Maximising Your Return on ERP & B2B Integration. Mark Morley, Industry Marketing Director

Transcription

1 Maximising Your Return on ERP & B2B Integration Mark Morley, Industry Marketing Director

2 Today s Agenda Introduction AMR Research ERP Study How Cloud & B2B Outsourcing help ERP/B2B Integration Projects Introduction to cloud based infrastructures B2B Outsourcing, a GXS perspective Implementing an ERP Firewall Real World Case Studies Questions Slide GXS, Inc.

3 Introduction Managing the integration of ERP and B2B systems is complex ERP and B2B projects are implemented across internal and external users Integrated ERP and B2B systems introduce significant operational efficiencies ERP B2B integration provides improved visibility into cross enterprise business processes Slide GXS, Inc.

4 ERP Systems Need to Support Global Operations Engineering R&D Sales Regional Marketing & Finance Regional Marketing & Finance Sales Engineering R&D Manufacturing Manufacturing Global HQ Manufacturing Engineering R&D Back Office Manufacturing Sales Back Office Sales Companies must manage a global network of manufacturing, sales, marketing, engineering and finance centres Slide GXS, Inc.

5 AMR Research ERP Study Slide GXS, Inc.

6 Third Party Research Institutions Validate the Value of B2B Outsourcing Slide GXS, Inc.

7 The Need for ERP to B2B Integration There are a number of key drivers for integrating ERP and B2B systems Significant amounts of ERP data is sourced from outside a company Poor data quality can compromise the value on an ERP implementation Poor B2B integration limits visibility into key business processes High availability of external B2B communications is critical Slide GXS, Inc.

8 Key Findings 48 percent of respondents said they had lost B2B connectivity 34 percent of respondents said B2B integration staff were supporting ERP related projects 34 percent of the data feeding ERP systems is generated externally 29 percent of respondents said that they had to prematurely terminate B2B testing programs relating to external trading partners 79 percent of respondents have exceptions or problems on more than one percent of inbound B2B transactions 80 percent of respondents plan to move to highly consolidated ERP environments Slide GXS, Inc.

9 Companies Undertake Many Different Types of ERP Related Projects New Installations Consolidations Retire Legacy Mainframes Merger & Acquisitions Rapid Company Growth Shared Services for Back Office Upgrades Vendor End of Life Support Expanded Feature Set Extensions Supply Chain Planning Treasury or Bank Relationship Management Slide GXS, Inc.

10 ERP Deployment Q. Which of the following best describes your current ERP deployment? Q. Which of the following best describes what your ERP deployment will look like in 3 years? Today In 3 Years 2 to 4 regional systems 44% 28% Single global instance 24% 38% Multiple instances across business units and subsidiaries 22% 20% One global instance per line of business 10% N =121 Respondents 14% Slide GXS, Inc.

11 Percent of B2B Staff Supporting ERP Related Projects Q. On average, what percentage of your B2B integration staff is supporting initiatives or projects related to ERP? 1% to 9% 3% 10% to 20% 15% 21% to 30% 30% 31% to 40% 19% 41% to 50% 15% Average % of B2B integration staff supporting ERP projects: Greater than 50% 19% 34% N =121 Respondents Slide GXS, Inc.

12 Externally Sourced ERP Data ERP uses information from various external sources - eg customers, logistics providers, financial service institutions Information derived from different global standards is difficult to manage Integrating trading partners to remote offices & plants is complex Slide GXS, Inc.

13 ERP Data Originates Outside the Enterprise But is External Data High Quality & Conforming to Corporate Standards? Sales Manufacturing Supply Chain Financials Service Forecast Point of Sale Sales Order Inbound Materials Inventory Work In Progress Shipment Status Proof of Delivery Product Catalogs Bank Statements Remittance Advice Trade Confirmations Repair Order Work Order Status Warranty Claim Distributors Direct Suppliers Ocean Carriers Commercial Insurers Customers Contract Manufacturers Freight Forwarders Financial Institutions 3 rd Party Logistics Slide GXS, Inc.

14 Data Feeding ERP Systems Q. What percent of the data feeding your ERP system is generated internally vs. externally? Q. What are your plans for technologies to support workforce management and procedures in the next 2 years? Data feeding ERP systems* External data feeding ERP system Generated internally 66% Supplier/ contract manufacturers 31% 3PLs 17% Generated externally 34% * No statistical differences by segment Customers/ distributors 43% Other 9% N =121 Respondents Slide GXS, Inc.

15 Data Quality Compromises ERP Value Externally sourced data is rarely checked before it enters ERP s Once the information is in an ERP, quickly spreads across the enterprise and beyond Inaccurate data affects downstream business processes Inaccurate data leads to incorrect electronic documents Slide GXS, Inc.

16 External Transactions Requiring Exception Handling or Rework Q. What percentage of the transactions originating from external trading partners which are processed directly into your ERP system require exception handling or error processing? Less than 1% 21% Extensive Rework 1-2% 33% 79% of respondents said that more than 1% of transactions needs reworking 3-4% 26% If a company processes 1 Million transactions per year this represents 10,000 transactions that will need reworking More than 5% 20% N =121 Respondents Slide GXS, Inc.

17 Policy Changes with Trading Partners Resulting From Changes to ERP System Q. As a result of changes to your ERP system, which of the following changes is your company making to policies with trading partners? Enforcing higher levels of data quality from trading partners 69% Implementing new transaction types with trading partners 47% Measuring new KPIs and issuing penalties to supplies for non-compliance 38% No changes to scope of B2B are planned for current ERP projects 11% Other 1% N =121 Respondents Slide GXS, Inc.

18 High Availability in B2B is Critical Ensuring B2B information is available 24/7 is crucial to the ERP environment B2B platforms ensure that externally sourced information can be used by internal business applications Lack of B2B information leads to production line stoppages Business critical decisions need to be made in real-time Slide GXS, Inc.

19 Loss of B2B Connectivity Q. Has your company every experienced a loss of B2B connectivity that has impacted your manufacturing operations? Q. How important/effective is your company s contingency plan for mitigating risk of losing B2B connectivity to manufacturing operations? Loss of B2B connectivity Importance/Effectiveness of Contingency Plan Yes 48% Importance 73% No 52% Gap = 25%! Significant Differences 79% of Automotive companies have experienced loss of B2B connectivity Effectiveness N =121 Respondents 48% Slide GXS, Inc.

20 Policy for no Scheduled ERP Downtime Q. Does your company currently have a policy for no scheduled ERP downtime for the end of quarter sales periods? Industry Yes 74% 18% 23% 26% 38% No No 26% 82% 77% 74% 63% Yes Auto (n=28) CPG (n=32) High Tech (n=39) Food & Beverage (n=32) N =121 Respondents Slide GXS, Inc.

21 Programme Management Integrating ERP and B2B requires constant monitoring to ensure problems are resolved efficiently Changes made to an ERP system may need to be incorporated into the B2B platform as well, or vice versa Need to ensure that ERP/B2B integration platforms are tested and deployed correctly Slide GXS, Inc.

22 Testing Approach on ERP Projects with B2B Integration Q. During the course of your ERP projects that included significant B2B integration, which of the following best describes the testing approach performed with internal participants and external trading partners? Internal Participants External Trading Partners Basic testing of most obvious, common tasks 35% 36% Robust testing of common and obscure, less-used functions 48% 35% Testing efforts were terminated prematurely to meet externally imposed go-live deadlines 17% 29% N =121 Respondents Slide GXS, Inc.

23 Changes to B2B Integration Strategy as a Result of Changes to ERP System Q. As a result of changes to your ERP system, which of the following changes has your company also made to your B2B integration strategy? Consolidating multiple, disparate B2B gateways onto a common platform 59% Standardising B2B technology enterprise wide on a single vendor 35% Changing the primary vendor used for B2B integration 25% Oursourcing B2B integration to a third party organization 12% None 11% N =121 Respondents Significant Differences 29% of Automotive companies said outsourcing B2B integration to a 3 rd party Slide GXS, Inc.

24 Severity of Delays in ERP Projects Caused by B2B Integration Issues Q. Which of the following best describes the issues you may have encountered with B2B integration which caused a delay to ERP projects currently underway or previously performed? Major issues were encountered which caused significant delays 26% Companies with major issues/ significant delays (n=32) 34% Automotive 28% Food & Beverage 28% High Tech 9% CPG Minor issues were encountered which caused small delays 58% Minor issues were encountered, but caused no delays 12% No issues were encountered 3% Delays in both B2B planning and integration can potentially cost companies in excess of $45K a day or $1Million per month.. N =121 Respondents Slide GXS, Inc.

25 How Cloud & B2B Outsourcing Help ERP/B2B Integration Projects Slide GXS, Inc.

26 B2B is Moving to the Cloud... Business Applications Application Infrastructure Compute & Storage Slide GXS, Inc.

27 According to Gartner, a New Continent is Emerging... By 2015, cloud-based solutions will be growing at a faster rate than onpremises solutions. By 2015, most enterprises will have part of their runthe-business software functionally executing in the cloud, using PaaS. By 2015, most enterprises using PaaS services or technologies will have a hybrid environment in which internal and external services are combined. Source: Gartner, January 2011 Slide GXS, Inc.

28 How the Cloud Simplifies B2B Complexity Slide GXS, Inc.

29 The Cloud Provides IT with Rapid Access to Built-In Expertise and Capabilities Business Context Ability to Introspect and Breakdown Messages in to Structured Objects Pre-defined document standards Business user interfaces Process Orchestration Manages end-to-end information flow with conditions and visibility, and coordinates access to shared services Tailored Visibility Data Enrichment Compute services for transformation Operational Business Rules and Data Quality Extensive libraries Identity and Control Pre-wired integration pairs Global B2B semantics repository Slide GXS, Inc.

30 B2B Outsourcing Experience Areas of Expertise Infrastructure Operations Implementation Support Number One Transaction Outsourcing Vendor Over 500 customers utilising GXS B2B outsourcing services today Extensive Transformation Capabilities Capacity to develop 10,000 maps annually Over 30,000 maps and 200 document types currently in production Areas of Expertise: Programme management Global network infrastructure E-Commerce operations management 24x7 support, visibility and alerts Slide GXS, Inc.

31 B2B Outsourcing Environment Slide GXS, Inc.

32 B2B Helps to Establish an ERP Firewall Customers and Distributors Financial Institutions Split by Payment Types Aggregate Account Balances Link Invoice to Payment Confirm Required Fields Confirm Valid Data Confirm Valid Data Split Orders ERP Apps Conforms to Business Rules Translate Customer Data Confirm Required Fields Consolidate Invoices Check within Tolerances Units of Measure Out of Sequence Documents Transform Carrier Codes Logistics Providers Direct & Indirect Material Suppliers Slide GXS, Inc.

33 Data Quality & Compliance Visibility and Operational Intelligence to Ensure Data Quality Monitors B2B transactions for validation, exception management, analytics and reporting, and score carding. Real-time visibility Proactively track in-flight" transactions based on a configurable set of rules or criteria to resolve errors before impact to business Quarantine exceptions Reliable infrastructure permits or denies electronic data interchanges between an enterprise s applications and external business partners Community portal Configurable role-based access enables both internal and external users to view data and take action online Back-office integration GXS Trading Grid provides a consolidated view of transactional data from all back-office systems Slide GXS, Inc.

34 Data Quality & Compliance Protecting Mission Critical Transaction Data 1 2 IDENTIFY Rejectable Document REAL-TIME ERROR Hold in Exception Queue 4 FIX Correct then Retransmit 3 WARNING Pass through and Log Slide GXS, Inc.

35 SAP Integration Expertise Over 100 Managed Services customers with direct integration to SAP SAP Labs testing and extensive experience with SAP integration Financials Supply Chain Management Advanced Planning and Optimisation Direct connections to hundreds SAP production instances Example SAP IDOCs Supported Connectivity options - FTP over VPN,SAP ALE SHPMNT03 INVOIC01 PEXR2001 PEXR2002 FINSTA01 DELVRY01 ORDERS01 PROACT01 PRICAT01 TRXSTA01 IDOC status messaging provides immediate verification or error status Slide GXS, Inc.

36 Oracle Integration Expertise Example Oracle TIFs Supported POI POCI POAO INI SBNI ASNI ADVO PYO CATI Over 25 Managed Services customers with direct integration to Oracle ERP Extensive experience with Oracle e- Business Suite Financials Transportation Management Warehouse Experienced with integration to PeopleSoft, JD Edwards and Retek Best practices for change management after patches, testing lifecycles, internationalisation Experienced with Oracle e-commerce Gateway and Transaction Interface files Slide GXS, Inc.

37 Benefits of Using B2B Outsourcing for ERP B2B Integration Projects Ensures projects remain on time and under budget with scalable resourcing and ERP best practices Achieves faster ROI from new modules and transaction types with rapid on-boarding of trading partners Less risk of connectivity loss impacting manufacturing operations with high availability architecture Improves data quality for 1/3 of externally originated information via ERP firewall Slide GXS, Inc.

38 Provides a Highly Available Platform ERP systems need to be able to receive information from external trading partners on a 24/7 basis... High, 99.95% available, B2B infrastructure with at least two data centres providing built in redundancy, disaster recovery and fail-over capabilities Slide GXS, Inc.

39 Implementing Document Maps ERP/B2B integration projects require numerous document maps to be created and maintained on an ongoing basis... Extensive any-to-any mapping services and support for many different types of SAP IDOCs for example Slide GXS, Inc.

40 Trading Partner Connectivity ERP systems need to be connected to numerous trading partners using many different global connectivity standards... Mediate between any communications standard and provide direct connectivity via SAP ALE and SAP PI for example Slide GXS, Inc.

41 Managing Trading Partner Communities ERP/B2B integration projects require fast onboarding of trading partners, anywhere in the world... Comprehensive community on-boarding service to allow trading partners of any size or technical capability to connect to a B2B Platform Slide GXS, Inc.

42 Proactively Monitoring Data Quality All external data needs to be checked for accuracy and conformance before entering an ERP system... Proactive monitoring of all transactions so that if a problem is detected it can be resolved before the customer or supplier is impacted Slide GXS, Inc.

43 Programme Management The complex nature of ERP/B2B integration projects requires skilled resources to keep these projects on schedule... Dedicated programme managers to monitor the progress of ERP/B2B projects to address integration issues as they arise Slide GXS, Inc.

44 Provide Global Support Today s ERP environments cover multiple plants located in many different regions of the world... 24/7 multi-lingual support to address problems as quickly as possible, anywhere in the world Slide GXS, Inc.

45 Real World Case Studies Slide GXS, Inc.

46 Automotive Supplier Customer Case Study Company Overview Business Issues Difficult economic environment, strong competitive pressures so needed to reduce operational costs globally Needed to fully integrate B2B platform to a new e-payments solution and ERP system being implemented across their global manufacturing plants Tier 1 Automotive supplier, one of the largest in the industry, supplying all major OEMs, with 3000 trading partners around the world After being divested they had to establish their own B2B environment as soon as possible Solution Deployed GXS Managed Services, including 600 maps and connectivity to 3000 trading partners Full integration with SAP to allow publication of IDOCs Programme Managers to co-ordinate 150 change requests per quarter Flexible B2B platform to allow for growth of 30% year on year Slide GXS, Inc.

47 Computer Server OEM Customer Case Study Company Overview Business Issues Needed to consolidate all B2B traffic across multiple VAN providers on to one global B2B platform Wanted to make the company easier to do business with their many high profile customers & distributors Required full integration to their Oracle ERP system One of the world s leading providers of computer servers and storage devices Supply computer equipment to some of the world s largest data centres. A leading advocate and developer of open source based software solutions Solution Deployed Consolidation of multiple VAN s onto GXS Trading Grid, highly available integration platform B2B integration to their upgraded Oracle 11i ERP Provision of tailored maps to communicate between proprietary UBL formats to EDI and XML document formats Customised business logic to support business activities with Japanese customers Slide GXS, Inc.

48 Clothing Manufacturer Customer Case Study Company Overview Business Issues Limited resources to implement a new global SAP environment while managing their existing B2B platform Working with a diverse range of leading global retailers so wanted to improve the integration and efficiency of their global supply chain One of the world s leading apparel manufacturers. They design, source and manufacture a range of leading clothing brands Company consists of six major divisions with products distributed and sold via a network of over 200 leading retailers around the world Solution Deployed Managed the B2B integration with SAP ERP across six units Created 280 maps and converted numerous EDI documents into SAP IDOC format Implemented AS2 connectivity with major customers and managed the migration of EDI transactions from incumbent VAN provider Slide GXS, Inc.

49 For Further Information Slide GXS, Inc.

50 Questions? Mark Morley Industry Marketing Director Phone: +44 (0) Slide GXS, Inc.

51 Thank You for Your Participation! For More Information Contact GXS Web: Phone: +44 (0) Slide GXS, Inc.