The Journey Begins: Pioneering Sellers Talk about their eCommerce Successes

1. #AribaLIVE The Journey Begins: Pioneering Sellers Talk about Their E-Commerce Successes Kim Breckwoldt, Geschäftsbereich Marketing - Online Marketing, Hawesko Martin Eberhart, CEO, TIPS Michael Hrobath, General Manager, Purchasing, TIPS Achim Oberhauser, Head of Corporate Business, Fleurop © 2014 Ariba – an SAP company. All rights reserved. @ariba

4. Who I am • Kim Breckwoldt • 17 years of sales experience • Graduated from Chamber of Commerce, Germany  eCommerce Manager  Communication  Industrial business management • Welcome gift I received from Hawesko  PunchOut catalogue © 2014 Ariba – an SAP company. All rights reserved.4

6. Who or What is Hawesko? © 2014 Ariba – an SAP company. All rights reserved.6 • 1999  New Media  Winegate.de 1999 - 2000 • 2000  Hawesko.de • 2006  8% online sales  SAP integration • 2010  10% online sales • 2013  Hawesko.de – Relaunch  30% online sales

9. Key Questions: Do companies need wine? What requirements has a B2B customer, compared to a private consumer? How We Integrated B2B in a B2C-Focused Company © 2014 Ariba – an SAP company. All rights reserved.9

10. How We Integrated B2B in a B2C-Focused Company © 2014 Ariba – an SAP company. All rights reserved.10 Why would companies buy wine? Claims Management Business Deals Customer Support ChristmasBirthday

11. How We Integrated B2B in a B2C-Focused Company © 2014 Ariba – an SAP company. All rights reserved.11 B2C Process B2B Requirements Call centre Account Management Wine specialists Special deals Order process is fully automated Individual process Different contacts for order, service, claims, invoicing, etc. WINE COMPETENCE SERVICE

12. How We Integrated B2B in a B2C-Focused Company The plan for our company’s e-commerce journey • Started with 400 B2B customers • Personal communication – VIP • Online was not common or required • No compliance • No other restrictions © 2014 Ariba – an SAP company. All rights reserved.12

13. 10 years later • Setup for 1st B2B Online Shop • KPI’s were structured • B2C and B2B process were the same Sales Order FrequencyMargin Requirements Company Size How We Integrated B2B in a B2C-Focused Company © 2014 Ariba – an SAP company. All rights reserved.13

14. How We Integrated B2B in a B2C-Focused Company • Organizational changes • Key Account Management goes Marketing • Splitting Online / Offline customers © 2014 Ariba – an SAP company. All rights reserved.14

15. A Journey to Success © 2014 Ariba – an SAP company. All rights reserved.15 • Call from a financial services company  Spend management  Expenses for Wine, Champagne & gifts about 500.000 €  Ariba  PunchOut catalogue  Hawesko as preferred standard supplier • Our Advantage  We were already registered on Ariba  We already had an online catalogue • 1st offer • No question about setup costs • No question about how or when we might reach the announced sales volume • Project team • Static catalogue started

16. • Automated e-invoicing started • Implementing more and more items and services to the catalogue A Journey to Success © 2014 Ariba – an SAP company. All rights reserved.16 • Set-up PunchOut catalogue • Connection to Ariba network • No automated process  Orders received by mail  No e-invoicing

17. A Journey to Success © 2014 Ariba – an SAP company. All rights reserved.17 The Relaunch • New requirements from both sides • Opportunity to automate our process • Workflow became overwhelming  10.000 order p.a. © 2014 Ariba – an SAP company. All rights reserved.17 Project Team Leader Customer & Me Customer Ariba IT Support IT - Hawesko eCommerce Support SAP Support Process Management

18. • Announced sales volume reached • E-invoicing automated • Order process fully automated • Customer requirements 100% fulfilled • E-invoicing automation still in progress A Journey to Success © 2014 Ariba – an SAP company. All rights reserved.18

19. Evaluation - Lessons Learned • Challenging process • Working in a B2C-focused environment is still tough  Even though it got a lot better by presenting business analysis and KPIs (sales volume, order amount, average order value, margin, gross profit) • Create Team-Spirit and keep your team motivated • Integrate decision makers to your team © 2014 Ariba – an SAP company. All rights reserved.19

20. Future Goals • Increasing online sales from 30% to 50% within 2 years  Both organization and consumer become more used to online buyer behavior  More efficient online marketing campaigns © 2014 Ariba – an SAP company. All rights reserved.20

21. THE JOURNEY BEGINS: PIONEERING SELLERS TALK ABOUT THEIR E-COMMERCE SUCCESSES Dr. Martin Eberhart, CEO, T.I.P.S Michael Hrobath, General Manager Purchasing © 2014 Ariba – an SAP company. All rights reserved.21

22. T.I.P.S. • T.I.P.S. company presentation  Our Vision  Our products • Why T.I.P.S. met Ariba  Requirement from Key Customer  The bumpy road to convince T.I.P.S.  The approach  Lessons learned  Future © 2014 Ariba – an SAP company. All rights reserved.22

23. T.I.P.S. Entire Solutions for Semiconductor Test © 2014 Ariba – an SAP company. All rights reserved.23 T.I.P.S. develops and manufactures highly reliable, customized solutions for micro-chip testing, to the highest quality standards, in the shortest time.

24. Who is T.I.P.S.? High technology company which • Develops and manufactures highly reliable, customized solutions for micro-chip testing • Founded 1997 by Dr. Rainer Gaggl, executive director & partner • > 70 employees • Location in Austria (headquarter) and Singapore • International customer base © 2014 Ariba – an SAP company. All rights reserved.24

25. Who We Are • Martin Eberhart, Dr. • More than 20 year experience in physics & industrial business • Executive director & partner of T.I.P.S. Messtechnik GmbH Austria & T.I.P.S. Pte ltd. Singapore • Michael Hrobath, DI - graduate engineer • More than 10 years of experience in marketing & sales • Sales and purchasing director © 2014 Ariba – an SAP company. All rights reserved.25

27. Our Products © 2014 Ariba – an SAP company. All rights reserved.27 PCB Design • High Speed / High Frequency signal routing  Controlled impedance routing, differential pairs, matched signal lengths, impedance tested PCBs • High Voltage / High Current PCB design  HV / HC design rules, PCB materials for high voltage • Software platforms: Mentor Graphics Integra Station, DX-Designer/Power PCB, Eagle • Probe cards for:  automotive- and mixed signal IC  power semiconductor  sensor devices  MEMS and Sensor Devices • Vertical probe cards Development in the field of applied physics: Test concepts, e.g. high temperature, high voltage/current Some “highlights”: • High voltage wafer test: air pressure chamber probe card to avoid flashovers in high voltage testing and to avoid environmentally hazardous and expensive insulation gas (SF6 reduction – 1kg equivalent to 22.800 kg CO2) • “SmartClamp” technology for protection of probes and d.u.t. in high current wafer test

28. Why Ariba Met T.I.P.S. © 2014 Ariba – an SAP company. All rights reserved.28 Requirement from Customer • To introduce paperless, faster and efficient accounting process  Introduce B2B process  Reduce costs and resources for payment management

29. © 2014 Ariba – an SAP company. All rights reserved.29 Three options offered by ARIBA for invoicing The three options were unsatisfactory for T.I.P.S., because • T.I.P.S. uses SAP Business 1 for more than 10 years • Step backwards WEB portal Upload as *.csv Upload as *.xml Project was almost dead – not attractive The Bumpy Road to Convince T.I.P.S. Customer, T.I.P.S. and ARIBA committed to find a solution

30. The Bumpy Road to Convince T.I.P.S. The solution was © 2014 Ariba – an SAP company. All rights reserved.30 Integration SAP B1 and Ariba platform Interface between SAP B1 and Ariba T.I.P.S. is pioneer using SAP B1 and Ariba network

32. The Approach © 2014 Ariba – an SAP company. All rights reserved.32 Project team: Ariba | Customer | SAP | TIPS • Weekly/bi-weekly conference calls, hosted by Ariba • Task list and clear responsibilities • Commitment to be successful • On air

34. Evaluation – Lessons Learned © 2014 Ariba – an SAP company. All rights reserved.34 • Challenge — T.I.P.S. is not always easy to convince (we are technicians ) • Team Spirit and common commitment to success • Mutual business confidence and agreement • Small TIPS introduced e-commerce • Improved Payment Management — shortest feedback time on invoices

35. Future © 2014 Ariba – an SAP company. All rights reserved.35 Extend Thank you for your attention Implement Automate Ariba Network to other customers collective Invoices (e-invoicing) balancing by using payment advices

36. For Further Information, Please Contact © 2014 Ariba – an SAP company. All rights reserved.36 T.I.P.S. Messtechnik GmbH Europastraße 5 A-9524 Villach, Austria Tel. +43 4242 319720 Fax +43 4242 319720-4 www.tips.co.at T.I.P.S. Asia Pte Ltd 61 Bukit Batok Crescent Heng Loong Building,#02-01/02 Singapore 658078 Tel: 65- 6316 1970 Fax: 65- 6316 1973 www.tips.co.at Thank you — Danke — Mille Grazie WE LOVE THE CHALLENGE

38. Fleurop AG © 2014 Ariba – an SAP company. All rights reserved.38 German partner network with more than 6,500 florist stores Founded: 1908 in Berlin Turnover: 35 mio. Euro (headquarters) Employees: 86 in headquarters Orders: > 3 mio. incl. voucher Associated with Interflora network worldwide: 50,000 florists in more than 150 countries, over 25 million Fleurop greetings a year

39. Business Model © 2014 Ariba – an SAP company. All rights reserved.39 Each Fleurop greeting is put together by professional florists exclusively… … and handed to the recipient personally. Worldwide.

40. Flowers in Business: Common Occasions • Thank you • Reminder / Invitation • Apologize / De-escalate • Birthday Greeting • Wedding • Birth of a child • Anniversary • … © 2014 Ariba – an SAP company. All rights reserved.40

41. Flowers in Business: Positive Effects Flowers: • Emotionalize communication! • Get high attention and create a positive atmosphere • As a carrier medium for messages • Reach “target person“ directly and personally • Touch recipient © 2014 Ariba – an SAP company. All rights reserved.41

42. Flowers in Business: Result • Improvement of customer relationship • Effective customer retention management • Efficient complaint management • Motivation of employees © 2014 Ariba – an SAP company. All rights reserved.42

43. Ordering Process in the Past • District offices buy flowers directly from Florist Shops  Separate billing  By cash • Characteristic of purchases  Not transparent/non-compliant  No standard expenses for gifts customers/employees © 2014 Ariba – an SAP company. All rights reserved.43

44. Changing Circumstances • Large companies search for centralized solution  No PO, No Pay  Reduce Numbers of suppliers • New and strong competitors  New rivals outside a particular sector of industry  Alternative gifts / advertising material © 2014 Ariba – an SAP company. All rights reserved.44

46. Challenge to Develop e-Solution • Requirements of companies: listen, learn and understand • Technology: internal/external • Processes: define and optimize • Negotiation with buying departments © 2014 Ariba – an SAP company. All rights reserved.46

47. • Flower greetings require a special order logic  Hardly possible to provide in hosted catalogs • Complexity and Length of Projects • Risk of Profitability of Projects: volume / acceptance • Investments needed • Internal IT resources On the Way © 2014 Ariba – an SAP company. All rights reserved.47 • First hosted catalogs for one main customer

48. Break Through © 2014 Ariba – an SAP company. All rights reserved.48 • Flexible catalog for multiple use for further customers • Easy and quite fast to connect to any SRM-System • Configurable for individual needs of customers • Fully automated order process without integration gap • Less effort for further projects because of standards • E-Invoices: for fully automated accounting

50. Features and Added Values © 2014 Ariba – an SAP company. All rights reserved.50 Choose from 6,500 florist stores Order from the florist you know and trust Pick up flowers personally Deliver on the same-day Flexible free-text arrangements for individual needs Shopping cart to order plenty of bouquets Standing Orders for continuous decorations

53. Fleurop Solution = “Best of Two Worlds” • Best service and flexibility of professional Florists • Lean processes and high savings of administration costs © 2014 Ariba – an SAP company. All rights reserved.53

The Journey Begins: Pioneering Sellers Talk about their eCommerce Successes

SAP Ariba

The Journey Begins: Pioneering Sellers Talk about their eCommerce Successes