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Agenda
• How B2B integration delivers ROI
• The role of web services
• What to look for in a B2B solution
• Case study interview
• Inovis B2Bi solutions
Challenges of Measuring ROI
• Base-line metrics
• Clearly defined business objectives
• Confusion over what to measure
• Benefits may be difficult to quantify
Measuring ROI
• Reducing costs
• Increasing revenue
Reducing Costs
• Transaction costs
• Personnel costs
• IT costs
• Business costs
0
20
40
60
80
100
120
140
160
180
Manual w/Errors EDI
Reducing Transaction Costs
• Industry estimates to process a PO:
• A customer selling futures on natural gas reported an error could cost millions
Reducing Personnel Costs
• Reduce head count (or avoid increasing)– through automation– customer self-service systems
• Reduce training costs– making information readily available– making systems easier to use
• Reduce skill sets required, lower salaries
Reducing IT Costs
• Reduce error rates and the cost of fixing errors
• Reduce re-keying costs
• Reduce cost of hand coding interfaces
• Reduce system support costs through integration
Reducing Business Costs
• Reduce the cost of implementing change
• Reduce business costs through process improvement
• Reduce inventory costs
• Reduce cost of processing orders and returns
• Reduce brick and mortar costs through new on-line channels
Increasing Revenue
• Increase market share– Retain existing customers
– Increase revenue from existing customers
– Attract new customers through new on-line channels
• Create new market opportunities– Bring products to market more quickly
– Integration enables new offerings while leveraging existing investments
B2B Technology
CDMA, TDMA,GSM
Business
Process
Management
ERP System Legacy SystemDatabase
Adapter/JCA Custom Adapter/Screen Scraping/
ODBC/JDBC
ApplicationServer
Firew all
W ebServer
B2BServer
Firew all
HTTP HTTP/VAN
W ebServices
M obileClients
Partners/Suppliers
Custom ers
W ebServices
SOAP
W eb ServicesW eb Services
IntegrationServer
B2B Checklist
Partner agreement management Collaboration support Real-time visibility into B2B process B2B transaction support
• Transaction audit trail Support for multiple input formats
• XML• EDI
Support for multiple back-end interfaces B2B security
• Non-repudiation • Multiple firewall friendly
• e-Mail• Browser
• HTTP• MQSeries
• TCP/IP• VAN
Integration Checklist
Data transformation
Messaging
Data integration
Wide connectivity to back end systems
Business process management
Business activity monitoring
Support for web services
Security
Interview
Rod Franklin, VP Solutions Engineering, USCO Logistics
