How B2B Completes ERP – Part 1


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This presentation provides an overview of why B2B integration to ERP systems is important for companies. In many cases ERP can be considered to be incomplete without integration to a B2B platform that allows companies to then seamlessly connect to external trading partners. GXS Managed Services can provide the people, skills and resources to integrate ERP and B2B systems together. This particular presentation discusses why it is important to integrate ERP and B2B systems together and the benefits that can be achieved. Updated April 2013

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  • Hello and welcome to the first of a two part video presentation which discusses how B2B integration completes ERP. This video presentation is hosted by GXS and my name is Mark Morley, Industry Marketing Director.ERP and B2B systems share many similarities, both require skilled resource to implement and manage on an on-going basis, they need to be accessed by many users across the extended enterprise and they can be difficult to integrate to other back office systems. Whether you are implementing an ERP system for the first time or thinking of upgrading your existing ERP environment, this will provide the ideal opportunity to re-assess your B2B platform requirements as well. Given that many IT resources are diverted towards an ERP implementation, outsourcing the management of a B2B environment can bring many benefits for a company.ERP systems have traditionally focused on supporting internal business processes however more and more these days companies are using external business partners or contract manufacturers and they need access to information from the same ERP platform. Therefore ERP systems need to exchange information in both directions with companies across the extended enterprise. But how can a company achieve this seamlessly if there is no integration between an ERP and B2B platform?. ERP could therefore be considered as incomplete. So let me first outline the agenda.
  • I will start by providing an introduction as to why it is important for companies to be able to exchange business documents seamlessly both into and out of an ERP system. I will then discuss the findings from a recent executive study which looked at how companies were undertaking ERP/B2B integration projects.In the second part of this video presentation I will discuss how a Cloud based approach to ERP/B2B integration can help companies improve visibility into cross-enterprise business processes and transactions. Finally I will also discuss how the cloud can help build a fire wall around your ERP applications thus ensuring that only pre-checked, accurate information enters your ERP system.
  • ERP and B2B integration projects are incredibly complex and require both internal and external users to be integrated to the platform. Whether it is integrating to numerous instances of an ERP platform that may be located in different regions around the world, or simply ensuring that external trading partners can connect to the platform seamlessly, the success of such projects depends on having the right resource available to undertake the work.However once these two platforms are integrated the new platform can bring significant benefits to a company, for example by improving operational efficiencies and offering improved visibility and collaboration across the extended enterprise.
  • To try and get a better understanding of how companies were integrating their ERP and B2B systems and to get a better appreciation of the day to day problems encountered with operating these environments, GXS sponsored a study with a research analyst firm.The study had around 120 respondents from the Retail, CPG, Automotive and High Tech industry sectors. The aim of the study was to ultimately prove that the success of many ERP projects can be directly associated with the level of integration that exists with their respective B2B platform.Some of the key findings from the study are shown on this slide, two results that I would like to draw your attention to was that the respondents said that on average 34% data feeding ERP systems was sourced from outside the enterprise and 79 percent of respondents said that they had exceptions or problems on more than one percent of inbound B2B transactions. I will expand on these results in more detail in a moment, but what types of ERP projects are companies embarking on today?
  • Here are a few examples of some of the more popular ERP projects being undertaken today, each of which provides an ideal opportunity to think about integrating to a B2B platform.Global expansion has led to many new ERP instances being established around the world and with increased IT budgets available now, many CIOs are taking the opportunity to retire older platforms and implement new installations instead.ERP consolidation projects could be undertaken as the result of a Merger & Acquisition process where by the acquired company may be asked to adopt the ERP platform of their new owner. Alternatively if a company is divested as a separate operation, this new company will have a requirement to establish their own new instance of an ERP system. Starting from a clean sheet of paper such as this will allow ERP and B2B processes to be integrated from day one. Upgrading ERP instances from one revision to the next can also provide the ideal opportunity to integrate to an ERP systemFinally, introducing new extensions to an ERP system , such as those used across the supply chain, for example supply chain planning or improving treasury / bank relationships can also present the ideal opportunity for integrating ERP and B2B platforms.In each case, companies should try to minimise the amount of disruption across their supply chain and find a way of smoothly integrating the two platforms as seamlessly as possible.
  • The findings from the study concluded that in order for companies to maximise the ROI from their ERP projects they had to address a number of key issues, namelyHow to ensure that externally sourced information can flow smoothly into an ERP systemHigh availability of B2B systems is critical to the smooth operation of ERP environmentsPoor quality external data needs to be reworked before entering an ERP systemB2B systems are vulnerable when resources are diverted towards ERP projects.So let me now cover each of these four areas in turn….
  • ERP systems use information from a variety of external sources, for example distributors, logistics providers and financial services institutions. This information could originate in numerous business systems and could have been created using different industry related standards. Due to the global nature of many companies there are constant challenges with on boarding suppliers and getting them integrated to a company’s ERP platform. The on-boarding capabilities of a vendor such as GXS can really help to accelerate the speed with which new trading partners are connected to the integration platform. Irrespective of their technical capabilities, GXS can ensure that trading partners have the correct electronic trading capability in place and at the same time provide a seamless integration to the ERP system.As ERP systems receive information from a variety of external partners there is an increased chance that unchecked, inaccurate data could enter an ERP system. Quite often, information from external sources is not clean enough to be processed correctly by the ERP system. This will quite often lead to manual rework of the incorrect information to try and make it compliant. If unchecked information is allowed to enter an ERP system then there is a chance that it could spread into other business systems leading to inaccurate information being used across the extended enterprise. A simple mismatch of part numbers for example could lead to incorrect electronic documents being created which could potentially result in delayed payments to suppliers.
  • For many companies, having access to real time information from outside the enterprise and ensuring that the platform is available 24/7 is crucial to the operation of their business. B2B platforms ensure that information from outside the organisation can be used efficiently by internal business applications such as ERP systems. If there is an interruption to the flow of transactions from outside an organisation then the internal business systems can be severely affected. For example if a car manufacturer does not receive an advanced shipping notice from their supplier to notify them that parts are on their way to a factory then this could have downstream implications as well, for example shutting down a just in time based production line. Many companies need to make business critical decisions in near real time and therefore ensuring that transactions from external business partners gets through to an ERP system without delay or interruption is extremely important.ERP / B2B integration requires an immense amount of co-ordination across the extended enterprise. Ensuring that maps are created correctly, trading partners are all connected properly and more importantly, any changes made to the ERP system are reflected in the B2B system as well. To achieve an integrated platform implies that any changes made to one system will be reflected in the other or vice versa. During an ERP / B2B integration process, numerous change requests will be issued to modify one or other of the systems. This change management process needs to be managed and monitored efficiently otherwise the implementation of the project can be significantly delayed. Having a dedicated program manager look after the implementation can be a worthwhile investment, they not only ensure that valuable IT related resources are being used effectively, they will also ensure that the project comes in on time and more importantly to budget. They also offer support for testing and looking after the overall release and deployment of the newly integrated platform with the customer.
  • To find out further information about how GXS can help maximise the return on ERP/B2B integration projects then please visit the websites highlighted on this slide, you will find some useful resources for managing such projects. The microsite shown on the left provides further information from the ERP/B2B integrationResearch Study and you can download a copy of the study from this site.The microsite shown on the right provides a more detailed overview of GXS ERP integration expertise and how B2B outsourcing can benefit SAP specific integration projects. This site is available in U.S and UK English and German.The web addresses for both sites are shown on this slide.
  • How B2B Completes ERP – Part 1

    1. 1. How B2B Completes ERP – Part 1 Mark Morley, Industry Marketing Director
    2. 2. Today’s Agenda • Introduction • Delivering Increased ROI on ERP/B2B Integration Projects • How Cloud & B2B Outsourcing Help ERP/B2B Integration Projects – Introduction to cloud-based infrastructures – B2B outsourcing, a GXS perspective – Implementing an “ERP Firewall” Slide 2 | © 2013 GXS, Inc.
    3. 3. Introduction • Managing the integration of ERP and B2B systems is complex • ERP and B2B projects are implemented across internal and external users • Integrated ERP and B2B systems introduce significant operational efficiencies • ERP B2B integration provides improved visibility into cross enterprise business processes Slide 3 | © 2013 GXS, Inc.
    4. 4. Companies Need Two Way Exchange of Business DocumentsWarehouseManagement Inbound Documents TransportManagementProductionInformationInventory Control CustomsScheduling Purchase ASN/Delivery Declaration InvoicesInformation Orders Notices Forms OrderInformation Capacity Outbound Documents Planning Slide 4 | © 2013 GXS, Inc.
    5. 5. Many Companies Need to Improve HowThey Integrate ERP & B2B • 48 percent of respondents said they had lost B2B connectivity • 34 percent of respondents said B2B integration staff were supporting ERP related projects • 34 percent of the data feeding ERP systems is generated externally • 29 percent of respondents said that they had to prematurely terminate B2B testing programs relating to external trading partners • 79 percent of respondents have exceptions or problems on more than one percent of inbound B2B transactions • 80 percent of respondents plan to move to highly consolidated ERP environments Slide 5 | © 2013 GXS, Inc.
    6. 6. Companies Undertake Many DifferentTypes of ERP Related Projects New Consolidations Installations Retire Legacy Mergers & Mainframes Acquisitions Rapid Company Shared Services Growth for Back Office Upgrades Extensions Vendor End of Supply Chain Life Support Planning Expanded Treasury or Bank Feature Set Relationship Management Slide 6 | © 2013 GXS, Inc.
    7. 7. Delivering Increased ROI on ERP Projects • Significant amounts of information entering an ERP system sourced from outside the enterprise • High availability of B2B systems is critical to the smooth operation of ERP environments • Poor quality external data needs to be reworked before entering an ERP system • B2B systems are vulnerable when resources are diverted towards ERP projects Slide 7 | © 2013 GXS, Inc.
    8. 8. Delivering Increased ROI on ERP Projects Externally Sourced Data Quality Compromises ERP Data ERP ValueOn average 34% of data feeding 79% of respondents said that an ERP system comes from more than 1% of transactions outside the enterprise needed to be reworked Slide 8 | © 2013 GXS, Inc.
    9. 9. Delivering Increased ROI on ERP Projects High Availability in B2B Is Lack of Program Critical Management 48% of respondents said they 84% of respondents had had lost connectivity with experienced delays with their their B2B system ERP B2B integration projects Slide 9 | © 2013 GXS, Inc.
    10. 10. For Further Information Slide 10 | © 2013 GXS, Inc.
    11. 11. Thank You GXS web sites Phones US: US: 1-800-334-2255, option 3 EMEA: EMEA: +44 (0) 1932 776047 Slide 11 | © 2013 GXS, Inc.