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Ariba - Spend management Solution

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  • A marketplace geared towards a specific industry sector, and where all the suppliers in a value-added chain are often represented. The aim of a vertical marketplace is to support all the process stages associated with a particular industry. Unlike vertical markets, horizontal markets operate on a cross-industry basis. Horizontal marketplaces (unlike vertical marketplaces) do not concentrate on a particular industry. Cross-industry products are traded on these trading platforms (e.g. MRO goods).
  • Ariba

    1. 2. Contents <ul><li>Overview </li></ul><ul><li>Evolution of Ariba and Industry </li></ul><ul><li>Solution Offerings </li></ul><ul><li>Buyers </li></ul><ul><li>Competitors </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Revenue Model </li></ul><ul><li>Future Trends </li></ul>
    2. 3. Overview <ul><li>Ariba was founded in 1996 by Keith Krach on the idea of using the Internet to enable companies to facilitate and improve the procurement  process. </li></ul><ul><li>Ariba provides &quot;Spend Management solutions&quot; which help companies &quot;analyze, understand, and manage their corporate spending to achieve cost savings and business process efficiency.“ </li></ul><ul><li>Supplier Network facilitates the order of goods and services </li></ul><ul><li>Offers technical support services, implementation, training and consulting </li></ul>
    3. 4. Overview <ul><li>Spend Management ? </li></ul><ul><li>- Spend Management aligns organizations, processes, and systems to analyze, source, contract, procure, pay, manage and continuously improve global supply for best-value performance in support of the strategic objectives of the business. </li></ul><ul><li>Spend Analysis, Strategic Sourcing, Contract Management, Procurement, Invoice & Payment, Supplier Management. </li></ul><ul><li>On Demand ? </li></ul><ul><li>- Ariba spend management solutions are designed to accelerate adoption and value without the cost, burdens, or risks of implementing costly software or hardware. </li></ul>
    4. 5. Evolution of Ariba and Industry <ul><li>Ariba acquired ”Free Markets” which gave the company a software package both in the upstream (sourcing) and downstream (Buyer) of the procurement process. In late 2007, Ariba took over the company ”Procuri”which enhanced the company's client base and on-demand abilities. </li></ul><ul><li>Ariba is now a solutions provider. </li></ul><ul><li>The implication of &quot;solutions&quot; is that Ariba helps companies plan and manage procurement strategies, rather than simply sell them applications for executing purchases. </li></ul>
    5. 7. Solutions <ul><li>- Spend Management Solutions - Contract Management Solutions - Financial Solutions - Supplier Solutions </li></ul>
    6. 8. Spend Management Lifecycle
    7. 9. <ul><li>Spend Analysis: View and analyze all spending to drive informed sourcing and business decisions </li></ul><ul><li>Strategic Sourcing:Impacts cost, quality and performance of supply chain </li></ul><ul><li>Contract: Create and administer all trading agreements for maximum compliance and minimal risk. </li></ul><ul><li>Procure: Procure and manage all spend categories for greater compliance and savings </li></ul><ul><li>Pay: Streamline invoicing and payment to improve cash flow </li></ul><ul><li>Manage: offer best-practices and templates to ensure proper supplier selection, measurement, and risk and performance management </li></ul>
    8. 10. Spend Management Solutions <ul><li>Spend Management Basic </li></ul><ul><li>Spend Management Professional </li></ul><ul><li>Spend Management Enterprise </li></ul><ul><li>Speed, sustainability, coverage, flexibility </li></ul>
    9. 11. Contract Management Solutions <ul><li>Ariba Contracts helps maximize the value of contractual agreements and improve compliance  </li></ul><ul><li>Ariba's global services team assists with implementation, training, program design, contract conversion, and risk assessment to ensure rapid deployment and ongoing success.  </li></ul><ul><li>Lower costs, improve revenues and profits, enhance compliance, and reduce risks and legal exposure.  </li></ul>
    10. 12. Financial Solutions <ul><li>Invoice, Payment and Working Capital Management </li></ul><ul><li>Improve visibility and control </li></ul><ul><li>Reduce transaction and business costs </li></ul><ul><li>Mitigate risk and fraud </li></ul><ul><li>Achieve organizational efficiency and effectiveness </li></ul><ul><li>Comply with corporate and regulatory requirements </li></ul><ul><li>Effectively benchmark and measure performance </li></ul>
    11. 13. Supplier Solutions <ul><li>B2B eCommerce and marketing sales programs, Order collaboration solutions, Invoice & Payment collaboration solutions </li></ul><ul><li>Support all types of customer sourcing, eProcurement, and online invoicing initiatives </li></ul><ul><li>Collaborate electronically on RFQs, bids, orders, change orders, invoices, and payments </li></ul><ul><li>Respond swiftly to changing customer needs, requests, and issues </li></ul><ul><li>Grow your wallet share with existing customers and capture new customers </li></ul><ul><li>As a result, you can realize benefits such as increased sales, improved cash flow, and reduced operational costs.  </li></ul>
    12. 14. On-Demand Solutions <ul><li>Handle the growing pressures from inflation, globalization, and regulatory compliance on their business while effectively managing costs and delivering more savings to the bottom line </li></ul><ul><li>By providing a combination of low start-up costs, low IT resources required for startup through maintenance mode, rapid on-time implementation and quick access to the latest solutions, on-demand solutions are successfully meeting today's challenge </li></ul>
    13. 15. <ul><li>Ariba is the only provider that combines leading spend management and contract management solutions with global consulting and category expertise —  and  gives the flexibility to deploy, pay, and scale to fit company's unique needs and budget </li></ul><ul><li>More than 900 companies – from the Global 2000 to growing enterprises – are already using Ariba solutions and services to accelerate and sustain their spend management and contract management goals. </li></ul>
    14. 16. Facilitating Buyers 13 prominence 15 nav 14 2 modes 16 switch views 17 glossary
    15. 17. Easy User Interface
    16. 18. Customers - Sectors <ul><li>Automotive </li></ul><ul><li>Banking </li></ul><ul><li>Brewers </li></ul><ul><li>Business Services/Consulting </li></ul><ul><li>CPG </li></ul><ul><li>Cement </li></ul><ul><li>Chemicals </li></ul><ul><li>Computer Software & Services </li></ul><ul><li>Construction </li></ul><ul><li>Construction Materials </li></ul><ul><li>Consumer Products </li></ul><ul><li>Distribution/Wholesale </li></ul><ul><li>Education </li></ul><ul><li>Energy </li></ul><ul><li>Engineering, Scientific & CAD/CAM Software </li></ul><ul><li>Federal Government </li></ul><ul><li>Finance/Accounting </li></ul><ul><li>Food, Beverage & Tobacco </li></ul><ul><li>Health Care Services </li></ul><ul><li>High Tech </li></ul><ul><li>Insurance </li></ul><ul><li>Leisure </li></ul><ul><li>Manufacturing </li></ul><ul><li>Media </li></ul><ul><li>Other </li></ul><ul><li>Pharmaceutical </li></ul><ul><li>Retail </li></ul><ul><li>Technology Manufacturer/Developer </li></ul><ul><li>Telecommunications </li></ul><ul><li>Transaction, Credit & Collections </li></ul>
    17. 19. List of few Customers <ul><li>ADP </li></ul><ul><li>AMD         </li></ul><ul><li>Accenture </li></ul><ul><li>Adquira </li></ul><ul><li>Aetna Inc. </li></ul><ul><li>BMW Group </li></ul><ul><li>Bear Stearns & Co. Inc.   </li></ul><ul><li>Bell Aliant </li></ul><ul><li>CGI Group Inc. </li></ul><ul><li>CIBC </li></ul><ul><li>CIMB Investment Bank Berhad </li></ul><ul><li>Deloitte Consulting </li></ul><ul><li>Department of Education and Training, Australia   </li></ul><ul><li>Diageo plc   </li></ul><ul><li>Hallmark Cards, Inc </li></ul><ul><li>First American Corporation </li></ul><ul><li>JK Lakshmi Cements </li></ul><ul><li>Marico Industries Ltd. </li></ul><ul><li>Merrill Lynch & Co., Inc.   </li></ul><ul><li>Motorola, Inc.   </li></ul><ul><li>Target Corporation </li></ul><ul><li>Tata Motors Limited   </li></ul>
    18. 20. Industries Where Ariba Competes <ul><li>Ariba's competitors majorly include SAP, Oracle, Global eProcure, Zycus, Basware, and Emptoris. </li></ul><ul><li>ERP: i2 Technology, SAP, Oracle, People Soft, Baan </li></ul><ul><li>Web based Commerce Enablers </li></ul><ul><ul><li>Ariba, CommerceOne, Intelisys: browser-based, XML-enabled, purchasing automation software </li></ul></ul><ul><ul><li>AltraEnergy, Bidcom: commerce solutions </li></ul></ul><ul><ul><li>Harbinger, SterlingCommerce: EDI Network Solutions </li></ul></ul><ul><ul><li>SmartAge, BigStep: Back-ends </li></ul></ul><ul><li>Vertical Marketplace: Chemdex, e-STEEL, PlasticNet, PaperExchange </li></ul><ul><li>Horizontal Marketplace: </li></ul><ul><ul><li>VerticalNet (Aggregated communities model) </li></ul></ul><ul><ul><li> (More integrated marketplace model) </li></ul></ul>
    19. 21. Direct Competitor Comparison Ariba Oracle Corp. SAP Industry Market Cap: 995.53M 106.94B 55.18B 164.62M Employees: 1740 86,000 48,561 554 Rev. growth: -1.3% -5.2% -9.9% 21.9% Revenue: 340.19M 23.25B N/A 182.99M
    20. 22. SWOT <ul><li>Strengths </li></ul><ul><ul><li>Variety of solutions and technology </li></ul></ul><ul><ul><li>Top companies as customer – Twenty-one of the world’s best-performing supply chain organizations use Ariba solutions </li></ul></ul><ul><ul><li>Large Customer base </li></ul></ul><ul><ul><li>Strategic alliances with leading companies to  Diversification of services and features - (American Express and Ariba: Strategic Alliance To Deliver Enhanced Purchasing Card Capabilities) </li></ul></ul><ul><ul><li>A one stop shop for the buyers and suppliers </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Ariba does not use have the ability to interoperate with exchanges using software from competitors. </li></ul></ul>
    21. 23. SWOT <ul><li>Opportunities </li></ul><ul><ul><li>On-demand solution for automating the entire contract lifecycle </li></ul></ul><ul><ul><li>Expanding in new areas – aribaweb </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>New Technologies </li></ul></ul><ul><ul><li>Expansion by Competitors – i2 acquires rightsworks steer competition in e procurement segment </li></ul></ul><ul><ul><li>New Niche markets created by competitors </li></ul></ul>
    22. 24. Revenue Model Contents Subscription A R I B A Advertising Fees Auction-Driven Commission Software Licensing Link service Access fees Promotional services ORMS Licensing fees Auction Commission Buying & Selling
    23. 25. Revenue Model <ul><li>Software licensing : Software for Spend Management, Sourcing, Contract Management, Procurement, Invoicing etc. </li></ul><ul><li>Auction Driven Commission: Auction and reverse auction services </li></ul><ul><li>Advertising fees </li></ul><ul><li>Content Subscription – supplier membership program, technical services support </li></ul><ul><li>Buying & selling </li></ul>
    24. 26. Five Pronged Strategy of Ariba <ul><li>Capture buying power </li></ul><ul><li>Attract and enable suppliers </li></ul><ul><li>Build out the network </li></ul><ul><li>Create a marketplace platform </li></ul><ul><li>Provide network and commerce services </li></ul>
    25. 27. Measuring against the strategy <ul><li>Frictionless Supplier Registration </li></ul><ul><li>Open System </li></ul><ul><li>Making markets gets easier </li></ul><ul><li>Bring on the services </li></ul><ul><li>Comprehensive Risk Management Solutions </li></ul>