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Ariba Knowledge
Nuggets                                                      What is the
                                                       Ariba Commerce Cloud?



Businesses have spent billions streamlining their internal operations. Yet few tackle the inefficiencies involved in
dealings between companies. That's where paper-based processes and outdated infrastructures lead to lost revenue
and productivity.

The Ariba Commerce Cloud is a unique web-based platform, it contains everything businesses need to buy, sell and
manage cash more efficiently and effectively than ever before.

•   Technology: Market-leading applications for spend management, collaborative finance management, and sales
    acceleration management.

•   Community: The Ariba Network, the world's largest Web-based trading community, where more than 300,000
    global businesses to discover, connect, and collaborate. And Ariba Exchange, the industry-leading customer
    community for networking, sharing best practices, and collaborating with partners and peers.

•   Capabilities: Market, category, technical, strategic and other expert capabilities that can be accessed on-site or via
    the Web to support ever-changing business needs.

          The beauty of the Commerce Cloud is that all companies engage daily with the 3 basic concepts —
                                              Buy, Sell and Manage.
BUY —Buying can be tricky business. Your success depends on always buying at the lowest possible cost, with the
least possible risk. Far easier said than done, isn't it, considering that it takes:
        • Thorough spend analysis and visibility
        • Comprehensive category and commodity knowledge
        • A wide base of qualified suppliers – for both goods and services
        • The means to find the right supplier quickly, and manage them effectively
        • Automated savings negotiation and tracking
        • Tools to create, execute, and manage contracts without delay
        • And, probably the trickiest thing of all, system-wide compliance

                                             Until now, cost-effectively covering all these bases
Ariba Solutions for Buyers:                        has been a pipe dream. But no longer.
•   Spend Analysis
•   Sourcing                      So, take some time to explore those solutions from Ariba that you
•   Contract Management             do not have yet. Then contact your Account Executive or me to
•   Procurement                   find out more. Because over the next 24 hours, businesses buying
•   Supplier Management              through the Ariba Commerce Cloud will save over $60 million.
                                              And I’m pretty sure you want a piece of that.
Best Practice Tip for Spend Visibility —- User Adoption
It is important to remember that loading and enriching the data is just the first part of enabling a spend analysis tool. In
many cases this is a new platform for end users, and all of the work completed in the initial phases will be worth nothing
if end-users do not take advantage of the tool. While many users are able to run reports in the tool, they may be missing
useful features and efficiencies of the tool without training.

Below are steps taken by customers that I consider best-in-class from a user-adoption standpoint.
• Power-users should be assigned, ideally one per location. These users can then provide on-site training and support
for the rest of the user base at that location. They can also assist in designing and building useful reports and
dashboards that are relevant to their location, all items that help new users quickly become comfortable with the tool.
• Make the end-user training sessions more of a workshop instead of a demo. Encourage the trainees, if possible, to
have their computers at the training so they can follow along. The more interactive the session, the more value users
will get out of it.
•   Mandate that end-users attend a training of the tool. I have seen many customers just hand out ID's with no training,
which delay's the value proposition of the solution.
• Facilitate follow-up review sessions that can be attended. This is a good opportunity for questions to be addressed,
and new features/uses to be demonstrated. Ariba's Project Managers provide these on a quarterly basis to their custom-
ers.

Best Practice Tip for Sourcing — Ariba Discovery (Also attached as a PDF)
Harnessing the Power of the Ariba Network for Your Commerce Needs

 Buyer Benefits
 •Reduce operating costs 70% or more                                      Network Portal
 •Capture 3x more discount savings
                                                                                            Sales /
 •Facilitate paperless invoice compliance                      Sourcing                    Marketing
 •Optimize working capital
                                                                                                          Order
 •Strategic platform for growth                                                                         Management
                                             Procurement

 Supplier Benefits
 •Manage customers via self-service Portal
 •Reduce receivables costs 75%
                                                                                                         Finance /
 •Get paid up to 70% faster                   Finance /                                                 Receivables
 •Improve visibility and control              Payables

 •Automate Order-to-Cash process
 •Access new business opportunities with
   largest buying community
 •Strategic platform for growth                            Financing         Payment       Accounting
Best Practices for Contracts—How close is your company to Contracts Best Practices?

                         Traditional/Base line                       Advanced                                  Best In Class
                         No formal written contracts    Have written contracts processes, but       Have electronic contracts policies (with
Contract processes       processes, thus often use      often not followed by users or groups,      checklist/tasks) that are followed by all
(including editing and   “third party paper” instead of and often still use “third party paper”.    groups and regions. But still may have
amendments)              your own contract Word file.                                               to use “third party paper”.
End user training        No formal training or only     Written manuals used to train new           Written, class room, and/or WBT (Web
                         done on occasionally.          users.                                      Based Training) are used for new users.
Types of contracts       No electronic contract system Electronic contract system for at least      Electronic contract system for all types
electronically sup-      for any type of contract (Buy one type of contract.                        of contracts.
ported                   side or Sell side or NDA, etc)
Approval workflow        Contract approvals are manu- Contract approvals are static elec-        Contract approvals are dynamic elec-
                         ally done by paper signatures. tronic, but are often not followed or    tronic, with clause level approvals, with
                                                        Approvers do not approve quickly.        automated escalations if approvals are
                                                                                                 delayed..
Contract execution       Original documents are manu- Original or faxed documents are            Documents are electronically signed
(signatures) and trans- ally signed (wet signature)     manually signed and mailed, faxed, or and electronically transmitted.
mission method           and mailed.                    emailed.
Contract template        Separate Word file used for Correct Word files is electronically        Correct Word file is electronically se-
(Word file) used to cre- different contract types, with selected for use with different contract lected for the correct contact type. Con-
ate contracts and the manual Word file update of        types, with manual Word file update of tract template Word files are electronic
update process           each different Word file.      each different Word file.                mass updated for changes common
                                                                                                 clauses.
Invoices for             Invoices are manually created Some invoices are created electroni- Many invoices are created from contract
goods/services cov-      and mailed to your company. cally from the contract to reduce in-       by suppliers/customers and electroni-
ered by contracts                                       voice errors.                            cally sent for auto matching to contract
                                                                                                 before payment.
How is legal team in- Legal team called for all         Legal team advice is in contract Word Legal team advice is accessible from
volved for contract      changes for all contacts (no file (must remove before executing) or the contract Word file but not part of the
changes/edits            pre-approved alternate         in associated separate document.         Word file. Standard pre-approved alter-
                         clauses used).                 Legal team often called for routine      nate clauses available so legal team
                                                        changes. Use common clauses in           only called for unusual edits or situa-
                                                        Word files.                              tions.
Integration              Contracts software is stand Share contract base data (suppliers, Contracts software integrated to other
                         alone.                         users, categories, etc) with other soft- software (base data, sourcing, procure-
                                                        ware system.                             ment, compliance, payment, etc).
Contract storage,        Paper contracts stored in file Electronic storage, with electronic      Electronic storage, with electronic
searching, reminders cabinets, and must be manu- searching of header data and elec-              searching of header data and document
and metrics.             ally searched. No electronic tronic reminders of upcoming contract free text searching, with electronic re-
                         reminders nor contract met- expiration. Some contract metrics.          minders of multiple events (such as ex-
                         rics.                                                                   piring certifications or contract renew-
                                                                                                 als). Use contract metrics.


          The
         Ariba
     Commerce Cloud                                                               MANAGE
                                                          BUY                                                  SELL
                                                                                   CASH

•   Control costs
                                                                                 TECHNOLOGY
•   Increase revenues,
•   Optimize Cash Flow                                      Ariba Applications
                                                            Ariba Applications                       Ariba Platform
                                                                                                     Ariba Platform
    and Operations
                                                                                  COMMUNITY

One                                                 Ariba Exchange
                                                    Ariba Exchange                Ariba Network
                                                                                  Ariba Network              Partner Solutions
                                                                                                             Partner Solutions


Company                                                                          CAPABILITIES

Does It All….                                          Ariba Expertise
                                                       Ariba Expertise           Ariba Enablement
                                                                                 Ariba Enablement         Ariba Execution
                                                                                                          Ariba Execution



Ariba!

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Ariba Knowledge Nugget: What is the Ariba Commerce Cloud

  • 1. Ariba Knowledge Nuggets What is the Ariba Commerce Cloud? Businesses have spent billions streamlining their internal operations. Yet few tackle the inefficiencies involved in dealings between companies. That's where paper-based processes and outdated infrastructures lead to lost revenue and productivity. The Ariba Commerce Cloud is a unique web-based platform, it contains everything businesses need to buy, sell and manage cash more efficiently and effectively than ever before. • Technology: Market-leading applications for spend management, collaborative finance management, and sales acceleration management. • Community: The Ariba Network, the world's largest Web-based trading community, where more than 300,000 global businesses to discover, connect, and collaborate. And Ariba Exchange, the industry-leading customer community for networking, sharing best practices, and collaborating with partners and peers. • Capabilities: Market, category, technical, strategic and other expert capabilities that can be accessed on-site or via the Web to support ever-changing business needs. The beauty of the Commerce Cloud is that all companies engage daily with the 3 basic concepts — Buy, Sell and Manage. BUY —Buying can be tricky business. Your success depends on always buying at the lowest possible cost, with the least possible risk. Far easier said than done, isn't it, considering that it takes: • Thorough spend analysis and visibility • Comprehensive category and commodity knowledge • A wide base of qualified suppliers – for both goods and services • The means to find the right supplier quickly, and manage them effectively • Automated savings negotiation and tracking • Tools to create, execute, and manage contracts without delay • And, probably the trickiest thing of all, system-wide compliance Until now, cost-effectively covering all these bases Ariba Solutions for Buyers: has been a pipe dream. But no longer. • Spend Analysis • Sourcing So, take some time to explore those solutions from Ariba that you • Contract Management do not have yet. Then contact your Account Executive or me to • Procurement find out more. Because over the next 24 hours, businesses buying • Supplier Management through the Ariba Commerce Cloud will save over $60 million. And I’m pretty sure you want a piece of that.
  • 2. Best Practice Tip for Spend Visibility —- User Adoption It is important to remember that loading and enriching the data is just the first part of enabling a spend analysis tool. In many cases this is a new platform for end users, and all of the work completed in the initial phases will be worth nothing if end-users do not take advantage of the tool. While many users are able to run reports in the tool, they may be missing useful features and efficiencies of the tool without training. Below are steps taken by customers that I consider best-in-class from a user-adoption standpoint. • Power-users should be assigned, ideally one per location. These users can then provide on-site training and support for the rest of the user base at that location. They can also assist in designing and building useful reports and dashboards that are relevant to their location, all items that help new users quickly become comfortable with the tool. • Make the end-user training sessions more of a workshop instead of a demo. Encourage the trainees, if possible, to have their computers at the training so they can follow along. The more interactive the session, the more value users will get out of it. • Mandate that end-users attend a training of the tool. I have seen many customers just hand out ID's with no training, which delay's the value proposition of the solution. • Facilitate follow-up review sessions that can be attended. This is a good opportunity for questions to be addressed, and new features/uses to be demonstrated. Ariba's Project Managers provide these on a quarterly basis to their custom- ers. Best Practice Tip for Sourcing — Ariba Discovery (Also attached as a PDF)
  • 3. Harnessing the Power of the Ariba Network for Your Commerce Needs Buyer Benefits •Reduce operating costs 70% or more Network Portal •Capture 3x more discount savings Sales / •Facilitate paperless invoice compliance Sourcing Marketing •Optimize working capital Order •Strategic platform for growth Management Procurement Supplier Benefits •Manage customers via self-service Portal •Reduce receivables costs 75% Finance / •Get paid up to 70% faster Finance / Receivables •Improve visibility and control Payables •Automate Order-to-Cash process •Access new business opportunities with largest buying community •Strategic platform for growth Financing Payment Accounting
  • 4. Best Practices for Contracts—How close is your company to Contracts Best Practices? Traditional/Base line Advanced Best In Class No formal written contracts Have written contracts processes, but Have electronic contracts policies (with Contract processes processes, thus often use often not followed by users or groups, checklist/tasks) that are followed by all (including editing and “third party paper” instead of and often still use “third party paper”. groups and regions. But still may have amendments) your own contract Word file. to use “third party paper”. End user training No formal training or only Written manuals used to train new Written, class room, and/or WBT (Web done on occasionally. users. Based Training) are used for new users. Types of contracts No electronic contract system Electronic contract system for at least Electronic contract system for all types electronically sup- for any type of contract (Buy one type of contract. of contracts. ported side or Sell side or NDA, etc) Approval workflow Contract approvals are manu- Contract approvals are static elec- Contract approvals are dynamic elec- ally done by paper signatures. tronic, but are often not followed or tronic, with clause level approvals, with Approvers do not approve quickly. automated escalations if approvals are delayed.. Contract execution Original documents are manu- Original or faxed documents are Documents are electronically signed (signatures) and trans- ally signed (wet signature) manually signed and mailed, faxed, or and electronically transmitted. mission method and mailed. emailed. Contract template Separate Word file used for Correct Word files is electronically Correct Word file is electronically se- (Word file) used to cre- different contract types, with selected for use with different contract lected for the correct contact type. Con- ate contracts and the manual Word file update of types, with manual Word file update of tract template Word files are electronic update process each different Word file. each different Word file. mass updated for changes common clauses. Invoices for Invoices are manually created Some invoices are created electroni- Many invoices are created from contract goods/services cov- and mailed to your company. cally from the contract to reduce in- by suppliers/customers and electroni- ered by contracts voice errors. cally sent for auto matching to contract before payment. How is legal team in- Legal team called for all Legal team advice is in contract Word Legal team advice is accessible from volved for contract changes for all contacts (no file (must remove before executing) or the contract Word file but not part of the changes/edits pre-approved alternate in associated separate document. Word file. Standard pre-approved alter- clauses used). Legal team often called for routine nate clauses available so legal team changes. Use common clauses in only called for unusual edits or situa- Word files. tions. Integration Contracts software is stand Share contract base data (suppliers, Contracts software integrated to other alone. users, categories, etc) with other soft- software (base data, sourcing, procure- ware system. ment, compliance, payment, etc). Contract storage, Paper contracts stored in file Electronic storage, with electronic Electronic storage, with electronic searching, reminders cabinets, and must be manu- searching of header data and elec- searching of header data and document and metrics. ally searched. No electronic tronic reminders of upcoming contract free text searching, with electronic re- reminders nor contract met- expiration. Some contract metrics. minders of multiple events (such as ex- rics. piring certifications or contract renew- als). Use contract metrics. The Ariba Commerce Cloud MANAGE BUY SELL CASH • Control costs TECHNOLOGY • Increase revenues, • Optimize Cash Flow Ariba Applications Ariba Applications Ariba Platform Ariba Platform and Operations COMMUNITY One Ariba Exchange Ariba Exchange Ariba Network Ariba Network Partner Solutions Partner Solutions Company CAPABILITIES Does It All…. Ariba Expertise Ariba Expertise Ariba Enablement Ariba Enablement Ariba Execution Ariba Execution Ariba!