IBM brings market-leading capabilities in procurement and global SRM and Ariba implementations in the cloud to help drive success, with accelerators, worldwide methodologies, highly experienced staff, deep vendor relationships and recognized capability that can be employed to accomplish client’s success

1. Integrating SAP Procurement On-Premise
& On-Demand (SRM & Ariba)

2. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

3. SAP’s Acquisition of Ariba (Game Changer)
SAP to Expand Cloud Presence with Acquisition of Ariba
Tue, May 22
The Combination Creates the Business Network of the Future; Provides Open Business Commerce Community and Procurement
Solutions in the Cloud; Network to Benefit from SAP's Flagship In-Memory Platform, SAP HANA
WALLDORF, Germany and SUNNYVALE, California - May 22, 2012 - SAP AG (NYSE: SAP) and Ariba, Inc. (Nasdaq: ARBA)
today announced that SAP’s subsidiary, SAP America, Inc., has entered into an agreement to acquire Ariba, the leading cloud-based
business commerce network, for $45.00 per share, representing an enterprise value of approximately $4.3 billion. The acquisition will
combine Ariba’s successful buyer-seller collaboration network with SAP’s broad customer base and deep business process expertise to
create new models for business-to-business collaboration in the cloud.
The Ariba board of directors has unanimously approved the transaction. The per share purchase price represents a 20% premium over the
May 21 closing price and a 19% premium over the one month volume weighted average price per share. The transaction will be funded
from SAP’s free cash and a €2.4 billion term loan facility. The transaction is expected to close in the third quarter of calendar year 2012,
subject to Ariba stockholder approval, clearances by relevant regulatory authorities and other customary closing conditions. The
transaction is expected to be accretive to SAP’s non-IFRS earnings per share in 2013.

4. SAP’s Strategic Vision
The Ariba acquisition
supports SAP’s strategic
vision to grow into new
markets – cloud,
database, mobile -- and
double addressable
markets.

5. IBM’s Point of View on SAP’s Acquisition of Ariba
Gaps in SAP Solution Footprint How Ariba fills SAP Solution Footprint Gaps
Supplier Collaboration / Marketplace – SAP has had to rely on the partnering model
(Hubwoo and Quadrem (acquired by Ariba in 2010) to facilitate supplier and buyer
collaboration (requisition / purchase order / invoice, and real time bidding).
Ariba Supplier Network – the largest eProcurement buyer / supplier marketplace in
terms of total dollars transacted and number of active suppliers.
Transaction Hub – Transactional solutions for Cash Management. Ariba Supplier Network – the largest eProcurement transactional hub
Cloud (SaaS) Solution – Very limited cloud and SaaS presence.
Ariba continues to grow in the SaaS (“On Demand”) space and continues to convert On
Premise clients to their On Demand model -- providing a smooth revenue stream
versus license renewals (which tend to be “choppy”).
Electronic Invoice Presentment & Payment – SAP relies upon OpenText for their
EIPP solution relying on a partnering model for the solution and marketplace.
Ariba has an integrated EIPP solution, often considered one of the leaders in this
space, integrated through the Ariba Supplier Network
Professional Services – SAP has failed to build a credible module to manage both
contingent and professional services spend, often times with companies choosing Ariba
and other niche providers.
Ariba Services Procurement – considered a mid tier player, but better than what SAP
and Oracle offer today.
Contract Management (Buy and Sell Side) – This is a growing space in which clients
have often looked to best of breed versus EA providers.
Ariba Contract Management – Capability to author, collaborate on and operationalize
contracts in an integrated tool.
Spend Analytics – This is a growing space in which clients have often looked to best of
breed versus EA providers.
Spend Analytics Capabilities – Opportunity to leverage and integrate key spend
analytics measures inherent within Ariba Analysis into the more robust SAP reporting
tools.

6. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

7. SAP’s Procurement Landscape

8. SAP has now acquired Ariba and many of SAP customers are asking the following:
• Should I halt my existing SAP On-Premise
procurement implementation?
• I was planning to implement SAP On-Premise
procurement, should I now switch to Ariba?
• Will SAP continue to support its SAP its On-
Premise procurement suite?
• What is SAP’s plans regarding the overlapping
functionality between On-Premise and On-
Demand?
• How does Ariba compare to SRM?
• Is my investment in SAP SRM, Sourcing or SPM
lost?

9. To answer these questions we must look at:
• The status of the current implementation if one
exist
• The nature of the business case
• The procurement categories under consideration
• The industry of the implementing organization
• Security requirements
• The required customization
• The deployment timeframe
• The IT capabilities of the implementing
organization
• The geographic footprint

10. Pros and Cons of On-Premise vs. On-Demand
Pros SRM
•Tight integration with ECC
•Direct procurement functionality
•Ability to enhance functionality (BAdIs)
•Flexible security options
•Standard Netweaver platform
Cons SRM
•High implementation cost
•Inflexible user interface
•Limited supplier network
•Infrequent updates
•High learning curve
Pros Ariba
• Fast implementation timeline
• ‘Best of Breed’ application
• Extensive network
• Covers the full procurement lifecycle
• Frequent updates
Cons Ariba
• Complex integration to ECC
• Focused primarily on indirect spend
• Limited ability to enhance functionality

11. IBM’s Recommendation
Stay with SRM if…
•Your implementation is recent and achieving the
business case
•You need a procurement tool that supports direct
spend categories
•You have invested in SAP ECC-MM and need
tight integration with your e-Procurement tool
•You are a public sector organization (SRM PPS)
•You require functionality not available as standard
in SRM or Ariba
•Your strategic direction does not support a cloud-
based solution
Investigate Ariba if…
• You are just starting your procurement
transformation journey
• You want a solution that can be deployed
quickly
• You want the best application available
• You are only concerned with indirect spend
• You want a fully integrated solution across the
entire procurement life-cycle (source to settle)
• You user base will primarily consist of casual
users
• You do not have a ECC backend

12. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

13. IBM’s Recommendation... “have you considered”
A Hybrid Solution works best when you are happy
with SRM but…
•you have reached the limits of SUS’s capabilities
•your supplier on-boarding process is not robust
•your internal catalog solution is no longer scalable
•your catalog maintenance is excessive (internal
and punch-out)
•you would like to pilot cloud-based procurement
tools
•you require a robust e-invoicing solution
SAP SRM/Ariba Hybrid Solution

14. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

15. Ariba/SRM Hybrid Solution Demo
11
Initiate Shopping Cart in SRM &
Punch Out to Ariba
33
Confirm Receipt in SRM
22
Acknowledge the PO in Ariba
44
Supplier Invoices through Ariba

16. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

17. IBM’s Value Proposition
Ariba /SRM Implementation Leader
• IBM brings market-leading capabilities in procurement and global SRM and Ariba implementations to help drive success. We have
accelerators, worldwide methodologies, highly experienced staff, deep vendor relationships and recognized capability that we will employ to
accomplish our client’s goals.
• IBM has implemented and supported Ariba solutions at over 60 global clients across 19 industries
• Managed the first Ariba On Demand implementation consisting of all upstream and downstream modules
• Ariba solution roll-outs in 65 countries across all geographies
Our SAP Consulting Practice
• Has relationships with Ariba and SAP that are positioned at the highest levels of each organization
• Recognized by SAP CEO as consulting market share leader with 25% of the market
• Over 5,000 successful projects at over 9,000 sites
• Only partner to win the Award of Excellence in the U.S. every year it has been given
Our Own Transformation Experience
• IBM has embarked on its own procurement transformation journey and can share real-life experiences from our executives regarding how to
drive complex changes in a diverse and geographically dispersed organization
• This sort of practitioner guidance goes well beyond the theory that a pure consultant can bring to the table.

18. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

19. Questions

20. Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts

21. Contacts
Michael Cheatham 8888 Keystone Crossing
Associate Partner Indianapolis, IN 46240
Global Business Services
Tel 317 249-9618
Mobile 317 409-6061
mcheatham@us.ibm.com

22. Appendix
• Hybrid Solution Detail

23. Optimal Hybrid Solution Components
Component Description Req? Comments
SRM 7.0 SAP’s SRM Platform Yes EHP 2 provides a optional UI, EHP 3 optimizes
for HANA
SRM New UI Streamlined user interface No Enhanced cross-catalog search capability
Ariba Procurement Content Ariba catalog application Yes Robust end-user search and content
maintenance capabilities
Ariba Network Cloud-based supplier
portal
Yes Facilitates document exchange and eInvoicing
SAP Netweaver PI Integration middleware Yes * * A connection tool is required but there are
third-party tools available

24. Hybrid Solution Option – SRM New UI
Features
•Web-like interface – dynamic screens
•Web-like search – search and field help
•Comprehensive catalog content
•Process multiple line items efficiently
•User guidance
•Customizable
Search
•Enterprise search - search across all fields in the catalog
item. The search attributes are customizable using
enterprise search tool
•Fuzzy search can be enabled
•User Settings – change the user default settings such as
cost assignment, product category, and delivery information
for an order
Optional

25. Hybrid Model - High Level Process Overview
Suppliers
Catalog Suppliers
Non-Catalog Suppliers
Buyers
SAP ERP
FI/CO/MM
World Wide Web
OCI
MDM Catalog
Free Text
Order
SAP SRM
Reservation

26. Hybrid Solution Architecture Overview
• Purchase Order
• Order
Acknowledgement
• Invoice
• Purchase Order
• Order
Acknowledgement
• Invoice Process Orchestration
Product CatalogProduct Catalog
Purchase Orders, Invoice StatusPurchase Orders, Invoice Status
Ord. Ack, ASN, InvoiceOrd. Ack, ASN, Invoice
• Ariba Procurement
Content (Catalogs)
• Purchase Order
and Invoice
Automation
• Ariba Procurement
Content (Catalogs)
• Purchase Order
and Invoice
Automation
Trading Partners

27. Hybrid Solution Detail – Document Exchange
Purchase
Orders
Purchase
Orders
InvoicesInvoices
InvoicesInvoices
Ariba
NW
Adapter
Ariba
NW
Adapter
Purchase OrdersPurchase Orders
Invoice StatusInvoice Status
Invoices / Credit Memos (PO & Non PO)Invoices / Credit Memos (PO & Non PO)
IDOC
ORDERS05
IDOC
ORDERS05
DocSetDocSet
Purchase
Orders
Purchase
Orders
InvoicesInvoices
InvoicesInvoices
cXMLcXML
cXMLcXML
Business Impact
•Reduction of efforts on Accounts
Payable with regards to incoming
invoice processing, i.e. “touchless
postings”, based on defined
business rules for invoice validation
•Simplicity & Transparency: Self-
service supplier portal for real-time
invoice / payment status
•Elimination of business risk and
delays with maximum degree of
process automation
•Reduction of paper through fully
electronic documentation, including
e-invoicing
•Fully integration with SAP SRM,
ensuring document traceability

28. Hybrid Solution Detail – Catalog Integration
Business Impact
•OCI 5.0 Compliant
•Casual Users:
o Enhanced search w/fuzzy logic
o Flexible navigation
o Results filtering
o Comparison of items
•Multi-catalog environment
•Elimination of business risk and delays with maximum
degree of process automation
•Harmonized administration of supplier catalogs
•Integration to the Ariba Network
• Create Shopping
Cart
• Confirm Goods /
Services
• Invoice Verification
• Create Shopping
Cart
• Confirm Goods /
Services
• Invoice Verification
• Catalog Content
• Catalog
maintenance
• Catalog Content
• Catalog
maintenance
OCI 5.0OCI 5.0

29. SRM / Ariba Hybrid Scenario
Procure-to-Pay Scenario
between SAP Enterprise Central Component and SAP Supplier
Relationship Management and the Ariba Network
•The procure-to-pay business integration scenario between SAP Enterprise
Central Component (ECC) and SAP Supplier Relationship Management (SRM)
and the Ariba Network enables you to drive compliant, automated purchasing
and collaboration activities with trading partners, by which all parties achieve
process efficiencies and effective cost management.
•The procure-to-pay scenario covers the end-to-end process beginning with the
creation of the shopping cart or purchase requisition, which triggers the
purchase order creation activities. It supports the approval processes required
to issue a purchase order towards the participating suppliers of the Ariba
Business Network and in return the processing of advanced shipping
notifications and invoices.
•The release of the outgoing payment concludes the process. The integration
scenario provides full transparency on the status of the transaction by
supporting change requests and adjustments required by the business. The
integration of purchasing catalogs is an option and offers the advantage of a
structured buying process.
Casual User

30. The Hybrid Solution - How does it work?
Ariba Network Integration for SAP Business Suite rapid-deployment
solution covers:
•Purchase Order and Invoice Automation
•Discount Management and Discount Professional
•Catalogs such as Ariba Procurement Content
•The procure-to-pay business scenario integration is message based which
means it can run fully automated between your on-premise SAP ECC and the
Ariba Network. Documents exchanged support the entire procure-to-pay
business integration scenario including ten document types, such as, for
example: create purchase order, change purchase order, order response to
invoice and remittance advice
•Integration between on-premise ECC or SRM and Ariba Network for purchase
orders and invoice automation is based on IDOCS and cXML messages and
has three options described below
•Integration between on-premise SAP Business Suite and Ariba Discount
Professional Solution is based on IDOCs and BAPIs using SAP NetWeaver PI
middleware
•Configuration settings to enable the requisition process and ensure data
transmission across the solution
•Integration between SAP ERP MM or SAP SRM and Ariba Procurement
Content is based on the SAP Open Catalog Interface (OCI). This can be
combined with the other integration options
Professional User

31. Technology Functionality Matrix
Integration for Purchase Order and Invoice Automation
•You can choose from different integration technology options based on your
needs and current investments:
•The new SAP Business Suite Add-on for Ariba Network Integration offers a
more enhanced two-way integration which utilizes a web services framework.
This enables SAP SRM/ECC to create cXML messages that can be directly
consumed by the Ariba Network and vice versa. With this new approach you
can connect your on-premise SAP SRM/ECC system with the Ariba Network in
the cloud without any middleware and without the need to “translate” the
messages.
•If you are already using SAP NetWeaver PI, the existing infrastructure can be
used to implement this hybrid integration using IDOCs and cXML messages.
•Ariba Adapter connectivity is your third option which is based on IDOCs and
BAPIs.
Integration of Ariba Procurement Content
•Integration between SAP ERP MM or SAP SRM and Ariba Procurement
Content is based on the SAP Open Catalog Interface (OCI).