1. B
Building the
Business Case for
Source-to-Settle
Success
DIRECTV
Caesars Entertainment
© 2012 Ariba, Inc. All rights reserved.

2. Session Abstract
Every great spend management initiative begins with a solid
business case that engages the executive suite, excites
stakeholders, and is embraced by suppliers. This session provides a
step-by-step guide for building a fact-based source-to-settle business
case that delivers quantifiable ROI estimates and provides a
blueprint for successful execution. Whether you're just starting out on
a source-to-settle journey or you're looking to expand to the next step
of your program, this is a session you just can't miss.
2 © 2012 Ariba, Inc. All rights reserved.

3. Speaker - DirecTV
Jeff Brown
As Director, Corporate Procurement for DIRECTV, the #1 pay-TV provider in the world, Jeff is
responsible for the company’s procurement of indirect goods and services. Since joining the
company in 2009, he has transformed the procurement function focusing on generating value
through strategic sourcing and upgrading the procurement systems infrastructure.
Previously, Jeff held procurement leadership positions at Avery Dennison in both direct and
indirect Procurement.
3 © 2012 Ariba, Inc. All rights reserved.

4. Speaker - Caesars Entertainment
Mike McLellan
Mike McLellan, Vice President in Strategic Sourcing, Caesars Entertainment
Mike McLellan is a Vice President in Strategic Sourcing for Caesars Entertainment. Mike
leads the teams that provide the technology, infrastructure and analytics for sourcing and
procurement. Mike’s prior roles at Caesars include finance and gaming technology, and
before Caesars Mike worked in sales and marketing for enterprise software companies.
4 © 2012 Ariba, Inc. All rights reserved.

5. B Building the
Business Case for
Source-to-Settle
Success
Jeff Brown
Director Corporate Procurement
DirecTV
© 2012 Ariba, Inc. All rights reserved.

6. DIRECTV
• More than $24 billion in annual revenue in 2010
• #1 pay-TV provider in the world, #2 customer base among U.S.
multi-channel, pay-TV services
• More than 30 million customers in the U.S. and Latin America
• 38 Latin American countries served by DIRECTV Latin America & affiliates
• More than 24,000 employees in the U.S. and Latin America
• 8 EMMY® awards for content and technology
6 © 2012 Ariba, Inc. All rights reserved.

7. Work Locations
U.S. Regional Sales Offices
Missoula • Atlanta, Georgia New York Center
Customer Care • Chicago, Illinois
Latin America Countries Center
of Operation
DIRECTV Sports
• Argentina Networks Head Tulsa Customer
• Brazil Office & FSN Care Center
• Chile Northwest
• Colombia
• Costa Rica
• Ecuador Boise Customer
• El Salvador Care Center
• Guatemala
• Honduras FSN Pittsburgh
• Mexico Los Angeles
• Nicaragua Broadcast Center
• Panama
• Puerto Rico
Huntington
• Trinidad and Tobago Customer
• Uruguay Care Center
• Venezuela El Segundo
• Several Caribbean Headquarters
island nations
Castle Rock
Broadcast Center Home Services Denver
California Broadcast Operations Operations &
Center (DTVLA only) Huntsville
Customer Customer
FSN Rocky Care Center Care Center
Mountain
7 © 2012 Ariba, Inc. All rights reserved.

8. Business Background
• Most of DIRECTV’S back end processes are supported
by SAP
• Procurement has historically been a transaction-based
organization without the information, or tools required to
drive value to the organization
• The business case was developed over time with key input
from Finance and IT
• The goals were to automate the back-end and generate
savings, but focusing on low-risk categories
8 © 2012 Ariba, Inc. All rights reserved.

9. The Story
• Developing the business case was difficult
♦ Software as a Service was a new technology model for DTV
♦ Organizational alignment was a challenge
♦ Migrating procurement off the SAP platform was met with
significant resistance
♦ Savings from sourcing and end-user compliance was a
new concept
9 © 2012 Ariba, Inc. All rights reserved.

10. The Story
• A crawl, walk, run approach was adopted to ensure
organizational alignment and allow for the change
management process to occur.
Year One: Focus on the less visible categories
– Computer peripherals and monitors
– Fleet and other vehicle equipment
– Office Suppliers and general supplies
Years Two-Three: Begin to address larger savings opportunities
– Consulting and Services
– Print and creative
– Hardware and Software
Years Four and Five: End-user and Supplier Compliance
10 © 2012 Ariba, Inc. All rights reserved.

11. Results
• Sourcing: Live in six weeks and 35 sourcing
events conducted
• Contracts: Live in six weeks
• Spend Visibility: Live in 22 weeks
• P2O: Scheduled to go live in July of 2012
64% of PO volume will migrated to catalogs Day 1
23% of total spend will migrate to catalogs Day 1
11 © 2012 Ariba, Inc. All rights reserved.

12. Conclusions
• Building a conservative business case is best if
significant technology and processes changes will occur
implementing Ariba
• Do not under-estimate the complexity of integrating with
a mature SAP back-end
• Treat process efficiencies as potential up-side to the
business case
12 © 2012 Ariba, Inc. All rights reserved.

13. B Building the
Business Case for
Source-to-Settle
Success
Michael McLellan
Vice President Strategic Sourcing
Caesars Entertainment
© 2012 Ariba, Inc. All rights reserved.

14. About Caesars Entertainment
• World’s largest gaming company
• 52 casinos around the world
• 40 million Total Rewards members
• World Series of Poker
• Leading games online, on Facebook, and iOS
• $9 billion revenue. 65,000 employees. $2.5 billion spend.
30,000 suppliers
14 © 2012 Ariba, Inc. All rights reserved.

15. Coming Soon: The Linq
15 © 2012 Ariba, Inc. All rights reserved.

16. Caesars’ Ariba Footprint: “All In”
• Ariba Sourcing Pro since 2009
• Ariba Contract Management since 2009
• Ariba Spend Management in implementation
SIM, Buyer, Discount Pro
Ariba professional services
16 © 2012 Ariba, Inc. All rights reserved.

17. The Need for Spend Management
• $1.4 billion or 55% of our spend lacks a modern
purchasing system
• Highly diverse spend, many end-users
• Manual, paper-based processes waste time,
increase risk
• Lack PO control, formal approvals, spend
visibility, audit trail
• Limited IT resources
17 © 2012 Ariba, Inc. All rights reserved.

18. We’re a Casino. We Really Like
Numbers.
• Laser focus on service metrics
and analytical marketing
• CEO is MIT PhD and
HBS professor
• “Two ways to get fired: steal
from the company, fail to
include a proper control group
in a test.”
18 © 2012 Ariba, Inc. All rights reserved.

19. Benefits: Four Levers
• Increased compliance: buy the right items at our best
negotiated prices
• Price reduction: spot source new requests
• Process improvement: streamline process and use
electronic transactions to cut costs
• Cash management: enable early payment discounts
19 © 2012 Ariba, Inc. All rights reserved.

20. Costs: One-time and Recurring
• One-time:
Caesars internal IT implementation costs
Ariba professional services
Third-party services (change management)
• Recurring:
Caesars system admin / support positions
Ariba software fees
20 © 2012 Ariba, Inc. All rights reserved.

21. The Math: a No-brainer
• $20MM+ annual benefits
Shave 2-3% off
• ($10MM) one-time costs $1 billion+ in
• ($3MM) recurring costs annual spend that
currently lacks any
• $30MM+ NPV modern controls
• ROI >75%
• Payback 2 – 3 years
21 © 2012 Ariba, Inc. All rights reserved.

22. Other Benefits
• Improve service: enable end-users to focus on our
guests, not on buying stuff
• Go green: eliminate 100,000s of paper documents
• Volume discounts: increase spend into fewer SKUs
to achieve greater volume discounts
• Diversity/regulatory: better execute company policies
22 © 2012 Ariba, Inc. All rights reserved.

23. Thoughts on the BCE Exercise
• Showcases Ariba’s domain expertise
• Generates a robust business case – but put it into
your own template
• Helps build consensus
• Accelerates initial implementation
• Be extra conservative
23 © 2012 Ariba, Inc. All rights reserved.

24. Key Metrics Defined, but We’re Just
Getting Started
Objective KPI M1 M2 M3 M4 M5 M6
Control vendor # suppliers processed via
base SIM module vs. all new
suppliers
Establish PO # PO’s
control of spend
$ PO’s
(before the fact)
Maximize $ P2P vs. $ non-P2P
adoption of P2P
system (for # P2P invoices vs. # non-
enabled P2P invoices
suppliers)
Maximize $ P2P throughput as % of
economies of expected case
scale
24 © 2012 Ariba, Inc. All rights reserved.

25. Q&A
Contact info:
John Lark jlark@ariba.com
25 © 2012 Ariba, Inc. All rights reserved.

26. Share This Session…NOW…from
your mobile!
• All presentations are posted:
Guidebook mobile app
– Search Apple or Android app store
for Guidebook
– Enter code “collabor8”
Or at Slideshare.net/Ariba
• Share via email or social media
**Come back soon – we are syncing #AribaLIVE
audio and video interviews to
the presentations**
26 © 2012 Ariba, Inc. All rights reserved.