The document summarizes a presentation on spend analysis and visibility best practices. It includes an agenda for the presentation which covers an overview, panel presentations on spend visibility deployment best practices, and a Q&A session. Key points discussed are the challenges of gaining spend visibility, the benefits of spend analysis in increasing contract compliance, strategic sourcing savings, and spend under management, and best practices around project planning, data enrichment, adoption and usage of spend analysis tools and reports.

1. #AribaLIVE
Spend Analysis: Let Your Numbers
Do the Talking
Speakers
• Sundar Kamakshisundaram – Ariba, an SAP Company
• Eric Laracoque – Ariba, an SAP Company
@ariba

2. Agenda
• Overview and Introductions
• Panel Presentations
• Spend Visibility Deployment Best Practices
- Eric Laracoque – Sr. Spend Visibility Project Manager
• Q&A
© 2014 Ariba – an SAP company. All rights reserved.2

3. Let Your Numbers Do The Talking
© 2014 Ariba – an SAP company. All rights reserved.
“It's about getting things down to one
number. Using the stats the way we read
them, we'll find value in players that no one
else can see.” - Peter Brand to Billy Beane
(in the movie Moneyball, 2011)
3

4. Good Spend Management Begins with
Good Spend Visibility
The Spend Management Ecosystem
© 2014 Ariba – an SAP company. All rights reserved.4

5. 86% of companies say
spend visibility is very
important…
But only 40% of
companies have good
visibility into their
spending© 2014 Ariba – an SAP company. All rights reserved.5

6. Inconsistent Data Quality
Disparate Data Sources
Manual Effort Intensive Processes
Limited Access to Market Information
Poor Visibility on Suppliers
Why is Gaining Visibility on Spend
a Challenge?
6 © 2014 Ariba – an SAP company. All rights reserved.

7. Spend Visibility Value Proposition
Contract
Compliance Rates*
Strategic Sourcing
Savings*
62%
6.7%
11.7%
46%
Before Spend Analysis After Spend Analysis
44% 59%
Spend Under
Management *
34% incremental
increase in
contract
compliance rates
75% increase in
strategic sourcing
savings
34% increase in spend
under management
*Aberdeen Group : Spend Analysis – Working Too Hard for the Money
© 2014 Ariba – an SAP company. All rights reserved.7

8. Observing the Benefits of Spend Analysis
from a Vantage Point
© 2014 Ariba – an SAP company. All rights reserved.
Specific category procurement costs reduced by 66%
Savings of USD 30 Million
18% average savings across all spend categories in span of 2.5 years
Supplier count reduction by 20%
USD 2.5 Million in cash savings by managing payment terms
8

9. #AribaLIVE
Spend Analysis: Let Your Numbers
Do the Talking
Eric Laracoque – Ariba, an SAP Company
Manager – Ariba Spend Visibility Services
@ariba

10. Project Planning and Deployment
• Maintain a formalized spend analysis program
 Project Sponsor & Charter
 Align Proper Resources
 Develop processes for sourcing, compliance, budget
and other business processes
• Expectation management
 Timing of data pulls
 Excluded/included data sets
 How SV will be utilized for project determination and
business decisions
10 © 2014 Ariba – an SAP company. All rights reserved.

11. Enrichment and Refinement
• Enrichment is an ongoing process
• Involves collaboration between internal users
and Ariba
 Ariba Data Enrichment Manager (DEM) to collaborate
with customer and define proper enrichment strategy
• It won’t be 100% right the first time
• Have confidence in the data – if you see issues:
 Work on refinement rules
 Internal validation processes
 Accuracy in data pulls
11 © 2014 Ariba – an SAP company. All rights reserved.

12. Adoption and Usage
• Reports
 Keep reports geared to organization units, functional roles, locations, suppliers,
commodities, etc.
 Leverage relevant prepackaged reports and move prepackaged reports without
data to a separate archive
• Dashboards
 Keep them simple and keep content focused on user group
 Keep relevant documents and dashboard (PDF, PPT, etc.)
 Create separate tabs for more specific content
• Custom Category – deploy to increase usability
• Training
 Listen to webinars on various topics (posted on Exchange)
 Schedule additional web-based training in coordination w/PM
• BPC - Spend Visibility Best Practice Center – Managed Project
• Rollout
 Create go-live announcement
12 © 2014 Ariba – an SAP company. All rights reserved.

13. Thank you
Q
A&
Contact information:
Sundar Kamakshisundaram
Sr. Director – Global Solutions Marketing
E: sundar.kamak@sap.com

14. Please Complete Session Survey
Locate Session
Click
Surveys
Button
Select
Breakout
Survey
Rate Session
Thank you for joining us