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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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 4
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 5
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 6
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 7
Changing Role of
Procurement
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 8
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 9
No need to balance against cost / risk objectives
Product
Innovation
Market
Expansion
Working
Capital
Mgmt
CSR /
Regulatory
Compliance
Risk
Mitigation
Cost
Control
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 10
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 11
Where can procurement add value
Product
Innovation
Market
Expansion
Working
Capital
Mgmt
CSR /
Regulatory
Compliance
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 12
Automate and
Collaborate
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 13
Enabling procurement transformation
Automation ConnectionsPeople
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 14
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?
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 15
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 16
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 17
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 18
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 19
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 20
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 21
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
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 22
Where do we start?
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 23
Come as you are
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 24
SAP Ariba Contacts
Cyril.Rathogwa@sap.com
Graeme.Yates@sap.com
Siya.Mnyanda@sap.comRaymond.Grieger@sap.com
Cynthia.Manqele@sap.com
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