Brochure - SAP Ariba by Business Chief ANZ

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DRIVING VALUE in the DIGITAL ECONOMY

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Driving value in the digital economy Written by Sarah Megginson Produced by Josef Smith

A cloud-based marketplace for modern business, SAP Ariba enables simple yet intelligent exchanges between millions of buyers and suppliers. But it’s much more than sourcing and procurement software: as a platform that drives value as its core function, SAP Ariba aims to transform businesses for the digital economy

very day, millions of companies use the SAP Ariba Network to manage their business relationships and allow their customers to shop, share and save. As a cloud-based business network, SAP Ariba enables users to discover, connect and collaborate around more than $1 trillion in commerce every year and build, manage and deepen their B2B relationships. Or more accurately, as SAP’s Lorraine Longato explains, “We don’t sell software, we deliver business outcomes.” As the Value Engineering Director

– Procurement & Business Networks in ANZ at SAP Ariba, Lorraine is part of a team that delivers strategic advice to their major customers, with an overall goal of streamlining business analytics, improving procurement processes and engaging with the digital economy at an optimal level. “We have a structured methodology that we follow, which is centred around value with the customer at the core,” Lorraine explains. “The organisations we work with are all at different stages of their digital transformation. Some are

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The source of value

Procurement executives across the globe continue to see the potential they can unlock throughout the supply chain. They understand that business today is about engaging, collaborating, adapting instantly to evolving needs, and finding new sources of value. Getting that value, however, can prove a challenge.

Deloitte + SAP Opportunity unchained In search of answers, many are turning to enabling solutions such as SAP® S/4HANA, a digital core platform that can help streamline business processes and support real-time analytics for decisionmaking—whether onsite, via the cloud, or via mobile. They also continue to turn to SAP® Ariba® solutions, which provide access to a robust digital marketplace of suppliers, as well as capabilities for supplier management, spend visibility, and related sourcing and procurement execution needs. Increasingly, many organisations are attempting to align their SAP S/4HANA integrated approach to leveraging insights, identifying new opportunities for value, and simplifying business. Among these organisations, leaders understand that managing a business today has become about more than managing the enterprise. It’s now about managing the entire chain of goods, services, and activities that extend from the supplier all the way to the customer and the customer’s experience. The traditional supply chain has transformed into a value chain, in which each step of the business process— from sourcing to sale—represents an innovate, and to deliver value. Making strategy count Though the vision of new value is clear for

of SAP Ariba and other supporting SAP solutions requires more than vision. It requires strategy, experience, and an ability to execute. It requires help.

With more than 16,000 practitioners dedicated to SAP solutions in our worldwide network, and a leading global Strategy & Operations/Sourcing & Procurement practice, Deloitte stands ready to help businesses on their journey to new value through the use of SAP Ariba and SAP S/4HANA solutions. As an awardwinning Global SAP Services Partner and a long-serving value-added reseller for SAP Ariba, we understand the full potential of SAP solutions. Armed with decades of sourcing and procurement consulting know-how and IT experience, our network of professionals operate at the intersection of business and technology— moving nimbly to help processes, and then put in place powerful tools to help them reach their business objectives. Our testedå methodologies, playbooks, templates, and accelerators for delivering solutions will help you get to results swiftly—in any industry and in any market.

Why collaborate with Deloitte to transform your business with SAP solutions? There are plenty of reasons. Here are a few. Business focus. approach means we begin with understanding your current business processes, how you can improve them, and how a realigned set of processes can work within a modern SAP landscape to deliver new value for your organisation. SAP Ariba know-how. We’re more than a reseller of SAP software licenses and an experienced SAP implementer. We

implementations that pre-date SAP’s acquisition of Ariba. We have extensive experience in system integration, with a long history of delivering projects on time and on budget. Tools for moving fast. We understand that speed is critical. Building on the SAP Activate innovation adoption framework, we use the Deloitte Enterprise Value Delivery for Agile approach to guide your supply chain transformation, using proprietary tools to jump-start and then accelerate the transformation. Comprehensive capabilities. Our global network of business and technology means we can address needs across the enterprise. More than that, we can customise SAP Ariba, SAP S/4HANA, and other SAP solutions to meet the unique needs of your business. SAP alignment. We have a lengthy history with SAP solutions—with a global SAP alliance that extends back to 1989. Our long-standing experience plus our mean we deeply understand where SAP solutions are going. And as recipient of the 2016 SAP Pinnacle Award for SAP S/4HANA Adoption Partner of the Year, we understand how to unlock the solution’s value and align it with your procurement activities and your business goals.

To learn how Deloitte can help you leverage SAP Ariba and SAP S/4HANA to discover new sources of value in your procurement process, please contact us at SAP@deloitte.com.

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small and nimble and can change quickly. Others are undergoing a huge transformation by working through a multiyear program of change; if you’re a big Fortune 500 company, then it’s important to plan for longevity.” Lorraine, who began her career in engineering, takes her role as a trusted professional procurement practitioner very seriously, as she knows precisely what is possible with optimal systems and technologydriven strategies in place. “We become strategic, trusted advisers, helping our clients by guiding, advising and collaborating with them to streamline their analytics and procurement process,” she says. Take the example of Malaysiabased Alphamatic Systems Sdn BhD. As a largely manual, paperbased business, they realised their old-school procedures and systems were hampering their growth and moved to digitise their operations by joining the Ariba Network. The company started by collaborating on purchase orders and invoices electronically with its customers, and soon set up an

online catalogue showcasing its products and services. As a result of its efforts, Alphamatic has seen revenue from its largest customer increase by 40 percent, while its payment cycles cut in half. Closer to home, a SAP Ariba/ Deloitte collaboration was recently successful in combining both a leading cloud-based software solution with deep procure to pay industry knowledge and experience, resulting in two significant joint engagements with a large Australian health insurance provider and public sector transportation organisation. Meanwhile in the utilities sector, SAP has worked with many providers such as Ausnet Services, AusGrid, and Synergy. Ausnet Services operates an electricity and gas energy network in “a dynamic environment that is characterised by regulatory changes, technology advancements and shifting customer behaviours and values relating to their energy usage”, says Cor Van Der Scheer, Procurement Processes & Systems Manager. “Ausnet worked closely with SAP

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Ariba as we implemented our new ERP platform with a view to achieve transactional efficiencies, while greatly enhancing the way we manage the energy network asset base,” Cor says. “The most significant contributor to achieving that goal was our opportunity to leverage the Ariba Network integration with both our Plant Management (PS) and Project Management (PM) modules in SAP and our significant key suppliers. The combination of work order to purchase order automation in SAP, generated from the work orders, transmitted to suppliers through the Ariba Network as well as receiving Service Entry Sheets from suppliers through the same medium. This automatically integrated into SAP natively and created both an efficient and effective end-to-end process management enhancement. This type of system integration use is amongst the very first instances in the world, enabling us to stay ahead of the game on a technology platform to harness benefits back into the business.” She adds, “The innovation delivered through the cloud and improved

integration into SAP ERP coupled with the desire to assist their customers realise value from their investment make SAP Ariba the leader in its field.” Undoubtedly, superior technology equals greater efficiency and in the utilities sector in particular, it’s imperative to turn to an optimised and efficient digital platform, Lorraine says. “The Australian Chamber of Commerce recently released a report about which sectors are growing, and utilities and professional services are the last two on the list. There is no forecast of growth. So by helping them to define value and simplify the way they do business, we can help them leverage what they have to improve their overall operations,” she explains. The SAP Ariba team is passionate and proactive about transforming businesses to maximise returns in a digital economy, Lorraine adds, that they are currently “releasing an innovation every quarter to scale and grow in this environment”. “Our goal is to understand how we can improve our clients’ processes and programs, to minimise their cost to transact and to do business more

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efficiently. That way, they are able to deliver more to their bottom line, saving funds for the public sector that can be better deployed to front line services that make a real difference, or in private sector return savings that directly translate to P&L benefits and in turn shareholder value and/or dividends. It’s a compelling position,” she says. “When I think of how procurement has changed over time, it’s interesting – we have actually challenged most of the people in our team to stop using the word procurement, as we’re fundamentally involved in a company’s total financials. It’s commerce across the board, and our toolset with a collaboratively established sustainable business case offers a quick way to find and drive value.” Leveraging Ariba’s technology is not just about driving efficiencies and improving productivity, however; it’s also about creating transparency and building organisational reputation. This is achieved through a commitment to sustainable procurement, finance and business practices. Every C-level executive and or shareholder has a vested interest in transparency,

governance and value, delivering on all these key criteria with a simplified user experience ensures business integrity and continuity. In a digital world where the rate of change is constant, and fraud and cyber security risks prevail, it is imperative to have a business benefits plan, an implementation road map, change management process defined and a collaborative environment where these benefits can be maintained and sustained over time. Interestingly, Lorraine was head of sustainability in one of her previous roles. By applying her end-to-end operational engineering with her sustainable procurement experience, Lorraine is able to get right to the heart of the matter, which centres on the fact that technology and sustainability essentially go hand-in-hand. “We have a lot of sustainability initiatives, not just around our environment but also around people and programs. One is our One Billion Lives initiative, which involves combining SAP, our products, our people, our passion and our time to engage with NGOs, government agencies and our ecosystem to

deliver social outcomes in various areas, including health, education, and disaster and emergency management,” Lorraine says. One major project commenced in March 2016, when the SAP India team pitched their One Billion Lives Cancer Research Project. Dr. Ramesh, a seasoned oncologist, highlighted the need for a solution to consolidate cancer patient data, in order to prescribe the best treatment and medication for each cancer patient in India. “As a survivor of cancer, not once but twice, it’s important to me to be associated to an organisation that aligns with my personal values and beliefs. Of which finding a cure for cancer resonates,” she says. The project is data collation, analytics and insights. To date, SAP has built a Proof of Concept and it’s now in testing phase – putting the project well on track to reach the initiative’s overall goal to change one billion lives, this is only one amongst many to really impact lives and make a real difference. Taking the concept of sustainability one step further, Lorraine says it’s

SAP Ariba and EY: The powerful joint venture driving digital value EY and SAP Ariba have come together to advance our clients’ digital strategies. In collaboration, we have been experiencing regional and global success by coming together early in engagements, thus harnessing benefits and fostering transparency with customers. EY’s unique offering is its business integration approach, which takes a functional view of capability, rather than just a systems view. A business integration approach considers the required business outcomes and improvements to enable a better way of doing things, now. In the future, this approach will provide a platform for organisations to adopt continued automation and digitisation as it evolves. EY and SAP Ariba have commenced work with a global consumer products company to provide its digital support journey. As a direct result, the company saw considerable improvements across productivity of the source-to-settle cycle, and it made their journey “Run Simple”. It is not just about introducing a more streamlined way of buying things. It’s also about planning for future automation and providing a new way to collaborate with suppliers, all powered by the SAP cloud. The power of having the business advisor and software solution provider working together can help our clients to get real value and results from their investment.

Catherine McCourt Partner, Advisory at EY

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Lorraine Longato Director of Value Engineering, Procurement LoB (for ANZ)

Lorraine Longato joined the SAP Procurement LoB team to lead the Value Engineering (VE) function for the ANZ region. The VE team works closely with our major customers to streamline business analytics and improve procurement decision making, by delivering strategic advice, undertaking program planning and business case analysis. Longato has nearly 20 years industry experience across a range of sectors covering FMCG, Manufacturing, Supply Chain, Heavy Freight & Logistics, ITC Management Platforms, Energy and Sustainability, with the past seven years focused on Strategic Procurement and Change Management Initiatives. Longato has strong industry networks, having held roles representing industry and both the public and private sector. Lorraine is also an active contributor to procurement associations, including the Faculty Round Table, CIPSA, PASA and Procurious (Foundation Member). Her broad operational experience, coupled with her strategic procurement background and qualifications, enables her to develop and facilitate cradle-to-grave programs, yielding savings and efficiencies throughout the ANZ region.

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crucial to also consider brand longevity. “You have to think about every aspect of your procurement journey because these days, people are very savvy. People are on devices 24/7 and they know everything about your business. They demand transparency and if you don’t align with these growing winds of change, you are isolating yourself,” she says. “The world is a fast-moving place and reputational risk is now first and foremost a priority as part of the procurement function. There are a number of supply chain risks, such as slave labour in the supply chain or fraudulent behaviour. The information is out there, we can source it for you in one place - Ariba. There are no excuses for not knowing what’s going on with your supply chain and there should be no knowledge debts, because technology has enabled us to understand every link in the chain.” Embarking on a digital transformation journey requires you to know of these trends, Hyper-connectivity, Big Data, Cloud, Smart Devices and an awareness of Cyber Security risks enables us to map together with our

clients their capacity and capability gaps. This enables us to collaborate to define their road map towards benefits that will optimally leverage technology within their own organisation. It needn’t be as drastic or confronting as you may expect it to be, Lorraine adds. “From our perspective, it’s about enhancing what you’ve got, rather than ripping everything out and replacing it. We start by asking: Why, then Where do you want to be, and where are you now? Our job is to work with you to get from here to there and that conversation is always based on value delivery,” she says. “What we do as a value engineering function is to define value in what we call the four value levers: price reduction, compliance, process savings and cash position. We also have a value realisation team, they have a process around full life cycle analysis to deliver maximum value constantly. As we said previously, you don’t buy our software – you buy a business outcome.”

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Level 7, 168 Walker Street, North Sydney, NSW 2060 Sydney, NSW, Australia, 2060 Tel. +61 2 9935 4500 Fax. +61 2 9925 7561 www.ariba.com