850 Million People Can’t Be Wrong:How Social Networks Will Reshape B2B CommerceAndrew Bartolini @andrewbartolini

Justin Fogarty @justacio

#AribaLIVE

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“This month, we expect spend to:”

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850 Million People Can’t Be Wrong: How Social Networks Will Reshape B2B Commerce

Andrew BartoliniChief Research OfficerArdent PartnersApril 12, 2012

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Chief Research Officer, Ardent Partners Publisher, CPO Rising – www.cporising.comSummary Recognized expert in sourcing, procurement, AP, and supply management Named a “Pro to Know” by Supply and Demand Chain Executive three

times Former VP of Global Supply Mgmt. research at Aberdeen Group;

Benchmarked thousands of enterprises across all facets of their supply management operations

Experience

Leadership roles in sales, marketing, and services at Ariba and Commerce One. Rich experience in strategic sourcing, business process transformation, and software implementation. Background also includes consulting and investment banking.

Education MBA – Indiana University BA – College of the Holy Cross

ANDREW BARTOLI

NI

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Ardent Partners is a research and advisory firm focused on defining, advancing, and

promoting the supply management strategies, processes, and technologies that

drive business value and accelerate organizational transformation within the

enterprise.

ARDENT PARTNER

S

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www.cporising.com

CPO RISING: THE FIRST INDEPENDENT SITE FOR CPOS

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AGENDA

Introduction

Social Networks

B2B Commerce

B2B Use Cases

Summary

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50 MILLION PEOPLE

It took 38 years for radio to reach an

audience of 50 million.

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50 MILLION PEOPLE

It took 13 years for TV to reach an audience of 50 million.

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50 MILLION PEOPLE

It took 4 years for the

internet to reach 50

million users.

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50 MILLION PEOPLE

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It took <2 years for

Facebook to reach 50

million users.

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50 MILLION PEOPLE

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It took <2 years for

Facebook to reach 50

million users.

8Today: THEY CAN’T BE WRONG

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The Impact of Social

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Paradigm shift in the way people:

Communicate

Interact

Create, find, share, & use information

Big Question: How will this impact

business?

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Social Networks

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How many of you have an active?

HOW SOCIAL ARE YOU?

Copyright © 2012 - Ardent Partners Ltd.

Twitter Facts:

Founded: 2006

Network: 350 million+

Attributes:

“Microblogging” -

quick/informal

communication

between individuals

and groups.

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How many of you have an active?

HOW SOCIAL ARE YOU?

Copyright © 2012 - Ardent Partners Ltd.

LinkedIn Facts:

Founded: 2002

Network: 135 million+

Attributes: “Online

Contact Network” –

maintain professional

relationships. Jobs,

Updates, News, Info,

Groups

44,538 members

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How many of you use?

HOW SOCIAL ARE YOU?

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Wikipedia Facts:

Founded: 2001

Network: 21 million+

articles

Attributes: Free,

collaborative,

multilingual Internet

encyclopedia

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How many of you have an active?

HOW SOCIAL ARE YOU?

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Hundreds more for:

• Messaging

• File-sharing

• Video

• Blogs

• Gaming

• Ratings

• Dating

• Etc.

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Social Network Takeaways

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(1) Social networks are prevalent

(2) While the focus, offerings, services,

and members can be quite unique, it

is these same facets that make them

valuable

(3) Business has taken notice

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B2B Commerce

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B2B COMMERCE – KEY TRENDS SINCE 2000

Globalization

Communication Technology

The Internet

Process Automation (i.e. Spend Management

tools)

Commerce/Supplier/Payment

Networks

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B2B COMMERCE VS CONSUMER GAPS

“Why is B2C so easy and B2B so hard?”

~ Kevin Costello, Ariba LIVE 2012, 2011, 2010……

The B2C & B2B “gaps” fall into a few main

areas:

• Usability

• Features/Capabilities

• Adoption

• Impact

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SOCIAL BUSINESS VS SOCIAL MEDIA GAPS

“Why is Social Media so advanced and

Social Business non-existent?”

~ Andrew Bartolini, Ariba LIVE 2012

A few examples:

• Communication (i.e. Email dependence)

• Performance ratings

• Discovery

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B2B Use Cases

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COMMUNICATION (VIA “MICROBLOGGING”)

Value in a B2B Context:

Informal, frictionless, open, spontaneous

communication that encourages

participation

Use Case #1: Supplier

implementations

Use Case #2: Invoice dispute

resolution or status inquiriesCopyright © 2012 - Ardent Partners Ltd.

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INTERNAL KNOWLEDGE MGMT (VIA “WIKIS”)

Value in a B2B Context:

“If only HP knew what it knows, it would

make three times more profit

tomorrow.” ~ Lew Platt x-CEO, HP

Use Case #1: Requirements gathering

Use Case #2: Best practices in

category management

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Summary

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SUMMARY

During my presentation,

4.2 million tweets were sent

8.1 million Facebook users checked accounts

42 million YouTube videos were played

BUT ALSO

$17,123,287.50 transacted on Ariba

Commerce Network

$856 million B2B Transactions in the US

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SUMMARY

The potential impact is so dramatic that

P2P trading partners must take notice

Gaps must be closed (Perception, Trust &

Privacy, Technical )

Business Networks are the logical

locations for the convergence of Social

Networking and B2B Commerce

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B2B COMMERCE

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Andrew Bartolini Chief Research OfficerArdent Partners abartolini@ardentpartners.com

Copyright © 2012 - Ardent Partners Ltd.

Email me to connect

SOCIAL MEDIA

@andrewbartolini

@ardentpartners

THANK YOU – Q&A

Discussion

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