Transcript Slide 1
What’s New, What’s Coming and Best Practices – Spend Visibility, Sourcing, Contract Management and Supplier Information and Performance Management
Steve Markle Sr. Director Solutions Management
UC
© 2011 Ariba, Inc. All rights reserved.
Track Overview
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Monday Steve Upstream 3:15 - 4:30 Jeremy Supplier Management 4:45 - 6:00
• • •
Tuesday Manny Spend Visibility 1:00 - 2:15 Dan Contract Management - 2:45 - 4:00 Dave Sourcing - 4:30 5:45
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© 2011 Ariba, Inc. All rights reserved.
Ariba Snapshot
Ariba: Leading Market Productivity 3
• • • • •
SaaS Spend Management Supplier Network Collaborative Business Commerce Procurement
1996 2010 and beyond
The leading provider of Collaborative Business Commerce solutions $360M revenues in FY 2010 4.5M+ paying subscribers from >25,000 global companies
Incl. 98% of the Fortune 100
The World’s Largest Web-based global trading community
Incl. >340,000 buyers, sellers, service providers
Global services and expertise
© 2011 Ariba, Inc. All rights reserved.
The Business Commerce Problem…
Investments Inefficiencies Remain Between Companies Buyer Source ERP or Niche Procure ERP Pay
Wasted time and resource Lost negotiation history Poor visibility into compliance Manual ad hoc collaboration Delayed payment; Cash “mis-mgmt” Limited visibility and risk
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+ + +
Sell Fulfill Invoice & Collect CRM Order Mgmt.
ERP Average number of trading partners:
(Source: Forbes Global 2000)
Transactions completed manually:
(Source: Celent Communications)
134,500 80% Paper-based invoices and payments:
(Aite Group: Global Cash Management: Going Green. 2009)
85%
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Costs of ineffective collaboration:
(Source: Basex Research- “Information Overload” Feb, 2008)
$650 Billion
Inefficient Commerce Collaboration is Costing G2000 $338 Billion (Source: Ariba Benchmarking)
© 2011 Ariba, Inc. All rights reserved.
Seller
We Have Already Started Solving Them…
• • •
Be the world’s business commerce network “Consumerize” business commerce Acquire sellers and buyers in mass
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10K, 2M, 1T
Sellers Buyers
Unified Seller Experience Discovery Self Service AMEX •
Market and sell to sellers
Quadrem Broader Markets •
Expand sales alliances and channels
SMS Divest Ariba Exchange Buyer Seller Matching Alliances Service Proc SFDC Cloud Mgmt
Collaborations
• • •
Develop more ways for sellers, buyers, and partners to collaborate Expand partner ecosystem and open network Transition to scalable, community-based operating model
© 2011 Ariba, Inc. All rights reserved.
•
Interesting Facts Looking Back Did you know?
Nearly all Procuri customers have completed migration 521 Sourcing OnD 268 Contract Mgt OnD 171 Supplier Mgt OnD 146 Spend Vis 43 Savings Pipeline and Tracking • •
Redefined Sourcing to be much more “Collaborative” Seeing traction in joint partner solutions
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© 2011 Ariba, Inc. All rights reserved.
Then
Consumer Technology Trends Are Changing the Way Business Is Done
Networking Communication Mobile Computing Matching Services Access to Content Now 7
© 2011 Ariba, Inc. All rights reserved.
• • • • Broader access to data Social networking going mainstream Increased collaboration between companies Information provided contextually
Ariba Continues to Revolutionize the Way Sourcing Customers Go to Market…
• • •
eSourcing
Automation eAuctions Pipeline management • • •
Strategic Sourcing
Broader spend coverage Strategic orientation Best value business intelligence • • •
Collaborative Sourcing
Proactive notice of new sources of supply Peer Collaboration on best practices Networked community – supplier driven advice
8 Manual Sourcing
• • • Paper and spreadsheets Ad hoc projects No processes
© 2011 Ariba, Inc. All rights reserved.
Benefits
• Sustainable savings • Robust project pipeline • Enhanced value
Next generation Sourcing
…with an Industry-pioneering Approach
Using world’s leading Ariba Sourcing Solution Ariba Discovery and eIntros Innovations included as part of subscription to Ariba Sourcing + 9
© 2011 Ariba, Inc. All rights reserved.
Partner Ecosystem Accelerates Innovation
• •
Important note:
We will create a partner ecosystem to deliver more capabilities faster
Examples:
IBM Lotus Live (Discovery collaboration) Hubspan (integration) The Receivables Exchange (receivables financing) Demica (supply chain financing) Descartes (logistics) – Logistics visibility and planning. Network to network interoperability.
D&B (intelligence) – Financial risks scores to further trading partner qualification/confidence on Ariba Discovery
© 2011 Ariba, Inc. All rights reserved.
Partnering: Ariba Contract Management
11 eSignature
• Tightly integrated with DocuSign, the leading electronic contract execution (ECE) provider • Signature/initial block • Sequence • Assemble Signature Task & Route • Sign • Leverages PDF generation/concatenation
Salesforce.com integration
• First “Commerce Connector” • OOTB sample implementation/SOW of SFA to Ariba Contract Mgt On-Demand •
Create Workspace
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Edit Header of Workspace
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Push Terms file from Workspace
• Ariba Contracts for Force.com
Looking Forward
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© 2011 Ariba, Inc. All rights reserved.
Disciplined Innovation Approach
Combining all customer experience into the journey Advisory councils and user groups Feature surveys On-site customer visits connect.ariba.com
Functionality and usability testing On-Demand Releases
Common Code Line
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© 2011 Ariba, Inc. All rights reserved.
9s5 Early access programs and design partnerships 10s1 10s2 Future Releases
Ariba’s New Release Model
Guiding Principles
Decouple App releases
• Allows focused engineering execution by solution area.
Independent Platform Development
• Minimizes quality risk of simultaneously changing all layers in the architecture
Focus on Readiness
• Explicit focus on readiness tailored by solution
Quarterly Drumbeat
• Predictable schedule for bringing innovation to the market
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© 2011 Ariba, Inc. All rights reserved.
Ariba’s Future Release Cadence
Improving Predictability, Quality and Innovation Rate
“Cloud Cadence”
1Q11 2011 (calendar year) 2Q11 3Q11 4Q11 1Q12 2012 2Q12 3Q12 4Q12 1Q13 2013 2Q13 3Q13 4Q13
11s1 (Spend Vis, Supplier Mngmt, Sourcing, Contract) 11s2 (Procurement & Ariba Invoice Pro ) 12s1 (Spend Vis, Supplier Mngmt, Sourcing, Contract) 13s1 (Spend Vis, Supplier Mngmt, Sourcing Contract) 12s2 (Procurement & Ariba Invoice Pro) 13s2 (Procurement & Ariba Invoice Pro) 11s3 (Ariba Network) 12s3 (Ariba Network) 13s3 (Ariba Network) 14s1 14s2 14s3
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© 2011 Ariba, Inc. All rights reserved.
• • • •
Ariba Solutions Innovation Focus
Extend leadership in spend management
Increase the usability and adoption of Ariba Solutions Provide easier ways to manage cash and faster access to liquidity
Expand participation of inter-enterprise collaboration
Increase the number of business opportunities Simplify Supplier’s ability to do business across companies Reduce the number of methods which you use to connect to the cloud to cut cost and improve efficiency Stimulate organic growth without Ariba involvement
Converge integrated, network-centric offerings
Centralize the way you do business across companies Increase the number of reasons for Suppliers to participate in the Cloud Provide centralized supplier information for distribution and collection
Simplify on-boarding of participants and reduce cycle time
Reduce administration, configuration, and deployment costs with self-service capabilities Faster and easier to do business with Ariba Partners using a partner framework Reduce the cycle time for businesses to on-board their partners into the Cloud
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© 2011 Ariba, Inc. All rights reserved.
Strategic Sourcing and Contract Management – Target Problems
Savings Identification & Sourcing Execution Addresses: Spend Visibility, Sourcing, Savings Pipeline and Tracking Advantages of leveraging Discovery in the sourcing process How these feed sourcing pipeline for improved execution How Ariba Savings Identification and Execution differentiates us in the market Collaborative Sourcing and Supplier Mgt Addresses: Sourcing & Supplier Mgt Redefinition of Sourcing to Collaborative Sourcing and what it means to enterprises The role of Discovery and Information Management in the sourcing process Operationalize best value agreements through Contract Management automation Collaborative Supplier Management to manage performance and risk Contract Management and Compliance Addresses: Contract Management and why it is at the heart of Collaborative Business commerce How it tightly integrates with other critical business commerce processes to create and operationalize best value agreements Role of Contract Management in mitigating supply chain risk
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© 2011 Ariba, Inc. All rights reserved.
What’s Coming in the Next Release: 11s1
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© 2011 Ariba, Inc. All rights reserved.
What’s coming in Ariba’s 11s1 Release?
FEATURE Enhanced Multi-Fact Reporting Ariba Reporting for All Solutions
• • • • • • •
BENEFITS True join of data across fact tables based on defined key fields. Ability to generate better operational and detail level reports.
Provides ability to specify on single report detailed data fields and correct aggregation of joined detail from multiple fact tables.
Join data from three facts tables on single report.
Left outer fact table join support (purchase orders without invoice payments).
Creation of user-defined formulas using measure fields from multiple fact tables.
New UI to support creation of multi-fact reports.
DESCRIPTION Enhanced multi-fact reporting enables you to create reports that include data from up to three facts without mapping common dimension fields for aggregation.
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EXAMPLES Track actual invoice spend against purchase orders.
Compare receipt quantity to purchase order quantity.
Show project header and project task data on the same report.
Track savings form header data with savings form detail and project data.
Report on sourcing event data with project header and task details.
Track approvers and task due dates by project type.
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© 2011 Ariba, Inc. All rights reserved.
What’s coming in Ariba’s 11s1 Release?
Upstream Platform dForms FEATURE Task and dForm Document Process Improvements DESCRIPTION This set of features allows more control over the processing of dForms in projects. For example, you can force an approval before Publish, set a prototype to be used for ad hoc form creation, control whether or not Draft versions of forms are sent to reporting, and control how many forms of a given type can be created per workspace.
• • •
BENEFITS Much better control of when data is available for reports.
Guided and forced approvals on dForms.
The ability to define and templatize, in advance, the forms allowable for ad hoc creation in a project.
EXAMPLES The ability to force approvals before a dForm in a Supplier Workspace can be Published, guide you to the approval that needs to be done, and make sure that the data from that form is not reportable until that form gets published.
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© 2011 Ariba, Inc. All rights reserved.
What’s coming in Ariba’s 11s1 Release?
Ariba Spend Visibility FEATURE Supplier Enrichment Information Enhancements DESCRIPTION Spend Visibility Field Updates will allow Sales Revenue and Employee Count fields to be more useful in aggregate reporting by making them ranges of values instead of showing the specific number. In addition, the Credit Rating field will be replaced with payment trends, which is content from D&B and provides trending information on when suppliers are making payments to their creditors.
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BENEFITS Allows users to filter, search, and report on suppliers that fall into specific ranges of Sales Revenue and Employee Count fields. Payment Trend data provides better accuracy around credit information though insight into how suppliers are paying their creditors.
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Examples Employee count will be aggregated into 5 range groups such as 501-1000 and 1,001-5,000.
Sales revenue will be aggregated into 10 range groups such as $1M to $5M USD and $10M to $50M USD.
Payment Trends will be aggregated into 11 categories such as 15 days late, 30 days late, and Prompt.
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© 2011 Ariba, Inc. All rights reserved.
What’s coming in Ariba’s 11s1 Release?
Ariba Sourcing FEATURE Savings Form Allocation Improvements DESCRIPTION Improves the usability of Savings Forms by automating the breakdown of savings across commodity, regions, departments and custom created dimensions. Also, adds the ability for details to be edited in excel and imported back into the savings form.
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BENEFITS Allows users to get more value out of Savings Forms because they can allocate savings at a more refined level in a much more efficient manner. Also, adding support for custom vector fields enables organizations to extend the forms to accommodate custom dimensions that they can allocate savings across.
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EXAMPLES Support for custom vector fields Ability to automatically distribute savings detail across time periods and dimensions like Commodity, Regions, Departments, and Custom Vector fields Excel export and import of allocation details New Savings Allocation Summary table 22
© 2011 Ariba, Inc. All rights reserved.
What’s coming in Ariba’s 11s1 Release?
Ariba Sourcing FEATURE Enhanced Integration with Ariba Discovery*
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BENEFITS Buyers can spend less time and effort discovering new suppliers to increase the competitive nature of their Sourcing event.
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Buyers can conduct posts within their Sourcing events making them more effective and efficient in a solution they are already familiar with.
DESCRIPTION Increased the value of Discovery for Ariba Sourcing buyers by making it easier to find, evaluate, and include Discovery suppliers as a part of their Sourcing events.
• • •
EXAMPLES Moved where buyers are prompted to create a Discovery Post, earlier in the event build process In event monitoring of Discovery posts and supplier responses New ability for suppliers and buyers to network based upon current sourcing activity, eIntros
* Delivered prior to 11s1
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© 2011 Ariba, Inc. All rights reserved.
Ariba Solution Roadmap Statement of Direction for all Solutions
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© 2011 Ariba, Inc. All rights reserved.
Ariba Visibility
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TODAY: CURRENT FEATURES 3-Dimensional visibility for true spend intelligence Consolidated data from multiple systems, source types and categories Flexible data schema to address industry-specific needs & fact customization Extensive, custom services to drive ROI and adoption Pre-packaged best-practice reports and customized taxonomies
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STATEMENT OF DIRECTION
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Embed all critical information in Spend Visibility Expert services Improve usability Integrate data across suite Continue enhancing enrichment Cross Business Commerce Reporting
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BENEFITS
Accelerated savings via improved sourcing decisions and contract terms Focus on efficient analysis and planning, not gathering and processing data Reduced maverick spending through effective monitoring Greater intelligence delivered by internal and external market visibility
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© 2011 Ariba, Inc. All rights reserved.
Ariba Sourcing
TODAY: CURRENT FEATURES
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RFX Creation and Management Sourcing Optimization, Analysis and Reporting Supplier Discovery using Ariba Supplier Network Online and offline process, project workflow and knowledge mgt Global, Multi-Lingual and Multi-Currency Capabilities 3 rd Party Integration, Community Exchange and Strategic User Access Savings Pipeline and Tracking STATEMENT OF DIRECTION
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Ubiquitous adoption of best practices and processes Sophisticated optimization: Large line item volumes Complement forecasting, budgeting, and planning systems Leverage user network for knowledge gain-share via Online community, Template exchange, eIntros 26
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BENEFITS Accelerates bottom-line results and rapid total cost savings through:
Efficient negotiation of lowest-total-cost and best-value supply relationships Integrated Supplier Discovery drives additional savings through improved bid competitiveness
Sustainable organizational knowledge through embedded in-context intelligence Improved Sourcing Program visibility and compliance Collaboration with commerce partners and community
© 2011 Ariba, Inc. All rights reserved.
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Ariba Contract Management
• • • • • • • • • • • • • • • •
TODAY: CURRENT FEATURES Addresses all aspects of Contract Management Compliance
MS Word integration and 3rd-party paper mgt; Electronic signatures with PDF gen
Contract risk and performance management
Third party integration of data and process flows via Webservices (CRM, ERP) Advanced and self-service workflows, permissions, and approvals Pre-approved clause libraries and contract template
Ad hoc and advanced reporting Capture offline emails and Business contacts STATEMENT OF DIRECTION
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Enterprise system of record with high fidelity data export/import: Legal, Finance Procurement, Sales Channel
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Full contract and forms process and sophisticated workflow automation Integrated best-practice expertise Compliance mgt with External Systems Streamlined and mobile UI for the casual/field users BENEFITS
Enhanced intelligence visibility and control of all contracts and amendments (buy and sell side)
Improved supplier, operational, and regulatory compliance Improved negotiation effectiveness Realization of negotiated cost savings
Increased revenue through optimized value with customers Efficiency through Faster contracting cycle times and external integration
Improved customer and supplier performance
Collaboration through communications and community support
© 2011 Ariba, Inc. All rights reserved.
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Ariba Supplier Management
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TODAY: CURRENT FEATURES
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Information Management
Supplier Self-registration
Collaborative Supplier Process Lifecycle
Management with self service approval flows and one to many template management
Performance Management
Online surveys with reminders and Scorecards
Advanced 360-degree supplier reporting
including custom fact for 3 rd party info Actionable alerts enable proactive monitoring of performance issues Supply Risk Assessment Services – Identify, manage and mitigate Supply Risk
STATEMENT OF DIRECTION
• • • • • •
Integrate supplier info from 3 rd part sources, customers, Ariba experience and network Unify Ariba supplier information and data collection Customer/organization management 3rd Party supplier information validation One to Many Supplier Management Network-centric supplier information management Vendor master integration and Supplier Information Enrichment BENEFITS Collaborative and automated corrective action planning and execution
Mitigated risk by proactively monitoring supplier certifications and performance Efficient supplier assessment and qualification through community access Scorecard supplier performance on quantitative and qualitative measures
Intelligence through 360-degree and up-to-date view of all suppliers Accurate diversity certification
© 2011 Ariba, Inc. All rights reserved.
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Typical Business Requirements for Supplier Management
“Supplier Management” is multi- faceted and touches many aspects of Business Commerce Registration & On-boarding Process Supplier Portals Supplier Discovery Vendor Master Management Supplier Management Risk Management Performance Management Diversity/Green/ Corporate Responsibility
• • • • • Supplier Information Management that unifies platform, process and supplier profiles across the company and keeps it current, complete and correct.
Highly usable web-based portal for suppliers to register and manage information collaboratively with customers
Supplier Performance Management
capabilities including Process Workflow and approvals, Surveys and scorecards, flexible role based dashboards and customizable reports A robust technology platform that seamlessly integrates in-context Supplier info such as Parentage, Financials, Diversity and Sustainability to manage and mitigate
Supply Risk
A unified Supplier Record merging data and process flows to third party systems and data sources
© 2011 Ariba, Inc. All rights reserved.
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Supplier
Buyer Info Collection & Mgt
Maximize the alignment with industry peers and eliminate waste The Problem Suppliers Buyers The Solution Suppliers Buyers
Common Approach & System
The benefits
• • • • • Collect information once and sharing it several fold Enhanced credibility as externally recognized set of standards Maximize impact by aligning efforts to encourage buyer & supplier participation Use a governance framework to ensure quality, standards, & fairness Provides the catalyst to accumulate & share info, knowledge and best practices with others
• • • • • •
Solution Definition: Problem Statement
Customer Problems (Buyer and Seller) Supplier Experience
Disconnect supplier user experience creates concerns by suppliers and buyers Registration and ramp of suppliers different Navigation problem for suppliers to go in and out of customer domains Usability problem for suppliers to do reporting, dash boarding, workflow across customer domains Usability problem for suppliers when they cross Ariba module domains Usability barrier for supplier users in same organizations to collaborate, share information
Supplier Data
Many sources for supplier profile data creates confusion, waste of time, data synch issues, and re-entry of data in multiple Ariba systems Our ability to define different supplier data types and business organization attributes is limited and not coordinated across solutions Business Contacts are different and may be based on how they use Ariba systems
Integration
Integration with buyer and seller is reported issues and not consistent from product to product Multiple Integration paths when customer buys upstream and downstream Different integration technologies creates IT problems during sales
Many Supplier Personas across product
Actual targeted groups of supplier very different but can converge at some level, causing duplication of functionality
Buyer experience
Many locations buyers
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© 2011 Ariba, Inc. All rights reserved.
Strategic Sourcing and Contract Mgt.
Ariba “Upstream”
Master Data Master Data
Custom Facts
Project * RFx Auction Event Award Contract Users / Suppliers Add Attachment Export Event results / Contract Terms Create/edit Workspace/dForm UOM’s/ Forex Rates Commodity Codes Regions/Depts Legacy Data for Analysis Create Event with Items / Suppliers / Rules
EAI / Middleware / Integration Toolkit
Send Contract Info 32 HR / ERP ERP / MRP
Customer
* Applies to Sourcing & SPM Projects and Contract & Supplier Workspaces
© 2011 Ariba, Inc. All rights reserved.
ERP / PLM / PDM / SRM / Legacy / Material Master eProcurement / Contract / Data warehouse Integration Toolkit or Open Protocol (CSV / HTTPS) Web Services (XML / SOAP)
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Open Webservices Vision
1.
2.
Every upstream object is accessible via a webservice call with CRUD action Ariba can create a soap message/outbound message which can contain data and metadata from objects in 1 3.
Robust exception management/error handling around 1 and 2
• • • • • • • • • • • •
Examples of 1 Read realm X for all projects/workspaces with this search criteria, and return ids, names Read project/workspace for ids, names and type of dForm,
• • • • • •
Examples of 2 Contract workspace send/post
© 2011 Ariba, Inc. All rights reserved.
• •
Forecasting Module Challenges Today Users can:
SV-Slice and dice historical spend with great ease and even see movement relative to indices Savings Tracker: Enter and track savings realization
However, unable to:
Project spend patterns into future Assess potential impact of various events (commodity spikes, planned price reductions, etc.) Track progress against forecasts Collaborate with divisional/financial planning
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© 2011 Ariba, Inc. All rights reserved.
Budget/Planning Process – Pain Points
Reiterate Forecast Budget Targets Bottoms-Up Budget/Plan Lock Budget Execute & Comply
• • • • • • • •
savings Overestimation of demand/volume Inflation Wage Rates Raw material price changes
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Too late to account for savings Missing compliance system Budget spent elsewhere Compare PR to Budget for approval Contracts not flexible on pricing terms Identified savings don’t go to the bottom line (spent by departments on new/more items) No mechanism to feedback already established budget No “Spend/Savings” planning system which ties Procurement, Finance and Divisions 35
© 2011 Ariba, Inc. All rights reserved.
Forecasting Module Vision
• • • • • • • •
Spend Forecasting for Planning and Estimation Part/SKU level and Hierarchy Multi-inputs (e.g. Vol, unit price) Decision support on any data at any time in the sourcing process Ex/internal integration (eg. Commodity index, PLM systems) Process workflow for multiple stakeholder adjustments Dynamic generation of pipeline, project creation, data input/course corrections and savings tracking Buyer workbench proactively pooling demand Rich analysis of planned vs. actual spend 36
© 2011 Ariba, Inc. All rights reserved.
Forecasting Module Vision – Customers Enabled to:
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Consolidate forecast data in one location Integrate with historical spend and savings plans
More accurately forecast based on accurate historical data Enable effective procurement/finance/divisional coordination and planning
Reduce Costs Manage Risk
• • • Capture savings Coordinate planning & sourcing Leverage better forecasts to increase sourcing leverage • • • Assess exposure to cost drivers Coordinate financial hedging Assess global / regional risk
Increased Levels & Predictability of Profits 37
© 2011 Ariba, Inc. All rights reserved.
• • • •
How to Get Involved and Influence Direction
Get involved on ariba.exchange.com
In addition to User Groups, other forums include venues such as our Advisory Council, customer surveys, beta programs and design partnerships, and functionality and usability testing Get involved in the early access program before each release Volunteer to provide feedback to the Solution Manager for your product 38
© 2011 Ariba, Inc. All rights reserved.
Questions
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© 2011 Ariba, Inc. All rights reserved.
“Safe Harbor” and Confidential Information Statement
This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.
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© 2011 Ariba, Inc. All rights reserved.
What’s New, What’s Coming and Best Practices – Spend Visibility, Sourcing, Contract Management and Supplier Information and Performance Management
Steve Markle Sr. Director Solutions Management
UC
© 2011 Ariba, Inc. All rights reserved.