SAP and Ariba together are offering solutions under one roof that cover the procurement process end-to-end and support all categories of spend. Our solutions portfolio allows SAP customers to quickly and easily benefit from the Ariba Network, and deploy Ariba’s cloud-based sourcing and procurement solutions, connected to their existing SAP infrastructure. Join this session to hear how SAP’s own Global Procurement Organization successfully runs a hybrid model that combines SAP ERP and SAP SRM with the Ariba applications and the Ariba Network into a comprehensive, efficient business system to gain maximum compliance and efficiency.

1. #AribaLIVE
@ariba
Driving End-to-End Procurement
Excellence with Integrating SAP
and Ariba
Martin Vajdl
Managing Director SAP BSCE
Head of Procurement Solutions Excellence SAP SE
© 2015 Ariba – an SAP company. All rights reserved.

2. #AribaLIVE @ariba
Business Landscape Transformation 2020
Business landscape is increasingly digital, networked and complex
1 ScienceDaily. ScienceDaily, 22 May 2013
2 Technology Adoption Report: Business Networks, Ardent Partners, 2014
3 Internet of Things (IoT) 2013 to 2020 Market Analysis: Billions of Things, Trillions of Dollars, IDC, 2013
4 Statista, 2014
© 2015 Ariba – an SAP company. All rights reserved.2

3. #AribaLIVE @ariba
Future Trends for Procurement 2020
Three Trends in the Market – From Service to Function
Value Creation for Supporting Business Functions – Procurement as Business Value Enabler
Value creation is more important than procurement savings, which are not hitting the bottom line.
Focus on implementing new innovations to deliver business value and drive transition to source services instead
of goods.
1
2
3 Leveraging Shared Services Concepts – Sourcing Factory
Intelligent managed service concepts to discover untapped spend (like for small countries) and to
increase compliance.
Networked Economy – Business Networks to Revolutionize Sourcing for Procurement
Use cloud networks to link various platforms and consolidate spend while achieving real-time collaboration. Enable the
function to harness the power of predictive analytics to be first to get competitive market insights and drive better
business decisions. Leverage network and analytics to improve working capital and reduce transactional costs by
end-to-end process automation.
© 2015 Ariba – an SAP company. All rights reserved.3

4. #AribaLIVE @ariba
Supplier innovations are essential for
the transition and to optimize spend
• Price reductions are becoming extinct
making supplier innovations and support for
the R&D function key to create real value
• If you hit the bottom line of the production
costs, you simply cannot further reduce
the price
Example
Supplier-driven innovation
Streamline the organization and
automate operational tasks freeing
resources for the LOB
• Understand the business, drive business
from aggregation to execution for all
sourcing events
• Buyers will have a new role as an invested
advisor with a shifted focus to purchasing
services
Example
It’s not the coating, but the ready painted car
Run Simple Drive Innovations
Future Trends for Procurement 2020
Transition of Procurement to Business Value Enabling – Company Examples
© 2015 Ariba – an SAP company. All rights reserved.4

5. #AribaLIVE @ariba
Transition to fully integrated and automated purchase-order to invoice process will be a must in the future to reduce
transactional costs and free up resources to focus on value adding activities in the
end-to-end process.
The social media capabilities of
-like shopping market place
End-to-end automation
for all transactions
Ariba Network will be THE B2B Network of the future
Ariba Network Combines 11% Travel & Other Services
28%
Contingent Labor
& SOW
27%
Direct &
Logistics
11%Capex
23% Indirect
What is next for the Future of Procurement?
Procurement is in a Transformation from Service to Function
5

6. #AribaLIVE @ariba
Ariba Network provides benefits for both
CPO – to leverage purchasing power and reduce transactional costs
CFO – to reduce transactional costs by invoice automation Automation
Increase in invoice automation
within short timeframe
SAP: +50% in 12 months
Productivity
Increase in overall productivity for
procurement
SAP: +20% in 18 months
Invoicing
Reduction in procurement
costs using cloud solutions
from Ariba, an SAP company, and
the Ariba Network (from €11.5 to
€6.7 per invoice) Example: SAP
CFO ValueCPO Value
Spend
Will be leveraged to a high
extend to realize additional
savings (Margin impact)
PO
Increase in overall productivity
for procurement to automate
purchase orders
100%
Compliance and capturing of all
information / knowledge on the
Ariba Network
Ariba Cloud for Goods
Fieldglass for Services
Concur for Travel
Transaction automation
on the combined network
of Ariba, Fieldglass and
Concur
Evolution of Procurement towards a Strategic Function
CPO and CFO Value Proposition on Ariba Network & Catalog of Catalogs

7. #AribaLIVE @ariba
Problem:
Strategic spend is managed by global
categories or on regional level with strategic
and/or preferred suppliers.
Tail spend and spend for small countries (tier 3
countries) are not or partly managed which
leads to missed savings opportunity and
non-compliance risk.
Solution:
Sourcing Factory model is an answer to better
manage not globally/regionally covered spend.
Sourcing on Business Networks or based on global supply database to ensure fast and compliant processing of
non-strategic spend.
Intelligent managed organizational concepts are required to manage untapped spend areas or serve very small countries in a
compliant way.
A sourcing factory model – captive or as managed (outsourced) service – will expand the reach of procurement organizations in the future.
Sourcing Factory
Leverage Organizational Capabilities
1
2
3 Remaining spend
Low-value spend for
which clear buying
channels still to
be defined
Tail spend
Global managed spend
Significant spend per supplier
that is currently managed
Spot buying spend
One-off requests with no
current Procurement
involvement, but opportunity
to establish a bidding
process
Totalspend
(bysupplier)
Managed spend
Sourcing factory scope
Business Networks
© 2015 Ariba – an SAP company. All rights reserved.7

8. #AribaLIVE @ariba
Process & Systems Overview: Hybrid Model
Source-to-Pay Process and Systems: On-premise and cloud-based solutions for
upstream and downstream processes
Ariba for Goods,
Fieldglass for Services and
Concur for Travel
to-Pay
Accounts Payable and
Travel & Expenses
Source-to-Purchase
Strategic and Tactical Procurement
Purchase-
Operational
Procurement
Processes & Systems
E2E P2P & Cloud Systems,
Networks, Mobile
Organization & People
Globalization Category
Managements
SAP SRM &
SAP ERP on HANA
© 2015 Ariba – an SAP company. All rights reserved.8

9. #AribaLIVE @ariba
Achievements Transformation Global
Procurement@SAP
Source-to-Pay Automation, Business Networks and Shared Services
Streamline entire Source-to-Pay Process
 Leverage economies of scale and control through
shared services
 Cut costs through automated data extraction and
process automation
 Create workforce efficiency through streamlined
processes including mobile approvals
 Reduce errors at the source
 Improve working capital management through better
visibility to cash requirements
 Optimize cash discount utilization including
dynamic discounting
Achievements: Facts & Figures
3 months implementation time
>4,000 suppliers on Ariba Network
140,000 invoices transmitted
50% increase in automation
20% productivity gain
>1.0bn Purchase Order value sourced
© 2015 Ariba – an SAP company. All rights reserved.9

10. #AribaLIVE @ariba
RUN
BETTER
WITH
Many Thanks and Q&As
© 2015 Ariba – an SAP company. All rights reserved.10