1. The Extraprise:
B CC
Using Collaborative Commerce
to Extend the Value of Your
ERP and Maximize Supply
Chain Performance
Najib Zouggar - Air Liquide
E-Procurement Manager & Supplier
Pole Coordinator
Valeris Villard - Air Liquide
European Referential Analyst & E-Catalogs
team leader
John Lark
Marketing Director - Ariba
© 2012 Ariba, Inc. All rights reserved.

2. Agenda
• Air Liquide
• Understanding the Extraprise
What is the Extraprise and why does it matter?
Real-World Results
Steps to Success
2 © 2012 Ariba, Inc. All rights reserve.

3. 3 © 2012 Ariba, Inc. All rights reserved.

4. Air Liquide, the World Leader in Gases
for Industry, Health and the Environment
Present in
80
countries
43,600
employees
Revenue
€13.5
billion
4 © 2012 Ariba, Inc. All rights reserved.

5. The World Leader in Gases for…
Industry Health Environment
 Forreducing
polluting emissions
 For hospitals
• For a wide range of  Forproducing
industrial processes  Forhomecare the energies of
for customers: patients tomorrow
energy, metals, food, c  Forhygiene and
hemicals, pharmaceuti disinfection
cals, automotive …
5 © 2012 Ariba, Inc. All rights reserved.

6. European Procurement Target Operating
Business Model
OBJECTIVES Sourcing Methodology
Sourcing
 Category Managers
Improving  Analysts
 P&L Savings Savings  Compliance auditor
 Compliance to forecasted
European agreements
Procurement Family Policy
Accounting Requisitioning
Referentials
Guide users
Roles & processes to the right supplier (Suppliers, Catalogs)
segregation  Requesters
Receipt Goods
PROCURE TO PAY
according to  Requisitionners
Compliance
Group Audit
Create PO
Improving
Process efficiency Invoice Receipt / PO
Savings  Accountants
Realized
6 © 2012 Ariba, Inc. All rights reserved.

7. Results and Benefits
• User-friendly application: Good feedback from End Users
• Compliance enabler on European or local agreements
• Requisitioning process under Procurement control
• Control of « Out of catalog » purchase by Procurement Requisition
• 70% per-PO Cost Reduction
♦One PO costs 25€ using e-procurement instead of
90€ in the past.
7 © 2012 Ariba, Inc. All rights reserved.

8. European E-Procurement at AL from
January, 2011
Ariba APC (1 realm)
Ariba P2O (1 realm)
PM PM
SRM SRM
ERP
Opera E2 ERP
ERP
23 affiliates 5 affiliates
Out of Opera scope
Old E-proc tool
~ 25 affiliates To be closed
(Commerce One)
8 © 2012 Ariba, Inc. All rights reserved.

9. B@ALi2 Solution Overview
SC: Shopping Cart
ARIBA’s Network POR: Purchase Order Confirmation
SN: Ship Notice
(Supplier’s access)
File Transfer
POC
SN
Automatic Scope
E-Catalogs  Indirect
B@ALi2 PO
procurement
Automatic sending  Direct Procurement
SC SC Goods (with some
transformat
creation validation Receipt limitations)
ion into PO Outside
REQUESTOR MANAGER  Purchase on
(BUDGET) AL Network catalog & out of
catalog
 Open Purchase
Orders
INVOICE
Affiliate’s ERPs Receipt
• SaaS (Software as a Service) solution chosen
„Turn-Key‟ solution, well-tried (Proof of Concept), low running costs compared to hosted solution
• European CORE system : one single application for all Affiliates
• E-Catalogs Management
Centralization of the E-Catalogs management at European level through an external supplier
9 © 2012 Ariba, Inc. All rights reserved.

10. Deploying B@ALI2: Pre-requisites
and Organisation
• Minimal pre-requisites to start the project
Have identified a Local Project Team:
– Business Project Manager / IT team / KeyUsers
Use the Group Procurement classification
Have a cleaned Suppliers DataBase or a project starting on this topic
Have Procure-to-Pay processes in place or a project starting on this topic
Have Procurement validation process (release strategy) in place
Have Internet connections available for EndUsers via AL network
Have SFTP protocol for files transfer (interfaces with ERPs)
Have Referential Management Tool implemented at Go-Live for Suppliers and Catalogs
requests (creation, updates, deletion)
• A checklist (« Impact study ») exists and is reviewed with
the affiliate some months before the deployment
10 © 2012 Ariba, Inc. All rights reserved.

11. B@ALI2 – Processes Scenario
 Air Liquide B@ALi2 Welcome Page
 HERMES categories
 Key words
 Sub-categories
 From Purchase Request (PR) to Purchase Order (PO)
Automatic PO sent via Ariba’s
PR PO creation Network
OR PO sent manually Supplier
Requester Manager for
Budget
approval
 Purchase on catalogs
 Approvers thanks to Delegation matrix (Cost center or project or Investment, Amount)
 The manager approves the Purchase Request off-line (through e-mail)
 Purchase Order is created automatically and sent through the Ariba Network or sent
manually if supplier not linked to Air Liquide
 Goods Receipt is done by the Requester
 Purchase out of catalog
 Requisitioner is involved in the process as an approver. He is guarant of the Procurement
policy
Requester Manager Requisitioner Supplier
11 © 2012 Ariba, Inc. All rights reserved.

12. B@ALI2 - Success Story
• Feedback on 2011 deployments
Benefits
User friendly application: Good feedback from End Users
Compliance enabler on European or local agreements
Requisitioning process under Procurement control
Control of « Out of catalog » purchase by Procurement Requisitioners
Points of attention
Some subjects must be taken into consideration before starting the project (it requires
time)
– Suppliers database (cleaning, data enrichment)
– Catalogs
– Integration into ERP
Procure to Pay: process & organization initiated
Change Management must be done all along the project
– Define and communicate organization changes (if required)
– Training must be held by Business with the support of Key Users
– Documentation must be localized for the affiliate(s)
Key Users must be defined/nominated at the beginning of the project
– Well known of the application at Go-Live -> best support to end users
12 © 2012 Ariba, Inc. All rights reserved.

13. European Procurement Organization
European Procurement Platform European IT / IS Platform
Finance & Controlling Sales & Marketing
Direct Procurement Indirect Procurement tools
Category Managers Category Managers tools
Maintenance tools Logistics tools
Business Process
European Manager Supply Chain tools
Procurement Etc.
Referential E-Procurement Procurement tools Maintenance
team Manager (SAP, E-procurement..)
 Centralization of Referentials
 Centralization of Procurement Evolution Requests
 Validated by Procurement before its implementation by IT/IS platform
13 © 2012 Ariba, Inc. All rights reserved.

14. Centralization of Procurement Referentials
• Managing Referentials for European affiliates
AFFILIATE EUROPEAN PROCUREMENT
PLATFORM
Referential*
Management
Tool
Need validation of European
Business Referential Category Managers?
domains Administrator
 Local Referential Administrators in affiliates
 Validation by domains (local or Europe)
REFERENTIAL TEAM
Operates in Procurement tools
(*) Referentials: Suppliers, Catalogs, materials (SAP, E-Procurement)
14 © 2012 Ariba, Inc. All rights reserved.

15. Hindsight
• Hindsight
Ariba P2O (integrated with JDE, Movex, SAP)
– Using almost 12 months (deployed in Jan. 2011)
Ariba APC (integrated with SAP SRM&PM)
– Using almost 12 months (deployed in Jan. 2011)
• Our most important issues
Master Data (Suppliers, Catalogs) management
– Complexity
– Volume (6,000 suppliers) vs. system performance
– European requirements (catalogs in two currencies for Switzerland, etc.)
PO Layout
– 80% of PO printed (1% of suppliers registered into Ariba Network)
– One layout for the realm
Operational Reporting
– Arduous
 Our Ariba Customer Success contact: Jonathan Kiefe
15 © 2012 Ariba, Inc. All rights reserved.

16. Hindsight
• Releases and Support Services
New release
– Copy of Production environment provided to customers for testing purpose
– Do not forget to foresee/do a Non-regression testing campaign
– Feedback on our first release migration
» No issues during this testing campaign
Support service
– Escalation needed sometimes
– Good reactivity globally
16 © 2012 Ariba, Inc. All rights reserved.

17. Main Strength / Weaknesses / Pre-requisites
• Main strength (before / after project)
Good exchange, honesty
Be able to mobilize good consultants
Good project quality following-up
• Weaknesses (before / after project)
Project closure modalities (after 10 weeks in standard)
Ariba‟s Internal Organization (lots of different contacts)
Application maintenance via csv files
– Complex to manage at all levels
Some elements exceeded initial project scope so had additional costs
Supplier onboarding took more time than anticipated
• Project Pre-requisites
Central Organization for Application and Referentials management
Procurement Organization in affiliate(s)
Functional needs clearly defined and common for all affiliates
17 © 2012 Ariba, Inc. All rights reserved.

18. Next Steps
• Build an E-Procurement roadmap
• Continue to deploy B@ALi2
(Our European e-procurement CORE solution)
18 © 2012 Ariba, Inc. All rights reserved.

19. Agenda
• Air Liquide
• Understanding the Extraprise
What is the Extraprise and why does it matter?
Real-World Results
Steps to Success
19 © 2012 Ariba, Inc. All rights reserved.

20. eProcurement Is No Longer New
No plans to purchase or deploy 20%
Level of eProcurement Maturity
Plan to deploy beyond 12 months 3%
Plan to deploy within 12 months 10%
Purchased not using 6%
Less than one year 3%
1 to 2 years 10%
3 to 4 years 16%
5 to 8 years 18% 48%
More than 8 years 14%
0% 5% 10% 15% 20% 25%
Percentage of Respondents, n=156
Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010)
Source: AberdeenGroup
20 © 2012 Ariba, Inc. All rights reserved.

21. The Rise of the Networked Enterprise –
Enabled by Collaborative Technology
“Increasingly companies are
embracing collaboration as part
77% of their strategy to grow.”
increased
access to 63%
55% knowledge
increased
marketing
better
41% information
sharing
effectiveness
43%
improved greater
collaboration market
across
silos 24% share
increased
revenue
8%
higher
margins
“ Networked enterprises are 50% more likely 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 2010
21 © 2012 Ariba, Inc. All rights reserved.

22. Inefficient Processes Between Companies
Hinder Results The Extraprise
THE CORPORATE EPIDEMIC
Transactions completed manually: 80% Cost of ineffective business collaboration:
(Source: Celent Communications)
12-month decline in B2B marketing impact: 50%
(Source: Marketing Sherpa)
€500 BILLION
(Source: Basex Research)
Revenue leaked due to compliance issues: 5%
(Source: Aberdeen Research)
22
© 2012 Ariba, Inc. All rights reserved.

23. The Extraprise Is about Understanding
Your Business Partners
1 Buyer 20 Suppliers
● Supplier Enablement and value creation is crucial to procurement success
● Without Supplier success, Buyer opportunities fall short
23 © 2012 Ariba, Inc. All rights reserved.

24. Making 1-to-1 Connectivity Messy
for Even Just a Few Suppliers
Sourcing / Discovery
Catalog Maintenance
Contract Management
Source-to-Settle Processes
Purchase Requisition
Local ERP
Cost Assignment
Contract Compliance
Approval Workflow
Buyer’s tools
Purchase Order
Management
Shipment Notice Visibility
Goods/Service Reception
Invoice / Approval
Payment Booking
Cash Management
Discount management
24 © 2012 Ariba, Inc. All rights reserved.

25. And to Extend Influence to All of
Your Suppliers Becomes Impossible
Sourcing / Discovery
Catalog Maintenance
Contract Management
Source-to-Settle Processes
Purchase Requisition
Local ERP
Cost Assignment
Contract Compliance
Approval Workflow
Buyer’s tools National ERP
Purchase Order
Management
Shipment Notice Visibility
Goods/Service Reception
Invoice / Approval
Payment Booking Global ERP
Cash Management
Discount management
25 © 2012 Ariba, Inc. All rights reserved.

26. So eProcurement Challenges Remain
• Multiple instances of ERP platforms
• Duplicated efforts on eProcurement systems
• Inability to connect with multiple suppliers
• Low levels of eProcurement adoption
• Low levels of Supplier Network adoption
• Need to harmonize approaches for onboarding Catalogs,
Purchase Orders and Invoicing
• Struggle between IT and Procurement needs (CIO v. CPO)
Sources: CFO Research; Aberdeen, Ariba Live 2012
26 © 2012 Ariba, Inc. All rights reserved.

27. Managed Spend Underperforms
61%
27 © 2012 Ariba, Inc. All rights reserved.

28. Spend Management Is Falling Short
Incomplete coverage of spend types / catalog categories in
corporate eProcurement systems 35%
Confusion on policy and requirements for buying products or
services 27%
Employee reluctance to use the eProcurement system(s) currently in
place 27%
Difficulty in understanding and/or leveraging information generated
in the eProcurement system 21%
Increased operational cost of IT management for existing
procurement solutions 19%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Percentage of Respondents, n=156
Effective eProcurement: Assessing Options for the New Economic Normal (Nov 2010)
Source: AberdeenGroup
28 © 2012 Ariba, Inc. All rights reserved.

29. And You’re Pushed Harder to Change
According to CFO Research…
61% of you will have
increased cost
savings targets
44% of these targets
will be greater
than 5%
Creating
Procurement
Process Efficiencies
is the top priority for
CFOs
Source: CFO Magazine survey of 263 senior finance executives
29 © 2012 Ariba, Inc. All rights reserved.

30. Top Initiatives Are Reducing Costs
and Collaboration
30 © 2012 Ariba, Inc. All rights reserved.

31. The Personal Version of Extraprise
Communication
Shopping & Collaboration
Entertainment
Research
31 © 2012 Ariba, Inc. All rights reserved.

32. A Business Commerce Network
Is the Gateway to the Extraprise
Sourcing / Discovery
Catalog Maintenance
Contract Management
Source-to-Settle Processes
Purchase Requisition
Local ERP
Cost Assignment
Contract Compliance
Approval Workflow
Buyer’s tools National ERP
Purchase Order
Management
Shipment Notice Visibility
Goods/Service Reception
Invoice / Approval
Payment Booking Global ERP
Cash Management
Discount management
32 © 2012 Ariba, Inc. All rights reserved.

33. Value of the Extraprise
33 © 2012 Ariba, Inc. All rights reserved.

34. Buyers Win
Reduce process costs
Reduce Procurement
by 25-60%
cycles by 50-70%+
Source: 2011 Hackett P2P Study
Source: 2011 Hackett Procurement Benchmark Source: 2011 Hackett P2P Study
Source: 2011 Hackett Procurement Benchmark
34 © 2012 Ariba, Inc. All rights reserved.

35. And Suppliers Win…
• $10M in annual transactions
• Support to 25 Customers
• 10-15% of our new account revenues are directly a
• 25% Annual Growth result of Ariba Network membership
• 25% of total order volume is transacted via the
Ariba Network
eInvoicing eliminated
rekeying, resulting in 83% lower
error rate which reduced DSO by
75%
99% customer retention rates – (10 to 15%
better than industry average, per Forrester)
and 30% growth in accounts
Reduced manual intervention and
errors, lowering processing costs
from $8 to $2 per purchase
35 © 2012 Ariba, Inc. All rights reserved.

36. Network Development Is Strategic…
Wave I
• Enable core spend categories
• Automate basic requisition-to-order workflow
• Improve policy, contract, and pricing compliance
• Integrate to back-end finance and ERP systems
Wave II
• Enable more users and supplier relationships
Solution Scope
• Expand to manage larger, more complex spend
categories (business services, MRO, etc.)
• Enhance collaborative procurement capabilities
Wave III
• Expand procurement efficiencies and cost
savings to global users and suppliers
• Automate and integrate broader source-to-
settle processes
• Enhance strategic impact via Discount
Mgmt., Supply Chain Financing, etc.
4 wk 16 wk N wk
36 © 2012 Ariba, Inc. All rights reserved.

37. AND… Considers All Spend Types
Spot Buys
Simple Services
Goods with Options
Contracts
Complex Services
And much more
Goods
37 © 2012 Ariba, Inc. All rights reserved.

38. Extraprise = Improved Efficiency
across the Entire Global Business
Environment
Sourcing / Discovery
Catalog Maintenance
Contract Management
Source-to-Settle Processes
Purchase Requisition
Local ERP
Cost Assignment
Contract Compliance
Approval Workflow
Buyer’s tools National ERP
Purchase Order
Management
Shipment Notice Visibility
Goods/Service Reception
Invoice / Approval
Payment Booking Global ERP
Cash Management
Discount management
38 © 2012 Ariba, Inc. All rights reserved.

39. Real-World Results
39 © 2012 Ariba, Inc. All rights reserved.

40. Results
Suppliers – 1st 12 months – 500 active relationships
(150 new suppliers through PO quick enablement)
Internal Users – 250 throughout nine divisions
POs – 1st 12 months – 25,000
Invoices – 1st 12 months – 35,000
Discounting – Standing and dynamic plans/Discount Pro
40 © 2012 Ariba, Inc. All rights reserved.

41. Results
• Implemented with:
100+ suppliers
15 catalogs
1,282 users, across six divisions
• Increased awareness:
300+ additional new users in five months post go live
50+ suppliers added
Averaging 1,200 requisitions/month
41 © 2012 Ariba, Inc. All rights reserved.

42. Results
• Addressable spend down 24% vs. 2008 baseline
• Spend down 3.6% most recent YTY
• Spend Under Management at 54% (and rising)
• Compliance at 50% (continued challenges)
• Procurement function expense = 0.28% of spend
• Vendor Management Program established
• Over 2,000 suppliers enabled within system
42 © 2012 Ariba, Inc. All rights reserved.

43. Results
Integrate w. PeopleSoft
E-Procurement Implementation Activities
Months After Project Start
System Testing
Initial User Training
Begin Wave 1 Savings (Full savings 6 mo later)
Enable Wave 1 Suppliers
Begin Wave 2 Savings Ramp-up
Enable Wave 2 Suppliers
Begin Wave 3 Savings Ramp-up
Enable Wave 3 Suppliers Begin Wave 4
Enable Wave 4 Suppliers Savings Ramp-up
3 6 9 12 15 18 21 24 26
Cumulative Savings
$ MM
Q1 $0.00
Q2 $0.00
Q3 $0.08
Q4 $0.37
Q5 $1.31
Q6 $1.91
Q7 $3.00
Q8 $4.32
Q9 $7.07
43 © 2012 Ariba, Inc. All rights reserved.

44. Five Steps to Extraprise Success
• Obtain Executive Sponsorship
• Clarify Vision (Network Strategy, Training)
• Determine Waves
• Define Metrics (Process, FTE, First Match, Days to OK
to Pay, x% of Spend)
• Report / Maintain visibility
44 © 2012 Ariba, Inc. All rights reserved.

45. Resources
• Aberdeen Benchmarking Report:
http://resourcecenter.aberdeen.com/GL/27-procure-to-pay/
• Reaching New Heights: The Dividends of Collaboration
between Finance and Procurement
http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=871
• Ariba LIVE Replays:
http://www.slideshare.net/ariba
45 © 2012 Ariba, Inc. All rights reserved.

46. Share This Session…NOW…from
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• Share via email or social media
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46 © 2012 Ariba, Inc. All rights reserved.

47. Q&A
Contact info:
John Lark JLark@ariba.com
47 © 2012 Ariba, Inc. All rights reserved.

48. E-procurement
• Back-up slides
48

49. Integration = Files Tranfer PO &GR
• 2 information are exported from B@ALI2 :
Purchase Orders (PO) & Good Receipts (GR) PO_AFFILIATE
! SFTP TRANSFER !
ARIBA.zip PO
PO & GR Split by PU
B@ALI2
ARIBA system
! SFTP TRANSFER ! GR_AFFILIATE
GR
ARIBA ALSEIS AFFILIATES
INTEGRATION IN AFFILIATE’s ERP
PO
Naming Convention to
define per PU during
• PO & GR files :
Project / Workshop
½ Interface for Integration to be
GR managed by the Affiliate (Gap
Analysis, Mapping, Devt …)
49