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Success in the Networked Economy


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Paul Melchiorre, Ariba Global Vice President, presentation at the San Francisco Ariba Commerce Summit on Success in the Networked Economy.

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Success in the Networked Economy

  1. 1. San Francisco October 25, 20111 ** Ariba Confidential© 2011 Ariba, Inc. All rights reserved.
  2. 2. Success in theNetworked EconomyPaul Melchiorre, Ariba Global Vice President
  3. 3. Ariba Acquires b-process, France’slargest electronic invoice network Europe’s leading provider of collaborative E-invoicing solutions World’s Business Commerce Network Grows Even Stronger
  4. 4. Your World is Being Shaped by Macro-TrendsCloud, Communities, Mobile Cloud Computing Social Media/ Communities The Networked Economy Enterprise Apps 4 © 2011 Ariba, Inc. All rights reserved.
  5. 5. You’re Seeing This in Your Personal Lives… Networks Have Changed Your Personal Life Shopping Entertainment Communication & Collaboration Research5 © 2011 Ariba, Inc. All rights reserved.
  6. 6. …And Businesses Want It Too Inter-Enterprise Collaboration is the New Competitive Competency “Tighter collaboration with customers, suppliers, and “Increasingly companies partners, achieved by having a are embracingtech-savvy supply chain is key to collaboration as part of steering through unpredictable their strategy to grow.” economic environment.” “The underlying benefit of cloud computing is improved collaboration, both within the organization and externally… trading partners benefit from being able to collaborate using a common platform.”6 © 2011 Ariba, Inc. All rights reserved.
  7. 7. And For Good ReasonBenefits of the Networked Enterprise 77% increased access to 63% increased 55% knowledge marketing better effectiveness 41% information sharing 43% improved greater collaboration market across silos 24% share increased revenue 8% higher margins “Networked enterprises were 50% more likely than their peers to have increased sales, higher profit margins, gain market share, and be a market leader.” Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” Survey of 4,394 executives. December 20107 Ariba, Inc. 2011 All rights reserved.
  8. 8. Our Vision: The Next Wave of Productivity: Efficient Collaboration Between Enterprises Community Technology Capabilities 1980’s 1990’s-2000’s Today Desktop OS Backoffice OS Inter-Enterprise OS“Employee Productivity” “Enterprise Productivity” “Value Chain Productivity”8 © 2011 Ariba, Inc. All rights reserved.
  9. 9. The Impact of Poor Collaboration is Big Wanted: Better Business Commerce9 © 2011 Ariba, Inc. All rights reserved.
  10. 10. Collaborative Business Commerce: There is a better way10 © 2011 Ariba, Inc. All rights reserved.
  11. 11. Benefits of Networked Business Collaborative Business Commerce Added Value for Buyers and Sellers• Buyers • Sellers Reduce operating costs 70% or more Average DSO reduction of 5.6 days 12%-15% savings from sourcing Increase sales by 15% $2M discount savings/$B in spend 98% customer retention rate Cut $9M of contract leakage/$B in spend New biz opps with largest buyer community 11 © 2011 Ariba, Inc. All rights reserved.
  12. 12. Collaborative Commerce Successes -- Buyer Value -- -- Seller Value --  First customer increased their spend total from 10% to a 100% single-sourced relationship  50% of suppliers were already in the Ariba Network  Today, 15% of our total revenues come to us via the Ariba Network.  20% reduction in staffing costs just from PO-Flip™  $3 Million in savings in the first year  65% of new customer relationships  Daily visibility into global MRO Spend are sourced via our participation in  Increased Leverage with Suppliers the Ariba Network  10-15% of our new account revenues are directly a result of Ariba Network membership  100% spend process compliance  25% of total order volume is transacted via the  75% supplier record reduction Ariba Network  2 day effort to connect SAP to Ariba12 © 2011 Ariba, Inc. All rights reserved.
  13. 13. 13 © 2011 Ariba, Inc. All rights reserved.