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Extending the Value of On-Premise with Source-to-Pay in the Cloud

by Chris Haydon | SAPinsider, Volume 17, Issue 2

April 26, 2016

Advances in cloud computing and business networks have changed business in ways that could not have been imagined a few years ago, and these changes touch every aspect of an organization. Procurement and supply chain management are no exception. Cloud applications can modernize processes across the source-to-pay process and bring greater efficiency to the supply chain. At the same time, companies can elect to extend their current on-premise applications by combining them with cloud capabilities. Discover how SAP Ariba delivers these cloud applications and enables greater efficiency in procurement and supply chain processes.

Technology is changing lives and businesses in ways that would have seemed unfathomable a few years ago. Just as social networks, mobile devices, and apps make it easier for us to shop, share, and consume in our daily lives, business networks and cloud applications make it easier for companies to manage their supply chains, engage with customers, and cooperate with partners on a more connected level. By investing in the cloud and business networks, innovative companies can enable new processes that allow them to run their business in ways they never thought possible while extending and maximizing their investments in on-premise technology.

Changes in procurement and supply chain management tools can reshape how companies do business. SAP Ariba offers a wide array of cloud-based solutions that can bring enhanced efficiency and in-depth insights to an organization.

Modernizing End-to-End Processes

AIA Group, the world’s second largest life insurance group, serves as an example of how an organization can evolve its end-to-end processes. Operating in 18 markets across the Asia-Pacific region, it needed a standard, transparent process through which it could source goods and services, along with an integrated system to fuel it. The company created a centralized operating model for sourcing and procurement that allowed it to leverage collective buying power and drive collaboration among key stakeholders. Once this operating model was in place, the company could begin digitizing its operations.

With SAP ERP as its foundation, AIA Group began adding solutions from SAP Ariba to its on-premise portfolio to fuel a simpler, smarter, more connected source-to-pay process. Solutions included Ariba Sourcing for automating negotiations across all categories of spend; Ariba Contract Management for more efficiently creating, executing, and managing best-value agreements; Ariba Supplier Information and Performance Management for simplifying onboarding and management of its global supply base; and Ariba Procure-to-Pay for improving the speed, simplicity, and results of its procure-to-pay process from requisition to reconciliation.

“We have seen improved cross-functional and market collaboration and adoption,” says David Man, Head of Finance Transformation and Operations at AIA Group. “And this has led to significant sourcing savings and process efficiencies.”

An integrated SAP and SAP Ariba implementation provides a common platform that unifies apps, data, and processes.

Extending On-Premise Value to the Cloud

Companies of all shapes and sizes are thinking more strategically about leveraging innovative technologies to unlock new value for their businesses. However, this doesn’t mean they will have to abandon existing technology investments. They can combine cloud applications with on-premise technology to meet their specific needs.

Few companies want the costs, risks, and complications associated with a “potpourri” cloud environment, where a host of discrete, process-specific apps are strung together through a series of loosely coupled integrations that need to be maintained and upgraded overtime. More effective is an application portfolio built on a common cloud platform that unifies all their apps, data, and processes with a common data model, reporting, and user interface. And that is what SAP and SAP Ariba together can provide. Learn more at

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Chris Haydon
Chris Haydon

Chief Strategy Officer and Senior Vice President of Business Development,
SAP Ariba

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