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Spend Analysis: Driving ProcurementExcellence with Numbers by Your SidePresenters: Annie Vaseekaran, Keertan RaiJuly, 2016

Legal disclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed withoutthe permission of SAP. This presentation is not subject to your license agreement or any other service orsubscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in thisdocument or any related presentation, or to develop or release any functionality mentioned therein. Thisdocument, or any related presentation and SAP's strategy and possible future developments, products andor platforms directions and functionality are all subject to change and may be changed by SAP at any timefor any reason without notice. The information in this document is not a commitment, promise or legalobligation to deliver any material, code or functionality. This document is provided without a warranty of anykind, either express or implied, including but not limited to, the implied warranties of merchantability, fitnessfor a particular purpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP s willful misconduct or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual resultsto differ materially from expectations. Readers are cautioned not to place undue reliance on these forwardlooking statements, which speak only as of their dates, and they should not be relied upon in makingpurchasing decisions. 2016 Ariba - an SAP company. All rights reserved.2

Good Spend Management Begins With Good SpendVisibilityThe Spend Management Ecosystem 2016 Ariba - an SAP company. All rights reserved.3

86% of companiessay spend visibilityis very important But only 40% ofcompanies havegood visibility intotheir spending 2016- an SAP company.rights reserved.Source:SAP Ariba/ ProcurementLeadersAllSurvey20114

Why is Gaining Visibility on Your Spending a Challenge ?Inconsistent Data QualityLimited Access to MarketInformationManual Effort Intensive ProcessesDisparate Data SourcesPoor Visibility on Suppliers 2016 Ariba - an SAP company. All rights reserved.5

Traditional Spend Visibility is Only the Tip of the Iceberg DataAggregationDashboards &Reporting 2016 Ariba - an SAP company. All rights reserved.6

Turning Data into Actionable Intelligence Requires MoreData AggregationDashboards &ReportingCommodity Increased spend under managementClassification Category optimization Contract complianceSupplierEnrichment Negotiation leverage Financial health & risk ratings Diversity & sustainability Price & industry indicesMarket Online communitiesIntelligence Supplier network intelligence Collaborative sourcingIntegrated Spend Reduced maverick spendingManagement Capture savings leakages 2016 Ariba - an SAP company. All rights reserved.7

Ariba Spend Visibility powered by SAP HANAA Clear View of All Your Spend and Suppliers in One PlaceAriba Spend Visibility unified with D&B Business Insights and powered by HANAprovides you the ability to make trusted and confident spending decisions bydelivering comprehensive visibility on your spend data.DecisionsInsights How much are we spending?What are we buying?Who are we buying from? 2016 Ariba - an SAP company. All rights reserved. Improve sourcing pipelineIncrease purchasing clout with suppliersRationalize supplier & product portfolioReduce inventory costsIncrease spend under managementMitigate supplier riskDiversity and sustainability adherence8

Ariba Spend Visibility powered by SAP HANAYour on-ramp to effective spend management Data enrichment Unique partnership with Dun & Bradstreet (D&B) for insights intothe supply base with 245 million records updated monthly in a5-level hierarchy Optional green/diversity/risk scores through D&B Flexible data schema and custom taxonomy to address industryspecific needs 3D visibility for true spend intelligence Granular commodity classification – United Nations StandardProducts and Services Code (UNSPSC), ACT, or custom Robust supplier enrichment Market indicators and benchmarks Robust analytic tools Prepackaged, best-practice reports, role-specific dashboards,and slice-and-dice reports Shared network supplier profiles completing the 360-degree view Ariba Spend Visibility Benchmarking Program Gauge your spend profile and Compare insights on key metricsagainst aggregated peer group data 2016 Ariba - an SAP company. All rights reserved.9

Realize Benefits Beyond SourcingSourcing SavingsIncreased spend undermanagement and improvedsourcing pipelineContract ComplianceImproved adherence to negotiated contracts andreduced off contract spendingMitigated Supplier RisksWorking Capital LeverageTotal visibility on supplier level paymentterms and better supplier negotiationleverageInsights on supplier financials,litigations and other riskindicatorsReduced Cost of ProcurementOptimized supplier base and categories,visibility in to price indices and discountleakages 2016 Ariba - an SAP company. All rights reserved.10

Unlocking Insights Across Multiple Fronts97% of the annual spendclassified and enriched over98% of the supplier basethus resulting 20% supplierreductionEntertainment &MediaOrganizationROI on three yearsubscription reached insingle category identifiedand sourced 2016 Ariba - an SAP company. All rights reserved.Over 400,000 goods andservices categorized basedon industry taxonomies at99% accuracyUSD 27.3 million savings in2.5 year period and 18%average savings across allspend categories11

Ariba Spend Visibility: Process workflowpowered by SAPHANAin the cloudAriba Spend Visibilityportal2Commodityclassification3Supplier dataenrichment6Raw data loadedinto Ariba SpendVisibility portal (input)Enriched dataloaded toportal(output)1ERP 1ERP 2P- CardQualityassuranceMarket databenchmarks54 .Extract, transform, andload processCustomer datasource systems 2016 Ariba - an SAP company. All rights reserved.Data enrichmentprocesses inAriba Spend Visibility12

Sustaining end user adoption is the key to ensuring longterm benefitsDeployment of a new tool often raises questions:Where is this information coming from?What does it tell me?How do I build the reports I need?Can I trust the data?How do I identify sourcing opportunities and areas for improvement? 2016 Ariba - an SAP company. All rights reserved.13

And it Takes More than Just Software to Get ThereUser Adoption Best PracticesCore user / core teamBest Practice Center (BPC) projectsDashboards, templatesRegular refinement processACT vs. Custom Taxonomy 2016 Ariba - an SAP company. All rights reserved.14

Thank YouKeertan RaiDirector – Solutions ManagementAnnie VaseekaranManager – Solutions MarketingSAP India Private LimitedBangalore, India 560103SAP India Private LimitedBangalore, India 560103Tel: 91 98861 28425Keertan.rai@sap.comTel: 91 9611277511Annie.vaseekaran@sap.com 2016 Ariba - an SAP company. All rights reserved.15

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Ariba Spend Visibility powered by SAP HANA A Clear View of All Your Spend and Suppliers in One Place Ariba Spend Visibility unified with D&B Business Insights and powered by HANA provides you the ability to make trusted and confident spending decisions by delivering comprehensive visibility on your spend data.