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Chapter 53
ARIBA:
A Successful Story in E-Commerce
Zhongxian Wang
Montclair State University, USA
Ruiliang Yan
Indiana University Northwest, USA
James Yao
Montclair State University, USA
INTRODUCTION
Ariba, Inc. was born during the dot-com bubble, a
star amid countless other e-commerce companies.
In the universe of corporations, many bright me-
teors, like Commerce One, didn’t shine too long.
However, the interesting evolution of Ariba, from
a pioneer to a sufferer to a survivor, has taught us
much about survival in the competitive business to
business (B2B) software industry. Ariba’s software
would help many companies save money on their
procurements, and control expenses besides payroll.
Ariba promised to help companies improve their
bottom line. Many of Ariba’s clients today hold
positions on the coveted Fortune 100 list. Going
public in 1999, Ariba’s stock price at one time
reached $259 per share. At the time, Ariba was
still getting their feet wet; they had not yet made a
profit. The next year their stock reached $168.75,
but a negative turn in the economy lay ahead. Many
companies began to cut back on investments and in
just 9 months Ariba lost 95% of their value. This
would be disastrous to any company, and would be
the downfall of most, but Ariba made some critical
key decisions that helped continue its leadership in
the B2B world. They are one of the few companies
to not only survive the burst of the dot-com bubble,
and to this day to remain a successful company.
ABSTRACT
Ariba services major corporations, and provides services to
smaller companies as well. In this chapter,
the authors will examine how Ariba, a small startup company
during the Internet boom of the 90’s was
able to overcome hardships, survive market and industry
downturns, and continue to thrive and survive
in such a competitive industry. The authors will also review
major events and innovations that helped
the company to grow and succeed rather than to fail.
DOI: 10.4018/978-1-61520-611-7.ch053
542
ARIBA
BACKGROUND
E-commerce was in many ways revolutionized by
Ariba Inc, a leading independent company in the
sphere of B2B commerce network providers. The
company has been evolving constantly, in coop-
eration with leading companies in the industry, in
order to deliver E-commerce platform products
to its customers/clients. Its value chain model has
been able to develop business relationships further
than anticipated, the results of which made it a
top 40 Fortune 500 company.
Ariba has overcome many obstacles, including
lawsuits, changing customer requirements, and
organizational restructuring, however still man-
aged to remain a leader in its specific niche area.
They have done so by delivering solutions and
services that meet customers’ expectations, and
have been able to cope with intense competition
by keeping up with today’s technologies as well
as developing solutions for tomorrow. Ariba was
founded in Sunnyvale CA, in September 1996, by
seven men, the most influential individual being
Steven Krach. Krach’s early career accomplish-
ments included being one of the youngest vice
presidents General Motors (Ariba, 2008). Having
struggled with the procurement process in his time
there; it became a precursor and impetus for the
birth of Ariba. Krach and his associates brain-
stormed and came up with the idea of automating
the purchasing of common supplies and services.
This is a seemingly simple idea, but one with a
huge demand and potential.
After three months of intensive research, which
included meeting with 60 Fortune 500 companies,
Ariba had a prototype developed and ready for
their initial marketing campaign. Having signed
software licensing deals with Cisco Systems, Ad-
vanced Micro Devices and Octel Communications,
prior to software completion, the pieces were put
into place for the launch of their product. Among
the early competitors to Ariba were Commerce
One, Oracle, I2, and PeopleSoft, Inc.
The objective was to become a powerhouse
company with the means and resources to provide
procurement software and network consulting
services, enabling corporations to manage their
spending more effectively. This included essen-
tially all non payroll expenses associated with
running a business. Ariba offered their clients
real-time data by providing information over
the Internet. These applications were used in
conjunction with the Ariba Supplier Network to
purchase goods and services. Ariba is customer
driven, and offered full support, including tech-
nical support, implementation, training, and
consulting. E-payment and service agreements
were made with American Express and Bank of
America. All of these were considered large and
bold undertakings for a young startup company at
that time. In June of 1999, Ariba went public at a
modest $23 per share, however traded as high as
$259 per share at times later that year (Schneider,
C. M Bruton, 2008; Haksoz and Seshadri, 2007).
A stunning success for a three year old company
which had yet to turn a profit, it benefited from
being a “first mover” in the business. However,
other Internet start-up companies were beginning
to offer similar software and services. Over time,
smaller companies began emerging with websites
that provided a place to manage procurement, some
with lower costs and fees. Facing challenges in
the market, Ariba began to be faced with difficult
challenges and had to make major decisions in
order to stay in business.
Ariba finally saw a profit of $10 million in
December of 2000, which also included the
completion of three acquisitions. Soon after, in
2001, the economy began to weaken in a downward
spiral and Ariba’s stock plummeted 95%, making
a business overhaul necessary. Ariba decided to
take drastic cost-cutting measures, cutting about
a third of their staff. Because of their specialized
and niche product line, their business was able to
continue and survive the setbacks faced by other
Internet software companies. Krach resigned as
CEO in 2001, but stayed on chairman and ap-
pointed a CEO that would later cost the company
543
ARIBA
much money and negative publicity. The bursting
of the dot-com “bubble” marked the beginning of
a relatively mild yet rather lengthy early 2000s
recession (Marshall, 2001; Sahay, 2007). In time,
Ariba, along with the rest of the B2B business
community ran into two big problems. First, the
brick-and-mortar Old Economy was stable and
could adjust more readily to economic downturns.
Secondly, companies were interested in saving
transaction fees by using alternate means of such
as word processors instead of using costly B2B
networks. However, they were less interested in
cutting their savings in terms of transaction fees
(Cerquides, López-Sánchez, Reyes-Moro, &
Rodríguez-Aguilar, 2007).
Still, Ariba persisted and would once again
regain its position as a leader in the B2B procure-
ment industry. The firm made adjustments where
necessary to still deliver the goods to their clients,
without sacrificing their own bottom line. Accord-
ing to the current CEO, Bob Calderoni, Ariba is
well positioned in the spend management market
and will continue to grow in the current tough
global economy.
The following sections explore the internal
(adaptations to a competitive environment, acquire
to advance, consulting adds value, emphasis on
the customer) and external (severe competition,
high-priced software, regulator’s investigation,
unhappy customers) factors that affect the com-
pany’s struggles and challenges.
INTERNAL FACTORS
Adaptations to a Competitive
Environment
At the height of the e-procurement frenzy, two
companies dominated the B2B space: Com-
merce One and Ariba. With the near-collapse
of the original B2B procurement model, both
companies sought new niches. Commerce One
moved towards web services in an attempt to
seek viable markets. Ariba, meanwhile, empha-
sized enterprise spending management (Kinsey,
2004). Ariba strongly believed that a software
firm’s role is to be a software tool provider. As
the B2B world divided into industry sponsored
exchanges and independent marketplaces, Ariba
avoided involvement in managing its customers’
exchanges. Conversely, Commerce One believed
that software makers had to do more than simply
provide software tools. They had formed strategic
partnerships with its customers and helped man-
age their online marketplaces (Anderson, Opie,
& Watton, 2003; Bannan, 2008). It also directed
its customers towards an international trading net-
work in order to build critical mass and facilitate
e-commerce between them.
As a new CEO, Calderoni monitored the ex-
ternal environment, where a fundamental shift in
the marketplace existed, and responded promptly
to adjust the company’s product offering. He
believed that B2B e-business had a direct and
indirect impact on all functional areas, and those
linkages with a company’s supply chain system
was critical. In effect, Ariba was changing its
focus from e-procurement, to offering products
that can increase customer satisfaction by solving
a variety of “spend-related” problems faced by
corporations (Tadeschi, 2008).
With the concept of division of labor as a
microeconomic view, Calderoni added a purchas-
ing system, general ledger, and field system into
Ariba’s line of products. The added features in
the company’s products were favored by Ariba’s
existing customers in the auto, chemical, and
manufacturing industries due to the ease of sys-
tem comparability. The need to transfer data from
legacy systems enabled these customers to remove
outdated and inaccurate data from their systems
and which also helped to improve relationships
with their customers.
544
ARIBA
Acquire to Advance
According to Krach, a major component of Ariba’s
business model is partnering followed by organic
growth and acquisition, and so the company con-
tinues to follow this basic approach to help ensure
the firm’s success. Ariba acquired companies that
had the technology and resources they needed to
survive, instead of taking the time to develop them
in-house. By acquiring Agile Software, a leading
provider of Internet-based B2B communication
technology, Ariba was able to add collaboration
capability to its services, allowing its customers
to communicate and coordinate product supply,
design, and other specialized electronic-commerce
functions. Mr. Calderoni implemented an ag-
gressive acquisition strategy that significantly
expanded Ariba’s technology offerings and ser-
vice capabilities, and positioned the company as
a recognized leader in its market. One goal was
to secure top Fortune 10 companies and Global
500 companies as customers.
In 2004, Ariba acquired Alliente Inc. and
FreeMarkets Inc. to link their spend management
software with its existing capacities as a B2B
procurement hub. The acquisition of FreeMarkets
increased Ariba’s offerings by providing global
supply management software and services. This
acquisition also positioned Ariba as a serious con-
tender in the automotive industry, adding General
Motors Corp., Daimler-Chrysler AG and Ford
Motor Co. to their customer base. By acquiring
Alliente, Ariba expanded its spend management
and procurement capabilities to include a procure-
ment out-sourcing provider (Hosford, 2007).
In December 2007, Ariba announced that it
had completed the acquisition of Procuri, Inc. a
privately held provider of on-demand supply man-
agement solutions, rounding out Ariba’s offerings
that help companies automate the procurement
process. According to Ariba CEO Bob Calderoni,
more than 70% of Procuri’s 300 customers have
under $5 billion in revenues. As a result, this
deal also gave Ariba greater access to midmarket
customers (Anonymous, 2007).
Consulting Adds Value
Calderoni believed that Ariba has survived by
expanding beyond software that focused mainly
on transactions, to encompassing additional facets
of the buying process. Calderoni hired hundreds
of consultants to advise companies on how to
buy goods and services cheaply, using Ariba’s
software. Although consulting is less profitable
than selling software, Calderoni predicted he can
successfully combine the two as an integrated
set of offerings. While consultants coach Ariba’s
clients on how to use the software effectively,
Ariba’s clients can also reply on Internet-based
purchasing systems to help them buy direct materi-
als that are core to their company’s manufacturing
processes.
In order to extend Ariba’s consulting services,
which in 2004 accounted for nearly half of the
company’s $323 million in sales, Ariba made
consultants available via email and phone for a
fraction of the price that is charged to the larger
companies who require dedicated consultants
through in site visits.
Emphasis on the Customer
In 2001, investors were looking for a change in
leadership at Ariba after the firm missed revenue
and earnings projections by a wide margin. Ariba
moved Keith Krach out of the CEO position, filling
the post with the company’s President and COO,
Larry Mueller. Mueller entered the position with a
new strategy: to halt the company’s current plans
to enter new markets, and instead opting to add
new features, including electronic payment and
invoicing, to its existing e-procurement and auc-
tion applications. Mueller heightened the focus
on improving e-procurement applications by mak-
ing heavy investments in existing e-procurement
545
ARIBA
and sourcing platforms; and building technology
around the key interactions that enterprises have
with trading partners.
Mueller remained focused on bolstering
Ariba’s role as a traditional B2B transaction
platform. Ariba announced plans to invest heavily
in its Ariba Commerce Services Network and its
network-centric applications, including Network
Connect, which allowed non-Ariba customers to
come into the Ariba services network and conduct
business or procure services. The company also
organized its development, sales, and marketing
staff to focus on specific industries. Accord-
ing to Mueller, “Customer ROI is the focus.”
A focus on international expansion has boosted
revenue from outside the US from 10% in the
third quarter 2000 to 25% in the same period for
2001 (Purdum, 2007). Ariba is trying to rebuild
its fortunes as public marketplaces that use its
technology are struggling - some economists feel
this is due to the fact the industry just isn’t ready
for e-commerce.
Since joining the company in 2000, new (and
current) chairman and CEO of Ariba, Mr. Calde-
roni has successfully transformed Ariba from a
narrowly focused e-procurement vendor to a com-
prehensive spend management solutions provider
that companies of all sizes rely on to transform
the way they do business globally. Under Mr.
Calderoni’s leadership, Ariba has led the way in
developing and delivering innovative solutions
that combine technology, commodity expertise and
services to help companies streamline the procure-
ment process and drive bottom-line results.
EXTERNAL FACTORS
Severe Competition
Simply being a dot-com business survivor, how-
ever, would not ensure its continued existence
and profitability, and Ariba was at risk of losing
business to the likes of other competitors such
as SAP and Oracle. SAP, a German enterprise
resource planning software maker, joined this
market and signed on with Hewlett-Packard for a
product called mySAP.com e-business solutions.
In addition, it built a marketplace for chemical
and pharmaceutical firms by educating them
on mySAP.com, and with the result of install-
ing a large SAP user base among Fortune 500
companies.
Nevertheless, Oracle had already anticipated
a shift in the market and made plans to capital-
ize on it. Right now, the procurement sector is
dominated by leading software companies Ariba
and Commerce One. But as the slowdown in the
U.S economy continues, Oracle is hoping the
opportunity for companies like Ariba will start
to shrink as users look to more established ones,
like Oracle, for an all around e-commerce package
(Arora, Greenwald, Kannan, Karthik, & Krishnan,
2007). Ariba had in fact provided Oracle with an
opportunity to gain market share when it cut a third
of its workforce and announced reduced earnings
during economic recent downturns.
Ariba recognized that to remain competitive,
it had to address the problem of hidden costs as-
sociated with the products they sell, in addition to
the price they charge for the software itself within
the supply chain, especially when the product was
in the later stage of its cycle. When a company
does not paying attention to the hidden costs of
new software implementation, it can creep up and
well-intentioned efforts can be result in the form
of financial penalties (Angeles & Nath, 2007;
Brown, 2008).
By August 2008, the market for supply chain
management (SCM) software market has grown.
Worldwide spending on SCM solutions reached $6
billion in 2007, which was up 17.6% from 2006.
SCM Technologies are well-positioned to address
the economic realities facing worldwide markets
where costs are skyrocketing while competition
and customer demands are intensifying (Eschinger,
2008). A number of the SCM solution vendors are
merging, and expanding their capabilities within
546
ARIBA
the realm of supply chain technologies. In com-
parison, Ariba’s 2007 revenue was $160.3 million,
which significantly trailed behind Oracle and SAP,
who reported $955.2 million and $1,334.4 million
in revenue, respectively, showing that the threat
of these products cutting into Ariba’s bottom line
is a real one (Orme & Etzkorn, 2007).
High-Priced Software
Without a doubt, e-procurement is rising substan-
tially among the nation’s largest 500 companies.
Well-financed corporations are willing to invest in
Internet software and technology that can reduce
the inefficiency associated with the purchasing
and buying processes. The use of this software
can help companies to track spending and make
sure they purchase products in accordance with
contracts they have negotiated with suppliers. In
fact, businesses that spend billions each year on
supplies can often save tens of millions in costs
by implementing such technology. However, it’s
only the large firms that can devote the time and
money to installing such systems, which frequently
required that suppliers link to such systems as
well. Since the software is generally expensive
and can be complicated to install on the customer’s
system, for small- and medium-sized businesses
facing an uncertain economy, investments of this
magnitude are can be difficult to justify.
Ariba took advantage of this situation, and in
2005 announced a strategy to sell its software and
services to smaller companies on an on-demand
basis, so they can buy supplies more efficiently
online, as well. Ariba reshaped its software system
so its customers can plug into Ariba’s software
through the Internet instead of installing it on their
own systems. One major benefit of this approach,
Mr. Calderoni said, is that Ariba can sell software
to procurement managers and others in charge
of spending, without involving the company’s
information technology staff.
Regulator’s Investigation
In early 2003, Ariba became under investigation by
the Security and Exchange Commissions (SEC).
The reason for the investigation was linked to
Ariba’s accounting errors, doubtful partner deals,
and questionable e-payments items including
chartered airplanes. Among the specific allega-
tions were that Ariba failed to record a $10 million
payment from chairman Keith Krach to former
chief executive Larry Mueller as an expense. The
restatements are unusual because the chairman --
not the company -- covered the expense (Lau and
Wang, 2007). Then three weeks later, Ariba had
decided to do the same for $1.2 million in char-
tered jet services that was considered as Krach’s
compensation to Mueller, who subsequently left
Ariba in July 2001. The problem is that United
States laws and regulations require that payments
by a principal holder to executives be treated as
expenses paid on behalf of the company.
In addition, Ariba reported an additional $7.5
million to its expenses. In 2000, Ariba acquired
TradingDynamic Inc., Tradex Technologies Inc.,
and SupplierMarket.com, and it reclassified stock
options, or goodwill, that it gave to employees of
these accompanies as a compensation expense. So
by combining all of these expenses, the results were
18.7 million of added expenses. Ariba was aware
that the regulator had begun an informal inquiry
into its accounting practices after the firm said it
would restate its earnings for 10 quarters.
Unhappy Customers
Ariba was subject to bad publicity after sending out
automated emails to mid-size suppliers announc-
ing their accounts had been upgraded to Premier
level status. The email listed premier supplier
benefits as well. However, the email also informed
them that as a Premier Member, they were now
required to pay associated annual fees. Many of
the small and mid-size companies viewed this as
a marketing ploy and felt they should not all of a
547
ARIBA
sudden pay fees associated with their membership
(Eschinger, 2008).
FUTURE RESEARCH DIRECTIONS
A number of the challenges Ariba faced from its
start to the present time allowed them to evolve
over time. Ariba has been able to face these chal-
lenges head on and continue to be the leading B2B
software provider for the past 11 years. During
the collapse of the dot-com era Ariba suffered a
blow economically, as did others in the industry,
and in effect had reduced the company’s size by
half (Lau and Wang, 2007), as did everyone else.
However, they were able to build upon their core
competencies and maintain key personnel, man-
aging knowledge that formed the basis of their
competitive advantage.
They were also able to stay ahead of the com-
petition through strategic mergers which enhanced
their products and services. These mergers should
be credited to its CEOs, Presidents, and Board of
Directors. Ariba would continue to enhance its
products with the availability of constant upgrades
and varieties of new products.
With incredible technology growth and its
global demand, came the opportunity for Ariba
to expand and acquire a more precise goal and
target. Ariba has painted a vision of a world in
which spend management would be affordable and
available to all types of companies, and released
an initial set of integrated, on-demand solutions
designed to make this happen (Purdum, 2007).
In keeping this promise, Ariba would make on-
demand products and subscription-based purchas-
ing software and services available to meet the
needs of those mid-market customers not wanting
to make huge upfront investments. This strategy
of meeting the needs of various types of clients
was in some way risky, but Ariba has thrived
on making strategic, yet controversial decisions
throughout the years. Having gone through ups
and downs during the years, they still managed to
regain a leadership position even though markets
and needs have evolved and changed. Overall, they
have been able to provide customers with superb
services and innovative products, and reliability
is what keeps old customers, and helps to bring
in new customers.
There is never a guarantee of success in
business. Successful companies also must be
surrounded by a committed and devoted manage-
ment team, supported by well-trained employees.
Are these together a recipe for success? We may
never know for sure, but taking advice from a
company which has been successful since its start,
weathered some very tough times, and was able
to survive and stay above the rest before seeking
out the next realm of opportunity, is certainly an
approach that appears to be sound.
CONCLUSION
Ariba achieved recognition for its Supplier Net-
work, an e-business center where millions of
buyers and suppliers can electronically transact
business online, with the goal of more efficient
procurement. In addition, Ariba developed spend
management software, and is taking the network
mainstream. Ariba’s application-driven strategy
of an open platform, hosted and implemented by
partners with vertical-market domain expertise,
has helped to secure them a dominant position in
the B2B e-commerce application marketplace.
It is interesting to note that while many firms
who came up around the time of Ariba and offered
competing solutions, Ariba is one of the few that
has survived and thrived, using continually new
strategies to stay in business, providing a better
customer experience, and utilizing advances in
technology and ideas that no other companies
dared to try. Ariba has been, and remained a
pioneer and a leader in an exceedingly competi-
tive and changing marketplace. Due to increased
globalization and deregulation, for a company to
succeed, it must have leverage over the impact of
548
ARIBA
competitive forces. Ariba has done a great job in
setting themselves apart from their competitors
by strategically aligning themselves with their
partners, and also expanding its service offerings
to a wider range of customers. Ariba’s software
offerings help companies focus on profitability,
and together with its wide array of service op-
tions, are customizable for both larger and smaller
companies. The firm’s products are concrete and
customizable, depending on a client’s needs. In
addition, the product offerings are offered on
a common platform, allowing information to
travel accurately and quickly through the supply
chain.
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ADDITIONAL READING
Angeles, R., & Nath, R. (2007). Business-to-busi-
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to implementation. Supply Chain Management,
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Brown, D. (2008). It is good to be green, …
Chapter 12:
Religion, Culture, and Nursing
Copyright © 2016 Wolters Kluwer Health | Lippincott Williams
& Wilkins
Copyright © 2020 Wolters Kluwer • All Rights Reserved
1
Religion, Culture, and Nursing
As an integral component of culture, religious, and spiritual
beliefs, influence a client’s explanation of the:
Cause(s) of illness
Perception of its severity
Decisions about healing intervention(s)
Choice of healer(s)
Copyright © 2020 Wolters Kluwer • All Rights Reserved
2
Dimensions of Religion #1
Five major dimensions of religion:
Experiential—emotion and/or feeling about purpose in life and
connection with a higher power
Ritualistic—religious practices
Ideologic—shared beliefs of members
Intellectual—cognitive understanding
Consequential—adherence to the prescribed standards of
conduct
Copyright © 2020 Wolters Kluwer • All Rights Reserved
3
Dimensions of Religion #2
Religious Dimensions in Relation to Health and Illness
Determine the dimensions important to the client for mutual
goal setting and priorities.
Determine what a given member of a specific religious
affiliation believes to be important.
Obtain accurate information.
Understand religious virtues of clients.
Assist clients to cope with differences between their own
behaviors and the norms of their religion.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Religion and Spiritual Nursing Care
Nurses endeavor to provide holistic health care, in which the
needs of the total person are recognized.
Religion is an organized system of beliefs about the cause,
nature, and purpose of the universe, often including the belief in
or worship of a Supreme Being and a unified truth.
Spirituality is a person’s personal effort to find meaning and
purpose in his or her life. It is more focused on individual
growth, more subjective, more emotionally based, and rising
from personal experience.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
5
Question #1
Is the following statement true or false?
Religion addresses questions related to what is true and right.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Answer to Question #1
True
Rationale: Religion addresses questions related to what is true
and right and helps individuals determine where they belong in
the scheme of their life’s journey.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Spiritual Nursing Care #1
Spiritual intervention is as appropriate as any other form of
nursing intervention and recognizes that the balance of physical,
psychosocial, and spiritual aspects of life is essential to overall
good health.
Spiritual distress is disruption in the life principle that pervades
a person’s entire being and that integrates and transcends the
person’s biologic and psychosocial nature.
Cultural assessment includes assessment of religious and
spiritual issues.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
8
Spiritual Nursing Care #2
Spiritual Nursing Care for the Dying or Bereaved Client and
Family
Death of a child
Death practices
Preparation of the body
Funeral practices
Taboos
Unexpected and violent death
Bereavement, grief, mourning
Copyright © 2020 Wolters Kluwer • All Rights Reserved
9
Question #2
Is the following statement true or false?
While attention to a client’s spiritual needs is always important,
most clients view religion as a private matter, especially at a
time of crisis.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
10
Answer to Question #2
False
Rationale: The goal of spiritual nursing care is to assist
clients in integrating their own religious and spiritual beliefs
into the ultimate reality that gives meaning to their lives in
relation to the health care crisis that has precipitated the need
for nursing care.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
11
Religious Trends in the United States and Canada #1
The United States and Canada are cosmopolitan nations to
which all of the major and many of the minor faiths of Europe
and other parts of the globe have been transplanted.
Religious identification among people from different racial and
ethnic groups is important because religion and culture are
interwoven.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
12
Religious Trends in the United States and Canada #2
Copyright © 2020 Wolters Kluwer • All Rights Reserved
13
Contributions of Religious Groups to the Health Care Delivery
System
Many religious denominations own and operate health care
institutions and make significant fiscal contributions that help
control health care costs.
Roman Catholic Church–affiliated hospitals, health-related
centers, charities
Jewish hospitals, day care centers, extended care facilities, and
organizations
Lutheran, Mennonite, Methodist, Muslim, and Seventh-Day
Adventist groups also own and operate hospitals and health care
organizations
Copyright © 2020 Wolters Kluwer • All Rights Reserved
14
Question #3
The second most popular religious affiliation identified by
individuals in the United States is:
Christianity
Judaism
Islam
Atheism, Agnosticism, no affiliation
Copyright © 2020 Wolters Kluwer • All Rights Reserved
15
Answer to Question #3
D. Atheism, Agnosticism, no affiliation
Rationale: In the United States, Christianity is the most popular
religious affiliation identified (at 78.5%). Second to that, at
17.3%, is the category Atheism, Agnosticism, no affiliation.
Worldwide, Islam is second to Christianity (at 19.6% and 33%,
respectively).
Copyright © 2020 Wolters Kluwer • All Rights Reserved
16
Health-Related Beliefs and Practices of Selected Religions #1
Health-related beliefs and practices of select religions are
important to understand, especially considering the diverse
religious groups in the United States and Canada.
A brief overview of the following religions can be found in the
text:
Amish
Baha’i International Community
Buddhist Churches of America
Catholicism According to the Roman Rite
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Health-Related Beliefs and Practices of Selected Religions #2
A brief overview of the following religions can be found in the
text (cont.):
Christian Science
The Church of Jesus Christ of Latter-day Saints
Hinduism
Islam
Jehovah’s Witnesses
Judaism
Mennonite Church
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Health-Related Beliefs and Practices of Selected Religions #3
A brief overview of the following religions can be found in the
text (cont.):
Mennonite Church
Native North American Churches
Protestantism
Seventh-Day Adventists
Unitarian Universalist Church
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Chapter 11:
Culture, Family, and Community
Copyright © 2016 Wolters Kluwer Health | Lippincott Williams
& Wilkins
Copyright © 2020 Wolters Kluwer • All Rights Reserved
1
Community-Based Settings #1
An understanding of culture and cultural concepts contributes to
the nurse’s knowledge and facilitates culturally competent
nursing care in community-based settings.
Nurses are moving from acute care to community-based
settings, with the trend expected to increase.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
2
Community-Based Settings #2
Concepts such as health equality, diversity, partnership,
empowerment, and facilitation now form the basis for
community-based nursing practice with individuals, families,
and aggregates in the community.
An aggregate is a collection of people who can be thought of as
a whole simply because they happen to be in the same place at
the same time.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
3
Community-Based Settings #3
Community-based collaborative action research (CBCAR) is an
approach for nurses to partner with communities to address
health issues.
Care that is not congruent with the client’s value system is
likely to increase the cost of care because it compromises
quality and inhibits access to services.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
4
Overview of Culturally Competent Nursing Care in Community
Settings
The use of cultural knowledge in community-based nursing
practice begins with a careful assessment of clients and families
in their own environments.
Cultural data are discussed with the client and family to develop
mutually shared goals.
Nurses must take into account the diverse cultural factors that
will motivate clients to make successful changes in lifestyle and
behavioral modifications.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
5
A Transcultural Framework
Cultural/social/ecological approach:
Nursing focus is on the community as client.
A cultural/social/ecological framework facilitates a view of the
community as a complex collective yet allows for diversity
within the whole.
Assists the nurse to identify values and cultural norms of a
community.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
6
Question #1
Is the following statement true or false?
The goal of practicing in a culturally sensitive manner is to
provide care that the client, family, and health care providers
are in agreement with.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
7
Answer to Question #1
True
Rationale: The use of cultural knowledge in community-based
nursing practice begins with a careful assessment of clients and
families in their own environments. Cultural data that have
implications for nursing care are selected from clients, families,
and the environment during the assessment phase and are
discussed with the client and family to develop mutually shared
goals.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
8
Cultural Issues in Community Nursing Practice #1
Cultural influences on individuals/families:
Family structure, roles, communication, decision-making
Health beliefs/practices, alternative therapies
Patterns of daily living
Social networks
Copyright © 2020 Wolters Kluwer • All Rights Reserved
9
Cultural Issues in Community Nursing Practice #2
Cultural influences on individuals/families (cont.):
Identification with a cultural group, language
Nutritional practices
Religious preferences
Culturally appropriate behavior styles
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Cultural Issues in Community Nursing Practice #3
Cultural factors within communities:
Influence of demographics on health care; the United States is
more diverse; morbidity/mortality rates
Subcultures in the United States and diversity within them
Refugee and immigrant populations, asylees
Dinka community
Copyright © 2020 Wolters Kluwer • All Rights Reserved
11
Cultural Issues in Community Nursing Practice #4
Copyright © 2020 Wolters Kluwer • All Rights Reserved
12
Cultural Issues in Community Nursing Practice #5
Cultural factors within communities (cont.):
Maintenance of traditional cultural values and practices,
assimilation, acculturation, integration
Access to health and nursing care for diverse cultural groups :
Economic status
Discriminatory factors
Geographic location
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Question #2
Is the following statement true or false?
Assimilation and acculturation can be defined as the process by
which individuals shed their traditional culture and lifestyle and
embrace and adapt to their new culture—something all
successful immigrants and refugees experience.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
14
Answer to Question #2
False
Rationale: The terms assimilation and acculturation refer to
ways in which immigrants and refugees adapt and change over
time. These terms may imply giving up one’s traditional culture
for the dominant culture. Integration, incorporating some
aspects of the new culture while maintaining cultural traditions
and values, may better describe a successful immigrant or
refugee experience.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
15
Assessment of Culturally Diverse Communities #1
The community nursing assessment often focuses on a broad
goal, such as improvement in the health status of a group of
people.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
16
Assessment of Culturally Diverse Communities #2
Basic Principles of Cultural Assessments:
All cultures must be viewed in the context in which they have
developed.
The meaning and purpose of the behavior must be interpreted
within the context of the specific culture.
There is such a phenomenon as intracultural variation.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
17
Assessment of Culturally Diverse Communities #3
Cultural competence in health maintenance and health
promotion:
Cultural competence in community settings begins with
anticipatory planning.
Cultural sensitivity, the ability to be aware of the needs and
emotions of others, is essential to meeting health needs that
exist within diverse cultural groups.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
18
Assessment of Culturally Diverse Communities #4
Cultural competence in health maintenance and health
promotion (cont.):
Requires knowledge about:
Family systems
Coping behaviors
Lifestyle practices
Copyright © 2020 Wolters Kluwer • All Rights Reserved
Assessment of Culturally Diverse Communi ties #5
Cultural competence in primary, secondary, and tertiary
preventive programs:
The major aim of community-based preventive programs is to
reduce the risk for the population at large, rather than to prevent
illnesses in specific individuals.
In their daily practice, community nurses are often involved in
activities related to all three levels of prevention.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
20
Assessment of Culturally Diverse Communities #6
Cultural Competence in primary, secondary, and tertiary
preventive programs (cont.):
Primary—prevent the occurrence of an illness, disease, or
health risk
Secondary—early diagnosis and appropriate treatment of a
condition or disease
Tertiary—rehabilitation and the prevention of recurrences or
complications
Copyright © 2020 Wolters Kluwer • All Rights Reserved
21
Question #3
The community health nurse should target certain high-risk
behaviors for change during pregnancy, such as smoking, using
drugs, consuming alcohol, and maintaining poor nutritional
habits. Which of the following levels of prevention does this
demonstrate?
Primary
Secondary
Tertiary
Assessment
Copyright © 2020 Wolters Kluwer • All Rights Reserved
22
Answer to Question #3
A. Primary
Rationale: A program of primary prevention would focus on
preventing infant morbidity and mortality and other health
problems in mothers and their infants.
Early prenatal care may enhance pregnancy outcome and
maternal health by assessing risk, providing health advice, and
managing chronic and pregnancy-related health conditions.
Copyright © 2020 Wolters Kluwer • All Rights Reserved
23

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541 copyright © 2010, igi global. copying or distributing i

  • 1. 541 Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 53 ARIBA: A Successful Story in E-Commerce Zhongxian Wang Montclair State University, USA Ruiliang Yan Indiana University Northwest, USA James Yao Montclair State University, USA INTRODUCTION Ariba, Inc. was born during the dot-com bubble, a star amid countless other e-commerce companies. In the universe of corporations, many bright me- teors, like Commerce One, didn’t shine too long. However, the interesting evolution of Ariba, from a pioneer to a sufferer to a survivor, has taught us much about survival in the competitive business to business (B2B) software industry. Ariba’s software would help many companies save money on their procurements, and control expenses besides payroll.
  • 2. Ariba promised to help companies improve their bottom line. Many of Ariba’s clients today hold positions on the coveted Fortune 100 list. Going public in 1999, Ariba’s stock price at one time reached $259 per share. At the time, Ariba was still getting their feet wet; they had not yet made a profit. The next year their stock reached $168.75, but a negative turn in the economy lay ahead. Many companies began to cut back on investments and in just 9 months Ariba lost 95% of their value. This would be disastrous to any company, and would be the downfall of most, but Ariba made some critical key decisions that helped continue its leadership in the B2B world. They are one of the few companies to not only survive the burst of the dot-com bubble, and to this day to remain a successful company. ABSTRACT Ariba services major corporations, and provides services to smaller companies as well. In this chapter, the authors will examine how Ariba, a small startup company during the Internet boom of the 90’s was able to overcome hardships, survive market and industry downturns, and continue to thrive and survive in such a competitive industry. The authors will also review major events and innovations that helped the company to grow and succeed rather than to fail. DOI: 10.4018/978-1-61520-611-7.ch053 542
  • 3. ARIBA BACKGROUND E-commerce was in many ways revolutionized by Ariba Inc, a leading independent company in the sphere of B2B commerce network providers. The company has been evolving constantly, in coop- eration with leading companies in the industry, in order to deliver E-commerce platform products to its customers/clients. Its value chain model has been able to develop business relationships further than anticipated, the results of which made it a top 40 Fortune 500 company. Ariba has overcome many obstacles, including lawsuits, changing customer requirements, and organizational restructuring, however still man- aged to remain a leader in its specific niche area. They have done so by delivering solutions and services that meet customers’ expectations, and have been able to cope with intense competition by keeping up with today’s technologies as well as developing solutions for tomorrow. Ariba was founded in Sunnyvale CA, in September 1996, by seven men, the most influential individual being Steven Krach. Krach’s early career accomplish- ments included being one of the youngest vice presidents General Motors (Ariba, 2008). Having struggled with the procurement process in his time there; it became a precursor and impetus for the birth of Ariba. Krach and his associates brain- stormed and came up with the idea of automating the purchasing of common supplies and services. This is a seemingly simple idea, but one with a huge demand and potential.
  • 4. After three months of intensive research, which included meeting with 60 Fortune 500 companies, Ariba had a prototype developed and ready for their initial marketing campaign. Having signed software licensing deals with Cisco Systems, Ad- vanced Micro Devices and Octel Communications, prior to software completion, the pieces were put into place for the launch of their product. Among the early competitors to Ariba were Commerce One, Oracle, I2, and PeopleSoft, Inc. The objective was to become a powerhouse company with the means and resources to provide procurement software and network consulting services, enabling corporations to manage their spending more effectively. This included essen- tially all non payroll expenses associated with running a business. Ariba offered their clients real-time data by providing information over the Internet. These applications were used in conjunction with the Ariba Supplier Network to purchase goods and services. Ariba is customer driven, and offered full support, including tech- nical support, implementation, training, and consulting. E-payment and service agreements were made with American Express and Bank of America. All of these were considered large and bold undertakings for a young startup company at that time. In June of 1999, Ariba went public at a modest $23 per share, however traded as high as $259 per share at times later that year (Schneider, C. M Bruton, 2008; Haksoz and Seshadri, 2007). A stunning success for a three year old company which had yet to turn a profit, it benefited from
  • 5. being a “first mover” in the business. However, other Internet start-up companies were beginning to offer similar software and services. Over time, smaller companies began emerging with websites that provided a place to manage procurement, some with lower costs and fees. Facing challenges in the market, Ariba began to be faced with difficult challenges and had to make major decisions in order to stay in business. Ariba finally saw a profit of $10 million in December of 2000, which also included the completion of three acquisitions. Soon after, in 2001, the economy began to weaken in a downward spiral and Ariba’s stock plummeted 95%, making a business overhaul necessary. Ariba decided to take drastic cost-cutting measures, cutting about a third of their staff. Because of their specialized and niche product line, their business was able to continue and survive the setbacks faced by other Internet software companies. Krach resigned as CEO in 2001, but stayed on chairman and ap- pointed a CEO that would later cost the company 543 ARIBA much money and negative publicity. The bursting of the dot-com “bubble” marked the beginning of a relatively mild yet rather lengthy early 2000s recession (Marshall, 2001; Sahay, 2007). In time, Ariba, along with the rest of the B2B business community ran into two big problems. First, the
  • 6. brick-and-mortar Old Economy was stable and could adjust more readily to economic downturns. Secondly, companies were interested in saving transaction fees by using alternate means of such as word processors instead of using costly B2B networks. However, they were less interested in cutting their savings in terms of transaction fees (Cerquides, López-Sánchez, Reyes-Moro, & Rodríguez-Aguilar, 2007). Still, Ariba persisted and would once again regain its position as a leader in the B2B procure- ment industry. The firm made adjustments where necessary to still deliver the goods to their clients, without sacrificing their own bottom line. Accord- ing to the current CEO, Bob Calderoni, Ariba is well positioned in the spend management market and will continue to grow in the current tough global economy. The following sections explore the internal (adaptations to a competitive environment, acquire to advance, consulting adds value, emphasis on the customer) and external (severe competition, high-priced software, regulator’s investigation, unhappy customers) factors that affect the com- pany’s struggles and challenges. INTERNAL FACTORS Adaptations to a Competitive Environment At the height of the e-procurement frenzy, two companies dominated the B2B space: Com- merce One and Ariba. With the near-collapse
  • 7. of the original B2B procurement model, both companies sought new niches. Commerce One moved towards web services in an attempt to seek viable markets. Ariba, meanwhile, empha- sized enterprise spending management (Kinsey, 2004). Ariba strongly believed that a software firm’s role is to be a software tool provider. As the B2B world divided into industry sponsored exchanges and independent marketplaces, Ariba avoided involvement in managing its customers’ exchanges. Conversely, Commerce One believed that software makers had to do more than simply provide software tools. They had formed strategic partnerships with its customers and helped man- age their online marketplaces (Anderson, Opie, & Watton, 2003; Bannan, 2008). It also directed its customers towards an international trading net- work in order to build critical mass and facilitate e-commerce between them. As a new CEO, Calderoni monitored the ex- ternal environment, where a fundamental shift in the marketplace existed, and responded promptly to adjust the company’s product offering. He believed that B2B e-business had a direct and indirect impact on all functional areas, and those linkages with a company’s supply chain system was critical. In effect, Ariba was changing its focus from e-procurement, to offering products that can increase customer satisfaction by solving a variety of “spend-related” problems faced by corporations (Tadeschi, 2008). With the concept of division of labor as a microeconomic view, Calderoni added a purchas-
  • 8. ing system, general ledger, and field system into Ariba’s line of products. The added features in the company’s products were favored by Ariba’s existing customers in the auto, chemical, and manufacturing industries due to the ease of sys- tem comparability. The need to transfer data from legacy systems enabled these customers to remove outdated and inaccurate data from their systems and which also helped to improve relationships with their customers. 544 ARIBA Acquire to Advance According to Krach, a major component of Ariba’s business model is partnering followed by organic growth and acquisition, and so the company con- tinues to follow this basic approach to help ensure the firm’s success. Ariba acquired companies that had the technology and resources they needed to survive, instead of taking the time to develop them in-house. By acquiring Agile Software, a leading provider of Internet-based B2B communication technology, Ariba was able to add collaboration capability to its services, allowing its customers to communicate and coordinate product supply, design, and other specialized electronic-commerce functions. Mr. Calderoni implemented an ag- gressive acquisition strategy that significantly expanded Ariba’s technology offerings and ser- vice capabilities, and positioned the company as
  • 9. a recognized leader in its market. One goal was to secure top Fortune 10 companies and Global 500 companies as customers. In 2004, Ariba acquired Alliente Inc. and FreeMarkets Inc. to link their spend management software with its existing capacities as a B2B procurement hub. The acquisition of FreeMarkets increased Ariba’s offerings by providing global supply management software and services. This acquisition also positioned Ariba as a serious con- tender in the automotive industry, adding General Motors Corp., Daimler-Chrysler AG and Ford Motor Co. to their customer base. By acquiring Alliente, Ariba expanded its spend management and procurement capabilities to include a procure- ment out-sourcing provider (Hosford, 2007). In December 2007, Ariba announced that it had completed the acquisition of Procuri, Inc. a privately held provider of on-demand supply man- agement solutions, rounding out Ariba’s offerings that help companies automate the procurement process. According to Ariba CEO Bob Calderoni, more than 70% of Procuri’s 300 customers have under $5 billion in revenues. As a result, this deal also gave Ariba greater access to midmarket customers (Anonymous, 2007). Consulting Adds Value Calderoni believed that Ariba has survived by expanding beyond software that focused mainly on transactions, to encompassing additional facets of the buying process. Calderoni hired hundreds
  • 10. of consultants to advise companies on how to buy goods and services cheaply, using Ariba’s software. Although consulting is less profitable than selling software, Calderoni predicted he can successfully combine the two as an integrated set of offerings. While consultants coach Ariba’s clients on how to use the software effectively, Ariba’s clients can also reply on Internet-based purchasing systems to help them buy direct materi- als that are core to their company’s manufacturing processes. In order to extend Ariba’s consulting services, which in 2004 accounted for nearly half of the company’s $323 million in sales, Ariba made consultants available via email and phone for a fraction of the price that is charged to the larger companies who require dedicated consultants through in site visits. Emphasis on the Customer In 2001, investors were looking for a change in leadership at Ariba after the firm missed revenue and earnings projections by a wide margin. Ariba moved Keith Krach out of the CEO position, filling the post with the company’s President and COO, Larry Mueller. Mueller entered the position with a new strategy: to halt the company’s current plans to enter new markets, and instead opting to add new features, including electronic payment and invoicing, to its existing e-procurement and auc- tion applications. Mueller heightened the focus on improving e-procurement applications by mak- ing heavy investments in existing e-procurement
  • 11. 545 ARIBA and sourcing platforms; and building technology around the key interactions that enterprises have with trading partners. Mueller remained focused on bolstering Ariba’s role as a traditional B2B transaction platform. Ariba announced plans to invest heavily in its Ariba Commerce Services Network and its network-centric applications, including Network Connect, which allowed non-Ariba customers to come into the Ariba services network and conduct business or procure services. The company also organized its development, sales, and marketing staff to focus on specific industries. Accord- ing to Mueller, “Customer ROI is the focus.” A focus on international expansion has boosted revenue from outside the US from 10% in the third quarter 2000 to 25% in the same period for 2001 (Purdum, 2007). Ariba is trying to rebuild its fortunes as public marketplaces that use its technology are struggling - some economists feel this is due to the fact the industry just isn’t ready for e-commerce. Since joining the company in 2000, new (and current) chairman and CEO of Ariba, Mr. Calde- roni has successfully transformed Ariba from a narrowly focused e-procurement vendor to a com- prehensive spend management solutions provider that companies of all sizes rely on to transform
  • 12. the way they do business globally. Under Mr. Calderoni’s leadership, Ariba has led the way in developing and delivering innovative solutions that combine technology, commodity expertise and services to help companies streamline the procure- ment process and drive bottom-line results. EXTERNAL FACTORS Severe Competition Simply being a dot-com business survivor, how- ever, would not ensure its continued existence and profitability, and Ariba was at risk of losing business to the likes of other competitors such as SAP and Oracle. SAP, a German enterprise resource planning software maker, joined this market and signed on with Hewlett-Packard for a product called mySAP.com e-business solutions. In addition, it built a marketplace for chemical and pharmaceutical firms by educating them on mySAP.com, and with the result of install- ing a large SAP user base among Fortune 500 companies. Nevertheless, Oracle had already anticipated a shift in the market and made plans to capital- ize on it. Right now, the procurement sector is dominated by leading software companies Ariba and Commerce One. But as the slowdown in the U.S economy continues, Oracle is hoping the opportunity for companies like Ariba will start to shrink as users look to more established ones, like Oracle, for an all around e-commerce package (Arora, Greenwald, Kannan, Karthik, & Krishnan,
  • 13. 2007). Ariba had in fact provided Oracle with an opportunity to gain market share when it cut a third of its workforce and announced reduced earnings during economic recent downturns. Ariba recognized that to remain competitive, it had to address the problem of hidden costs as- sociated with the products they sell, in addition to the price they charge for the software itself within the supply chain, especially when the product was in the later stage of its cycle. When a company does not paying attention to the hidden costs of new software implementation, it can creep up and well-intentioned efforts can be result in the form of financial penalties (Angeles & Nath, 2007; Brown, 2008). By August 2008, the market for supply chain management (SCM) software market has grown. Worldwide spending on SCM solutions reached $6 billion in 2007, which was up 17.6% from 2006. SCM Technologies are well-positioned to address the economic realities facing worldwide markets where costs are skyrocketing while competition and customer demands are intensifying (Eschinger, 2008). A number of the SCM solution vendors are merging, and expanding their capabilities within 546 ARIBA the realm of supply chain technologies. In com- parison, Ariba’s 2007 revenue was $160.3 million,
  • 14. which significantly trailed behind Oracle and SAP, who reported $955.2 million and $1,334.4 million in revenue, respectively, showing that the threat of these products cutting into Ariba’s bottom line is a real one (Orme & Etzkorn, 2007). High-Priced Software Without a doubt, e-procurement is rising substan- tially among the nation’s largest 500 companies. Well-financed corporations are willing to invest in Internet software and technology that can reduce the inefficiency associated with the purchasing and buying processes. The use of this software can help companies to track spending and make sure they purchase products in accordance with contracts they have negotiated with suppliers. In fact, businesses that spend billions each year on supplies can often save tens of millions in costs by implementing such technology. However, it’s only the large firms that can devote the time and money to installing such systems, which frequently required that suppliers link to such systems as well. Since the software is generally expensive and can be complicated to install on the customer’s system, for small- and medium-sized businesses facing an uncertain economy, investments of this magnitude are can be difficult to justify. Ariba took advantage of this situation, and in 2005 announced a strategy to sell its software and services to smaller companies on an on-demand basis, so they can buy supplies more efficiently online, as well. Ariba reshaped its software system so its customers can plug into Ariba’s software through the Internet instead of installing it on their
  • 15. own systems. One major benefit of this approach, Mr. Calderoni said, is that Ariba can sell software to procurement managers and others in charge of spending, without involving the company’s information technology staff. Regulator’s Investigation In early 2003, Ariba became under investigation by the Security and Exchange Commissions (SEC). The reason for the investigation was linked to Ariba’s accounting errors, doubtful partner deals, and questionable e-payments items including chartered airplanes. Among the specific allega- tions were that Ariba failed to record a $10 million payment from chairman Keith Krach to former chief executive Larry Mueller as an expense. The restatements are unusual because the chairman -- not the company -- covered the expense (Lau and Wang, 2007). Then three weeks later, Ariba had decided to do the same for $1.2 million in char- tered jet services that was considered as Krach’s compensation to Mueller, who subsequently left Ariba in July 2001. The problem is that United States laws and regulations require that payments by a principal holder to executives be treated as expenses paid on behalf of the company. In addition, Ariba reported an additional $7.5 million to its expenses. In 2000, Ariba acquired TradingDynamic Inc., Tradex Technologies Inc., and SupplierMarket.com, and it reclassified stock options, or goodwill, that it gave to employees of these accompanies as a compensation expense. So by combining all of these expenses, the results were 18.7 million of added expenses. Ariba was aware
  • 16. that the regulator had begun an informal inquiry into its accounting practices after the firm said it would restate its earnings for 10 quarters. Unhappy Customers Ariba was subject to bad publicity after sending out automated emails to mid-size suppliers announc- ing their accounts had been upgraded to Premier level status. The email listed premier supplier benefits as well. However, the email also informed them that as a Premier Member, they were now required to pay associated annual fees. Many of the small and mid-size companies viewed this as a marketing ploy and felt they should not all of a 547 ARIBA sudden pay fees associated with their membership (Eschinger, 2008). FUTURE RESEARCH DIRECTIONS A number of the challenges Ariba faced from its start to the present time allowed them to evolve over time. Ariba has been able to face these chal- lenges head on and continue to be the leading B2B software provider for the past 11 years. During the collapse of the dot-com era Ariba suffered a blow economically, as did others in the industry, and in effect had reduced the company’s size by half (Lau and Wang, 2007), as did everyone else.
  • 17. However, they were able to build upon their core competencies and maintain key personnel, man- aging knowledge that formed the basis of their competitive advantage. They were also able to stay ahead of the com- petition through strategic mergers which enhanced their products and services. These mergers should be credited to its CEOs, Presidents, and Board of Directors. Ariba would continue to enhance its products with the availability of constant upgrades and varieties of new products. With incredible technology growth and its global demand, came the opportunity for Ariba to expand and acquire a more precise goal and target. Ariba has painted a vision of a world in which spend management would be affordable and available to all types of companies, and released an initial set of integrated, on-demand solutions designed to make this happen (Purdum, 2007). In keeping this promise, Ariba would make on- demand products and subscription-based purchas- ing software and services available to meet the needs of those mid-market customers not wanting to make huge upfront investments. This strategy of meeting the needs of various types of clients was in some way risky, but Ariba has thrived on making strategic, yet controversial decisions throughout the years. Having gone through ups and downs during the years, they still managed to regain a leadership position even though markets and needs have evolved and changed. Overall, they have been able to provide customers with superb services and innovative products, and reliability
  • 18. is what keeps old customers, and helps to bring in new customers. There is never a guarantee of success in business. Successful companies also must be surrounded by a committed and devoted manage- ment team, supported by well-trained employees. Are these together a recipe for success? We may never know for sure, but taking advice from a company which has been successful since its start, weathered some very tough times, and was able to survive and stay above the rest before seeking out the next realm of opportunity, is certainly an approach that appears to be sound. CONCLUSION Ariba achieved recognition for its Supplier Net- work, an e-business center where millions of buyers and suppliers can electronically transact business online, with the goal of more efficient procurement. In addition, Ariba developed spend management software, and is taking the network mainstream. Ariba’s application-driven strategy of an open platform, hosted and implemented by partners with vertical-market domain expertise, has helped to secure them a dominant position in the B2B e-commerce application marketplace. It is interesting to note that while many firms who came up around the time of Ariba and offered competing solutions, Ariba is one of the few that has survived and thrived, using continually new strategies to stay in business, providing a better customer experience, and utilizing advances in technology and ideas that no other companies
  • 19. dared to try. Ariba has been, and remained a pioneer and a leader in an exceedingly competi- tive and changing marketplace. Due to increased globalization and deregulation, for a company to succeed, it must have leverage over the impact of 548 ARIBA competitive forces. Ariba has done a great job in setting themselves apart from their competitors by strategically aligning themselves with their partners, and also expanding its service offerings to a wider range of customers. Ariba’s software offerings help companies focus on profitability, and together with its wide array of service op- tions, are customizable for both larger and smaller companies. The firm’s products are concrete and customizable, depending on a client’s needs. In addition, the product offerings are offered on a common platform, allowing information to travel accurately and quickly through the supply chain. REFERENCES Anderson, J., Opie, G., & Watton, J. (2003). The corporate spend agenda preview. Business Strategy Review, 14(2), 5–7. doi:10.1111/1467- 8616.00252 Angeles, R., & Nath, R. (2007). Business- to-business e-procurement: success factors
  • 20. and challenges to implementation. Sup- ply Chain Management, 12(2), 104–115. doi:10.1108/13598540710737299 Anonymous, . (2007). Moving forward by work- ing backwards. Preview Healthcare Purchasing News, 31(7), 64–66. Ariba, Inc. (2008). Preview contract management. Resource Guide, (Supplement), 62. Arora, A., Greenwald, K., Karthik, R., & Krish- nan, R. (2007). Effects of information-revelation policies under market-structure uncertainty. Man- agement Science, 53(8), 1234–1248. doi:10.1287/ mnsc.1060.0688 Bannan, K.J. (2008). Ariba creates controls for who sends marketing e-mails when. B to B Chi- cago, 93(10), 22. Brown, D. (2008). It is good to be green, Envi- ronmentally friendly credentials are influenc- ing business outsourcing decisions. Strategic Outsourcing: an International Journal, 1(1), 87. doi:10.1108/17538290810857493 Cerquides, J., López-Sánchez, M., Reyes-Moro, A., & Rodríguez-Aguilar, J. A. (2007). Enabling assisted strategic negotiations in actual-world procurement scenarios. Electronic Commerce Research, 7(3-4), 189–220. doi:10.1007/s10660- 007-9007-4 Eschinger, C. (2008, August). No recession in the supply chain arena. Industry Week, 257(8), 56.
  • 21. Haksoz, C., & Seshadri, S. (2007). Supply chain operations in the presence of a spot market: a review with discussion. The Journal of the Op- erational Research Society, 58(11), 1412–1429. doi:10.1057/palgrave.jors.2602401 Hosford, C. (2007). Ariba pins turnaround hopes on keeping in touch with customers. B to B Chi- cago, 92(1), 18. Kinsey, E. P. (2004, Fall). Where has AU the common sense gone? Mid-American Journal of Business, 19(2), 7–11. Lau, K.-K., & Wang, Z. (2007). Software component models. IEEE Transactions on Soft- ware Engineering, 33(10), 709. doi:10.1109/ TSE.2007.70726 Marshall, J. (2001, May). A foundation to build on. Preview By Financial Executive, 17(3), 7–13. Orme, A. M., & Etzkorn, L. H. (2007). A paral- lel methodology for reduction of coupling in distributed business-to-business e-commerce transactions. Journal of Electronic Commerce in Organizations, 5(3), 52–67. Purdum, T. (2007). Online marketplace evolution: In their infancy, many online marketplaces kept their focus too narrow. Those that saw the big picture survived. Industry Week, 356(1), 18–19.
  • 22. 549 ARIBA Sahay, A. (2007). How dynamic pricing leads to higher profits. MIT Sloan Management Review, 48(4), 53. Schneider, G. P., & Bruton, C. M. (2008). Using portal web sites in the purchasing function. In Proceedings of Allied Academies International Conference. Academy of Information and Man- agement Sciences, 12(2), 42-45. Tadeschi, B. (2008, November 14). A software strategy helps the little guy buy smarter. The New York Times, C9(L). ADDITIONAL READING Angeles, R., & Nath, R. (2007). Business-to-busi- ness e-procurement: success factors and challenges to implementation. Supply Chain Management, 12(2), 104. doi:10.1108/13598540710737299 Brown, D. (2008). It is good to be green, … Chapter 12: Religion, Culture, and Nursing Copyright © 2016 Wolters Kluwer Health | Lippincott Williams & Wilkins
  • 23. Copyright © 2020 Wolters Kluwer • All Rights Reserved 1 Religion, Culture, and Nursing As an integral component of culture, religious, and spiritual beliefs, influence a client’s explanation of the: Cause(s) of illness Perception of its severity Decisions about healing intervention(s) Choice of healer(s) Copyright © 2020 Wolters Kluwer • All Rights Reserved 2 Dimensions of Religion #1 Five major dimensions of religion: Experiential—emotion and/or feeling about purpose in life and connection with a higher power Ritualistic—religious practices Ideologic—shared beliefs of members Intellectual—cognitive understanding Consequential—adherence to the prescribed standards of conduct Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 24. 3 Dimensions of Religion #2 Religious Dimensions in Relation to Health and Illness Determine the dimensions important to the client for mutual goal setting and priorities. Determine what a given member of a specific religious affiliation believes to be important. Obtain accurate information. Understand religious virtues of clients. Assist clients to cope with differences between their own behaviors and the norms of their religion. Copyright © 2020 Wolters Kluwer • All Rights Reserved Religion and Spiritual Nursing Care Nurses endeavor to provide holistic health care, in which the needs of the total person are recognized. Religion is an organized system of beliefs about the cause, nature, and purpose of the universe, often including the belief in or worship of a Supreme Being and a unified truth. Spirituality is a person’s personal effort to find meaning and purpose in his or her life. It is more focused on individual growth, more subjective, more emotionally based, and rising from personal experience. Copyright © 2020 Wolters Kluwer • All Rights Reserved 5
  • 25. Question #1 Is the following statement true or false? Religion addresses questions related to what is true and right. Copyright © 2020 Wolters Kluwer • All Rights Reserved Answer to Question #1 True Rationale: Religion addresses questions related to what is true and right and helps individuals determine where they belong in the scheme of their life’s journey. Copyright © 2020 Wolters Kluwer • All Rights Reserved Spiritual Nursing Care #1 Spiritual intervention is as appropriate as any other form of nursing intervention and recognizes that the balance of physical, psychosocial, and spiritual aspects of life is essential to overall good health. Spiritual distress is disruption in the life principle that pervades a person’s entire being and that integrates and transcends the person’s biologic and psychosocial nature. Cultural assessment includes assessment of religious and spiritual issues.
  • 26. Copyright © 2020 Wolters Kluwer • All Rights Reserved 8 Spiritual Nursing Care #2 Spiritual Nursing Care for the Dying or Bereaved Client and Family Death of a child Death practices Preparation of the body Funeral practices Taboos Unexpected and violent death Bereavement, grief, mourning Copyright © 2020 Wolters Kluwer • All Rights Reserved 9 Question #2 Is the following statement true or false? While attention to a client’s spiritual needs is always important, most clients view religion as a private matter, especially at a time of crisis. Copyright © 2020 Wolters Kluwer • All Rights Reserved 10
  • 27. Answer to Question #2 False Rationale: The goal of spiritual nursing care is to assist clients in integrating their own religious and spiritual beliefs into the ultimate reality that gives meaning to their lives in relation to the health care crisis that has precipitated the need for nursing care. Copyright © 2020 Wolters Kluwer • All Rights Reserved 11 Religious Trends in the United States and Canada #1 The United States and Canada are cosmopolitan nations to which all of the major and many of the minor faiths of Europe and other parts of the globe have been transplanted. Religious identification among people from different racial and ethnic groups is important because religion and culture are interwoven. Copyright © 2020 Wolters Kluwer • All Rights Reserved 12 Religious Trends in the United States and Canada #2
  • 28. Copyright © 2020 Wolters Kluwer • All Rights Reserved 13 Contributions of Religious Groups to the Health Care Delivery System Many religious denominations own and operate health care institutions and make significant fiscal contributions that help control health care costs. Roman Catholic Church–affiliated hospitals, health-related centers, charities Jewish hospitals, day care centers, extended care facilities, and organizations Lutheran, Mennonite, Methodist, Muslim, and Seventh-Day Adventist groups also own and operate hospitals and health care organizations Copyright © 2020 Wolters Kluwer • All Rights Reserved 14 Question #3 The second most popular religious affiliation identified by individuals in the United States is: Christianity Judaism Islam Atheism, Agnosticism, no affiliation
  • 29. Copyright © 2020 Wolters Kluwer • All Rights Reserved 15 Answer to Question #3 D. Atheism, Agnosticism, no affiliation Rationale: In the United States, Christianity is the most popular religious affiliation identified (at 78.5%). Second to that, at 17.3%, is the category Atheism, Agnosticism, no affiliation. Worldwide, Islam is second to Christianity (at 19.6% and 33%, respectively). Copyright © 2020 Wolters Kluwer • All Rights Reserved 16 Health-Related Beliefs and Practices of Selected Religions #1 Health-related beliefs and practices of select religions are important to understand, especially considering the diverse religious groups in the United States and Canada. A brief overview of the following religions can be found in the text: Amish Baha’i International Community Buddhist Churches of America Catholicism According to the Roman Rite Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 30. Health-Related Beliefs and Practices of Selected Religions #2 A brief overview of the following religions can be found in the text (cont.): Christian Science The Church of Jesus Christ of Latter-day Saints Hinduism Islam Jehovah’s Witnesses Judaism Mennonite Church Copyright © 2020 Wolters Kluwer • All Rights Reserved Health-Related Beliefs and Practices of Selected Religions #3 A brief overview of the following religions can be found in the text (cont.): Mennonite Church Native North American Churches Protestantism Seventh-Day Adventists Unitarian Universalist Church Copyright © 2020 Wolters Kluwer • All Rights Reserved Chapter 11: Culture, Family, and Community Copyright © 2016 Wolters Kluwer Health | Lippincott Williams
  • 31. & Wilkins Copyright © 2020 Wolters Kluwer • All Rights Reserved 1 Community-Based Settings #1 An understanding of culture and cultural concepts contributes to the nurse’s knowledge and facilitates culturally competent nursing care in community-based settings. Nurses are moving from acute care to community-based settings, with the trend expected to increase. Copyright © 2020 Wolters Kluwer • All Rights Reserved 2 Community-Based Settings #2 Concepts such as health equality, diversity, partnership, empowerment, and facilitation now form the basis for community-based nursing practice with individuals, families, and aggregates in the community. An aggregate is a collection of people who can be thought of as a whole simply because they happen to be in the same place at the same time. Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 32. 3 Community-Based Settings #3 Community-based collaborative action research (CBCAR) is an approach for nurses to partner with communities to address health issues. Care that is not congruent with the client’s value system is likely to increase the cost of care because it compromises quality and inhibits access to services. Copyright © 2020 Wolters Kluwer • All Rights Reserved 4 Overview of Culturally Competent Nursing Care in Community Settings The use of cultural knowledge in community-based nursing practice begins with a careful assessment of clients and families in their own environments. Cultural data are discussed with the client and family to develop mutually shared goals. Nurses must take into account the diverse cultural factors that will motivate clients to make successful changes in lifestyle and behavioral modifications. Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 33. 5 A Transcultural Framework Cultural/social/ecological approach: Nursing focus is on the community as client. A cultural/social/ecological framework facilitates a view of the community as a complex collective yet allows for diversity within the whole. Assists the nurse to identify values and cultural norms of a community. Copyright © 2020 Wolters Kluwer • All Rights Reserved 6 Question #1 Is the following statement true or false? The goal of practicing in a culturally sensitive manner is to provide care that the client, family, and health care providers are in agreement with. Copyright © 2020 Wolters Kluwer • All Rights Reserved 7 Answer to Question #1 True Rationale: The use of cultural knowledge in community-based nursing practice begins with a careful assessment of clients and
  • 34. families in their own environments. Cultural data that have implications for nursing care are selected from clients, families, and the environment during the assessment phase and are discussed with the client and family to develop mutually shared goals. Copyright © 2020 Wolters Kluwer • All Rights Reserved 8 Cultural Issues in Community Nursing Practice #1 Cultural influences on individuals/families: Family structure, roles, communication, decision-making Health beliefs/practices, alternative therapies Patterns of daily living Social networks Copyright © 2020 Wolters Kluwer • All Rights Reserved 9 Cultural Issues in Community Nursing Practice #2 Cultural influences on individuals/families (cont.): Identification with a cultural group, language Nutritional practices Religious preferences Culturally appropriate behavior styles
  • 35. Copyright © 2020 Wolters Kluwer • All Rights Reserved Cultural Issues in Community Nursing Practice #3 Cultural factors within communities: Influence of demographics on health care; the United States is more diverse; morbidity/mortality rates Subcultures in the United States and diversity within them Refugee and immigrant populations, asylees Dinka community Copyright © 2020 Wolters Kluwer • All Rights Reserved 11 Cultural Issues in Community Nursing Practice #4 Copyright © 2020 Wolters Kluwer • All Rights Reserved 12 Cultural Issues in Community Nursing Practice #5 Cultural factors within communities (cont.): Maintenance of traditional cultural values and practices, assimilation, acculturation, integration Access to health and nursing care for diverse cultural groups : Economic status Discriminatory factors Geographic location
  • 36. Copyright © 2020 Wolters Kluwer • All Rights Reserved Question #2 Is the following statement true or false? Assimilation and acculturation can be defined as the process by which individuals shed their traditional culture and lifestyle and embrace and adapt to their new culture—something all successful immigrants and refugees experience. Copyright © 2020 Wolters Kluwer • All Rights Reserved 14 Answer to Question #2 False Rationale: The terms assimilation and acculturation refer to ways in which immigrants and refugees adapt and change over time. These terms may imply giving up one’s traditional culture for the dominant culture. Integration, incorporating some aspects of the new culture while maintaining cultural traditions and values, may better describe a successful immigrant or refugee experience. Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 37. 15 Assessment of Culturally Diverse Communities #1 The community nursing assessment often focuses on a broad goal, such as improvement in the health status of a group of people. Copyright © 2020 Wolters Kluwer • All Rights Reserved 16 Assessment of Culturally Diverse Communities #2 Basic Principles of Cultural Assessments: All cultures must be viewed in the context in which they have developed. The meaning and purpose of the behavior must be interpreted within the context of the specific culture. There is such a phenomenon as intracultural variation. Copyright © 2020 Wolters Kluwer • All Rights Reserved 17 Assessment of Culturally Diverse Communities #3 Cultural competence in health maintenance and health promotion: Cultural competence in community settings begins with anticipatory planning. Cultural sensitivity, the ability to be aware of the needs and emotions of others, is essential to meeting health needs that
  • 38. exist within diverse cultural groups. Copyright © 2020 Wolters Kluwer • All Rights Reserved 18 Assessment of Culturally Diverse Communities #4 Cultural competence in health maintenance and health promotion (cont.): Requires knowledge about: Family systems Coping behaviors Lifestyle practices Copyright © 2020 Wolters Kluwer • All Rights Reserved Assessment of Culturally Diverse Communi ties #5 Cultural competence in primary, secondary, and tertiary preventive programs: The major aim of community-based preventive programs is to reduce the risk for the population at large, rather than to prevent illnesses in specific individuals. In their daily practice, community nurses are often involved in activities related to all three levels of prevention. Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 39. 20 Assessment of Culturally Diverse Communities #6 Cultural Competence in primary, secondary, and tertiary preventive programs (cont.): Primary—prevent the occurrence of an illness, disease, or health risk Secondary—early diagnosis and appropriate treatment of a condition or disease Tertiary—rehabilitation and the prevention of recurrences or complications Copyright © 2020 Wolters Kluwer • All Rights Reserved 21 Question #3 The community health nurse should target certain high-risk behaviors for change during pregnancy, such as smoking, using drugs, consuming alcohol, and maintaining poor nutritional habits. Which of the following levels of prevention does this demonstrate? Primary Secondary Tertiary Assessment Copyright © 2020 Wolters Kluwer • All Rights Reserved
  • 40. 22 Answer to Question #3 A. Primary Rationale: A program of primary prevention would focus on preventing infant morbidity and mortality and other health problems in mothers and their infants. Early prenatal care may enhance pregnancy outcome and maternal health by assessing risk, providing health advice, and managing chronic and pregnancy-related health conditions. Copyright © 2020 Wolters Kluwer • All Rights Reserved 23