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B2B Challenges Across the High Tech Industry

This presentation provides a brief overview of the key business challenges facing the High Tech today and how OpenText helps companies address these challenges via OpenText Trading Grid, the world’s largest cloud integration platform. The presentation also provides a few short case studies on how companies are using OpenText solutions. Updated May 2014

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B2B Challenges Across the High Tech Industry

  1. 1. OpenText in High Tech
  2. 2. OpenText Information Exchange OpenText Confidential. ©2014 All Rights Reserved. 2
  3. 3. Today’s Manufacturing Value Chain Distributed Operations in Multiple Countries OpenText Confidential. ©2014 All Rights Reserved. 3 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)
  4. 4. OpenText Confidential. ©2014 All Rights Reserved. 4 High Tech Industry Trends  Cloud, Mobile & ‘Big Data’ are all driving new ICT related enterprise investment  Increased wage rises and strikes in China leading to investment in Brazil and Mexico  New sourcing strategies due to the ‘Tablet Effect’ across high tech supply chains  Companies such as Google enter the hardware sector  Significant investment into ‘The Internet of Things’ and Wearable Devices
  5. 5. Consumer Driven Industry Convergence High Tech Companies Diversify into Automotive OpenText Confidential. ©2014 All Rights Reserved. 5 Open Source Apps Wireless Charging 4G LTE Connection Cloud Telematics Gesture Control Autonomous Driving
  6. 6. Supporting Global High Tech Customers 60% 80% OpenText Confidential. ©2014 All Rights Reserved. 6 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%
  7. 7. The High Tech Industry has some Interesting B2B Challenges OpenText Confidential. ©2014 All Rights Reserved. 7 Consolidation or Modernization of B2B Extensive M&A activity leading to a need for B2B network consolidation to reduce costs and improve efficiencies Provide Global Interoperability Increasing requirement to provide connectivity to global manufacturing hubs located in established and emerging markets Improve Integration to ERP Systems Consolidation of ERP instances and upgrade to new modules is driving new ERP/B2B integration projects
  8. 8. The High Tech Industry has some Interesting B2B Challenges Increase Supply Chain Resilience Recent natural disasters have led to companies needing to improve supply chain disaster response procedures OpenText Confidential. ©2014 All Rights Reserved. 8 Support Expansion into Emerging Markets Introduction of new global manufacturing hubs is leading to a need to improve on-boarding and ensure 100% supplier automation Adhere to Complex e-Invoicing Regulations More countries such as Brazil and Mexico are now mandating the use of e- Invoices as a condition of doing business within their country
  9. 9. OpenText™ Trading Grid™ Provides a Single Integration Point Into the Enterprise OpenText Confidential. ©2014 All Rights Reserved. 9
  10. 10. OpenText™ Managed Services OpenText Confidential. ©2014 All Rights Reserved. 10
  11. 11. Research Findings Validate ROI 3rd Party Validation From Leading Institutions  68% Said that Managed Services helped improve the efficiency of on-boarding new customers OpenText Confidential. ©2014 All Rights Reserved. 11  59% Said that Managed Services helped enable a reduction in B2B integration costs  74% Said that replacing capital expenditure with a monthly fee was valuable to their business  59% Said that Managed Services helped to better meet/respond to change in customer requirements Managed Services Trends Study by Stanford University 96% Reported that Managed Services Added Significant Value to their Overall B2B Integration Programs B2B Managed Services Value & Trends Study conducted by Stanford University – Global Supply Chain Management Forum
  12. 12. Benefits of Cloud Based B2B Integration OpenText Confidential. ©2014 All Rights Reserved. 12 Offers Scalability & Flexibility Simplifies Connectivity Provides End-to- End Visibility Improves Collaboration Simplifies Integration Increases Security
  13. 13. OpenText High Tech Customers North American Printer Manufacturer  They wanted to find a way of automating 100% of their supplier processes and simplify TP on-boarding process.  Trading Grid™ for Excel was deployed to simplify and automate the exchange of EDI related documents with their trading partners. GXS creates and hosts all their templates online.  Provided 100% enablement, especially with their trading partners located in ASPAC who have very limited ICT and B2B skills OpenText Confidential. ©2014 All Rights Reserved. 13 North American Computer OEM  Increased consumer demand put pressure on their build to order process, needed to on board new original design manufacturers (ODMs) and expand retail network  OpenText™ Managed Services was deployed to support the processing of five million transactions (300 types) per day across 2K partners in 30 countries  Consolidated 3 legacy systems, decommissioned more than 200 servers running 20 supply chain software solutions . TP on-boarding now achieved in days rather than months. European SC Manufacturer  Needed to improve management of inventory levels whilst maintaining service levels and keeping control of all costs. Required a stable B2B platform during each business cycle.  OpenText™ Trading Grid™ Messaging Service was deployed to on-board over 500 TPs and ensure that 99% of EDI traffic (approx 300Mb per month) was running across new platform.  OpenText provides a single, stable and secure B2B platform to allow this company to work with their global network of trading partners
  14. 14. OpenText Confidential. ©2014 All Rights Reserved. 14 Conclusions High tech companies are continuing to look for ways to cut costs in order to become more competitive. Increased adoption of B2B helps to:  Consolidate legacy B2B infrastructures on to one common platform  Improve internal communications between manufacturing plants and external communication to global trading partners  Provide improved integration to manufacturing systems such as ERP platforms  Support expansion into new markets  Adhere to regional e-Invoicing regulations and reduce the amount of paper based documents flowing across the extended enterprise  Minimise supply chain disruption through improved information management & collaboration
  15. 15. Mark Morley | Copyright © OpenText Corporation. All rights reserved. W