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Global business, economic and technical forces are colliding to impact all organizations and force them to reevaluate how they deliver goods and services to customers. You must reengineer processes to drive down costs while making them faster and more responsive. You also have to rethink your B2B integration strategies to be more innovative and competitive in the future. This presentation provides insights into the current state of EDI and B2B integration through a glimpse into IBM's recent global research study, which reveals where we see the greatest opportunity for the future.
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© 2013 IBM Corporation
Developing a B2B Integration Strategy for the Future
Matt Bucey - Global Marketing Lead IBM B2B Cloud Services
© 2013 IBM Corporation
Agenda
The Global “State of” EDI & B2B Integration
Global Trends – IBM’s perspective
Business & operations challenges
The future of Global B2B
Case study examples
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© 2013 IBM Corporation © 2012 IBM Corporation
The global state of EDI & B2B Integration
© 2013 IBM Corporation
Global state of B2B Integration…
76%
24%
Not very effective
Very effective
76% do not believe they collaborate with their
business community very effectively
30%
69%
1%
End-to-end integration with everyone we need to
Integration is still a work in progress and weneed to improve thisIntegration has never been a major need for myorganization
Only 30% believe they have full end-to-end
integration with everyone they need
1%
2% 9%
37% 50%
1 - Not at all critical 2 3 4 5 - Extremely critical
87% believe their business community is very to extremely critical to their
success
Source: Synchronize the Value Chain, A Vanson Bourne survey commissioned by IBM , May 2012 4
© 2013 IBM Corporation
If not B2B Integration, then what?...Heavy reliance on outdated processes
Source: 2013 Vanson Bourne B2B Integration and MFT Global Study for IBM
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© 2013 IBM Corporation
Global complexity driving greater B2B challenges
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Trading Partners
Protocols
Standards
Integration Technologies
Data formats
SLAs
Governance
Reliability
Visibility
Multi-Enterprise Organization’s
Application Platforms
11
5
10
574
Germany • 619 Partners • Heavier reliance
on industry XML & Financial standards
UK • Nearly 75% use
FTP for B2B traffic (accounting for almost 40% total volume)
France • Visibility into B2B
processes #1 challenge (vs. App integration – globally)
South Africa • Ahead in adoption
of B2B transport options:
• Webservices – 44% • Browser based – 64%
Source: 2013 Vanson Bourne B2B Integration and MFT Global Study for IBM
© 2013 IBM Corporation
Business B2B & EDI are not “strategic” to the organization
Multiple platforms/infrastructures
A dynamic, constantly changing trading partner
network
Integrating technically challenged trading
partners
New trading partners in emerging markets
Operations Expanding your trading partner network
Islands of process automation
Where’s my order?
Is my data secure?
I need to now!
These challenges ripple through the enterprise and impact customers
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© 2013 IBM Corporation
Pressures driving greater B2B collaboration
Aberdeen Group, Analyst Insight, sponsored by IBM, B2B Collaboration: No longer Optional, 2012 8
© 2013 IBM Corporation
The future is now for B2B integration
From To Driver
Automated or manual integration processes
Process-centric, reusable integration
Treating B2Bi infrastructure as a strategic asset to achieve operational excellence
Batch file delivery Real-time message and Web Services based data exchanges
Extending operational excellence to deliver Customer Excellence
Silo’d internal and external processes
Customer-centric design driven processing
Intelligent multi-enterprise orchestration to deliver and adapt to changing customer expectations
Scheduled downtime Always on trading partner communications
Geographically dispersed value chain communities
IDC White Paper, sponsored by IBM, The Future of Business-to-Business Integration, December 2012 9
Are you ready for the fundamental ?
© 2012 IBM Corporation © 2013 IBM Corporation
Example use case
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© 2013 IBM Corporation
The Challenge • Repair service cycles impeded by locating the right
part
• Needed a consistent process for parts availability regardless of contractor or supplier
The Need • Synchronization of the supplier portal with real-time
parts availability process
• Dynamic, real-time parts availability solution based on location, supplier quality, and part
The Benefit • Increased Customer Satisfaction through
enablement of 2/80/5 – Provide service within 2 days, first call complete goal of 80% and repair experience completed in 5 days
• Increased efficiency of repair contractors • Cost very low compared to the ‘build’ option
Consumer Appliance Manufacturer
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© 2013 IBM Corporation
Manufacturer
Warehouse
1
Field repair person identifies needed part(s)
2
Manufacturer Online Parts Marketplace
3
4
5
5
6
Requests Part on Manufacturer Parts Portal
Portal Sends WebService with Part Info
Cloud Process Evaluate Part info, Mfg Warehouses, and Preferred Suppliers to Determine Part Availability
Checks Inventory of preferred suppliers
Returns Supplier and
Parts Availability to
the Portal
Parts Supplier
1
Parts Supplier
(n)Manufacturer Warehouse
System
B2B Cloud
Services
Checks Inventory
from lo
cal warehouse 5
Manufacturer
Warehouse
1
Field repair person identifies needed part(s)
2
Manufacturer Online Parts Marketplace
Manufacturer Online Parts Marketplace
3
4
5
5
6
Requests Part on Manufacturer Parts Portal
Portal Sends WebService with Part Info
Cloud Process Evaluate Part info, Mfg Warehouses, and Preferred Suppliers to Determine Part Availability
Checks Inventory of preferred suppliers
Returns Supplier and
Parts Availability to
the Portal
Parts Supplier
1
Parts Supplier
1
Parts Supplier
(n)
Parts Supplier
(n)Manufacturer Warehouse
System
Manufacturer Warehouse
System
B2B Cloud
Services
B2B Cloud
Services
Checks Inventory
from lo
cal warehouse 5
Scenerio: Appliance owner calls for service; Servicer loads parts on truck based on
appliance owner’s diagnosis; Servicer arrives in home, diagnosis was improper; parts on truck
will not fix condition; fires up Parts Marketplace; locates and orders proper part; reschedules
repair before leaving home; arrives as promised with right part and fixes condition
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© 2013 IBM Corporation
Outcomes
Business – 2/80/5 – Improved consumer brand loyalty – Reduced “part in hand” from 10 to 4 days –Added benefits
• Parts Distributors purchasing department more effectively managing inventory • Direct to Servicer option available • Early Warning • Improvement in Service reschedule accuracy/timeliness • Customer Service Agents leverage PMP to locate parts and Servicers for consumers
Technical – Cooperative effort with Parts Distributors, Servicers and their enterprise– different
technologies and business management systems needing to interface and work together to bring the Parts Market Place concept to reality
– Launched in Fall 2010 – now over 500 Servicers and 25 Part Distributors – still growing
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© 2013 IBM Corporation
Your next steps to achieving global B2B integration and EDI
1. More thought leadership from IBM:
– B2B Integration: No longer optional
– EDI in China: Developing a strategy for B2B integration success
–New Infographic – B2B Automation- Your company may be further away than you think
– The Future of Business-to-Business Integration
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© 2012 IBM Corporation © 2013 IBM Corporation
Questions? Matt Bucey – [email protected] @B2BCloudGuy
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