Beyond EDI - Unlocking new value with SAP Ariba_July2016
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The document compares electronic data interchange (EDI) and the Ariba Network for conducting business transactions. EDI allows reliable exchanges of documents between two established parties but lacks collaboration capabilities. The Ariba Network serves as a global marketplace allowing exploration of options and real-time collaboration with suppliers. It offers advantages like ease of use, speed, visibility, and integration with other SAP solutions. Deloitte can help organizations unlock value through a strategic transformation to the Ariba Network using their experience implementing SAP solutions and focus on aligning technology with business goals.
Beyond EDI - Unlocking new value with SAP Ariba_July2016
- 1. Beyond EDI Unlocking new value with transactions enabled by SAP® Ariba® and the Ariba® Network
- 2. 2 Business today is about more than connecting with suppliers. It’s about more than getting what you pay for. Business today is about engaging, collaborating, and adapting instantly to evolving needs, and finding new sources of value. It’s a vision that is supported by SAP® Ariba® and the Ariba® Network, a modern digital platform for commerce. As a global trading community, the Ariba Network serves as a business-to-business marketplace for buying and selling goods and services “at the speed of the Internet.” And it’s backed by an extensive SAP Ariba suite of feature-rich solutions—covering sourcing, contract management, supplier management, procurement, working capital optimization, and spend visibility—to help businesses better visualize information, make meaningful decisions, and execute effectively. Exploring vs. exchanging By delivering sophisticated collaboration and automation capabilities and by transforming a mass of data into actionable insights, SAP Ariba solutions can help businesses reduce inefficiencies during the procurement process, discover opportunities for value, and explore them. But many organizations continue to rely on a familiar yet aging method for conducting transactions electronically. For many businesses, electronic data interchange (EDI) remains the go-to-method for reliably exchanging the documents involved in buying and selling goods and services, from purchase orders and bills of lading to invoices and payment documents. The exchange often happens in a peer-to-peer, back-and-forth fashion between two parties with an established relationship. Many times a costly value-added network (or VAN) is required to facilitate the relationship. But in a dynamic digital world, in which collaboration and the ability to explore evolving transaction possibilities must happen in real time, EDI is quickly showing its age. “As a global trading community, the Ariba Network serves as a business-to-business marketplace for buying and selling goods and services at the speed of the Internet.”
- 3. 3 The Ariba Network vs. EDI Shifting from EDI to the Ariba Network can help your organization uncover new opportunities for value and operate more effectively amid an evolving procurement landscape. How does the Ariba Network compare with EDI? Here’s a look at some core differences. Collaboration The Ariba Network provides a marketplace for exploring options and communicating with prospective and existing vendors, whereas EDI is limited to vendors with which you are already connected. The Ariba Network offers a single portal interface for all supplier collaboration, while providing uniform formats for document exchange. With EDI, each entity could be using a different flavor of EDI, requiring you to manage each unique version when customizing interfaces. Market alignment The Ariba Network offers speedy implementation time as well as ease of use. Buyers who remain in “EDI only” mode could stand to lose ground to competitors who embrace more agile and value-oriented transaction platforms. Transparency The Ariba Network offers real-time transac- tion validation while delivering complete transaction visibility. Want to monitor buyer or supplier inventory in real time so you can make more informed decisions? Need a dashboard so you can clearly see when to expect orders? The Ariba Network supports those abilities. To do the same with EDI requires a third-party portal. Integration with other SAP solutions SAP® S/4HANA is a core digital platform for doing business. The Ariba Network, as part of the SAP family, can easily integrate with SAP S/4HANA’s capabilities—to help unlock new business value for your organization. The Ariba Network also can plug in to other SAP-enabled capabilities. For example, if your plan for the Internet of Things and your supply chain involves sensor-based alerts, process triggers, and apps built with SAP HANA® Cloud Platform, then the Ariba Network can fit well within that plan. Flexibility The Ariba Network is backward-compatible with EDI—but EDI and its point-to-point data transmission model don’t support the Ariba Network. As EDI relies on older file standards, its age and lack of flexibility can be limiting. Speed With EDI, enabling a supplier can be intensive, in many cases requiring the supplier to map directly to the buyer’s system. The Ariba Network is designed to accelerate supplier onboarding, supporting unlimited high number of supplier connections. EDI can take two to three months per connection, including testing and deployment. Customization Procurement-related needs vary based on industry, organization, department, and user role. The Ariba Network can address those needs by providing options for customization and personalization—not just a static interface. 1. Support of different formats • Supports EDI Transactions (backward compatibility) • Supports various file formats. Option of selecting the transaction protocol most cost-effective for them (i.e. no need for EDI hardware/ software/mapping services) 2. Error monitoring • Ensures Network based SMART Invoicing rules allow for “real-time” transaction error /detect capability / reduced exceptions / supplier inquiries embedded within the Network for ALL suppliers 3. Network Services • Utilizes available Network services such as Dynamic Discounting, eCatalog Content, SMART Invoicing and Global VAT compliance. These services are unavailable for EDI customers 4. Supplier enablement • Eliminates need to license EDI Translation Hardware / Software / Resources to perform / support point-to-point mapping • Facilitates higher rate of supplier adoption 5. Data Visibility • Utilizes “Real-Time” transacton validation • Ensures complete transaction visibility 6. Supplier adoption • Higher rate of Supplier adoption due to lower lead times, ease of use 7. Consistency and uniformity • Allows for a single portal interface for Supplier collaboration with a uniform technology, unlike EDI connections that are different and need to be managed separately • Utilizes a consistent look and feel that is the same for all suppliers and supports both direct and indirect procurement scenarios 8. Transaction volume • Consolidation of transaction volume via the Ariba Network leader to higher tier of rating with implied savings • Allows easy adoption by low transaction suppliers as well 9. Lead times to implement • Lowers implementation time significantly. The Ariba Network helps reduce implementation costs. 10. Support Model • Utilizes the SAP-Ariba 24x7 Global Help Desk, resulting in lower support costs for the customer, unlike a traditional EDI model where the customer supports EDI technology and related issues Ariba Network vs. EDI Features EDI AN
- 4. 4 “Our global network consists of more than 13,000 business and technology professionals focused specifically on SAP.” Why Deloitte for SAP Ariba? There are plenty of reasons to work with Deloitte professionals when it comes to unlocking new value with SAP Ariba solutions. Here are a few. SAP Ariba know-how We are a reseller of SAP software licenses and an experienced SAP implementer. In fact, we have a long track record of effective implementations that pre-date SAP’s acquisition of Ariba. We have extensive experience in system integration, with a long history of delivering projects on time and on budget. Business focus Our “business first” approach means we begin with understanding your current business processes, how you can improve them, and how a realigned set of processes can work within a modern SAP and SAP Ariba landscape to deliver new value for your organization. Tools for moving fast We understand that speed is critical. Building on the SAP Activate innovation adoption framework, we use the Deloitte Enterprise Value Delivery for Agile approach to guide your supply chain and procurement transfor- mation, using proprietary tools to jump-start and then accelerate the transformation. Comprehensive capabilities Our global network of more than 13,000 business and technology professionals focused specifically on SAP means we can address needs across the enterprise, across industries, and across geographies. More than that, we can customize the SAP Ariba solutions to meet the unique needs of your business. SAP alignment We have a lengthy history with SAP solutions—with a global SAP alliance that extends back to 1989. Our long-standing experience plus our ongoing co-innovation efforts with SAP mean we deeply understand where SAP solutions are going. And as recipient of a 2016 SAP Pinnacle Award for partner excellence, we understand how to unlock the solution’s value and align it with your procurement activities and your business goals.
- 5. 5 Let’s talk Moving forward with the Ariba Network requires a strategy. We can help. If a strategic transformation of procurement is one of your goals, we should talk. Contact us to get the conversation started. Krishnakant (KK) Dave Principal, Deloitte Consulting LLP Email: kdave@deloitte.com Frederic Girardeau-Montaut Director, Deloitte Consulting LLP Email: fgirardeau@deloitte.com Ganesh Gurumurthy Senior Consultant, Deloitte Consulting LLP Email: ggurumurthy@deloitte.com Prashanth Pai Specialist Senior, Deloitte Consulting LLP Email: ppai@deloitte.com SAP@Deloitte.com www.Deloitte.com/SAP @DeloitteSAP
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