b2b managed services: what is it, really and will it …enterprise integration very large file...

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

A “Knowledge is Power” Primer

©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

©2011 GXS, Inc.

Today’s Speaker

Ryan Kraudel

Director

Global Product Management

GXS

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 Services

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

©2011 GXS, Inc.


What is it?

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©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

©2011 GXS, Inc.

In-House B2B Program Environment

GXS Managed Services Environment

©2011 GXS, Inc.

B2B Managed Services A Better Approach for Better B2B Execution

©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 $2,78

6

$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 Forum

2. Total Cost of Ownership Study and Financial Model conducted by Hobson & Company

3. ERP Projects Create Significant Opportunities by AMR Research

©2011 GXS, Inc.


Why are companies like

mine considering this

approach?


©2011 GXS, Inc.

B2B e-Commerce is Costly,

Complex, ContinuousCostly 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

©2011 GXS, Inc.

Challenges Multiply in an

Increasing 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

©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

©2011 GXS, Inc.


So how does this

approach address

these challenges

and provide

value to my

organization?


©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


©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


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


©2011 GXS, Inc.

Centralization/Consolidation


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


©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


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


©2011 GXS, Inc.

Modernization

Business Impact:

Inability to meet trading partner

requirements and business objectives

Higher costs to support

Unable to scale growth


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


©2011 GXS, Inc.

Cost Reductions

Business Impact:

On-going pressures to reduce costs

Maintaining up-to-date infrastructure

Limited budget for new capabilities


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


©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


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?


©2011 GXS, Inc.

Leading Consumer Goods CompanyCustomer Case Study – GXS Managed Services

Exchanges &

Data PoolsDirect Retailer

Connections

Global Europe Americas Asia Pacific

Internal Integration

Plant-to-Plant and Plant-to-HQ

B2B Integration

Internet Communications

& Document Translation

Other Retailers

AS2

Direct

Connection

Internet

Direct

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

©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

©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

©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

http://www.b2bmanagedservices.com/

©2011 GXS, Inc.

Further Information

Additional Resources

www.b2boutsourcing.co.uk

www.b2bmanagedservices.com

http://blogs.gxs.com/

http://www.b2boutsourcing.co.uk/

http://www.b2bmanagedservices.com/

http://blogs.gxs.com/

©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, [email protected]

Ruth-Ann Femenella, [email protected]

http://www.gxs.com/

http://www.gxs.eu/

http://www.gxs.asia.com/

http://www.gxs.co.jp/

mailto:[email protected]




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