Ariba signs Cisco Systems in major customer win; Cisco chooses Ariba to provide a worldwide solution for operating resource management.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 19, 1997--Ariba Technologies today announced that Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , the worldwide leader in networking for the Internet, will utilize its comprehensive enterprise applications to streamline global procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. within its Intranet and over the Internet. Cisco has selected Ariba's solution to help meet the needs of company's growth. Ariba's applications address the emerging market of Operating Resource Management (ORM ORM - Object Role Modeling ). Through the technologies of Internet-based electronic commerce, Operating Resource Management automates the acquisition of operating resources (the goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. required to operate companies). "Within our Global Networked Business model, Cisco is applying advanced technology to a variety of critical business processes," said Peter Solvik, chief information officer of Cisco. "Electronic Catalogs and Requisition A written demand; a formal request or requirement. The formal demand by one government upon another, or by the governor of one state upon the governor of another state, of the surrender of a fugitive from justice. The taking or seizure of property by government. approval and processing in Purchasing are a natural application for the intranet because this type of application needs to be accessed by everyone in the company. We are excited to work with Ariba as one of their earliest customers and adopt what we feel will be one of the leading solutions in this marketplace." Cisco's goal with Intranet ordering is to improve end user and supplier satisfaction while increasing operational efficiency. "The Ariba solution is a solid 'vision match' to what Cisco requires in a procurement automation solution," said Michele Sordal, manager of Corporate Supply at Cisco. "We are a rapidly growing company and demand a scalable system that can grow with us." In conjunction with Cisco's overall re-engineering efforts, the corporation established four requirements for an operating resource management system: cost reduction, cycle time reduction, end-user satisfaction improvement and control improvement. Cisco conducted an extensive review of the industry and selected Ariba to fulfill these needs. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Carolyn DePalmo, Procurement Automation Program manager at Cisco, "Ariba's elegant solution provides one universal interface for all purchasing needs; no other vendor could deliver the same functionality and ease-of-use." The Ariba solution will establish Cisco as a leader in Operating Resource Management and allow the procurement department to focus more on company-wide, strategic contracts with suppliers. Phase One of Cisco's roll-out is planned for June/July of 1997. Deployment to 8,000 desktops in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. scheduled to begin later in the year. "Ariba was founded to address the emerging Operating Resource Management market," said Keith Krach, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ariba. "Silicon Valley companies like Cisco are on the cutting edge of this new cost savings opportunity, and we're proud to provide Cisco with a complete solution to take their corporate procurement practices into the 21st century." Ariba's solution establishes three industry firsts: the first solution focused exclusively on the Operating Resource Management market, the first enterprise application built entirely in Java, and the first corporate system solely focused on the buy-side of electronic commerce. Operating Resource Management Operating Resource Management is a new market category defined as the strategic purchase of operations resources (industrial supplies, office supplies Office supplies is the generic term that refers to all supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who works with the collection, refinement, and output of information (colloquially referred to as "paper work"). , capital equipment, services and other non-production supplies) through the effective use of aggregate buying, volume discounts from vendors, lowered transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). through the use of electronic communications, and decision support techniques to identify vendor discount operations. Savings in purchasing can have a dramatic impact on the bottom line. According to Torrey Byles, Killen & Associates, who just completed a research report on Operating Resource Management, Cisco's decision to automate their operating resource management is right on the mark. "ORM is a huge cost savings opportunity for Fortune 100 companies and Cisco is clearly on the leading edge of this new technologic trend. Typically, a 5 percent savings in purchasing could result in a 28 percent increase in a company's profits." About Ariba Ariba is a pioneer in Operating Resource Management (ORM) and provides solutions which streamline and automate the enterprise purchasing process Purchasing Purchasing is the formal process of buying goods and services. The Purchasing Process can vary from one organization to another but there are some key elements that are common throughout The process usually starts with a 'Demand' or requirements of Fortune 1000 organizations. The company's solutions are distinguished by the intersection of three technology trends: the deployment of intranets and extranets, Java computing computing - computer , and object oriented See object technology and object-oriented programming. , three-tier client/server A three-way interaction in a client/server environment, in which the user interface is stored in the client, the bulk of the business application logic is stored in one or more servers, and the data are stored in a database server. See client/server. architecture. The Ariba solution is a complete application that focuses on complex internal business processes, paired with a strong ability to integrate with external systems. From its inception, Ariba's goal has been to build a world-class organization through a seasoned management team focused on the operating resource market opportunity, a customer-centric approach to product development, and premier venture funding. Ariba has focused extensively on customer need, conducting interviews with over 55 customers and gathering feedback from its 95-member Customer Advisory Council. The company was founded in September 1996 and is located in Mountain View. Ariba can be reached at 415/237-3800 or www.ariba.com . CONTACT: Ariba Technologies Paul Touw, 415/237-3800 ptouw@ariba.com or Blanc & Otus Lisa Copass, 415/512-0500 x235 copass@bando.com |
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