Strategic CIOs: What Comes After the Cloud

Webinar hosted by SAPinsider, July 28, 2015
Strategic CIOs: What Comes After the Cloud
How to Innovate Processes with Speed and Agility
Through the Ariba Network
Public

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Agenda
Introduction
Ceylan Thomson, Director Audience Marketing, Business Networks,
Ariba, an SAP Company
Speakers
Tamara Braun, Chief Procurement Officer and Senior Vice President,
Global Procurement Organization, SAP
Rich Lazzara, Director IT, CA Technologies
Q&A

The Changing Role of the CIO
Ceylan Thomson, Director Audience Marketing, Ariba, an SAP Company

Digitalization – a big challenge for CIOs today
More complexity due to increasing digitalization and connectivity
75 billion
Connected devices
by 2020
Morgan Stanley: 75 Billion Devices Will Be Connected
To The Internet Of Things By 2020
2.5 billion
Connected people on
social networks by 2020
eMarketer Report: "Worldwide Social Network Users: 2013
Forecast and Comparative Estimates
212 billion
Things connected
by 2020
Internet of Things (IoT) 2013 to 2020 Market Analysis: Billions of
Things, Trillions of Dollars, IDC, 2013
90%
Of the world data has been
generated in the last 2 years
ScienceDaily, ScienceDaily, 22 May 2013
8 trillion dollars
Exchanged through
e-commerce annually
Bullish on digital: McKinsey Global Survey results, August, 2013
9 billion
Mobile users in the world
by 2020
Statista, 2014
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4

The role of the CIO is completely changing
Cloud revolution is presenting the IT function with new challenges
75%
New enterprise
IT spend
Will be cloud-based or hybrid
by 2016
Source: IDC 2013 Report:
“New Enterprise IT Spend”
60%
Cloud
spending
Will be for cloud
apps (SaaS)
“New Enterprise IT Growth”
$200B+
Greater cloud
market growth by 2018
including cloud services and
the technology to enable
cloud services
Source: IDC Predictions 2015
80%
New IT
purchases
Will be made by
line of business
“Line of Business IT Purchases”

CIOs need to drive business innovation
Collaboration plays a key role in creating value
“By 2016, 80% of CIOs will deliver a new
architectural framework that enables innovation
and improved business decision making”
IDC FutureScape: Worldwide CIO Agenda 2015 Predictions”
Not using the cloud for
strategic ends
Why companies are investing in the cloud:
54%
48%
39%
10%
To enter new markets
37%
Source: 2014 Oxford Economics Research Program sponsored by SAP
“93% of organizations say
they are creating value
through collaboration”
The Economist Intelligence Unit: ‘No
business is an Island, 2015’
To collaborate with
partners, suppliers,
and/or customers
For custom
development of new
applications
To develop new
products and services
Need for innovation Value of
collaboration

CIOs need to simplify connectivity and collaboration
Devise new ways to secure critical transactions and communications
Public Cloud
e.g.: HR, SRM
Private
Managed Cloud
e.g.: CRM
On-Premise
e.g.: ERP
Your
Company
Your Trading
Partners
Business Processes
CIO Pain Points Security
Vulnerabilities
Costly Trading
Partner Integration
Limited Visibility Into
Collaborative Systems & Data
Corporate
Portals
Fax
Servers
Direct
Connections
Email
Servers
EDI
Phone
Mail
ORDERS
PURCHASES
@
FORECASTS
PAYMENTS
TRAVEL
REQUESTS
TIME SHEETS
PROPOSALS
SERVICE
ORDERS
COMPLIANCE
SURVEYS
INVENTORY
LOGISTICS
LEADS
CONTRACTS

Business networks are the key to integration
Simplify connectivity, enable collaboration, and drive business agility
TRADING
PARTNER COMMUNITY
Business
Networks
YOUR COMPANY
40% growth in the adoption of
business networks within the next
two years.
Technology Adoption Report on Business
Networks,” Ardent Partners, 2014.
Networked enterprises are 50% more likely than their
peers to have increased sales, higher profit margins,
gain market share, and be a market leader.
IT as revenue generator: McKinsey Global Survey results,” McKinsey, 2013.

Simplifying Resource
Management
Tamara Braun, Chief Procurement Officer and Senior Vice President,
Global Procurement Organization, SAP

Ariba Network – the world’s business commerce network
Enabling connectivity, collaboration, and business agility
349 M
Catalog items
102 M
Transactions
(PO + invoices)
1.38 M
Contracts
8.8 M
Users
>1.9 M
Companies
$874 B
In annual
commerce

Connect once – standardized integration framework
Eliminate the burdens of business-to-business connectivity
Any back-end
system
Any level of
sophistication
CSV
EDI
cXM
L
@
Open
integration
Connect
once
Partner
connectivity
Ariba
Network
Out-of-box
solution
@

SAP runs Ariba solutions
A powerful combination
Enterprise
applications#1 Business network and
source-to-pay management#1
The largest business network in the world supports
SAP procurement processes in all major spend categories.

Source-to-pay at SAP
Key facts and spend distribution by region and category (2014 data)
ASIA PACIFIC
12%
EMEA
57%
AMERICAS
31%
26%
14%
22%22%
16%
Services & HR
IT/Telecommunication
Facility
Marketing
Mobility
74,000+
Global SAP employees
€17.6 billion
Revenue
€3.8 billion
Spend
475
FTE in P2P
22,000
Global suppliers
750,000
Annual invoices
>500,000
PO line Items
>970,000
Trip entries

SAP’s procurement organization utilizes cloud solutions
Cover end-to-end source-to-pay process through each spend category
Goods
Travel and expenses
Services
Source and contract Procure and buy Invoice and pay
 Spend visibility
 Strategic sourcing
 Supplier discovery
 Reverse auctions
 Contract management
 Supplier management
 Performance tracking
 Forecasting
 Electronic requisitioning
 Supplier self-service catalogs
 Spot buy (open marketplace)
 Contingent workforce
 Approval workflows
 POs and goods receipts
 Travel authorizations and
bookings
 Intelligent invoicing
 Invoice exceptions
management
 Expense reporting
 Electronic B2B
payment
 Payment visibility
 Discount management
Business network

Procurement goes cloud
SAP’s end-to-end source-to-pay process and systems
Spend
visibility
Supplier
management
E-sourcing /
e-auctioning
Fieldglass – service procurement
Contract
management
Ariba purchase order and invoice automation
for goods and services
Discount pro
Ariba catalog Spot buy ebay
Concur - travel sourcing and booking (portal) Travel reimbursement
SAP SRM and SAP ERP on SAP
HANA
Vendor invoice management
Accounts payable and T&EStrategic and tactical procurement Operational procurement

Focus on innovating source-to-pay processes
Opportunities for more efficiency before implementing Ariba
Objectives
 Cover all units of SAP centrally
with prioritized geographies
 Leverage purchasing power and
driving sustainable savings
 Deliver best-in-class procurement
processes and highest possible
service levels to internal customers
 Mitigate risk to SAP
 Be a fair partner to our suppliers
Solutions deployed from Ariba, an
SAP company
 Ariba Supplier Information and
Performance Management
 Ariba Collaborative Sourcing
 Ariba Procurement Content
 Ariba Collaborative Commerce

34 % of our
invoices from
network
suppliers
49 %
invoices of
our top 100
matched
45 %
of our top 100
suppliers
matched
The “supplier match” for SAP
A successful start to the implementation
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 17

Project success factors
Close collaboration and alignment with all stakeholders
Implementation
approach
 Implementation of “vanilla”
standard On-demand Ariba
solutions
 Use of “scrum” project
methodology
 Use of SAP Rapid
Deployment solutions
Key success
factors
 Simplification and
standardization
 Focus on enablement of
suppliers already registered
on the network first
 Highly motivated teams
taking responsibility
Implementation
challenges
 Coordination of involved
business groups (IT /
business owners / Ariba
personnel)
 Harmonization of four work
streams and alignment with
supplier enablement efforts
Implemented by the team in just three months

SAP runs Ariba: global procurement transformation
Revolutionize the source-to-pay process
Benefits
 Reduce errors and effort required for
more efficient sourcing, purchasing, and
invoice management
 Drive savings through automated data
extraction, process automation, and
smart financing tools
 Deliver best-in-class procurement
processes
 Increase transparency and compliance
3 months implementation time
>4,000 suppliers on the Ariba Network
140,000 invoices transmitted
50% increase in automation
20% productivity gain
>1 billion purchase order value sourced
Achievements: facts and figures

Bring Innovation to your Organization
by Integrating Ariba
Rich Lazzara,
Director IT, CA Technologies, Inc.
@rplazz
July 28, 2015

21 © 2014 CA. ALL RIGHTS RESERVED.
Topics
 Background
 Objectives
 Why Ariba?
 Key Decisions Along the Ariba Journey
 Benefits of Ariba
 Lessons Learned

Background
 CA Technologies
– $4.5B software company headquartered in New York
– ~12,000 employees
– SAP and Ariba are a strategic part of our IT ecosystem
– SAP ECC / SRM Shop
– Running “hybrid” SRM / Ariba Solution
 Team Responsibilities
– All Procurement functions plus Asset Management and Travel
– Mobility and UX

Objectives
 Drive Innovation at CA Technologies
– Think like a “Chief Integration Officer”
– Gain the respect of the business by delivering innovation
 Improve the Procure-To-Pay user experience
– Provide a simple user interface for requisitioning goods and services
– Untether the work force for frequently requested tasks
 Build a global footprint and scale to support worldwide operations
– Consistent, integrated solution builds adoption and reduces IT burden
– Automation shifts focus to exception processing - deliver more innovation

Why Ariba?
 More “Consumer Grade” User Interface
– Shopping and Catalog Management in the Cloud
– Offline email approval of Invoices and PO’s now, mobile apps coming out
 World-class procurement, contracts, spend analytics and sourcing
solutions
– Simplification of interactions with Suppliers
– Easily switch suppliers if desired
 Access to a large population of Suppliers – the “Network”
– Enable business to focus on strategy vs. Supplier Enablement
– Opens up new sourcing opportunities

Key Decision Points Along the CA / Ariba Journey
Calendar 2014
SAP APAC
DecOctSepAugJulJunAprMarFebJan May Nov
Ariba Invoice Pro for North America
• Goal: Improve the Shopping UX
• AribaLive! May 2013 in DC
• Full PTP Business Case Created
• Scope Adjusted Down to APC/PO
• Project Approved
• JPM gives notice September 2013
• Project started in October 2013
• APC/PO go-live March 10, 2014
APC/PO in NA
• Project started late January 2014
• Project go-live July 21, 2014
• Included APC/PO as part of larger
SAP Rollout in APAC
• APC/PO Started January 2014
• Project go-live August 18, 2014
Ariba APC/PO for EMEA
Ariba Upstream
• Project started October 2014
• Project go-live March 2015
• CPO wanted to replace existing
3rd party tools
• ”Knock out of the box” approach
• Idea to contract in under 3 months
• Project started December 2014
• Project go-live June 17, 2015

Ariba Procurement Content / PO Automation
Soft Benefits
 Consumer-grade shopping experience
 Cross-catalog search
 Multiple suppliers in the same shopping cart
 Product comparisons
 Easily switch suppliers
 Reduced supplier-related catalog issues

Hard Benefits
 Reduced shopping cart to PO cycle time from 6 to 2.5 days
 Reduced turn-around time to enable a catalog from 6 weeks to under 2
weeks
 Gain benefit of compliance with company pre-negotiated products and
pricing
 Eliminate point-to-point handling of transmission of POs
 Single cXML format interface for all purchase orders
 Goal for EMEA: Increase order volume through catalogs from 34% to
70%
Ariba Procurement Content/PO Automation

Ariba Invoice Professional
Key Benefits
 No loss of functionality
 Foundation for a global procure-to-pay process
 Offline invoice approval
 Integrated procure-to-pay process
 High level of automation
 Lower error rate
 Achieved 92% electronic invoice submission rate in just six months
– Compared to 86% JPM XIGN after 3+ years

Ariba Upstream Solutions
Key Benefits
 Integrated data across sourcing, contracting, spend and supplier
 Increased spend visibility and analytics
 Cost neutral to replace existing solutions with Ariba upstream modules
 Reduced cycle time for contracting
 Document repository to support compliance with FATCA
– Suppliers now provide W8/W9 forms as part of the Registration Process
 Allowed for process improvements globally
– Introduction of the Supplier Risk Program (SRP) on a global basis
– A new Self-Service Supplier Registration Portal globally
– “Strategic” Sourcing
Sourcing, Contracts, Spend Visibility
Supplier Information & Performance Mgmt.

Lessons Learned
 Keep shoppers within the APC Cloud
– Punching out from APC to supplier site adds steps and reduces functionality
 Use ACS – Ariba Consulting Services
– Ensure Lead and product expert are the right fit for your organization and project
 Do complete PTP implementation if possible
– Staggered approach of APC/PO then Invoice-Pro caused rework
 Start with Upstream before doing Downstream modules if possible
– Doing Downstream first led to technical complexity for onboarding suppliers
 Deployment Descriptions are good, but…
– If doing multiple modules at once or multiple regions, add time to the plan
 Strong partnerships are key – With SAP and your business partner
– Worked with Chief Customer Office to escalate and expedite when needed
– Must have close relationship with business – co-locate if needed

Q&A
Questions?

© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Ceylan Thomson
Director, Audience Marketing,
Business Networks
Ariba, an SAP Company
ceylan.thomson@sap.com
Tamara Braun
Chief Procurement Officer and
Senior Vice President, Global
Procurement Organization, SAP
tamara.braun@sap.com
Rich Lazzara
Director IT
CA Technologies
richard.lazzara@ca.com
@rplazz

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