Transcript Slide 1

Ariba Procurement Solutions
What's New, What's Coming, Best Practices
Chandra Yeleshwarapu and Rick Collison
UC
© 2011 Ariba, Inc. All rights reserved.
Agenda
•
Procurement State of the Union

What’s New
–
–
–

Procure to Pay and Procure to Order
Procurement Content
Services Procurement
What’s Coming
Product Roadmap
– Vision
–
•
2
Summary and Q&A
© 2011 Ariba, Inc. All rights reserved.
Economy Scorecard
Rate of change is increasing
3
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Responding to Changing Market
CPO Priority: Focus on spend management outcomes
Top Drivers
4
Top Priorities
Risk and Compliance
Conserve Cash
1
Renegotiate Contracts
1
Cash flow focus
2
Supply Risk
2
Tight budgets
3
Spend Mgmt Effectiveness
3
Slower Investment
© 2011 Ariba, Inc. All rights reserved.
The CPO Situation
Drive more savings
Normal channels have less to give
You are here
What are your top business drivers in 2011?
• Ariba / ISM (Institute for Supply Management)
Survey conducted February 23, 2011
5
© 2011 Ariba, Inc. All rights reserved.
“Can you give me
some shade?”
The Business Commerce Problem…
Investments Inefficiencies Remain Between Companies
ERP or Niche
Source
Buyer
Wasted
time and
resource
Lost
negotiation
history
ERP
Procure
Poor
visibility into
compliance
Limited
visibility
and risk
Invoice &
Collect
Order Mgmt.
ERP
+
Average number of trading partners: 134,500
+
Transactions completed manually: 80%
+
•
(Source: Forbes Global 2000)
(Source: Celent Communications)
Paper-based invoices and payments: 85%
(Aite Group: Global Cash Management: Going Green. 2009)
Costs of ineffective collaboration: $650 Billion
(Source: Basex Research- “Information Overload” Feb, 2008)

6
Delayed
payment;
Cash
“mis-mgmt”
Fulfill
Sell
CRM
Manual
ad hoc
collaboration
Pay
Inefficient Commerce Collaboration is Costing G2000 $338 Billion
(Source: Ariba Benchmarking)
© 2011 Ariba, Inc. All rights reserved.
Seller
The Impact on Procurement
Business Impact
Challenges
•
•
•
Poor control of spend
Poor visibility into what
is being spent and with
which vendor
Lack of standardization across
business units and geographies
•
•
•
•
•
•
7
© 2011 Ariba, Inc. All rights reserved.
High maverick spend
Spend not compliant with
negotiated terms
Poor visibility and management
by post-spend auditing
Failure to meet commitments
increases risks and costs
Multiple contracts and terms
with the same vendors
Duplicate processes and
global disparities
Efficiency Prize in Procurement
What are your targets for improving P2P processing
costs within the next two years:
Source: Defining and expanding the value proposition of P2P survey, ISM, Forrester, Ariba;
February 2011; relative population sample.
8
© 2011 Ariba, Inc. All rights reserved.
The Approach: Holistic
Better processes
and automation
What is your top Procurement initiative for 2011?
Multi-year
strategic plan
with
enterprise
goals
Internal and
external
collaboration
Compliance
Source: Defining and expanding the value proposition of P2P survey, ISM, Forrester, Ariba;
February 2011. Entire registrant population of 1,137.
9
© 2011 Ariba, Inc. All rights reserved.
Training &
investment
Procurement Business Process
e-Procurement
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© 2011 Ariba, Inc. All rights reserved.
Solution Ariba Commerce Cloud
BUY
MANAGE
CASH
SELL
TECHNOLOGY
Applications
Spend Mgmt. | Collaborative Finance Mgmt. | Sales Acceleration Mgmt.
Platform
Analytics | Security | Performance | Integration | Mobility
COMMUNITY
Peer Collaboration
World’s Largest Trading Network
Partner Ecosystem
CAPABILITIES
Domain Expertise
11
© 2011 Ariba, Inc. All rights reserved.
Value Enablement
Execution Support
Ariba Procurement: Compliance,
Collaboration, Visibility
Supplier Network
Source
Contract
Ordering
Approval
Fulfillment
Receive
Reconcile
Control goods, services, across all ERP’s:
Require ERP receipt or payment:
Compliant ERP Ordering:
Automate AP:
Up to 80% of spend is Services:
Why It
Matters:
•
•
•
•
•
Recapture Savings Leakage: Supplier, Price, Term
Improved Processes and Visibility
Lower resource needs: short- and long-term across all ERPs
Flexible many-to-many networking = long-term system efficiency
Allows for strategic cash management
• Proven value
12
© 2011 Ariba, Inc. All rights reserved.
Settle
Collaboration on the Network is the Key
“We feel the system is beneficial from the upfront control process. We also think
the system is very easy to use. It's intuitive and our users have been able to
adopt it quickly.”
–
Bob Fair, Director of Global Procurement Operations
McGraw Hill
Supplier
Supplier
Supplier
Supplier
 Any Buyer
Sourcer
 Any Supplier
 Any ERP
Buyer
Buyer
Mgr
Buyer
 Total Process Control
13
© 2011 Ariba, Inc. All rights reserved.
ERP
ERP
Comprehensive Spend Management
Service
Indirect
Catalog Management
Source to Procure
Supplier on Boarding
Time and Labor
Payments
Bids and Auction
Direct
Plan to Procure
Direct
Commodities & Options
14
© 2011 Ariba, Inc. All rights reserved.
Capacity Constraints & Sourcing Splits
Extended Enterprise – On Time Delivery
Best Practice - Procurement 2011
•
Process Efficiency


•
Spend Visibility

•
Control contract leakages and identify the savings
Supply Risk Management

15
Hyper Collaboration and Usability
Expand Spend Categories under process control
Use the Ariba Cloud Commerce, Expand spend
categories and implement across geographies
© 2011 Ariba, Inc. All rights reserved.
What’s New
UC
© 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
Early access programs
and design partnerships
Functionality and
usability testing
On-Demand Releases
Common Code Line
17
© 2011 Ariba, Inc. All rights reserved.
9s5
10s1
10s2
Future Releases
Thanks for Making Ariba the Leader
Ariba Procurement Leader
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© 2011 Ariba, Inc. All rights reserved.
What’s new in Procurement?
Theme – Process Efficiency and Usability
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Determine Account Type by Item Price
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Mass edit of Partial Items
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Respect User ship to and Deliver to in requisitions
Procurement
Content
•
•
SRM 7 Certification
Services
Procurement
•
Collaborative Requisitioning
Procure to Pay
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© 2011 Ariba, Inc. All rights reserved.
Denial by Approver in Parallel Chain
Support Flexfields in Receipt Import
Reporting - Accounting Contract facts
New Language support – Swedish, Dutch, Danish, Norwegian
Catalog Self Service
Determine Account Type by
Item Price
•
•
10s2 SP1, P2P, P2O
We support determining account type based on
commodity and the spend
This enhancement allows users to determine the
account type by price of the commodity
Example Requisition
Item per unit price = $10
Quantity = 500
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Account Type Policy
Account Type Policy
Spend ≤ $1,000  Expense Account
Spend > $1,000  Capex Account
Price ≤ $500  Expense Account
Price > $500  Capex Account
Since spend is $5000, it will be
Capex Account
Since price is $10, it will be
Expense Account
© 2011 Ariba, Inc. All rights reserved.
10s2 SP1, P2P, P2O
Denial by an Approver in Parallel Chain
•
•
•
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Earlier, even if Archie denied the requisition, Gene
could approve the requisition without knowing that
Archie had already denied it
The requisition was eventually denied
Now, the approver in the parallel chain cannot
approve this requisition
© 2011 Ariba, Inc. All rights reserved.
Catalog Self Service – 1 of 2
Description
Ability for buyer and supplier to manage catalogs in a self service mode
Features
•
•
•
•
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Complete self service in enabling and maintaining catalogs
Buyers
 Self service to set up catalog validation rules
 Support for supplier specific rules
Rule Engine
 Load catalog default rules
 Create, modify and save new rules
 Validate catalogs against the defined rules set
 Identify and display errors in catalog to both suppliers and buyers
 Communicate error status via email
Suppliers
 View and download catalog validation rules
 View and correct catalog errors
 Do catalog comparison
© 2011 Ariba, Inc. All rights reserved.
Catalog Self Service – 2 of 2
Description
Ability for the buyer and supplier to manage catalogs in a self service mode
Benefits
• Buyers
Reduce cycle time. Faster catalog enablement.
 Lower enablement \ maintenance costs by reducing manual steps
 Enabling more catalogs
Suppliers
 Reducing time and cost to enable catalogs
 Increased visibility and transparency
 Increasing catalog coverage > More transactions

•
Examples
•
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Loading catalogs with rules to check.
 Required fields filled in (Price, Classification Code, UOM, Lead Time
 Supplier specific check on (Classification code range 4312****, Lead
time < 10days & UOM = EA)
© 2011 Ariba, Inc. All rights reserved.
Catalog Self Service
New Process
Prepare CIF
Buyer
AN
Validate Data
Completeness
and Accuracy
Raw CIF
File
P2P
Buyer
Enriched
CIF File
Load CIF
Load CIF
Supplier
Supplier
GSO
Configure
Buyer Rules
Enriched
CIF File
GSO
GSO
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Enrich the
Data
© 2011 Ariba, Inc. All rights reserved.
Normalized
CIF File
Yes
Buyer
Normalize
Rules
Where? TBD
Raw CIF fFile
Pass?
No
Updated
CIF
Update CIF
Send Error
Messages
Error
Messages
Collaborative Requisitioning
•
•
Description

Features


•



Buyer can negotiation with supplier on any type of requisition,
X bids and a buy can be enforced
Suppliers no longer need to be on the AN to receive a Collaboration Request
Examples

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Extends collaboration to catalog and non catalog items (deployed on P2P, P2O, APC)
Can enforce X Bids and a Buy on any type of requisition (deployed on P2P, P2O, APC,
Services Procurement)
Quick Enablement Collaboration Request
Benefits

•
Ability for the buyer to collaborate with suppliers on all requisition types
Buyer has a standard catalog item (Widgets at $10 a unit) from Supplier XYZ. They can
collaborate with Supplier XYZ and 2 other suppliers on this item to see if the supplier
has the item in stock and to negotiate a lower price.
© 2011 Ariba, Inc. All rights reserved.
Procurement Track Overview
28
Sr. No
Title
Presenter
Time
1.
Collaborative Procurement
Cathal O’Sullivan
Monday April 11
4:45 to 6:00
2.
Ariba Procure to Pay and Procure to Order
Sybel Bevington
Tuesday April 12
1:30 to 2:45
3.
Ariba Payment and Invoice Management
Chris Chase
Tuesday April 12
3:15 to 4:30
4.
Ariba Network Order Management
Achim Voermanek
Tuesday April 12
3:15 to 4:30
5.
Ariba Supplier enablement
Olaf Schrader
Tuesday April 12
4:45 to 6:00
6.
Best in class approval rules
Leslie Martensen
Tuesday April 12
3:15 to 4:30
7.
Ariba procurement content and catalog management
Dawn Fischer
Tuesday April 12
4:45 to 6:00
© 2011 Ariba, Inc. All rights reserved.
What’s Coming
UC
© 2011 Ariba, Inc. All rights reserved.
Ariba’s New Release Model
Guiding Principles
Decouple App
releases
• Allows focused engineering execution
by solution area.
Independent Platform • Minimizes quality risk of simultaneously
changing all layers in the architecture
Development
30
Focus on Readiness
• Explicit focus on readiness tailored by
solution
Quarterly Drumbeat
• Predictable schedule for bringing
innovation to the market
© 2011 Ariba, Inc. All rights reserved.
Ariba’s Future Release Vision
More improvements behind the scenes
“Cloud Cadence”
11s - Series
11s1
(Spend Vis, Sourcing,
SIPM, Contracts)
11s2
(Procurement & Invoicing)
11s3
(Ariba Network)
31
© 2011 Ariba, Inc. All rights reserved.
12s - Series
12s1
13s - Series
13s1
12s2
14s1
13s2
12s3
14s2
13s3
14s3
What’s coming in Procurement?
Theme – Network & Usability
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Enhanced accounting information in contracts
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Improved e-mail notification
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Adhoc shipping address in user profile
Procurement
Content
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Catalog Search
Services
Procurement
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Enhanced Contingent Labor operational reports
Procure to Pay
32
© 2011 Ariba, Inc. All rights reserved.
Improved Budget Management
Enforce Minimum and Maximum order size from contract
Handle Old and hanging POs
Improve Operational Reporting
Catalog Reporting
Time Sheet Supplier upload
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
33
© 2011 Ariba, Inc. All rights reserved.
Vision Discussion
UC
© 2011 Ariba, Inc. All rights reserved.
Trends
•
•
•
35
Data explosion requires new navigation paradigm
Consumer technology trends impact the way
business is done
Procurement organizations have myriad
operational models
© 2011 Ariba, Inc. All rights reserved.
#1 Data Management and Retrieval
Enterprise Data Growth & Enterprise Search
Data Explosion
36
© 2011 Ariba, Inc. All rights reserved.
Skimming the Surface
Information Maze
Access?
Where is it?
•
•
•
• Security
• Navigation
Desktop
Intranet
Internet
Find the Information
Go right then left and then
right, then left …..
Take decision based on
inadequate data ……
Relevance?
• Role
• Context
37
© 2011 Ariba, Inc. All rights reserved.
Rich and
actionable?
# 2 Consumer Technology Trends Are
Changing the Way Business Is Done
Networking
Communication
Mobile
Computing
Matching
Services
Then
Now
38
•
•
•
•
© 2011 Ariba, Inc. All rights reserved.
Broader access to data
Social networking going mainstream
Increased collaboration between companies
Information provided contextually
Access to
Content
Solution:
Enterprise Search & Collaboration
Internal
Extended
Enterprise
Outside
World
Multiple Sources
39
© 2011 Ariba, Inc. All rights reserved.
Distributed Information
# 3 Trends in Procurement
Emerging models need Flexibility in Procurement
• Integration
• Extensions
• Deployment
40
© 2011 Ariba, Inc. All rights reserved.
Solution:
Flexibility & P2P Automation
Business Process Automation
1.
2.
3.
Direct Spend, Service Spend
Invoicing and reconciliation
Contract and terms
Overlay With Network & Collaboration
1.
2.
3.
Social Network and collaboration
Network Operations
Add on Functions
Ease of Integration with
legacy applications
41
© 2011 Ariba, Inc. All rights reserved.
In Summary
Focus on process efficiency
•
Collaboration is the key to process efficiency


•
Ariba is committed to improving solution usability
and process efficiency


42
Use the Ariba Cloud Commerce, Expand spend
categories and expand to other geographies
Hyper Collaboration and Usability
Control contract leakages and identify the savings
Expand Spend Categories under control
© 2011 Ariba, Inc. All rights reserved.
Questions
43
© 2011 Ariba, Inc. All rights reserved.
“Safe Harbor” Statement
This information reflects the status of Ariba solution planning as
of April 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.
44
© 2011 Ariba, Inc. All rights reserved.
Ariba Procurement Solutions
What's New, What's Coming, Best Practices
Chandra Yeleshwarapu and Rick Collison
UC
© 2011 Ariba, Inc. All rights reserved.