Toward Business Agility: The Essential Role of B2B Managed Services
Toward Business Agility The Essential Role of B2B Managed Services How to define B2B Managed Services Why are companies considering this approach How does this approach address business challenges How are companies benefiting Why should organisations consider it What to look for when selecting a provider Slide 2 2011 GXS, Inc.
B2B Managed Services What is it? Slide 3 2011 GXS, Inc.
Definition: b 2 b man aged ser vic es Management of your day-to-day B2B transaction activities by a trusted, experienced partner Includes these components: B2B infrastructure management (hardware, software, operations) Mapping and data translation Protocol mediation Trading community implementation Transaction monitoring and reporting Transaction error resolution Customer/trading partner support Slide 4 2011 GXS, Inc.
In-House B2B Program Environment GXS Managed Services Environment Slide 5 2011 GXS, Inc.
B2B Managed Services A Better Approach for Better B2B Execution Slide 6 2011 GXS, Inc.
Large and Growing Market Adoption Benefits include an annual average return-on-investment of 250% Business partner satisfaction is increased with a 75% improvement in B2B capabilities New sales are accelerated by a 4-fold increase in customer implementation timeframes On average, customers reduce total costs of integration by 20-40% versus in-house operations Total B2B Market Size $4,000 3,000 2,000 1,000 0 $2,771 $2,786 $2,967 $3,896 $252 $273 $769 $720 $301 $724 $704 $848 $1,047 9.0% 2.1% 20.8% $390 $854 $1,807 $1,047 $945 $895 $846 (4.2%) 2008 2009 2010E 2013E B2B Outsourcing B2B Middleware Software 3 yr CAGR Other B2B Software IaaS (VAN) Source: Gartner, Market Trends: Multienterprise/B2B Infrastructure Market, Worldwide, 2009-2014, 14 July 2010 Sources: 1. B2B Outsourcing Value Study conducted by Stanford University Global Supply Chain Management Forum 2. Total Cost of Ownership Study and Financial Model conducted by Hobson & Company 3. ERP Projects Create Significant Opportunities by AMR Research Slide 7 2011 GXS, Inc.
B2B Managed Services Why are companies like mine considering this approach? Slide 8 2011 GXS, Inc.
B2B e-commerce is Costly, Complex, Continuous Costly Complex Continuous Perpetual Maintenance Fees Rapidly Growing Storage Footprint Labour-Intensive Increasingly Customised Enterprise Integration Very Large File Transfer EU Invoicing Regulations Multilingual Support ERP Upgrades Dynamic Trading Partner Community Post M&A Consolidation New B2B Standards Slide 9 2011 GXS, Inc.
Challenges Multiply in an Increasing Global Reality Regions Supported Trading Partners Project Requests Companies like yours are expected to achieve more and more each year, even though their budgets remain the same or become smaller. Slide 10 2011 GXS, Inc.
Key Business Challenges Addressing B2B Challenges in a Dynamic World ERP Projects Customer Integration Centralisation/Consolidation New Markets/Channels Modernisation Cost Reduction Workforce Optimisation A Knowledge is Power Primer Slide 11 2011 GXS, Inc.
B2B Managed Services So how does this approach address these challenges and provide value to my organisation? Slide 12 2011 GXS, Inc.
ERP Projects How to Maximise Your Investments in ERP Business Impact: Any change to ERP data structure causes costly/time-intensive to upgrade maps ERP project delays due to complexities Data error rates impact bottom line A Knowledge is Power Primer B2B Managed Services: Shift B2B operations to third party to focus limited internal resources on ERP Robust testing and implementation processes ERP firewall to ensure data quality & compliance Slide 13 2011 GXS, Inc.
Customer Integration Challenges How to Become Easier to Do Business with Business Impact: Inability to meet customer integration requirements Poor customer satisfaction Delayed revenue Long on-boarding cycle for partners A Knowledge is Power Primer B2B Managed Services: Support for a wide variety of customer integration options Quickly on-board new partners any size, any location, any technical capability Access global network of trading partners Slide 14 2011 GXS, Inc.
Centralisation/Consolidation How to Gain Control and Visibility Across Fragmented Operations Business Impact: Limited visibility, higher costs Fragmented B2B networks and infrastructure costly and inefficient Decentralised business decisions A Knowledge is Power Primer B2B Managed Services: Cost avoidance One connection to entire trading community Eliminate overlapping systems Monitoring/visibility advantages Consistent services across regions and business units Slide 15 2011 GXS, Inc.
New Markets/Channels How to Rapidly Expand into New Markets and New Channels Business Impact: Lack of resources and/or expertise in new market or channel Expansion failures Missed sales/revenue opportunities B2B Managed Services: Instant global footprint of skills, resources, and knowledge Established global trading network Cross cultural competencies Multi- language support A Knowledge is Power Primer Slide 16 2011 GXS, Inc.
Modernisation How to Modernise without Increasing Costs or Risk Business Impact: Inability to meet trading partner requirements and business objectives Higher costs to support Unable to scale growth B2B Managed Services: Meet trading partner requirements with lower capital expenditures Future cost avoidance Enable successful growth objectives Immediate access to latest technologies A Knowledge is Power Primer Slide 17 2011 GXS, Inc.
Cost Reductions How to Do More with Less Business Impact: On-going pressures to reduce costs Maintaining up-to-date infrastructure Limited budget for new capabilities A Knowledge is Power Primer B2B Managed Services: Control on-going investments Connect with diverse partners regardless of size, location, technical capabilities Access to skills you need, when you need Slide 18 2011 GXS, Inc.
Workforce Optimisation Can Your IT Resources Keep Up with Continuous B2B Change and Advances? Business Impact: Critical B2B project delays e.g., ERP Integration Poor customer satisfaction, delayed IT projects Inability to meet on-boarding requirements Skills shortage, high costs to train/retrain A Knowledge is Power Primer B2B Managed Services: Refocus valuable IT resources Access skills you need, when you need Gain B2B specialists/expertise on your team Improve productivity/meet deadlines Lower operating costs Slide 19 2011 GXS, Inc.
B2B Managed Services How are companies benefiting, and why should my organisation be considering it? Slide 20 2011 GXS, Inc.
Leading Consumer Goods Company Customer Case Study GXS Managed Services Challenges: Current Global Platform Represents only 25% of EDI Deployed in 35 markets 700 trading partners and 300 maps Multiple local VAN providers Connectivity to SAP ERP Solution: Consolidated fragmented EDI solutions across 100 markets into a single global solution Integration with 4 major SAP ERP instances deployed regionally Enable localised support for country specific requirements (e.g., e- invoicing) Deploy SAP Global Trade Services to connect to country customs authorities Connectivity services for partners not capable of using AS2 AS2 Direct Connection Other Retailers Direct Retailer Connections B2B Integration Internet Communications & Document Translation Internal Integration Plant-to-Plant and Plant-to-HQ Other Retailers Exchanges & Data Pools Internet Direct Connection Global Europe Americas Asia Pacific Slide 21 2011 GXS, Inc.
Multinational Building Materials Producer Customer Case Study GXS Managed Services Challenges: Legacy IBM AS400 B2B translator (out of support) 4 different VAN providers globally Existing B2B systems did not support customers demands Concerns over B2B impact on future growth plans Logistics Carriers Distributors Customers ORDERS, DELJIT, DELFOR, DESADV, INVOIC X.400, AS2, FTP, SFTP Solution: Scalable Environment Improved Efficiencies, Partner Relationships & Enabled Growth Direct integration to SAP for IDOC transactions Connection to 61 trading partners Localised support for country specific requirements Support for EDIFACT, Tradacoms, IDOC,and flat file formats over AS2, X.400, FTP, SFTP ERP Integration Map and Forms Dev Change Management Activity Monitoring Community On-boarding Technical Support Slide 22 2011 GXS, Inc.
B2B Managed Services What should I be looking for when selecting a B2B Managed Services provider? Slide 23 2011 GXS, Inc.
Selecting a B2B Managed Services Provider Experience Time-tested, most customers, brand-name references, migration best practices Global Reach KNOWLEDGE Operations span the globe, 24x7 worldwide multilanguage in 15 languages, global data centres, Global Centres of Excellence Leadership and Innovation Analyst-validate, top segment share, financial stability PROCESSES Quality & Reliability Quarterly SAS 70 Type II certification, PCI, ITIL, designated Project Managers, proactive BAM, HA/DR investment Community Collaboration Proven on-boarding methodology, pre-connected trading partners, cross industry Proven Scale Worldwide customers, processes billions of transactions annually, thousands of maps in production, experienced mappers TECHNOLOGY High Availability Architecture Cloud-based integration platform, dual-legged environment, limited maintenance windows, disaster recovery multi-data centre fail-over Flexibility and Speed Multiple ways to connect, including: web forms, Excel, ERP adapters, interconnects, direct connects PEOPLE ERP Integration Competence SAP-certified, Microsoft-recommended, Oracle experience, 30+ hosted adapters, any-to-any data mapping Managed Services Focus % of revenues, services investments, commitment to success Slide 24 2011 GXS, Inc.
B2B Managed Services Checklist When it comes to technology, a provider should have? When it comes to experience, a provider should have? Finally, a vendor should have the right people and proven processes. Look for a provider with? Download checklist at www.b2boutsourcing.co.uk Slide 25 2011 GXS, Inc.
Further Information Additional Resources www.b2boutsourcing.co.uk blogs.gxs.com Slide 26 2011 GXS, Inc.
Thank You for Your Participation! For More Information Slide 27 2011 GXS, Inc.