Driving Rapid Time To Value Through Ariba Collaborative Commerce Solutions
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Ariba Collaborative Commerce provides a cloud-based solution that extends procurement capabilities across a company's extended supply chain. It allows for easy catalog use, purchase order automation, invoice automation and receipt, and supplier enablement on Ariba's business network. Customer case studies showed benefits like 15% increased solution adoption, 30% improved invoice processing, and 99.99% first-time invoice matching. The presentation provided an overview of the solution's capabilities and customer success stories.
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Driving Rapid Time To Value Through Ariba Collaborative Commerce Solutions
- 1. Driving Rapid Time to Value through Ariba Collaborative Commerce Solutions Vikram Pathak, Tarun Jain © 2013 Ariba, Inc. All rights reserved.
- 2. #AribaLIVE Agenda • Executive Summary • Why do we need Collaborative Commerce? • What’s the Value Proposition? • Customer Success Stories • Peek into Roadmap 2 © 2013 Ariba, Inc. All rights reserved.
- 3. #AribaLIVE Ariba® Collaborative Commerce Executive Summary 1. Procurement has a more strategic role in today’s organizations. It must deliver value and bottom line savings. 2. Most customers manage only a fraction of their spend even with Procurement Automation. But they must increase spend managed to achieve their goals. 3. “ Networked enterprises are 50% more likely to have increased sales, higher profit margins, gain market share, and be a market leader. ” 4. Ariba provides a fast and differentiated solution for the entire Procure-to- Pay cycle even for companies using non SAP ERP eProcurement systems How do you maximize your SAP (or other ERP) Procurement investment? How do you improve collaboration with your trading partners? Why does a network make you more profitable? Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” December 2010
- 4. #AribaLIVE Agenda • Executive Summary • Why do we need Collaborative Commerce? Business Drivers Market Situation • What’s the Value Proposition? • Customer Success Stories • Peek into Roadmap 4 © 2013 Ariba, Inc. All rights reserved.
- 5. #AribaLIVE The Reality of Today’s Business: According to CFO Research… 61% of you will have increased cost savings targets 44% of these targets will be greater than 5% Creating Process Efficiencies is the top priority for CFOs Source: CFO Magazine survey of 263 senior finance executives 5 © 2013 Ariba, Inc. All rights reserved.
- 6. #AribaLIVE Top Business Focuses RevenueCosts Risk Manage Cash RISK MANAGE CASH The Reality of Today’s Business: 6 © 2013 Ariba, Inc. All rights reserved.
- 7. #AribaLIVE The Challenges We Hear from Potential Buyers I can’t find what I need! New products aren’t there. It’s too complicated to use! I’ll just phone Jim like I always do! The pricing is never right. I can’t buy services! Users Poor adoption of Procurement Systems Not enough suppliers enabled Catalogs not up-to-date System is not user friendly No Complex Services Lack of Contract Compliance – Difficulties managing compliance to contracts, SLAs and regulations introduces legal and financial risks. Contract leakage and exception management. Poor Collaboration – Collaboration with trading partners is limited to email, mail, fax, and phone. Inefficient plus lack of order/invoice data hampers productivity. 7 © 2013 Ariba, Inc. All rights reserved.
- 8. #AribaLIVE The Challenges We Hear from our Potential Customers: The maintenance is too much! It takes too long to get catalogs up! I give up, I can’t control the spend! Everybody goes around the system! I can’t connect multiple systems! Procurement/IT/AP Different systems have different applications- increased costs and time. High Maintenance – Catalogs are costly to maintain as well as multiple systems Lack of Contract Compliance – Difficulties managing compliance to contracts, SLAs and regulations introduces legal and financial risks. Contract leakage and exception management. Long invoice cycle times – Missed discounts, late payments, lack of compliance Invoices aren’t getting paid on time 8 © 2013 Ariba, Inc. All rights reserved.
- 9. #AribaLIVE The Solution: Ariba® Collaborative Commerce A cloud-based solution that extends the business process capabilities of SAP (or other ERP) systems across your extended supply chain… Ariba® Collaborative Commerce Ariba® Collaborative Commerce is: • Easy to Use Catalog • Purchase Order Automation • Invoice Automation • Invoice Conversion Services (Open ICS) Collaborative Commerce • Complete Compatibility with SAP NetWeaver™ • Trading Partner Connectivity • Supplier Enablement • Catalog Management • Buyer Portal • e-Invoice Receipt 9 © 2013 Ariba, Inc. All rights reserved.
- 10. #AribaLIVE Ariba® Collaborative Commerce Expanded Contract Compliance Catalog Support PO Collaboration Invoice Receipt & Compliance ARIBA Collaborative Commerce Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier EDI Email CSV HTML cXML AS2 Paper Enterprise ERP xCBL Smart PDF • Plug-in to 800K+ Suppliers • Single Point of Collaboration for all Suppliers • Collaboration Capabilities to Include all Spend Types • Simplified Buying •Deployed in little as 14 weeks, High ROI Requisition Ownership and Order Workflow Goods & Services Receipt Exceptions and Approval Workflow PAY CORE ERP POs Invoices Order & Shipment Confirmation POs Invoices Order & Shipment Confirmation 10 © 2013 Ariba, Inc. All rights reserved.
- 11. #AribaLIVE Catalog Capabilities Capabilities and benefits • Simplified shopping for casual users • My Favorites • Kits & Bundles • 3 Bids &Buy • Level 2 Punch Outs • Complex Services Quotations (optional) • Generation of a requisition, reservation, or purchase order • Drive spending to preferred vendors, contracts • Supplier catalogs delivered via the Ariba Network PO Collaboration Invoice Receipt & Compliance Ariba Collaborative Commerce Requisition Ownership and Order Workflow Goods & Services Receipt Exceptions and Approval Workflow PAY CORE ERP Contract Compliance Catalog Support 11 © 2013 Ariba, Inc. All rights reserved.
- 12. #AribaLIVE Usability Helps Adoption… © 2013 Ariba, Inc. All rights reserved.12 • Users can find what they need • From the suppliers they want • At terms that are proactively compliant Non catalog items Favorites Shopping cart Dashboard view Type ahead Filtering Approved suppliers Compliant to your contract “We start to see Ariba much more like Amazon.com, users are adopting that much faster.”
- 13. #AribaLIVE PO and Invoice Automation Contract Compliance Catalog Support PO Collaboration Invoice Receipt & Compliance Ariba Collaborative Commerce Requisition Ownership and Order Workflow Goods & Services Receipt Exceptions and Approval Workflow PAY CORE ERP Capabilities and benefits • Delivery of electronic POs from any system • Real-time visibility into order status, ASNs, and related documents • Paper and electronic invoice capture • >70 configurable business rules capture errors and exceptions before they reach AP • Auto post rates of 98%+ • Self-service supplier portal for real-time invoice/payment status • Flexible invoice submission options, including PO-Flip® • Compressed invoice processing cycle 13 © 2013 Ariba, Inc. All rights reserved.
- 14. #AribaLIVE Ariba® Collaborative Commerce Functional Process Flow System generates contract compliant POs from approved reqs Suppliers create electronic invoices which are routed via the Ariba Network Approvals are routed to managers and/or purchasing agents based on business rules End-users create requisitions for goods & services from electronic catalogs in Ariba that are accessed through their ERP – seamlessly and checked for contract compliance User UserUser OK-To-Pay sent to ERP and Suppliers are paid via ERP Accounts Payable system End User ERP POs routed to suppliers via the Ariba Network Global Supplier Community Supplier Supplier Supplier Supplier Supplier Supplier Portal XML Fax EDI AS2 CSV Email Suppliers send back acknowledgements and/or Advanced Ship Notices Goods are shipped / Services are performed by the supplier Central and/or end user receiving is performed – sign off on services performed ERP 2, 3, and/or 4-way invoice matching and reconciliation is done using POs, receipts, and contracts - payment is approved by Accounts Payable dept OK-To-Pay ERP ERP 14 © 2013 Ariba, Inc. All rights reserved.
- 15. #AribaLIVE Agenda • Executive Summary • Why do we need Collaborative Commerce? • What’s the Value Proposition? • Customer Success Stories • Peek into Roadmap 15 © 2013 Ariba, Inc. All rights reserved.
- 16. #AribaLIVE Why Ariba® Collaborative Commerce? Key value proposition ① Control the most spend – ‘More spend under management’ • “Percent spend under management: BIC: 88%, Ariba 99%”- Aberdeen Group compared with fully adopted Ariba solution suite; Ariba Benchmarking, Aug 08 ② Casual-user friendly / quick adoption ③ Manage any kind of service, Manage goods and services By managing more categories including goods and any service, Spend managed is increased. Average services spend in an organization 20- 80%. ④ Reduce paper, reduce problem invoices and improve invoice processing cycle times ⑤ More effective collaboration via the world’s largest Business Network SAPorOtherProcurementCustomers Value derived ① Enable more suppliers with catalogs, PO’s and e- Invoicing quickly through the Ariba Network ② Achieve better user adoption with user friendly interface Gartner awarded Ariba an "Excellent" rating for ease-of-use.* Ariba has intelligent fuzzy search, parametric refinement along with side-by-side comparisons in a single user interface ③ Manage more spend for increased savings Indirect, Direct, MRO, Complex/Services ④ Create a touchless invoice process, with the Ariba Network “Smart invoicing” ⑤ SaaS solution achieves payback in the first 12 months ⑥ Proactive compliance with Contracts ⑦ Faster processing allows better cash and discount management * Critical Capabilities for Best-of-Breed E-Procurement Vendors, June 2009
- 17. #AribaLIVE Ariba® Collaborative Commerce: Customer Proof Points Competitive Differentiators• Quick Catalog Enablement: Disney - Before: 2-4 weeks, After: 5 business days • Up-to-Date Content: Disney – Before: 3-7 days, After: 1 day • Catalog Accuracy: Disney – Before: 95%, After: 99%+ • Solution Adoption: Carlsberg – 15% increase in solution adoption • Invoice/Payment processing: Carlsberg – 30% improvement • Invoice Matching: Alcoa – 99.99% first time match rate of POs to invoices • Paper Invoice Reduction: Alcoa - 56% reduction in paper invoice volume in North America
- 18. #AribaLIVE Agenda • Executive Summary • Why do we need Collaborative Commerce? • What’s the Value Proposition? • Customer Success Stories • Peek into Roadmap 18 © 2013 Ariba, Inc. All rights reserved.
- 19. #AribaLIVE Collaborative Commerce for use with SAP® Carlsberg A/S © 2013 Ariba, Inc. All rights reserved.19 • Catalog Setup Using the Network • 15% increase in solution adoption beyond where company could get with an ERP-centric solution • 30% improvement in Invoice/Payment processing • 30% improvement in response times and service level from IT thanks to a simpler solution design and footprint • Using Ariba Procurement Content in 13 countries Company Carlsberg A/S Profile One of the largest global beer companies Solution Ariba Collaborative CommerceTM for use with SAP Challenges Solutions Results • Multi-year ERP migration to a single instance of SAP – crowding out opportunity to quickly capture opportunities in the supply chain without an additional partner • Procurement function was set-up as an independent business with its own P&L – needed a best-in-class solution to ensure success • Organization spread out globally, leading to lack of enforcement of company agreements • Incorporate new companies from acquisitions • Ariba Procurement Content set up and connected to SAP core ERP system and SAP SRM 7.0 version – Ariba catalogs faster and easier to use than SAP’s • Support major project to get suppliers and catalogs enabled • Extensive use of Catalog views in scope (filtered views) to use fewer catalogs but display global agreements appropriately to users groups, business unit, or geography
- 20. #AribaLIVE Collaborative Commerce for use with SAP® Case Study: Lexmark Ariba P2P + SAP © 2013 Ariba, Inc. All rights reserved.20 • Best- in-class capabilities that delivered 100% spend - process compliance • Seamless transition - system functioning as designed • Catalogs expanding globally, eliminating rogue processes • Supplier records reduced by 75% • Optimized global shared service centers 20 Company Lexmark International, Inc. Profile A leader in developing, manufacturing and supplying printing and imaging solutions for offices and homes Solution Ariba Collaborative CommerceTM for use with SAP Ariba Procure-to-Pay Ariba Network Challenges Solutions Results • Movement to shared service centers dictated need for global processes • Change management and high costs associated with training, maintenance and support • Ariba Collaborative CommerceTM for use with SAP • Ariba Procure-to-Pay http://www.youtube.com/watch?v=s2D26Xp1gyA&feature=plcp Always validate customer satisfaction prior to referencing their story
- 21. #AribaLIVE Walt Disney © 2013 Ariba, Inc. All rights reserved.21 • Ease of use • Rapid user adoption • Increased catalog performance measured and sustained post deployment • Supplier collaboration • Decreased technical support resource requirements • Improved catalog maintenance cycle times • Increased stakeholder demand for new supplier catalog 2121 Company The Walt Disney Company Limited Profile A leading diversified international family entertainment and media enterprise with four business segments: media networks, park and resorts, studio entertainment and consumer products Solution • Collaborative CommerceTM for Procurement • Ariba sourcing solutions • Ariba spend visibility solutions Challenges Solutions Results • Lack of functional innovation • Support requirements growing faster than resource availability • Legacy business rules that hindered efficient catalog management • Manual processes • Desired functional improvements deemed high risk and cost prohibitive to develop on the SAP platform • Deployed Collaborative CommerceTM for Procurement • Deployed Ariba Spend Visibility • Deployed Ariba Sourcing - Shay Conway, Disney Enterprise Manager for Procure to Pay “Focus on the user experience and results will follow.” Collaborative Commerce for Procurement® Not for use outside Ariba - this slide is for internal training purposes only
- 22. #AribaLIVE Collaborative Commerce for Procurement 22 RockTenn © 2013 Ariba, Inc. All rights reserved.22 Company RockTenn Profile Leading producer of paperboard, containerboard and consumer-corrugated packaging products Solution • Collaborative CommerceTM for Procurement • Ariba Invoice Conversion Service (ICS) Challenges Solutions Results • Need to improve collaboration with suppliers around orders generated from JD Edwards system • Decentralized AP processing structure contributed to inefficient, costly invoice processing • Too many invoice errors • Inability to identify suppliers that were consistently submitting problem invoices • Deploy Collaborative CommerceTM for JDEdwards solution to enable real-time supplier collaboration, smart invoicing to streamline processing and eliminate exceptions • Ariba Invoice Conversion Service (ICS) for automating the processing of paper invoices • Improved control over invoice capture and dramatically reduced invoice exceptions • Enabled movement of suppliers to a fully electronic invoice delivery model • Transformed AP function by emphasizing data analysis and reporting in place of processing paper invoices • Laid foundation for expanding early payment discounts capture Not for use outside Ariba - this slide is for internal training purposes only
- 23. #AribaLIVE Collaborative Commerce for Procurement® © 2010 Ariba, Inc. All rights reserved. Albemarle © 2013 Ariba, Inc. All rights reserved.23 • Improved requisitioning – approval processes • Centralized purchasing in U.S. & EU • Daily/weekly/monthly visibility into MRO spend • Historical reporting of volume and pricing trends of specific MRO materials • $3M in negotiated procurement savings Higher negotiated discounts Enhanced discount capture from improved spend visibility Better spend control driven by higher levels of compliance to contracts and greater reliance on corporate standard catalog items Company Leading Global Specialty Chemicals Company Profile Leading specialty chemical company serving customers in over 100 countries Solution Ariba Collaborative CommerceTM for Procurement Challenges Solutions Results • Indirect purchasing was 100% text-based requisitioning in SAP • Limited spend visibility – too many suppliers to manage • Savings lost from inconsistent pricing from suppliers • Purchasing lost leverage with no clear insight into volume and price of spend • Strategic purchasing took a back seat to transactional overload • Ariba Procurement Content to ensure compliance with current pricing and preferred suppliers • Ariba Network to automate PO delivery and enable electronic invoice processing • Ariba Collaborative Commerce solution for extending the business process driven by SAP SRM beyond the four walls of the enterprise to the extended supplier trading community Not for use outside Ariba - this slide is for internal training purposes only
- 24. #AribaLIVE Agenda • Executive Summary • Why do we need Collaborative Commerce? • What’s the Value Proposition? • Customer Success Stories • Peek into Roadmap 24 © 2013 Ariba, Inc. All rights reserved.
- 25. #AribaLIVE 13s + Roadmap • APC New Catalog Architecture Advanced Contract Integration Advanced Catalog Load Advanced Catalog Filtering Shopping templates Catalog Data Pull • Invoicing Service Invoicing New model for accounting defaults (TBD) Integrated B2B electronic payments 25 © 2013 Ariba, Inc. All rights reserved.
- 26. #AribaLIVE BUYERS SELLERS Ariba: Solving the Collaboration Conundrum © 2013 Ariba, Inc. All rights reserved.26 For the World’s Businesses – Including 90% of the Fortune 100 More than 800,000 connected companies collaborating on more than €314 billion of commerce in over 140 countries
- 28. Questions?
Editor's Notes
- #4: 1st Box: e.g. focused marketing campaigns, sales tools, customer segments (like PCN, LE, SME, specific industries, …)Include regional specific data (revenue)
- #6: In a recent CFO study, more than half of them are increasing cost savings goalsMany of these target more than 5% savingsYet only 7% of Finance Execs feel Procurement brings good ideas to the table
- #10: EaseReachSpeedSustainabilityDiscovery
- #11: Contrast core ERP vs Ariba Collaborative Commerce capabilitiesDiscuss scope of Ariba collaborative commerce, for buyers-suppliersValue from Ariba
- #12: Focus on APCDiscuss capabilities/benefitsSupport with solution screenshots
- #13: Usability is about having something intuitive that is automatically tied to the right suppliers, simple or complex contracts, and terms that will ultimately prevent the buyer from having to go back to modify the order or AP from having to fix pricing that was wrong in the first place.
- #14: Focus on PO and Invoice AutomationDiscuss capabilities and benefits
- #20: Win against Hubwoo and IBXWinning factor was number of required catalogs….and Ariba’s ease of use vs. SAP alternative.Winning factor was the combined incremental value of Ariba Catalogs, Procurement Content, and Contracts and Sourcing tools combinedWinning factor was Ariba’s large existing Supplier Network, and Ariba’s expertise in rapid and cost effective Supplier EnablementWinning factor was Ariba’s services-driven model – Ariba will do the Supplier enablement, not expect Carlsberg employees to figure it out….(like in SAP experience).Headquarter in Copenhagen, Denmark Ariba customer since Feb 2009 (sourcing/contracts)
- #27: And that’s where we at Ariba come in. Ariba is the leader in cloud-based procurement and invoice solutions and business networks.The problem we solve is quite basic. Simply put, we eliminate all the hassles, paper, phone calls, and other manual or disjointed activities your companies do each day to find new suppliers or business opportunities, place of manage orders, collaborate with customers, suppliers, and other partners…or just get paid.We solve this problem in two ways:We provide the industry’s only complete and integrated cloud source-to-settle platform. >5 million users access our applications to source new suppliers, manage procurement operations, and streamline invoicing and payment – all without the need to install, maintain, or upgrade software or hardware.The second part of our portfolio is even more compelling. Ariba offers the world’s largest and most global business commerce network – helping nearly 1 million companies around the world discover, connect, and collaborate more efficiently than ever before. We simplify and eliminate the burdens of business-to-business connectivity, by providing customers with a single, standard integration pipeline to manage all their purchase, invoice, and payment transactions with all of their trading partners – regardless of whether you are using Ariba in the Cloud, SAP On Premise, or Oracle, PeopleSoft, SAP, Maximo, you-name-it. The Network includes a host of services to help simplify and streamline the commerce process for both buyers and suppliers – from discovering and qualifying new partners and business opportunities; to automating key purchase, invoice, and payment transactions; to accessing community-based insights and services that are only available in a networked model – like dynamic discounting, receivables financing, and community-based ratings and market data.