Did you know that SAP runs Ariba? Come listen as we share our story of our own Ariba implementation. From solution selection, to on-premise/on-demand orchestration leveraging a Rapid Deployment Solution package, to global rollout, we'll discuss how SAP adopted the Ariba Network and other Ariba solutions while maintaining our existing investments in on- premise SRM and invoice management solutions. Discover how SAP now reaps the benefits of increased user satisfaction, supplier collaboration and electronic invoicing, and transforming the global procurement team into a more highly value-added organization.

1. #AribaLIVE
How SAP Is Extending Our Own ERP and
SRM Deployment by Leveraging the
Ariba Cloud Portfolio and Network
Dr. Steffen Klewitz, Vice President, Procure-to-Pay Strategy Group, SAP
Tuesday, April 9, 2014
© 2014 Ariba – an SAP company. All rights reserved.
@ariba

2. What We’ll Cover
Agenda for this Session:
• Introducing SAP’s Global Procurement Organization and its Vision
• Elaborating on the SAP P2P Strategy
• Presenting the P2P IT Strategy incl. Innovations Driven by SAP runs SAP
• Explaining the Architecture of the Hybrid Deployment
• Revealing Details of the Solutions and Impact to the Business
3 © 2014 Ariba – an SAP company. All rights reserved.

3. Executive Summary
• SAP’s Global Procurement Organization is a professional state-of-the-art
procure-to-pay (P2P) business organization
• However, we face the same challenges like many P2P organizations (e.g. cost
pressure, volatility in the supplier markets, demanding business partners)
• The need to leverage intelligent ways to utilize IT resources and automate
processes is further growing
• We have found a way to use the best of both worlds: Combine the existing SAP
on-premise implementation with deep integration into ERP and leveraging the
advantages of an Ariba cloud solution with collaborative, scaling, and
networking effects
4 © 2014 Ariba – an SAP company. All rights reserved.

4. • Cover all units of SAP centrally with prioritized
geographies
• Leverage purchasing power and driving
sustainable savings
• Deliver best-in-class procurement processes and
highest possible service levels to
internal customers
• Mitigate risk for SAP
• Be a fair partner to our suppliers
Goals
CPO and Procure-to-Pay Business Owner
Procurement
Shared Services*
operational procurement and
accounts payable
Category
Procurement
strategic and tactical sourcing
in 36 locations
Structure
Procurement Vision is to help SAP buy better and be a value generating business partner
for all procurement related activities, globally
*reports solid line into Global Finance Shared Services Organization
Procure-to-Pay @ SAP
Organization and Goals

5. Procure-to-Pay @ SAP
Key Facts and Spend Distribution
ASIA PACIFIC
13%
EMEA
54%
AMERICAS
33%
Spend by Region
67,000+
Global SAP employees
16.9€ billion
Revenue 2013
3.6€ billion
Spend 2013
14,000+
Global suppliers
>730,000
Annual invoices 2013
>460,000
PO Line Items 2013
>780,000
Trip Entries 2013
420
FTE in P2P
Key Facts
6 © 2014 Ariba – an SAP company. All rights reserved.

6. Evolution of Procurement towards a Strategic
Function
Operational Partner
Tactical Partner
Strategic importance
of procurement
time
Strategic Partner
2011 20122004 2013
Globalization E2E Process
Category
Strategy
2015
Automation and Cloud/Mobile
Transformation Journey of Global
Procurement

7. House of Procure-to-Pay
2020 Strategy: World-Class Procure-to-Pay
Develop Amazing Talent
High GPO workforce engagement through leadership, empowerment, trainings and promotion of inclusion
Strategic Excellence
Generation of high value as trusted business partner with significant impact on bottom line -
handshake with line of business
Procurement Excellence
Be volume ready for 2015 with customer centric operations and PMI support
using global procurement SSC with lean and standardized processes
GPO Strategy 2017
Best-in-Class Procure-to-Pay
Category & Sourcing Strategy Supplier Management Organization
P2P Processes and Tools
/Standardization & Automation
Governance and Compliance
‘Simplify everything that we can do anything……for our customers’
supporting SAP’s Growth objective (22€bn) and Margin ambition (35%)

8. Inefficient B2B Collaboration
Key Challenge to Achieve our Goals
Suppliers
Need for a smart IT strategy leveraging our own solutions
Enterprise and Supplier Portals
EDI (Electronic Data Interchange)
Non-standardized processes
Poor compliance
Manual paper-based collaboration
Delayed payments, overpayments and
missed documents, slow cash flows
Higher operating and supply chain costs
Wasted time and resources
Mail, Phone, Face-to-Face
9 © 2014 Ariba – an SAP company. All rights reserved.

9. Innovation Portfolio in Procure-to-Pay
based on System Foundation SRM 7.0
Mobile Solutions
Improved Usability and
increased Manager
Effectiveness
Ariba Cloud / Business Networks
Reduced Process costs and faster cycle times
Leveraging purchasing power of SAP
New Catalog
Google fast and Amazon like
shopping experience
with Ariba Catalog
Analytics
Procurement Dashboards are key to manage the
Procure-to-Pay Process
1 2
3 4

10. Mobile Easy Order
Simplified shopping experience: Shopping in three clicks
1. Mobile and flexible
 Mobile apps for iPad, iPhone, available
 Easy ordering of preferred end-use
consumable articles (online/offline)
 Using of non productive waiting time to
process shopping carts
2. Full integration
 Integration to online SRM system
 Detailed information of articles on item level
3. User-friendly User-Interface
 Simple and intuitive
11 © 2014 Ariba – an SAP company. All rights reserved.
1

11. Mobile Shopping Cart Approval
Simplified approval: improved manager effectiveness
1. Mobile and flexible
 Mobile apps for iPad, iPhone, Android
smartphones and Blackberry available
 Approval and rejection of shopping carts
with mobile apps (online/offline)
 Using of non-productive waiting time to
process shopping carts
2. Full integration
 Integration to online SRM system
 Submission of the receipts via mobile app
or email
3. User-friendly User-Interface
 Simple and intuitive
12 © 2014 Ariba – an SAP company. All rights reserved.
1

12. http://www.oakmontthera
py.com/Blog.en.html
SAP Runs Ariba Procurement Content
More an ‘Amazon-like’ Shopping Experience for End-Users
Old Catalog Ariba Catalog
2

13. Analytics: Spend Visibility provides
Facts & Figures
1. Flexible and Mobile
 Intuitive report design
 Flexible filter criteria to customize reports to
individual needs
 Extracts can easily be send via e-mail
2. User friendly User-Interface
 Simple and intuitive
 Full end-to-end process transparency
 End user can easily define own reports, pivot-
tables, dashboards
3

14. http://www.oakmontthera
py.com/Blog.en.html
Implementation of a Hybrid Model by combining
SAP On Premise and Ariba Cloud Solutions
Supplier
Supplier
Supplier
Purchase Order, Invoice Status
Invoices, Order Conf., ASN
SRM
Self Service
Procurement
Ariba
Discount
Pro
ERP on HANA
Purchasing /
Invoicing
Vendor Invoice
Management by
Open Text
Ariba
Spend
Visibility
Ariba
Sourcing
Ariba Supplier
Management
Ariba Contract
Management
Procure-to-Pay Process
Category Procurement
for all strategic and tactical Sourcing
Operational Procurement
for Purchase Order handling
Accounts Payable and
Business Network Collaboration
Automatic interface, no manual interaction
– fully integrated solutions
Master Data
Governance (MDG)
– Supplier Mgmt
Contract
Management
System (CMS)
Ariba
Procurement
Content
(Catalog)

15. Ariba Spend Visibility:
What’s Measured Gets Done
Solution Business Impact
 SAP uses Ariba Spend Visibility to improve the
reporting capabilities for all PO-related and
non PO-related spend
 Simple and highly “customizable” solution
enabling the end-user to build own
reports/charts/drill-downs
 Provides accurate spend figures via Ariba Spend
Visibility and secure availability of reports
 Provision of an easy-to-use solution/design reports
and dashboards
Supplier Enrichment
(Normalization/
Rationalization,
DUNS Parentage)
Data Extract
(Source Data)
SAP ERP
Ariba Analysis
(Dashboards,
Drag & Drop
Reporting)
Commodity Classification
(Classified to UNSPSC via
best practice combination of
Knowledgebase, Databases &
Services)
16 © 2014 Ariba – an SAP company. All rights reserved.

16. Ariba Supplier Information &
Performance Management
Solution Business Impact
 Enables E2E transparent and optimized Supplier Lifecycle
Management
 Secures maximum compliance and sustainability
within supplier management and prevents related
compliance costs
 Supporting a 360° single point of view to manage suppliers
and tighten partnership
 Provides full transparency of processes, roles and critical
data in a combined On Premise and Cloud environment
 Increased and optimized automation reduces significant
manual workload
 Increased transparency of valuable active supplier base of
SAP reduces efforts of ongoing new supplier onboarding
 Supplier Data Self-Maintenance increases supplier data
quality and reduces significant data quality efforts of SAP
MDG*,
ISP
PRM*
• Supplier
Qualification,
• Due Diligence,
• Classification,
Evaluation &
Performance
Management
• Supplier
Master Data
Self
Maintenance
• Supplier Selection,
Creation & Phase
Out
• Synchronization
with Supplier as
Partner
• External Service
Provider for
Bank, Address data
& D&B Family Tree
Bi-
Directional
Interface
(in-progress)
Web
Services
and XML
Automatic Supplier Transfer to SIPM*
Real Time Check with 3rd Party Provider
(in progress)
• Supplier
Master Data
Record
• Changes
of Supplier
Master Data
Record
* SIPM: Supplier Information and Performance Management, MDG: Master Data Governance,
PRM: Partner Relationship Management
Automatic Update of SAP ERP (ISP)
17 © 2014 Ariba – an SAP company. All rights reserved.

17. Ariba Collaborative Sourcing:
Optimized and Harmonized Processes
Solution Business Impact
 Transparency and centralized documented sourcing
activities at global level
 Optimized processes and resource efforts among
the sourcing practices
 Speed-up and reduction of the lifecycle of the
sourcing activities
 Global harmonization and concentration of sourcing
knowledge and best practices (ground a
sustainable sourcing)
 Granting an improved and standard sourcing
documentation quality
RFx Templates / Events
Tailored dashboards
Event Execution and
Decision Support
Project management
Award mgmt (Contract / P2P)
AribaSupportandServices
AribaNetwork=~1.2MSuppliers
18 © 2014 Ariba – an SAP company. All rights reserved.

18. Ariba Procurement Content (Catalog):
Significant Usability Improvement
Solution Business Impact
 Several benefits for SAP employees:
Significant shopping experience improvement
Intuitive shopping flow, Clearly structured and transparent
user interface
Enhanced search via powerful web 2.0 search engine
with fuzzy logic
Flexible navigation structure based on commodity
requirements
Key features include the filtering of search results, comparison
of catalog items, saved shopping carts, favorites, and recently
viewed articles function
 Additional catalogs have been merged into the one
“multi-supplier" catalog (One Click, one view)
 Harmonized administration of all supplier catalogs in
one administrative view with full integration into the
Ariba network to enable better collaboration
19 © 2014 Ariba – an SAP company. All rights reserved.

19. Ariba Network:
Purchase Order Invoice Automation
Solution
 Transmission of purchase orders and receipt of
invoices using the Ariba network:
Business Impact
 Reduction of efforts on Accounts Payable with
regards to incoming invoice processing – touchless
postings based on defined business rules for
invoice validation
 Simplicity & Transparency: Self-service supplier
portal for real-time invoice/payment status
 Elimination of business risks and delays with
maximum degree of process automation
 Reduction of paper through fully electronic
documentation incl. archiving of e-invoices
 Fully integrated with SAP ERP ensuring document
traceability at all times
PI
Internal
ERP
Purchase
Orders
Invoices
Purchase
Orders
Invoices
Ariba
NW
Adapter
Purchase Orders
VIM
5.2
Invoices / Credit Memos
(PO/non-PO)
IDOC
ORDER
S05 cXML
cXMLDocSet*
Invoices InvoicesInvoice status
*DocumentSet containing base64-encoded INVOIC02 Idoc, PDF invoice, invoice attachments
20 © 2014 Ariba – an SAP company. All rights reserved.

20. • 62,475 invoices were posted since May, 2013
• 1,179 suppliers enabled since May, 2013
Business Impact
 Increase of the overall automation rate by 28%
(160k invoices out of 560k invoices)
 Automation leading to error and effort reduction
 2.500 invoices per week since beginning of 2014
 Huge momentum for the teams created by weekly
reporting
 1,179 top-suppliers enabled using pre-defined
enablement and communication process
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1-Jun-13 1-Jul-13 1-Aug-13 1-Sep-13 1-Oct-13 1-Nov-13 1-Dec-13 1-Jan-14
Thousands/Week
Invoice planned Invoice actuals Capacity planned Capacity actuals
Processed invoices December 19
In Six Months ~1,200 Suppliers
On-Boarded to Ariba Network
21 © 2014 Ariba – an SAP company. All rights reserved.

21. SAP Runs Ariba:
Benefits since Go-Live in June 2013
3 months implementation time using an SAP
rapid-deployment solution to connect to the Ariba Network
(record time)
Nearly 1,200 top suppliers of SAP are
already live on Ariba
First Ariba eAuctionled to significant
savings
More than €200m sourced via
Ariba
More than 700 m€ PO Value already
transmitted via Ariba
Nearly 170 m€ invoiced
via Ariba
Ambitious objectives defined: 50% increase in automation by 2014 and overall 20% productivity gain in end-
to-end P2P process by 2015
2,500Invoices / week
exchanged on the Ariba Network
More than 80K POs and 60K
invoices exchanged on the Ariba Network

22. A Powerful Combination
220,000+
Customers
€16.9B+
2013 total SAP revenue
63%
Of the world’s transaction
revenues touch an SAP system
34
Languages
65million
Invoices processed
annually
>1.2 million
Companies in 190 countries
$650B+
Commerce conducted annually
1,200
New network
suppliers weekly
23 © 2014 Ariba – an SAP company. All rights reserved.

23. Conclusion
•SAP’s Global Procurement Organization faces the same challenges as
any other Procurement organization in the world
•However, the degree of automation and transparency we gained from
implementing Ariba together with our SAP ERP and SAP SRM systems
gave us a lot of efficiency
•We could leverage our investments in existing systems, but at the same
time take advantage from innovations like HANA and Mobile
•The biggest effect we expect is from supplier collaboration and the
growing networking effects
24 © 2014 Ariba – an SAP company. All rights reserved.

24. Questions?
Contact information:
Dr. Steffen Klewitz
Vice President, Procure-to-Pay Strategy Group
Steffen.Klewitz@sap.com
25 © 2014 Ariba – an SAP company. All rights reserved.