Developing a B2B Integration Strategy for the Future - Matt Bucey, IBM Industry Solutions
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Developing a B2B Integration Strategy for the Future - Matt Bucey, IBM Industry Solutions

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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 ...

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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    Developing a B2B Integration Strategy for the Future - Matt Bucey, IBM Industry Solutions Developing a B2B Integration Strategy for the Future - Matt Bucey, IBM Industry Solutions Presentation Transcript

    • © 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 2
    • © 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 we need to improve this Integration has never been a major need for my organization 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 20124
    • © 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 5
    • © 2013 IBM Corporation Global complexity driving greater B2B challenges 6 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 7
    • © 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 10
    • © 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 11
    • © 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 Web Service 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 local 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 Web Service 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 local 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 12
    • © 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 13
    • © 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 14
    • © 2012 IBM Corporation© 2013 IBM Corporation Questions? Matt Bucey – mbucey@us.ibm.com @B2BCloudGuy 15