Ariba Commerce Summit – San Mateo October 16, 2014

Welcome! Tim Minahan, CMO SAP Cloud and LoB

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Hyper-Globalization Globalization is Here

Consumerization Mobility | Cloud | Big Data | Networks

Emerging Middle Class Game Changing

Future Work Millennials| Tech-Savvy| Flexible

Changing Business Dynamics

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www.futureofprocurement.com

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“It will become more of a standard to see supply

management being held accountable for delivering

value and not just lower costs.”

www.futureofprocurement.com

Larry Welch Former CPO, Hewlett-Packard

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Where Can You Add Value?

Innovation Market

Expansion

Compliance & Cash

Flow

Marketing & Branding

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The Future is Predictive

• “In the future, procurement

will focus on more forward

looking, predictive

analysis…We need to be able

to predict how a product will

perform from quality and total

cost perspectives. We need to

know rapidly and be able to

react immediately when

changes in the data predict a

problem in the future.” • -- Kevin Castle, ex-CPO Varian, Inc.

Vision 2020: Ideas for Procurement in 2020

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Automate Predict Connect

Getting to Predictive

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SAP: All Categories. All Processes. One Platform.

INDIRECT – (source and non source)

Source &

Contract

Collaborate

& Transact

Invoice &

Pay

COMPLEX SERVICES

TRAVEL & EXPENSES

INTEGRATION TO SAP SYSTEMS AND NON SAP

CONTINGENT WORKFORCE & SERVICES

DIRECT MATERIAL - LOGISTICS

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All Powered by the Global Business Network.

Business Network

Risk &

Sustainability

Workforce

Management

Sales &

Marketing Finance

Supply Chain

Management

Sourcing &

Procurement Travel &

Expenses Discover

Connect Collaborate

Gain

Insights

Business

Network

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50% reduced in cycle time to

find diversity sellers

Reduced costs 10% via

increased competition &

discovery of global suppliers.

40% cut in processing costs;

70% reduction in cycle time

Improved DPO while

expanding early payment

discount opportunities

Electronic onboarding and enablement

of over 6000 suppliers in under two months

On track to achieve electronic

transactions for 100% of goods and

services spending

Gain 80% of new clients and grew orders

with existing customers > 65% with Ariba

20%+ year-over-year revenue gain for

six years

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You are the future… Networked

Intelligent

Predictive

Thank you

Contact information:

Tim Minahan

CMO

SAP Cloud and LoB