1. © 2010. Ariba, Inc. All rights reserved. The 2010 Ariba Business Commerce Survey - Summary Findings

2. © 2010. Ariba, Inc. All rights reserved. 2 Question #1 How do you feel about surveys? 25% 50% 75% 100% A. Yeah, well, since I've got nothing else to do all day A. 1% B. It's good to find out what the competition is doing, especially when you include their exact names in the report B. 37% C. Good now that we've hired an entire department to do nothing but respond to your infernal surveys C. 53% D. Somewhere just above nails on chalkboards but below thumbscrews D. 77% E. Isn’t there a better way to do this? E. 104%

3. © 2010. Ariba, Inc. All rights reserved. 3 Introduction Ariba surveyed a broad and global cross- section of companies during Spring 2010 on a range of issues in business commerce Participants will be receiving customized reports on all ~70 questions comparing their responses to their peers Ariba will be publishing more detailed findings in the near future

4. © 2010. Ariba, Inc. All rights reserved. 4 Key Findings 1.Organizations have seen fundamental changes due to the recession that aren’t going away with a recovery 2.If anything, priorities, goals and challenges in commerce management are getting harder 3.Despite a good amount of automation, significant challenges remain in all spend and process areas 4.Going forward, companies will be increasingly relying on integrated, cloud-based solutions to fill gaps

5. © 2010. Ariba, Inc. All rights reserved. 5 The Recession had a major impact on everyone’s organization To what extent has the recent recession permanently changed the environment in which you operate? In the last twelve months, which of the following has impacted your organization? Top vote recipient 63% 77% 34% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Need to operate with fewer people Need to operate on a lower cost rate Increased risk embedded into supply chain Need to rely more heavily on trading partners in future

6. © 2010. Ariba, Inc. All rights reserved. 6 Question #2 What has been the recession’s primary impact for you?  Fewer people  Lower cost requirements  Increased risk  Heavier reliance of trading partners  All of the above  Something else

7. © 2010. Ariba, Inc. All rights reserved. 7 Bottom-line priorities remain in front What are the top commerce Priorities for your business today? = High = Medium = Low

8. © 2010. Ariba, Inc. All rights reserved. 8 And challenges abound… What are your top commerce challenges? = High = Medium = Low 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Identify savings faster with better data Target new spend categories Access market trends to find opportunities Demonstrate and accelerate ROI Focus on developing internal skills and expertise Automate contract management and compliance Automate procure-to-pay processes Improve effectiveness of managing working capital Move to On-Demand use of business applications Manage Supply Risk Automate supplier management process Increase spend under management Sustainability/Green programs Reduce maverick spend Increase revenues Improve the profitability of existing customers Lower the cost of managing commerce Increase speed and accuracy of transactions Increase share of electronic commerce

9. © 2010. Ariba, Inc. All rights reserved. 9 Question #3 What are your organization’s primary commerce challenges?  Data and market intelligence  Expertise and people  Internal stakeholders  Managing volatility and risk  Increasing coverage  Thoroughly unreasonable goals from on-high  Something else?

10. © 2010. Ariba, Inc. All rights reserved. 10 A majority of companies are still struggling to bring their Spend under control Spend under mgmt. remains <50% for most companies With many spend areas still difficult to reach Most difficult spend area to “crack” Definition: Percentage of non-labor, non-merchandising spend that is actively managed by an organization’s procurement department

11. © 2010. Ariba, Inc. All rights reserved. 11 And this is despite substantial efforts at automation across a host of tools What tools or services do you use to manage your trading partner relationships? In general, how automated are your existing commerce processes?

12. © 2010. Ariba, Inc. All rights reserved. 12 Question #4 Why the apparent disconnect between companies’ automation efforts and the results from their program?  Still too early?  Piecemeal or incomplete approach?  Poor execution?  Internal focus? And what can be done to make commerce more efficient and effective?

13. © 2010. Ariba, Inc. All rights reserved. 13 What strategies are being used going forward? Internal hiring is the main lever to meet staffing, skill and expertise requirements Nearly ¾ of respondents plan to be using Cloud-based solutions for Commerce Management within 12 months

14. © 2010. Ariba, Inc. All rights reserved. 14 And how is Ariba responding to help you - do more with less? - enable a lower cost structure? - provide flexible access to support? - deal with embedded risk?

15. © 2010. Ariba, Inc. All rights reserved. 15 Respondent profile More than 500 participants from North America, Europe and Asia More than 75% from large (>$1B) companies  And large departments (~50% had more than 20 people in their department) Procurement represented the largest function (>50%) with roles evenly split (e.g. Director, Manager, VP, etc) Strong industry cross- section of participants

16. © 2010. Ariba, Inc. All rights reserved. 16 Summary Key findings Organizations have seen fundamental changes due to the recession that aren’t going away with a recovery If anything, priorities, goals and targets in commerce management are getting harder Despite a good amount of automation, significant challenges remain in all spend and process areas Going forward, companies will be increasingly relying on integrated, cloud- based solutions to meet their business goals, especially in procurement and supply chain For much more information, including specific benchmarking on discrete areas (e.g. eSourcing, Supply Risk, eProcurement) look for your personalized copy of the 2010 Ariba Business Commerce Survey  Contact us if you’d like to take the survey to get these results  Look for more analysis coming out soon

17. © 2010. Ariba, Inc. All rights reserved. 17

18. © 2010. Ariba, Inc. All rights reserved. 18 Appendix Not for distribution

19. © 2010. Ariba, Inc. All rights reserved. 19 Challenges remain What is your biggest sourcing challenge? What is your biggest spend analysis challenge?

20. © 2010. Ariba, Inc. All rights reserved. 20 Challenges remain What is your biggest supplier performance management challenge? What is your biggest contract management challenge?

21. © 2010. Ariba, Inc. All rights reserved. 21 Challenges remain What is your biggest eProcurement challenge? What is your biggest complex services challenge?