Everybody’s talking about Cloud this and Cloud that but most of the time it sounds like a marketing buzz phrase no different than “New and Improved”. This session will explain Cloud-Computing basics, and explore why the Cloud is important to the Procurement, IT and Finance. The session will further examine the Commerce Cloud and how these three departments can partner to achieve improved collaboration, revenue, cost savings, and profits.

1. Just the Facts: Building a Fact-Based
Business Case for the Cloud
Richard Vermesch
Direction des Achats Indirects
Auchan
Alexandra Monteiro
Senior Manager, Value Engineering
Ariba, Inc., An SAP Company
© 2013 Ariba, Inc. All rights reserved.

2. #AribaLIVE
Delivering Measurable Benefits
Value to Companies of All Sizes, Industries, Regions
2
Supplier ValueBuyer Value
Sourcing
Procurement
Process
AP Process
Compliance
WCM &
Discount
3-9%
Process
Savings
$3-20
Savings/
Document
1-8%
Spend
Savings
Total
Savings
Faster
Payment
AR Process
Processing
Orders
Sales &
Marketing
Increased
Revenue
15-75%
Time
Savings
15-75%
Process
Savings
5-32%
Revenue
Increase
Total
Savings
Source: Ariba customer surveys and interviews
© 2013 Ariba, Inc. All rights reserved.

3. #AribaLIVE
AribaCollaborative Value Chain – Direct, Indirect,
Services
3
•Spend Data
Enrichment
•Spend
Analysis
•Contract
Collaborat
ion
•Authoring
•Repository
•Requisition
Ownership
•Catalog
Compliance
•Contract
Compliance
•Approv
al
Workflo
w
•PO
Collaborat
ion
•PO
Transmissio
n
•Goods &
Services
Receipt
•Invoice
Receipt
•Invoice
Compliance
•Invoice
Approval
•Exception
Workflow
• Awareness
Marketing
•Lead
Collaborat
ion
•Proposal
Collaborat
ion
•Bidding
Opportunit
y
•Contract
Collaborat
ion
• Contract
Repository
•Catalog
Collaborat
ion
•Catalog
Syndication
•Requisition
Collaborat
ion
•Specificati
on
Negotiation
•Order
Collaborati
on
•Order
Status
•Invoice
Delivery
•Invoice
Collaborat
ion
•Supplier Info;
Performance Mgmt;
Supplier Research
•Company Profile Mgmt
•Customer Account Management
Buyer’s Processes: Analyze to Pay
Supplier’s Processes: Market to Cash
•Payment
Collaborat
ion
•Discount
Collaborat
ion
•Payment
Collaborat
ion
•Payment
Visibility
•Working
Capital
Collaborat
ion
•Category /
Project
Mgmt
•RFI / RFP /
Auction
Collaborati
on
•Savings
Tracking &
Pipeline
© 2013 Ariba, Inc. All rights reserved.

4. #AribaLIVE
Speaker Bio
• Alexandra Monteiro
Alex leads Ariba’s Value Engineering team in Europe, a team focused on
helping companies quickly identify, enable and realise value through
custom-tailored business enablement programmes
Since joining Ariba in 2008, Alex has supported dozens of Ariba customers
across multiple industries to identify a deliver savings in their spend
management initiatives
Prior to joining Ariba, Alex worked in various Buyer and Category Manager
roles for Motorola, Inc.
4 © 2013 Ariba, Inc. All rights reserved.

5. #AribaLIVE
Today’s Business Challenges
• You’ve heard it all before
5
• “New” challenges go further:
...Reduce your costs...
...Do more with the
same people...
...Manage our supply
risk...
...Take costs out...and
make sure they stay out...
...Do more, not with the same
resources but fewer...
... Reduce our supply
risk despite macro
economic conditions …
© 2013 Ariba, Inc. All rights reserved.

6. #AribaLIVE
Today’s Business Challenges
What does this mean?
• Our starting point isn’t zero
6
• By their nature, these
projects become
more complex
• Future gains will come
from looking across
the supply
© 2013 Ariba, Inc. All rights reserved.

7. #AribaLIVE
Building a Business Case
• Unlock the core
7
• Identify value levers
• Determine the size of the prize
• Gear up for success
© 2013 Ariba, Inc. All rights reserved.

8. #AribaLIVE
Building a Business Case
Unlock the Core
8
Procurement Finance
• Negotiation
• Compliance
• Process Control
• Visibility
• …etc…
• Understand the Contrasting Objectives
• Speed
• Visibility
• Cost
• Control
• ...etc...
© 2013 Ariba, Inc. All rights reserved.

9. #AribaLIVE
Building a Business Case
Identifying your Value Levers
9
Analyze
Spend
Source Contracts Procure
Invoice &
Pay
Manage
Identifying Value Realizing Value
Value Lever Description
Price Reduction
Savings tied directly to better sourcing practices and competitive bid process.
Translates directly into per-unit cost savings.
Spend Compliance
Savings associated with the elimination of “maverick” spend and directly tied to %
spend under management (incentives, preferred pricing, etc.)
Process Improvement
Savings from removing process costs, including people, paper, time, 3rd party
fees, legacy technology or rebates, P-card optimization, redundant work, etc.
Cash Management Capture funds through optimization of early payment discounts and DPO.
© 2013 Ariba, Inc. All rights reserved.

10. #AribaLIVE
Building a Business Case
Determine the size of the prize
10
Apply Savings %
Determine
Business Case
Identify
Opportunity Size
Spend considerations:
• % appropriate for tools
• % under management
• % strategic vs tactical
• % already through e-tools
• …etc…
ROI / TCO considerations:
• Ramp rate for channeling spend
• Software Investment Costs
• Implementation Costs (internal
and external)
• Change Management Costs
• 3rd Party Costs
• …etc…
© 2013 Ariba, Inc. All rights reserved.

11. #AribaLIVE
Success
Plan
Building a Business Case
Gear up for success: Your internal organisation
11
Business
Case
• The hard numbers
• Costs, benefits and key KPIs
• Hard business logic
• Holistic plan to realize the
business case
• Considers all dimensions
• People & organization
• Policy & process
• Performance metrics
• Systems & technology
© 2013 Ariba, Inc. All rights reserved.

12. #AribaLIVE
Building a Business Case
Gear up for success: your external organisation
• Put value first
Understand the value proposition
for your supply base
12
• Secure your success
Compliance, Communication, Chang
e
• Build a wave plan for
enablement
© 2013 Ariba, Inc. All rights reserved.

13. #AribaLIVE
Critical Success Factors
• How do you know your business case will lead to success?
13
 You have identified clear ROI#
 You get the green light for funding
 You have established delivery milestones aligned to benefits and
business need
 You have support from all relevant parts of the organisation
 Procurement and AP aligned to drive program and sustain the benefit
 Commitment to drive automation across supply base
 Commitment to mandate or motivate buyers to comply
 Technical resources available to support integration and data
extraction/loading
© 2013 Ariba, Inc. All rights reserved.

14. Questions?

15. #AribaLIVE
Please Complete Session Survey
© 2013 Ariba, Inc. All rights reserved.15
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