This document summarizes a presentation about networks and the networked economy. It discusses how networks achieve critical mass over long periods of time, and how they can remove inefficiencies. It also addresses how a network approach using big data can help predict needs like vaccine demand. Finally, it notes some key criteria for choosing a network, such as being open, complete, global, non-disruptive, intelligent, scalable and secure.

1. #AribaLIVE
Welcome to the Networked Economy
James Marland, VP Network Growth, Ariba
@JamesMarland
Rome, April 2014

2. 22
• How to Build a Network
• Benefits of a Network
Collaboration, Community,
Cognition
• Which Network to join?

3. 3
“What Hath God
Wrought?”
Samuel Morse (1791 –1872)
• Newspaper Wire Services
• Wire Transfers
• Futures Trading
• Greenwich Mean Time
• Sears Roebuck and
the Catalogue
• Railways

4. 44
Achieving Critical
Mass
© 2014 Ariba – an SAP company. All rights reserved.

5. 5
A: Alamogordo, New Mexico
C: Hiroshima
B: Squash Courts, Univ of
Chicago
D: Max Planck Institute,
Munich
Critical Mass was first
Achieved at…?
6
5
4
$8,000
$6,000
$4,000
3
2
1
$2,000
$1,000
$500
50:50

6. 66
Network Started
Critical
Mass
Time
Required
Built by
Railways 1820’s 1890’s 70 years Tycoons, Barons
Electricity 1860’s 1930’s 70 years Local Govts, co-ops
Telephones 1870’s 1940’s 70 years GPO
Oil Pipelines 1880’s 1920’s 40 years Standard Oil
Credit cards 1950’s 1980’s 30 years Visa
UPC Barcode 1952 1975 23 years CPGs & Retailers
Internet 1982 2000 18 years US Government
Business Network 1999 NOW! 15 years Ariba
© 2014 Ariba – an SAP company. All rights reserved.

7. 77
Overcoming “Chicken
& Egg” Syndrome

8. 8

9. 99
• How to Build a Network
• Benefits of a Network
Collaboration, Community,
Cognition
• Which Network to join?

10. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 10
Collaboration: Removing Inefficiencies

11. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 11
Networks Can Remove “Contaminants”
© 2014 Ariba – an SAP company. All rights reserved.11

12. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 12
Moneyball: The Face that Launched 1,000 Blogs
• We are in Europe, do we care?
• Can a statistics-crunching machine really
understand baseball better than a man?
• The Mathematically inspired team win the
Championship, including an unheard of
20-game winning streak

13. 13
With Data, Almost Anything Can Be Predicted

14. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 14
Big Data Leads to a True Picture
• Increasing the “resolution” gives a truer picture
• Basic enterprise data is no longer enough to understand
your business
© 2014 Ariba – an SAP company. All rights reserved.14

15. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 15
Dark Matter, Dark Data

16. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 16
How many vaccines should I buy today?
Old school:
• Historical Data
• Re-order points
• CDC trends
Network Approach:

17. 1717
• How to Build a Network
• Benefits of a Network
Collaboration, Community,
Cognition
• Which Network to join?

18. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 18
Relics of a Bygone Network
© 2014 Ariba – an SAP company. All rights reserved.18

19. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 19
“I’ve already got one”
• I am setting up a
Supplier Portal
• I use EDI
• We use an industry
marketplace
• In Spain, we have our own
• Our bank provides this
© 2014 Ariba – an SAP company. All rights reserved.19

20. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 20
Your Wife Hates her Christmas Present; and
Your Suppliers Hate Your Portal
© 2014 Ariba – an SAP company. All rights reserved.20

21. 21
Open
Complete
Global
Non-disruptive
Intelligent
Scalable
Secure
How to Choose Your Network

22. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 22
Feel free to connect with me at:
James@ariba.com
@JamesMarland
Read my Blog: http://thenetworkedeconomy.com/author/jmarland/
+44 (0) 7786 314003
THANK YOU!