One of the major announcement sets at the recently held joint SAPPHIRE NOW and SAP TechEd event in Madrid, Spain, November 13-16, 2012, was about SAP’s plans to infuse SAP innovations into the world’s most powerful business network, Ariba Network. Through the recent combination of SAP and Ariba, close to 1 million companies are now connected to the Ariba Network—more than any other trading network. The introduction of SAP innovations in social, mobile, and cloud and the in-memory technology of the SAP HANA platform should logically drive global business-to-business (B2B) collaboration and achieve even higher levels of efficiency in sales, procurement, invoice, and payment processes as well as insights through the business network.

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After a hiatus of several years, the stars and planets were again aligned for me to be able to attend the AribaLIVE conference in early April 2012. And boy, what a difference several years can make! The last time I attended, in the mid-2000s, Ariba was behind its worst times of the early 2000s and the dotcom ”boom and crash.” For those that are not sure what I am talking about, in the early 2000s, Ariba had quite over-invested in its resource-heavy and inflexible client-server supplier exchanges and was bleeding cash.

The turnaround started when the company decided to focus on spend management software and know-how (sourcing, contract management, spend analysis, invoice automation, etc.), rather than on merely providing the “plumbing” for procurement transactions between trading partners. While the financial performance and posture of Ariba were noticeably improved by the mid-2000s, the company was still criticized by some market observers as being too conservative and focusing on traditional solutions.

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