ContentsOverviewEvolution of Ariba and IndustrySolution OfferingsBuyersCompetitorsSWOT AnalysisRevenue ModelFuture Trends

OverviewAriba was founded in 1996 by Keith Krach on

the idea of using the Internet to enable companies to facilitate and improve the procurement  process.

Ariba provides "Spend Management solutions" which help companies "analyze, understand, and manage their corporate spending to achieve cost savings and business process efficiency.“

Supplier Network facilitates the order of goods and services

Offers technical support services, implementation, training and consulting

OverviewSpend Management ?- Spend Management aligns organizations, processes, and

systems to analyze, source, contract, procure, pay, manage and continuously improve global supply for best-value performance in support of the strategic objectives of the business.

- Spend Analysis, Strategic Sourcing, Contract Management, Procurement, Invoice & Payment, Supplier Management.

On Demand ?- Ariba spend management solutions are designed to

accelerate adoption and value without the cost, burdens, or risks of implementing costly software or hardware.

Evolution of Ariba and IndustryAriba acquired ”Free Markets” which gave the

company a software package both in the upstream (sourcing) and downstream (Buyer) of the procurement process. In late 2007, Ariba took over the company ”Procuri”which enhanced the company's client base and on-demand abilities.

Ariba is now a solutions provider.The implication of "solutions" is that Ariba helps

companies plan and manage procurement strategies, rather than simply sell them applications for executing purchases.

Solutions

- Spend Management Solutions

- Contract Management Solutions

- Financial Solutions

- Supplier Solutions

Spend Management Lifecycle

Spend Analysis: View and analyze all spending to drive informed sourcing and business decisions

Strategic Sourcing:Impacts cost, quality and performance of supply chain

Contract: Create and administer all trading agreements for maximum compliance and minimal risk.

Procure: Procure and manage all spend categories for greater compliance and savings

Pay: Streamline invoicing and payment to improve cash flow

Manage: offer best-practices and templates to ensure proper supplier selection, measurement, and risk and performance management

Spend Management SolutionsSpend Management Basic

Spend Management Professional

Spend Management Enterprise

Speed, sustainability, coverage, flexibility

Contract Management SolutionsAriba Contracts helps maximize the value of

contractual agreements and improve compliance 

Ariba's global services team assists with implementation, training, program design, contract conversion, and risk assessment to ensure rapid deployment and ongoing success. 

Lower costs, improve revenues and profits, enhance compliance, and reduce risks and legal exposure. 

Financial SolutionsInvoice, Payment and Working Capital

ManagementImprove visibility and controlReduce transaction and business costsMitigate risk and fraudAchieve organizational efficiency and

effectivenessComply with corporate and regulatory

requirementsEffectively benchmark and measure performance

Supplier SolutionsB2B eCommerce and marketing sales programs, Order collaboration solutions, Invoice & Payment collaboration solutions

Support all types of customer sourcing, eProcurement, and online invoicing initiatives

Collaborate electronically on RFQs, bids, orders, change orders, invoices, and payments

Respond swiftly to changing customer needs, requests, and issues

Grow your wallet share with existing customers and capture new customersAs a result, you can realize benefits such as increased sales, improved cash flow, and reduced operational costs. 

On-Demand SolutionsHandle the growing pressures from inflation,

globalization, and regulatory compliance on their business while effectively managing costs and delivering more savings to the bottom line

By providing a combination of low start-up costs, low IT resources required for startup through maintenance mode, rapid on-time implementation and quick access to the latest solutions, on-demand solutions are successfully meeting today's challenge

Ariba is the only provider that combines leading spend management and contract management solutions with global consulting and category expertise — and gives the flexibility to deploy, pay, and scale to fit company's unique needs and budget

More than 900 companies – from the Global 2000 to growing enterprises – are already using Ariba solutions and services to accelerate and sustain their spend management and contract management goals.

Facilitating Buyers

13 prominence

15 nav

14 2 modes

16 switch views

17glossary

Easy User Interface

Customers - SectorsAutomotiveBankingBrewersBusiness

Services/ConsultingCPGCementChemicalsComputer Software &

ServicesConstructionConstruction MaterialsConsumer ProductsDistribution/WholesaleEducationEnergy

Engineering, Scientific & CAD/CAM Software

Federal Government Finance/Accounting Food, Beverage & Tobacco Health Care Services High Tech Insurance Leisure Manufacturing Media Other Pharmaceutical Retail Technology

Manufacturer/Developer Telecommunications Transaction, Credit & Collections

List of few CustomersADPAMD        AccentureAdquiraAetna Inc.BMW GroupBear Stearns & Co. Inc.  Bell AliantCGI Group Inc.CIBCCIMB Investment Bank

Berhad

Deloitte ConsultingDepartment of Education

and Training, Australia  Diageo plc  Hallmark Cards, IncFirst American

CorporationJK Lakshmi CementsMarico Industries Ltd.Merrill Lynch & Co., Inc.  Motorola, Inc.  Target CorporationTata Motors Limited  

Industries Where Ariba CompetesAriba's competitors majorly include SAP, Oracle, Global eProcure, Zycus,

Basware, and Emptoris.

ERP: i2 Technology, SAP, Oracle, People Soft, BaanWeb based Commerce Enablers

Ariba, CommerceOne, Intelisys: browser-based, XML-enabled, purchasing automation software

AltraEnergy, Bidcom: commerce solutions Harbinger, SterlingCommerce: EDI Network Solutions SmartAge, BigStep: Back-ends

Vertical Marketplace:Vertical Marketplace: Chemdex, e-STEEL, PlasticNet, PaperExchange

Horizontal Marketplace:Horizontal Marketplace: VerticalNet (Aggregated communities model)

TradeOut.com (More integrated marketplace model)

Direct Competitor ComparisonAriba Oracle

Corp.SAP Industry

Market Cap:

995.53M 106.94B 55.18B 164.62M

Employees: 1740 86,000 48,561 554

Rev. growth:

-1.3% -5.2% -9.9% 21.9%

Revenue: 340.19M 23.25B N/A 182.99M

SWOTStrengths

Variety of solutions and technologyTop companies as customer – Twenty-one of the

world’s best-performing supply chain organizations use Ariba solutions

Large Customer baseStrategic alliances with leading companies to 

Diversification of services and features - (American Express and Ariba: Strategic Alliance To Deliver Enhanced Purchasing Card Capabilities)

A one stop shop for the buyers and suppliersWeaknesses

Ariba does not use have the ability to interoperate with exchanges using software from competitors.

SWOTOpportunities

On-demand solution for automating the entire contract lifecycle

Expanding in new areas – aribawebThreats

New TechnologiesExpansion by Competitors – i2 acquires

rightsworks steer competition in e procurement segment

New Niche markets created by competitors

Revenue ModelContents Subscription

A R I B A

AdvertisingFees

Auction-Driven Commission

Software Licensing

Link serviceAccess fees

Promotional

services

ORMSLicensing

feesA

uction

Com

mission

Buying &

Selling

Revenue ModelSoftware licensing : Software for Spend

Management, Sourcing, Contract Management, Procurement, Invoicing etc.

Auction Driven Commission: Auction and reverse auction services

Advertising feesContent Subscription – supplier

membership program, technical services support

Buying & selling

Five Pronged Strategy of AribaCapture buying power

Attract and enable suppliers

Build out the network

Create a marketplace platform

Provide network and commerce services

Measuring against the strategyFrictionless Supplier Registration

Open System

Making markets gets easier

Bring on the services

Comprehensive Risk Management Solutions