Business networks are opening up tremendous new opportunities to build a modern IT platform - one that enables businesses to simplify connectivity, digitize processes, collaborate with partners around the globe, reduce operating costs, and drive innovation. In this session, see IDC’s findings from their research report “Business Networks: The Next Wave of Innovation” and learn how Honeywell Performance Materials & Technologies is maximizing performance, improving visibility into critical procurement processes, and controlling spend on the Ariba Network. SAP Ariba, ASUG webinar

1. Webinar, November 12, 2015
Business Networks: The Next Wave of Innovation

2. Rob Mihalko
Vice President Ariba Network
Marketing, Ariba
Speakers
Sri Panamgipalli
IT Manager - Order to Cash /
Procurement, Honeywell Performance
Materials & Technologies
Michael Fauscette
Group Vice President, Software
Business Solutions, IDC
Baskar Radhakrishnan
Director, Ariba Practice - Enterprise
Services, NTT DATA

3. The Next Wave of Innovation
Michael Fauscette
Group Vice President, Software Business
Solutions, IDC

4. Silos: Organization - Culture – Application – Data
 Preventing the flow of data to the
point of need
 Creating inconsistent communications
with customers, employees, partners
and suppliers
 Preventing timely resolution of
customer support issues
 Impeding agile responses to
competitive threats
 Decreasing customer satisfaction and
employee morale
 Increasing expenses
 Missed business model opportunities,
decreased innovation and co-
innovation

5. Workforce and Worksource
Supplier
Partners
Data
Capital
Inventory
Managing Your Resources

6. Business Model Innovation
Suppliers Partners
Marketplace

7. 7
Why is This So Difficult?
Source: IDC CXIT Survey, Feb 2015, N= 78
In your opinion, what are the top 3 challenges for your organization in delivering a superior experience to your suppliers?
12.6
13.7
15.2
21.1
23.4
25.6
29.3
34.5
35.3
43.7
.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0
Recruiting the right partners
Utilizing customer data to identify trends and areas of improvement
Hiring the right employees
Articulating corporate or organizational messaging and customer experience strategies to
retail, channel, partners and suppliers.
Ensuring that our employees, business partners, and suppliers have a unified view of each
customer for all to be "on the same page"
Training employees properly for the job
Aligning channel, retail, dealers, and other partners to corporate or organizational
messaging and customer experience strategies
Ensuring that supplier inquiries are responded to, followed up upon, and documented
Selecting and managing the right suppliers
Delivering a consistent supplier experience across multiple communication channels
© IDC Visit us at IDC.com and follow us on Twitter: @IDC

8. 61.0%
66.8%
71.6%
74.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Flexibility to manage exceptions, returned
goods, and delivery issues
Excellent and extensive supplier self-service
capabilities on web or mobile apps
Presence across many channels of
communication, including mobile devices, social
networks, chat, etc.
Alignment of processes ensure that all relevant
information is readily available and shared.
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
“Factors” for Superior Supplier Experience
Source: IDC CXIT Survey, Feb 2015, N= 78

9. Marketplace  Business model opportunities
 Improved supplier and partner
performance and quality
 Transparency and better
transaction management
 Business opportunity for suppliers
and partners to increase reach and
increase innovation and
collaboration
 Deeper data for measuring and
improving performance by all
constituents – predictive modeling

10. Takeaways  Improve business performance as
a part of a business ecosystem or
network
 Business networks support agile
and adaptive business models that
can respond to new competitive
threats
 Connecting to mature and
established networks helps
jumpstart your own network
development

11. Business Networks & Ariba
Securely Managing Multi-Enterprise Collaboration
Rob Mihalko
Vice President Ariba Network Marketing, Ariba

12. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Customer
Business Networks assist IT in delivering value to the LOB for their external
collaborative business processes
Procurement Supply Chain Workforce Finance
Risk &
Sustainability
Travel &
Expense
Sales &
Marketing
Deliver secure, reliable system streamlining
external business collaboration
and ensure compliance
IT

13. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Customer
Business Networks deliver value specifically for the CIO to manage multi-
enterprise collaboration
Simplify
Connectivity
Secure
Transactions
& Collaborations
Drive
Compliance
Leverage
Network Intelligence

14. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 14Customer
1 2 3
Open
Any Vendors
Any System
Any Protocols
Comprehensive
All Suppliers, All Collaborative
commerce processes, All
geographies
Intelligent
Automated, Contextual,
Real-time, Big Data driven
Ariba Network connects people, systems and processes to simplify business
commerce
YOUR TRADING
PARTNERS
Your
Company
YOUR
COMPANY
YOUR SYSTEMS

15. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 15Customer
Sourcing
Procurement
Process
AP Process
Compliance
WCM &
Discounts
Payment &
Remittance
AR Process
Order
Processing
Sales &
Contracting
Marketing
107 M
Documents annually
(PO + invoices)
$900+ B
In annual commerce
Ariba Network delivers measurable benefits and value to companies of all
sizes, industries, regions
Source: Ariba customer surveys and interviews
BUYER VALUE SELLER VALUE
2 M
Companies

16. Honeywell: Purchase Order / Invoice Automation
Using the Ariba Network
Sri Panamgipalli
IT Manager - Order to Cash / Procurement,
Honeywell Performance Materials & Technologies
Baskar Radhakrishnan
Director, Ariba Practice - Enterprise Services, NTT DATA

17. 17 HONEYWELL
Honeywell
$40.3B
in sales*
55%
sales outside U.S.
• 1,300 sites
• 70 countries
• 131,000 employees
• Morris Plains, NJ, USA
headquarters
• Fortune 100
Performance Materials
and Technologies
Automation and
Control Solutions
Aerospace

18. 18 HONEYWELL
Honeywell
Focused on solutions for the most
challenging problems faced by
customers around the globe
Energy
efficiency
and clean
energy
generation
Safety &
security
of people,
plants,
assets,
and data
Rapid global
urbanization
and resource
development
Productivity
and
connectivity
PMT and all
Honeywell
businesses,
products and
services address
these major
global issues.

19. 19 HONEYWELL
What We Do

20. 20 HONEYWELL
Project Background
• Honeywell PMT was using JP Morgan Chase “Xign” Payment solution to collaborate with
suppliers over a secure electronic settlement network to manage purchase orders,
invoices and payments.
• PMT Procurement was looking to replace Xign, allowing suppliers to gain “real-time”
invoice and payment status and also allowing accelerated payments in exchange for
early payment discounts.
• Several payment & supplier collaboration networks were evaluated & eventually PMT
selected the Ariba Network, which offers end to end collaboration services covering POs,
acknowledgements, ASN and invoices
• Honeywell PMT had about 450 suppliers to be “on-boarded” to the Ariba Network –
providing key advantages to both the buy-side and supply-side solutions and allowing for
increased supplier collaboration.

21. 21 HONEYWELL
Drivers for Change
• Need for supplier collaboration & process automation
• Need for entire order-to-invoice cycle via one network
• Decrease paper handling & exceptions
• Transparency with suppliers
• Ease of supplier on-boarding

22. 22 HONEYWELL
The Solution
SAP
ERP
MM
Purchase Order
Confirmations
POs, PO Changes & PO Cancel
Order Confirmation
Advanced Ship Notice
Invoice /
Accounting Doc. Invoice Status Update
Invoice
Ariba Collaborative Commerce, Ariba Collaborative
Finance

23. 23 HONEYWELL
Business Impact
• Real time invoice status for suppliers, eliminating calls to AP
• Compressed invoice processing cycle from a few days to
immediate
• Support the exchange of multiple file formats to accommodate
all suppliers
• Define best practices for supplier enablement
• Transaction processing efficiency gained by on time payments,
standardized payment terms, reduced payment cycle time,
reduced invoice error handling

24. 24 HONEYWELL
SAP Business Suite Add-On for Ariba Integration
SAP
ERP
Modification free, release
independentSimple
installation
Robust, out of the box
integrationWell known and proven
infrastructure
Leveraging existing
landscape
Add-On for SAP
Business Suite systems
(e.g. SAP ERP >= 6.0
EhP0, SAP SRM >= 7.00)
Connectivity setup
within short time
frame
Integration via application interfaces
Using cXML (commerce eXtensible
Markup Language) message format
SAP NetWeaver Web
Service Infrastructure
Can be used for all connectivity options
Select the connectivity option that fits best to
your needs and landscape
Main Benefits

25. 25 HONEYWELL
SAP Business Suite Add-On for Ariba Integration
Secure connection
from OnPremise to
OnDemand
Fast & simple
No DMZ required, no reverse proxy
General available
Delivered automatically with
Ariba Network membership
Supports highest level of
security: connection is
always opened by
OnPremise towards the
Cloud (Ariba Network)
Usage of HTTPS protocol,
encrypting transmitted
data
RDS package planned
Integration with
predefined scope and
fixed price services
Polling of Ariba Network messages from
the Suite (for direct connectivity) or
from SAP NetWeaver PI for mediated
connectivity
Low TCO since DMZ is not required
GA since March 2014,
SP05 on January 30, 2015
Add-On software is available for SAP
Business Suite customers, having
acquired an Ariba Network account
Main Benefits
SAP
ERP

26. 26 HONEYWELL
Lessons Learned
Solution Design
• Engage AP process driver ahead of time & ensure he/she is part of
the process
• Understand the open PO migration requirements, start the
conversation during the design phase
• Involve IT before selecting the integration option
• Clearly define a process in terms of how to handle the invoices which
are failed in SAP

27. Thank you!
Any questions?
Q&A