Sie sind auf Seite 1von 31

Integrating SAP Procurement On-Premise

& On-Demand (SRM & Ariba)


Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
SAP’s Acquisition of Ariba (Game Changer)

SAP to Expand Cloud Presence with Acquisition of Ariba


Tue, May 22
The Combination Creates the Business Network of the Future; Provides Open Business Commerce Community and Procurement
Solutions in the Cloud; Network to Benefit from SAP's Flagship In-Memory Platform, SAP HANA
WALLDORF, Germany and SUNNYVALE, California - May 22, 2012 - SAP AG (NYSE: SAP) and Ariba, Inc. (Nasdaq: ARBA)
today announced that SAP’s subsidiary, SAP America, Inc., has entered into an agreement to acquire Ariba, the leading cloud-based
business commerce network, for $45.00 per share, representing an enterprise value of approximately $4.3 billion. The acquisition will
combine Ariba’s successful buyer-seller collaboration network with SAP’s broad customer base and deep business process expertise to
create new models for business-to-business collaboration in the cloud.
The Ariba board of directors has unanimously approved the transaction. The per share purchase price represents a 20% premium over the
May 21 closing price and a 19% premium over the one month volume weighted average price per share. The transaction will be funded
from SAP’s free cash and a €2.4 billion term loan facility. The transaction is expected to close in the third quarter of calendar year 2012,
subject to Ariba stockholder approval, clearances by relevant regulatory authorities and other customary closing conditions. The
transaction is expected to be accretive to SAP’s non-IFRS earnings per share in 2013.
SAP’s Strategic Vision
The Ariba acquisition
supports SAP’s strategic
vision to grow into new
markets – cloud,
database, mobile -- and
double addressable
markets.
IBM’s Point of View on SAP’s Acquisition of Ariba
Gaps in SAP Solution Footprint How Ariba fills SAP Solution Footprint Gaps
Supplier Collaboration / Marketplace – SAP has had to rely on the partnering model
Ariba Supplier Network – the largest eProcurement buyer / supplier marketplace in
(Hubwoo and Quadrem (acquired by Ariba in 2010) to facilitate supplier and buyer
terms of total dollars transacted and number of active suppliers.
collaboration (requisition / purchase order / invoice, and real time bidding).

Transaction Hub – Transactional solutions for Cash Management. Ariba Supplier Network – the largest eProcurement transactional hub

Ariba continues to grow in the SaaS (“On Demand”) space and continues to convert On
Cloud (SaaS) Solution – Very limited cloud and SaaS presence. Premise clients to their On Demand model -- providing a smooth revenue stream
versus license renewals (which tend to be “choppy”).

Electronic Invoice Presentment & Payment – SAP relies upon OpenText for their Ariba has an integrated EIPP solution, often considered one of the leaders in this
EIPP solution relying on a partnering model for the solution and marketplace. space, integrated through the Ariba Supplier Network

Professional Services – SAP has failed to build a credible module to manage both
Ariba Services Procurement – considered a mid tier player, but better than what SAP
contingent and professional services spend, often times with companies choosing Ariba
and Oracle offer today.
and other niche providers.

Contract Management (Buy and Sell Side) – This is a growing space in which clients Ariba Contract Management – Capability to author, collaborate on and operationalize
have often looked to best of breed versus EA providers. contracts in an integrated tool.

Spend Analytics Capabilities – Opportunity to leverage and integrate key spend


Spend Analytics – This is a growing space in which clients have often looked to best of
analytics measures inherent within Ariba Analysis into the more robust SAP reporting
breed versus EA providers.
tools.
Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
SAP’s Procurement Landscape
SAP has now acquired Ariba and many of SAP customers are asking the following:
• Should I halt my existing SAP On-Premise
procurement implementation?
• I was planning to implement SAP On-Premise
procurement, should I now switch to Ariba?
• Will SAP continue to support its SAP its On-
Premise procurement suite?
• What is SAP’s plans regarding the overlapping
functionality between On-Premise and On-
Demand?
• How does Ariba compare to SRM?
• Is my investment in SAP SRM, Sourcing or SPM
lost?
To answer these questions we must look at:
• The status of the current implementation if one
exist
• The nature of the business case
• The procurement categories under consideration
• The industry of the implementing organization
• Security requirements
• The required customization
• The deployment timeframe
• The IT capabilities of the implementing
organization
• The geographic footprint
Pros and Cons of On-Premise vs. On-Demand
Pros SRM Pros Ariba
•Tight integration with ECC • Fast implementation timeline
•Direct procurement functionality • ‘Best of Breed’ application
•Ability to enhance functionality (BAdIs) • Extensive network
•Flexible security options • Covers the full procurement lifecycle
•Standard Netweaver platform • Frequent updates
Cons SRM Cons Ariba
•High implementation cost • Complex integration to ECC
•Inflexible user interface • Focused primarily on indirect spend
•Limited supplier network • Limited ability to enhance functionality
•Infrequent updates
•High learning curve
IBM’s Recommendation
Stay with SRM if… Investigate Ariba if…
•Your implementation is recent and achieving the • You are just starting your procurement
business case transformation journey
•You need a procurement tool that supports direct • You want a solution that can be deployed
spend categories quickly
•You have invested in SAP ECC-MM and need • You want the best application available
tight integration with your e-Procurement tool • You are only concerned with indirect spend
•You are a public sector organization (SRM PPS) • You want a fully integrated solution across the
•You require functionality not available as standard entire procurement life-cycle (source to settle)
in SRM or Ariba • You user base will primarily consist of casual
•Your strategic direction does not support a cloud- users
based solution • You do not have a ECC backend
Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
IBM’s Recommendation... “have you considered”
A Hybrid Solution works best when you are happy
with SRM but…
•you have reached the limits of SUS’s capabilities SAP SRM/Ariba Hybrid Solution
•your supplier on-boarding process is not robust
•your internal catalog solution is no longer scalable
•your catalog maintenance is excessive (internal
and punch-out)
•you would like to pilot cloud-based procurement
tools
•you require a robust e-invoicing solution
Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
Ariba/SRM Hybrid Solution Demo

1 2

Acknowledge the PO in Ariba


4

Initiate Shopping Cart in SRM & Supplier Invoices through Ariba


Punch Out to Ariba
3

Confirm Receipt in SRM


Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
IBM’s Value Proposition
Ariba /SRM Implementation Leader
• IBM brings market-leading capabilities in procurement and global SRM and Ariba implementations to help drive success. We have
accelerators, worldwide methodologies, highly experienced staff, deep vendor relationships and recognized capability that we will employ to
accomplish our client’s goals.
• IBM has implemented and supported Ariba solutions at over 60 global clients across 19 industries
• Managed the first Ariba On Demand implementation consisting of all upstream and downstream modules
• Ariba solution roll-outs in 65 countries across all geographies
Our SAP Consulting Practice
• Has relationships with Ariba and SAP that are positioned at the highest levels of each organization
• Recognized by SAP CEO as consulting market share leader with 25% of the market
• Over 5,000 successful projects at over 9,000 sites
• Only partner to win the Award of Excellence in the U.S. every year it has been given
Our Own Transformation Experience
• IBM has embarked on its own procurement transformation journey and can share real-life experiences from our executives regarding how to
drive complex changes in a diverse and geographically dispersed organization
• This sort of practitioner guidance goes well beyond the theory that a pure consultant can bring to the table.
Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
Questions
Agenda
• Demystifying the Ariba Acquisition
• On-Premise vs. On-Demand (Pros and Cons)
• The Hybrid Solution Option
• The Hybrid Solution Demo
• IBM’s Value Proposition
• Questions
• Contacts
Contacts

Michael Cheatham 8888 Keystone Crossing


Associate Partner Indianapolis, IN 46240
Global Business Services
Tel 317 249-9618
Mobile 317 409-6061
mcheatham@us.ibm.com
Appendix
• Hybrid Solution Detail
Optimal Hybrid Solution Components
Component Description Req? Comments
SRM 7.0 SAP’s SRM Platform Yes EHP 2 provides a optional UI, EHP 3 optimizes
for HANA
SRM New UI Streamlined user interface No Enhanced cross-catalog search capability

Ariba Procurement Content Ariba catalog application Yes Robust end-user search and content
maintenance capabilities
Ariba Network Cloud-based supplier Yes Facilitates document exchange and eInvoicing
portal
SAP Netweaver PI Integration middleware Yes * * A connection tool is required but there are
third-party tools available
Hybrid Solution Option – SRM New UI
Features
•Web-like interface – dynamic screens
•Web-like search – search and field help
•Comprehensive catalog content
al
•Process multiple line items efficiently pt ion
O
•User guidance
•Customizable
Search
•Enterprise search - search across all fields in the catalog
item. The search attributes are customizable using
enterprise search tool
•Fuzzy search can be enabled
•User Settings – change the user default settings such as
cost assignment, product category, and delivery information
for an order
Hybrid Model - High Level Process Overview
Suppliers
Buyers
SAP SRM
OCI

MDM Catalog
Catalog Suppliers

Free Text Non-Catalog Suppliers


Order World Wide Web

Reservation

SAP ERP
FI/CO/MM
Hybrid Solution Architecture Overview Trading Partners

Product Catalog

• Purchase Order
• Order • Ariba Procurement
Acknowledgement Content (Catalogs)
• Invoice Process Orchestration • Purchase Order
Purchase Orders, Invoice Status
and Invoice
Automation

Ord. Ack, ASN, Invoice


Hybrid Solution Detail – Document Exchange
Business Impact
•Reduction of efforts on Accounts
Payable with regards to incoming
invoice processing, i.e. “touchless
IDOC
IDOC postings”, based on defined
ORDERS05
ORDERS05 cXML
cXML business rules for invoice validation
Purchase
Orders Purchase Orders Purchase •Simplicity & Transparency: Self-
Orders service supplier portal for real-time
Ariba
invoice / payment status
NW
DocSet
DocSet •Elimination of business risk and
Invoices Adapter cXML
cXML
delays with maximum degree of
Invoices
Invoices / Credit Memos (PO & Non PO) process automation
•Reduction of paper through fully
electronic documentation, including
Invoices Invoice Status Invoices e-invoicing
•Fully integration with SAP SRM,
ensuring document traceability
Hybrid Solution Detail – Catalog Integration

Business Impact
•OCI 5.0 Compliant
•Casual Users:
o Enhanced search w/fuzzy logic
o Flexible navigation
o Results filtering
• Create Shopping o Comparison of items
Cart • Catalog Content •Multi-catalog environment
• Confirm Goods / OCI
• Catalog •Elimination of business risk and delays with maximum
OCI 5.0
5.0
Services maintenance degree of process automation
• Invoice Verification •Harmonized administration of supplier catalogs
•Integration to the Ariba Network
SRM / Ariba Hybrid Scenario Casual User
Procure-to-Pay Scenario
between SAP Enterprise Central Component and SAP Supplier
Relationship Management and the Ariba Network

•The procure-to-pay business integration scenario between SAP Enterprise


Central Component (ECC) and SAP Supplier Relationship Management (SRM)
and the Ariba Network enables you to drive compliant, automated purchasing
and collaboration activities with trading partners, by which all parties achieve
process efficiencies and effective cost management.
•The procure-to-pay scenario covers the end-to-end process beginning with the
creation of the shopping cart or purchase requisition, which triggers the
purchase order creation activities. It supports the approval processes required
to issue a purchase order towards the participating suppliers of the Ariba
Business Network and in return the processing of advanced shipping
notifications and invoices.
•The release of the outgoing payment concludes the process. The integration
scenario provides full transparency on the status of the transaction by
supporting change requests and adjustments required by the business. The
integration of purchasing catalogs is an option and offers the advantage of a
structured buying process.
The Hybrid Solution - How does it work? Professional User
Ariba Network Integration for SAP Business Suite rapid-deployment
solution covers:
•Purchase Order and Invoice Automation
•Discount Management and Discount Professional
•Catalogs such as Ariba Procurement Content
•The procure-to-pay business scenario integration is message based which
means it can run fully automated between your on-premise SAP ECC and the
Ariba Network. Documents exchanged support the entire procure-to-pay
business integration scenario including ten document types, such as, for
example: create purchase order, change purchase order, order response to
invoice and remittance advice
•Integration between on-premise ECC or SRM and Ariba Network for purchase
orders and invoice automation is based on IDOCS and cXML messages and
has three options described below
•Integration between on-premise SAP Business Suite and Ariba Discount
Professional Solution is based on IDOCs and BAPIs using SAP NetWeaver PI
middleware
•Configuration settings to enable the requisition process and ensure data
transmission across the solution
•Integration between SAP ERP MM or SAP SRM and Ariba Procurement
Content is based on the SAP Open Catalog Interface (OCI). This can be
combined with the other integration options
Technology Functionality Matrix
Integration for Purchase Order and Invoice Automation
•You can choose from different integration technology options based on your
needs and current investments:
•The new SAP Business Suite Add-on for Ariba Network Integration offers a
more enhanced two-way integration which utilizes a web services framework.
This enables SAP SRM/ECC to create cXML messages that can be directly
consumed by the Ariba Network and vice versa. With this new approach you
can connect your on-premise SAP SRM/ECC system with the Ariba Network in
the cloud without any middleware and without the need to “translate” the
messages.
•If you are already using SAP NetWeaver PI, the existing infrastructure can be
used to implement this hybrid integration using IDOCs and cXML messages.
•Ariba Adapter connectivity is your third option which is based on IDOCs and
BAPIs.
Integration of Ariba Procurement Content
•Integration between SAP ERP MM or SAP SRM and Ariba Procurement
Content is based on the SAP Open Catalog Interface (OCI).