Hyperconnectivity will reinvent the world economy; individuals, businesses, and societies are becoming interconnected in real time, leading to a new digital economy that is more collaborative, intelligent, responsive, and efficient with dramatic increases in productivity and economic value. The digital economy will transform the way we live and work, how business runs, and how society functions – and do this in a timeframe that is radically shorter than any other major economic transition in history.

1. #AribaLIVE
@ariba
The Digital Economy: How Hyperconnectivity Will
Change World
Dinesh Sharma, VP Digital Economy, SAP Labs, @sharmad
Rob Mihalko, VP Network Marketing, Ariba, Inc., @rmihalko
8th June 2015
© 2015 Ariba – an SAP company. All rights reserved.

2. Digital economy: The next economic revolution
1850
Industrial
economy
2020
Digital
economy
1990
Internet
economy
IT
economy
1970
$0.36T
$12.10T
All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.
$27.50T
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.
$90.0T
Gross
world
product

3. An era of unprecedented change fueled by hyper-connectivity
$65 trillion
Global business trade by 2020
2.5 billion
Connected people on social
networks by 2020
75 billion
Connected devices by 2020
“The Internet of Things”
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

4. Hyper-connectivity is everywhere
Innovators connecting people, devices and business
Société de Transport de Montréal
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5. Digital economy is…digitized and tracked
Digitize everything we touch.
Measure every move we make.
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6. Digital economy is… connected
Connect every device, system, and service we use
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

7. Digital economy is…shared
Use only what we need; pay as we go
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8. Digital economy is…personalized
Better convenience, choice, and value
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

9. Digital economy is…direct
Bypass “the middleman”
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10. Digital economy is
transforming people’s lives…
Better convenience, choice, and value
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

11. Digital economy is transforming society…
Increased efficiency, economic development, and problem solving
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

12. Digital economy is transforming business…
Greater customer loyalty, open innovation, and resource abundance
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

13. Digital economy extends far beyond efficiency benefits,
it fuels and accelerates dramatic growth
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

14. Transportation industry: Increase efficiency and growth
How do you handle 3X more containers without having to triple the port size?
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

15. Energy industry: Increase efficiency and growth
How do you manage million-dollar assets from hundreds of miles away?
Internal | © 2015 SAP SE or an SAP affiliate company. All rights reserved.

16. Plan for the digital economy now
Growth
Efficiency
Activate
(e.g., devices, equipment,
employees, products, channel,
suppliers, customers)
Optimize
(e.g., infrastructure utilization,
speed to market, customer
service, capital, workforce)
Transform
(e.g., business models,
customer experience,
offerings, processes,
production, distribution)
The new enterprise
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

17. Embrace the digital economy to
drive growth and efficiency
Activate Optimize Transform
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.

18. 18
How is the Digital Economy impacting
business collaboration and commerce?

19. YOUR TRADING
PARTNERS
Your
Company
YOUR
COMPANY
YOUR SYSTEMS
Lack of visibility into
spend by category
Lack of visibility into
total workforce
Lack of
compliance
Missed sales
opportunitiesPoor capital
management
Paper based
transactions
Inefficient manual
collaborations
Collaboration inefficiencies between companies are still prevalent

20. Business Networks
connect people, systems, and
processes between companies to
simplify business commerce…
for collaborative innovation in the
Networked Economy
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 20

21. Business Networks simplify business collaboration
Business
Networks
TRADING
PARTNER COMMUNITYYOUR COMPANY
YOUR SYSTEMS

22. Business Networks help companies’ top and bottom line...and much
more
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
41%
Improved
collaboration
across silos
55%
Better
information
sharing
24%
increased
revenue
77%
Increased
access to
knowledge
63%
Increased
marketing
effectiveness 43%
Greater
market
share
8%
Higher
margins
“Networked enterprises were 50% more likely than their peers to have increased
sales, higher profit margins, gain market share, and be a market leader.”
Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0 finds it’s payday.” Survey of
4,394 executives. December 2010

23. 23
Business Networks enable innovation

24. Business Networks Help Companies Become Good Corporate
Citizens
Sell
24
Business Networks help companies become
good corporate citizens

25. Business Networks Level the Playing Field
Buy
25
Business Networks level the playing field

26. 26
Business Networks stimulate community
interaction

27. Sell
27
Business Networks provide a window into
the Digital Economy

28. What Can You Do with Business Networks?
To transform your business …
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 28
… in the Digital Economy …
… the sky is the limit!

29. Thank you
Internal | © 2014 SAP SE or an SAP affiliate company. All rights reserved.
SAP DigitalEconomy SAP DigitalEconomy#DigitalEconomy

30. #AribaLIVE
@ariba
The Digital Economy: How Hyperconnectivity Will
Change World
Dinesh Sharma, VP Digital Economy, SAP Labs, @sharmad
Rob Mihalko, VP Network Marketing, Ariba, Inc., @rmihalko
8th June 2015
© 2015 Ariba – an SAP company. All rights reserved.

31. Sales /
Marketing Procurement Finance
Risk &
Compliance
Workforce
Management
Customer examples using Business Networks
$33M+ in services
cost savings
associated with $65M
in contingent spend
50% reduced in cycle
time to find diversity
sellers
Processing costs
reduced from $8 to
$2 per purchase
80% fewer people
required to support
compliance
98%+ touchless
invoicing -- integrate
with 8 SAP systems
worldwide
30% growth in
accounts
70% reduction in per
PO operating costs
75% reduction
in cycle time for labor
request with 20%
reduction in time-to-
fill
Reduced time to deal
with regulations from
years to weeks
>30% reduction in
BPO costs
Supply
Chain
Travel &
Expense
Reduced inventory
financing, excess
inventory, and
airfreight costs
Dramatically gained
visibility into direct
supplier relationships
Reduced time spent
entering expense
data by 12 hours
per week
Over 60%
reduction in
expense claim
processing times
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 32