1. Chandra Yeleshwarapu and Rick Collison
Ariba Procurement Solutions What's New, What's Coming, Best Practices
Chandra Yeleshwarapu and Rick Collison
© 2011 Ariba, Inc. All rights reserved.

2. Agenda Procurement State of the Union Summary and Q&A What’s New
Procure to Pay and Procure to Order
Procurement Content
Services Procurement
What’s Coming
Product Roadmap
Vision
Summary and Q&A
© 2011 Ariba, Inc. All rights reserved.

3. Economy Scorecard Rate of change is increasing
© 2011 Ariba, Inc. All rights reserved.

4. Renegotiate Contracts
Responding to Changing Market CPO Priority: Focus on spend management outcomes
Top Drivers
Top Priorities
Risk and Compliance
Conserve Cash 1
Renegotiate Contracts 1
Cash flow focus 2
Supply Risk 2
Tight budgets 3
Spend Mgmt Effectiveness 3
Slower Investment
© 2011 Ariba, Inc. All rights reserved. 4

5. The CPO Situation Normal channels have less to give Drive more savings
You are here
What are your top business drivers in 2011?
“Can you give me some shade?”
Ariba / ISM (Institute for Supply Management) Survey conducted February 23, 2011 5
© 2011 Ariba, Inc. All rights reserved.

6. The Business Commerce Problem… Investments Inefficiencies Remain Between Companies
ERP or Niche
ERP
Source
Procure
Pay
Buyer
Wasted
time and
resource
Lost
negotiation
history
Poor
visibility into
compliance
Manual
ad hoc
collaboration
Delayed
payment;
Cash “mis-mgmt”
Limited
visibility and risk
Sell
Fulfill
Invoice & Collect
Seller
CRM
Order Mgmt.
ERP
Average number of trading partners: 134,500 (Source: Forbes Global 2000)
Transactions completed manually: 80% (Source: Celent Communications)
Paper-based invoices and payments: 85% (Aite Group: Global Cash Management: Going Green. 2009)
Costs of ineffective collaboration: $650 Billion (Source: Basex Research- “Information Overload” Feb, 2008)
Inefficient Commerce Collaboration is Costing G2000 $338 Billion (Source: Ariba Benchmarking)
© 2011 Ariba, Inc. All rights reserved.

7. The Impact on Procurement
Challenges
Business Impact
Poor control of spend
Poor visibility into what is being spent and with which vendor
Lack of standardization across business units and geographies
High maverick spend
Spend not compliant with negotiated terms
Poor visibility and management by post-spend auditing
Failure to meet commitments increases risks and costs
Multiple contracts and terms with the same vendors
Duplicate processes and global disparities
The new normal drives some universal challenges in Services Procurement. These impact the business in reduced productivity, loss of control resulting in high maverick spend, poor spend visibility leading to ineffective sourcing and higher prices. And of course increased risk around failure to meet commitments as well as legal conflicts.
How does your organization view these? 7
© 2011 Ariba, Inc. All rights reserved. 7

8. Efficiency Prize in Procurement
What are your targets for improving P2P processing costs within the next two years:
Source: Defining and expanding the value proposition of P2P survey, ISM, Forrester, Ariba; February 2011; relative population sample. 8
© 2011 Ariba, Inc. All rights reserved.

9. The Approach: Holistic
What is your top Procurement initiative for 2011?
Better processes
and automation
Multi-year
strategic plan with
enterprise goals
Internal and
external
collaboration
Compliance
Training &
investment
Source: Defining and expanding the value proposition of P2P survey, ISM, Forrester, Ariba; February Entire registrant population of 1,137. 9
© 2011 Ariba, Inc. All rights reserved.

10. Procurement Business Process e-Procurement
© 2011 Ariba, Inc. All rights reserved. 10

11. Solution Ariba Commerce Cloud
BUY
MANAGE CASH
SELL
TECHNOLOGY
Applications
Spend Mgmt. | Collaborative Finance Mgmt. | Sales Acceleration Mgmt.
Platform
Analytics | Security | Performance | Integration | Mobility
COMMUNITY
Peer Collaboration
World’s Largest Trading Network
Partner Ecosystem
CAPABILITIES
Domain Expertise
Value Enablement
Execution Support
© 2011 Ariba, Inc. All rights reserved. 11

12. Ariba Procurement: Compliance, Collaboration, Visibility
Supplier Network
Ordering
Approval
Fulfillment
Receive
Reconcile
Settle
Contract
Source
Control goods, services, across all ERP’s:
Require ERP receipt or payment:
Compliant ERP Ordering:
Automate AP:
Up to 80% of spend is Services:
Recapture Savings Leakage: Supplier, Price, Term
Improved Processes and Visibility
Lower resource needs: short- and long-term across all ERPs
Flexible many-to-many networking = long-term system efficiency
Allows for strategic cash management
Proven value
Why It Matters:
© 2011 Ariba, Inc. All rights reserved.

13. Collaboration on the Network is the Key
“We feel the system is beneficial from the upfront control process. We also think the system is very easy to use. It's intuitive and our users have been able to adopt it quickly.”
Bob Fair, Director of Global Procurement Operations McGraw Hill
ERP
ARIBA NETWORK
Supplier
Buyer
Sourcer
Mgr
 Any Buyer
 Any Supplier
 Any ERP
 Total Process Control 13
© 2011 Ariba, Inc. All rights reserved.

14. Comprehensive Spend Management
Service
Indirect
Supplier on Boarding
Time and Labor
Payments
Catalog Management
Source to Procure
Bids and Auction
Direct
Plan to Procure
Capacity Constraints & Sourcing Splits
Extended Enterprise – On Time Delivery
Direct
Commodities & Options
© 2011 Ariba, Inc. All rights reserved.

15. Best Practice - Procurement 2011
Process Efficiency
Hyper Collaboration and Usability
Expand Spend Categories under process control
Spend Visibility
Control contract leakages and identify the savings
Supply Risk Management
Use the Ariba Cloud Commerce, Expand spend categories and implement across geographies
© 2011 Ariba, Inc. All rights reserved.

16. © 2011 Ariba, Inc. All rights reserved.
What’s New
© 2011 Ariba, Inc. All rights reserved.

17. Disciplined Innovation Approach Combining all customer experience into the journey
Feature
surveys
connect.ariba.com
On-site customer visits
Advisory councils and user groups
Early access programs and design partnerships
Functionality and usability testing
On-Demand Releases
Common Code Line
9s5
10s1
10s2
Future Releases
© 2011 Ariba, Inc. All rights reserved.

18. Thanks for Making Ariba the Leader
Ariba Procurement Leader
© 2011 Ariba, Inc. All rights reserved.

19. What’s new in Procurement? Theme – Process Efficiency and Usability
Procure to Pay
Determine Account Type by Item Price
Denial by Approver in Parallel Chain
Mass edit of Partial Items
Support Flexfields in Receipt Import
Reporting - Accounting Contract facts
Respect User ship to and Deliver to in requisitions
New Language support – Swedish, Dutch, Danish, Norwegian
Procurement Content
SRM 7 Certification
Catalog Self Service
Services Procurement
Collaborative Requisitioning
© 2011 Ariba, Inc. All rights reserved. 19

20. Determine Account Type by Item Price
10s2 SP1, P2P, P2O
Determine Account Type by Item Price
We support determining account type based on commodity and the spend
This enhancement allows users to determine the account type by price of the commodity
Example Requisition
Item per unit price = $10
Quantity = 500
Account Type Policy
Spend ≤ $1,000  Expense Account
Spend > $1,000  Capex Account
Since spend is $5000, it will be
Capex Account
Account Type Policy
Price ≤ $500  Expense Account
Price > $500  Capex Account
Since price is $10, it will be
Expense Account
© 2011 Ariba, Inc. All rights reserved.

21. Denial by an Approver in Parallel Chain
10s2 SP1, P2P, P2O
Denial by an Approver in Parallel Chain
Earlier, even if Archie denied the requisition, Gene could approve the requisition without knowing that Archie had already denied it
The requisition was eventually denied
Now, the approver in the parallel chain cannot approve this requisition
© 2011 Ariba, Inc. All rights reserved.

22. Denial by an Approver in Parallel Chain
10s2 SP1, P2P, P2O
Denial by an Approver in Parallel Chain
If Gene tries to approve the requisition after Archie denies it
© 2011 Ariba, Inc. All rights reserved.

23. Catalog Self Service – 1 of 2
Description
Ability for buyer and supplier to manage catalogs in a self service mode
Features
Complete self service in enabling and maintaining catalogs
Buyers
Self service to set up catalog validation rules
Support for supplier specific rules
Rule Engine
Load catalog default rules
Create, modify and save new rules
Validate catalogs against the defined rules set
Identify and display errors in catalog to both suppliers and buyers
Communicate error status via
Suppliers
View and download catalog validation rules
View and correct catalog errors
Do catalog comparison
© 2011 Ariba, Inc. All rights reserved. 23 23

24. Catalog Self Service – 2 of 2
Description
Ability for the buyer and supplier to manage catalogs in a self service mode
Benefits
Buyers
Reduce cycle time. Faster catalog enablement.
Lower enablement \ maintenance costs by reducing manual steps
Enabling more catalogs
Suppliers
Reducing time and cost to enable catalogs
Increased visibility and transparency
Increasing catalog coverage > More transactions
Examples
Loading catalogs with rules to check.
Required fields filled in (Price, Classification Code, UOM, Lead Time
Supplier specific check on (Classification code range 4312****, Lead time < 10days & UOM = EA)
© 2011 Ariba, Inc. All rights reserved. 24 24

25. Catalog Self Service New Process2
Load CIF
Enriched
CIF File
Buyer
Normalized
Yes
© 2011 Ariba, Inc. All rights reserved.

26. Catalog Self Service – Use Case
Catalog validation rules definition (Buyer)
Set up catalog validation rules
All Suppliers (Green \ Hazardous \ UOM)
Supplier Specific Rules (Classification Code \ Expiration Date \ Lead Time)
Download rules & create catalog file (Supplier)
View and download catalog validation rules
Prepare and load catalog file through Network account
Catalog Validation (Catalog Self Service Engine)
Synchronize catalog with buyer instance
Validation of catalog and error reporting (field, line wise)
Error correction and republish catalog (Supplier)
notification on errors
View errors online and correct catalog file
Publish new catalog version
Publish catalog (Buyer)
notification on catalog load
View and validation. Catalog difference report.
Approval and publish to end users
Catalog Status update (Supplier)
Online update of catalog status
Published
Pending
Validated
Approved
Activated
© 2011 Ariba, Inc. All rights reserved.

27. Collaborative Requisitioning
Description
Ability for the buyer to collaborate with suppliers on all requisition types
Features
Extends collaboration to catalog and non catalog items (deployed on P2P, P2O, APC)
Can enforce X Bids and a Buy on any type of requisition (deployed on P2P, P2O, APC, Services Procurement)
Quick Enablement Collaboration Request
Benefits
Buyer can negotiation with supplier on any type of requisition,
X bids and a buy can be enforced
Suppliers no longer need to be on the AN to receive a Collaboration Request
Examples
Buyer has a standard catalog item (Widgets at $10 a unit) from Supplier XYZ. They can collaborate with Supplier XYZ and 2 other suppliers on this item to see if the supplier has the item in stock and to negotiate a lower price.
© 2011 Ariba, Inc. All rights reserved.

28. Procurement Track Overview
Sr. No
Title
Presenter
Time 1.
Collaborative Procurement
Cathal O’Sullivan
Monday April 11
4:45 to 6:00 2.
Ariba Procure to Pay and Procure to Order
Sybel Bevington
Tuesday April 12
1:30 to 2:45 3.
Ariba Payment and Invoice Management
Chris Chase
3:15 to 4:30 4.
Ariba Network Order Management
Achim Voermanek 5.
Ariba Supplier enablement
Olaf Schrader 6.
Best in class approval rules
Leslie Martensen 7.
Ariba procurement content and catalog management
Dawn Fischer 28
© 2011 Ariba, Inc. All rights reserved.
© 2011 Ariba, Inc. All rights reserved.

29. © 2011 Ariba, Inc. All rights reserved.
What’s Coming
© 2011 Ariba, Inc. All rights reserved.

30. Ariba’s New Release Model Guiding Principles
Decouple App releases
Allows focused engineering execution by solution area.
Independent Platform Development
Minimizes quality risk of simultaneously changing all layers in the architecture
Focus on Readiness
Explicit focus on readiness tailored by solution
Quarterly Drumbeat
Predictable schedule for bringing innovation to the market
© 2011 Ariba, Inc. All rights reserved.

31. (Spend Vis, Sourcing, SIPM, Contracts) (Procurement & Invoicing)
Ariba’s Future Release Vision
More improvements behind the scenes
“Cloud Cadence”
11s - Series
12s - Series
13s - Series
11s1
(Spend Vis, Sourcing, SIPM, Contracts)
12s1
13s1
14s1
11s2
(Procurement & Invoicing)
12s2
13s2
14s2
11s3
(Ariba Network)
12s3
13s3
14s3 31
© 2011 Ariba, Inc. All rights reserved.

32. What’s coming in Procurement? Theme – Network & Usability
Procure to Pay
Enhanced accounting information in contracts
Improved Budget Management
Improved notification
Enforce Minimum and Maximum order size from contract
Handle Old and hanging POs
Adhoc shipping address in user profile
Improve Operational Reporting
Procurement Content
Catalog Search
Catalog Reporting
Services Procurement
Enhanced Contingent Labor operational reports
Time Sheet Supplier upload
© 2011 Ariba, Inc. All rights reserved. 32

33. How to Get Involved and Influence Direction
Get involved on ariba.exchange.com
In addition to User Groups, other forums include venues such as our Advisory Council, customer surveys, beta programs and design partnerships, and functionality and usability testing
Get involved in the early access program before each release
Volunteer to provide feedback to the Solution Manager for your product
© 2011 Ariba, Inc. All rights reserved.

34. © 2011 Ariba, Inc. All rights reserved.
Vision Discussion
© 2011 Ariba, Inc. All rights reserved.

35. Trends Data explosion requires new navigation paradigm
Consumer technology trends impact the way business is done
Procurement organizations have myriad operational models
© 2011 Ariba, Inc. All rights reserved.

36. #1 Data Management and Retrieval Enterprise Data Growth & Enterprise Search
Data Explosion
Skimming the Surface
© 2011 Ariba, Inc. All rights reserved. 36

37. Information Maze Where is it? Access? Relevance? Rich and actionable?
Find the Information
Go right then left and then right, then left …..
Take decision based on inadequate data ……
Where is it?
Desktop
Intranet
Internet
Access?
Security
Navigation
Relevance?
Role
Context
Rich and actionable?
© 2011 Ariba, Inc. All rights reserved. 37

38. # 2 Consumer Technology Trends Are Changing the Way Business Is Done
Networking
Communication
Mobile Computing
Matching Services
Access to Content
Then
Now
Trade shows vs. Social Networking (letters/post cards vs. Facebook)
Communication (Phone vs. Smartphone)
Looking for services: (Yellow Page vs. Service Magic)
Mobile computing (Standalone Wi-Fi cards vs. Intel Centrino)
Access to Info (Newspaper vs. Consumer generated content)
Broader access to data
Social networking going mainstream
Increased collaboration between companies
Information provided contextually
© 2011 Ariba, Inc. All rights reserved.

39. Solution: Enterprise Search & Collaboration
Internal
Extended
Enterprise
Outside World
Multiple Sources
Distributed Information
© 2011 Ariba, Inc. All rights reserved. 39

40. # 3 Trends in Procurement Emerging models need Flexibility in Procurement
Integration
Extensions
Deployment
© 2011 Ariba, Inc. All rights reserved.

41. Solution: Flexibility & P2P Automation
Business Process Automation
Direct Spend, Service Spend
Invoicing and reconciliation
Contract and terms
Overlay With Network & Collaboration
Social Network and collaboration
Network Operations
Add on Functions
Ease of Integration with
legacy applications
© 2011 Ariba, Inc. All rights reserved.

42. In Summary Focus on process efficiency
Collaboration is the key to process efficiency
Use the Ariba Cloud Commerce, Expand spend categories and expand to other geographies
Hyper Collaboration and Usability
Ariba is committed to improving solution usability and process efficiency
Control contract leakages and identify the savings
Expand Spend Categories under control
© 2011 Ariba, Inc. All rights reserved.

43. Questions
© 2011 Ariba, Inc. All rights reserved.

44. “Safe Harbor” Statement
This information reflects the status of Ariba solution planning as of April 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.

45. Chandra Yeleshwarapu and Rick Collison
Ariba Procurement Solutions What's New, What's Coming, Best Practices
Chandra Yeleshwarapu and Rick Collison
© 2011 Ariba, Inc. All rights reserved.