Arbia company analysis

Description
This is a presentation that includes the solutions software prvider company Arbia which is management solutions firm and offers services, training and consulting.

? Overview

? Evolution of Ariba and Industry
? Solution Offerings ? Buyers

? Competitors
? SWOT Analysis ? Revenue Model

? Future Trends

? Ariba 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

? Spend 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.

? Ariba 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.
EProcurement Spend Management Solution provider

- Spend Management Solutions
- Contract Management Solutions

- Financial Solutions
- Supplier Solutions

? 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 Basic ? Spend Management Professional

? Spend Management Enterprise

Speed, sustainability, coverage, flexibility

? Ariba 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.

Invoice, Payment and Working Capital Management ? Improve visibility and control ? Reduce transaction and business costs ? Mitigate risk and fraud ? Achieve organizational efficiency and effectiveness ? Comply with corporate and regulatory requirements ? Effectively benchmark and measure performance

B2B 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 customers As a result, you can realize benefits such as increased sales, improved cash flow, and reduced operational costs.

? Handle 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.

13 prominence 14 2 modes 15 nav

17glossary

16 switch views

? ? ? ? ? ? ? ? ? ? ? ? ? ?

Automotive Banking Brewers Business Services/Consulting CPG Cement Chemicals Computer Software & Services Construction Construction Materials Consumer Products Distribution/Wholesale Education Energy

? ? ? ? ? ? ? ? ? ? ?

?
? ? ? ?

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

? ADP ? AMD ? Accenture ? Adquira ? Aetna Inc. ? BMW Group ? Bear Stearns & Co. Inc. ? Bell Aliant ? CGI Group Inc.

? Deloitte Consulting ? Department of Education and ? ? ? ? ? ? ? ? ?

? CIBC
? CIMB Investment Bank

Berhad

Training, Australia Diageo plc Hallmark Cards, Inc First American Corporation JK Lakshmi Cements Marico Industries Ltd. Merrill Lynch & Co., Inc. Motorola, Inc. Target Corporation Tata Motors Limited

Ariba's competitors majorly include SAP, Oracle, Global eProcure, Zycus, Basware, and Emptoris.
? ERP: i2 Technology, SAP, Oracle, People Soft, Baan ? Web 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: Chemdex, e-STEEL, PlasticNet, PaperExchange
? Horizontal Marketplace:
? VerticalNet (Aggregated communities model) ? TradeOut.com (More integrated marketplace model)

Ariba Market Cap: Employees: Rev. growth: Revenue: 995.53M 1740 -1.3% 340.19M

Oracle Corp. 106.94B 86,000 -5.2% 23.25B

SAP 55.18B 48,561 -9.9% N/A

Industry 164.62M 554 21.9% 182.99M

? Strengths
? Variety of solutions and technology ? Top companies as customer – Twenty-one of the world’s best-

performing supply chain organizations use Ariba solutions ? Large Customer base ? Strategic 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 suppliers
? Weaknesses
? Ariba does not use have the ability to interoperate with exchanges

using software from competitors.

? Opportunities
? On-demand solution for automating the entire contract

lifecycle ? Expanding in new areas – aribaweb
? Threats
? New Technologies ? Expansion by Competitors – i2 acquires rightsworks

steer competition in e procurement segment ? New Niche markets created by competitors

Revenue Model
Contents Subscription

ARIBA
Commission Auction Advertising Fees

Software Licensing

Auction-Driven Commission

? Software licensing : Software for Spend Management,

? ? ?

?

Sourcing, Contract Management, Procurement, Invoicing etc. Auction Driven Commission: Auction and reverse auction services Advertising fees Content Subscription – supplier membership program, technical services support Buying & selling

? Capture buying power

? Attract and enable suppliers
? Build out the network ? Create a marketplace platform

? Provide network and commerce services

? Frictionless Supplier Registration

? Open System (Aribaweb)
? Making markets gets easier ? Bring on the services

? B2B ecommerce Integration
? Comprehensive Risk Management Solutions



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