Collaboration is absolutely essential for driving productivity and lifting financial performance in today’s ultra-competitive marketplace. Communicating more freely with customer, suppliers, and employees allows companies to draw on previously untapped capabilities to address existing challenges and spot new opportunities. Business networks have opened the door to this new way of collaborating and may be what differentiate the modern day competitor from competitors of the past. Learn how Ariba, the world’s business commerce network, is helping companies buy better, sell faster and leverage e-invoicing and dynamic discounting to manage their payments and receivables more strategically.

1. Positioning Yourself to Win in The
Networked Economy
October 2012
The Ariba Commerce Summit Event Series is Proudly Sponsored by:

2. Agenda
• Challenges that organizations are facing today
• Why is it important to embrace the Networked Economy
 Business Benefits
 Examples of companies benefiting from it today
• How to plan your Networked Economy Initiative
• Why partner with Ariba?
• Q&A
2 © 2012 Ariba, Inc. All rights reserved.

3. Organizations have focused since
the 1900s on increasing Free Cash
Flows 20-25% year on year…
• Every company has  Increase Working
initiatives to Capital Turns
Reduce inventories
Increase Revenue

  Reduce DSOs
– New customers  Increase credit period with
– New geographies suppliers
– New products
– New channels
 Optimize Capital
 Reduce Costs Expenditure
– Direct
– Indirect
– Services
3 © 2012 Ariba, Inc. All rights reserved.

4. We believe organization will need to look outside
their four walls for the next wave of productivity -
removing inefficiencies in the extended value
chain
Community
Technology Capabilities
1980’s 1990’s-2000’s Today
Desktop OS Backoffice OS Inter-Enterprise OS
“Employee Productivity” “Enterprise Productivity” “Value Chain Productivity”
4 © 2012 Ariba, Inc. All rights reserved.

5. We are already seeing this productivity
improvement in our personal lives
Shopping Finance
Communication
& Collaboration
Research
5 © 2012 Ariba, Inc. All rights reserved.

6. Analysts believe that Business Networks will
dramatically enhance productivity and value
of organizations
-- Buyers -- -- Suppliers --
-- Partners --
“Increase worker “Contribute up to Companies using
productivity by $1.3 trillion in business networks are
20-25%” value to reducing requisition to
businesses” order cost by 33%*
“The social economy: Unlocking value and productivity through social technologies,” McKinsey Global Institute, July 2012
* Supplier Networks v2.0: A Look at Commerce in the Cloud, “Aberdeen Group, April 2012
6 © 2012 Ariba, Inc. All rights reserved.

7. Organizations embracing business
networks are 50% more likely to be
market leaders
A Networked Enterprise – one that uses collaborative technology to
connect internal employee efforts to customers, suppliers, and partners.
Customers
Suppliers
Partners
The Networked Enterprise is 50% more likely to:
 Be a Market Leader
 Gain Market Share
 Achieve Higher Margins
 Increase sales
Source: “The Rise of the Networked Enterprise”, December 2010,
McKinsey; Jacques Bughin and Michael Chui
7 © 2012 Ariba, Inc. All rights reserved.

8. Benefits for buyers
 Ariba Discovery SOP for every  Cut costs in A/P by 75%  8 week go live for APC and PO
sourcing project  Processing 90% of global spend Automation to extend PeopleSoft
 16% average savings through Ariba Network  400+ suppliers enabled
 Added P2P, Invoice, Discount Mgmt.  Enabled VAT legal compliance  300+ catalogs enabled
 700 suppliers enabled – with 92%  Improved on time payment to >95%  Phase 2: Invoice Automation
actively transacting…within 1st year  Simplified and streamlined non-PO  $4.5 billion enabled over the
 Capturing discounts on 15% of spend invoice processing – achieved 96% Ariba Network
and >17% of suppliers touchless invoicing
 Avg. discount APR of 37.5% (tops  Captured pre-negotiated discounts
BIC ~23%)
 $1 million savings run rate…and
growing
8 © 2012 Ariba, Inc. All rights reserved.

9. Benefits for Sellers
Faster Payment Lower Customer Service Costs
eInvoicing eliminated rekeying, resulting in Reduced manual intervention and errors,
83% lower error rate which reduced DSO lowering processing costs from $8 to $2
by 75% per purchase
Reduced average DSO 5.6 days when Reduced Purchase order process from
using the Ariba Supplier Network several weeks to a few hours
Increase Sales Higher Customer Satisfaction
Gained 65% of its new clients directly as a Gained e-business compliance
resullt of its Ariba connection. 80% of by joining Ariba as a premium supplier
business now comes thru Ariba Network
Grew 300% in an account in 3 years while 99% customer retention rates – (10 to
saving the customer hundreds of 15% better than industry average, per
thousands in spend – a true win-win Forrester) and 30% growth in accounts
9 © 2012 Ariba, Inc. All rights reserved.

10. I am sure you have initiatives to
increase free cash flows
• Increase Revenue
• Reduce Costs
• Increase Working Capital Turns
• Optimize Capital Expenditure
10 © 2012 Ariba, Inc. All rights reserved.

11. You could benefit from the
networked economy too
Pick Your Starting Point
Assess Readiness
Gain Executive Sponsorship
Begin the Journey
Focus on Operational Excellence
11 © 2012 Ariba, Inc. All rights reserved.

12. Why partner with Ariba?
12 © 2012 Ariba, Inc. All rights reserved.

13. Q&
A
For more information contact your Ariba salesperson
Suggested reading:
“The social economy: Unlocking value and productivity through social technologies,”
McKinsey Global Institute, July 2012
“Supplier Networks v2.0: A Look at Commerce in the Cloud,” Aberdeen Group, April 2012
“Collaborate to Win: Creating Competitive Advantage in a Networked Economy,” CFO
Research, 2012
13 © 2012 Ariba, Inc. All rights reserved.