25. 26© 2014 Ariba - an SAP company. All rights reserved. Ariba Contract Management (Buy and Sell) Driving Spend Compliance Across All Contract Types  Contract Creation • Contracts of any type: Buy, Sell, Internal/Corporate • Collaborative authoring – including integration with Procurement & CRM systems • Single point of access for sellers across all buyer relationships • Standardized contract creation from templates and clause libraries • Deep integration with the sourcing process for contract creation • Powerful workflow and approval engine controlled completely within the user interface  Repository, Reports, and Alerts • Customizable, role-based dashboard for contracts data • Advanced repository and search • Automated compliance monitoring and alerts  Compliance and Usage • Performance/audit management on contracts • Integration with back-end systems for automated P2P usage of agreements  eSignatures through DocuSign and Adobe Echosign  L1 Customer Support, BPC expertise, Setup included in Subscription  Out of box integration to Sourcing and P2P systems
  26. 26. 27© 2014 Ariba - an SAP company. All rights reserved. Contract Complexity Our Paper Their Paper Strategic Alliance Sales Agreements Leases Sales NDAPurchasing NDA eContracts Purchasing Agreements Ariba Contract Management Addressing ALL Contract Types
  27. 27. 28© 2014 Ariba - an SAP company. All rights reserved. Effective Contract Management is the Spend Management Linchpin • Includes all aspects of contract creation from initiation through execution • Questionnaire-based templates driving the contracting process configured to YOUR requirements • Powerful workflow and approval engine controlled completely within the user interface • Contract management without eSignatures is incomplete: leading electronic signature capabilities making contracting 100 percent paperless • Integrate data with your third party systems for streamlined process flows Contract Management with Ariba:
  28. 28. 29© 2014 Ariba - an SAP company. All rights reserved. • Centralized electronic contract repository permitting search and reporting across all relevant documents and correspondence (not only the contract itself) • Task-driven notification alerts scheduled or based on milestone events/dates • Expiry notification for improved renewal management • Improved collaboration and better contract fulfillment visibility resulting in more-satisfied trading partners • Improve ability to manage cash through improved revenue and payment forecasting and visibility Commitment Management with Ariba Commitment Management :
  29. 29. 30© 2014 Ariba - an SAP company. All rights reserved. Ariba® Contract Management eSignature Services in partnership with Adobe® EchoSign® and DocuSign® help customers to go INK and Paper free and close deals faster and more efficiently, increasing savings, revenue and productivity. Buy e rs E -S i gna ture P a rtne r S e l l e rs Ariba® Contract Management API’s Integration with leading Electronic Signature providers
  30. 30. 31© 2014 Ariba - an SAP company. All rights reserved. Electronic signatures Value Proposition Faster Contract Completion, Reduced Costs, Improved Controls Source: IDC White Paper, sponsored by Adobe, Bridging the Information Worker Productivity Gap: New Challenges and Opportunities for IT, September 2012.  Contracts completed in 1-2 days vs. 2-3 weeks  80% reduction in paper and supplies  Detailed audit information and compliance copies of every signed document
  31. 31. 32© 2014 Ariba - an SAP company. All rights reserved. The Market-Leading SaaS Solution to Better Manage Contracts & Commitments Key Imperative Why Ariba Contract Management? • Most widely adopted contract management provider with over 450 total customers • Manage the entire contract lifecycle for all agreements on an integrated SaaS, spend management / sales acceleration platform • Ranked as a leader by numerous independent analysts End-End Contract Management Improve Contract Management Efficiency • Flexible approach with configurable workflows in the contract management lifecycle incorporating all relevant activity and information • Process standardization tools driven by best practice templates to remove bottlenecks and improve overall contracting efficiency • Tightly integrated electronic signatures capabilities making contract execution more transparent, faster, and more secure • Configurable dashboards with robust search, reporting, and task driven alerts providing audit trails for operational and regulatory compliance for best value agreements • Enhance ability to manage cash through improved visibility and forecasting • Plug in to the Ariba Network to improve contracting efficiency and effectiveness while assuring your return on investment Manage Commitments More Effectively Driving ROI
  32. 32. 33© 2014 Ariba - an SAP company. All rights reserved. SaaS Data Security With Ariba, Your Sensitive Contract Data Is Secure Physical Security  24x7 guarded servers  Surveillance cameras  Motion detectors  Limited Ariba access  Biometric access control Data Security  Three layers of firewall protection  HTTPS – 128 bit encryption  Intrusion Detection System to monitor traffic for anomalous behavior  Password encryption with expiration  Access control entries on load balancers Availability & Reliability  99.5% uptime  Comprehensive backup schedule  Redundancy at all tiers: web, application, database  Proactive notification of downtime  24x7 disaster recovery plans & centers Security Certification  WebTrust audited every six months  Independent CPA has determined Ariba conforms to established principles  WebTrust principles: security, availability, processing integrity, privacy, confidentiality  Hosting facilities in the USA and EU and SAS70 certified
  33. 33. 34© 2014 Ariba - an SAP company. All rights reserved. Topics  Introduction  Typical Contract Management Business Requirements  Solution Overview and Differentiators  Customer Success in Action  Demo
  34. 34. 35© 2014 Ariba - an SAP company. All rights reserved. Ariba Contract Management delivers Measurable Benefits - - - - 350 Suppliers Enabled to-Date 85-90%+ Spend under Management 1.3 Billion Sourceable Spend 7500 Suppliers 100%+ Compliance within TopSource 1300 Contract Workspaces 11 Different Process for various departments Multi-Location Benefits
  35. 35. 36© 2014 Ariba - an SAP company. All rights reserved. 5500+ Contract Workspaces and signed till date 2-3 Billion Procurement Spend under contract 14 Categories managed 1200 Contracts signed through electronic signatures Ariba Contract Management delivers Measurable Benefits - - - -
  36. 36. 37© 2014 Ariba - an SAP company. All rights reserved. Customer Success in Action Deployed in four weeks! Strategic sourcing initiatives including spend visibility, sourcing, and contract management now on a single, integrated platform. “Having an external party such as Ariba to assist gives it a burst of energy. The concentrated focus from Ariba has been a great kick start and also reduces the ‘wheel spinning’ that can happen internally.” The contracting process, which might have taken six months before, has now been greatly reduced. What used to take two weeks now takes only 20 minutes with the push of a button” • Paper contracts with no central storage and limited visibility • Highly manual, disconnected processes with no reminders for contract-related tasks • Non-compliant purchases draining negotiated savings • Decentralized purchasing groups with few consolidated vendor agreements • Lack of IT resources to deploy software Issues Before Ariba: Some Notable Examples:
  37. 37. 38© 2014 Ariba - an SAP company. All rights reserved. Customer Success in Action Leveraging solution for many agreement types with benefits to Legal, Audit, Compliance, and Risk Management groups. “Ariba’s technology has allowed us to create and maintain a centralized contracts repository with rich search capabilities that we can leverage to achieve [our] goals. It’s a significant cost saving to owning and maintaining the software ourselves.” Over 120 facilities and 1,200 users leveraging solution for sell-side contracts with benefits including process standardization, organizational flexibility, and improved visibility into contract terms.  Paper contracts with no central storage and limited visibility  Highly manual, disconnected processes with no reminders for contract-related tasks  Renewal problems resulting in missed revenue opportunities  Approval bottlenecks, especially during crunch times, delay revenue and cash streams  Lack of IT resources to deploy software Issues Before Ariba: Some Notable Examples:
  38. 38. 39© 2014 Ariba - an SAP company. All rights reserved. runs Ariba Spend Visibility, Sourcing and Contract Management Challenges Solution Results  Variety of compliance issues including operational and regulatory  Requirement to centralize contract management process  Seeking to improve supplier relationships  Inefficient and costly contracting cycles longer than necessary and not driving significant value to company bottom-line.  Leverage strategic sourcing elements of the Ariba Commerce Cloud including Ariba Sourcing to improve collaborative sourcing processes  Deployed Ariba Contract Management to improve efficiency and effectiveness of contracting processes and to drive better compliance  Leverage Ariba Spend Visibility for sourcing pipeline building activities  Reduced contracting cycle times by 57 percent (average reduction from 30 to 13 days)  Reduced number of contracts “outsourced” and dependence on legal  Accommodated 12 percent increase in volume (35 percent based on weighted average of complexity) without addition to staff or reduction in service levels.  Provided much needed contractual visibility for M&A activity  Assisted in supplier rationalization efforts Get the full story from Robert Muszynski, Vice President of Contracts at Selective Insurance: http://bit.ly/96Lkf8 Reduced Contracting Cycle Times by 57 Percent Selective Insurance Group, Inc. is a holding company for seven property and casualty insurance companies rated “A+” by A.M. Best offering primary and alternative market insurance for commercial and personal risks, and flood insurance.
  39. 39. 40© 2014 Ariba - an SAP company. All rights reserved. runs Ariba Spend Visibility, Sourcing and Contract Management Challenges Solution Results  Shared drive with folders for templates acted as central storage vehicle  This approach offered little in the ways of capabilities, visibility, or scalability  No audit capabilities – a pressing requirement for a financial services organization  Data security was an ongoing concern – files could be updated or deleted without notice  No ability to do quantitative analysis of existing agreements  Poor collaboration between legal and functional groups  Deployed Ariba Contract Management and Ariba Sourcing in early 2009  Currently used by 20 sourcing professionals as power users  Usage extended to 30 approvers and over 300 analysts across the organization  Improved audit capabilities has been a tremendous benefit given the organization’s business and focus  Workflow and approvals assure that standardized processes are being followed  Data security of sensitive contract data in SaaS delivery model  Expiration notification allows business users to take action proactively  Ariba serves as a knowledge-base for language, terms, and agreements…something Experian plans to build upon in using clause library functionality in the future Audit of Contracting Critical for Organization Specializing in Risk Data Experian’s mission is to help businesses manage credit risk, prevent fraud, target marketing offers and automate decision making as well as providing individual credit scoring. Hear directly from Stacy Huffman, Financial Analyst at Experian, about their experience with Ariba Contract Management: http://bit.ly/aCYXc2
  40. 40. 41© 2014 Ariba - an SAP company. All rights reserved. runs Ariba Spend Visibility, Sourcing and Contract Management Challenges Solution Results  Lack of IT resources and budget to deploy software  28 disparate ERP systems, which is why they decided to go with a best-of-breed provider  Renewal management is a problem as they did not have visibility into contracts that were expiring  Interested in capturing all agreements (not only procurement)  Deployed Ariba Contract Management, Spend Visibility and Sourcing  Advantages were flexibility, ease of implementation, and single channel delivery  All configuration was performed by business, contributing to lower TCO  Deployed in four weeks!  Template-driven process easy to use and flexible  Powerful workflow capabilities have allowed better collaboration between procurement and legal  Now have visibility into expiring contracts  Strategic sourcing initiatives (spend analysis, sourcing, and contract management) are integrated on a single platform  Ariba has been a true partner, working with Stanley Works to set goals and create a plan to achieve them Stanley Black & Decker, Inc., formerly known as The Stanley Works, is a Fortune 500 American manufacturer of industrial tools and household hardware and provider of security products and locks headquartered in New Britain, Connecticut Reduced Contracting Cycle Times by 57 Percent
  41. 41. 42© 2014 Ariba - an SAP company. All rights reserved. Topics  Introduction  Typical Contract Management Business Requirements  Solution Overview and Differentiators  Customer Success in Action  Overview Demo
  42. 42. 43© 2014 Ariba - an SAP company. All rights reserved. Thank You !
  43. 43. 44© 2014 Ariba - an SAP company. All rights reserved. Questions?
  44. 44. 45© 2014 Ariba - an SAP company. All rights reserved. For Additional Information . . . . . . Michael Koch Director Solutions Management Ph: 1 203.270.0765 michael.koch04@sap.com
  45. 45. 46© 2014 Ariba - an SAP company. All rights reserved. Welcome to the cloud built for business

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