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This was a public SAP Mentor Community Call last week.

Agenda:

1. Introduction on SAP Ariba
2. Description of SAP Ariba’s Strategy and Brand
3. Ariba Cloud Applications and Ariba Network Overview
4. Q&A
Presenter: Joe Fox, SVP Bus & Dev, SAP Ariba (SAP Mentor)

Recording link: https://sap.na.pgiconnect.com/p3bttn5x3wq/

Figure 1: Source:SAP Ariba
SAP Ariba was purchased by SAP 4.5 years ago

Focuses on source to pay process

Facilitates collaboration between buyers and suppliers

4 major business processes shown in Figure 1

Figure 2: Source: SAP Ariba

Customer base are global buyers, with revenue $1B and above

Connect with vendors on network

Full of companies that have SAP and non-SAP

Companies choose to do business based on business processes/products exchange

Sellers use various technology – largest sellers to single employee service companies

Customers are buyers and sellers


Figure 3: Source: SAP Ariba

 

Ariba fits in supplier strategy of network

Ariba has 4K employees; it is 1/20th size of SAP
Connect buyers and sellers

Ariba is pure cloud software

Buyers – focus on procure and settle component

Supplier – allow suppliers to market to community of buyers, settle on payments

Establish collaboration network

Direct materials, indirect material, contingent labor with Fieldglass, Travel with Concur, integrated with SAP and non-SAP – open network, API technology

Figure 4: Source: SAP Ariba

Figure 4 is an architecture slide

Most companies start with an ERP software on left of Figure 4

As buyers, find suppliers to do business with them

Collaborate via Ariba network

Facilitates documents and data

Digital catalog, like e-commerce

Buyer completes requisition in Ariba, turns to purchase order to supplier that comes across digitally (less expensive)

Supplier can invoice once ship

Buyer can pay supplier

 

Network extension applications

Partner ecosystem
1 trillion in commerce

2.5 million sellers

Key processes are on the right of Figure 4

Ariba discovery – buyer can post a need, suppliers can supply

Digital efficiency; using digital product catalog, selecting the right price on the purchase order

Closed loop on PO to invoice- PO flip – seller to press a button to turn into invoice – invoice is generated from purchase order

Communication layer – invoice received, approved, – samples of digital messages

Figure 5: Source: SAP Ariba

2.5 million companies with over 1 trillion in business

Open ecosystem

Aspirations in 2020 are shown in Figure 5

Mission is to be innovation leader with the customer in the digital economy

Hashtag used is #makeprocurementawesome – commitment to buyers and sellers to make opportunity to do business ‘awesome’

Figure 6: Source: SAP Ariba

Figure 6 shows the Ariba journey, starting in 1996

In 1999 prior to IPO, added Ariba Network on premise

In May 2012 SAP announced buying Ariba

Under SAP, took advantage of open partner ecosystem

Quarterly release

Released SpotBuy to buy non-contracted goods

Attendee comment: “We use Spot buy internally at SAP – its awesome – If we cant find something in our shopping catalog we can source from places like eBay”

AribaPay – an expanded way for buyers to pay suppliers

Open up customers to be a crowd-sourced

Everything is cloud-only

Viewed as a new startup inside SAP, rolling out new solutions quickly

Figure 7: Source: SAP Ariba

Figure 7 shows Ariba going from an on-premise platform to a cloud platform

2007-2012 moved some on-premise to cloud, some are mixed

Sunset on-premise application; do not sell it any more

Figure 8: Source: SAP Ariba

Build, buy or partner?

 

Digital futures – 4 categories

AI – system communicates with you proactively (at home talk to Alexa)

Machine learning is more interactively – watch what you do, learn your patterns; noticed that you purchased x, do you need new x?

IoT – internet capable; talk from device; a product reorders itself


Figure 9: Source: SAP Ariba

Big event in Las Vegas

Figure 10: Source: SAP Ariba
Source, procure to pay, world’s largest network

Direct materials, indirect materials, MRO (all devices, tools, maintenance oriented goods),

contingent labor (with help from Fieldglass), travel, which may be Concur

Question & Answer

Q: How does the Ariba interact with your existing CRM system?
A: Ariba is a platform for buyers and sellers; CRM would be used for sellers to manage customers

Q: Can you give an overview of the services integration and Contract Management integration.
A: Services side – buyer purchase service – discovery, post RFP on sourcing tool, and go in discovery tool to open to suppliers they don’t know
Once contract established, contract management tool in the cloud to manage

Q: Does SAP Ariba work as a internal reimbursement system? Could you please show us a simple SAP Ariba process?
A: SAP system can connect directly network or employee is in the Ariba Cloud, create requisition, workflowed (integration with SAP), once approved, create purchase order, flows from Cloud to the network, copy of PO back to ERP system, invoice from Cloud to ERP, SAP approves, then scheduled for payment

Direct SAP integration may be different; employee may be inside SAP, enter PO in SAP, press send, from SAP ERP to Ariba as a PO

Q: When will the next Ariba Roadmap be available?
A: Great question; Ariba platform has a fluid ongoing roadmap – reach out to Ariba contact for roadmap – comes out for every release; typically release quarterly

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