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S
                                          Building the
                                          Business Case for
                                          E-Commerce
                                          Austin Whitehead, Ariba
                                          Cara Balint, Insight




© 2012 Ariba, Inc. All rights reserved.
E-Commerce Evolution
                                                                                                  11%
                                                                                                Innovative
                                                    65%
                                                                                                Expand
       Collaborative Commerce




                                                                                20%           collaborative
                                                                              Proactive       channel and
            Business Value




                                                                              Establish         poise for
                                                                             repeatable      growth globally
                                                                46%
                                                           Responsive     processes while
                                                                           expanding the
                                      19%                 Expand with     footprint across
                                    Reactive               additional       geographies,
                                Initial efforts to       process and/or      processes,
                                address spend/              accounts       business units,
                                  comply with                             trading partners
                                    customer
                                    requests
                                                   Enablement                       Transformation
                                                     Phases of Buyer and/or Seller Evolution
    *SOURCE: Selling Power Survey 2011

2        © 2012 Ariba, Inc. All rights reserved.
But How Do You Build a Business
    Case to Move up the Maturity Curve?
                                                                                             Innovative

                                                                                             Expand
    Collaborative Commerce




                                                                                           collaborative
                                                                           Proactive       channel and
         Business Value




                                                                           Establish         poise for
                                                                          repeatable      growth globally
                                                        Responsive     processes while
                                                                        expanding the
                                                       Expand with     footprint across
                                 Reactive               additional       geographies,
                             Initial efforts to       process and/or      processes,
                             address spend/              accounts       business units,
                               comply with                             trading partners
                                 customer
                                 requests
                                                Enablement                       Transformation
                                                  Phases of Buyer and/or Seller Evolution

3     © 2012 Ariba, Inc. All rights reserved.
But How Do You Build a Business
      Case to Move up the Maturity Curve?
                                                                                                Innovative

                                                                                                Expand
       Collaborative Commerce




                                                                                              collaborative
                                                                              Proactive       channel and
            Business Value




                                                                              Establish         poise for
                                                                             repeatable      growth globally
                                                           Responsive     processes while
                                                                           expanding the
                                                          Expand with     footprint across
                                    Reactive               additional       geographies,
                                Initial efforts to       process and/or      processes,
                                address spend/              accounts       business units,
                                  comply with                             trading partners
                                    customer
                                    requests
                                                   Enablement                       Transformation
                                                     Phases of Buyer and/or Seller Evolution
    *SOURCE: Selling Power Survey 2011

4        © 2012 Ariba, Inc. All rights reserved.
What Kind of Company Are You?

               • Best Cost Model              • Best Total Product   • Best Total Solution
               • Competes on                  • Competes on best     • Competes on
                 most efficient                 product/service        knowing customer
                 cost model                     in marketplace         better than they
                                                                       know themselves
                  Operational                 Product                Customer
                  Excellence                  Leadership             Intimacy



              •       You must do at least one of these well CULTURE
                       It’s About YOUR COMPANY’S
              •YOUR E-COMMERCE well
                You may do two of these BUSINESS CASE MUST
              •        SUPPORT YOUR COMPANY’S CULTURE!
                      Considered impractical/impossible to do all three well


5   © 2012 Ariba, Inc. All rights reserved.
We Are Operational Excellence
                                                                              Lower cost of servicing
                                                                                   customers
                                                                                                                           24%
                                       • If you are Operational         Improved communications
        Operational                      Excellence                           with vendor
                                                                                                                     16%

        Excellence                     • Primarily Decreasing
                                                                            Faciliate faster payments              12%
                                         Costs focus
                                                                        Accelerated order-to-cash
                                                                                  cycle
                                                                                                              8%


         Product                       • How can I reduce the cost of                                   0%   10%    20%    30%
                                         manufacturing and delivering
        Leadership                       products or services?
                                                                             *SOURCE: Aberdeen Research


                                                                        •        Aberdeen verifies
                                                                                 benefits, primarily:
                                                                                        Increased Sales Opportunities
                                       • How can I further reduce                       Lower cost of servicing customers
          Customer
          Intimacy
                                         my product/service cost to     •        Extends supplier reach beyond
                                         my customer?                            point-to-point approach
                                                                        •        Reduced cost of adoption
                                                                                          *SOURCE: Aberdeen Research




6   © 2012 Ariba, Inc. All rights reserved.
We Are Product Leadership
                                                                                 Have online channel
                                                                            changed the way you sell?
                                                                                               (yes)

        Operational                    • How can I reduce cost to help
                                         fund product innovation/R&D            Better differentiation of
        Excellence                       efforts?                               your products/services
                                                                                                 offering

                                                                                   Best-in-Class
                                                                                   All Others         0.0% 20.0% 40.0% 60.0% 80.0%
                                                                                               *SOURCE: Selling Power Survey 2011
                                       • If you are Product Leadership.
         Product
                                       • Primarily “First to Market” with
        Leadership                       innovated product/service.                   Increased sales
                                                                                                                                   28%
                                                                                        opportunities



                                       • How can I capture better data           Improvements in
                                                                                                                       12%
          Customer                       to help develop innovative            Customer Satisfaction
          Intimacy                       customer products and
                                         services?                                                          0% 5% 10% 15% 20% 25% 30%


                                                                                             *SOURCE: Aberdeen Research




7   © 2012 Ariba, Inc. All rights reserved.
We Are Customer Intimacy
                                                                         Increased revenue
                                                                                      from
                                       • How can I best service our         new customers
        Operational                      customers in a cost-effective   Increased revenue
        Excellence                       manner?                              from existing
                                                                                 customers

                                                                         Increased retention
                                                                                       rates
         Product                       • How can we build products
                                                                          Greater customer
                                         and services that anticipate
        Leadership                       our customers’ future needs?
                                                                               satisfaction
                                                                             Best-in-Class
                                                                             All Others      0.0% 20.0% 40.0% 60.0% 80.0%
                                                                                 *SOURCE: Selling Power Survey 2011

                                                                         •   Gain an average of 36.6% increased
          Customer                     • If you are Customer Intimacy        sales in new accounts
          Intimacy                     • Revenue/Sales focus             •   Gain 39.8% increase in existing
                                                                             accounts
                                                                         •   Increase retention rates by 48%


8   © 2012 Ariba, Inc. All rights reserved.
Speakers Today

                                               Cara Balint, Manager eCommerce Operations
                                               Insight Direct USA, Inc.
                                              Cara has spent her entire career, working with teams large and small to
                                              implement technology .

                                              Cara developed an eCommerce strategy at Insight that brought together
                                              21 different international countries and divisions handling over 70% of all
                                              Insight’ business commerce transactions including regular multimillion-
                                              dollar online orders.

                                              Cara came to Insight from Software Spectrum as part of an acquisition in
                                              2006, where she was eCommerce Client Ops Manager. In her role at
                                              Software Spectrum/Insight she oversees the implementation of a global
                                              eCommerce strategy.

                                              She has developed several highly effective methods that have
                                              successfully built the customer’s trust, and improved efficiencies resulting
                                              in increased growth within her department year over year.




9   © 2012 Ariba, Inc. All rights reserved.
S
                                          Building the
                                          Business Case for
                                          E-Commerce
                                          Cara Balint
                                          Insight
                                          eCommerce Client Operations Manager




© 2012 Ariba, Inc. All rights reserved.
Insight Overview

     •       Founded in 1988, headquartered in Tempe, Arizona
     •       $5.3 billion in revenues in 2011
     •       Approximately 5,300+ teammates worldwide
     •       Operations in 23 countries, serving clients in 191 countries worldwide
     •       Premier IT service offering with capabilities in Software, Data
             Center, Networking and Security
     •       2,500+ product and industry certifications
     •       SAS 70 Certified Network Operations Center
     •       Software lifecycle support for 80 percent of Global Fortune 500
     •       ISO 9001:2008 Certified Integration Lab and National Repair Center



11       © 2012 Ariba, Inc. All rights reserved.
Insight and Ariba
     •      Currently 24 active ANIDs and growing, supporting North
            America, EMEA and APAC regions
     •      Just under 170,000 transactions took place between Ariba and
            Insight from November 2010 to November 2011
     •      Ariba Platinum supplier – 2010
     •      Approximately 70% of Insight’s eCommerce B2B transactions
            comes through Ariba




12       © 2012 Ariba, Inc. All rights reserved.
The Things We Know and Do Today

     •   When you get curious about something.. Anything…we go
         to Google or Bing
                   What does that mean?
     •   NY Times reported that 15% growth in 2011 over 2010 in
         online holiday shopping
     •   Per ComScore, over 565,000 new businesses start each
         month. Over half of them start with a web page
                                 » The new store front..is your web page



13   © 2012 Ariba, Inc. All rights reserved.
The Things We Know and Do Today

     •   Automation is more efficient than manual
     •   Take a Look
                   Reduction in human error
                    – % of orders submitted once verses % of orders resubmitted
                                 » manual entry verses automated entry
                   Faster input
                    – Time of human entry, from receipt to dispatch verses time of
                       automated entry
                   Faster payment
                    – Order to cash manual verses automated.
                                 » Other items also influence this such as the way the payments are posted




14   © 2012 Ariba, Inc. All rights reserved.
The Things We Know and Do Today

                   Less overhead
                    – Cost of personnel (wages, space, etc.) verses cost of system maintenance
                       and management
                   Easier to track trends
                       –    The use of tools like Coremetrics and Google analytics let you know where your customers
                            are in your website and what they are doing.
                   Better uses of resources
                       –    Sales can sell




15   © 2012 Ariba, Inc. All rights reserved.
Target Savings to…
     •      Technology that enhances the relationship:
            The Human Touch
                     Online Chat
                         –     Real person with real answers
                     Marketing Automation Tools
                         –     Sell what you know they want
                                    » Tools that track the users activity so you are prepared to offer what
                                      they are interested in
                     Invest in “kindness”
                         –     “Please” and “Thank you” sound better with tone
                               and inflection.

16       © 2012 Ariba, Inc. All rights reserved.
What to Expect in ROI

                                                                         $714
                                                                                               $27                                     $769                  $17                   $0
     $1,400
                                                                                                                  $0
     $1,200

     $1,000

      $800
                                                     $91
      $600                      $329

      $400

      $200

        $0

     ($200)   Ariba Fees   Process Cost Savings   Faster Payment   Customer Self-Service   VAN Cost Savings   Mktg/Sales Cost   Net Cost Savings Benefit   New Revenue     Growth in Accounts
                                                                                                                Avoidance                                  Opportunities
     ($400)
              -$365
     ($600)




17
Common Pitfalls

          “Most Sellers are in E-Commerce as a direct result of
                     satisfying a customers request.”
            Managing the solution is half the battle
                       –    Know how to present what you sell effectively
                                 » Easy navigation, good visuals, simple checkout
                                 » Cater to your target audience
                       –    Know what you can and can’t do
                                 » Don’t offer free over night shipping if you can’t deliver.
                                 » Have a Integration guide
                                 » Always offer a test site
                       –    Take A Look

18   © 2012 Ariba, Inc. All rights reserved.
The Hidden ROI: The Trust Factor

                   In 2011, Insight increased B2B/EDI revenue by 18%
                   over 2010.
                   For the first time in the company history, B2B/EDI
                   revenue was 10% higher than the Web revenue.
                   The Insight website had 12.3% more items ordered.
                   The Insight website has 45% more customers than B2B
                   or EDI customers.

                                               WHAT DOES THIS MEAN?


19   © 2012 Ariba, Inc. All rights reserved.
The Hidden ROI: The Trust Factor

     •   Large companies are recognizing the ease in the web, but
         they need security.
     •   A B2B relationship secures the connection and brands it as
         a “Dedicated Relationship”.
     •   A Supplier and a Buyer on the same “network” instills
         common knowledge.


            .


20   © 2012 Ariba, Inc. All rights reserved.
Summary

     •   The Internet is a common tool in today's world
     •   Automation is a more efficient practice than manual processes
     •   Investment in “Humanizing” technologies to be a differentiator
     •   Large businesses are starting to see larger revenue in
         “dedicated connections” as they offer security in transactions




21   © 2012 Ariba, Inc. All rights reserved.
Ariba Methodology
                                             Estimate Future                      Complete
     Gather “As-Is” Customer                                                      ROI Financial
                                             Costs and Revenue
     Compliance Costs                                                             Templates
                                             Potential
     Step                      Description
     1. As-Is Cost             Gather current costs of:
     Gathering                 • Compliance in PO, invoice, catalog processes
                               • Customer care, inquiries and disputes
                               • Working capital and accounts receivables
                               • Sales and marketing costs
     2. Future Cost            Estimate future costs, savings, and revenue potential including:
     and Revenue               • Catalog, order, invoice processing automation
     Estimates                 • Customer self-service
                               • Increased accuracy
                               • Reduced DSO and working capital costs
                               • Sales and marketing costs
                               • VAN costs
     3. ROI Financial          Populate financial templates
     Templates
22
Areas of Opportunity and Data
     Gathering and Analysis
     Process Costs/Labor Costs                      Working Capital Costs                  Sales & Marketing

 •    Catalog development,                      •   Day Sales Outstanding            •   Customer retention programs
      publication, mailing costs                    Reduction (eInvoicing)           •   Customer retention rates
 •    Order taking and PO                       •   Total value of receivables       •   Customer acquisition
      processing                                •   Typical payment terms and            programs
 •    Order confirmation and                        actual length of payment cycle   •   Customer conversion rates
      advance ship notice creation              •   Cost of capital                  •   Year 1 revenues from new
 •    Invoice entry and mailing costs                                                    customer
 •    Customer care and follow-up                                                    •   Steady state annual revenues
 •    Accounts receivable follow-up                                                      per customer
 •    Purchase order error rates
 •    Invoice rejection rates
 •    Customer inquiries & dispute
      resolution



23    © 2012 Ariba, Inc. All rights reserved.
Key Ariba Benefit Drivers
      •       Higher revenue by increasing wallet share 26-32% through
              increased buyer compliance

      •       Increased revenues with new accounts

      •       15-20% reduction in days sales outstanding
                        6 to 25 days shaved off the cycle

      •       60-75% productivity gains for suppliers that fully automate their
              interactions with the Ariba Supplier Network

      •       45-60% increased accuracy in customer purchase orders

      •       20% reduction in invoice disputes

24   © 2012 Ariba, Inc. All rights reserved.
Q&A




25   © 2012 Ariba, Inc. All rights reserved.
Share This Session…NOW…from
     your mobile!
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                       – Search Apple or Android app store
                         for Guidebook
                       – Enter code “collabor8”
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     **Come back soon – we are syncing                       #AribaLIVE
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     the presentations**

26   © 2012 Ariba, Inc. All rights reserved.

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Building the Business Case for E-Commerce

  • 1. S Building the Business Case for E-Commerce Austin Whitehead, Ariba Cara Balint, Insight © 2012 Ariba, Inc. All rights reserved.
  • 2. E-Commerce Evolution 11% Innovative 65% Expand Collaborative Commerce 20% collaborative Proactive channel and Business Value Establish poise for repeatable growth globally 46% Responsive processes while expanding the 19% Expand with footprint across Reactive additional geographies, Initial efforts to process and/or processes, address spend/ accounts business units, comply with trading partners customer requests Enablement Transformation Phases of Buyer and/or Seller Evolution *SOURCE: Selling Power Survey 2011 2 © 2012 Ariba, Inc. All rights reserved.
  • 3. But How Do You Build a Business Case to Move up the Maturity Curve? Innovative Expand Collaborative Commerce collaborative Proactive channel and Business Value Establish poise for repeatable growth globally Responsive processes while expanding the Expand with footprint across Reactive additional geographies, Initial efforts to process and/or processes, address spend/ accounts business units, comply with trading partners customer requests Enablement Transformation Phases of Buyer and/or Seller Evolution 3 © 2012 Ariba, Inc. All rights reserved.
  • 4. But How Do You Build a Business Case to Move up the Maturity Curve? Innovative Expand Collaborative Commerce collaborative Proactive channel and Business Value Establish poise for repeatable growth globally Responsive processes while expanding the Expand with footprint across Reactive additional geographies, Initial efforts to process and/or processes, address spend/ accounts business units, comply with trading partners customer requests Enablement Transformation Phases of Buyer and/or Seller Evolution *SOURCE: Selling Power Survey 2011 4 © 2012 Ariba, Inc. All rights reserved.
  • 5. What Kind of Company Are You? • Best Cost Model • Best Total Product • Best Total Solution • Competes on • Competes on best • Competes on most efficient product/service knowing customer cost model in marketplace better than they know themselves Operational Product Customer Excellence Leadership Intimacy • You must do at least one of these well CULTURE It’s About YOUR COMPANY’S •YOUR E-COMMERCE well You may do two of these BUSINESS CASE MUST • SUPPORT YOUR COMPANY’S CULTURE! Considered impractical/impossible to do all three well 5 © 2012 Ariba, Inc. All rights reserved.
  • 6. We Are Operational Excellence Lower cost of servicing customers 24% • If you are Operational Improved communications Operational Excellence with vendor 16% Excellence • Primarily Decreasing Faciliate faster payments 12% Costs focus Accelerated order-to-cash cycle 8% Product • How can I reduce the cost of 0% 10% 20% 30% manufacturing and delivering Leadership products or services? *SOURCE: Aberdeen Research • Aberdeen verifies benefits, primarily: Increased Sales Opportunities • How can I further reduce Lower cost of servicing customers Customer Intimacy my product/service cost to • Extends supplier reach beyond my customer? point-to-point approach • Reduced cost of adoption *SOURCE: Aberdeen Research 6 © 2012 Ariba, Inc. All rights reserved.
  • 7. We Are Product Leadership Have online channel changed the way you sell? (yes) Operational • How can I reduce cost to help fund product innovation/R&D Better differentiation of Excellence efforts? your products/services offering Best-in-Class All Others 0.0% 20.0% 40.0% 60.0% 80.0% *SOURCE: Selling Power Survey 2011 • If you are Product Leadership. Product • Primarily “First to Market” with Leadership innovated product/service. Increased sales 28% opportunities • How can I capture better data Improvements in 12% Customer to help develop innovative Customer Satisfaction Intimacy customer products and services? 0% 5% 10% 15% 20% 25% 30% *SOURCE: Aberdeen Research 7 © 2012 Ariba, Inc. All rights reserved.
  • 8. We Are Customer Intimacy Increased revenue from • How can I best service our new customers Operational customers in a cost-effective Increased revenue Excellence manner? from existing customers Increased retention rates Product • How can we build products Greater customer and services that anticipate Leadership our customers’ future needs? satisfaction Best-in-Class All Others 0.0% 20.0% 40.0% 60.0% 80.0% *SOURCE: Selling Power Survey 2011 • Gain an average of 36.6% increased Customer • If you are Customer Intimacy sales in new accounts Intimacy • Revenue/Sales focus • Gain 39.8% increase in existing accounts • Increase retention rates by 48% 8 © 2012 Ariba, Inc. All rights reserved.
  • 9. Speakers Today Cara Balint, Manager eCommerce Operations Insight Direct USA, Inc. Cara has spent her entire career, working with teams large and small to implement technology . Cara developed an eCommerce strategy at Insight that brought together 21 different international countries and divisions handling over 70% of all Insight’ business commerce transactions including regular multimillion- dollar online orders. Cara came to Insight from Software Spectrum as part of an acquisition in 2006, where she was eCommerce Client Ops Manager. In her role at Software Spectrum/Insight she oversees the implementation of a global eCommerce strategy. She has developed several highly effective methods that have successfully built the customer’s trust, and improved efficiencies resulting in increased growth within her department year over year. 9 © 2012 Ariba, Inc. All rights reserved.
  • 10. S Building the Business Case for E-Commerce Cara Balint Insight eCommerce Client Operations Manager © 2012 Ariba, Inc. All rights reserved.
  • 11. Insight Overview • Founded in 1988, headquartered in Tempe, Arizona • $5.3 billion in revenues in 2011 • Approximately 5,300+ teammates worldwide • Operations in 23 countries, serving clients in 191 countries worldwide • Premier IT service offering with capabilities in Software, Data Center, Networking and Security • 2,500+ product and industry certifications • SAS 70 Certified Network Operations Center • Software lifecycle support for 80 percent of Global Fortune 500 • ISO 9001:2008 Certified Integration Lab and National Repair Center 11 © 2012 Ariba, Inc. All rights reserved.
  • 12. Insight and Ariba • Currently 24 active ANIDs and growing, supporting North America, EMEA and APAC regions • Just under 170,000 transactions took place between Ariba and Insight from November 2010 to November 2011 • Ariba Platinum supplier – 2010 • Approximately 70% of Insight’s eCommerce B2B transactions comes through Ariba 12 © 2012 Ariba, Inc. All rights reserved.
  • 13. The Things We Know and Do Today • When you get curious about something.. Anything…we go to Google or Bing What does that mean? • NY Times reported that 15% growth in 2011 over 2010 in online holiday shopping • Per ComScore, over 565,000 new businesses start each month. Over half of them start with a web page » The new store front..is your web page 13 © 2012 Ariba, Inc. All rights reserved.
  • 14. The Things We Know and Do Today • Automation is more efficient than manual • Take a Look Reduction in human error – % of orders submitted once verses % of orders resubmitted » manual entry verses automated entry Faster input – Time of human entry, from receipt to dispatch verses time of automated entry Faster payment – Order to cash manual verses automated. » Other items also influence this such as the way the payments are posted 14 © 2012 Ariba, Inc. All rights reserved.
  • 15. The Things We Know and Do Today Less overhead – Cost of personnel (wages, space, etc.) verses cost of system maintenance and management Easier to track trends – The use of tools like Coremetrics and Google analytics let you know where your customers are in your website and what they are doing. Better uses of resources – Sales can sell 15 © 2012 Ariba, Inc. All rights reserved.
  • 16. Target Savings to… • Technology that enhances the relationship: The Human Touch Online Chat – Real person with real answers Marketing Automation Tools – Sell what you know they want » Tools that track the users activity so you are prepared to offer what they are interested in Invest in “kindness” – “Please” and “Thank you” sound better with tone and inflection. 16 © 2012 Ariba, Inc. All rights reserved.
  • 17. What to Expect in ROI $714 $27 $769 $17 $0 $1,400 $0 $1,200 $1,000 $800 $91 $600 $329 $400 $200 $0 ($200) Ariba Fees Process Cost Savings Faster Payment Customer Self-Service VAN Cost Savings Mktg/Sales Cost Net Cost Savings Benefit New Revenue Growth in Accounts Avoidance Opportunities ($400) -$365 ($600) 17
  • 18. Common Pitfalls “Most Sellers are in E-Commerce as a direct result of satisfying a customers request.” Managing the solution is half the battle – Know how to present what you sell effectively » Easy navigation, good visuals, simple checkout » Cater to your target audience – Know what you can and can’t do » Don’t offer free over night shipping if you can’t deliver. » Have a Integration guide » Always offer a test site – Take A Look 18 © 2012 Ariba, Inc. All rights reserved.
  • 19. The Hidden ROI: The Trust Factor In 2011, Insight increased B2B/EDI revenue by 18% over 2010. For the first time in the company history, B2B/EDI revenue was 10% higher than the Web revenue. The Insight website had 12.3% more items ordered. The Insight website has 45% more customers than B2B or EDI customers. WHAT DOES THIS MEAN? 19 © 2012 Ariba, Inc. All rights reserved.
  • 20. The Hidden ROI: The Trust Factor • Large companies are recognizing the ease in the web, but they need security. • A B2B relationship secures the connection and brands it as a “Dedicated Relationship”. • A Supplier and a Buyer on the same “network” instills common knowledge. . 20 © 2012 Ariba, Inc. All rights reserved.
  • 21. Summary • The Internet is a common tool in today's world • Automation is a more efficient practice than manual processes • Investment in “Humanizing” technologies to be a differentiator • Large businesses are starting to see larger revenue in “dedicated connections” as they offer security in transactions 21 © 2012 Ariba, Inc. All rights reserved.
  • 22. Ariba Methodology Estimate Future Complete Gather “As-Is” Customer ROI Financial Costs and Revenue Compliance Costs Templates Potential Step Description 1. As-Is Cost Gather current costs of: Gathering • Compliance in PO, invoice, catalog processes • Customer care, inquiries and disputes • Working capital and accounts receivables • Sales and marketing costs 2. Future Cost Estimate future costs, savings, and revenue potential including: and Revenue • Catalog, order, invoice processing automation Estimates • Customer self-service • Increased accuracy • Reduced DSO and working capital costs • Sales and marketing costs • VAN costs 3. ROI Financial Populate financial templates Templates 22
  • 23. Areas of Opportunity and Data Gathering and Analysis Process Costs/Labor Costs Working Capital Costs Sales & Marketing • Catalog development, • Day Sales Outstanding • Customer retention programs publication, mailing costs Reduction (eInvoicing) • Customer retention rates • Order taking and PO • Total value of receivables • Customer acquisition processing • Typical payment terms and programs • Order confirmation and actual length of payment cycle • Customer conversion rates advance ship notice creation • Cost of capital • Year 1 revenues from new • Invoice entry and mailing costs customer • Customer care and follow-up • Steady state annual revenues • Accounts receivable follow-up per customer • Purchase order error rates • Invoice rejection rates • Customer inquiries & dispute resolution 23 © 2012 Ariba, Inc. All rights reserved.
  • 24. Key Ariba Benefit Drivers • Higher revenue by increasing wallet share 26-32% through increased buyer compliance • Increased revenues with new accounts • 15-20% reduction in days sales outstanding 6 to 25 days shaved off the cycle • 60-75% productivity gains for suppliers that fully automate their interactions with the Ariba Supplier Network • 45-60% increased accuracy in customer purchase orders • 20% reduction in invoice disputes 24 © 2012 Ariba, Inc. All rights reserved.
  • 25. Q&A 25 © 2012 Ariba, Inc. All rights reserved.
  • 26. Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations** 26 © 2012 Ariba, Inc. All rights reserved.

Editor's Notes

  1. Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. <CLICK>In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselves<CLICK>This represents 65% of companies still in this Enablement mindset. <CLICK> When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  2. Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. <CLICK>In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselves<CLICK>This represents 65% of companies still in this Enablement mindset. <CLICK> When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  3. Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. <CLICK>In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselves<CLICK>This represents 65% of companies still in this Enablement mindset. <CLICK> When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  4. Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. <CLICK>In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselves<CLICK>This represents 65% of companies still in this Enablement mindset. <CLICK> When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  5. Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. <CLICK>In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselves<CLICK>This represents 65% of companies still in this Enablement mindset. <CLICK> When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.