Global Research Study: B2B Managed Services Business Value and Adoption Trends

Transcription

1 Global Research Study: B2B Managed Services Business Value and Adoption Trends Lead Researcher: Dr. Barchi (Becky) Gillai Stanford Global Supply Chain Management Forum April 30, 2013

2 Global Research Study: B2B Managed Services Business Value & Adoption Trends Today s Host Why did GXS sponsor this independent research study from the Stanford Global Supply Chain Management Forum? Companies are exploring B2B Managed Services for running their B2B programs/operations as an alternative to the traditional software model. 2007: Stanford conducted research about the ROI of B2B Managed Services and the results provided Rochelle Cohen Senior Marketing Manager GXS many valuable insights. 2012: Stanford conducted another review of the benefits of B2B Managed Services to provide you with benchmark data to help you make a more informed decision about your B2B strategy. May 2, 2013 Slide 2

3 Today s Presenter Barchi Gillai has 15 years of experience in the areas of supply chain management and operations management. Over the years, she successfully completed numerous research projects, many of them in collaboration with Fortune 500 companies and large international organizations. Dr. Gillai has authored several articles, book chapters, white papers, and teaching cases. Dr. Barchi Gillai Lead Researcher for Study: "B2B Managed Services: Business Value and Adoption Trends" She earned her Ph.D. in Management Science and Engineering, and her Master s degree in Industrial Engineering and Engineering Management, at Stanford University. She earned her B.Sc. in Industrial Engineering and Management at the Technion Israel Institute of Technology. Dr. Gillai can be reached at Barchi@stanford.edu

4 Background About Stanford Global Supply Chain Management Forum Housed within the Stanford Graduate School of Business, the Global Supply Chain Management Forum works in partnership with academic, corporate and nonprofit organizations to identify, research, develop and disseminate supply chain best practices within a dynamic, global business environment. Forum membership is open to industry leaders with a common interest in advancing the state-of-the-art in global supply chain management. To learn more about the Forum, please contact Shoshanah Cohen (cohen_shoshanah@gsb.stanford.edu). 4

5 Background About the B2B Research Study Examines the latest trends and business value associated with B2B integration programs and B2B managed services Results of the study are summarized in two separate reports: 1. B2B Managed Services: Business Value and Adoption Trends 2. B2B Integration: Business Value and Adoption Trends Conducted by the Stanford Global Supply Chain Management Forum with financial support provided by a gift to the university from GXS, Inc. 5

6 Definition B2B Managed Services B2B managed services provide technical B2B infrastructure, including the people and processes necessary to manage B2B operations and trading partner connections. 6

7 Today s Agenda B2B Managed Services: Business Value and Adoption Trends Study Methodology Profile of Participating Companies Characteristics of B2B Managed Services Programs Main Business Drivers Financial and Other Business Benefits Future Plans 7

8 Study Methodology Study results are based on a survey of current users of B2B integration technologies and B2B managed services Survey questionnaire designed to identify: Program characteristics and adoption trends Main business drivers Business value Future plans Survey completed by 92 people from 75 companies Participating companies vary in size, primary industry, geographic base All participants have integrated B2B e-commerce into their operations for more than a year Data analysis examined the impact of various characteristics on companies decisions and realized benefits 8

9 Profile of Participants Primary Industry: Primary Industry Segments with highest representation included manufacturers (51%), retailers (13%), and CPG (13%). 13% 9% 51% 13% 8% 5% CPG Financial services Logistics Manufacturing Retail Other Company Size: Annual Revenue Participants varied in size, with annual revenue ranging from under $100 million to over $5 billion. 47% 8% 12% < $100M $100M - $1B Majority of participants (80%) were large organizations with more than $1 billion in annual revenue. 33% $1B - $5B > $5 B 9

10 Percent of Participating Companies B2B Managed Services Program Adoption Rate: Years of Using B2B Managed Services Close to half of companies have been using B2B managed services for 5+ years. Most companies (58%) had more than 40% of their B2B integration program supported by B2B managed services provider. 36% 13% 25% 26% < 2 years 2-4 years 5-6 years > 6 years Geographic Reach: Companies managed services programs reach beyond companies geographic base. 100% 80% Geographic Locations of Managed Services Program 81% 73% of companies are based in North America, 24% in EMEA, 3% in ASPAC. 60% 40% 56% 35% 45% of companies had B2B managed services programs in more than a single region, 28% in all three regions. 20% 0% Americas EMEA ASPAC Geographic Region 10

11 B2B Managed Services Supports Integration with a Variety of Trading Partners Percent of Participating Companies B2B managed services are used most often for integration with customers. Majority of companies (70%) use B2B managed services for integration with more than a single type of business partner. 27% of companies use managed services for integration with 4+ types of business partners. 100% 80% 60% 40% 20% 0% Trading Partner Categories B2B Managed Services is Used For 87% 68% 49% Customers Vendors Logistics Companies Trading Partner Category 41% Financial Institutions 4% Insurers 11

12 Leading Business Drivers Customer Experience, Process Efficiency, IT Costs Business Driver B2B managed services is perceived as bringing a variety of business benefits. Business Driver Score Based on Frequency & Ranking Improve customer experience: most popular business driver among participants. Support global expansion and Reduce IT costs selected most frequently as #1 in importance. Customer Experience Process Efficiency IT Costs Consolidate Programs Global Expansion Aging Platform C-Level Strategy Pending Upgrade Divestitude, Merger & Acquisition Total Score 12

13 B2B Managed Services Brings Value to Vast Majority of Participants 96% of participants increased the value of their B2B integration program. 32% Overall Value of B2B Managed Services 4% 47% Increased value, Decreased cost Increased value, Same cost For 47% of participants, the increased value was combined with a reduction in cost. 17% Increased value, Increased cost Decreased value, Decreased cost 13

14 B2B Managed Services Help Streamline Expenses, Improve Budget Planning 74% of companies found the Replacing Capital Expenditure with Monthly Fee is Valuable ability to replace capital expenditures with on-going 15% 10% 74% subscription fee of value. Strongly Agree / Agree Neutral Disagree / Strongly Disagree 63% of companies improved planning for B2B budget and resources. B2B MS Enabled Improved Planning for B2B Budget and Resources 29% 8% 63% Strongly Agree / Agree Neutral Disagree / Strongly Disagree 14

15 B2B Managed Services Help Reduce IT Costs 59% of companies were able to reduce costs of developing maps, B2B MS Enabled Reduction in B2B Integration Costs 15% onboarding partners, and providing technical support. 26% 59% Strongly Agree / Agree Neutral Disagree / Strongly Disagree 46% of companies were able to B2B MS Enabled Redeployment of IT Staff redeploy some IT staff to other projects or roles. 33% 21% 46% Strongly Agree / Agree Neutral Disagree / Strongly Disagree 15

16 B2B Managed Services Help Improve Customer Relationship B2B MS Helped Improve Efficiency of Onboarding New Customers B2B MS Helped to Better Meet & Respond to Changes in Customer Requirements 19% 13% 68% 21% 19% 60% Strongly Agree / Agree Neutral Disagree / Strongly Disagree 68% of companies improved efficiency of onboarding new customers. Strongly Agree / Agree Neutral Disagree / Strongly Disagree 60% of companies were able to better meet & respond to changes in customer requirements. Our Customers Find It Easier to Do Business With Us 6% 42% 52% Strongly Agree / Agree Neutral Disagree / Strongly Disagree 52% of companies believed customers were finding it easier to do business with the company. 16

17 B2B Managed Services Help Improve Local Support in Other Countries For 49% of companies, use of B2B managed services has improved the level of local support for business partners B2B MS Enabled Improved Local Support in Other Countries 39% 11% 49% located in other countries. Strongly Agree / Agree Neutral Disagree / Strongly Disagree 17

18 Parameters Impacting Realized Benefits Duration of program had the most impact on the likelihood of realizing potential benefits Financial Benefits: x Duration of program: Companies that have been using B2B managed services for 5+ years were more likely to realize most of the financial benefits. Size of program: Companies that had a higher portion of their B2B integration program supported by a managed services provider were more likely to realize some of the financial benefits. Company size: Smaller companies were more likely to reduce B2B integration cost. Trading Community Support: Duration of program: Companies that have been using B2B managed services for 5+ years were more likely to realize all of these benefits. Company size: Larger companies were more likely to realize many of these benefits. Geographic base: A higher portion of EMEA-based companies improved local support for partners in other countries. 18

19 Future Plans Expansion of B2B e-commerce Programs Planned Increase 96% of participants plan to expand their use of B2B e-commerce. Number of customers we trade with electronically Number of suppliers we trade with electronically Future Use of B2B E-Commerce 78% 83% 82% of participants plan such an expansion in more than a single category. Number of business processes we support None 4% 74% 0% 20% 40% 60% 80% 100% Percentage of Participants 57% of participants selected all three areas for future expansion of e-commerce. 19

20 Summary Research Study Key Take-Aways B2B managed services reached a certain level of maturity 49% of companies have been using managed services for 5+ years 45% of companies had managed services program in more than a single geographic region 58% of companies had more than 40% of their B2B integration program supported by a managed services provider 70% of companies use managed services for integration with more than a single type of business partner 20

21 Summary Research Study Key Take-Aways: B2B managed services perceived as bringing a variety of business benefits Top business drivers, each selected by +40% of participants: Improve customer experience Improve process efficiency Reduce IT costs 21

22 Summary Research Study Key Take-Aways: B2B managed services brought value to most participants 96% of participants increased the value of their B2B integration program Most companies valued ability to streamline expenses, improve budget planning Most companies were able to improve efficiency of onboarding new customers; respond in a timely manner to changes in customer requirements 96% of participants plan to increase number of customers and/or suppliers they trade with electronically, and/or number of business processes they support 22

23 Summary Research Study Key Take-Aways: It may take time to fully realize the benefits associated with B2B managed services Companies that have been using B2B managed services for 5 years or longer were more likely to realize 7 of 9 potential benefits. 23

24 THANK YOU! 24

25 More resources for you Webinar: What is Recording Slides (PDF) Transcript Education/Tools: B2B Managed Services Educational Website Vendor Selection Checklist thought_leadership/webinars Research Study: strategic_b2b_tools/ stanford_research_study Case Studies: customer_success/case_studies Thought Leadership: All About B2B May 2, 2013 Slide 25

26 Questions? May 2, 2013 Slide 26

27 Thank You for Your Participation! For More Information GXS Web Sites Phones US: EMEA: ASPAC: Japan: US: , option 3 EMEA: +44 (0) ASPAC: Japan: May 2, 2013 Slide 27