b2b and smarter commerce - ibm · © 2011 ibm corporation b2b and smarter commerce ronald reuten ®...

© 2011 IBM Corporation

B2B and Smarter CommerceRonald Reuten

®


We have entered the age of the empowered customer

This is changing

the entire way

products are

sourced,

manufactured and

distributed—and

making business

more complex

than ever.

Customer

expectations of

service, price and

delivery is soaring.

Customers now have

unlimited access to

information and can

instantly share it

with the world

Social networking and

mobile commerce

have dramatically

changed the dynamic

between buyer and

seller.

155 millionNumber of tweets sent via Twitter each day

75%Percentage of people who believe companies don’t tell the truth in advertisements

$93 billionAmount in sales missed due to out of stock inventory

Sources: Fortune Magazine, May 2, 2011 Issue, Article Trouble@Twitter, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 2008

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These disruptive forces ripple from the customer through the enterprise and across entire industries

Source: IBV Analysis

Individuals

• The connected consumer

• The networked workforce

• The empowered citizen

Industries

• Value migration

• Value chain redefinition

• Fragmentation

Enterprises

• Evolved business models

• Optimized digital operations

• Connected enterprise

“The consumer is using new channels to

perceive value, and associated

pricing implications.“

Consumer Products CEO, United States

"Profits will shift away from analog

distribution to digital distribution;

we will see increased margins in

digital distribution and increased

international distribution.“

Media and Entertainment CEO, United

States

“Disintermediation of clients by smaller

niche players (such as mobile players)

is cause for concern.“

Financial Markets CEO, Canada

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At IBM we call the path forward: Smarter Commerce

It drives growth by enhancing,

extending, and redefining the

value you provide

Smarter Commerce is a

strategic approach that

places the customer at

the center of your

business operations

It increases margins by

boosting efficiency at every

stage of the commerce cycle

It synchronizes your

entire value chain to

deliver consistent and

predictable outcomes

It maximizes the insight

generated through

customer interactions

It capitalizes on

social and mobile

commerce

It improves collaboration

and visibility for your

customers & partners

Customer

®


Smarter Commerce can help transform every phase of the commerce cycle

BuySourcing,

controlling and procurement of

goods and services

MarketTargeted and personal ized

marketing across all customer

interactions

ServiceServicing

customer needs across all interaction channels

Sell Enables selling and fulfillment of

products and services across

all channels

MarketBuy

Service SellCustomer

Insight Strategy

Engagement

®


B2B integration capabilitiesare critical for Smarter Commerce

Universal ConnectivityUniversal Connectivity

OutsideInside

Cloud Deployment

Connect Transform Secure Collaborate

Appliance Acceleration

Mobile PartnersSensorsCloudData ServicesMainframe FilesEventsApps Processes

Buy Market Sell Service

Automate

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The flow of business data is critical to Smarter Commerce and the processes that enable it

• Banking– Corporate payments and settlements

• Consumer products and electronics– Order and fulfillment transaction processing

• Retail– Cross channel order management

• Communications service providers– Solution delivery and consolidated billing

But today it is …Too complicated

Too slowToo expensive

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Research confirms the problems with partner integra tion

• Too complicated• 68% of executives report that integration challenges impede

collaborative relationships with partners

• Too slow• Time/cost of onboarding new connections in top three concerns of

IT managers in handling file transfers with partners

• Too expensive• Over $10 to manually process a business document

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Become easier to do business

Drive cost and inefficiency out of manual B2B processes

Connect people together to drive innovation and revenue

Connect Automate Collaborate

IBM B2B Integration & Managed File Transfer solves the Smarter Commerce integration challenge by enabling you to…

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Projects to strengthen your B2B capabilities

B2B Integration Managed File TransferConnect to your trading

partners - through direct

connections for high-volume

trading partners

Reduce your TCO of B2B

Integration –while increasing

reliability and customer

satisfaction

Build a comprehensive hybrid

B2B integration environment

- delivers process integration

across an agile supply chain

Offload B2B file transfers to the

Cloud – and reduce the strain on IT

from file-based business interactions

with trading partners

Remediate your FTP risk-overcome the risks to critical

business processes and data

security

Achieve operational excellence

in MFT- Reduce interruptions of

key business processes

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Projects to make you more successful…


Connect to your trading

partners - through direct

connections for high-volume

trading partners

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CSX Transportation (CSX) improves customer relationswhile streamlining cost

� Now with a centralized system, the high cost of having

to process orders from their customers via multiple

VANs has been eliminated, resulting in a return on

investment within 18 months of implementation

� Easily extend their automated processes across

enterprise boundaries, regardless of their business

partners’ differing connectivity technologies, policies,

procedures, preferences, and priorities

� To establish a cost effective, high-performance

platform for internal and external communications.

� IBM® Sterling B2B Integrator makes it faster and easier

to build, deploy, and manage B2B solutions across

diverse business partner communities

CSX Transportation provides a crucial link to

the transportation supply chain through its

approximately 21,000 mile rail network, in

23 states east of the Mississippi River, the

District of Columbia, and the Canadian

provinces of Ontario and Quebec.

Customer Profile

Challenge

Results

Solution

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Leverage direct connections with key trading partnersto reduce costs and improve customer service

• How much are your monthly Value-Added Network costs?

• Are you using multiple Value-Added Networks to reach your trading partners?

• What percentage of your Value-Added Network costs relate to key partners with significant data volumes?

• Are you able to support technology and service-level requirements of major customers?

Bottom line:While Value-Added Networks make sense for small and occasional partners, direct connections reduce cost and improve customer service for key trading partners

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There is opportunity in supporting direct connections with key trading partners

82%Senior IT managers citing

the need to reduce rising

costs as a major business

issue

20 billionAnnual volume of global EDI transactions

70%of chief supply chain

officers report that lack of

visibility has a significant

impact on their supply

chains

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The benefits of supporting direct connections with key partners are...

• Reduce operational costs for you and your customers

• Improve service levels with customers and partners

• Improve ability to rapidly meet customers mandates

• Make it easier to do business with your company

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IBM® Sterling B2B Integration Solutions

Carriers

Banks

Partners

Suppliers

Customers

Pre-connected partners

IBM Sterling B2B Cloud Services

IBM Sterling B2B GatewaysIBM Sterling Transformation Engines

IBM Sterling B2B Process Applications

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Reduce your TCO of B2B

Integration –while increasing

reliability and customer

satisfaction

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Hirschvogel, Inc automates and streamlines B2B processes without high capital investments

� Needed to automate manual B2B data processing with

new ERP system but faced a shortage of in-house

resources to manage a B2B integration project

� IBM® Sterling B2B Integration Services - operating all or

part of a company’s B2B integration infrastructure and

processes leveraging cloud technologies to enable

acceleration of ROI for B2B projects

Hirschvogel Inc. makes metal components

for the automotive industry. The company

supports the North American automotive

market for the parent company in Germany.

Hirschvogel Automotive Group is one of the

world’s top manufacturing specialists in

metal forming and machining.

� Total Cost of ownership for B2B collaboration reduced

by 90%

� Removes burden on internal IT resources

� Improves visibility into supply chain resulting in higher

customer satisfaction and lower costs

Customer Profile

Challenge

Results

Solution

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Trading communities are becoming increasingly complex and diverse: Do you have the capacity?

• Do you have the resources you need to optimize and scale your B2B integration infrastructure to support your global trading partners?

• Do you have the bandwidth and expertise within your IT staff to design, test, implement and support mapping and ongoing document translation requirements?

• Do you want to utilize your IT resources to optimize your B2B capability or are there other business critical projects for them to focus on?

• How do you currently provide multi-lingual and multi-time zone support to your global trading community?

Bottom line:Facilitate growth by rapidly growing and adapting your B2B

community without burdening internal resources and capital outlay

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There is opportunity in supporting outsourcing B2B Integration


the need to reduce rising

costs as a major business

issue

50%Of businesses plan to

adopt more

collaborative

sourcing models

63%of companies have not

established electronic

communication with over

half of their suppliers

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The benefits of outsourcing B2B Integration include:

• Reduced total cost of ownership of B2B operations

– Total cost of ownership reduced 121%1

• Provided visibility and control over collaborative processes

• Automated data flow processes, reducing errors

• Reduced internal resources required to manage B2B environment

• Improved customer satisfaction • Decreased trading partner on boarding times

1Source: Business Value of Sterling Commerce Managed Services for B2B Integration for detailed explanation of the ROI model and results

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IBM® Sterling B2B Cloud Services

IBM® Sterling B2B Collaboration Network

IBM ® Sterling B2B Integration Services

Access to over 300,000 pre-connected trading

partners

®




Build a comprehensive hybrid

B2B integration environment

- delivers process integration

across an agile supply chain

®


Unisource Canada strives for transactional excellence with automated purchase to pay

� Now that manual interventions have been removed,

orders are processed in a more timely and accurate

fashion

� Data accuracy from suppliers increased 90 percent

� Improved on-time delivery to customers, which

increases their satisfaction and loyalty.

� More accurate orders resulting in more accurate stock

levels

� A cost-effective and efficient way of transacting

electronically with suppliers

� IBM® Sterling B2B Collaboration Network and IBM®

Sterling Supplier Portal gives suppliers a cost-efficient

alternative process collaboration environment

� IBM® Sterling B2B Integrator to integrate business

processes

Unisource is Canada’s single-source

distributor of more than 80,000

paper, printing, imaging, graphic

arts, packing, and maintenance

supplies and equipment.

Customer Profile

Challenge

Results

Solution

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Commerce begins with your supply chain partners: Have you automated the process?

• Do you know the cost of doing business with suppliers manually?• What is the cost of reconciling errors introduced during manual

processing?• Do you have the confidence in your supply chain to compete and win

new business? • Can your suppliers see into your supply chain?

Bottom line:A comprehensive approach to supplier integration is critical

to customer satisfaction and your margins

®


There is opportunity in automating trading partner integration

68%Of supplier transactions are

handled manually

$93 billionAmount in sales missed due to out of stock inventory

$53Is the reconciliation

cost per error for

manually processed

documents

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The benefits of automating 100% of your procure-to-pay processes are...

• Reduce operational costs

• Improve service level agreements with customers and partners

• Compete and win new business through an agile supply chain

• Make it easier to do business with your company

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IBM® Sterling B2B Integration Solutions

Carriers

Banks

Partners

Suppliers

Customers

Pre-connected partners

IBM Sterling B2B Cloud Services

IBM Sterling B2B GatewaysIBM Sterling Transformation Engines

IBM Sterling B2B Process Applications

®


IBM® Sterling B2B IntegratorModular, Secure, B2B Gateway

Integration Adaptors

FTP/S

Mailbox

Repository

SFTP

Web Based User and Administration GUI

Connect:Direct

HTTP/S

Web Services

Other protocols

Translation

Process Engine

Application Framework – Clustering, Load balancing, etc.

Partner Management

Monitoring/Alerting

Per

imet

er S

ervi

ces

Partners

3rd PartySystems

B2B CloudServices

InternalApplications

Users

®


Offload B2B file transfers to the

Cloud – and reduce the strain on IT

from file-based business interactions

with trading partners



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Large US Food/Beverage manufacturer transformed B2B & file transfer environment by moving to the cloud

� Provide superior & consistent customer service & one-

face to customers for eCommerce services including:

� Multi-gigabyte POS transfers from retail partners

� Multiple service providers & disparate systems

� IBM® Sterling File Transfer Service for large POS file

transactions, & IBM Sterling B2B Integration Services to

consolidate all redundant internal systems and external

service providers to a single B2B Cloud solution.

� Transformed complex environment to a single cloud

provider, via a single connection to the cloud

� Consolidated visibility and governance for all

eCommerce services

� Added new capabilities around large file transfers

� Eliminated multiple internal environments

One of the largest Beverage companies

which manufactures, markets and sells

its products worldwide – their

eCommerce directive is to provide one

face to customers for all trade programs,

transactions, & information

Challenge

Results

Solution

Customer Profile

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Growth & success may be impacted by IT limitations. Ask yourself…

• Are you dealing with a shortage of capital budget and skilled staff to invest in or to manage B2B file transfer infrastructure and activity?

• Does IT struggle to meet the demands for enrolling and on-boarding new partners?

• Do limitations in your existing infrastructure/systems or processes drive the addition of new file transfer point solutions?

• Do you struggle with the costs for IT to manage and troubleshoot data exchange activity with partners?

Bottom line:A cloud service for file-based business interaction allows you to respond to business demands without the capital expense of on premise software or operational impact on your IT staff.

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There is opportunity in moving B2B transfers to the Cloud


complexity as the “biggest”

issue with respect to

supporting B2B file

transactions

95%Senior IT managers

anticipating significant growth in file sizes and file volumes

79%Companies planning

to evaluate the use

of cloud-based

services for file

transfer

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The benefits of moving B2B transfers to the Cloud...

• Complexity : Free up internal IT resources by: – Consolidating redundant file transfer software & partner

connections to the cloud– Offloading the responsibilities for managing your B2B file

transfer environment to IBM experts

• Costs : Lower operational & infrastructure costs by:– Deploying a cloud solution as an alternative to capital

investments in software & infrastructure– Reducing the time to enroll and add new partners– Offloading partner setup and support activities to IBM

• Growth : Support the ability for IT to respond to the organizations file transfer needs without:

– Compromising performance of the business– Capital expense in new software & infrastructure

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IBM® Managed File Transfer Solution

Monitor file transfer activity & SLAsIBM® Sterling Control Center

B2B Onboarding and file transfer via mailboxing

IBM® Sterling File Gateway

Preventing unauthorized accessIBM® Sterling Secure Proxy

IBM® Sterling Connect:Direct®Secure Plus

Peer-to-peer file transfers via file system

IBM® Sterling Connect:Direct®

Replace or upgrade FTP IBM® Sterling Connect:Direct® with FTP+

File transfer via messagingIBM® WebSphere MQ File Transfer Edition

Cloud service for B2B file exchangeIBM® Sterling File Transfer Service

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IBM® Sterling File Transfer Service


GB+

A Cloud service for file-based interactions with B2B partners

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• A cloud service for file based business interactions with trading partners

• What it does– One-to-many connectivity for file transfers with partners

– Automates and processes inbound and outbound files in the cloud

– Supports broad trading partner requirements for format, protocol, and file size

– Manages your partners and their connections with IBM skilled personnel

• How it is delivered– As-a-Service – Through IBM® Sterling B2B Cloud Services– All Partner setup and support services performed by IBM’s skilled personnel

– On-line real-time visibility & reporting through IBM® Sterling InFlight Data Management

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• What it allows customers to do– Create a single, secure, reliable connection to reach partners without capital expenses– Minimize the need for unique on-premise B2B file transfer software solutions– Meet the growth in demand for B2B file transfer activity more quickly– Minimize the need for on-premise staff to manage and monitor B2B file transfer activity– Gain visibility and governance oversight of all B2B file activity

• How do I know I need it?– Shortage of capital budget & skilled staff to invest in, or to manage B2B file transfer

infrastructure & activity– High volume of unmanaged and highly unsecure data is exchanged– Costs to manage and troubleshoot data exchange activity are too high– Onboarding trading partners takes too long and delays revenue opportunities– Limitations in existing systems/processes drive the addition of new file transfer solutions

• Adding new servers, software, & connections

• What differentiates IBM?– Proven – “Dial tone” reliable B2B Cloud Services infrastructure built with the 30+ year

pedigree of IBM’s (legacy IBM Sterling) market leading B2B & MFT software– Expertise – Skilled professionals to optimize your B2B file transfer operations– Portfolio – Compliments IBM’s market leading MFT software & B2B Cloud Services

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The IBM® Sterling File Transfer Service value opportunity

• Reduce IT operational and infrastructure costs – Secure cloud-based file transfers reduce capital expenses in software and

infrastructure and offload partner setup and support activities to IBM’s skilled professionals

• Simplify B2B file transfer processes – Consolidate redundant file transfer servers, software, and partner connections

and leverage IBM’s expertise and experience to optimize the delivery of B2B file transfers

• Grow your business – Leverage our cloud based, scalable B2B file transfer infrastructure and support

services to respond to business demand

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Remediate your FTP risk-overcome the risks to critical

business processes and data

security

®


Large US Bank improves security and compliance for legacy FTP processes

� Required higher levels of file transfer reliability and

ensure data security for existing FTP processes

� No end-to-end visibility for monitoring the FTP

environment and manual process for SLA management

� IBM® Sterling Managed File Transfer offers a secure file

exchange solution permitting this bank to upgrade their

FTP processes and provide the levels of visibility and

management FTP lacks

� Protected the brand and maintained regulatory

compliance - Transformed FTP environment to a fully

managed, secure, auditable environment

� Improved customer growth and retention - improved

transactional visibility with server monitoring, process

alerting, & SLA management

One of the oldest financial institutions in

the US – delivering investment banking,

financial services for consumers, small

business and commercial banking,

financial transaction processing, asset

management and private equity.

Challenge

Results

Solution

Customer Profile

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Is the highly prevalent usage of FTP impacting your business?

• Failed security audits, and inability to meet new regulations?• Resource constraints make it difficult to grow the number of

connections and achieve needed level of SLA’s?• Unreliable and Inefficient transactional processes?• Lack of actionable visibility?• Lack of integration and automation multiplies the manual process

steps?• Inability to handle growing file sizes and volumes?

Bottom line:Only IBM offers options to upgrade, replace, consolidate, and/or offload your at-risk FTP processes in alignment with your overall strategy for managing business critical data movement.

®


There is opportunity in remediating at-risk FTP

8%of FTP transfers fail

$6.75 millionAverage cost of a security breach in 2009

60%of integration is still

conducted using files

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The benefits of remediating the FTP risk...

• Security : Reduce the security risk of file based transfers

– Average cost of data breach $6.65M– Remove penalties for non-compliance– Reduce the cost of dedicated lines by safely leveraging

the internet

• Reliability : Lower the cost of dealing with exceptions– MFT .0003% exception rate* vs. FTP 8% exception rate

• Visibility : reduce time spent finding and fixing errors, and miss fewer SLA’s

– IBM Sterling study shows a 25% reduction in time spent researching and remediating failures*

– Reduce penalties for missed SLA’s

• Automation : Lower timeframes to setup and maintain connections

– IBM Sterling study documents a reduction of on boarding costs by 39%*

– One customer reduced on boarding timeframes from weeks to days

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IBM® Sterling Managed File Transfer Solution

Security and Governance

B2B Managed File Transfer

A2A Managed File Transfer

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®




Achieve operational excellence

in MFT- Reduce interruptions of

key business processes

®


Large health service company improves performance for their MFT processes

� Required higher levels of file transfer reliability to

support the business

� No end-to-end visibility for monitoring / management

� IBM® Sterling Control Center provides auditability,

monitoring and management to improve operational

excellence for key business processes like claims

� “IBM Sterling Control Center is giving us key insight into

management questions like: ‘Who is using file transfer?’,

‘How many transfers?’, ‘How much data?’ and ‘How

many failures?’”

A global health service company,

dedicated to helping the people improve

their health, well-being and sense of

security

Challenge

Results

Solution

Customer Profile

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How “ Managed ” is your file transfer?

• Auditability� Do you have difficulty in proving compliance to business and regulatory

audit requirements with a high degree of confidence and a low resource expenditure?

• Monitoring� Are you unable to provide, or track, file transfer SLAs or chargeback

metrics for Lines of Business (LOB) or customers?

• Management� Can you manage growth in a way that balances business requirements,

cost controls, and accelerating deployment times?

Bottom line:Only IBM offers the operational visibility you need across all file transfers to help you increase the performance of key business processes

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There is opportunity in MFT operational excellence

1Data points referenced in findings from an internal IBM Sterling research study - December 10, 2009

5xFewer errors than

unmanaged servers

90%reductions in

troubleshooting costs

25%reduction in time

spent researching

and remediating

failures

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The benefits of operational excellence...

• Improve operational efficiencies:– Fewer resources are required to support MFT because of

centralized consoles, reduced platform-specific skill requirements, and management by exception

• Reduce interruptions of key business processes:– Proactive monitoring and notifications provides an early

warning system for key file transfers and business processes, ensuring you can respond to issues before they become critical

• Increase compliance to audit requests:– Centralized data that is easily accessible requires fewer

time and resources to respond positively, and with a high degree of confidence

• Support growth plans for the business:– Tools enable and accelerate consistent and compliant

rollout of managed file transfer capabilities

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IBM® Sterling Managed File Transfer Solutions

Security and Governance

B2B Managed File Transfer

A2A Managed File Transfer

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b2b and smarter commerce - ibm · © 2011 ibm corporation b2b and smarter commerce ronald reuten ®...

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