Uploaded bySAP Ariba
Ariba Commerce Summit 2012: The Networked Economy
The document discusses the importance of embracing the networked economy for organizations to enhance productivity and efficiency by collaborating with buyers, suppliers, and partners. It highlights benefits such as increased market leadership, reduced costs, and improved sales, while providing examples of successful initiatives. Additionally, it emphasizes the need for companies to assess their readiness and gain executive support to successfully embark on this transformation.
More Related Content
![Master Source-to-Pay with Cloud and Business Networks [Stockholm]](https://cdn.slidesharecdn.com/ss_thumbnails/mastersource-to-paywithcloudandbusinessnetworks-151117134630-lva1-app6891-thumbnail.jpg?width=640&height=640&fit=bounds)
Similar to Ariba Commerce Summit 2012: The Networked Economy
Ariba Commerce Summit 2012: The Networked Economy
- 1. Positioning Yourself toWin in The Networked Economy October 2012 The Ariba Commerce Summit Event Series is Proudly Sponsored by:
- 2. Agenda • Challenges that organizations are facing today • Why is it important to embrace the Networked Economy Business Benefits Examples of companies benefiting from it today • How to plan your Networked Economy Initiative • Why partner with Ariba? • Q&A 2 © 2012 Ariba, Inc. All rights reserved.
- 3. Organizations have focusedsince the 1900s on increasing Free Cash Flows 20-25% year on year… • Every company has Increase Working initiatives to Capital Turns Reduce inventories Increase Revenue Reduce DSOs – New customers Increase credit period with – New geographies suppliers – New products – New channels Optimize Capital Reduce Costs Expenditure – Direct – Indirect – Services 3 © 2012 Ariba, Inc. All rights reserved.
- 4. We believe organizationwill need to look outside their four walls for the next wave of productivity - removing inefficiencies in the extended value chain Community Technology Capabilities 1980’s 1990’s-2000’s Today Desktop OS Backoffice OS Inter-Enterprise OS “Employee Productivity” “Enterprise Productivity” “Value Chain Productivity” 4 © 2012 Ariba, Inc. All rights reserved.
- 5. We are alreadyseeing this productivity improvement in our personal lives Shopping Finance Communication & Collaboration Research 5 © 2012 Ariba, Inc. All rights reserved.
- 6. Analysts believe thatBusiness Networks will dramatically enhance productivity and value of organizations -- Buyers -- -- Suppliers -- -- Partners -- “Increase worker “Contribute up to Companies using productivity by $1.3 trillion in business networks are 20-25%” value to reducing requisition to businesses” order cost by 33%* “The social economy: Unlocking value and productivity through social technologies,” McKinsey Global Institute, July 2012 * Supplier Networks v2.0: A Look at Commerce in the Cloud, “Aberdeen Group, April 2012 6 © 2012 Ariba, Inc. All rights reserved.
- 7. Organizations embracing business networksare 50% more likely to be market leaders A Networked Enterprise – one that uses collaborative technology to connect internal employee efforts to customers, suppliers, and partners. Customers Suppliers Partners The Networked Enterprise is 50% more likely to: Be a Market Leader Gain Market Share Achieve Higher Margins Increase sales Source: “The Rise of the Networked Enterprise”, December 2010, McKinsey; Jacques Bughin and Michael Chui 7 © 2012 Ariba, Inc. All rights reserved.
- 8. Benefits for buyers Ariba Discovery SOP for every Cut costs in A/P by 75% 8 week go live for APC and PO sourcing project Processing 90% of global spend Automation to extend PeopleSoft 16% average savings through Ariba Network 400+ suppliers enabled Added P2P, Invoice, Discount Mgmt. Enabled VAT legal compliance 300+ catalogs enabled 700 suppliers enabled – with 92% Improved on time payment to >95% Phase 2: Invoice Automation actively transacting…within 1st year Simplified and streamlined non-PO $4.5 billion enabled over the Capturing discounts on 15% of spend invoice processing – achieved 96% Ariba Network and >17% of suppliers touchless invoicing Avg. discount APR of 37.5% (tops Captured pre-negotiated discounts BIC ~23%) $1 million savings run rate…and growing 8 © 2012 Ariba, Inc. All rights reserved.
- 9. Benefits for Sellers Faster Payment Lower Customer Service Costs eInvoicing eliminated rekeying, resulting in Reduced manual intervention and errors, 83% lower error rate which reduced DSO lowering processing costs from $8 to $2 by 75% per purchase Reduced average DSO 5.6 days when Reduced Purchase order process from using the Ariba Supplier Network several weeks to a few hours Increase Sales Higher Customer Satisfaction Gained 65% of its new clients directly as a Gained e-business compliance resullt of its Ariba connection. 80% of by joining Ariba as a premium supplier business now comes thru Ariba Network Grew 300% in an account in 3 years while 99% customer retention rates – (10 to saving the customer hundreds of 15% better than industry average, per thousands in spend – a true win-win Forrester) and 30% growth in accounts 9 © 2012 Ariba, Inc. All rights reserved.
- 10. I am sureyou have initiatives to increase free cash flows • Increase Revenue • Reduce Costs • Increase Working Capital Turns • Optimize Capital Expenditure 10 © 2012 Ariba, Inc. All rights reserved.
- 11. You could benefitfrom the networked economy too Pick Your Starting Point Assess Readiness Gain Executive Sponsorship Begin the Journey Focus on Operational Excellence 11 © 2012 Ariba, Inc. All rights reserved.
- 12. Why partner withAriba? 12 © 2012 Ariba, Inc. All rights reserved.
- 13. Q& A For more information contact your Ariba salesperson Suggested reading: “The social economy: Unlocking value and productivity through social technologies,” McKinsey Global Institute, July 2012 “Supplier Networks v2.0: A Look at Commerce in the Cloud,” Aberdeen Group, April 2012 “Collaborate to Win: Creating Competitive Advantage in a Networked Economy,” CFO Research, 2012 13 © 2012 Ariba, Inc. All rights reserved.