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High Tech Results from AMR Research ERP B2B Study


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This presentation discusses the high tech related results from a study conducted in late 2009 by the analyst firm AMR Research. The study looked ERP/B2B integration and the importance of having these two environments seamlessly integrated together. Updated April 2013

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High Tech Results from AMR Research ERP B2B Study

  1. 1. Mark Morley, Industry Marketing DirectorReview of High Tech Related ResultsFrom AMR Research ERP/B2B Study
  2. 2. Slide 2 | © 2013 GXS, Inc.The Need for ERP to B2B Integration• There are a number of key drivers forintegrating ERP and B2B systems– Significant amounts of ERP data issourced from outside a company– Data quality compromises ERP value– Poor B2B integration limits visibilityinto business processes– High Availability in B2B is critical
  3. 3. Slide 3 | © 2013 GXS, Inc.ERP & B2B Integration StudyDennis GaughanJim ShepherdProgram Goals– Build awareness of the importance of B2B outsourcingwith respect to the success of ERP related projects– Understand why B2B integration is so critical to thesuccess of ERP projects– Find out why B2B outsourcing is such a compellingproposition for manufacturersStudy Topics– ERP systems cannot function properly if B2B systemsare down and no information can come in from externaltrading partners– ERP is handicapped if external data is of poor quality– ERP ROI is limited if ERP projects are delayed
  4. 4. Slide 4 | © 2013 GXS, Inc.AMR Research ERP/B2B StudyResponses from High Tech Participants• 90% of respondents said they had experienced delays withERP projects due to B2B integration issues• 56% said they were consolidating multiple disparate B2Bgateways on to a common integrated platform• 37% of respondents said B2B integration staff weresupporting ERP related projects• 30% of the data feeding ERP systems is sourced externally• 46% of respondents said they had lost B2B connectivity• 74% of respondents had a no ERP downtime policy• 79% of respondents have exceptions or problems on morethan 1% of inbound B2B transactions• 74% of respondents said they would be enforcing higherlevels of data quality from their trading partners“As management teams focus on theneed for systems and processes tosupport an integrated globalbusiness, the importance of therelationship between ERP and B2Bbecomes critical”AMR Research 2009 Responses in red were the highest of the industry sectors surveyed
  5. 5. Slide 5 | © 2013 GXS, Inc.ERP DeploymentResponses from High Tech Participants44%28%15%13%2 to 4 regionalsystemsSingle globalinstanceMultiple instancesacross businessunits andsubsidiariesOne globalinstance per line ofbusiness21%51%15%13%Today In 3 YearsQ. Which of the following best describes your current ERP deployment?Q. Which of the following best describes what your ERP deployment will look like in 3 years?N = 39 High Tech Respondents
  6. 6. Slide 6 | © 2013 GXS, Inc.• ERP uses information from variousexternal sources• Information can be sourced fromcustomers, logistics providers andfinancial service institutions• Information derived from differentglobal standards can be difficult tomanage• Integrating trading partners toremote manufacturing plants canbe difficultExternally Sourced ERP Data
  7. 7. Slide 7 | © 2013 GXS, Inc.Data Feeding ERP SystemsResponses from High Tech Participants70%30%Generated internallyGenerated externallyCustomers/distributors45%Supplier/ contractmanufacturers30%3PLs14%Other11%Data feeding ERP systems* External data feeding ERP systemQ. What percent of the data feeding your ERP system is generated internally vs. externally?Q. What are you plans for technologies to support workforce management and procedures in the next 2 years?N = 39 High Tech Respondents
  8. 8. Slide 8 | © 2013 GXS, Inc.External Transactions RequiringException Handling or Rework21%33%26%20%Less than 1%1-2%3-4%More than 5%79% of respondents saidthat more than 1% oftransactions needsreworkingIf a company processes 1Million transactions peryear this represents10,000 transactions thatwill need reworkingQ. What percentage of the transactions originating from external trading partners which are processed directly intoyour ERP system require exception handling or error processing?Extensive ReworkN = 121 Total Respondents
  9. 9. Slide 9 | © 2013 GXS, Inc.High Availability in B2B is Critical• Ensuring that B2B information isavailable 24/7 is crucial to theoperation of an ERP environment• B2B platforms ensure that externallysourced information can be used byinternal business applications• Lack of B2B information could leadto production line stoppages• Business critical decisions need tobe made in real time to allowoperations to run smoothly
  10. 10. Slide 10 | © 2013 GXS, Inc.Loss of B2B ConnectivityResponses from High Tech ParticipantsNo54%Yes46%Loss of B2B connectivityQ. Has your company every experienced a loss of B2B connectivity that has impacted your manufacturingoperations?Q. How important/effective is your company’s contingency plan for mitigating risk of losing B2B connectivity tomanufacturing operations?67%44%ImportanceEffectivenessImportance/Effectiveness ofContingency PlanGap = 23% !N = 39 High Tech Respondents
  11. 11. Slide 11 | © 2013 GXS, Inc.Policy for no Scheduled ERP DowntimeNo26%Yes74%Q. Does your company currently have a policy for no scheduled ERP downtime for the end of quarter sales periods?63%74%77%82%38%26%23%18%Food &Beverage (n=32)High Tech (n=39)CPG (n=32)Auto (n=28)NoYesIndustryN = 121 Total Respondents
  12. 12. Slide 12 | © 2013 GXS, Inc.Program Management• Integrating ERP and B2B requiresconstant monitoring to ensurethat any problems are resolvedefficiently• Changes made to an ERP systemmay need to be incorporated intothe B2B platform as well, or viceversa• Must ensure that the ERP/B2Bintegration platforms is testedand deployed correctly
  13. 13. Slide 13 | © 2013 GXS, Inc.35%48%17%Basic testing ofmostobvious, commontasksRobust testing ofcommon andobscure, less-used functionsTesting effortswere terminatedprematurely tomeet externallyimposed go-livedeadlinesTesting Approach on ERP Projects withB2B IntegrationQ. During the course of your ERP projects that included significant B2B integration, which of the following bestdescribes the testing approach performed with internal participants and external trading partners?36%35%29%Internal Participants External Trading PartnersN = 121 Total Respondents
  14. 14. Slide 14 | © 2013 GXS, Inc.Severity of Delays in ERP Projects Causedby B2B Integration Issues23%67%8%3%Major issues were encountered which causedsignificant delaysMinor issues were encountered which causedsmall delaysMinor issues were encountered, but caused nodelaysNo issues were encounteredQ. Which of the following best describes the issues you may haveencountered with B2B integration which caused a delay to ERPprojects currently underway or previously performed?Delays in both B2B planning and integrationcan potentially cost companies in excess of$45K a day or $1Million per month…..N = 39 High Tech Respondents
  15. 15. Slide 15 | © 2013 GXS, Inc.AMR Research Study Conclusions• Most of the companies in the survey base have major ERP projectsplanned or in progress• B2B Integration is frequently the cause of expensive delays in ERPimplementation projects• ERP projects often drive new B2B initiatives and significant changes instrategies and vendor preference• B2B components receive less rigorous testing than internal ERPfunctions and during project delays B2B integration testing isfrequently cut short to facilitate go-live dates• ERP consolidation/upgrade projects create disruption andconsolidation opportunities for B2B
  16. 16. Slide 16 | © 2013 GXS, Inc.Thank YouPhonesUS: 1-800-334-2255, option 3EMEA: +44 (0) 1932 776047GXS web sitesUS: www.gxs.comEMEA: