You've invested heavily in an ERP's eProcurement capabilities, yet managed spend remains unacceptably low. Join this session to explore how today’s thought leaders have enhanced their current ERP systems to improve adoption, visibility, and compliance across traditional spend areas and complex services.

1. Maximizing the Value of Your ERP Jason Wolf John Lark © 2011 Ariba, Inc. All rights reserved.

2. © 2011 Ariba, Inc. All rights reserved. 2 <Speaker Name> I will update tmo….

3. © 2011 Ariba, Inc. All rights reserved. 3 Agenda Market Directions – Extending ERP Capabilities Learningsfrom other Leaders Case Study Questions / Open Forum

4. The Segmented Procurement Landscape Complexity / Need for Procurement Effectiveness Each spend segment has unique business process needs Spend Categories Spend Need for Simplicity, Scale and Procurement Efficiency Strategic Goods & Services General Indirect Complex Services Infrequent Goods & Services MRO Number of Suppliers Simple Services

7. North America

8. EMEASource: IDG Research, The Cloud and the CIO Report, 2011-April

10. Higher Costs

12. Inefficient processes

14. Total Number of Documents © 2011 Quadrem International, Ltd. 9

15. Global Adoption Trends P2P ratio: For every1 Order Document, how many other related documents are sent between the Buyers and Supplier N America Europe 3.4 : 1 2.1 : 1 5.5 : 1 6.2 : 1 Africa South America West 2.6 : 1 Australasia Brazil 3.2 : 1 10 © 2011 Quadrem International, Ltd.

17. Capture 3x more discount savings

18. Facilitate paperless procurement and invoice compliance

19. Ensure Contract Rate Compliance & eliminate Maverick Buying

20. Optimize working capital

22. Reduce receivables costs 75%

23. Get paid up to 70% faster

24. Increase Wallet Share – eliminate price issues

25. Improve visibility and control

26. Automate Order-to-Cash process

27. Access new business opportunities with largest buying community

28. Strategic platform for growth11 © 2011 Ariba, Inc. All rights reserved.

29. Lessons from Other Leaders Supplier Value Buyer Value Albemarle Walt Disney Corporation Pfizer © 2011 Ariba, Inc. All rights reserved. 12

30. 13 © 2011 Ariba, Inc. All rights reserved.

31. Decisions © 2011 Ariba, Inc. All rights reserved. 14

32. Results © 2011 Ariba, Inc. All rights reserved. 15

33. Top Learnings: This needs to be a business-driven decision with a standard global business model – Disney, Pfizer Focus intensely on the user experience to drive adoption and achieve target results – Disney Schedule design reviews to avoid, “I didn’t think it would work like that.” – Pfizer Know who will do the “IT Stuff” (maintenance, updates, etc.) - Disney You need an ERP expert on your project team. Extract and review the ERP master data immediately to uncover data-related issues – Pfizer Words of advice: Focus on the user experience and results will follow - Disney Ariba Technology Great But in Parallel Training Need for Own Staff to Support - Albemarle You are only as strong as your strongest link - Pfizer © 2011 Ariba, Inc. All rights reserved. 16

34. Case Study © 2011 Ariba, Inc. All rights reserved. 17

35. Session Objectives Look at a real-life case study for a Global Steel Manufacturer based on augmenting 12 SAP ERP systems deployed across Europe There are two central focal points: Improving Collaboration (internal and external) Improving Processes Savings for this initiative were based on three pillars Increase Compliance Improve Visibility Drive Efficiency © 2011 Ariba, Inc. All rights reserved. 18

37. Outsourced AP to competitive priced provider

39. 1 Million invoices

40. € 23 Billion in invoices

42. Outsourced AP to competitive priced provider

44. 1 Million invoices

45. € 23 Billion in invoices

47. 1 Million invoices

48. € 23 Billion in invoices

49. Avg 8,065 invoices per year

50. Increase catalogs usage to drive greater compliance - 500 with same FTE’s

51. Increase connectivity / visibility with suppliers

52. Simplify status updates (delivery & payment)

53. 35 plus fax servers connected to SAP

54. 83k PO per month

55. 5 FTE’s managing 125 catalogs21 © 2011 Ariba, Inc. All rights reserved.

57. 3 separate logins

58. 3 separate process

59. 3 separate supplier enablement approachesCollab Requests Catalog Mgmt Catalog Upload Catalog Change Supplier Buyer Filters Invoicing Invoice Supplier Credit Memo Collab Requests

60. So what changed? © 2011 Ariba, Inc. All rights reserved. 23 The SAP IT team was attending sessions conducted by the AP / eInvoice team as well as Procurement. The focus of both initiatives was similar: improve internal and external collaborations with stakeholders. IT simply asked, is there value connecting these processes?

61. Collaboration OptionsStandardized Approach Purchasing PO Change Order Cancel Order PO Supplier Change Order Order Conf Cancel Order Adv Ship Not Collab Request Collab Requests Single Connection Payment Status Supplier Catalog Mgmt Order Conf Adv Ship Not Catalog Upload Invoice Catalog Change Supplier Buyer Filters Credit Memo Invoicing Purchasing Invoicing Catalog Mgmt Invoice Supplier Credit Memo Collab Requests 24 © 2011 Ariba, Inc. All rights reserved.

62. © 2011 Ariba, Inc. All rights reserved. 25 Connecting the Processes Moving from 2 parallel processes to a single automated flow Procurement Accounts Payable Invoicing From Actual (+30% Mismatch) Status PO Change / Cancel Scanning ving Invoice Catalog Appro To Actual (+90% touchfree) Real-time Validation g Invoice Status PO Change / Cancel Status Approving Catalog

63. Collaborative Benefits: the Value of Connecting Processes and Collaboration Documents © 2011 Ariba, Inc. All rights reserved. 26 Accounts Payable €1.7 M Operational Savings Procurement €1.1 M Operational Savings €5 M Compliance Savings €900k €5Millions (Catalogs) €500K €650K €300K €300K €115K Approving Status eInvoice Status ASN PO

65. Get rid of 30 fax servers (and their phone bills)

66. Stop your requesters from calling suppliers to check status

67. Automate the reception of your low-value orders

68. Reach 98% touchless invoice reconciliation

69. Stop the suppliers from calling you about paymentCatalogs PO Status GRN Invoice

70. Questions / Open Discussion © 2011 Ariba, Inc. All rights reserved. 28

71. © 2011 Ariba, Inc. All rights reserved. 29 “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.

72. Maximizing the Value of Your ERP Jason Wolf John Lark © 2011 Ariba, Inc. All rights reserved.