sap forum İstanbul 2016 - sap ariba İle sÖzleŞme yÖnetİmİ

SAP FORUM İSTANBUL Reimagine Business for the Digital Economy

SAP Ariba Contract Management

Speaker’s Name : İlkay Sağlam

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Internal

Agenda

Typical Contract Management Business Requirements

Solution Overview and Differentiators

Customer Success in Action

Typical Contract Management

Business Requirements


Ineffective Contract Lifecycle Management Results in Increased Compliance Risks

Draft Contract

Negotiate Contract

Approval/ Signatures

Storage/ Repository

Manage Compliance

Admin/ Optimize

Creation Visibility Performance Management

Inconsistent and email-intensive

processes

Long Negotiations approval cycle

times

Lack of tight controls ( e.g. for non

standard contracts /language

Legal Risk

Organizationally dispersed contracts

Redundant contracts

No visibility into commitments

(financial, legal)

Inability to track regulatory

compliance or understand contract

history

Poor contract compliance

( PO, Invoice, SLAs )

Poor renewals management

Lack of performance

information hinders re-

sourcing or resale efforts .


Companies Leveraging Contract Management Solutions Drive

Superior Procurement Results*

* Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012

Laggards – Bottom 30%

Industry Average – Middle 50%

Best in Class – Top 20%

67%

4%

8% 45%

8 16

Spend Under Management Average Days for Contract

Review & Approval Realized Contract Savings

79% 17%

47

Up to 50 percent reduction in contracting cycle times

More than 50 % increase in realized contract savings

25% increase in Spend Under Management


Leading to Better Visibility and Compliance*

Performance Metrics Best-in-

Class

All

Others

On-contract spend 74.2% 54.9%

Transactions that are compliant with

contracts 76.6% 66.6%

Contracts stored in a central, searchable

repository 69.7% 63.2%

* Source: Ardent Partners, The Rewards of Best-in Class Contract Management, February 2015


These are the Challenges We Hear From Our Customers

Legal

Weak Contract Management. Poor

contract compliance, belated

renewals management, and lack of

performance information

Ineffective Contract Creation. Lack

of tight contract authoring controls,

creating legal risk

Poor Contract Visibility. Dispersed

and redundant contracts and the

inability to track regulatory

compliance or understand contract

history

Disconnected Negotiation

Processes. Inconsistent and e-mail-

intensive processes, long negotiation

and approval cycle times, and risk of

not including the correct stakeholders

Slow Time-to-Value. Poor user

adoption, lengthy deployment, and

limited process and data integration


What if you could…?

Manage all of your agreements

on an integrated SaaS

platform

Address your complex

scenarios with robust,

configurable workflows

Leverage pre-built best-

practice templates and

workflows

Execute contracts

electronically making the

contracting process 100

percent paperless

Improve collaboration with

suppliers via the Ariba Network

Incorporate deployment and

best practices services in

order to achieve your ROI

...And receive all of this in a

single subscription pricing

model with no hidden or

additional costs?

Average $3.5 million in annual savings with

14x ROI on a $250K investment from an

Ariba customer:

$1M to $2M due to improved efficiencies in contract search and visibility

$1M to $2M due to contract creation efficiencies (eliminating rekeying, reduced time drafting, etc.)

$400K to $800K due to approval process improvements

$400K due to reduction in FTE support for ongoing enhancements (comparison of CD installed software vs. SaaS delivery model)

$350K with elimination of support and maintenance of CD software

Improved data integrity between contract data and transactional systems

Improved consistency and use of standard terms

Solution Overview and

Differentiators


Third Parties Agree: Ariba is THE Single Best-in-Class SaaS

Solution for ALL Contract Types and Agreements

More than four million contracts every day…

At Ariba, we help our customers manage more than four

million contracts every day with than 500 total customers

Extensive experience and customer reach across both

procurement as well as sales contracts

Consistent Leader in CLM according to…

Gartner Magic Quadrant, June 2013

Forrester Research, SVM Toolset, Q1 2013

Benefits of OnDemand deployment …

Y1 TCO 5X-10X less than installed software

50% faster implementation cycles

25% more spend under management

2X-4X more innovation releases

Sources: Aberdeen, AMR, Triple-Tree, Ariba

Publication Date: Feb 2015

Gartner MAGIC

QUADRANT

Forrester WaveTM Q1 '13


Ariba Contract Management Supports the Entire Contract Lifecycle

Draft Contract

Negotiate Contract

Approval/ Signatures

Storage/ Repository

Manage Compliance Admin/ Optimize

Contract Visibility / Repository

Contract Execution and Compliance

Contract Creation

Automates the contract creation cycle, from

draft to reviews and approvals

Contract authoring tools, including clause

libraries and conditional templates

Creates a contract repository with access-

controlled search and reporting

Audit trail for internal and external and

regulatory requirements

Deep integration within the source-to-contract

process

Expiry notification for improved renewal

management

Centralized electronic task-driven notification

alerts

Rapid time to value with on-demand

deployment

Microsoft Word integration

Integration to leading eSignature providers –

DocuSign and Adobe Document Cloud eSign

Services


Delivering Optimized Contract Lifecycle Management

Improved Contract Management.

Improved contract compliance, timely

renewals management, and visibility to

performance information

Effective Contract Creation. Tighter

controls and minimized legal risk

Full Contract Visibility. Single repository

for contracts, elimination of redundant

contracts, visibility into commitments, and

the ability to track regulatory compliance

and understand contract history

Streamlined Negotiation Processes.

Streamlined and controlled processes,

abbreviated negotiation and approval

cycles, and inclusion of the right

stakeholders

Rapid Time-to-Value. Enables strong user

adoption, delivers rapid on-demand

deployment, and provides process and

data integration


Ariba Contract Management (Buy and Sell) Driving Spend Compliance Across All Contract Types

Contract Creation

• Contracts of any type: Buy, Sell, Internal/Corporate

• Collaborative authoring – including integration with Procurement & CRM systems

• Single point of access for sellers across all buyer relationships

• Standardized contract creation from templates and clause libraries

• Deep integration with the sourcing process for contract creation

• Powerful workflow and approval engine controlled completely within the user interface

Repository, Reports, and Alerts

• Customizable, role-based dashboard for contracts data

• Advanced repository and search

• Automated compliance monitoring and alerts

Compliance and Usage

• Performance/audit management on contracts

• Integration with back-end systems for automated P2P usage of agreements

eSignatures through DocuSign and Adobe Echosign

L1 Customer Support, BPC expertise, Setup included in Subscription

Out of box integration to Sourcing and P2P systems


Contract

Complexity

Our Paper Their

Paper

Strategic Alliance

Sales Agreements

Leases

Sales NDA Purchasing NDA

eContracts

Purchasing Agreements

Ariba Contract Management Addressing ALL Contract Types


Ariba® Contract Management eSignature Services in partnership with Adobe®

EchoSign® and DocuSign® help customers to go INK and Paper free and close

deals faster and more efficiently, increasing savings, revenue and productivity.

B u y e r s E - S i g n a t u r e P a r t n e r S e l l e r s

Ariba® Contract

Management

API’s

Integration with leading Electronic Signature providers

http://www.ariba.com/assets/uploads/documents/Partners/Adobe-EchoSign-Overview.pdf

https://www.docusign.com/


Electronic signatures Value Proposition Faster Contract Completion, Reduced Costs, Improved Controls

Source: IDC White Paper, sponsored by Adobe, Bridging the Information Worker Productivity Gap: New Challenges and Opportunities

for IT, September 2012.

Contracts completed in 1-2 days vs. 2-3

weeks

80% reduction in paper and supplies

Detailed audit information and compliance

copies of every signed document


The Market-Leading SaaS Solution to Better Manage Contracts & Commitments

Key Imperative Why Ariba Contract Management?

• Most widely adopted contract management provider with over 450

total customers

• Manage the entire contract lifecycle for all agreements on an

integrated SaaS, spend management / sales acceleration platform

• Ranked as a leader by numerous independent analysts

End-End Contract

Management

Improve Contract

Management

Efficiency

• Flexible approach with configurable workflows in the contract

management lifecycle incorporating all relevant activity and information

• Process standardization tools driven by best practice templates to

remove bottlenecks and improve overall contracting efficiency

• Tightly integrated electronic signatures capabilities making contract

execution more transparent, faster, and more secure

• Configurable dashboards with robust search, reporting, and task

driven alerts providing audit trails for operational and regulatory

compliance for best value agreements

• Enhance ability to manage cash through improved visibility and

forecasting

• Plug in to the Ariba Network to improve contracting efficiency and

effectiveness while assuring your return on investment

Manage

Commitments

More Effectively

Driving ROI


SaaS Data Security With Ariba, Your Sensitive Contract Data Is Secure

Physical Security

24x7 guarded servers

Surveillance cameras

Motion detectors

Limited Ariba access

Biometric access control

Data Security

Three layers of firewall protection

HTTPS – 128 bit encryption

Intrusion Detection System to monitor traffic for anomalous behavior

Password encryption with expiration

Access control entries on load balancers

Availability & Reliability

99.5% uptime

Comprehensive backup schedule

Redundancy at all tiers: web, application, database

Proactive notification of downtime

24x7 disaster recovery plans & centers

Security Certification

WebTrust audited every six months

Independent CPA has determined Ariba conforms to established principles

WebTrust principles: security, availability, processing integrity, privacy, confidentiality

Hosting facilities in the USA and EU and SAS70 certified

Customer Success in Action


Contract Management Customers Broad Industry and Regional Coverage


Ariba Contract Management delivers Measurable

Benefits - - - -

100%+ Compliance within TopSource

1300 Contract Workspaces

11 Different Process for various departments

Multi-Location Benefits

5500+ Contract Workspaces and

signed till date

2-3 Billion Procurement Spend under

contract

14 Categories managed

1200 Contracts signed through

electronic signatures

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