You’ve implemented ecommerce, you’re satisfying your customers’ requests, but what is the impact to your organization? In this session you will learn how other companies have built an eCommerce team to quickly, efficiently and effectively respond to multiple and various buyer ecommerce integration requests and how they scorecard key performance indicators to document the value to your leadership.

1. #AribaLIVE
Building and Measuring the
eCommerce Teams Success
Alexander Graff, Head of Product Management, Schweitzer
Lorenz Straub, eSales Procurement Leader, IBM Online
Commernce, DACH
10 April 2014
© 2014 Ariba – an SAP company. All rights reserved.
@ariba

2. BUILDING AND MEASURING THE
ECOMMERCE TEAMS SUCCESS
Alexander Graff, Head of Product Management, Schweitzer
© 2014 Ariba – an SAP company. All rights reserved.2

3. Speaker
© 2014 Ariba – an SAP company. All rights reserved.3
Alexander Graff, Head of Product Management
Schweitzer Fachinformationen
Alexander’s current role is the definition and development of new
Schweitzer products to meet changes in customer and user behavior.
He also acts as the in house E-Procurement expert.
Alex was leading Schweitzers Corporate business for 5 years (mainly
e-Procurement-based) and then left to head a technology based
procurement services company for 1,5 years. With the buy-side
experience gained he now rejoined Schweitzer to support the evolution
of the companies products to adjust to the changes in user behavior and
demands. His original background is software development.

4. What We Do?
4
Provide companies with catalogue, process and content to
implement the best way to buy and use all external knowledge
(professional information)

5. Facts and Figures about Schweitzer
• Founded in 1868 (pre e-procurement era)
• Since 1972 owned by the C.H. Beck publishers
• 24+ sites in Germany
• 1 site in the US
• Volume 184 million Euro
• 600 staff
5

6. What We Deliver to Our Customers
6
Find. Get. Use. … and kill the iceberg

7. First Encounter 2002-2007: Invest
• Comply with customers request
• Use external experts (software firms)
• E-Procurement outside + oldschool inside = bad
• Small volume per customer (!)
• Good: improved retention + USP in sales
© 2014 Ariba – an SAP company. All rights reserved.7

8. Maturity 2007-2011:
Celebrating e-Pro
• We “sold” E-Procurement and partnered with
e-Pro firms
• Built internal team (programme,
specialists/helpdesk, project managers)
• Trained backoffice and sales
• Improved internal processes
• Still: Small volume per customer (!)
• Developed e-Procurement specific services/tools
© 2014 Ariba – an SAP company. All rights reserved.8

9. Programme Manager
• Deep understanding of background and
development of e-Procurement market
Project Manager
• Classic project management skills
• Knowledge of e-procurement platforms,
providers & e-commerce basics
• Deep understanding of the process
• Technical understanding of
E-Document interchange, catalogue formats,
PunchOut interfaces and methods, ERP order to
invoice cycle
Maturity 2007-2011:
Celebrating e-Pro
© 2014 Ariba – an SAP company. All rights reserved.9
Helpdesk/support team
• Detailed knowledge about
e-Procurement “technicals”
Different e-document formats (xCBL, cXML, EANCOM,
IDOC/XML, …
Catalogue formats: CIF, BMECat
Platform specifics, i.e., what to do to provide a PunchOut
catalogue via CIF to ASN
• Good understanding of software
development “can dos”
Interface to the software engineers
• Experts in using/configuring our
in-house eCommerce platform

10. 2011: The Hangover
• Volume per customer relatively small
• High maverick buying quota (sometimes in
our favor)
• Customers adding complexity
(“expensive customer”)
• Still inefficient internal processes
• Projects instead of products (“so not Amazon”)
• USP diminishing
© 2014 Ariba – an SAP company. All rights reserved.10

11. 2011: The Hangover –
How to Measure It
© 2014 Ariba – an SAP company. All rights reserved.11
KPI Measured Performance Target
Volume Capture Ratio anual volume/ expected
volume
10% 80%
Volume Margin Total profit margin (has to do
with volume coverage also)
below 20%
Customer Cost
Recurring
Cost of customer specifics
(logistics, manual labor).
Ratio cost/volume
above <10%
Customer Cost
Project
Total cost of customer project
(software development/not
reusable, daily rate PM)
Ratio cost/avg. annual volume
(target)
XX% 20%

12. 2011: The Hangover –
How to Measure It
© 2014 Ariba – an SAP company. All rights reserved.12
KPI Measured Performance Target
Internal Cost Cost of not customer specific
processes to handle the volume
(order processing, basic s&h,
manual labor, system
maintainance, system support)
XX% YY%
USP “worth” % of leads won for “technical
reasons” as opposed to
pricing/others
80% 50%

13. © 2014 Ariba – an SAP company. All rights reserved.13

14. Volume Per Customer
Relatively Small
• Benchmark formula on expected consumption
(simplified):
Size (FTE) X consumption/FTE X industry lever X customer
specific lever
Industry lever tables set up based on customer research
• Introduced sub category checklist
• 10%-80% covered (customer interview,
comparision, data mining)
© 2014 Ariba – an SAP company. All rights reserved.14

15. High Maverick Buying Quota
• Discuss volume targets and measure them
• Capture all purchases using freetext-catalogue
item facilities
• Create user-checklists (department, returning
recipients, users ordering vs. users seeing the
content/ e-procurement users)
• Other industries: advance rebates
© 2014 Ariba – an SAP company. All rights reserved.15

16. Customers Adding Complexity
• Got aware of their view (general) and teach them
the specifics
I.e., PunchOut vs. Static
• Open book on numbers and processes
• Introduced an industry novelty: The Service Model
Define 12 key features
Define three products Basic, Professional, Enterprise
“attach” the features to the products (feature packages)
© 2014 Ariba – an SAP company. All rights reserved.16

17. The Schweitzer Service Model
© 2014 Ariba – an SAP company. All rights reserved.17

18. USP Diminishing
© 2014 Ariba – an SAP company. All rights reserved.18
• Think ahead
• Forget your e-Procurement enthusiasm and
start with the customer, and the basics of
your business
• You will see: it fits!
• E-Procurement does deliver: customers, faster
sales and improved retention – but not right at
your door with no work(out)
• Use business networks to FIND customers

19. 2012+: Improvements
© 2014 Ariba – an SAP company. All rights reserved.19
KPI Measured Performance Target
Volume Capture Ratio annual volume/
expected volume
10%  50% 80%
Volume Margin Total profit margin (has to do
with volume coverage also)
Almost there 20%
Customer Cost
Recurring
Cost of customer specifics
(logistics, manual labor).
Ratio cost/volume
Matched
(Rest is/was invoiced)
<10%
Customer Cost
Project
Total cost of customer project
(software development/not
reusable, daily rate PM)
Ratio cost/avg. annual volume
(target)
Work to do 20%

20. 2012+: Improvements
© 2014 Ariba – an SAP company. All rights reserved.20
KPI Measured Performance Target
Internal Cost Cost of not customer specific
processes to handle the volume
(order processing, basic s&h,
manual labor, system
maintainance, system support)
Still too high YY%
USP “worth” % of leads won for “technical
reasons” as opposed to
pricing/others
80%  50% 50%

21. BUILDING AND MEASURING THE
ECOMMERCE TEAMS SUCCESS
Lorenz Straub, eSales Procurement Leader, IBM Online Commernce, DACH
© 2014 Ariba – an SAP company. All rights reserved.21

22. Lorenz Straub, eProcurement Sales Leader, DACH
• Lorenz brings more than 8 years experience within eCommerce.
• First as a front-line web seller, working with and consulting with
some of the largest Swiss clients on enabling and improving their
eprocurment strategy and capabilities.
• The last few years Lorenz has held several management and
operational leadership positions frist within the Swiss-Austrian team
and recently within the DACH team.
• In his current roles, Lorenz partly managing the B2B
implementations across DACH, while at the same leading several
pan-European projects.
© 2014 Ariba – an SAP company. All rights reserved.22

23. IBM and eCommerce
• Well established Capabilities
Multiple web based workflow solutions
to assist buyers in pre-ordering, P2P
management and post-payment
transactions
Enterprise Gateway for integrated
communication between direct Clients,
Business Partners and IBM
Over 4800 connected Clients doing
electronic business with IBM
© 2014 Ariba – an SAP company. All rights reserved.23

24. Online Commerce
• Global organisation with local reach
Local teams can work directly with Clients
Good communication between teams –
supported by both regional and global
leaders – ensures multi-national coverage
Common solutions, tools and
measurements guarrantee uniform
deployment and helps drive customer
satisfaction
© 2014 Ariba – an SAP company. All rights reserved.24

25. Roles and responsibilities
• Local level
Sellers/Consultants – leading the Client dialogue and aligning internal teams to support
enablement
Architects/solution leads – making sure the web solutions meet needs of the client and LoB
• Regional/Global level
Sales leaders – responsible for eCommerce funding from LoB, cross country alignment,
solution industrialisation
Analysts, communication experts, etc
© 2014 Ariba – an SAP company. All rights reserved.25

26. Supporting the Services business
through web based workflow solutions
• A big part of the business is around
large service contracts. Web
solutions to support:
Request for Services
Scope of Work
Application Management
© 2014 Ariba – an SAP company. All rights reserved.26

27. Another area where web solutions are
critical is post-order management
• IBM has numerous web solutions to
support
Software Licence management
Maintenance
Ticketing and error reporting
© 2014 Ariba – an SAP company. All rights reserved.27

28. Expanding the procure-to-pay
capabilities
• A maturing market requires increasing
coverage beyond order and invoice support
Basic ordering and invoicing across multiple
communication channels
Change/Cancel, Shipment and Delivery Notification
• Integration on Services procurement is the
next big thing
© 2014 Ariba – an SAP company. All rights reserved.28

29. Defining targets and track points is key
to success
• Ensure KPIs cover the main points
of the business
Cover sponsors
– Clients boarded, business areas covered
Cover Sales Management
– Revenue attainment, Clients boarded,
engagement cycle time
• Set up and manage SETMET
program
Manage Client expectations
Improve individual and structural
challenges
© 2014 Ariba – an SAP company. All rights reserved.29

30. Tracking Client coverage
• A typical sales organisation will
have many entry points and
contacts into the client
• Focus main activities on a select
number of Clients, but enable all
that come forward
• Build a tracking system to
capture your engagements
© 2014 Ariba – an SAP company. All rights reserved.30

31. Communicate your success
• Use internal communication
channels to show case Client stories,
technical achievements and results
• Gain Sponsor support from Line of
Business and other key stakeholders
• Communicate, communicate,
communicate
© 2014 Ariba – an SAP company. All rights reserved.31

32. Questions
© 2014 Ariba – an SAP company. All rights reserved.32