The Power of Ariba for SAP Customers:The Benefits of Collaborative Commerce

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Powering the Networked Business

A Powerful Combination

Collaborative Commerce with the Ariba Network

Proven Success in Network Scale and Participation

Unmatched Processing Scope and Efficiency

Global Coverage

Unique Community Content, Insights, and Capabilities

Beyond Buyers, Suppliers Benefit Too

Connecting to the Networked Economy

Powering the Networked Business Enormous shifts in how technology is delivered, accessed, and used are heralding new, more collaborative business models. In these new models, companies are connected to digital communities of existing and potential partners. Buyers can efficiently discover and qualify new sources of supply and track and coordinate orders across the supply chain. Sellers can quickly find businesses opportunities with a network of prospective customers – all in real time. And businesses get maximum transparency into payables and receivables, supporting the best working capital decisions.

SAP is embracing this new businesses model for our customers. Now, we go beyond the cloud to connect your businesses, systems, and trading partners with new processes in a networked environment.

“Networked enterprises were 50% more likely than their peers to increase sales, raise profit margins, gain market share, and be market leaders.” – McKinsey report1

1 “The Rise of the Networked Enterprise,” McKinsey on Business Technology, Spring 2011

15+ years of cloud spend management innovation from the global leader in business networks

#1Business Networks &Spend Management

40 years of business software leadership and solutions expertise

#1EnterpriseApplications

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Combining powerful, market-leading applications and technology with a robust business network from Ariba, we help the networked enterprise:

Watch an introduction to the Ariba Network

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Connect to customers, suppliers, and partners for collaborative procurement, sales, and finance activities

Drive efficiency through cloud-based applications that automate and enable shared processes including sourcing, purchasing, invoicing, and payment

Be more informed through community intelligence, market insights, benchmarking, and best practices for better performance and decisions

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A Powerful CombinationBy the numbers, SAP and Ariba are market leaders in the world of collaborative commerce.

Customers>195,000 €16.2 billion

3463%

>5 million Nearly 1 million

>$450 billionPercentage of worldwide transaction revenues that touch an SAP system

Languages Commerce conducted annually

2012 total SAP revenue

Users Companies in 140 countries

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Collaborative Commerce with the Ariba NetworkDiscover, connect, collaborate

Ariba’s cloud-based applications and network help SAP customers discover, connect, and collaborate with trading partners more efficiently and effectively than ever before. With the Ariba Network, SAP customers gain access to:

SAP customers also benefit from Ariba’s:

2 “InformationWeek 500 Data Shows How IT Rules Have Changed,” InformationWeek, Sept. 2012

3 CFO Research: Collaborate to Win, August 2012

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Market-leading applications for spend management, collaborative finance, and sales acceleration management – all delivered as scalable, cost-effective, and hassle-free cloud services

The world’s leading Web-based trading community

Proven success in network scale and participation

Unmatched processing scope and efficiency

Global coverage

Best practices, community-derived intelligence, specialized analytics, preferred financing, ratings, and other features and services available only to community members

“Companies are creating collaboration strategies, using social tools and business networks to move beyond simply reducing operational costs – improving productivity and, ultimately, profits.”

– CFO Research3

“Three-fourths of InformationWeek 500 companies use networking tools to collaborate with customers and suppliers.”

– InformationWeek2

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Proven Success in Network Scale and Participation Join the world’s largest and most global trading network

With an open network that enables fast connectivity and participation, Ariba supports nearly 1 million connected companies with over $450 billion in annual commerce – more than any other network on the planet.

Whatever your company’s industry, size, region, or back-end system, Ariba’s cloud-based applications and services make onboarding, transacting, and collaboration quick and easy. In fact, more than 1,200 new companies join the Ariba Network every week.

Customer Spotlight: LexmarkLexmark took just two days to connect Ariba Procurement Content to SAP, and can set up new catalogs in less than one week.

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Ariba offers the industry’s broadest network-based process coverage and enables new types and levels of collaboration, so you can automate PO and invoice processing, identify and qualify new suppliers, discover new business opportunities, benchmark against peers, and more. Automated rules-based business processes help validate and match POs and invoices, saving time and money. Real-time visibility into vital business-to-business transactions and documents – such as orders, confirmations, change orders, advanced shipping notifications (ASNs), invoices, and payments remittance – keeps you on top of transaction processing.

Unmatched Processing Scope and EfficiencyBring home the benefits of process automation

Customer Spotlight: NalcoThanks to Ariba and the ability to better match POs to invoices, Nalco practically eliminated vendor credit holds, increasing working capital.

COLLABORATE

CONNECT

DISCOVER

SELLBUY

MANAGECASH

YOURENTERPRISE

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Speed processing time

Increase accuracy

Benefits of Automated Transaction Processing

Better manage working capital

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50%–75% faster transaction processing cycles

>90% touchless processing

>60% improvement in order accuracy minimizes risks and rework for both buyers and sellers

45%–60% reduction in transaction error rates and reconciliation costs

Fewer resources focused on manual validation

20% faster payment for sellers

Reduced payables risk and extended days payable outstanding (DPO) for buyersIncreased discount capture

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Did you know that 40% to 60% of the typical supply chain is already enabled on the Ariba Network? And with 1,200 new suppliers joining every week, the network is growing daily. Explore the capabilities and qualifications of nearly 1 million suppliers in 140 countries. Global VAT compliance is built in for more than 36 countries, as is configurable legal compliance for PO and invoice standards in multiple regions. With support for end-to-end multicurrency, 18 languages, and simultaneous multilingual capabilities, the Ariba Network can handle global transactions with ease. You’ll get consistent support for automating and managing spending, invoices, and supply chain collaboration around the world on a single platform – reducing both risks and costs.

Global Coverage Support complex, global supply chain transactions with ease

Customer Spotlight: AlcoaLeveraging network-based transaction collaboration, Alcoa has achieved a 99% error-free, first-time PO to invoice match rate globally.

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Use the Ariba Network’s member directory, transaction history, and community-generated ratings to quickly identify qualified suppliers. Pre-enabled catalog content, supplier self-service catalog tools, and access to category-specific RFx templates and best practices make procurement easier. Use value assessment services to produce optimized working capital strategies and create collaborative working capital solutions, including buyer- or supplier-initiated dynamic discounting, supplier-initiated receivables financing, buyer-supported supply chain financing, and p-card usage rebates.

Unique Community Content, Insights, and CapabilitiesFind qualified suppliers and optimize working capital

Watch The Networked Economy video by IDC.

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Selling organizations that connect to the Ariba Network get instant access to the world’s largest network of Global 2000 buyers with budget in active buying cycles, resulting in increased sales with new and existing customers. With the network, selling organizations can:

Beyond Buyers, Suppliers Benefit Too

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Reduce costs and improve order accuracy through increased visibility into customer processes and automation

Speed payments through an accelerated order-to-cash cycle

Lower cost of servicing customers

Increase customer satisfaction

Cut quote-to-settle cycle time. Tapped early payment discounts to improve cash flow, fund investments.

Purchase order process reduced from several weeks to hours

99% customer retention rate

30% growthin accounts

Grew existing customer ordersby more than 65%, leading to 20% year-over-year revenue gain for six years.

Gained 80% of new clients from Ariba.

Faster Payment:Mediafly

Lower CustomerService Cost:Steelcase

Higher Customer Satisfaction:EBSCO

Increased Sales:MarkMaster

84%

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Creating value means embracing networks of people and coordinating their efforts to deliver business results faster. With cloud-based applications and the world’s largest business network from Ariba, SAP is uniquely positioned to help your business plug in to the networked economy and take advantage of the full impact of the cloud to optimize performance and improve profits.

Ariba’s open network and solutions, coupled with existing connectivity adaptors and integration expertise from SAP make it easy to connect to the Ariba Network regardless of your system landscape. Get started today!

Connecting to the Networked EconomyInter-enterprise collaboration makes it happen

Customer Spotlight: Gasunie“SAP is the IT backbone of our administrative organization, while Ariba extends our internal systems to connect with our supply chain. With both in place, we can collaborate better both internally and externally, and tie the resulting benefits back to our organization.” Richard SchriekCategory Manager MaterialsN.V. Nederlandse Gasunie

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Learn MoreFor more information about the Ariba Network, please visit:

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www.sap.com/aribanetwork

www.thenetworkedeconomy.com