A revolution is under way where businesses and their systems are connecting to digital communities of existing and potential partners. In this world:• Sellers quickly find new business opportunities with a network of purchase-ready prospects • Buyers efficiently discover new sources of supply and coordinate orders across their supply chains — all in real-time • Companies can have transparency into payables and receivables to make better working capital decisions In this session we will investigate the key elements that allow the emerging leaders to embrace the new world of Networked Business, and what steps you must take to continue to flourish.

1. The New World of the Networked Business
A revolution is under way where businesses and their systems are
connecting to digital communities of existing and potential partners.
In this world:
• Sellers quickly find new business opportunities with a network of
purchase-ready prospects
• Buyers efficiently discover new sources of supply and coordinate orders
across their supply chains — all in real time
• Companies can have transparency into payables and receivables to make
better working capital decisions
In this session we will investigate the key elements that allow the emerging
leaders to embrace the new world of Networked Business, and what steps
you must take to continue to flourish.

2. The New World of the Networked Business
Michael Fauscette,
IDC
Group VP, Software Business Solutions
about.me/mfauscette
@mfauscette
© 2013 Ariba, Inc. All rights reserved.

3. Ariba Collaborative Value Chain – Direct, Indirect, Services
© 2012 Ariba, Inc. All rights reserved. 3
Buyer’s Processes: Analyze to Pay
Supplier’s Processes: Market to Cash
The Ariba Network is the world’s largest Business Network, allowing
Buyers and Sellers to become more efficient across their Buying,
Selling, and Cash Management Processes

4. Ariba Collaborative Value Chain – Direct, Indirect, Services
© 2012 Ariba, Inc. All rights reserved. 4
•Spend Data
Enrichment
•Spend
Analysis
•Contract
Collaborat
ion
•Authoring
•Repository
•Requisition
Ownership
•Catalog
Compliance
•Contract
Compliance
•Approv
al
Workflo
w
•PO
Collaborat
ion
•PO
Transmissio
n
•Goods &
Services
Receipt
•Invoice
Receipt
•Invoice
Compliance
•Invoice
Approval
•Exception
Workflow
• Awareness
Marketing
•Lead
Collaborat
ion
•Proposal
Collaborat
ion
•Bidding
Opportunit
y
•Contract
Collaborat
ion
• Contract
Repository
•Catalog
Collaborat
ion
•Catalog
Syndication
•Requisition
Collaborat
ion
•Specificati
on
Negotiation
•Order
Collaborati
on
•Order
Status
•Invoice
Delivery
•Invoice
Collaborat
ion
•Supplier Info;
Performance Mgmt;
Supplier Research
•Company Profile Mgmt
•Customer Account Management
Buyer’s Processes: Analyze to Pay
Supplier’s Processes: Market to Cash
•Payment
Collaborat
ion
•Discount
Collaborat
ion
•Payment
Collaborat
ion
•Payment
Visibility
•Working
Capital
Collaborat
ion
•Category /
Project
Mgmt
•RFI / RFP /
Auction
Collaborati
on
•Savings
Tracking &
Pipeline

5. Delivering Measurable Benefits
Value to Companies of All Sizes, Industries, Regions
Supplier ValueBuyer Value
Sourcing
Procurement
Process
AP Process
Compliance
WCM &
Discount
3-9%
Process
Savings
$3-20
Savings/
Document
1-8%
Spend
Savings
Total
Savings
Faster
Payment
AR Process
Processing
Orders
Sales &
Marketing
Increased
Revenue
15-75%
Time
Savings
15-75%
Process
Savings
5-32%
Revenue
Increase
Total
Savings
Source: Ariba customer surveys and interviews
© 2013 Ariba, an SAP Company. All rights reserved.5

6. The Information Revolution
Economic changes
Technology changes
Social Changes
© IDC 2013
6

7. Mobility
The Social Web
Cloud Computing
Big Data/Analytics
Consumerization of IT and ITization of Consumers
ENTERPRISE CONSUMER
Create content, work
anywhere, connect
Real-Time, continuous collaboration,
New behaviors, influence
BLENDED
7

8. Changing Expectations

9. The Social Impact on Business Dynamics
9
consumer social principles
business operations and
interactions
Social Business Transformation

10. Productivity Growth vs. Jobs Growth
Source: U.S. Customer Care BPO Services Survey, August 2011
10
Productivity
Gap

11. We can’t ignore social anymore
© IDC 2013 11
Indicate the likelihood of your organization deploying a corporate
sponsored enterprise social network?
N=701, IDC Social Software Survey,, February 2013
79%
28% have more
than one!

12. Why?
12© IDC 2013
Q: Why do you conduct social media/networking initiatives for business
purposes? (Select all that apply)

13. © IDC Visit us at IDC.com and follow us on Twitter: @IDC 13
Q. What specific initiatives are you planning to conduct using social software
for BUSINESS purposes in the next 12 months?
N=701, IDC Social Software Survey,, February 2013
0% 5% 10% 15% 20% 25% 30% 35% 40%
Internal gamification (particularly behavior analytics)
External Gamification (particularly behavior analytics)
Internal micro-blog
External micro-blog for marketing / customer…
Crowdsourcing
External Discussion forum
"Innovation Management (more complex than…
Prediction market
Internal Discussion forum
Geo-Social networking
"Ideasourcing (tools that are used to collect ideas/…
File/Content sharing service
Blog/Wiki
Online office productivity
Peer feedback
Web broadcasting
Enterprise Social Network (including activity streams)
Web chat/voice/video over IP applications (including…
Recruiting
Socialytics (analytic tools and applications used to…
Application/Video Sharing
Public social network for marketing /customer…
Social Learning
Online communities

14. Social Business Impact on Business Process
Internal
Users
External
Users
Employee-Focused Customer-Focused
Enterprise social network
Innovation management
Talent
Digital commerce
Customer experience management
Source: IDC’s Social Business Taxonomy, 2011 (IDC # 230541, October 2011)
Socialytics (network behavior, content, social data, customer behavior)
14
Supplier networks

15. Enterprise Systems Are Changing
15
Automation
Limit
Systematic
support for ad
hoc decisions

16. Analytics
16
 Shift from finding
information to
discovering insight
• For Example:
Identifying weak
signals

17. Making Decisions
17
Respond
Open System
Decision
People and Data in Real or Near Real Time and in Work Context

18. 18
The Connected Enterprise
• Cloud Enabled
• Networked
• Flexible and Nimble
• Innovative

19. Barriers
 Culture
 Threatens traditional models of power & control
 Misaligned Priorities, Initiatives & Incentives
 Inside the ―box‖
 Silos

20. Essential Guidance
• Decision Support is business critical
• Change management is the key to adoption
• Leverage the Power of Networks
• Connect outside in and inside out
• Silos are the enemy
• Technology isn’t enough – culture and process

21. Michael Fauscette
Group Vice President
Software Business Solutions
mfauscette@idc.com
@mfauscette
about.me/mfauscette
Thank You
Blog: www.mfauscette.com
IDC Social Business Blog
https://idc-insights-
community.com/groups/it_agenda/social-business

22. 22
Questions?
© 2013 Ariba, Inc. All rights reserved.