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Driving Rapid Time-to-Value Through Ariba Collaborative Commerce Solutions
The document outlines the strategic importance of procurement in organizations and presents Ariba's collaborative commerce solutions as a way to enhance procurement efficiency and value. It emphasizes that networked enterprises outperform their competitors, the challenges faced by potential customers, and the value proposition of Ariba's cloud-based services for managing spend effectively. Customer success stories, including improvements in catalog management, invoice processing, and supplier collaboration, are also highlighted.
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Driving Rapid Time-to-Value Through Ariba Collaborative Commerce Solutions
- 1. Driving Rapid Timeto Value through Ariba Collaborative Commerce Solutions Vikram Pathak ยฉ 2013 Ariba, Inc. All rights reserved.
- 2. #AribaLIVE The information inthis presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAPยดs willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. Legal disclaimer
- 3. #AribaLIVE Agenda โข Executive Summary โขWhy do we need Collaborative Commerce? โข Whatโs the Value Proposition? โข Customer Success Stories โข Peek into Roadmap 3 ยฉ 2013 Ariba, Inc. All rights reserved.
- 4. #AribaLIVE Aribaยฎ Collaborative Commerce ExecutiveSummary 1. Procurement has a more strategic role in todayโs organizations. It must deliver value and bottom line savings. 2. Most customers manage only a fraction of their spend even with Procurement Automation. But they must increase spend managed to achieve their goals. 3. โ Networked enterprises are 50% more likely to have increased sales, higher profit margins, gain market share, and be a market leader. โ 4. Ariba provides a fast and differentiated solution for the entire Procure-to- Pay cycle even for companies using non SAP ERP eProcurement systems How do you maximize your SAP (or other ERP) Procurement investment? How do you improve collaboration with your trading partners? Why does a network make you more profitable? Source: McKinsey & Company, โThe rise of the networked enterprise, Web 2.0 finds itโs payday.โ December 2010
- 5. #AribaLIVE Agenda โข Executive Summary โขWhy do we need Collaborative Commerce? Business Drivers Market Situation โข Whatโs the Value Proposition? โข Customer Success Stories โข Peek into Roadmap 5 ยฉ 2013 Ariba, Inc. All rights reserved.
- 6. #AribaLIVE The Reality ofTodayโs Business: According to CFO Researchโฆ 61% of you will have increased cost savings targets 44% of these targets will be greater than 5% Creating Process Efficiencies is the top priority for CFOs Source: CFO Magazine survey of 263 senior finance executives 6 ยฉ 2013 Ariba, Inc. All rights reserved.
- 7. #AribaLIVE Top Business Focuses RevenueCosts Risk ManageCash RISK MANAGE CASH The Reality of Todayโs Business: 7 ยฉ 2013 Ariba, Inc. All rights reserved.
- 8. #AribaLIVE The Challenges WeHear from Potential Buyers I canโt find what I need! New products arenโt there. Itโs too complicated to use! Iโll just phone Jim like I always do! The pricing is never right. I canโt buy services! Users Poor adoption of Procurement Systems Not enough suppliers enabled Catalogs not up-to-date System is not user friendly No Complex Services Lack of Contract Compliance โ Difficulties managing compliance to contracts, SLAs and regulations introduces legal and financial risks. Contract leakage and exception management. Poor Collaboration โ Collaboration with trading partners is limited to email, mail, fax, and phone. Inefficient plus lack of order/invoice data hampers productivity. 8 ยฉ 2013 Ariba, Inc. All rights reserved.
- 9. #AribaLIVE The Challenges WeHear from our Potential Customers: The maintenance is too much! It takes too long to get catalogs up! I give up, I canโt control the spend! Everybody goes around the system! I canโt connect multiple systems! Procurement/IT/AP Different systems have different applications- increased costs and time. High Maintenance โ Catalogs are costly to maintain as well as multiple systems Lack of Contract Compliance โ Difficulties managing compliance to contracts, SLAs and regulations introduces legal and financial risks. Contract leakage and exception management. Long invoice cycle times โ Missed discounts, late payments, lack of compliance Invoices arenโt getting paid on time 9 ยฉ 2013 Ariba, Inc. All rights reserved.
- 10. #AribaLIVE The Solution: AribaยฎCollaborative Commerce A cloud-based solution that extends the business process capabilities of SAP (or other ERP) systems across your extended supply chainโฆ Aribaยฎ Collaborative Commerce Aribaยฎ Collaborative Commerce is: โข Easy to Use Catalog โข Purchase Order Automation โข Invoice Automation โข Invoice Conversion Services (Open ICS) Collaborative Commerce โข Complete Compatibility with SAP NetWeaverโข โข Trading Partner Connectivity โข Supplier Enablement โข Catalog Management โข Buyer Portal โข e-Invoice Receipt 10 ยฉ 2013 Ariba, Inc. All rights reserved.
- 11. #AribaLIVE Aribaยฎ Collaborative CommerceExpanded Contract Compliance Catalog Support PO Collaboration Invoice Receipt & Compliance ARIBA Collaborative Commerce Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier EDI Email CSV HTML cXML AS2 Paper Enterprise ERP xCBL Smart PDF โข Plug-in to 800K+ Suppliers โข Single Point of Collaboration for all Suppliers โข Collaboration Capabilities to Include all Spend Types โข Simplified Buying โขDeployed in little as 14 weeks, High ROI Requisition Ownership and Order Workflow Goods & Services Receipt Exceptions and Approval Workflow PAY CORE ERP POs Invoices Order & Shipment Confirmation POs Invoices Order & Shipment Confirmation 11 ยฉ 2013 Ariba, Inc. All rights reserved.
- 12. #AribaLIVE Catalog Capabilities Capabilities andbenefits โข Simplified shopping for casual users โข My Favorites โข Kits & Bundles โข 3 Bids &Buy โข Level 2 Punch Outs โข Complex Services Quotations (optional) โข Generation of a requisition, reservation, or purchase order โข Drive spending to preferred vendors, contracts โข Supplier catalogs delivered via the Ariba Network PO Collaboration Invoice Receipt & Compliance Ariba Collaborative Commerce Requisition Ownership and Order Workflow Goods & Services Receipt Exceptions and Approval Workflow PAY CORE ERP Contract Compliance Catalog Support 12 ยฉ 2013 Ariba, Inc. All rights reserved.
- 13. #AribaLIVE Usability Helps Adoptionโฆ ยฉ2013 Ariba, Inc. All rights reserved.13 โข Users can find what they need โข From the suppliers they want โข At terms that are proactively compliant Non catalog items Favorites Shopping cart Dashboard view Type ahead Filtering Approved suppliers Compliant to your contract โWe start to see Ariba much more like Amazon.com, users are adopting that much faster.โ
- 14. #AribaLIVE PO and InvoiceAutomation Contract Compliance Catalog Support PO Collaboration Invoice Receipt & Compliance Ariba Collaborative Commerce Requisition Ownership and Order Workflow Goods & Services Receipt Exceptions and Approval Workflow PAY CORE ERP Capabilities and benefits โข Delivery of electronic POs from any system โข Real-time visibility into order status, ASNs, and related documents โข Paper and electronic invoice capture โข >70 configurable business rules capture errors and exceptions before they reach AP โข Auto post rates of 98%+ โข Self-service supplier portal for real-time invoice/payment status โข Flexible invoice submission options, including PO-Flipยฎ โข Compressed invoice processing cycle 14 ยฉ 2013 Ariba, Inc. All rights reserved.
- 15. #AribaLIVE Aribaยฎ Collaborative Commerce FunctionalProcess Flow System generates contract compliant POs from approved reqs Suppliers create electronic invoices which are routed via the Ariba Network Approvals are routed to managers and/or purchasing agents based on business rules End-users create requisitions for goods & services from electronic catalogs in Ariba that are accessed through their ERP โ seamlessly and checked for contract compliance User UserUser OK-To-Pay sent to ERP and Suppliers are paid via ERP Accounts Payable system End User ERP POs routed to suppliers via the Ariba Network Global Supplier Community Supplier Supplier Supplier Supplier Supplier Supplier Portal XML Fax EDI AS2 CSV Email Suppliers send back acknowledgements and/or Advanced Ship Notices Goods are shipped / Services are performed by the supplier Central and/or end user receiving is performed โ sign off on services performed ERP 2, 3, and/or 4-way invoice matching and reconciliation is done using POs, receipts, and contracts - payment is approved by Accounts Payable dept OK-To-Pay ERP ERP 15 ยฉ 2013 Ariba, Inc. All rights reserved.
- 16. #AribaLIVE Agenda โข Executive Summary โขWhy do we need Collaborative Commerce? โข Whatโs the Value Proposition? โข Customer Success Stories โข Peek into Roadmap 16 ยฉ 2013 Ariba, Inc. All rights reserved.
- 17. #AribaLIVE Why Aribaยฎ CollaborativeCommerce? Key value proposition โ Control the most spend โ โMore spend under managementโ โข โPercent spend under management: BIC: 88%, Ariba 99%โ- Aberdeen Group compared with fully adopted Ariba solution suite; Ariba Benchmarking, Aug 08 โก Casual-user friendly / quick adoption โข Manage any kind of service, Manage goods and services By managing more categories including goods and any service, Spend managed is increased. Average services spend in an organization 20- 80%. โฃ Reduce paper, reduce problem invoices and improve invoice processing cycle times โค More effective collaboration via the worldโs largest Business Network SAPorOtherProcurementCustomers Value derived โ Enable more suppliers with catalogs, POโs and e- Invoicing quickly through the Ariba Network โก Achieve better user adoption with user friendly interface Gartner awarded Ariba an "Excellent" rating for ease-of-use.* Ariba has intelligent fuzzy search, parametric refinement along with side-by-side comparisons in a single user interface โข Manage more spend for increased savings Indirect, Direct, MRO, Complex/Services โฃ Create a touchless invoice process, with the Ariba Network โSmart invoicingโ โค SaaS solution achieves payback in the first 12 months โฅ Proactive compliance with Contracts โฆ Faster processing allows better cash and discount management * Critical Capabilities for Best-of-Breed E-Procurement Vendors, June 2009
- 18. #AribaLIVE Aribaยฎ Collaborative Commerce: CustomerProof Points Competitive Differentiatorsโข Quick Catalog Enablement: Disney - Before: 2-4 weeks, After: 5 business days โข Up-to-Date Content: Disney โ Before: 3-7 days, After: 1 day โข Catalog Accuracy: Disney โ Before: 95%, After: 99%+ โข Solution Adoption: Carlsberg โ 15% increase in solution adoption โข Invoice/Payment processing: Carlsberg โ 30% improvement โข Invoice Matching: Alcoa โ 99.99% first time match rate of POs to invoices โข Paper Invoice Reduction: Alcoa - 56% reduction in paper invoice volume in North America
- 19. #AribaLIVE Agenda โข Executive Summary โขWhy do we need Collaborative Commerce? โข Whatโs the Value Proposition? โข Customer Success Stories โข Peek into Roadmap 19 ยฉ 2013 Ariba, Inc. All rights reserved.
- 20. #AribaLIVE Collaborative Commerce for usewith SAPยฎ Carlsberg A/S ยฉ 2013 Ariba, Inc. All rights reserved.20 โข Catalog Setup Using the Network โข 15% increase in solution adoption beyond where company could get with an ERP-centric solution โข 30% improvement in Invoice/Payment processing โข 30% improvement in response times and service level from IT thanks to a simpler solution design and footprint โข Using Ariba Procurement Content in 13 countries Company Carlsberg A/S Profile One of the largest global beer companies Solution Ariba Collaborative CommerceTM for use with SAP Challenges Solutions Results โข Multi-year ERP migration to a single instance of SAP โ crowding out opportunity to quickly capture opportunities in the supply chain without an additional partner โข Procurement function was set-up as an independent business with its own P&L โ needed a best-in-class solution to ensure success โข Organization spread out globally, leading to lack of enforcement of company agreements โข Incorporate new companies from acquisitions โข Ariba Procurement Content set up and connected to SAP core ERP system and SAP SRM 7.0 version โ Ariba catalogs faster and easier to use than SAPโs โข Support major project to get suppliers and catalogs enabled โข Extensive use of Catalog views in scope (filtered views) to use fewer catalogs but display global agreements appropriately to users groups, business unit, or geography
- 21. #AribaLIVE Collaborative Commerce for usewith SAPยฎ Case Study: Lexmark Ariba P2P + SAP ยฉ 2013 Ariba, Inc. All rights reserved.21 โข Best- in-class capabilities that delivered 100% spend - process compliance โข Seamless transition - system functioning as designed โข Catalogs expanding globally, eliminating rogue processes โข Supplier records reduced by 75% โข Optimized global shared service centers 21 Company Lexmark International, Inc. Profile A leader in developing, manufacturing and supplying printing and imaging solutions for offices and homes Solution Ariba Collaborative CommerceTM for use with SAP Ariba Procure-to-Pay Ariba Network Challenges Solutions Results โข Movement to shared service centers dictated need for global processes โข Change management and high costs associated with training, maintenance and support โข Ariba Collaborative CommerceTM for use with SAP โข Ariba Procure-to-Pay http://www.youtube.com/watch?v=s2D26Xp1gyA&feature=plcp Always validate customer satisfaction prior to referencing their story
- 22. #AribaLIVE Walt Disney ยฉ 2013Ariba, Inc. All rights reserved.22 โข Ease of use โข Rapid user adoption โข Increased catalog performance measured and sustained post deployment โข Supplier collaboration โข Decreased technical support resource requirements โข Improved catalog maintenance cycle times โข Increased stakeholder demand for new supplier catalog 2222 Company The Walt Disney Company Limited Profile A leading diversified international family entertainment and media enterprise with four business segments: media networks, park and resorts, studio entertainment and consumer products Solution โข Collaborative CommerceTM for Procurement โข Ariba sourcing solutions โข Ariba spend visibility solutions Challenges Solutions Results โข Lack of functional innovation โข Support requirements growing faster than resource availability โข Legacy business rules that hindered efficient catalog management โข Manual processes โข Desired functional improvements deemed high risk and cost prohibitive to develop on the SAP platform โข Deployed Collaborative CommerceTM for Procurement โข Deployed Ariba Spend Visibility โข Deployed Ariba Sourcing - Shay Conway, Disney Enterprise Manager for Procure to Pay โFocus on the user experience and results will follow.โ Collaborative Commerce for Procurementยฎ Not for use outside Ariba - this slide is for internal training purposes only
- 23. #AribaLIVE Collaborative Commerce for Procurement 23 RockTenn ยฉ2013 Ariba, Inc. All rights reserved.23 Company RockTenn Profile Leading producer of paperboard, containerboard and consumer-corrugated packaging products Solution โข Collaborative CommerceTM for Procurement โข Ariba Invoice Conversion Service (ICS) Challenges Solutions Results โข Need to improve collaboration with suppliers around orders generated from JD Edwards system โข Decentralized AP processing structure contributed to inefficient, costly invoice processing โข Too many invoice errors โข Inability to identify suppliers that were consistently submitting problem invoices โข Deploy Collaborative CommerceTM for JDEdwards solution to enable real-time supplier collaboration, smart invoicing to streamline processing and eliminate exceptions โข Ariba Invoice Conversion Service (ICS) for automating the processing of paper invoices โข Improved control over invoice capture and dramatically reduced invoice exceptions โข Enabled movement of suppliers to a fully electronic invoice delivery model โข Transformed AP function by emphasizing data analysis and reporting in place of processing paper invoices โข Laid foundation for expanding early payment discounts capture Not for use outside Ariba - this slide is for internal training purposes only
- 24. #AribaLIVE Collaborative Commerce for Procurementยฎ ยฉ2010 Ariba, Inc. All rights reserved. Albemarle ยฉ 2013 Ariba, Inc. All rights reserved.24 โข Improved requisitioning โ approval processes โข Centralized purchasing in U.S. & EU โข Daily/weekly/monthly visibility into MRO spend โข Historical reporting of volume and pricing trends of specific MRO materials โข $3M in negotiated procurement savings Higher negotiated discounts Enhanced discount capture from improved spend visibility Better spend control driven by higher levels of compliance to contracts and greater reliance on corporate standard catalog items Company Leading Global Specialty Chemicals Company Profile Leading specialty chemical company serving customers in over 100 countries Solution Ariba Collaborative CommerceTM for Procurement Challenges Solutions Results โข Indirect purchasing was 100% text-based requisitioning in SAP โข Limited spend visibility โ too many suppliers to manage โข Savings lost from inconsistent pricing from suppliers โข Purchasing lost leverage with no clear insight into volume and price of spend โข Strategic purchasing took a back seat to transactional overload โข Ariba Procurement Content to ensure compliance with current pricing and preferred suppliers โข Ariba Network to automate PO delivery and enable electronic invoice processing โข Ariba Collaborative Commerce solution for extending the business process driven by SAP SRM beyond the four walls of the enterprise to the extended supplier trading community Not for use outside Ariba - this slide is for internal training purposes only
- 25. #AribaLIVE Agenda โข Executive Summary โขWhy do we need Collaborative Commerce? โข Whatโs the Value Proposition? โข Customer Success Stories โข Peek into Roadmap 25 ยฉ 2013 Ariba, Inc. All rights reserved.
- 26. #AribaLIVE 13s + Roadmap โขAPC New Catalog Architecture Advanced Contract Integration Advanced Catalog Load Advanced Catalog Filtering Shopping templates Catalog Data Pull โข Invoicing Service Invoicing New model for accounting defaults (TBD) Integrated B2B electronic payments 26 ยฉ 2013 Ariba, Inc. All rights reserved.
- 27. #AribaLIVE BUYERS SELLERS Ariba: Solvingthe Collaboration Conundrum ยฉ 2013 Ariba, Inc. All rights reserved.27 For the Worldโs Businesses โ Including 90% of the Fortune 100 More than 800,000 connected companies collaborating on more than โฌ314 billion of commerce in over 140 countries
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- 30. #AribaLIVE Please Complete SessionSurvey ยฉ 2013 Ariba, Inc. All rights reserved.30 Find Session in Schedule Click Choose one Rate Session Thank you for joining us Click Survey and Select Breakout Session Survey
Editor's Notes
- #5ย 1st Box: e.g. focused marketing campaigns, sales tools, customer segments (like PCN, LE, SME, specific industries, โฆ)Include regional specific data (revenue)
- #7ย In a recent CFO study, more than half of them are increasing cost savings goalsMany of these target more than 5% savingsYet only 7% of Finance Execs feel Procurement brings good ideas to the table
- #11ย EaseReachSpeedSustainabilityDiscovery
- #12ย Contrast core ERP vs Ariba Collaborative Commerce capabilitiesDiscuss scope of Ariba collaborative commerce, for buyers-suppliersValue from Ariba
- #13ย Focus on APCDiscuss capabilities/benefitsSupport with solution screenshots
- #14ย Usability is about having something intuitive that is automatically tied to the right suppliers, simple or complex contracts, and terms that will ultimately prevent the buyer from having to go back to modify the order or AP from having to fix pricing that was wrong in the first place.
- #15ย Focus on PO and Invoice AutomationDiscuss capabilities and benefits
- #21ย Win against Hubwoo and IBXWinning factor was number of required catalogsโฆ.and Aribaโs ease of use vs. SAP alternative.Winning factor was the combined incremental value of Ariba Catalogs, Procurement Content, and Contracts and Sourcing tools combinedWinning factor was Aribaโs large existing Supplier Network, and Aribaโs expertise in rapid and cost effective Supplier EnablementWinning factor was Aribaโs services-driven model โ Ariba will do the Supplier enablement, not expect Carlsberg employees to figure it outโฆ.(like in SAP experience).Headquarter in Copenhagen, Denmark Ariba customer since Feb 2009 (sourcing/contracts)
- #28ย And thatโs where we at Ariba come in. Ariba is the leader in cloud-based procurement and invoice solutions and business networks.The problem we solve is quite basic. Simply put, we eliminate all the hassles, paper, phone calls, and other manual or disjointed activities your companies do each day to find new suppliers or business opportunities, place of manage orders, collaborate with customers, suppliers, and other partnersโฆor just get paid.We solve this problem in two ways:We provide the industryโs only complete and integrated cloud source-to-settle platform. >5 million users access our applications to source new suppliers, manage procurement operations, and streamline invoicing and payment โ all without the need to install, maintain, or upgrade software or hardware.The second part of our portfolio is even more compelling. Ariba offers the worldโs largest and most global business commerce network โ helping nearly 1 million companies around the world discover, connect, and collaborate more efficiently than ever before. We simplify and eliminate the burdens of business-to-business connectivity, by providing customers with a single, standard integration pipeline to manage all their purchase, invoice, and payment transactions with all of their trading partners โ regardless of whether you are using Ariba in the Cloud, SAP On Premise, or Oracle, PeopleSoft, SAP, Maximo, you-name-it. The Network includes a host of services to help simplify and streamline the commerce process for both buyers and suppliers โ from discovering and qualifying new partners and business opportunities; to automating key purchase, invoice, and payment transactions; to accessing community-based insights and services that are only available in a networked model โ like dynamic discounting, receivables financing, and community-based ratings and market data.