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CYRIL RATHOGWA

Digital Trends

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 3

Competing in today’s digital economy requires speed and agility

5 technology trends are

changing the way

we work, live, and interact

Adoption of new technologies is happening at 10X scale and 5X speed

Hyper

connectivity

Super

computing

Cloud

computingSmarter

world

Smarter

security


Business commerce is becoming increasingly complex

(1) PwC 17th Annual global CEO Survey

More Risk• Supply chain disruption /

scandals

• Financial risk and fraud

• Geopolitics

Increased Globalization• Expansion into new markets

• International supply chains

• Increased off/near shoring

Greater

Interdependencies• Increased outsourcing

• Supplier-driven innovation

• Business partnerships

Faster Innovation

Cycles• New capabilities

• New business models

• New channels

New Sources of

Competition• Need for profitable

growth

• Manage cost drivers

• Better asset/capital

management

Regulatory Changes• Increasing disclosure

requirements

• Country-specific regulations

• Industry-specific disclosures


Manual

collaborations

Poor capital and

resource mgmt

Rogue

spending

Missed sales

opportunities

Supply chain

disruptions

Lack of

transparency

$650B(Source: Basex Research)

Leading to increased business collaboration inefficiencies


81% Of executives surveyed believe simplification is

important for their organization, and 88% admit IT

investment is important to achieve simplification

Source: SAP benchmarking

36 Enterprise apps per billion US dollars in

revenue for the average company. This is

driving most of the technical complexity.

Source: SAP benchmarking

$50 billionIncremental revenue available through

simplification in the United States, United

Kingdom, and Germany combined.

Source: S+G Global Brand Simplicity Index 2013

Complexity is an obstacle to digitizationComplexity is a barrier to simplification, innovation, and the transition to digital

From: To:

Standardization Simplification and innovation


Changing Role of

Procurement


The changing role of procurement

“It will become more of a standard to see supply

management being held accountable for delivering

value and not just lower costs.”

www.futureofprocurement.com

Larry WelchFormer CPO, Hewlett-Packard


No need to balance against cost / risk objectives

Product

Innovation

Market

Expansion

Working

Capital

Mgmt

CSR /

Regulatory

Compliance

Risk

Mitigation

Cost

Control


CPO’s still face multiple challenges in their

Source to Pay process

Source & Contract Request & Buy Invoice & Pay

Manual supplier registration

No ability to identify new sources

of supply in real time

Manual RFx (RFI/RFP or e-

tendering) Process

Manual contract authoring,

workflow, and negotiation

Limited ability to enforce

organization policy to end users

Limited visibility of spend and

identify synergies to optimize

Limited or no catalog usage for

end users to request and buy

Limited visibility on services

procurement

Complexities in

workflows/approval hierarchies

for PR to PO processMinimal supplier collaboration

especially for services

procurement

Manual invoicing process

High degree of errors leading to

unnecessary load on AP function

Too many supplier enquiry on the

payment status

High degree of maverick buying

leading to Savings leakage

Limited supplier management

capability


Where can procurement add value

Product

Innovation

Market

Expansion

Working

Capital

Mgmt

CSR /

Regulatory

Compliance


Automate and

Collaborate


Enabling procurement transformation

Automation ConnectionsPeople


Invoice Disputes

Caused by missing

or invalid PO

informationSource: cfo.com

49%Invoice Disputes

Caused by lost

invoicesSource: cfo.com

11%Disputes Caused by

not having money to

pay or missing

contact information

to resolve issue Source: cfo.com

29%the incoming calls

relate to payment

status and

submissionSource: Ardent Partners

50%

Why Automate?


Let’s Automate

3000 Connections

• Supplier Registration

• Supplier Profiles

• “I forgot my password”

• Bank Details

• Supplier Help Desks

• DMZ & Firewall config

• Web Servers

• Load Balancing

• Performance Monitoring

• Business Rules

• Patches & Upgrades

• Supplier Training

• Supplier Tools

One Connection


Ariba Network business collaboration

YOUR TRADING

PARTNERS

Business Networks

Discover

• New trading partners and

communities

• New staffing, contingent

labor or goods and services

• New business opportunities

Connect

• Trading partners anytime, anywhere

• Any device, back-end system and level of technical ability

Collaborate

• Comprehensive set of

inter-company

collaboration processes

• Any commerce category

and/or spend type

Gain Insights

• Unique analytics and

benchmarking data

• Real-time alerts and

notifications

• 3rd party data, risk and

insurance information

Your

CompanyYOUR

COMPANY

YOUR SYSTEMS


SAP Ariba in the Context of

the Digital Economy

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Suppliers

& networks

Customer

experience

Workforce

engagement

loT

& big data Security

SAP HANA Platform

Digital Core

Integration to SAP and Non SAP Solutions, Secure, Open platform

BU

YE

RS

SU

PP

LIE

RS

Fulfill SettleSell

SP

EN

D C

AT

EG

OR

IES

Customer Management

Direct

Indirect and MRO

Contingent Labor

Travel

Procure SettleSource

Supplier Management

Ariba Network

17


SAP ERP Central Component (ECC)

Source and

ContractProcure

Invoice and

Pay

Supplier

PortalEDI

Core

Exte

nsio

n

Core

Exte

nsio

n

Ariba Network

Co

llab

ora

tion

Traditional Procurement

Deployment

Digital Procurement Framework

Guided End-User Buyer

Strategic Sourcing Procurement

Inventory Mgmt.

External Workforce Mgmt.

Invoice & Pay

Supplier Management

Procurement Analytics

Digital Transformation of Procurement with SAP


Ariba Network is the backbone for digital supplier

collaboration

Your Company

Your Systems

Your Trading Partners

2.700.000Companies

250+ MDocuments annually

(PO + invoices)

195+ MCatalog items

1 minuteA company joins the

network

11+ MTimesheets processed

annually

34+ Mleads sent annually

to sellers

$1300 BIn annual commerce

1.4 MContingent workers job

placements annually

14 M Users

EVERY


SAP Ariba provides end-to-end Source-to-Pay solution

SAP Ariba

Strategic Sourcing

BUYING (P2O)

CATALOG

SOURCING

Spend

Analysis

Strategic

Sourcing

Contract

ManagementOperational Management

Invoice

ManagementPayment

Supplier

Management

SPEND

ANALYSISCONTRACTS

SUPPLIER

LIFECYCLE &

PERFORMANCE

BUYING Advanced Edition (P2P)

INVOICE MANAGEMENT

RFI / RFP &

eAuction

Scenarios &

Savings Tracking

Complex projects

Repository

Clause libraries

eSignatures

Supplier profiles

Qualification &

Performance

Risk insights

Guided Buying

PR, PO &

Receiving

Approval

workflows

Matching &

Invoice status

ePOs &

eInvoices

Collaborative

supply chain

Payments

Working capital

Reverse factoring

Consolidation &

Data cleansing

Spend analysis

Opportunity

identification

PAYABLES

SUPPLIER RISK COMMERCE AUTOMATION

SAP Ariba

PayablesSAP Ariba

Supply Chain

SAP Ariba

Supplier MngtSAP Ariba

Procurement

DIRECT MATERIAL

SOURCING

SUPPLY CHAIN

COLLABORATION

Operational

Sourcing

Subcontracting

Multi-tier

collaboration

Ke

y F

ea

ture

sP

ort

folio

sS

AP

Arib

a S

olu

tion

sP

rocesse

s


SAP Ariba and SAP S/4 HANA Suite

Enterprise Management

Business Network enabled Supplier Collaboration

S/4 Enterprise Management Procurement

SPEND ANALYSIS

SOURCING

CONTRACT MGMT.

INVOICE WORKFLOW

WORKING CAPITAL

ELECTRONIC PAY

DIRECT MATERIALS

COLLABORATION

SELF-SERVICE

INDIRECT MATERIALS

PROCUREMENT

Ariba =

Strategic

Collaboration

S/4 =

Operational

Transactions

MM transactions, Req., PO, GR, IR, Operational

Contract, InfoRecord, Source Determination…

SUPPLIER

ONBOARDING &

PERFORMANCE


Where do we start?


Come as you are


SAP Ariba Contacts

[email protected]

[email protected]

[email protected]@sap.com

[email protected]