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PUBLIC
August 2017
Debashis Banerjee, Keertan Rai, Dave Herman
Innovations in Sourcing, Contracts, and
Spend Analysis
2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
The information in this presentation is confidential and proprietary to SAP SE or an SAP affiliate company and may not be
disclosed without the permission of SAP SE or the respective SAP affiliate company. This presentation is not subject to your
license agreement or any other service or subscription agreement with SAP SE or its affiliated companies. SAP SE and its
affiliated companies have 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 SE or an SAP affiliate company’s strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP SE and its affiliated companies 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 SE and its affiliated companies
assume no responsibility for errors or omissions in this document, except if such damages were caused by SAP SE or an
SAP affiliate company’s 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
3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
 Introduction
 Portfolio Rebranding and Naming
 Innovation Themes and Road Map
 Demo
 Q&A
Agenda
4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SAP Ariba solutions: The world’s leading business commerce network
SAP Ariba cloud solutions simplify source-to-settle process
Suppliers | Sell to settle
Ariba Network
Procurement
Supply
chain
Financial supply
chain
Supplier
management
Strategic
sourcing
Buyers | Source to settle
Selling Fulfillment
Openplatform
Customervalueservices
5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SAP Ariba Priorities
3
Data-driven
smarter decisions
1
Persona-based
user experience
2
Deeper
supplier engagement
6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
SAP Ariba Product Vision
7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Data Driven Smarter Decisions
Innovations:
 Smart item enrichment with deduping
 Large scale optimization with “what-if” analysis
 Intelligent authoring with automated clause
creation
 Neural network–driven classifier
 Smart suppliers suggestions
Driving adoption through native intelligence and enhanced user experience
Demo – Enhanced Authoring, New Contracts User Experience - NDA &
Complex Services
9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Faster time to value with improved technology,
content and processes
 Next-gen classifier ~30% reduction
 Next-gen supplier match ~20% reduction
 Content and process changes ~30% reduction
 Continuous expansion of models and rules
 Improved quality assurance processes
Spend analysis – neural network–driven classifier
Faster enrichment turnaround
30
21
15
5
10
7
5
2
TODAY PHASE 1 - NEXTGEN
CLASSIFIER
PHASE 2 - NEXTGEN
SUPPLIER
PHASE 3 - CONTENT &
PROCESS CHANGES
Average enrichment turnaround
(machine + human days)
Initial Refresh
Scope Range Avg. Initial Avg. Refresh
Invoices 5M-150M 10M 5M
Suppliers 10K-250K 50K 40K
Spend 3B-100B 5B 4B
Demo – Spend Classifier
11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Persona-based user experience
Innovations:
 Operational buyer experience – guided buying
 Shared services experience – shared services
 Strategic buyer experience – strategic sourcing
 Supplier experience
Awesome sourcing and contracting experience for both “buyers” and “suppliers”
Demo – Sourcing
Road Map Overview
14CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
CUSTOMER
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 is the current state of planning and may be changed by SAP at any time.
Planned Q4/2017
User Experience
• Simplified operational sourcing
• Cognitive contracts management
• Search for content in contract line items
Integration
• SAP Ariba Contracts integration with S/4
HANA
• Integrate selected Items to external
systems
• Scheduling Agreements
• Desktop file sync. API – Google Docs,
Drive, Microsoft 360
Smart Sourcing & Contracts
• Advanced cost optimization/What-if
analysis support
• Machine Learning and Artificial Intelligence
based sourcing event creation
• Automated price negotiations
• Legal Clause generation from Sourcing
Awards
• Enforce qualification status on contracts
• Intelligent authoring with automated clause
creation
• Next generation classification engine
Expanded Category Coverage
• Commodity Index based pricing
• Japanese auctions
• Complex service line item hierarchy
• Volume based pricing
User Experience
• New smart strategic sourcing app
• Enhanced smart contracts
• Enhanced smart sourcing
• Mobile support – event management,
contracts
• Enhanced Spend Visibility
Integration
• Automated spend data integration
• Digital signature integration API – Korea,
China
Smart Sourcing & Contracts
• Collaboration support for sharing engineering
drawings and large attachments
• Contract negotiation/in event multi round
bidding
Expanded Category Coverage
• Traffic light auctions
• Service item master integration
• NLP based compliance term extraction
Platforms
• ActiveX removal for reports export
• Globalization – Croatian, Bulgaria, Slovakian
Future DirectionPlanned Q3/2017
User Experience
• Office 2016 support (under Office 365
subscription)
• Improved participant Invite Process
• Enhanced contracts authoring
• Drag and Drop document upload
Integration
• Material Master integration
• Multi-ERP support
• Sourcing integration to S/4 HANA
Smart Sourcing & Contracts
• Award approval at the line item level
• Lookup table formulas
• Contract request creation from sourcing
award
• Additional Custom Category Taxonomies
(SV)
Expanded Category Coverage
• SAP Simple Service item integration
Supplier Management
• Preferred supplier list integration to RFX
• Supplier qualification grid support for
sourcing
• Supplier qualification rules for sourcing
User Experience
• Ad-hoc team member creation from UI
• Mobile support for approval tasks
• Drag and Drop for attachments
• Multi currency enhancements
• My Sourcing Request tile
Integration
• Award to PIR integration
• Contracts to PIR integration
• Improved Contract Line Item web services
Smart Sourcing & Contracts
• Document link sharing with suppliers
• Create sourcing request from Spend
Visibility
• Smart approvals for line items
• Enhanced amendments
• Improved Enrichment Change Requests
(dynamic)
SAP Ariba Sourcing, Contracts and Spend Analysis
SAP Ariba Procurement Application Suite Product Roadmap Overview
Recent Innovations
Q2’ 2017 Release
15CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
CUSTOMER
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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
Please complete session survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session
Thank you.
Aarathi Vidyasagar
Vice President, Head Strategic Procurement,
SAP Ariba P&I
aarathi.vidyasagar@sap.com
Debashis Banerjee
Director, Contracts Management,
SAP Ariba P&I
debashis.Banerjee@sap.com
Dave Herman
Chief Data Scientist, Strategic Procurement
SAP Ariba P&I
dave.herman@sap.com

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Recent Innovations in Sourcing, Contracts, and Spend Visibility - SID 51373

  • 1. PUBLIC August 2017 Debashis Banerjee, Keertan Rai, Dave Herman Innovations in Sourcing, Contracts, and Spend Analysis
  • 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public The information in this presentation is confidential and proprietary to SAP SE or an SAP affiliate company and may not be disclosed without the permission of SAP SE or the respective SAP affiliate company. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP SE or its affiliated companies. SAP SE and its affiliated companies have 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 SE or an SAP affiliate company’s strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP SE and its affiliated companies 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 SE and its affiliated companies assume no responsibility for errors or omissions in this document, except if such damages were caused by SAP SE or an SAP affiliate company’s 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. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public  Introduction  Portfolio Rebranding and Naming  Innovation Themes and Road Map  Demo  Q&A Agenda
  • 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public SAP Ariba solutions: The world’s leading business commerce network SAP Ariba cloud solutions simplify source-to-settle process Suppliers | Sell to settle Ariba Network Procurement Supply chain Financial supply chain Supplier management Strategic sourcing Buyers | Source to settle Selling Fulfillment Openplatform Customervalueservices
  • 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public SAP Ariba Priorities 3 Data-driven smarter decisions 1 Persona-based user experience 2 Deeper supplier engagement
  • 6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public SAP Ariba Product Vision
  • 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Data Driven Smarter Decisions Innovations:  Smart item enrichment with deduping  Large scale optimization with “what-if” analysis  Intelligent authoring with automated clause creation  Neural network–driven classifier  Smart suppliers suggestions Driving adoption through native intelligence and enhanced user experience
  • 8. Demo – Enhanced Authoring, New Contracts User Experience - NDA & Complex Services
  • 9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Faster time to value with improved technology, content and processes  Next-gen classifier ~30% reduction  Next-gen supplier match ~20% reduction  Content and process changes ~30% reduction  Continuous expansion of models and rules  Improved quality assurance processes Spend analysis – neural network–driven classifier Faster enrichment turnaround 30 21 15 5 10 7 5 2 TODAY PHASE 1 - NEXTGEN CLASSIFIER PHASE 2 - NEXTGEN SUPPLIER PHASE 3 - CONTENT & PROCESS CHANGES Average enrichment turnaround (machine + human days) Initial Refresh Scope Range Avg. Initial Avg. Refresh Invoices 5M-150M 10M 5M Suppliers 10K-250K 50K 40K Spend 3B-100B 5B 4B
  • 10. Demo – Spend Classifier
  • 11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Persona-based user experience Innovations:  Operational buyer experience – guided buying  Shared services experience – shared services  Strategic buyer experience – strategic sourcing  Supplier experience Awesome sourcing and contracting experience for both “buyers” and “suppliers”
  • 14. 14CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 is the current state of planning and may be changed by SAP at any time. Planned Q4/2017 User Experience • Simplified operational sourcing • Cognitive contracts management • Search for content in contract line items Integration • SAP Ariba Contracts integration with S/4 HANA • Integrate selected Items to external systems • Scheduling Agreements • Desktop file sync. API – Google Docs, Drive, Microsoft 360 Smart Sourcing & Contracts • Advanced cost optimization/What-if analysis support • Machine Learning and Artificial Intelligence based sourcing event creation • Automated price negotiations • Legal Clause generation from Sourcing Awards • Enforce qualification status on contracts • Intelligent authoring with automated clause creation • Next generation classification engine Expanded Category Coverage • Commodity Index based pricing • Japanese auctions • Complex service line item hierarchy • Volume based pricing User Experience • New smart strategic sourcing app • Enhanced smart contracts • Enhanced smart sourcing • Mobile support – event management, contracts • Enhanced Spend Visibility Integration • Automated spend data integration • Digital signature integration API – Korea, China Smart Sourcing & Contracts • Collaboration support for sharing engineering drawings and large attachments • Contract negotiation/in event multi round bidding Expanded Category Coverage • Traffic light auctions • Service item master integration • NLP based compliance term extraction Platforms • ActiveX removal for reports export • Globalization – Croatian, Bulgaria, Slovakian Future DirectionPlanned Q3/2017 User Experience • Office 2016 support (under Office 365 subscription) • Improved participant Invite Process • Enhanced contracts authoring • Drag and Drop document upload Integration • Material Master integration • Multi-ERP support • Sourcing integration to S/4 HANA Smart Sourcing & Contracts • Award approval at the line item level • Lookup table formulas • Contract request creation from sourcing award • Additional Custom Category Taxonomies (SV) Expanded Category Coverage • SAP Simple Service item integration Supplier Management • Preferred supplier list integration to RFX • Supplier qualification grid support for sourcing • Supplier qualification rules for sourcing User Experience • Ad-hoc team member creation from UI • Mobile support for approval tasks • Drag and Drop for attachments • Multi currency enhancements • My Sourcing Request tile Integration • Award to PIR integration • Contracts to PIR integration • Improved Contract Line Item web services Smart Sourcing & Contracts • Document link sharing with suppliers • Create sourcing request from Spend Visibility • Smart approvals for line items • Enhanced amendments • Improved Enrichment Change Requests (dynamic) SAP Ariba Sourcing, Contracts and Spend Analysis SAP Ariba Procurement Application Suite Product Roadmap Overview Recent Innovations Q2’ 2017 Release
  • 15. 15CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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 Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
  • 16. Thank you. Aarathi Vidyasagar Vice President, Head Strategic Procurement, SAP Ariba P&I aarathi.vidyasagar@sap.com Debashis Banerjee Director, Contracts Management, SAP Ariba P&I debashis.Banerjee@sap.com Dave Herman Chief Data Scientist, Strategic Procurement SAP Ariba P&I dave.herman@sap.com