B2B Managed Services: What Is It, Really – And Will It Work

for Me?A “Knowledge is Power” Primer

Slide 2 ©2011 GXS, Inc.

Agenda

B2B Managed Services What is it…really

Why are companies considering this approach

How does this approach address business challenges

How are companies benefiting

Why should organizations consider it

What to look for when selecting a provider

Slide 3 ©2011 GXS, Inc.

Today’s Speaker

Ryan KraudelDirector

Global Product ManagementGXS

Leveraging 15 years experience, works closely with customers around the world to help develop their business, marketing and technology strategies

Eight years with GXS leading the team responsible for strategy, development and execution of GXS’s portfolio of B2B managed service

Global speaker and actively involved in several B2B e-commerce industry organizations and standards bodies

Prior to GXS, held senior positions at webMethods, Porter Novelli, BMC Software, PricewaterhouseCoopers

Holds MBA from University of Maryland

Avid runner along side “Tucker,” his brown lab and best buddy

Slide 4 ©2011 GXS, Inc.

B2B Managed Services

What is it?

Slide 5 ©2011 GXS, Inc.

Includes these components: B2B infrastructure management (hardware, software,

operations) Mapping and data translation Protocol mediation Trading community implementation Transaction monitoring and reporting Transaction error resolution Customer/trading partner support

Definition: b·2·b man·aged ser·vic·es

Management of your day-to-day B2B transaction activities by a trusted, experienced partner

Slide 6 ©2011 GXS, Inc.

In-House B2B Program Environment

GXS Managed Services Environment

Slide 7 ©2011 GXS, Inc.

B2B Managed Services A Better Approach for Better B2B Execution

Slide 8 ©2011 GXS, Inc.

Large and Growing Market Adoption

Benefits include an annual average return-on-investment of 250%

Business partner satisfaction is increased with a 75% improvement in B2B capabilities

New sales are accelerated by a 4-fold increase in customer implementation timeframes

On average, customers reduce total costs of integration by 20-40% versus in-house operations

$1,047 $945 $895 $846

$704 $848 $1,047

$1,807

$769 $720$724

$854

$252 $273$301

$390

0

1,000

2,000

3,000

$4,000

2008 2009 2010E 2013E

9.0%

2.1%

20.8%(4.2%)

$2,771 $2,786

$2,967 $3,896

Total B2B Market

Size

3 yr CAGR

B2B Outsourcing

IaaS (VAN)

Other B2B SoftwareB2B Middleware Software

Source: Gartner, Market Trends: Multi-enterprise/B2B Infrastructure Market, Worldwide, 2009-2014, 14 July 2010

Sources: 1. B2B Outsourcing Value Study conducted by Stanford University – Global Supply Chain Management Forum2. Total Cost of Ownership Study and Financial Model conducted by Hobson & Company3. ERP Projects Create Significant Opportunities by AMR Research

Slide 9 ©2011 GXS, Inc.

B2B Managed Services

Why are companies like mine considering this approach?

Slide 10 ©2011 GXS, Inc.

B2B e-Commerce is Costly, Complex, Continuous

Costly Complex Continuous

Perpetual Maintenance Fees

Rapidly Growing Storage Footprint

Labor-Intensive Increasingly

Customized

Enterprise Integration Very Large File

Transfer EU Invoicing

Regulations Multilingual Support

ERP Upgrades Dynamic Trading

Partner Community Post M&A

Consolidation New B2B Standards

Slide 11 ©2011 GXS, Inc.

Challenges Multiply in anIncreasing Global Reality

Companies like yours are expected to achieve more and more each year, even though their budgets remain

the same or become smaller.

Regions Supported

Trading Partners

ProjectRequests

Slide 12 ©2011 GXS, Inc.

Key Business Challenges

ERP Projects

Customer Integration

Centralization/Consolidation

New Markets/Channels

Modernization

Cost Reduction

Workforce Optimization

Addressing B2B Challenges in a Dynamic World

“A Knowledge is Power” Primer

Slide 13 ©2011 GXS, Inc.

B2B Managed Services

So how does this approach address

these challenges and provide value to my

organization?

Slide 14 ©2011 GXS, Inc.

ERP Projects

Business Impact: Any change to ERP data structure causes

costly/time-intensive to upgrade maps ERP project delays due to complexities Data error rates impact bottom line

B2B Managed Services: Shift B2B operations to third party to

focus limited internal resources on ERP Robust testing and implementation

processes ERP “firewall” to ensure data quality &

compliance

How to Maximize Your Investments in

ERP

“A Knowledge is Power” Primer

Slide 15 ©2011 GXS, Inc.

Customer Integration Challenges

Business Impact: Inability to meet customer integration

requirements Poor customer satisfaction Delayed revenue Long on-boarding cycle for partners

B2B Managed Services: Support for a wide variety of customer

integration options Quickly on-board new partners…any size,

any location, any technical capability Access global network of trading partners

How to Become Easier to Do

Business with

“A Knowledge is Power” Primer

Slide 16 ©2011 GXS, Inc.

Centralization/Consolidation

B2B Managed Services: Cost avoidance One connection to entire trading

community Eliminate overlapping systems Monitoring/visibility advantages Consistent services across regions and

business units

Business Impact: Limited visibility, higher costs Fragmented B2B networks and

infrastructure—costly and inefficient Decentralized business decisions

How to Gain Control and Visibility Across

Fragmented Operations

“A Knowledge is Power” Primer

Slide 17 ©2011 GXS, Inc.

New Markets/Channels

Business Impact: Lack of resources and/or expertise in

new market or channel Expansion failures Missed sales/revenue opportunities

B2B Managed Services: Instant global footprint of skills,

resources, and knowledge Established global trading network Cross cultural competencies Multi- language support

How to Rapidly Expand into New Markets and New

Channels

“A Knowledge is Power” Primer

Slide 18 ©2011 GXS, Inc.

Modernization

Business Impact: Inability to meet trading partner

requirements and business objectives Higher costs to support Unable to scale growth

B2B Managed Services: Meet trading partner requirements with

lower capital expenditures Future cost avoidance Enable successful growth objectives Immediate access to latest technologies

How to Modernize without Increasing

Costs or Risk

“A Knowledge is Power” Primer

Slide 19 ©2011 GXS, Inc.

Cost Reductions

Business Impact: On-going pressures to reduce costs Maintaining up-to-date infrastructure Limited budget for new capabilities

B2B Managed Services: Control on-going investments Connect with diverse partners

regardless of size, location, technical capabilities

Access to skills you need, when you need

How to Do More with Less

“A Knowledge is Power” Primer

Slide 20 ©2011 GXS, Inc.

Workforce Optimization

Business Impact: Critical B2B project delays e.g., ERP

Integration Poor customer satisfaction, delayed IT

projects Inability to meet on-boarding requirements Skills shortage, high costs to train/retrain

B2B Managed Services: Refocus valuable IT resources Access skills you need, when you need Gain B2B specialists/expertise on your team Improve productivity/meet deadlines Lower operating costs

Can Your IT Resources Keep Up

with Continuous B2B Change and Advances?

“A Knowledge is Power” Primer

Slide 21 ©2011 GXS, Inc.

B2B Managed Services

How are companies  benefiting, and why should my organization be considering it?

Slide 22 ©2011 GXS, Inc.

Leading Consumer Goods CompanyCustomer Case Study – GXS Managed Services

Exchanges &Data Pools

Direct RetailerConnections

Global Europe Americas Asia Pacific

Internal IntegrationPlant-to-Plant and Plant-to-HQ

B2B IntegrationInternet Communications & Document Translation

Other Retailers

AS2Direct

Connection

InternetDirect

Connection

Other RetailersChallenges:

Current Global Platform

Represents only 25% of EDI

Deployed in 35 markets

700 trading partners and 300 maps

Multiple local VAN providers

Connectivity to SAP ERP

Solution: Consolidated fragmented EDI solutions across 100 markets into a single global solution

Integration with 4 major SAP ERP instances deployed regionally

Enable localized support for country specific requirements (e.g., e-invoicing)

Deploy SAP Global Trade Services to connect to country customs authorities

Connectivity services for partners not capable of using AS2

Slide 23 ©2011 GXS, Inc.

Distributors CustomersLogistics Carriers

ERP Integration

Map and Forms Dev

Change Management

Activity Monitoring

Community On-boarding

Technical Support

ORDERS, DELJIT, DELFOR, DESADV, INVOIC

X.400, AS2, FTP, SFTP

Challenges:

Legacy IBM AS400 B2B translator (out of support)

4 different VAN providers globally

Existing B2B systems did not support customers demands

Concerns over B2B impact on future growth plans

Solution: Scalable Environment Improved Efficiencies, Partner Relationships & Enabled Growth Direct integration to SAP for IDOC

transactions

Connection to 61 trading partners

Localized support for country specific requirements

Support for EDIFACT, Tradacoms, IDOC,and flat file formats over AS2, X.400, FTP, SFTP

Multinational Building Materials ProducerCustomer Case Study – GXS Managed Services

Slide 24 ©2011 GXS, Inc.

B2B Managed Services

What should I be looking for when selecting a B2B Managed Services provider?

Slide 25 ©2011 GXS, Inc.

ExperienceTime-tested, most customers, brand-name references, migration best practices

Global ReachOperations span the globe, 24x7 worldwide multi-language in 15 languages, global data centers, Global Centers of Excellence

Leadership and InnovationAnalyst-validate, top segment share, financial stability

Quality & ReliabilityQuarterly SAS 70 Type II certification, PCI, ITIL, designated Project Managers, proactive BAM, HA/DR investment

Community CollaborationProven on-boarding methodology, pre-connected trading partners, cross industry

Proven Scale Worldwide customers, processes billions of transactions annually, thousands of maps in production, experienced mappers

Selecting a B2B Managed Services Provider

High Availability Architecture Cloud-based integration platform, dual-legged environment, limited maintenance windows, disaster recovery – multi-data center fail-over

Flexibility and SpeedMultiple ways to connect, including: web forms, Excel, ERP adapters, interconnects, direct connects

ERP Integration CompetenceSAP-certified, Microsoft-recommended, Oracle experience, 30+ hosted adapters, any-to-any data mapping

Managed Services Focus% of revenues, services investments, commitment to success

KNOW-HOW

TECHNOLOGY

PROCESSES

PEOPLE

Slide 26 ©2011 GXS, Inc.

B2B Manages Services Checklist

When it comes to technology, a provider should have______?

When it comes to experience, a provider should have_______?

Finally, a vendor should have the right

people and proven

processes. Look for a provider with_______?

Download checklist at www.b2bmanagedservices.com

Slide 27 ©2011 GXS, Inc.

Further Information

Additional Resources

www.b2boutsourcing.co.ukwww.b2bmanagedservices.com

http://blogs.gxs.com/

Slide 28 ©2011 GXS, Inc.

Thank You for Your Participation

For More Information

Phones

US: 1-800-334-5669, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Japan: +81-3-5574-7545

GXS Web Sites

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Japan: www.gxs.co.jp

Presenters:Ryan Kraudel, Ryan.Kraudel@gxs.com

Ruth-Ann Femenella, Ruth-Ann.Femenella@gxs.com