b2b integration: cr asing your pipeline for in 2h2012 and ...€¦ · process 81% seamless and...

© 2012 IBM Corporation

B2B Integration: INCREASING your pipeline for 2H2012 and beyond

Magnifying the benefits of SAP IntegrationJuly 3, 2012David Heath

© 2011 IBM Corporation2

IBM Sterling Multi Enterprise Collaboration and MFT for SAP

Connect, communicate and collaborate with customers, partners

and suppliers

What is it? Connect, communicate and collaborate with customers, partners and suppliers

Who cares?

Business: Director of Supply Chain, Purchasing, Logistics, Commerce, Sales, Customer

Service

IT: CIO, CTO, VP/Director of IT, Manager of EDI

Why do your customers care?

Cost savings, business efficiencies and revenue growth – Save your customers moneyAverage cost of data breach $6.65M (source: Identity Theft Resource Center)Reduce FTP failure rate by 1% ($2.8m of business cost) KPGM Study - Average cost savings to automate process 81%Seamless and secure integration and automation

of key business processesIDC study shows a 25% reduction in time spent researching and remediating failuresIDC study documents a reduction of on boarding costs by 39%

Why should I care? Here’s a sampling of last years deals. . . Wal-Mart 3.5 Million, State

Farm 1.9 Million, AT&T 15 Million.


SAP Consolidates applications across the enterprise. IBM Sterling consolidates communication across all trading partners – automated and manual - and into SAP.

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How Can IBM Sterling increase your Revenue? How does it help customers with SAP?

IBM Sterling provides the ability to

design, monitor and control complex

business processes that involve many

participants, and to maintain that

visibility and control across firewalls

and continents.

It is a strategy that goes beyond B2B

to offer broader, deeper collaboration

between your company and the

companies you depend on to stay in

business.

While most companies do some

form of B2B today, those that are

moving towards Multi Enterprise

Collaboration are better positioned

to offset the threat of global

competition and capitalize on

growth opportunities.

IBM Sterling provides solutions to automate

trading partners and ties these communications

into SAP, for customers big and small, with

software on premise and/or in the cloud. Our

cloud based offerings provides pre-built

integration for more than 300,000 trading

partners. These solutions drive value by:

• Providing a fast and efficient way to onboard

partners of all sizes and levels of technical

expertise

• Keeping communities synchronized and

current with processes and goals• Mitigating errors and risk to internal

systems

• Helping comply with international

regulations

• Give visibility and control over complex

value chains


Messaging Store-and-ForwardPoint-to-Point Ad Hoc

Enterprise(inside)

Secure, Integrated Infrastructures for Multiprotocol Transports

and Protocol Bridging

Pattern PatternPattern Pattern

SAPVisibility & Intelligence

Business-to- Business(outside)

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For large SAP customers that have one or more solutions in place they can leverage their investment and use our platform to support others (Wal-Mart, 3M, Caterpillar, Home Depot, Heinz, Kraft, McKesson, Daimler, ConAgra, Apple etc.)

For smaller customers without an integration platform in place, we can support all of the integration patterns and front end their SAP environment (Wine Warehouse, Brown Shoe, Ryder, etc.).

Your customers must support multiple integration patters.


IBM Sterling increases the ROI, time-to-market, and security of SAP

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How Can IBM Sterling increase your Revenue? How does it help your customers with SAP?

IBM Sterling solutions do not replace SAP

applications and integration middleware;

rather, they extend the rich capabilities of

SAP into the heterogeneous space

between companies. This means new

revenue for you.

By adding IBM Sterling’s solutions to your

customers SAP environment, you gain

robust protection for your SAP systems

against outside threats - not just malicious

threats - but threats from bad data and

carelessness in regulatory compliance.

SAP doesn’t do EDI natively. The SAP

XI/PI interface normally results in double

mapping into SAP that increases costs and

time for implementation and support costs..

Putting B2BI in front of SAP can make

reduce the risk and cost for SAP

implementations.

Top Reasons SAP Customers Also Implement

IBM Sterling

•Automate and streamline selling processes

with channels and customers

•Reduce the time and costs of integration with

trading partners. Reducing costs and

increasing revenue.

•Reduce security exposure in B2B process

interaction

•Consolidate and simplify B2B architecture and

infrastructure

•Meet customer and government mandates for

B2B process interaction

•Increase B2B process visibility to improve

customer service

•Accelerate new product or service

introduction (Sony)


Make your services more competitive, by automating manual entry into SAP.

Business Document Volume

per Trading Partner

Proportion of your

Business Community

Perceived Onboarding and

Integration Complexity

In-house

Integration Capabilities

LARGE

HIGH

HIGH

LARGESMALL

LOW SMALL

LOW

Tier 1

Tier 2

Tier 3 & 4

Ele

ctr

on

icM

an

ua

l

COMMON MYTH: It is not worth the time, money, or effort to automate business

processes with the those business partners below the red line… Don’t let your

customers pay people to key in data to SAP, when it can be automated. Our

customers see up to 80% savings by automating Faxes, Mail, Email or by

putting manual trading partners on the web.

MID MID MID MID


IBM Confidential

Tie all trading partner interaction into SAP- Even Manual

LegacySystems

SAP

CRM

Supply Chain Visibility

Tier 1 and 2 On-Premise Trading Communities

Suppliers

CustomersChannel Partners Carriers/3PL

Freight Forwarders Customs Brokers

Sterling Collaboration

Network

B2BI

Corporate Applications

Tier 1 and 2 Cloud Trading Communities

Web Forms

Conversion Services

(Fax, Email, Mail)

Tier 3 and 4 Cloud Trading Communities

IBM Sterling “has been one of the most aggressive in

pursuing advanced integration capability during the past

three years — and the results are impressive. IBM Sterling is

best suited for integration in the B2B World” . . . Forester


IBM Sterling increases the ROI, time-to-market, and security of SAP

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How Can IBM Sterling increase your Revenue? How does it help customers with SAP?

Case in Point: Luxottica implemented SAP to

automate its internal workflows. But when the

company wanted to connect to its third-party

logistics company, it ran into trouble. Documents

between the logistics vendor and their SAP system

had to be re-keyed, which slowed inventory

updates. In addition, manual, paper-based

processes kept the company’s globally distributed

warehouse network from promptly fulfilling orders.

The company implemented IBM Sterling with the

following results:

•Inventory updates within the hour, rather than

days later

•Shipment status provided to partners in minutes,

rather than hours

•50 percent decrease in overall B2B

maintenance and support costs

•Fewer delays and faster response times for

greater customer satisfaction and loyalty

What IBM Sterling offers is a

way to plug in ready-made

solutions that are wholly

compatible with SAP

environments, that will remain

compatible as you migrate to

new iterations of SAP, and that

offer rapid return on investment.

The IBM Sterling solution has a

tight integration to SAP that can

pull the SAP document

scheme into our mapper. This

allows a single map, and

automation for that map to drive

down implementation costs,

risks, and support costs.


Increase your value to your clients – Ensuring vendor compliance

PurchaseOrderPurchase

Order

TMSPlanning &

Replenishment Procurement

Plan Supply

Shipment Status

WMS

PaymentInvoiceReceipt

Financials

Supply Chain Management

Logistics

Finance

PO Commit Change Order ASN

The existence of multiple documents across multiple systems, across multiple parts

of the organization, across multiple enterprises creates the need for a solution that

provides one end-to-end view of the Procure to Pay process.

Suppliers don’t deliver the “perfect order”

Are your suppliers sending ASNs on time, so you are left wondering if the order is on its way or not

What % of your orders arrive when originally promised?

What % of orders are received in full? What is the target?

“The application improves

visualization of information and

provides an adaptive supply chain

that allows us to quickly respond

to market changes by automating

business processes and logistics

information.”

Keiichi Yumita

General Manager, Systems

Strategy Sony Supply Chain

Solution, Inc.


How does MFT work with B2B and SAP?

FTP

FTP/S

HTTP

HTTPS

AS2

DMZ Trusted Network

CRM

SAP

ApplicationsExchanges

(e.g., Transora, UCCnet)

Value-Added Networks

Trading Partners

Internet

Gentran Integration SuiteSingle Unified - Service Oriented Architecture

Security

Store & Forward Repository

Any to Any Translation

Business Process Management

Visible Processes / Document Tracking

Dashboard / Audits & Reports

Applications Services

Communications

MFT B2B

EAI, BPM

Perimeter

Server

Secure, Scalable

All Protocols, Standards, Data Formats Single Tunnel to Manage

The ROI’s are different, but complementary. Customers can take a project based approach to an end state solution. DirectTV and Sony Entertainment.

Messaging TechnologyDatabasesLegacy Apps

© 2011 IBM CorporationIBM Confidential11

If FedEx Overnight was cheaper than a stamp, the post office would go out of business. . . That’s what we do for our customers.

B2B Onboarding and file transfer via mailboxingIBM® Sterling File Gateway

Preventing unauthorized accessIBM® Sterling Secure ProxyIBM® Sterling Connect:Direct® Secure Plus

Peer-to-peer file transfers via file systemIBM® Sterling Connect:Direct®

File transfer via messagingIBM® WebSphere MQ File Transfer Edition

Cloud service for B2B file exchangeIBM® Sterling File Transfer Service

Providing a choice of on-premise, cloud, or hybrid solutions that enable enterprises to manage and control the critical information flows that run their dynamic business networks.

Ad-HocAd-Hoc File TransferElectronic Arts and Intel


Options Breakdown Current Year 1 Year 2 Year 3

Option 1

Budget projection w/ current products(increase headcount to support demand and new functionality, increase hardware infrastructure)

Operating Expenses($M) 2.7 4.0 4.5 4.7

Avg Unit Cost Per File with 40% CAGR $0.73 $0.77 $0.63 $0.47

Option 2

Budget projection with IBM MFT SuiteOperating Expenses($M) 3.0 3.4 2.8 2.8

Avg Unit Cost Per File (40% CAGR) $0.82 $0.71 $0.47 $0.33

Example of Project Cost/Benefit Financial Analysis for an IBM MFT Suite Customer

$3.9 million savings – ROI exceeds 100%

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

Current Year 1 Year 2 Year 3

Operation Expenses(000)

Option 1

Option 2


Standardized approach for B2B and internal file transfers will reduce TCO

Reduced staff time identifying, researching & remediating failures

Reduced staff time performing on-boarding

Enable end-to-end file transfer visibility

Operational

Efficiency

Cost

Savings

Revenue

Growth

Risk

Management

Enable DMZ security best practices

Enable regulatory compliance

Enable audit-ability and file transfer governance

Improve high availability and disaster recovery capabilities

Protect the brand from data breach

Increase profit margin by reducing manual operations associated with file transfer monitoring

reduced operations expenses enables more competitive fees expanding market share

Increase revenue and profitability from more efficient and quicker on boarding

Customer retention by being easier to do business with

Eliminate need for continued investment in antiquated/non-strategic infrastructure

Avoid business line programming costs building monitoring tools for FTP jobs

Avoid business operations costs developing customer/file special handling procedures

Reduce cost redundancies from multiple infrastructure solutions

And Delivering Real Business Value – Through MFT

Business Value Framework


QUESTIONS?

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