A category enablement strategy is critical to driving the benefits of your SAP Ariba solution program. Do you know the different buy processes that are available? Do you know how you will enable each spend category? Do you know the solution capabilities that are needed to support it? In this workshop, we educate you on the key components of a best-in-class category enablement strategy, positioning you to develop a category enablement plan that will generate results.

1. PUBLIC
Ann Kildahl, SAP Ariba
Amina Anderson, SAP Ariba
Eric Salviac, SAP Ariba
June 2017
Maximize SAP Ariba Solution ROI
Through an Optimized Category
Enablement Strategy

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Category Enablement Strategy Overview
SAP Ariba Buying Processes
Linking Categories and Buying Processes to a Flight Plan
Workshop Activity
Next Steps
Survey
Appendix
Agenda

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 A category enablement strategy is a specific approach to building
a flight plan based on categories of spend
 A flight plan is a phased approach to enable spend in SAP Ariba
solutions and over the Ariba Network to achieve business
objectives and ROI within a defined period of time
 There are several ways to build a successful category-driven
strategy – the option you choose depends upon your priorities
What is a category-driven enablement strategy?

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Best Practices Compliance
ROIAdoption
Category
enablement
strategy
What is the impact?
Ensures
categories are
mapped to best-
practice-based
buying processes
Maximizes spend
brought under
management
Optimizes
supplier and
end-user
adoption
Drives value and
timely ROIbuyer supplier

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Category enablement focused flight planning inputs
Business case and ROI collaboration and alignment
Category identification through spend analysis
Category buying process mapping
Enablement and adoption assessment - content and process
User and supplier readiness assessment
Flight plan
Category-driven focus and strategy
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2
3
4
5

6. Categories and Buying Processes

7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Category-buying process mapping is the activity of mapping
categories of spend to best-practice-based SAP Ariba
solution buying processes. The process requires:
 A clear view of your business case drivers and their prioritization
 Knowing the core business process requirements of the category
 Understanding the different buying processes within your SAP
Ariba solution(s)
Category-buying process mapping

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba buying processes for indirect procurement
Buy process Description Best use cases
Catalog
Buyer selects item from a company-specific catalog for
purchase.
SKU-based items such as office supplies,
promotional products, non-inventoried MRO, IT
hardware and peripherals
Spot buy
Buyer selects item from a public marketplace catalog for
purchase.
Infrequent, one-off purchases fulfilled via public
marketplace e-catalogs; can include non-sourced
categories
Contract-based
requisition
Buyer selects item from a company-specific catalog
linked to a contract-based item, commodity code, or
supplier (such as volume-based discounts).
Goods and services such as facilities maintenance,
items on consignment, items with tiered pricing, etc.
Invoice against contract
Contract pricing terms are entered into the application
without the need for a PO. These terms are available for
the supplier to invoice.
Simple and complex services for recurring,
milestone, or fixed-fee activities to include consulting,
professional services, property care (snow removal,
landscaping, janitorial services, rent, etc.)
Collaborative
requisitioning
Collaborative between buyer and supplier supporting
information exchange, e.g., on specifications, spot
quotes, and three bids and a buy.
Simple and complex products and services that
require collaboration between buyer and supplier to
include goods with variable pricing, marketing
services, contingent labor, etc.
Non-catalog requisition
Buyer enters information manually into requisition; in
many cases with a supplier quote attached.
Infrequent and uncommon purchases; sourced
through existing suppliers for goods and services not
in a catalog
Non-PO invoice
AP group creates an invoice in system for payment or
supplier creates invoice and routes to buyer for
payment.
Infrequent, one-off, and low-dollar purchases such as
catering services, employee reimbursements,
charitable contributions, etc.
2
3
4
5
1

9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Upon completion of category-buying process mapping, assess other critical factors:
 Solution enablement complexity
 Process adoption complexity
 User readiness
 Supplier readiness
Other factors
Business case and ROI collaboration and alignment
Category identification through spend analysis
Category to buying process mapping
Enablement and adoption complexity
assessment of solution, content, and process
User/supplier readiness
assessment
Flight plan

10. Category and Buying Process Linked Flight Plan

11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Category enablement strategy
Category
Buying
process
Solution(s)
Enablement
complexity
Process
adoption
complexity
User group
User group
readiness
Supplier
readiness
Spend
Transaction
volume
doc count
Flight plan
wave
Office
supplies
Spot buy or
catalog PO
• SAP Ariba Catalog
• SAP Ariba Buying
Low Low All users High High 50 M 4 K 1
IT hardware
and software
Catalog PO
• SAP Ariba Catalog
• SAP Ariba Buying
• SAP Ariba Buying and
Invoicing
Medium Low
IT group
High High 50 M 5 K 2
Consulting
services
Invoice against
contract
• SAP Ariba Invoice
Management
• SAP Ariba Buying and
Invoicing
• SAP Ariba Contract Invoicing
High Medium
IT High Low 150 M 2 K 3
HR Medium Low 50 M 7 K 3
Legal Low Low 75 M 1 K n/a
Promotional
items
Collaborative
requisitioning
• SAP Ariba Buying and
Invoicing
• SAP Ariba Buying
Medium Medium Print Low Medium 100 M 60 K 2
Landscaping
Invoice against
contract
• SAP Ariba Invoice
Management
• SAP Ariba Buying and
Invoicing
• SAP Ariba Contract Invoicing
High High Procurement High Low 50 M 100 K 3
Sample for illustration only
Wave assigned based
on ease of adoption

12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Category enablement flight plan
Category Region Users Buying process Wave 1 Wave 2 Wave 3 Wave 4
Office supplies Global All users Catalog PO 50 M
IT hardware
and software
Germany IT group Catalog PO 50 M
Promotional
items
France
All users
Collaborative
requisitioning 100 M
Consulting
services Global IT and HR
Invoice against
contracts
200 M
Landscaping Global All users
Invoice against
contracts
50 M
50 M 150 M 250 M 450 M
Sample flight plan
Priority: User adoption ease

13. Category Enablement Strategy Exercise

14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Workshop Exercise: develop category-based wave plan
Industry
Financial services
€75MM
Business savings
80%
Spend under
management
90%
Automation of
procurement and
payable
transactions
Business objectives
 Manage spend: optimize expense management with a centralized Source to Pay strategy
 Savings: assure realized savings, i.e., integrate negotiated savings into contracts and catalogs
 Category management: improve spend visibility to enable enhanced sourcing and commodity strategies
 Compliance: eliminate use of alternative / disparate procurement solutions
Business Goals
Indirect spend
€2 billion
Footprint
20K employees
1,700 locations
Revenue
€8 billion
Goal 1
Achieve savings goal
as quickly as possible
Goal 2
Automate POs &
invoices to optimize
operational efficiency
(e.g., touchless
invoicing)
Goal 3
Ensure positive user
experience and
maximize early user
adoption of new
solution
Sample Company

15. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Category enablement strategy – use case template
Category
Buying
process
Enablement
complexity
Ease of
adoption
User
readiness
Supplier
readiness
Spend
Transaction
volume
Wave number
Office
supplies
Spot buy or
catalog PO
Low High High High 50 M 200 K
IT hardware
and software
Catalog PO
Medium High High High 50 M 50 K
Consulting
services
Invoice against
contracts High Medium High Low 150 M 100 K
Promotional
items
Collaborative
requisitioning
Medium Medium Low Medium 100 M 50 K
Landscaping
Invoice against
contracts
High Low High High 50 M 75 K

16. 16PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Are your organizational goals and objectives known?
 Do you have a business case to validate / support your objectives?
 Do you have a clearly defined strategy to drive success?
 Have you mapped all in-scope spend categories to buying processes?
Get back on track to ensure your organization realizes its ROI
Action Plan

17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Please complete session survey
Locate Session Click Survey Buttons Select Breakout Survey Rate Session

18. Appendix

19. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba solutions needed to support the different buy processes
Buying process SAP Ariba solutions (any of those listed)
Catalog
SAP Ariba Catalog
SAP Ariba Buying
SAP Ariba Buying and Invoicing
Spot Buy
SAP Ariba Catalog
SAP Ariba Buying
Contract-based requisition SAP Ariba Buying and Invoicing
Invoice against contract
SAP Ariba Invoice Management
SAP Ariba Buying and Invoicing
SAP Ariba Contract Invoicing
Collaborative requisitioning
SAP Ariba Buying and Invoicing
SAP Ariba Buying
Non-catalog requisition SAP Ariba Buying
Non-PO invoice SAP Ariba Invoice Management
2
3
4
5
1

20. 20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Buying process decision tree
Price known at time of requisition?
No
Yes No
ServiceGood
Regular
invoice
Flexible
invoice
Flexible
invoice
Regular
invoice
ServiceGood
No SES
SES
needed
No SES
SES
needed
Non- catalog /
Collaborative
requisition
Price known?
Quantity known?
Good or service?
Standard or flexible invoice?
Service entry sheet (SES) required?
Recurring invoices?
Service
order
Contract
invoice
Contract
invoice
Service
order
No SES
SES
needed
Service
order
Contract
invoice
Contract
invoice
Catalog order
/ Spot Buy
Flexible
invoice
Regular
invoice
Contract
invoice
No SES
SES
needed
Service
order
Catalog
order
Non-
recurring
Recurring
Contract
invoice
*Note: Service order is a catalog PO buy process that is related to services purchase requiring service entry sheets
Start
Quantity known at time of requisition?

21. Thank you
Amina Anderson
Director, Network Value Organization
amina.anderson@sap.com
+1 484 422 3533
Ann Kildahl
Director, Value Realization - EMEA
ann.kildahl@sap.com
+31 611 49 83 64
Eric Salviac
Director, Value Engineering - EMEA
eric.salviac@sap.com
+33 17 037 3511