World Class Procurement in a Digital Economy

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1 SAP Ariba World Class Procurement in a Digital Economy Dion Graham Vice President, Strategic Customers SAP Ariba

2 World Class Procurement in a Digital Economy Dion Graham Vice President, Strategic Customers, SAP Ariba April 5, 2016

3 Digital Economy fueled by hyper-connectivity 2.5 billion Connected people on social networks by billion Connected devices by 2020 The Internet of Things $65 trillion Global business trade by 2020 Internal 2014 SAP SE or an SAP affiliate company. All rights reserved SAP SE or an SAP affiliate company. All rights reserved. 47

4 The Digital Economy: This Time It IS Different Digitization of Customer Experiences Real-time, contextual experiences across every channel 87% of first generation digital natives are connected to the internet while watching TV Digitization of Resources Data is a new asset. The Network is the new electricity. $5.6T savings through connected vehicles Digitization of Work Work is no longer a place, but an activity 83% of executives plan to increase use of contingent workers in the next 3 years Sources: Business Insider, SAP Fact Sheet. Impact Report, Harris Interactive. Colin Shaw and John Ivens, 2010; Deloitte Millennial Study, 2015; Shell, 2014; WRI, 2014; SAP SE, Towers Watson, 2012, 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 48

5 Hyper-connectivity is everywhere Innovators connecting people, devices and business Société de Transport de Montréal Internal 2014 SAP SE or an SAP affiliate company. All rights reserved SAP SE or an SAP affiliate company. All rights reserved. 49

6 Digital economy is connected Connect every device, system, and service we use Internal 2014 SAP SE or an SAP affiliate company. All rights reserved SAP SE or an SAP affiliate company. All rights reserved. Internal 50

Opportunities for a Digital Transformation within Procurement Manual Collaborations

Opportunities Nearly 77% of all incoming invoices are still paper based.

- The Hackett Group, 2012 50% of prenegotiated discounts are never captured.

7 Opportunities for a Digital Transformation within Procurement Manual Collaborations Rogue Spending Poor Capital Management Supply Chain Disruption Missed Business Opportunities Nearly 77% of all incoming invoices are still paper based. - Aberdeen, 2012 $4.6 million in contract leakage per billion in spend on average. - The Hackett Group, % of prenegotiated discounts are never captured. - Aberdeen, % reduction in share price from significant supply chain disruptions. - PwC, 2009 Two-thirds of B2B companies sell less than 10% online outside their countries... - Forrester, 2014 $650B 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 51

8 Disconnected Procurement Processes Source: Ardent Partners Research % of companies are not connecting their key procurement processes to one another Source: Ardent Partners Research SAP SE or an SAP affiliate company. All rights reserved. Internal 52

End-to-End Source to Pay Procurement Framework for Digital Transformation Identify & Develop Strategic Oppty Source & Negotiate Contract Procure Invoice & Pay Manage Working Capital Supplier Info &

9 End-to-End Source to Pay Procurement Framework for Digital Transformation Identify & Develop Strategic Oppty Source & Negotiate Contract Procure Invoice & Pay Manage Working Capital Supplier Info & Performance Supplier Spend Visibility Sourcing Contracts Procure to Pay Collaborative SCM Collaboration Working Capital / Payments Portal Registration & On Boarding Diversity/Green/Certs Risk Mgmt Surveys Quantitative & Qualitative Scorecard Performance Mgmt Commodity Classification Enrichment Services Market Intelligence Analysis D&B Insight Dashboard 360 Visibility Process Compliance erfx Category Mgmt Performance Mgmt Sourcing Expertise Reverse Auctions Knowledge/ Repository Sourcing Discovery Reporting/Analysis Process Compliance Repository Authoring Compliance Expiring Contracts Requisitions Catalog Workflows Approvals Compliance PO Automation PO Flip Invoice Automation PO & NON PO Active Compliance Direct Materials Contract Manufacturer VMI / SMI einvoice Terms Mgmt Dynamic Discounting Optimize liquidity Payment to supplier 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 53

Business demands are driving business collaboration technology innovations More than 60% of CEOs expect 15-50% of their earnings growth in the next 5

0 trillion dollars are exchanged through ecommerce annually* 25% of ecommerce volume is conducted through business networks 2X self-reported expected

INTERNET COMMUNICATIONS Email @ Direct B2B Connections COLLABORATVIE BUSINESS APPLICATIONS Corporate Portal Single Process Solutions COLLABORATIVE

10 Business demands are driving business collaboration technology innovations More than 60% of CEOs expect 15-50% of their earnings growth in the next 5 years to come from technology-enabled business innovations. McKinsey study, 2013 $8.0 trillion dollars are exchanged through ecommerce annually* 25% of ecommerce volume is conducted through business networks 2X self-reported expected increased usage of B2B Networks in 12 months MANUAL COMMUNICATIONS Mail Phone Fax EARLY ELECTRONIC COMMUNICATIONS EDI Vans INTERNET COMMUNICATIONS Direct B2B Connections COLLABORATVIE BUSINESS APPLICATIONS Corporate Portal Single Process Solutions COLLABORATIVE BUSINESS COMMUNITIES Business Networks * Bullish on digital: McKinsey Global Survey results August, SAP SE or an SAP affiliate company. All rights reserved SAP SE or an SAP affiliate company. All rights reserved. Internal 54

Business Network Digitize Your Growing Outside World With Your Inside Processes Complex optimization inside the four walls, but limited coordination with

11 Business Network Digitize Your Growing Outside World With Your Inside Processes Complex optimization inside the four walls, but limited coordination with you external partners. Traditional Model Business Network Model EDI Fax Portal 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 55

12 Business Networks must Harmonize Data for all Systems Open Any Vendors / Any ERP system / Any Protocol Comprehensive All Suppliers, All Collaborative business processes, All Geographies** Intelligence Automated, Real-Time, Big Data-Driven Buyer Trading Partners Order* Invoice Status Remittance Advice Discount Proposal Payment Spot RFQ Order Status Request Service Entry Response Scheduling Agreement Release BUY MANAG E CASH Ariba Network SELL Order Confirmation Catalog Shipment Notice* Invoice*/Payment Status Discount Acceptance Spot Quote Order Status Response Service Entry Sheet Supply Chain Invoice Web UI cxml Paper CSV EDI Subcontract PO Outbound Delivery Inventory Status Forecast Discover Connect Collaborate Component Receipt Component Consumption Inventory Status Forecast Response xcbl Smart PDF 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 56

13 Thank you Contact information: Dion Graham Vice President

14 2016 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Internal 58

Transform Procurement with SAP S/4HANA SAP Ariba and SAP Fieldglass

Transform Procurement with SAP S/4HANA SAP Ariba and SAP Fieldglass March 2017 1/18 2017 SAP SE or an SAP affiliate company. All rights reserved. 2017 SAP SE or an SAP affiliate company. Customer All rights