During this session, leaders from various organizations will discuss how to build a business case for a business commerce program that will provide significant opportunities for AP/Treasury, Procurement and Finance in order to bring together the three functions that have traditionally operated independently.

1. Building a Powerful Business Case that Resonates with All Key Stakeholders Stephen Ellesmere, Director of Business Commerce Enablement Services, Ariba © 2011 Ariba, Inc. All rights reserved.

2. Buyers and Sellers Have Common Goals © 2011 Ariba, Inc. All rights reserved. 2 Source Procure Pay Matchmaking Maximizing Negotiated Value Risk Management Compliance Process Efficiency Continuous Improvement Sell Fulfill Invoice &Collect

3. Yet Business Commerce Is Hard © 2011 Ariba, Inc. All rights reserved. 3 Source Procure Pay Wasted time and resource Lost negotiation history Poor visibility into compliance Manual ad hoc collaboration Delayed payment; Cash“mis-mgmt” Limited visibilityand risk Sell Fulfill Invoice &Collect

4. In the Next 24 Hours, Ariba Customers Will: Source and sell >$490 million of goods and services Conduct >105,000 purchase, sales and financial transactions Manage >4.5 million contracts Finance >$2.7 million in payments Save their companies >$70 million © 2011 Ariba, Inc. All rights reserved. 4

5. So How Does Difficult Become Easy? © 2011 Ariba, Inc. All rights reserved. 5 Roadmap Capability Direction SuccessPlan + + = VALUE

6. Who We Are What: Business Commerce Enablement is a company-wide operating model focused on the long term and sustainable health of our customers Why: We have a strong interest in our customers’ success No two customers are alike Our partnership approach unlocks more benefits Ariba and customers are undergoing an evolution, to become value-focused and outcome-obsessed How: The focus is on value identification, enablement and realization, with measurement ongoing to ensure the program is achieving stated objectives © 2011 Ariba, Inc. All rights reserved. 6 Identifying Value Realizing Value

8. Improve visibility into financial commitments to better forecast cash needs and accruals

10. Implement standard, repeatable buying processes (requisition, purchase order, invoice, pay) to ensure user compliance and to control maverick spending

11. Savings on one-time non-contract purchases through demand management and spot purchasing, as well as savings beyond contract at transaction level

13. Match invoice, PO, receipt and contract to ensure preferred terms are realized

16. Streamline and automate processes relieving administrative burdens

17. Electronic rules-based workflow to improve financial controls and approval efficiencies

18. Improve payment timeliness and invoice processing time

21. Reduced cost of sale

22. Shortened sales and contracting cycles

23. Increased win rate

25. Improved access to global network of qualified suppliers

27. Greater control of all spend types

28. Reduced transaction costs

30. Reduced fulfillment and customer service costs

31. Increased compliance

33. Reduced paper and manual processing

34. Improved efficiency and accuracy

35. Intelligent working capital management

37. Improved efficiency and accuracy

38. Greater visibility into invoice payment status

39. Faster payment

41. The BCE Framework Spans the Entire Program Lifecycle © 2011 Ariba, Inc. All rights reserved. 11 Architect – Design detailed future state for the key business components of people, processes, technology and performance management to achieve business case benefits, as well as plan for business process and org change Diagnostics – Analyze current environment to identify opportunities for improvement, propose future state operating model and success roadmap, and make the go/no-go decision based on the cost-benefit analysis Diagnostics Architect PEOPLE & ORGANIZATION PERFORMANCE MANAGEMENT VALUE Deploy – Implement the future state plan into the day-to-day practices of the organization to foster successful solution deployment and, ultimately, drive adoption and sustain business case benefits Improve – Evaluate operating environment, identify opportunities for improvement across all components of the organization and move forward to diagnose key areas PROCESS & POLICY TECHNOLOGY Deploy Improve

43. Finalize success plan details

44. Obtain executive support and approval

45. Gather client data

46. Complete questionnaire

47. Conduct stakeholder interviews

48. Perform diagnostic

49. Prepare for workshop

50. Conduct on-site workshop to refine:

51. Program vision

52. Program roadmap

53. Benefits estimate

54. Cost estimate

55. Return on investment

56. Executive summary

57. Confirm problem statement and desired outcomes

58. Review success planning process

59. Identify cross- functional stakeholder team

60. Obtain approval to proceedKey Activities

61. Perform AssessmentBased on Your Data and Your Current Business Landscape © 2011 Ariba, Inc. All rights reserved. 13

62. Build Success PlanOnsite Workshop – Sample Agenda © 2011 Ariba, Inc. All rights reserved. 14

65. Milestones

69. Recurring services (i.e. maintenance, landscaping, janitorial)

70. Office Equipment (Features/Options constrained by user type)

71. Telecom Equipment

72. Multi-Region/ Multi-Division Agreements

73. Office Supplies

74. IT

75. Temp Labor

76. Print

77. Facilities MaintenanceSpend Commodity Examples: Enablement Effort Medium-to-high Medium Medium Low - Medium Low Ariba Services Procurement Ariba Procure-to-Pay

78. Value Realization PlanPutting in Place a Category Flight Plan © 2011 Ariba, Inc. All rights reserved. 16 Beyond Wave I Wave III Wave II Example

79. Benefits AnalysisValue Levers © 2011 Ariba, Inc. All rights reserved. 17

80. Benefits AnalysisFully Ramped Annual Savings Estimates © 2011 Ariba, Inc. All rights reserved. 18 Identifying Value Realizing Value For comparison (addressable spend): Hackett estimates 4.4% savings for P2P Aberdeen estimates 14.3% material savings for Sourcing This would equate to $32M in P2P savings and $120M in material savings for Sourcing for Customer Example

81. Program Scope, Timeline and CostsCustomer Profiling © 2011 Ariba, Inc. All rights reserved. 19 Customer Driven Assisted Enablement Partnered Enablement Comprehensive Enablement Typical Program Characteristics Limited scope Minimal complexity Conservative timeframe Experienced, well-staffed deployment and steady state customer team Limited adoption risk Typical Program Characteristics Medium scope Medium complexity Normal timeframe Well-staffed team, but limited eProcurement experience Some adoption risk Typical Program Characteristics Large scope High complexity Aggressive timeframe Limited resource availability with limited eContracts experience High adoption risk Ariba Driven Many customers request a scope overview and pricing prior to completing the discovery process in the sales cycle. This leads to a solution that may not fit the customer’s needs or value proposition, as well as the potential for misaligned expectations. In Ariba’s experience, customers fall into one of three tiers based on their enablement needs.

83. Governance

84. Executive sponsorship and organizational buy-in

85. Availability of resources to dedicate to project

86. Staff tenure

87. Level of process documentation and policy enforcement

88. Track record of driving business change

89. Business and IT working relationship

91. Spend volume

92. Invoice volume

93. Geography impacted

94. Level of process automation

95. Fragmentation of supply base

96. Functional areas/ solutions involved

97. Number of systems for integrationComprehensive Enablement Highly complex project with a low degree of capabilities and organizational readiness on a large scale Partnered Enablement Highly complex and large scope project accompanied by a high degree of internal capabilities and readiness High Magnitude of Scope / Complexity Partnered Enablement Moderately complex and smaller scope project coupled with a low degree of internal capabilities and readiness Assisted Enablement Moderately complex project with a small scope and a high degree of internal capabilities and readiness Low Low High Degree of Readiness/Presence of Required Capabilities

99. Communication

101. Master Data Management

102. PO & Receipt Import

104. Master Data Mgmt/ Integration

105. Configuration/ Service/ Enhancement Requests

106. Dashboard Development

107. Scheduled Reporting

108. Supplier Enablement

109. Catalog Set Up, Validation, Publication

110. Contract Creation

111. Certify Supplier Integration/Testing

112. Supplier Training

113. Balanced Scorecard

114. KPI & Benefits Tracking

115. Spend Analytics Opportunity Assessments

116. Compliance Reporting

117. eSourcing event support & strategy

118. Category design for P2P enablement

119. Stakeholder/Change Management

120. Policy & Procedure Development

121. Coaching local enablement leads

122. Communications & Training

123. Survey Execution

124. Scorecard Definition & Population

125. Continuous Improvement Reviews with Strategic Suppliers

126. Legacy Contract Load

127. Clause Library Management

130. Process cost reduction (e.g. in AP)

131. Forced spot sourcing for certain types of purchase

133. Stakeholder engagement

134. Event optimisation

137. Questions © 2011 Ariba, Inc. All rights reserved. 25

138. “Safe Harbor” and Confidential Information Statement This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. © 2011 Ariba, Inc. All rights reserved. 26

139. Building a Powerful Business Case thatResonates with All Key Stakeholders Stephen Ellesmere, Director of Business Commerce Enablement Services, Ariba © 2011 Ariba, Inc. All rights reserved.