Implications of the Networked Economy for

Finance Drew Hofler – Director, Solutions Marketing

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Evolution of networks

Railroad Telecom Internet Social/Business

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RESEARCH BUYING & SELLING COMMUNITY &

CONTENT

COMMUNICATION

& COLLABORATION

Personal Networks Make Our Lives Run Better…

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A Guy and His Guitar

A Networked Economy Love Story

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Ac

co

un

ts

Pa

ya

ble

Pro

cu

re

me

nt

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A Company and Their Silos

A Networked Economy Sob Story

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Collaboration inefficiencies between companies is costly

(1) Basex Research

Your

Company

Your

Company

Paper based transactions !

Lack of visibility into

spend by category !

Lack of compliance !

Lack of visibility into total

workforce !

Missed sales

opportunities !

Your Trading Partners

Poor capital management !

Collaboration inefficiencies cost companies $650B (1)

annually

Inefficient manual

collaborations !

© 2013 SAP AG. All rights reserved. 7

Business Networks

connecting people, systems and processes to simplify business

commerce

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The Networked Enterprise

“Networked enterprises were 50% more likely than their peers to have increased

sales, higher profit margins, gain market share, and be a market leader.”

© 2014 SAP SE or an SAP affiliate company. All rights reserved.

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

© 2013 Ariba – an SAP company. All rights reserved. 9 Public

The Networked Economy:

Three (of many) Implications for Finance

1. Extraordinary Results from Unlikely Places • Driving Finance Metrics in Non-Finance Operations

2. Connecting Links of Value Chains • Networked Processes Capturing Strategic Value

3. Sharing (& Protecting) Critical Payments Data • Big Blue, Batman and 21st Century B2B Payments

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Extraordinary Results from Unlikely Places

How can a non-finance operation drive finance metrics?

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Connecting Links of Value Chains

How can back office processes contribute to strategic savings?

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Sharing (& Protecting) Critical Data

Big Blue, Batman, and 21st Century B2B Payments

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Home Depot – Customer Bank Account Info Hacked

• HD Reports bank account

info hacked

• 92.96 = $125.49B Market Cap

• 90.02 = $121.53B Market Cap

• Market Cap Loss in 2 Hours =

$3.9B

© 2013 Ariba – an SAP company. All rights reserved. 14 Public

The Networked Economy:

Three (of many) Implications for Finance

1. Extraordinary Results from Unlikely Places

1. Back Office Process Driving Strategic Savings.

2. Sharing (& Protecting) Critical Data

© 2013 Ariba – an SAP company. All rights reserved. 15 Public

The Ariba Business Network is the world’s largest business-to-business trading platform, used by more than 1.5 million

companies to, transact

over $700 billion of commerce annually. With many of their trading partners already using the service, companies around the

world use SAP Business Networks to simplify inter-enterprise commerce and enhance their results.

Unmatched Size and Scale to Transform Business Leverage the world’s largest Business Network

1.6+ M trading partners

108+ M documents (PO + invoices)

165+ M of catalog items

1 minute A company joins the network

11+ M timesheets processed

17 M leads sent to sellers

$730+ B in commerce annually

1.4 M Job Placements annually

16+ M Users

EVERY

Thank you

SAP NetworkedEconomy

SAP NetworkedEconomy

#NetworkedEconomy

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