OT - Getting the Most From Your B2B Network - SS14

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This presentation was the keynote delivered at an EDIFICE plenary in Brussels in May 2014. EDIFICE is a European based industry association driving B2B standards across the high tech industry. The …

This presentation was the keynote delivered at an EDIFICE plenary in Brussels in May 2014. EDIFICE is a European based industry association driving B2B standards across the high tech industry. The presentation discusses how once connected to a global B2B network such as OpenText Trading Grid, how a company can potentially utilise the information flowing across the extended enterprise and hence obtain greater value from a B2B platform, rather than just exchanging transaction based B2B messages. GXS has been a member of EDIFICE for more than 25 years however this was the first time that the attendees had heard of OpenText, so the first few slides provide a high level introduction to the company - Updated May 2014

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  • SPEAKER NOTES
    The initial wave of IT innovations focused on structured data leading to the development of back office services and systems.

    ERP gave us a great ability to use structured information, and enterprises invested.

    Now the vast majority of enterprise information is unstructured – documents, technical drawings, video, social and more. The volume and variety of this info is growing at a staggering rate. Fortunately, our ability to extract value from this information is now rising too, and enterprise IT needs to shift its investment accordingly.
  • It’s the year 2014 and we live in the time of an unprecedented technologic disruption. While the year 2020 is still over five years out, it is close enough for us to get the idea about the magnitude of changes through which will go our society, our personal lives, and our business environment by the time the year 2020 arrives.

    Let’s take a look at those changes and their impact!


  • SPEAKER NOTES
    We are entering the digital age and information is becoming the currency of the digital economy. No longer it is the size, scale, access to resources or geographic presence that drive the competitive advantage of an enterprise. It is the degree to which it can take advantage of information to innovate and grow.
  • SPEAKER NOTES
    We are living in a time of massive disruption where information and the way we use it is changing the rules of business.
    Information drives innovation and growth. The recent innovation in technologies ranging from mobile devices, analytics, and social media, to cloud computing and the Internet of Things are breeding innovations that are challenging the established rules of business.
  • The goal for every organization is to transform itself for the age of digital economy – to become a digital enterprise. In a digital enterprise, the use of information transforms every corporate function and impacts all key stakeholder:
    Employees
    Customers
    Suppliers
  • SPEAKER NOTES
    The way you interact with customers has started changing already. Whether you are selling to consumers or to businesses, your customers are making buying decisions before they ever engage with your sales force. Customers are conducting more and more purchases online across more and more sectors. By the year 2020, we will be buying online even goods that are today considered impractical to sell online such as perishables, cars, and real estate. Marketing will increasingly focus on personalized, relevant, and engaging delivery of message – because everything else will be either noise or illegal.
  • SPEAKER NOTES
  • As with the automotive sector, GXS has very good coverage in the high tech industry, partly due to the fact that we have been in business and supporting this industry for more than forty years. We provide B2B services to companies across the high tech value chain from contract manufacturers through to enterprise server companies and semi-conductor manufacturers. Once again many of companies will be using GXS for communications related B2B services and there is a great upsell opportunity to Managed Services. The Far East has been the traditional manufacturing hub for this particular industry but there are also key manufacturing hubs in Eastern Europe and South America, particularly in Brazil.

    As with automotive, GXS participates in a number of industry associations. The most active that we are currently participating in is EDIFICE in Europe. This group has been around for more than twenty years and helps to define B2B standards for the high tech industry. They have recently merged with their sister organisation in ASPAC called AsiaB2B and as of 2013 they have established a new EDIFICE group in North America. So EDIFICE has become a truly global industry association and GXS will continue to participate in this particular group.

    The high tech industry folder on Sharepoint is shown at the bottom of this slide.

  • Manufacturing related supply chains have been impacted by many external forces over the years, from the global recession, to human rights issues and strikes in China, from natural disasters to the so called omni-channel effect that is changing consumer buying patterns. Manufacturers have had to build increased flexibility and agility into their supply chains so that they can address these and any future business challenges.
  • I will go through some automotive case studies in a moment but I wanted to try and illustrate on one slide the importance of GXS in supporting the global automotive industry. What I will show you is what I describe as the automotive B2B – ecosystem, which looks at how each company is related to each other and more importantly the type of GXS solutions they are using.

    I originally created this slide for the GEFCO Managed Services project which is currently underway in Europe.

    Explain slide

    So this slide quite nicely summarises our focus in the automotive sector. Primarily at the car manufacturer or Tier 1, Tier 2 supplier level. In fact late last year we closed a deal with Johnson Controls in North America for $8M, they are a key tier 1 supplier to the automotive industry. Given that there are nearly ten to twenty times as many tier 1 suppliers in the world as car manufacturers these types of companies provide a good opportunity for us, especially as many of these companies, for example Bosch and Continental are already connected to GXS using us for messaging services only.
  • Trading Partner Enablement Options where the size of the trading partner matches the complexity of the Enabler.
  • Trading Partner Enablement Options where the size of the trading partner matches the complexity of the Enabler.
  • When entering a new market, especially one of the emerging countries, there are a number of B2B specific challenges that need to be addressed:

    There will typically be very limited B2B knowledge and skills available within an emerging market, GXS has dedicated B2B resources in all the key emerging markets, including on the ground support to help with both implementation and on-going support

    Quite often trading partners in the emerging markets will be using manual, paper based processes and therefore to encourage participation in a supply chain it is crucial to offer B2B tools that even the smallest company can use via a simple dial up connection. GXS offers a number of B2B tools, depending on the technical capabilities of the trading partner concerned, from web form solutions through to Microsoft based tools. Ensuring that you can achieve 100% participation in your supply chain activities will either make or break your international expansion plans.

    When entering a new market you may be forced to embrace local standards, for example the new e-invoicing standards in Brazil or supporting the many XML based standards that have emerged in China. GXS offers any to any mapping capabilities and we can therefore remove the complexity of supporting numerous document types in different countries around the world.

    Finally, one last challenge is trying to get problems resolved quickly as they arise, whether during the implementation phase of a new B2B platform or after the platform has gone live. GXS offers a 24/7 follow the sun multi-lingual support service, so no matter where you are looking to do business you can be assured that problems associated with your B2B platform are resolved as quickly as possible.



  • When entering a new market, especially one of the emerging countries, there are a number of B2B specific challenges that need to be addressed:

    There will typically be very limited B2B knowledge and skills available within an emerging market, GXS has dedicated B2B resources in all the key emerging markets, including on the ground support to help with both implementation and on-going support

    Quite often trading partners in the emerging markets will be using manual, paper based processes and therefore to encourage participation in a supply chain it is crucial to offer B2B tools that even the smallest company can use via a simple dial up connection. GXS offers a number of B2B tools, depending on the technical capabilities of the trading partner concerned, from web form solutions through to Microsoft based tools. Ensuring that you can achieve 100% participation in your supply chain activities will either make or break your international expansion plans.

    When entering a new market you may be forced to embrace local standards, for example the new e-invoicing standards in Brazil or supporting the many XML based standards that have emerged in China. GXS offers any to any mapping capabilities and we can therefore remove the complexity of supporting numerous document types in different countries around the world.

    Finally, one last challenge is trying to get problems resolved quickly as they arise, whether during the implementation phase of a new B2B platform or after the platform has gone live. GXS offers a 24/7 follow the sun multi-lingual support service, so no matter where you are looking to do business you can be assured that problems associated with your B2B platform are resolved as quickly as possible.



  • One of the main benefits of integrating an ERP and B2B system is that it is then possible to establish what can best be described as a firewall around a company’s ERP system.

    The aim of this is to protect the ERP system and ensure that incorrect data does not enter the ERP environment. Whether you are trying to protect your ERP system from information being sent in by customers, distributors, logistics providers, suppliers or financial institutions, integrating to a B2B system can provide a higher level of security around your ERP applications and downstream business processes.

    GXS Active Intelligence solution helps to protect your ERP related systems by ensuring that only clean and accurate information that obides by predefined business rules and checking procedures is allowed to enter your ERP environment.




  • One of the main benefits of integrating an ERP and B2B system is that it is then possible to establish what can best be described as a firewall around a company’s ERP system.

    The aim of this is to protect the ERP system and ensure that incorrect data does not enter the ERP environment. Whether you are trying to protect your ERP system from information being sent in by customers, distributors, logistics providers, suppliers or financial institutions, integrating to a B2B system can provide a higher level of security around your ERP applications and downstream business processes.

    GXS Active Intelligence solution helps to protect your ERP related systems by ensuring that only clean and accurate information that obides by predefined business rules and checking procedures is allowed to enter your ERP environment.




Transcript

  • 1. Getting the Most From Your B2B Network Mark Morley, Industry Marketing Director
  • 2. OpenText Confidential. ©2014 All Rights Reserved. 2 Agenda  Introduction to OpenText  2020 Agenda  OpenText IX  Today’s Supply Chains are Evolving  Getting More From Your B2B Platform
  • 3. is now
  • 4. OpenText Confidential. ©2014 All Rights Reserved. 4 The Early Days of OpenText 1984 1989 1991 1994
  • 5. NASDAQ: OTEX, TSX: OTC 20 years # of Innovation 8000 # of Employees OpenText Confidential. ©2014 All Rights Reserved. 5 # EIM 140 Offices around the world 16 # of Transactions $1.6 Billion Global Revenue 100k Customers 600k Trading Partners Billion
  • 6. Why Did OpenText Acquire GXS? OpenText Confidential. ©2014 All Rights Reserved. 6 6 INFORMATION EXCHANGE New services with market leading B2B Integration and Messaging Services INDUSTRIES Strong focus on Financial Services, Manufacturing, CPG and Retail CLOUD SERVICES Global, growing managed services and SaaS applications business CUSTOMER ADJACENCY Marquee install base with ability to cross sell adjacent products and services B2B TECHNOLOGY GXS Trading Grid® with 600,000 trading partners, 16b transaction / year MARKETS Stronger presence in US, Latin America, ASIA, Japan BUYERS Extend EIM buyers to include Procurement and Supply Chain, Accounting & Treasury SOFTWARE B2B Integration Gateways, and EDI/XML Translators, Applications
  • 7. Enterprise Information Management (EIM) B2B Integration B2B Managed Services OpenText Confidential. ©2014 All Rights Reserved. 7
  • 8. OpenText Confidential. ©2014 All Rights Reserved. 8 Growth Through Acquisition
  • 9. OpenText Confidential. ©2014 All Rights Reserved. 9 Then: ERP. Now: EIM ERP – Structured 80% of Enterprise Information is Unstructured Unstructured - EIM
  • 10. How will Information Technology Impact Your Company in the Year 2020? OpenText Confidential. ©2014 All Rights Reserved. 10
  • 11. OpenText Confidential. ©2014 All Rights Reserved. 11 Information will be the currency of the digital economy Enterprise Information
  • 12. SaaS Governance OpenText Confidential. ©2014 All Rights Reserved. 12 Disruptive Innovation  We are living in a time of massive disruption where information and the way we use it is changing the rules of business  Information is at the heart of the disruption Data Cloud Mobile Apps Security Social
  • 13. OpenText Confidential. ©2014 All Rights Reserved. 13 The Digital Enterprise By 2020, all major operating functions of the enterprise will be digital Enterprises will focus on three key stakeholders:  Customers  Employees  Suppliers
  • 14. Customers Employees Suppliers OpenText Confidential. ©2014 All Rights Reserved. 14 Key Players in Tomorrow’s Digital Enterprise  Experience will be critical throughout the entire customer lifecycle  Most buying decisions will be made before contacting vendor & purchases will be conducted online  Marketing will have to be relevant - utilize location, situation, and presence  By 2020, majority of the workforce will be digital natives  The workplaces of the future will be:  Social rather than hierarchical  Ideas are what’s valued  Flexible, mobile, global  Technology savvy  Digital enterprise will create a demand for a real-time value chain integrating with suppliers, agents, and business partners  Fast, agile, and accurate supply chain will become critical for improving the customer experience
  • 15. Digital Enterprise: Architecture App1 App2 App… IX EDI Content Archive OpenText Confidential. ©2014 All Rights Reserved. 15 EXPERIENCE Business Process Management Messaging Repository Digital Governance and Security Digital Marketing Digital Workplace Digital Supply Chain Developer Tools Data Analytics APPLICATIONS EIM PLATFORM InfoFusion appworks Client Web Mobile Unified Information Access SAP Microsoft Oracle Documentum FileNet
  • 16. OpenText IX
  • 17. Evolution of Information Exchange 1843 1960 2000 2010 Future OpenText Confidential. ©2014 All Rights Reserved. 17 Pre-Digital Communications Analog Communications Fax Machines Telex Courier Point to Point Electronic Communications Protocol-Based Communication EDII FTP via dial up Email Internet Based Communications Any to Any Communications and Document Mediation XML & SOAP Web Services Enterprise Information Exchange Integrated any-to-any Internet of Things Pervasive Connectivity Intelligent Devices
  • 18. OpenText Confidential. ©2014 All Rights Reserved. 18 Information Exchange
  • 19. Supporting Global High Tech Customers 60% 80% OpenText Confidential. ©2014 All Rights Reserved. 19 High Tech Companies in Fortune 500 100% Top 5 Enterprise Server Manufacturers 80% Top 5 Personal Computer Manufacturers 100% Top 5 Smart Phone Manufacturers Supporting Global Standards and Industry Associations Top 10 Contract Manufacturers Top 10 Semi- Conductor Manufacturers Statistics updated July 2014 to include customers of both OpenText™ & GXS™ 93%
  • 20. EIM Procurement Production PLM ERP OpenText Confidential. ©2014 All Rights Reserved. 20 How Does IX Support EIM? EDIFACT XML SWIFT OFTP2 IDOC Internal Enterprise Community AS3 ANSI B2B HULFT Contract Mfg. Distributors Customers 3PLs Banks Insurers AS2 FTP Suppliers HTTPS IDOCS External Trading Partner Community Design Marketing Sales Service HQ
  • 21. Today’s Supply Chains are Evolving
  • 22. Supply Chains are Having to Adapt to New Macro-Economic Conditions Global recession, wage strikes, natural disasters and changing consumer demand are leading to manufacturers having to restructure their global supply chains OpenText Confidential. ©2014 All Rights Reserved. 22
  • 23. Today’s Manufacturing Value Chain Distributed Operations in Multiple Countries OpenText Confidential. ©2014 All Rights Reserved. 23 Distribution Near-Shoring 2010 Onwards Global HQ China Globalisation 2014 Onwards Regional Marketing & Sales Manufacturing Sales Manufacturing Research & Design Manufacturing Shared Services Sales Distribution Sales Shared Services Sales ‘BRIC’ Markets Expansion 2000 Onwards (BRIC = Brazil, Russia, India, China) ‘MINT’ Markets Expansion 2014 Onwards (MINT = Mexico, Indonesia, Nigeria, Turkey)
  • 24. B2B Requirements Across Today’s Supply Chains are Complex AS2 OpenText Confidential. ©2014 All Rights Reserved. 24 ANX ENX SILS Just-in-Time Kanban Industry/Process Complexity Regional Complexity NA 10+2 Customs Mexico E-Invoicing EMEA E-Invoicing Technology & Standards Complexity SAP ERP Oracle ERP HTTPS X.25 Barcode Labelling Oracle TMS OFTP RosettaNet ANSI EDIFACT SWIFT EBICS ASNs ERS / Self-Billing VDA HULFT
  • 25. Evolution of the Business Network
  • 26. Evolution of Business Integration Enterprise Community Management Customer Data Integration Supply Chain Visibility Web-Based Portals Sense and Respond Mainframe ASP SaaS Cloud Computing OpenText Confidential. ©2014 All Rights Reserved. 26 Enterprise Application Integration Cross-Enterprise Integration 1995 Strategic/Competitive Customer Centric 2000 Organisation Critical Department Specific 2005 2010 2015 Unisys Integration Business Intelligence Secure Web Services RFID and EPC Sales Force Automation Enterprise Resource Planning Business Process Mgmt Business Activity Monitoring
  • 27. OpenText Confidential. ©2014 All Rights Reserved. 27 The Network Effect….. Consumer Networks Consumer Eco-Systems Business Networks
  • 28. Hardware Vendors Join the Network Effect OpenText Confidential. ©2014 All Rights Reserved. 28
  • 29. OpenText Confidential. ©2014 All Rights Reserved. 29 Facebook’s Social Graph
  • 30. JLR Kautex OpenText Confidential. ©2014 All Rights Reserved. 30 Trading Partner Network China JV PSA Hella Mitsubishi Motors GEFCO Autoliv Mitsubishi Electric Michelin Faurecia GM JCI Visteon BWI Delphi
  • 31. Getting More From Your B2B Platform
  • 32. Getting More From Your B2B Platform 1. Enabling 100% Trading Partner Connectivity 2. Simplify Expansion into New Markets 3. Overcoming Regional Complexity Issues 4. Improving Accuracy of Externally Sourced Information 5. Increasing Resilience to Supply Chain Disruptions 6. Adhering to Regulatory Compliance Initiatives 7. Conducting Transaction Based Trading Partner Analytics 8. Initiating Process Based Transaction Flows 9. Achieving Pervasive Visibility of all Transactions 10. Integrating to ‘Internet of Things’ Devices OpenText Confidential. ©2014 All Rights Reserved. 32
  • 33. 1. Enabling 100% Trading Partner Connectivity OpenText Confidential. ©2014 All Rights Reserved. 33
  • 34. 1. Enabling 100% Trading Partner Connectivity Size of Trading Partner Small Mid-Size Large SOHO Very Small Small National Global OpenText Confidential. ©2014 All Rights Reserved. 34 Fax Microsoft Office Web Forms Integration Broker Enterprise Resource Planning Desktop Translator Microsoft Dynamics Medium Complexity of B2B Enabler
  • 35. 2. Simplify Expansion into New Markets OpenText Confidential. ©2014 All Rights Reserved. 35
  • 36. Typical B2B Challenges How OpenText Addresses These OpenText Confidential. ©2014 All Rights Reserved. 36 B2B Knowledge/Skills Dedicated B2B Resources Automating Manual Processes Web Forms, Microsoft Excel Problem Resolution 24/7 Multilingual Support Local Standards Support Any to Any B2B Mediation 2. Simplify Expansion into New Markets
  • 37. 3. Overcoming Regional Complexity Issues – OpenText Confidential. ©2014 All Rights Reserved. 37 eg e-Invoicing
  • 38. 3. Overcoming Regional Complexity Issues – OpenText Confidential. ©2014 All Rights Reserved. 38 eg e-Invoicing Archiving and Audit  Secure electronic data warehouse for all invoice-related documents  Transaction audit trail  Management information for buyers and suppliers VAT Compliance  Invoice complies with country-specific tax authorities  Backed by team of analysts and accounting specialists Digital Signature and Security  Digital signature per country rules  Guarantees identity of sender  Signed digital image or data file  Legal VAT document
  • 39. 4. Improving Accuracy of Externally Sourced OpenText Confidential. ©2014 All Rights Reserved. 39 Information
  • 40. 4. Improving Accuracy of Externally Sourced Out of Sequence Documents OpenText Confidential. ©2014 All Rights Reserved. 40 Information Customers and Distributors Split Orders ERP Apps Consolidate Invoices Confirm Required Fields Translate Customer Data Confirm Valid Data Split by Payment Types Aggregate Account Balances Units of Measure Transform Carrier Codes Conforms to Business Rules Check within Tolerances Confirm Required Fields Confirm Valid Data Direct & Indirect Material Suppliers Logistics Providers Financial Institutions Link Invoice to Payment
  • 41. 5. Increasing Resilience to Supply Chain OpenText Confidential. ©2014 All Rights Reserved. 41 Disruptions
  • 42. 5. Increasing Resilience to Supply Chain Flexibility • Provide business continuity by ensuring data is accessible from • Allow critical business documents to be backed up and retrieved OpenText Confidential. ©2014 All Rights Reserved. 42 Disruptions Reduce Cloud B2B Disruptions Integration Through Provides Increased Communication Flexibility more than one location Visibility Visibility • Provide a real time view of global shipments through one common platform • Should disruption occur then alternative inventory locations can be identified quickly Communication • Provides a way to quickly determine post-disruption condition of TP community • Offers real time monitoring and follow up of supply chain related communications
  • 43. 6. Adhering to Regulatory Compliance Initiatives – eg Conflict Minerals OpenText Confidential. ©2014 All Rights Reserved. 43
  • 44. 6. Adhering to Regulatory Compliance Initiatives – eg Conflict Minerals OpenText Confidential. ©2014 All Rights Reserved. 44
  • 45. 7. Conducting Transaction Based Trading OpenText Confidential. ©2014 All Rights Reserved. 45 Partner Analytics
  • 46. 7. Conducting Transaction Based Trading KPIs Below Goal Delivery Punctuality OpenText Confidential. ©2014 All Rights Reserved. 46 Partner Analytics Overdue Shipments (%) Fill-Rates Below Goal Invoice Discrepancies
  • 47. 8. Initiating Process Based Transaction Flows OpenText Confidential. ©2014 All Rights Reserved. 47
  • 48. 8. Initiating Process Based Transaction Flows OpenText Confidential. ©2014 All Rights Reserved. 48 Consumer Goods Reverse Logistics Process Flow Goods Return Path Recover / Remarket / Recycle / Reuse Central Returns Centre Retail Store Consumer
  • 49. 9. Achieving Pervasive Visibility of all OpenText Confidential. ©2014 All Rights Reserved. 49 Transactions
  • 50. 9. Achieving Pervasive Visibility of all Swift Connection – real time monitoring of SWIFT transactions EDI Reference Guide – provides a self contained EDI reference guide OpenText Confidential. ©2014 All Rights Reserved. 50 Transactions ASN Tracking Tool – real time tracking of ASN documents My Community – mobile collaboration platform for TPs Green Calculator – real time calculation of paper based savings Packing Label Generator – creates shipping and packing labels B2B Network Monitor – checks status of B2B network and TPs Shipment Tracker – offers end to end visibility of shipments E-Invoicing - allows electronic invoices to be reviewed/updated A S N A S N Trading Grid Mobile
  • 51. 10.Integrating to ‘Internet of Things’ Devices OpenText Confidential. ©2014 All Rights Reserved. 51
  • 52. Thank You! Mark Morley Industry Marketing Director www.opentext.com twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext OpenText Confidential. ©2014 All Rights Reserved. 52 mark.morley@opentext.com gxsblogs.com/morleym www.twitter.com/markmorley www.youtube.com/user/marmorley68 www.slideshare.net/markmorley68 uk.linkedin.com/in/markmorley +44 1932 776040 Web