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Expanding Your Network
Adoption Globally
Toni McGovern - Sr. Technology Integration Manager, Johnson and Johnson
Aaron Ulm - Sr. P2P IT Manager, Johnson and Johnson
March 19, 2014

#AribaLIVE
@ariba

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

•

Our Journey with Ariba




•

Our Future with On-Demand





2

Our Start
Enabling for Expansion
Global Rollout
Case for Change
Hurdles to Overcome
Getting Started with a Hybrid Approach
Our End State

© 2014 Ariba – an SAP company. All rights reserved.
Johnson & Johnson
Corporate Overview

•
•

Global Healthcare Company
4 Operating Groups:
Medical Diagnostics & Devices
♦ Medicines & Nutritionals
♦ Consumer
♦ Non-Operating (Corporate functions)
♦

•

Two Instances of Ariba Buyer
♦
♦

3

The Americas and AsPac
EMEA

© 2014 Ariba – an SAP company. All rights reserved.
History of Ariba at J&J
•
•
•
•
•
•
•
•

2001 Spring – Initial US Implementation of Buyer 7.0.x
2001 Fall – Upgrade to Version 7.0.6
2001 – Initial limited EMEA Implementation of Buyer 7.0.x
2004 – Upgrade to Version 8.1
2005 – Upgrade to Version 8.2.2
2006 – Integrated EMEA model - relaunch
2010 – Upgraded to Version 9r1
Over the years, 50+ Builds (collections of enhancements and bug fixes) have resulted in
– 40+ eforms (administrative, end user)
– 200+ catalogs (globally)
– 5 Regions requiring regional customizations
– US/PR, EMEA, AsPac, Canada & Latin America

•
4

2013 – Began assessment for an integrated suite of tools

© 2014 Ariba – an SAP company. All rights reserved.
Our Journey With Ariba: Enabling
for Expansion
•
•
•

5

Business Unit
Flexible Accounting
Flexible Approvals

© 2014 Ariba – an SAP company. All rights reserved.
Our Journey with Ariba: Global Rollouts
Our Future with On-Demand: The Case
for Change

7

© 2014 Ariba – an SAP company. All rights reserved.
Aligning with ESP

8

© 2014 Ariba – an SAP company. All rights reserved.
Sourcing
Expansion

ESP: Accelerated achievement of operational efficiencies for reinvestment in our
Sourcing –
Increased Capturebusiness, our people and to mitigate
economic pressures. Savings generated from sourcing events
$$$
using an eSourcing platform and prescribed processes.

Deploy Ariba
Services
Procurement

Collaborative
Sourcing
$$

ESP: Enhanced capabilities to meet critical business needs
Savings derived from improved supplier collaboration, spot market arbitrage with detailed
specifications and pricing for complex services; 3 bids/buy with pre-contracted suppliers.

Catalog
Expansion

User
Compliance
$

ESP: Enhanced capabilities to meet critical business needs
Improved user experience and focused program to drive increased compliance to contracts with
preferred supplier through catalogs and visibility to contracts where needed.

Contract
Compliance

Supplier
Compliance
$$

ESP: Enhanced capabilities to meet critical business needs
Compliance to contract pricing and terms that would have otherwise resulted in paying more for
goods or services. Integrated system which allow information to flow automatically without user
manual entry

Cost of
Ownership

TCO
$*

Potentially reduce maintenance of redundant systems*
Improve ability to scale into emerging markets
*Pending full roadmap deployment schedule

Supplier
Relationship
Management

SRM
+

ESP: Process simplification and standardization
to reduce complexity and ensure quality
Enable the globally designed SRM process

Requires End to End Integration for Maximum Savings

End-to-End Value Proposition:
Our Future With On-Demand: Hurdles
to Overcome
•
•
•
•
•
•
•

10

eForms and Self-Service Functionality
Behind-the-Firewall Validations
Invoice Reconciliation
Advanced Capabilities
Master Data Maintenance
Funding the project
Aligning the functionality of the two Ariba instances

© 2014 Ariba – an SAP company. All rights reserved.
Our Future With On-Demand: Getting
Started with a Hybrid Approach

11

© 2014 Ariba – an SAP company. All rights reserved.
Our Future with On-Demand: Our End State

12

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

13

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

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Expanding Your Network Adoption Program Globally

  • 1. Expanding Your Network Adoption Globally Toni McGovern - Sr. Technology Integration Manager, Johnson and Johnson Aaron Ulm - Sr. P2P IT Manager, Johnson and Johnson March 19, 2014 #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
  • 2. Agenda • Our Journey with Ariba    • Our Future with On-Demand     2 Our Start Enabling for Expansion Global Rollout Case for Change Hurdles to Overcome Getting Started with a Hybrid Approach Our End State © 2014 Ariba – an SAP company. All rights reserved.
  • 3. Johnson & Johnson Corporate Overview • • Global Healthcare Company 4 Operating Groups: Medical Diagnostics & Devices ♦ Medicines & Nutritionals ♦ Consumer ♦ Non-Operating (Corporate functions) ♦ • Two Instances of Ariba Buyer ♦ ♦ 3 The Americas and AsPac EMEA © 2014 Ariba – an SAP company. All rights reserved.
  • 4. History of Ariba at J&J • • • • • • • • 2001 Spring – Initial US Implementation of Buyer 7.0.x 2001 Fall – Upgrade to Version 7.0.6 2001 – Initial limited EMEA Implementation of Buyer 7.0.x 2004 – Upgrade to Version 8.1 2005 – Upgrade to Version 8.2.2 2006 – Integrated EMEA model - relaunch 2010 – Upgraded to Version 9r1 Over the years, 50+ Builds (collections of enhancements and bug fixes) have resulted in – 40+ eforms (administrative, end user) – 200+ catalogs (globally) – 5 Regions requiring regional customizations – US/PR, EMEA, AsPac, Canada & Latin America • 4 2013 – Began assessment for an integrated suite of tools © 2014 Ariba – an SAP company. All rights reserved.
  • 5. Our Journey With Ariba: Enabling for Expansion • • • 5 Business Unit Flexible Accounting Flexible Approvals © 2014 Ariba – an SAP company. All rights reserved.
  • 6. Our Journey with Ariba: Global Rollouts
  • 7. Our Future with On-Demand: The Case for Change 7 © 2014 Ariba – an SAP company. All rights reserved.
  • 8. Aligning with ESP 8 © 2014 Ariba – an SAP company. All rights reserved.
  • 9. Sourcing Expansion ESP: Accelerated achievement of operational efficiencies for reinvestment in our Sourcing – Increased Capturebusiness, our people and to mitigate economic pressures. Savings generated from sourcing events $$$ using an eSourcing platform and prescribed processes. Deploy Ariba Services Procurement Collaborative Sourcing $$ ESP: Enhanced capabilities to meet critical business needs Savings derived from improved supplier collaboration, spot market arbitrage with detailed specifications and pricing for complex services; 3 bids/buy with pre-contracted suppliers. Catalog Expansion User Compliance $ ESP: Enhanced capabilities to meet critical business needs Improved user experience and focused program to drive increased compliance to contracts with preferred supplier through catalogs and visibility to contracts where needed. Contract Compliance Supplier Compliance $$ ESP: Enhanced capabilities to meet critical business needs Compliance to contract pricing and terms that would have otherwise resulted in paying more for goods or services. Integrated system which allow information to flow automatically without user manual entry Cost of Ownership TCO $* Potentially reduce maintenance of redundant systems* Improve ability to scale into emerging markets *Pending full roadmap deployment schedule Supplier Relationship Management SRM + ESP: Process simplification and standardization to reduce complexity and ensure quality Enable the globally designed SRM process Requires End to End Integration for Maximum Savings End-to-End Value Proposition:
  • 10. Our Future With On-Demand: Hurdles to Overcome • • • • • • • 10 eForms and Self-Service Functionality Behind-the-Firewall Validations Invoice Reconciliation Advanced Capabilities Master Data Maintenance Funding the project Aligning the functionality of the two Ariba instances © 2014 Ariba – an SAP company. All rights reserved.
  • 11. Our Future With On-Demand: Getting Started with a Hybrid Approach 11 © 2014 Ariba – an SAP company. All rights reserved.
  • 12. Our Future with On-Demand: Our End State 12 © 2014 Ariba – an SAP company. All rights reserved.
  • 13. Discussion 13 © 2014 Ariba – an SAP company. All rights reserved.