An SAP Perspective

Procurement
2025
January 2018

Marcell Vollmer
Chief Digital Officer, SAP Ariba

Rob Brimm
President, SAP Fieldglass

Mike Eberhard
President, SAP Concur

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 Table of Contents

3 Introduction

4 Procurement of The Future

5 Transforming the Procurement Organization

6 Corporate Procurement

7 Business Unit Procurement

8 Shared Service Centers

9 Emerging Technologies and SAP Innovations

10 Automation and Machine Learning

12 Predictive Analytics

14 Blockchain and Internet of Things

16 Human Engagement and Augmented Senses

18 Starting the Transformation Journey

20 Why SAP?

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 The golden age of procurement is upon us.
Over the next 10 years, companies will face more opportunity and
disruption than ever before. Digital transformation is already helping
companies redefine their business models, operating processes, and
work – and this trend will accelerate as powerful technologies mature.
Given that up to 65% of the value of a company’s products or services is
derived from its suppliers1, procurement will play a leading role in
enabling this transformation.

But, how will procurement organizations evolve? What new capabilities

will emerge, and how will procurement transform the work it does and
the value it brings to an organization? These important questions are top
of mind for CPOs.

SAP believes that procurement will play a growing role in most

organizations. Emerging technology, changing workforce demographics,
and the growing power of business network ecosystems will greatly
redefine how goods and services are sourced, purchased, and tracked
across every spend category. And, procurement roles and
organizational structures will change as a result.

This document explains our point of view on the future of procurement

and how SAP®, SAP Ariba®, SAP Fieldglass®, SAP Concur®, and SAP
S/4HANA® innovations will play a critical role.

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 Procurement of The Future
Top eight beliefs driving a paradigm shift

Will there be a procurement function in the future? Although some experts think procurement may virtually
disappear as an autonomous function, SAP believes its role will strengthen to become a strategic partner and trusted
advisor to the business. Cost savings will continue to be a leading goal, but we expect procurement to expand its
charter to play a key role in influencing broader business performance and innovation. Guided by the following eight
beliefs, CPOs will embrace emerging technologies, define a clear digital strategy, and reimagine the procurement
landscape to drive this transformation.

Procurement will be a driver of corporate Suppliers and external workforces will be

goals and an enabler of business invaluable business partners acting as
innovation and digitization extensions of an organization

Procurement will be the steward of Negotiations will be based on the collective

corporate reputation and brand perception value of the ecosystem; partnerships will
by ensuring a sustainable supply chain be formed to unlock innovation and value

Real-time data insights, predictive

Business networks will be the business-to-
analytics, blockchain and artificial
business (B2B) marketplace of the future,
intelligence will make procurement
allowing buyers and suppliers the ability to
simpler, smarter, and more strategic than
collaborate with ease
ever before

Hyperconnected ecosystems will enable Intelligent enterprise systems will be self-

business agility, an essential capability for learning, providing consumer-grade,
procurement to thrive in the future economy personalized user experiences and products

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 Transforming The Procurement Organization

Procurement organizations are on the brink of change – and the future is bright. In the coming years, companies will
automate most transactional activities, freeing up resources to focus on strategic efforts that drive value to the
business. As a result, the cost to run procurement will decrease, while the actual value derived from the
organization will grow.

This change enables procurement to rethink activities, resource allocation, and skill sets across its organization.
However, a one-size-fits-all approach will not work, and procurement will evolve differently across corporate,
business-unit, and shared-service levels. Procurement professionals will more closely align with business teams, and
their work will draw heavily on analytical insights empowered by rich data across the internal and external landscape.
Moreover, traditional procurement skills will give way to newer skills in data science and analytics, risk management,
and collaboration.

Procurement model for the future:

Optimize evolving procurement model and deliver value across a range of

corporate goals
Risk, sustainability, and brand | Value management and reporting |Strategic
partnership development | Supplier performance management
Corporate
Procurement

Partner and “embed” with business teams to drive value beyond

cost savings
Business Unit Category spend management | Supplier management | Contract
management | Innovation | Sourcing
Procurement

Perform highly automated and autonomous activities to

optimize cost, accuracy, and cycle time
Transactional procurement (order and invoice processing,
Shared Service goods receipt, audits, tactical sourcing) | Master data
Centers management | Analytics |Support

World-class procurement 60% of source-to-pay 84% of procurement

organizations have 22% processes have the potential to organizations believe that
lower labor costs and be fully or largely automated, digital transformation will
29% fewer FTEs2 yielding up to 3.5% of overall fundamentally change the way
spend savings3 their services are delivered over
the next three to five years4

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 Corporate Procurement:
Procurement leadership will work with other line-of-business leadership to ensure
that enterprise-wide needs are met as organizations evolve. Although they will still
measure (and be evaluated on) their ability to lower costs, there will be clear expectations
to drive tangible benefits in other areas, including customer satisfaction, supplier
innovation, cash flow, compliance, and even delivering on the brand promise. Key
areas of focus and expected change include:

KEY AREAS THE PAST NEW EXPECTATIONS

Risk, sustainability, • Focus on managing • Procurement must support and strengthen

and brand supplier risk and the brand promise by ensuring a transparent
preventing business and sustainable supply chain
disruptions • Purpose driven organizations will eliminate
modern day slavery and child labor from their
supply chains

Value management • Focus on measuring • Customer satisfaction will emerge as the key
and reporting incremental cost savings success metric (for both internal and
and efficiency external customers)
• Advanced analytics will enable “soft” benefits
to be quantified and managed

Strategic partnership • Negotiations with strategic • Real-time information sharing and collaboration
development partners focused on price, will enable partnerships to drive additional
terms, and conditions, often mutual benefits along with shared risks
with “zero-sum” outcomes
• Companies will leverage business networks to
identify the best suppliers and enable rich
collaboration that may evolve well beyond
traditional buyer and seller relationships

Supplier performance • Supplier performance • Real-time capabilities and Big Data will drive
management evaluated versus analysis to dramatically improve performance
benchmarks or past activity management. Delivered as a service, accurate
scorecards and dashboards will identify
• Lack of process and controls
patterns, best practices, and strengths and
to properly manage growing
weaknesses across holistic measures
external workforce,
potentially exposing • Visibility, transparency, and management
company around suppliers and external workforce will
minimize exposure to legal risk

Only 36% of CPOs state

that “delivering more
savings” is the highest
priority for them5

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 Business-Unit Procurement:
Procurement activity at the business-unit and operating-segment level will evolve from
executing tactical procurement activities to partnering with business and functional
managers to drive better outcomes. Although part of the activities for core sourcing,
contracting, and supplier management will shift to shared services, procurement
specialists aligned to business units will ensure that these activities integrate into supply
chains and support the needs of their customers. Specialists will also play a much more
active role in innovation, design, and supply chain conversations and will bring the
voice of externally sourced capabilities into these discussions. Specific areas of change
include:

KEY AREAS THE PAST NEW EXPECTATIONS

Sourcing • Supporting the unit on end-to- • Artificial intelligence, Blockchain, and cognitive systems
end, expertise-based activities – will guide buyers to create RFPs, draft contracts, and
sourcing, category and supplier provide guidance on sourcing decisions
management, as examples
• Predictive analytics will be used to increase spend visibility,
• Driver of sustainable savings drive sourcing decisions, and inform demand planning
across the organization
• Open ecosystems will connect buying channels and allow
• Sourcing strategy development policy to be easily applied across spend categories,
including travel
• Supplier negotiation
• Easy-to-use marketplaces and automated systems will
eliminate maverick spend

Category spend • Often lacks visibility into total • Customer satisfaction will emerge as the key success
management spend metric (for both internal and external customers)
• Hard to control maverick spend • Advanced analytics will enable “soft” benefits to be
across category quantified and managed

Supplier • Supplier discovery is manual, and • Business networks will streamline and improve supplier
management often requires the buyer’s help discovery and management
• Supplier management, driven by • Overall supplier management will be improved by
the aspects of price, quality, and integrated analytics and dashboards highlighting actual
delivery, is a manual, paper-driven performance across numerous dimensions, predicted risk,
process and projected performance
• Supplier risk assessments are
static and infrequently updated

Contract • Manual processes for authoring • Digitization of contracts will increase quality, collaboration,
management and execution transparency, and speed during the negotiating process with
suppliers
• No central location for
document management • Smart contracts will reduce compliance concerns
• Difficulty ensuring compliance to • Negotiation bots (hagglebots) will drive simple sourcing events
contracts

Innovation • Procurement involved in make- • Procurement specialists will bring expertise on trends and
versus-buy analysis future capabilities that can be sourced into early stages of
product development and innovation discussions, and will
embed with teams and be true partners

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 Shared Service Centers:
Shared service centers will evolve rapidly to support increasingly complex
transactions and work in a highly automated environment. Leveraging technologies such
as robotic process automation (RPA) and machine learning, these centers will become
autonomous “lights-out” facilities enabling unprecedented response times and
efficiencies.

KEY AREAS THE PAST NEW EXPECTATIONS

Transactional activities: • Requests manually created, • Job functions will be replaced by automation, such
• Order requisitioning reviewed, approved, and processed as Robotic Process Automation (RPA) and
and processing machine learning
• Manual intervention for exception
• Goods receipt handling, such as invoice • Transactional work will be largely automated and
• Invoice processing exceptions or expense report audits centered in “lights-out” centers
• Audits • Time-intensive, manual, and • Consumer-like systems will enable self-service
• Tactical sourcing disconnected activities – follow procurement
Standard Operating Procedures or
• Travel spending is captured where it happens,
checklists to hold the fragmented
even when it happens outside of existing
processes and steps together
management systems; policy is seamlessly applied
to direct bookings to better support traveling
employees and utilize negotiated rates

Master data • Manual, and error-prone • Job functions will be replaced by automation or
management processes that create issues, self-service portals, such as RPA and blockchain
such as delayed payments
• Real-time data and communicating systems will
• Integration issues and time lag eliminate integration issues
between systems

Analytics • Focused on execution key • Advanced analysts and data scientists will tune
performance indicators (KPIs), models and identify exceptions, risks, and
such as accuracy rates, cycle times, opportunities
and throughput, for Shared Service
• Greater emphasis will be placed on quantifying
Center (SSC) staff
value beyond cost savings
• KPIs often difficult to pull from
various sources

Support • Maintain processes and policies • Job functions will be replaced by automation, such
as chatbots
• User and supplier support
• Consumer-like tools will lessen the need for
• Training and communications
training
• System administration
• Policies will be embedded in the tools

Talent and staffing • Staffing profile focused on low- • Advanced analytics skills, data scientists, and data
cost but dependable personnel architects will be required to adapt, monitor, and
optimize automated activities
• Lower turnover will be seen due to higher talent
needs and higher-value activities

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 Emerging Technologies and SAP Innovations

Without a doubt, digital technologies will revolutionize how goods and services are procured, tracked, delivered, and
managed. Advancements in real-time connectivity, 3D printing, drones, and other innovations have great potential to
disrupt existing supply chains. Procurement organizations must stay abreast of new developments in these areas.

Four technologies, however, have the greatest potential impact on procurement. Together, these technologies will
extend core procurement solutions across secure cloud architectures to drive business innovation and customer
value while improving productivity.

PREDICTIVE
AUTOMATION AND
MACHINE LEARNING ANALYTICS

Step-change in productivity with Data transformed into powerful

autonomous systems insights to drive proactive strategy
and smarter actions

BLOCKCHAIN AND THE HUMAN ENGAGEMENT

INTERNET OF THINGS & AUGMENTED SENSES

Secure, transparent, and efficient Bridging the physical and digital

exchange of assets and value without worlds for well-guided and faster
intermediaries execution

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 Automation and Machine Learning
Build intelligent and adaptive business capabilities to
automate activities and improve results

Based on a recent study with over 630 customers, 52% of the procurement organization’s time is spent
on transactional activities.6 Though much of this time is dedicated to reconciliation and compliance
activities, maverick spend, cycle time, and accuracy rates still fall short of expectations. To make matters
worse, most of these activities are reactive and are unable to address issues until the damage is done.

Soon, automation technologies, supported by robust machine

learning algorithms, will redefine activities across the entire source- “It’s easy to predict which jobs
to-settle spectrum. These technologies will enable organizations to are going to disappear, but it’s
perform transactional activities at much greater speed, lower cost, hard to predict which new
and higher accuracy. More importantly, these self-learning systems jobs are being created.”
will adapt and strengthen to evolve with the organization. Juergen Schmidhuber,
director of IDSIA (Institute for Artificial Intelligence)7

CPOs are evaluating machine learning capabilities to:

• Automate all manual, tactical, repeatable processes, limiting human intervention to decisions that have
not been preconfigured. Resources can therefore shift to more strategic and value-creating activities.

• Extract and analyze huge volumes of structured and unstructured data to improve self-learning and
cognitive automation, empowering sourcing professionals to evaluate, negotiate with, and appraise
suppliers much more effectively.

• Reduce the time, effort, and costs consumed by source-to-contract activities, using cognitive analytics
to remove bias and dramatically speed up review cycles and decision making.

Only half of large companies World-class procurement RPA typically drives

(having more than 100K organizations achieve 71% 25-50% cost savings 10
employees) have an AI lower cost per order than
strategy in place 8 their peers 9

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 Key Automation and Machine Learning innovation scenarios:

Corporate Procurement
Risk management: Algorithms can identify, evaluate,
Business Unit Procurement and mitigate global risk and supply disruptions in real
time. Transactions and negotiations account for
Contract management: Self-learning
potential risk based on real-time analysis of multiple
algorithms extract and interpret critical
internal and external data sources.
information from documents to enforce terms,
and improve compliance and negotiation
capabilities. Automated contract reviews require
human review of only non-standard clauses or Shared Service Centers
terms. Automated contract creation takes place
Order management: Autonomous systems self-trigger requisition and
in the contract repository.
PO processing based on data triggers such as stock information, thereby
limiting human intervention for approvals.
External workforce: System can be enabled to release a request for
proposal (RFX) or statement of work (SOW), which suppliers can then
use to attribute the needed workers. Skill matching can be done using
machine learning algorithms, which will lessen lead time and the
manager’s tasks, and will encourage the use of flexible labor for non-core
company tasks in the future.
Invoice management: Invoices are automatically matched to purchase
orders using machine learning algorithms with 99% accuracy rates and
faster cycle times.

SAP Innovations include:

Machine learning-powered SOW SAP Concur Invoice and SAP Classify spend with SAP Ariba
creation with SAP Fieldglass Concur ExpenseIt solutions
solutions
Automatically digitize paper receipts Enable efficient collaboration between
Accelerate the SOW creation process and invoices as machine learning trading partners by automatically
by leveraging machine learning to algorithms accurately extract data clustering and matching products
analyze a user’s previous actions and from receipt or invoice images and based on machine learning analysis of
apply them to the new service request then predictively categorize and flows across the business network
assign the information

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 Predictive Analytics
Predict outcomes by combining multivariate data sets,
modeling techniques, and complex algorithms

Traditionally, procurement has been focused on cost savings and has delivered year-on-year savings
successfully. While, this remains an important objective, the current growth rate in procurement savings
isn’t sustainable. Moreover, rapidly changing consumption habits and complex supply chains are creating
new expectations on procurement to bring in much-needed agility and risk mitigation techniques to these
processes.
IoT and Big Data capabilities, with advanced analytics engines, will 65% respondents say that
drive holistic and futuristic insights to enable procurement to analytics will have the most
become cognitive, identify breaking points early, and unmask impact on procurement in the
opportunities to innovate. next two years11
CPOs are evaluating advanced analytics capabilities to:

• Improve decision making based on information-driven planning and analysis, including “clean
sheeting” or “should-cost” calculations

• Simulate demand based on more criteria and using more sources of information

• Enable agile supply chain operations based on transactional and IoT sensory data that monitors
internal and external conditions for continuous monitoring and timely actions

• Develop standardized dashboards based on complex algorithms for closer evaluation of

supplier performance management and capabilities

Advanced analytics, including 50% of respondents identified 57% of respondents say that
should-cost analysis, can data analytics skills as the Big Data technology is being
reduce cost of component biggest talent gap in an e- extensively applied across
products or services by up to Sourcing Society survey13 procurement for intelligent
40 percent12 and advanced analytics
for negotiations14

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 Key Predictive Analytics innovation scenarios:

Corporate Procurement
Go-to-market risk: Simulate go-to-market conditions
Business Unit Procurement based on access to supplier and other external
information, taking more than just the historical and
Spend management: Identify new categories of
transactional data into consideration. This can help
spend and additional sources of savings in the
organizations identify key risk or opportunity areas
areas of strategic sourcing, maverick spend, and
very early – in the product design and development
tail spend buying by including unstructured data
phase – and formulate their strategy accordingly.
to spend analysis.
Shared Service Centers
Contract management: Leverage the
structured and unstructured contract data for Error and fraud assessment: With in-memory computing, running
performing should-cost analysis to factor in analytics on the transactions platform can help identify fraud and errors
margin considerations and to strengthen in real time, saving significant time and losses to the organization. Audit
negotiation capabilities. expense reports in real time using machine learning technology to
identify errors, uncover potential fraud, and expose policy and
Supplier risk management (SRM): Enhance
compliance issues.
SRM capabilities with risk-sensing technologies
and supplier dashboards to enable predictive
and proactive risk identification and real-time
supplier performance management.

SAP Innovations include:

SAP Ariba Supplier SAP Fieldglass Live SAP Ariba runs IBM SAP S/4HANA Sourcing
Risk Insights service Watson and Procurement solution
Manage supplier risk at scale SAP Fieldglass Live Insights SAP Ariba is using the The predictive analytics
across large supply base; simulates and predicts processing power of IBM algorithm leverages
proactively monitor risks external talent scenarios, Watson, which can also be historical data to estimate
from external data sources helping customers make leveraged to improve the consumption date. This
in the context of 360-degree workforce decisions in advanced analytics, such will be supplemented with
supplier engagement moments, in one as enriching the supplier risk situational and contextual
exposure. uninterrupted workflow, solution with IBM Watson’s awareness capabilities going
moving seamlessly from weather data. forward.
idea to requisition.

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 Blockchain and Internet of Things
Ensuring trust by enabling transparent and secure transfer of
digital value, assets, and records

Supply chains need to be far more responsive and dynamic than ever before. Customers have more
information and choice at their fingertips. At the same time, sustainability requirements and the risk of
fraudulent goods and transactions are becoming bigger concerns than optimizing costs. This makes it
imperative that the procurement function reinvent itself with the latest technologies to provide the
necessary speed, agility, security, and traceability to the supply chain.

Blockchain and Internet of Things (IoT) will help organizations ensure that goods and digital assets have
clear provenance, can be trusted, and are efficiently transferred from one party to another. Additionally,
smart contracts, which contain criteria, triggers, and actions embedded into a blockchain record itself,
leverage blockchain’s underlying distributed ledger technology. This enables trusted relationships
amongst multiple parties, without the need of extensive paperwork, intermediaries, or dedicated staff;
lowers the operational costs for procurement; and provides the necessary agility to adapt supply chains
quickly.

CPOs are evaluating IoT and blockchain capabilities to:

• Enhance transparency into the supply chain through the input, finished goods, and
consumption stages

• Accelerate procure-to-pay activities (digitizing verification and validation, automating invoicing

and payment triggers) while enhancing security and lowering costs

• Expand collaboration internally and externally by establishing a higher level of peer-to-peer trust

$ 20 Billion in projected Blockchain for Invoice By 2020, IoT technology will

annual infrastructure cost Processing could reduce cost be in 95% of electronics for
savings by 2022 through per invoice by up to 60% 16 new product designs 17
Blockchain 15

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 Key Blockchain and Internet of Things innovation scenarios:

Corporate Procurement
Sustainability and corporate social responsibility:
Business Unit Procurement Blockchain and IoT will ensure a sustainable supply
chain by strengthening the traceability and credibility
Contract management: Smart contracts with
of goods transacted
less to no paperwork, higher trust and
compliance, and stronger integration capabilities
with other technologies, such as AI and RPA
Supplier management: Faster supplier Shared Service Centers
onboarding and evaluation, with supplier rating
Procure-to-pay cycle: Real-time connectivity to sensors for automatic
aggregated by network
goods receipt and auto-invoice creation governed by smart contracts
Operational and supplier risk: Rapid mitigation
Autonomous shared services: Immutable records for self-triggers and -
of disruptions by enabling traceability of goods
approvals, making transactional activities completely autonomous (staff
and services from point of origin throughout the
involved only in exception handling)
supply and distribution chain

SAP Innovations include:

Trusted B2B commerce SAP Cloud Platform SAP Cloud Platform, Internet of
Blockchain service Things services, application
SAP Ariba and Everledger are
enablement option
partnering to track each asset’s Enable customers to build
movement and inherent value from blockchain extensions and Securely connect with a magnitude of
origination to end consumption. 18 capabilities that integrate with core devices over a broad variety of
processes, emerging IoT protocols to derive business relevant
technologies, and broad partner data. The IoT services enable flexibility
ecosystems. as to where and how to process IoT
data and real-time analytics, and
interacting with the digital core.

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 Human Engagement and
Augmented Senses
Influencing user behavior with simplified and contextual
information delivery to drive actions that maximize value

As digital technologies evolve in their capabilities, users will be empowered by highly personalized tools and
processes that will increase efficiency, compliance, and productivity. Human engagement will be the top
priority for procurement organizations as they look to deliver valuable services to both internal and external
customers. Experiences will be seamlessly integrated, with self-service capabilities providing both scale
and agility. Real-time guidance along with embedded policies will enable compliant activity, and mobility for
both internal and external stakeholders will be key. Users will be able to adopt and apply capabilities with
little to no guidance.

Advances on the user interface (UI) and user experience (UX) front coupled with visualization and AI tools
will play key roles in driving the benefits of digitalization. This will lead to simplified understanding of data
and absorption of insights to enable better and more timely decision making.

CPOs are evaluating digital technologies to:

• Deliver consumer-grade experiences that drive compliant and productive behavior. These
intuitive and elegant applications and interfaces will use traditional, mobile, augmented reality
(AR) and/or virtual reality (VR) visualization technologies to contextualize insights and guide
users

• Bring in smart digital assistants using natural language conversational technologies to simplify
the ordering process and rules enforcement

• Enable procurement professionals to interact with partners and customers in a highly cost-
efficient and scalable manner

On average 5% of all spend 4 minutes+ average time saving By 2025, the VR/AR market
does not comply with per chatbot enquiry when could grow to $675 Billion21
corporate procedures (e.g., is compared to traditional call
“maverick”)19 centers20

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 Key Human Engagement and Augmented Senses innovation scenarios

Corporate Procurement
Risk mitigation: By delivering consumer-grade tools
Business Unit Procurement and processes, users are naturally encouraged to use
compliant behaviors, essentially lowing corporate risk
Source-to-contract: Using visualization and
and exposure. Users also provide real-time feedback,
AR/VR technologies with haptic experience to
which can highlight deviations from policies to further
enable buyers to remotely access and evaluate
drive compliance.
product characteristics, drive faster cycle time,
and make better decisions more efficiently.
Shared Service Centers
Purchase requests: Guided tools and conversational UIs afford users a
simplified, easily navigable, and rules-driven interface that helps them
work faster while enforcing checks and balances. Combined with AR/VR
technologies, users can “feel” the product before ordering. With the self-
service abilities, most transactions will be no-touch from a shared
services perspective.
Service desks: Chatbots can be used for responding to queries, alerts,
or recommendations in combination with machine learning and analytics.

SAP Innovations include:

Guided buying capability SAP Ariba Spot Buy SAP Leonardo SAP AR Warehouse Picker
for SAP Ariba solutions Catalog Conversational AI mobile app
Foundation system
One place to buy – a Ready-to-go marketplace Incorporate augmented
simplified user experience providing consumer-grade Drive higher adoption, reality and smart glasses to
for the user with preferred experience with choices for automation, and user access business processes
buying channels and built-in the user; solves maverick productivity by enabling and information from a
policies providing guiderails. spend challenges for humans to interact with wearable device to
customers and eliminates machines using natural supercharge convenience
the long tail of suppliers. language. and productivity.

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 Starting the Transformation Journey

SAP’s approach to digital is pragmatic and proven. Through innovation, partnerships, and acquisitions, we
have built the digital platform of the future. The SAP digital core combined with best-of-breed SAP Ariba,
SAP Fieldglass, and SAP Concur cloud applications provide a comprehensive solution to help organizations
meet the diverse spend management needs of today’s enterprise. This is the only offering for true total
spend management, providing the ability to scale along with agility and choice.

We know that a digital transformation can be achieved by connecting business models and processes
through a single digital core. A comprehensive business network that simultaneously spans end-to-end
processes and drives collaboration and innovation between buyers and sellers is an essential component
to realizing this transformation – both inside and outside the four walls of your organization.

SAP has a unique position in the digital economy. With our strategic relationships with thousands of
companies across 25 industries, we are deeply invested in helping our customers succeed with their
transformation. Given our expertise and position in the digital ecosystem, we are excited to offer new
services to digital leaders.

SAP’s modern business suite of fully integrated solutions:

SAP Leonardo brings digital technologies (machine learning, IoT, blockchain, etc.) to every SAP solution category to enable our
customers to extend SAP solutions and/or build new apps

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 A strategic partner

SAP brings a strategic partnership with an unparalleled amount of experience and strong track record to assist you
on your journey.

Plan and measure value Enable value with Realize value with
with value engineering world-class services customer management

• Collaborative approach: Focused • Holistic point of view: Consider • Ambassadors for your success:
on value, we partner with our organizational, process, and metrics Your partner to guide you on your
customers to understand where the aspects, as well as technology journey and chart your next steps
business is today and plan for the
• Proven approach: Realistic • Single point of contact for the
future
program-based approach, starting cloud: A focal point to address all
• Start with your desired business with defining the outcomes and things cloud
outcomes: Programs are developed finishing with your users hitting the
• Adoption champions: We work with
based on your desired outcomes ground running
you to get the most from your
• Tailored road map: Chart your • Relevance and experience: Our investment
short-term and long-term approach services organization has an
average tenure of over 10 years

Next steps

Achieving your digital strategy will require significant focus and executive commitment along with a business
partnership with SAP to drive a successful outcome. SAP brings unparalleled experience and a strong track record to
digitally transform your organization’s commerce and run it more effectively for years to come.

SAP Executive Digital Digital Design

Exchange community readiness thinking
Community of digital leaders, Understand if your procurement Explore new angles and
sharing strategic insight and organization is ready for digital— perspectives to your problems to
ideas for a competitive advantage benchmark yourself to assess unearth underlying desires and
and a better world capabilities and skill gaps needs

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 Why SAP?

SAP’s industry-leading portfolio of cloud solutions is uniquely positioned to enable our customers’
digital transformation across all key aspects of their business value chain, offering total spend
management. The value of SAP is in the seamless integration we deliver across every part of the
digital business framework. As we strive to embrace emerging technologies, our customers can look
forward to continued simplicity and efficiencies across the procurement technology landscape.

MARKET LEADER

• 40+ years of experience in supporting mission critical processes across 25 industries

• #1 Leader in many categories (ERP, business networks, total workforce management, B2B e-
commerce, marketing, supply chain, analytics and many more)
• Largest and fastest growing cloud application portfolio with more than 30 solutions for all
lines-of-business (LoB) as well as business suites
• Positioned as a Leader in Gartner Magic Quadrant for Operational Database Management
Systems (OPDMS)
• Integrated end-to-end solutions with flexibility to deploy on-premise/on-cloud/hybrid
• 17K+ strong partner ecosystem (including major SIs, Google, Apple, Siemens, etc.) to drive
innovations and deliver solutions
• SAP portfolio includes innovative and cost effective solutions for the SME segment
DRIVING INNOVATION

• With SAP S/4 HANA companies can finally operate in real-time and drive step change in
productivity
• Market leading open cloud platform with new generation technology stack to drive digital
transformation
• One of the first technology companies to embrace design thinking and help customers to
drive innovation
• Well positioned to bring newer technologies (like machine learning/ blockchain) into
enterprise applications with minimal disruption.
• Through the integration of our industry solutions and new technologies such as IOT and ML
we are delivering on a true SENSE/ANALYZE/RESPOND solutions that redefine how
companies operate.
• Packaged solutions and services to kick-start innovation and scale quickly

20
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SE or an SAP affiliate © 2017 SAP SE or an Procurement 20
2025 All rights reserved.
SAP affiliate company.
SAP QUICK FACTS

Global Digital
Industry & Innovation
presence & Economy
LoB focus leader
relevance ready

• 87K Employees • Solutions for 25 Industries • 137M business cloud users • 100+ development and
representing 130 and 12 LOBs • 3 M connected businesses innovation centers
nationalities
• 98% of top valued brands • ~$ 1 Trillion in B2B • 5.9K+ startups on HANA
• 365K+ customers are our customers commerce platform
• SAP operates in • 76% of world’s • 97%+ of mobile devices • The SAP HANA® platform can
180+ countries transactions managed on connected with SAP increase analysis speed by
SAP messaging more than 10,000x, equal to
• 17K+ SAP partner • Every day, Ariba Network walking from California to New
companies • $22 trillion of consumer processes $29 M on-time York in six minutes.
purchases touched by SAP payments with remittance
systems information • Guinness World Record® for
loading, storing, and analyzing
• Over 3 M enterprises are • Every 60 seconds, the Ariba big data at 34.4 terabytes per
transacting business in the Network processes ~$2 M hour
cloud through the Ariba B2B commerce exchanges.
Network. • On an average day, SAP • Analytics solutions from SAP
Concur processes over help track more than 6 billion
• More than 46.5 M end U.S. stock trades per day to
users book travel and 590K billable transactions,
more than 700K mobile identify fraud and protect
process expenses with SAP investors.
Concur. logins, and books >191K
business trips.
• SAP Fieldglass solutions • Every day, SAP Fieldglass
manage >3.9 M flexible solutions process over
workers per year. 35,600 timesheets for
external workers and 1,600
flexible work postings.

© 2017 SAP SE or an SAP affiliate company. All rights reserved. Procurement 2025 21
 References

1. CAPS Research, Institute for Supply Management, Cross-Industry Report of Standard Benchmarks
2. “Raising the World-Class Bar in Procurement through Digital Transformation” The Hackett Group, June
2017
3. “A road map for digitizing source-to-pay” McKinsey, April 2017
4. “Digital Procurement From Myth, to Unleashing the full Potential” Oliver Wyman, 2017
5. “CPO Rising 2016: The Art and Science of Procurement” Ardent Partners, 2016
6. SAP Performance Benchmarking
7. Interview with Juergen Schmidhuber, BCG
8. “ Reshaping Business with Artificial Intelligence”- BCG/MIT Sloan
9. Raising the World-Class Bar in Procurement through Digital Transformation” The Hackett Group, June 2017
10. “E&Y Digital Procurement Enablement”
11. The Deloitte Global CPO Survey 2017
12. “Should-Cost Review to Improve Affordability”, ATKearney
13. Empowered by Analytics EY, 2016
14. The Deloitte Global CPO Survey 2017
15. “Fintech 2.0 Paper: rebooting financial services” Santander, InnoVentures, Oliver Wyman, Anthemis Group
16. IBM Use Case, Blockchain, the next disruptor of finance
17. Gartner’s Top 10 Predictions for IT in 2018 and Beyond
18. SAP Ariba Gets in Blockchain Game, SAP Ariba Press, March 21, 2017
19. SAP Benchmarking
20. “Chatbots: Key statistics infographic 2017”, Juniper research
21. “Virtual and Augmented Reality Have Great Growth Potential”, Credit Suisse June 6, 2017

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2025 All rights reserved.
SAP affiliate company.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. Procurement 2025 23
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