Contenu connexe
Similaire à Thierry Loir - The Ariba Network : a two sided business model (20)
Thierry Loir - The Ariba Network : a two sided business model
- 1. The Ariba Network
A two-sided business model
Thierry Loir, Solution Executive, Procurement, SAP BeLux
- 2. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 2Public
Source: McKinsey & Company, “The rise of the networked enterprise, Web 2.0
finds it’s payday.” Survey of 4,394 executives. December 2010
“ Networked enterprises are 50% more likely to have
increased sales, higher profit margins, gain market share,
and be a market leader. ”
41%
improved
collaboration
across
silos
55%
better
information
sharing
24%
increased
revenue
77%
increased
access to
knowledge
63%
increased
marketing
effectiveness
43%
greater
market
share
8%
higher
margins
“Increasingly companies are
embracing collaboration as part of
their strategy to grow.”
The Rise of the Networked Economy
- 3. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 3Public
So it all starts with the Network…
1.4+ million
Trading Partners
72+ million
Annual Invoices
$USD 170B
In Sourcing volume
190+
Countries
$USD 500B+
In Transaction Volume
15 million
Leads Sent to Sellers
Buyer Participants
Global
Enterprises
Mid-Market
Companies
Functional
Buyers
Seller Participants
Complex
(e.g. temp
labor, SOW,
T&E)
Simple
(e.g. catalog,
Pcard, etc.)
Automated
(Direct, MRO)
2x +
- 4. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 4Public
Saphire Orlando, June 2014
- 5. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 5Public
… on which apps operate…
Spend
Viz
Srcg
Contra
ct
Perf
Mgt
Proc
…
Profile
Leads
PO’s
IN’s
Score
Cards
Dyn.
Dsc’g
…
Network
Intelligence
- 6. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 6Public
… integrated with backend systems
Any
eDoc
HTML
EDI
Email
Paper
FAX
CSV
cXML
- 7. © 2014 SAP AG or an SAP affiliate company. All rights reserved.
5 paraboles
- 8. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 8Public
“What Hath God Wrought?”
Created by the Telegraph:
Newspaper Wire Services
Wire Transfers
Futures Trading
Greenwich Mean Time
Sears Roebuck and the Catalogue
Railways
- 9. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 9Public
Reaching Critical Mass (= when the value of joining is higher than the cost)
- 10. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 10Public
Reaching Critical Mass
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 2014 15 years Ariba
Source: Infrastructure History Series (Amy Friedlander) http://www.cnri.reston.va.us/series.html
- 11. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 11Public
Guaranteed Delivery?
- 12. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 12Public
Anti-Virus Software for Finance
- 13. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 13Public
RESEARCH BUYING & SELLING COMMUNITY &
CONTENT
COMMUNICATION
& COLLABORATION
Personal Networks Make Our Lives Run Better…
- 14. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 14Public
Procurement
without a
Network is
“Batteries not
included”
- 15. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 15Public
VIDEO GAME
MANUFACTURERS
SPICE
MARKET
What are “Two-Sided Businesses?”
Customer Group 1 Customer Group 2
ReadersAdvertisers
Video Game
Developers
Video Game
Players
Spice
Growers
People Who
Cook
Group
1
Group
2
Attracts two parties who
need each other
Promotes ongoing
interactions between parties
Superior benefits are
realized by both parties
Marketplaces Platforms Exchanges Malls Clubs
NEWSPAPERS
- 16. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 16Public
Fun Facts About Ariba Network
Ariba Network
Buyers includes all
types of companies
1 2 43Ariba Network
supports a broad
mix of spend
Ariba Network
is global
Ariba Network
supports a broad
range of commerce
11,200
1,270
750
- 17. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 17Public
Ariba’s Two-Sided Model Has ACCELERATED Growth of the Network
2005 2008 20112006 2007 2009 2010 2012 201320041999 2001 2002 20032000
Registered
Members
$$$ Transaction
(USD in millions)
Supplier Membership
Program (SMP)
introduced
Seller fee: fixed fee
per chargeable
relationship
Buyer Membership
Program introduced
Transaction based-
subscription fees for
buyers
Introduced
seller SMP
package
subscriptions
Spend-based
model for
SMP sellers
introduced Ariba Discovery
Pricing
introduced for
lead responses
One-Sided Model
$0.02B
$43B
$21B
$2B
$0.6B
177
77,246
15,918 44,0812,665
Ariba Network launches
Ariba Network free to
sellers
Buyers need to pay TSS
fees for Network access
Two-Sided Model
$59B
121,017
$163B
$135B
$112B
$108B
$99B$101B
$74B
$450B
$500B+
759,159
153,924 179,872 200,305
289,482
351,394
427,868
1,090,052
1,400,000
- 18. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 18Public
Invest in Customer Success: Customer Programs & Services
BEST IN CLASS
CUSTOMER SUPPORT
CUSTOMER SATISFACTION
(OCT ’11 – NOV ’12):
8.94 / 10
Customer Satisfaction Survey Scores
Perfect 10:
58%
Other
calls answered in 120 sec. or less
SERVICE LEVEL: 8.5/10
First Contact
Resolution
Monthly Avg.
since Oct ‘11
First Contact Resolution:
86%
Other
ROBUST PLATFORM
99.5%+
performance reliability
20
languages
SAS 70 and Webtrust certification
e-invoice VAT/tax
compliance in
39 countries
- 19. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 19Public
Invest in Customer Success: Customer Programs & Services
CUSTOMER ENGAGEMENT
Seller OnboardingCustomer Education
Online CollaborationIn-Person Events
CUSTOMER PROGRAMS
Supplier
Enablement
Programs
Seller Programs
Benchmarking
Programs
New
- 20. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 20Public
Demonstrate Benefits to Both Buyers and Sellers
Bid
Sell
SellersBuyers
Typical Value of Benefits Within Each Collaborative Business Process*
5-7%
4-15%
10-30%
4-7%
15%
0.25%
5%-10%
5-35%
7%-30%
15-35%+
15-45%
.20%
Process Savings
Savings on Basis of Spend
Increased Revenues
* Primary benefits listed. Additional benefits in many of the processes
- 21. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 21Public
21
Value Drives Seller Compliance to Your Automation Initiatives
Ariba
sellers
Non-Ariba
sellers
KEY FINDINGS*
• Sellers value top-line benefits
over costs
0% 20% 40% 60%
Increased customer
satisfaction
Increased visibility via
collaboration
Increased revenues
Decreased costs
Improved product / service
quality
Accelerated cash flows
Competitive response
Top Reasons Sellers Adopt*
• 55% recognize the value of
process visibility
*SOURCE: Ariba survey of 582 sellers
Participants
50% 50%
- 22. 22© 2014 SAP AG or an SAP affiliate company. All rights reserved. 22© 2013 Ariba, Inc . All rights reserved.
RoadmapStrategy InnovationsVision
Demand
Sensing & Shaping
Demand Signal Management
Customer Activity Repository
Project Ganges
Collaborative Supply
Chain
Ariba Business Network
ERP
Constraint-Based
Manufacturing Planning
Supply Chain Execution Platform
Transportation Management
Warehouse Management
Event Management
Supply Chain Planning Platform
Sales & Operations Planning, Inventory & Service Level Optimization
Predictive Demand Management, Supply Planning
Response Management
Control Tower & Integrity
The ProductStrategy isbased on Data ModelHarmonization and UserProfiles
SAP Supply Chain Product Strategy
Demand Driven Supply
Networks
Logistics & Order
Fulfillment
Integrated Business
Planning
Supply Chain Monitoring
22
Monitoring
Product Strategy
Planning
Networks
Logistics
New
New
- 23. © 2014 SAP AG or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Thierry Loir
Solution Executive, Procurement – SAP Belux
Thierry.loir@sap.com
+32 486 136 468