SAP Runs SAP Ariba Procurement

Jeff Sjurseth, Murphy Oil; Karen Ong, Accenture; Erich Winsloe, SAP Ariba / August 30, 2016
Sourcing and Procurement Excellence in a
Networked World
Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Agenda
2
3
1
Murphy Oil Project: Project and Implementation
Q & A
SAP runs SAP Ariba: Procurement Transformation Journey

Erich Winsloe, Regional Operations Director Asia Pacific, SAP Ariba / August 30, 2016
SAP Runs SAP Ariba
Procurement Transformation Journey
Public

Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the confidential information (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 SAP or Ariba to any
particular course of business, product strategy, and/or development. Its content is subject to
change without notice. SAP and Ariba assume no responsibility for errors or omissions in this
document. SAP and 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.

Agenda
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3
4
1
The source-to-pay organization
SAP runs SAP Ariba
Simplifying the user experience
Why transform?

6© 2014 SAP AG or an SAP affiliate company. All rights reserved.
…why transform?

Changing business environment increases pressure on companies
Greater pressure on procurement
Accelerating technological change
 Changing business models
 Faster innovation cycles
 Expanding partnerships and channels
 Leveraging Big Data for decisions
Regulatory changes
 Increasing disclosure
requirements
 Country-specific regulations
 Industry-specific disclosures
Increasing globalization
 Expansion into new markets
 Global process standardization
 International supply chains
 Increased off/near-shoring
Economic volatility
 Volatility in markets
 Decreased stock valuation
 Slow economic growth
 High expense ratio
More competition
 Pricing pressures
 New sources of competition
 Decreased budgets and spending
Greater risk
 Supply chain disruption
 Financial risk and fraud
 Commodity risk

Accelerating technological change
Business landscape transformation to 2020 is increasingly digital and networked
1 ScienceDaily, May 22, 2013
2 Technology Adoption Report: Business Networks, Ardent Partners, 2014
3 Internet of Things (IoT) 2013 to 2020 Market Analysis: Billions of Things, Trillions of Dollars, IDC, 2013
4 Statista, 2014
Next two years
90%of the world’s data has been generated1
40%
growth in adoption of business networks2
212 billion
things will be connected3
9 billion
mobile users in the world4
51%
of workloads
processed in the cloud
Last two years
End of 2020 By 2020 In 2020

Source-to-pay process at SAP
Center-led Global Procurement Organization (GPO) structured by categories
SAP’s end-to-end source-to-pay process
 Take end-to-end process
responsibility for all parties involved in
the entire source-to-pay process
• Leverage purchasing power and drive
sustainable savings across
all geographies
• Deliver best-in-class procurement
processes and highest possible service
levels to internal customers
• Mitigate risk to SAP
• Be a fair partner to our suppliers
GPO vision is to help SAP buy better and be a value-generating business partner to the
business for all procurement-related activities, globally.
Procurement
Shared Service Center*
Operational procurement, accounts payable,
and travel and expenses (T&E)
Global Procurement Organization
Strategic and tactical sourcing, supplier
relationship, and stakeholder management
IT Marketing Facility MobilityServices
CPO and source-to-pay business owner
Structure Goals
~€4 billion
Spend FY2015
>547,000
PO line items
>778,000
Annual invoices
>475
Full-time employees
in source-to-pay area
*Reports solid line into Global Finance Shared Services Organization

SAP’s procurement organization at a glance
Key facts and figures (2015)
Spend by region
>78,000
SAP employees globally
~€4 billion
Spend
19,000+
Global suppliers
>778,000
Annual invoices
>547,000
PO line items
>1,000,000
Trip entries
>475
Full-time employees in
source-to-pay process
Spend by categoryFacts and figures
€20.8 billion
Total revenue
IT and telecommunications
Services and HR
APJ
14%
EMEA
54%
Americas
32%
30%
(€1.181 M)
17%
(€678 M)
20%
(€808 M)
15%
(€574 M)
18%
(€704 M)
Facility
Enterprise mobility
Marketing

Evolution of procurement toward a strategic function
The transformation journey toward the role of business value enabler
Strategicimportanceofprocurement
Today
Operational Tactical Strategic partner
Regional purchasing
Change management
Procurement
operations
People
development
SAP SRM 7.02SAP Supplier
Relationship
Management (SAP
SRM) 5.0
Organization
Globalization category management
People
Development and change management
Processes and systems
End-to-end source-to-pay, cloud,
networks, mobile
SAP SRM

Simplify the user experience
Source-to-pay innovations at a glance
Mobile solutions
Improved usability
increased manager
effectiveness
Simplified travel
Reduced time with faster
reimbursement and increased
employee satisfaction
New catalog
Google-fast and
Amazon-like
shopping
experience with
catalog in SAP
Ariba solutions
Analytics
Procurement dashboards
key to managing the
procure-to-pay process
Business networks
• Reduced process costs
and faster cycle times
• Leveraging purchasing
power of SAP

Procurement content
New catalog close to an “Amazon-like” shopping experience for end users
Old catalog New catalog
xxxx
xxxx
xxxx

Mobile, easy ordering
Simplified shopping experience: shopping in three clicks
Mobile and flexible
 Mobile apps for iPad and iPhone available
 Easy ordering of preferred end-use
consumable articles (online/offline)
 Use of nonproductive waiting time to process
shopping carts
Full integration
 Integration to online SRM system
 Detailed information of articles on item level
User-friendly user interface (UI)
 Simple and intuitive

Mobile shopping cart approval
Simplified approval: Improved manager effectiveness
Mobile and flexible
 Mobile apps for iPad, iPhone, Android
smartphones, and BlackBerry available
 Approval and rejection of shopping carts with
mobile apps (online/offline)
 Use of nonproductive waiting time to process
shopping carts
Full integration
 Integration to online SRM system
 Submission of receipts via mobile app
or e-mail
User-friendly UI

Concur solutions for travel and expense management
Faster reimbursement, increased employee satisfaction
Reduction of the entries/clicks and time spent on the
expense report entry (77% time and 57% clicks saved)
 Integration to online booking systems like TripIt
 Data feed of the credit card items
 Submission of the receipts via mobile app or e-mail
 Expense report creation via a Microsoft Outlook meeting request
Mobile and flexible
 Mobile apps for iOS, Android, and BlackBerry devices
 Scanning of receipts with mobile apps
 Use of nonproductive waiting time during trip for expense entry
User-friendly UI – usability satisfaction level of 71% (good)

Spend visibility. Run Simple
New analytics front end creating full transparency to strategically manage spend
Before After PO and non-PO spend aggregated
SRMERPERP SRMERPERP
PO spend
BW
Non
PO spend

Moving onto the business network
Collaborate to win
 Leverage the broadest business
network end-to-end source-to-
procure processes
 Manage costs and drive
innovation with suppliers in all
categories of spending (materials,
services, labor, T&E)
 Drive solution adoption and
purchasing compliance globally
with user-friendly applications and
mobile apps
 Recruit and onboard the best
workforce, simplify their work,
and help ensure compliance Security
SAP HANA Platform
Digital Core
Suppliers
& networks
Customer
experience
Workforce
engagement
loT
& big data
Digital core framework

Moving onto the business network
Collaborate to win
Reduced process costs and faster cycle times
Demand planning / Aggregation
and spend analytics
Sourcing / Procurement
and contract management
Invoice management
and accounts payable
Supplier management
Source-to-pay process
Ariba Spend Visibility
Ariba Collaborative Sourcing
SAP Ariba procurement
solutions, on demand
Ariba Collaborative Commerce
Ariba Collaborative Finance
SAP Ariba cloud and
network solutions
SAP Business Suite
FI
PM
PP
MM
SCM
SRMSAP on-premise
solutions
Sourcing
CLM
SPM

SAP runs SAP Ariba solutions
The power of two
253,000+
Customers
€17.6 billion+
2014 total SAP revenue
74%
Of the world’s transaction
revenues touch an SAP system
34Languages
8 million+
Users
>2 million
Companies in 190 countries
$900 billion+
Commerce conducted annually
1,200New network suppliers weekly

12%
of our
suppliers are
on Ariba
Network
34%
of our invoices
come from
those
suppliers
146,807
paper invoices
ready to
disappear
45%
of our top 100
suppliers
matched
Program step 1: The “supplier match” for SAP

Example: purchase order invoice automation and Run Simple
Automation of invoice-to-pay process – eliminate manual, non-value-adding tasks
Transitioning to a fully integrated and automated PO-to-invoice process will be a must in the future to reduce transactional
costs and free up resources to focus on value-adding activities in the end-to-end process.
Manual paper-based process
from PO to invoice
Invoice
creation in
a system
Printing Mail
shipping
Manual
data entry
Purchase order
creation / Invoice data
Purchase order
data conversion in invoice
Scanning
PO-to-invoice process fully
automated on Ariba Network

Program step 2: The solution framework we got started with
Single point for business collaboration
SAP suppliers
Ariba Collaborative Commerce
Ariba Supplier Information
Management
Ariba Sourcing
Ariba Procurement Content Catalogs, punchout catalogs
RFI, RFP, e-auction
Maintain supplier profile
information
SAP global procurement
Selected solutions
PO, OC, ASN, invoice,
invoice status

Program step 3: Implementation of SAP hybrid model
Orchestrating SAP on-premise solutions and SAP Ariba cloud solutions
Service
procurement
Catalog
procurement
content
Supplier
Supplier
Supplier
Purchase order, invoice status
Invoices, order conf., ASN
Ariba Discount
Professional
Spend
visibility
E-sourcing
Supplier
management
Contract
management
SAP Ariba cloud solutions PO and invoice automation with SAP Ariba
solutions
Accounts payable and T&EStrategic and tactical procurement Operational procurement
SAP SRM and SAP ERP
on SAP HANA
Vendor invoice management
Demand planning/aggregation
and spend analytics
Sourcing/procurement
and contract management
Invoice management
and accounts payable
Supplier management
Source-to-pay process

SAP Fieldglass software – service
procurement (contingent workforce)
Purchase order and invoice automation
for goods and services
Concur solutions –
travel sourcing and booking
Travel reimbursementSAP SRM and SAP ERP
on SAP HANA
Vendor invoice management
SAP’s end-to-end source-to-pay process
Implemented hybrid model by orchestrating SAP on-premise and SAP Ariba cloud solutions
Accounts payable and T&EStrategic and tactical procurement Operational procurement
Spot buy
Catalog
procurement
contentSpend
visibility
E-sourcing
Supplier
management
Contract
management
Supplier
Supplier
Supplier
Purchase order, invoice status
Early payment
discount
Invoices, order conf., ASN
SAP Ariba software – goods and services

Achievements
Benefits throughout the process: From operational to strategic procurement
Enhanced strategic and tactical processes
 Full transparency on category spend, suppliers, and
processes – all reports in one dashboard
 Supplier information up to date in a single source:
supplier management and evaluation
 Sustainable savings through comprehensive
sourcing tool: RFx and auctions
 Increased compliance through documented
sourcing process and auditable vendor selection
 Efficient contract management process through
contract templates, workflows and electronic
signatures
 Increased end-user satisfaction through intuitive
and user-friendly catalog
Streamlined entire source-to-pay process
3 months implementation time
>5,100 suppliers on Ariba Network
171,500 invoices transmitted (2015)
50% increase in automation
20% productivity gain
>1.1 billion PO value sourced (2015)

Transformation is a Journey

Thank you
Contact information:
Erich Winsloe
SAP Asia Pacific Japan and
Greater China
Mobile: +65 8228 5597
E-Mail: erich.winsloe@sap.com
#SAPAribaLive

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Our Presenters – Jeff Sjurseth & Karen Ong
Karen Ong
Global Deployment
Subject Matter Advisor
Karen is a Senior Executive with Accenture
Singapore, and Accenture’s ASEAN SAP
practice. She specializes in large scale,
complex implementation programs and has
been building and deploying regional and
global systems for Accenture clients.
Her experiences include SAP (ECC 6.0, SoH,
S/4HANA and SAP eco-system applications)
systems implementation, SAP upgrades,
deployment for mergers and divestures for
clients, and setting up Centers of Excellence
(COEs) delivering process and technology
innovation.
Jeff Sjurseth
Eastern Hemisphere
Procurement Manager
Jeff is the Eastern Hemisphere Procurement
Manager for Murphy Exploration & Production
Company - International. He has over 38 years
of global exploration and production
experience including 16 years expatriate
service in the Middle East, Australia, and Asia
Pacific with Amoco/BP, Hess, and Murphy.
In his present role, Jeff is responsible for
supporting regional and country supply chain
teams, including process improvements,
strategic planning, contract negotiations,
purchasing, logistics, material life cycle
management, new country entry, and business
services implementation projects.
Murphy Exploration & Production
Company - International
Accenture

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Murphy Project – Overview
Agenda Page
2
Murphy Project – Procure to Pay (P2P)1

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Jeff Sjurseth
Eastern Hemisphere
Procurement Manager
Murphy Project –
Procure to Pay (P2P)

45
Murphy Global E&P Operations

46
Murphy faced various challenges to grow and improve as an organization
Main challenge
Data inconsistenciesRunning on disparate systems
Lack of global integration
Large amount of work
Impact
Ariba
Contract
Management
Ariba Procurement Content (Catalogue)
Sourcing Contract
mgmt.
Select
goods &
services
Enforce
compliance
& order
Receive &
reconcile
Invoice &
pay
Ariba Sourcing
Ariba Network
Ariba Procure-to-Pay
Integration of SAP Ariba solutions

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Karen Ong
Global Deployment
Subject Matter Advisor
Murphy Project –
Overview

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Accenture helped establish a new Global ERP system in Murphy, providing enhanced
decision making capabilities & process system driven practices
Accenture Involvement Business Outcomes
Managed and implemented Accenture’s Upstream Direct ERP
template solution using SAP Business Suite powered by SAP
HANA, which includes specific preconfigured components for Oil &
Gas, including JVA, PSA, PRA, Supply Chain Management, Plant
Maintenance.
Utilization of SAP Business Suite on SAP HANA
Implemented SAP Ariba solutions, SAP SuccessFactors
solutions, OneSource, and the new SAP Environment, Health,
and Safety Management (Incident Management & Risk
Assessment modules) as concurrent projects.
Implementation of concurrent projects
Enabled Murphy to navigate through the change journey with data-
driven insights about their organization’s dynamics.
Utilization of Accenture Change Tracking®
Put together a global team across USA, Canada, India, Philippines
and Malaysia to assist the process of the ERP transformation
within 6 months + 3 months hypercare
Mobilization of a global team
 Promoted greater transparency in ensuring
effective controls, segregation of duty and
ongoing policy compliance for the company
(JOA/PSC)
 Enhance collaboration among departments
and teams through regular cross functional
meetings coupled with strong leadership in
achieving the same goals.
 Established an integrated system and closing
cockpit for quicker turnaround on Month End
Reporting in Finance.
 Improved efficiencies by reducing manual
reporting and allowing greater transparency and
global standardization of data in one single
platform.
 Reduced processing time for Approvals with
the availability of the online approval
functionality in Cost Control. SAP Fiori for
mobility included for mobile approval capability.
Best Practices for Oil
& Gas Conference
Delivery Assets/Excellence
Global Awards 2016

49
DeliverDesign Develop
Ariba Contract Management
Ariba Procure-to-Pay
Ariba Sourcing
Ariba Network
SAP and Ariba Integration
Ariba Procurement Content
Timeline skepticism
Various upstream and country-specific scenarios for integration consideration
Internal resistance to process changes
Competing business priorities
Phase1ChallengesFaced
Continued supplier enablement
Continued spend visibility
Continue to enable more suppliers
on Ariba Network as per wave plan
Ongoing spend data capture + data
enrichment, develop category
strategies
Continued sourcing collaboration
Continue to enable sourcing for
below and above threshold spend
We went through an aggressive timeline to enable basic SAP Ariba functionalities and
we are now on a continuous journey to fully realize the benefit of SAP Ariba solutions
Q1-Q4 2016
6 months + 3 months hypercare + targeted improvement

50
Digital User Experience
Spend
analysis
Savings
tracking
Supplier
management
Sourcing Contract
management
Content
management
Spot buy
management
Procurement Service
procurement
Invoice
management
SAP S/4HANA Sourcing and Procurement
Ariba Spend
Visibility
Ariba
Savings and
Pipeline
Tracking
Ariba
Directory and
Supplier
Information +
Performance
Management
Supplier
InfoNet
Ariba
Sourcing
Ariba
Contract
Management
Ariba
Procurement
Content
Ariba Spot
Buy
Ariba
Procure-to-
Pay
Ariba Invoice,
Payment,
and Discount
Management
Fieldglass
Expense
management
Concur
Sourcing
Contract Management P2P
Ariba Network
Usability and mobility
Supplier collaboration
Analytics and dashboardsAriba Spend
Visibility
Ariba
Operational
Reports
New Ariba UI
Ariba
Network
Ariba
mobile apps
SAP
BusinessObjects
Lumira
SAP
Business
Objects/ BI
SAP Fiori Personas
Procurement Content
Spend Visibility
Operational Reports
SAP
BusinessObjects
Lumira
SAP Fiori
Targeted
Improvement
(Q1-Q4 2016)
Legend
SAP Ariba Solutions Roadmap

51
Q&A

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