1. Small Business EDI IntegrationIntegrating EDI for users of small business accounting and ERP software The promise of EDI integration has always been alluring, but financially out of reach for the small business owner. With over 80% of data integration projects failing, small businesses have had reason to shy away - until now.119 9 N A S A P a r k w a y < H o u s t o n , Tex a s 7 7 0 5 8 < t e l : 2 8 1. 4 8 0 .1121 < f a x : 2 8 1. 218 . 4 8 10 < s a l e s @ d i c e n t r a l . c o m < w w w. d i c e n t r a l . c o m

2. Introduction The need for EDI to ERP integra- integrationEDI adoption often happens in stages. The vast majorityof small businesses are forced into adopting EDI by a largetion is vitalAs a small business,retailer. This mandate brings the small business into anOver 50% of medium-sizedunderstanding why inte-often confusing and technically difficult world where the businesses will have ERPgration makes sensepromised financial benefits of paper-less transactionssystems in-house by the is the first step. EDIcan be difficult to quantify and even more difficult to real- end of this year. With key- integration has beenize. This is phase one of EDI adoption and is often char- ing errors responsible forsuccessfully implement-acterized by manual processes. As the business grows, itthousands of dollars in costs,ed in large, Fortune 500invariably enters Phase 2 of EDI adoption. In this growthintegrating ERP and EDI isorganizations for manyphase the small business begins to process more andmission critical. years with concrete,more EDI transactions and begins to realize that a critical measurable returns ondeficiency exists in the receiving of EDI data from custom- investment. The surpris-ers, printing that EDI data in the form of reports and re-ing part for most smallkeying that EDI data into the in-house accounting or ERPbusinesses is that EDI integration can make a significantsystem by employees dedicated to this task. positive impact even at low revenue numbers. This is dueto two key factors that every small business that does notuse integration must deal with every day. SCM ENTERPRISE 1. Human beings Expandedmake mistakes Can your software Integration scale? One of the biggest chal-lenges associated with ExpansionSMBAny EDI integration solution doing business with must give you the flexibilitya large retailer is the Mandated EDIto grow from the afford- concept of chargebacks. able requirements you have Large retailers will today to the high transac- charge their vendors forFigure 1: The 5 Phases of EDI Adoption tion requirements you will mistakes in shipments have in the future.received by the retailer.At Phase 3 of EDI adoption the question of data integra-These mistakes are mosttion, specifically EDI integration, becomes a key goal of theoften a direct result ofsmall business. Data integration is a brave new world ofpoor data entry and can run into the tens of thousandsultimate efficiency: increased inventory turns and reducedof dollars per year for a business with an even modestlabor costs that every business aspires to achieve. Theamount of transaction volume. In addition, there are usuallycost savings can be dramatic even for a modest operationfinancial penalties imposed on small businesses by theirthat would ordinarily never consider a data integration solu-larger trading partners these can run into thousands oftion. Realizing this utopia of paperless transaction process-dollars each year.ing, however, is fraught with dangers and has traditionallybeen costly and reserved for the financially wealthy busi-nesses of the world. Whats a small business to do?119 9 N A S A P a r k w a y < H o u s t o n , Tex a s 7 7 0 5 8 < t e l : 2 8 1. 4 8 0 .1121 < f a x : 2 8 1. 218 . 4 8 10 < s a l e s @ d i c e n t r a l . c o m < w w w. d i c e n t r a l . c o m 3. 2. Data entry is expensivetransactions per day (2,600 per year) manual data entrycan quickly add up to large costs in time of people beingManual data entry of orders received by EDI has a directused for manual tasks that could just as easily be handledimpact on the bottom line in the form of hourly wagesby an effective data integration system. At this point thespent on data entry that could otherwise be re-purposed.small business begins to enter the perilous Phase 3 of EDIAt what level does a data entry clerk become unproduc-adoption: data integration. Done properly this stage can CATEGORYCOST help the small business grow and achieve incredible effi- Annual Labor Cost $55,000ciencies, reductions in costs, and improvements in revenueand inventory turns; done badly it can lead to disaster. Daily Labor Cost$211.53 Percentage of day 12.5% (assuming 5 minutes per transactionIntegrating EDI can lead to disaster required to process 10in an 8 hour day) transactions Youve been sold on the concept of integrating your EDIFigure 2data into your in-house accounting system. Youve askedyour IT staff to research available solutions, and thentive due to the volume of orders being received? Figurecomes the shock: the realization that even if you can mus-2 above shows a typical example of the costs associatedter the exorbitant fees to purchase the necessary softwarewith manual data entry. Calculating the baseline cost perto realize your integration needs, your lack of in-housetransaction is relatively straightforward, assuming a dataexpertise might cause the entire project to fail from theentry clerk requires 5 minutes to process each transactionvery beginning. In fact you are not alone: a 2003 report byand that their annual burdened labor cost is $55,000.the Standish Group found that over 88% of data integra-Using the above data we can then calculate the annualtion projects fail, with over half of those being completedcost of manually processing EDI based on the number ofa full 170% over the original budgeted time. These dismaltransactions per year as seen in the graph below. Lookingperformance figures for data integration are attributableat the associated costs of just entering EDI data manu-to key deficiencies from which all business suffer. Smallally it becomes obvious that even with as few as tenDespite clear cost benefits to integrating EDI, most small business dont integrate 70,000$68,750 EDI Transactions per year52,500 Manual Data Entry Costs per year$34,37535,00026,000 $20,625 17,500 13,000$6,875 7,800 2,6000 2004 20052006 2007119 9 N A S A P a r k w a y < H o u s t o n , Tex a s 7 7 0 5 8 < t e l : 2 8 1. 4 8 0 .1121 < f a x : 2 8 1. 218 . 4 8 10 < s a l e s @ d i c e n t r a l . c o m < w w w. d i c e n t r a l . c o m 4. organizations often find that data integration projects failMaking EDI integration easy anddue to three primary reasons: affordable 1. Poor understanding of the business processesWith more than a dozen years of experience successfullycompleting data integration projects for both small andSmall businesses are well known for lack of planning andlarge organizations, DiCentral has carefully considered thisfor working in ad-hoc methods. Its the nature of a small challenge to determine how best to solve it for our custom-business to be reactive instead of proactive. This busi-ers. We have come to understand that data integrationness philosophy, unfortunately, runs completely counter requirements tend to fall into one of three areas:to what is required for proper data integration planning.Before even commencing a data integration project, a1. Large scale data integrationbusiness must understand the processes behind the sys-tems being integrated. How many transactions will needThis is the most obvious area where in-house data inte-to be sustained? What type of growth will the systemgration skill is required and must be performed usingneed to absorb over the next three, five, or ten years? traditional tools and processes. Large-scale data integra-What systems and procedures inside the company will betion typically involves multiple systems (ERP, EDI, CRM,affected? How will the company need to change over time SCM, etc.) and is typically performed by larger companiesto account for integration requirements?that can measure return on investment in years insteadof weeks or months. These projects are fraught with the2. Lack of technical skills and knowledge most danger and require the largest amount of planningand expense. These types of integrations can easily costs The second challenge is one of lack of domain expertise. millions of dollars. Small businesses are experts at their business, not data integration. Often small business owners fail to realize the 2. Continous data integration needs technical complexities involved in data integration: What transaction sets will need to be integrated? Where doesThe second type of project that requires in-house data that data live, inside the ERP or accounting system? Whatintegration expertise as a pre-requisite is when the data file format will be used to transfer the data? How difficult being integrated will be changing on a frequent or regular is the data integration software to use? What will our learn-basis. A typical example might be a supplier whose trad- ing curve be?ing partners change their EDI specifications on a regularbasis or one that expects to make frequent changes to the3. Lack of time and resources in-house systems to which the EDI data is being mapped.These data integration projects are significantly more lim- As a small business having enough people to do the workited in scope but require dedicated personnel who will take required to run the business is difficult enough - after all the time to plan the integration, learn to use the mapping thats why you decided to integrate in the first place, to tools, and make changes over time as required. free up resources - but who will lead the data integration? Is IT properly staffed? How long will it take? How expen-3. Fixed-term, small data integration projects sive will it be? If the data integration company does it for me how much will that cost?This type of integration, once completed, changes at a veryslow pace and will not need modification for a number ofNavigating the maze of data integration is at best a riskyyears. Companies that need this type of EDI integrationproposition. Its for these reasons that a 2003 Standishcan benefit from data integration but are often dissuadedGroup study found that nearly 88% of data integration proj- from doing so because of the associated costs and risksects fail with half of those being stopped before comple- of failure. Until today, this type of business had only twotion and the other half being completed late and at anchoices: maintain the existing manual data entry processesaverage of 173% over the original time estimate.and all their associated inefficiencies, costs and risks, orventure into the equally daunting world of data integrationSo whats a small business to do?and hope for the best. 2010 DiCentral Corporation. All Rights Reserved. All other products, company names or logos are trademarks and/or service marks of their respective owners. v 1 -1/ 12119 9 N A S A P a r k w a y < H o u s t o n , Tex a s 7 7 0 5 8 < t e l : 2 8 1. 4 8 0 .1121 < f a x : 2 8 1. 218 . 4 8 10 < s a l e s @ d i c e n t r a l . c o m < w w w. d i c e n t r a l . c o m 5. Data integration for the small business beginning. You eventually need to send the data to yourtrading partners. DiCentral DiTranslator comes with To resolve the challenge of data integration for the small software for FTP communications with an upgrade path business DiCentral set out to create a new product thatto an AS2 compatible product. could provide data integration without the challenges typically associated with it. We understood that in orderThe peace of mind of knowing that DiCentral is for data integration to succeed for the small business there to support your system. As ERP providers DiCentral would need to take the place of the domain and trading partners change their requirements, our expert. Both the large scale and continuous change software will change with them, giving DiTranslator models of data integration have domain expertise, butcustomers the benefit of a fully supported system this is lacking in the typical small business. As the domain without the worries of in-house maintained data experts we set out to resolve a number of issues:integration projects.EDI data must be mapped from the EDI software to in-An upgrade path to an enterprise-class datahouse ERP and accounting systems. integration platform. Of course businesses grow.With DiTranslator your investment is safe. As yourThe customer should be provided with all of the business grows and your needs for data integrationsoftware needed to get operational quickly and at the grow we will be there by your side, ready to providelowest possible cost. you with tools like DiCentral DiUnite - a powerful any-Because each data integration project has its own to-any data integration platform rated at over 17,000nuances and unique needs, the customers would needtransactions per minute.dedicated help in setting up and configuring the dataAbout DiCentralintegration project. Founded in 2000, today DiCentral is a leading globalAny updates and changes must be made available toinnovator in the EDI (Electronic Data Interchange) industrycustomers quickly and easily.segment. A broad range of Software plus Services solu-With the requirements listed above we offer DiTranslator,tions enables a seamless exchange of data throughout supply chain networks. DiCentrals integration solutionsthe first EDI data integration package for small businesses are scalable to the size, growth, and unique requirementsdesigned around the financial and technical needs of the of each business. In addition, DiCentral develops and mar-small business. DiCentral DiTranslator makes data integra- kets a complementary suite of supply chain applicationstion easy with four key benefits: for retailers and suppliers, including EDI Testing, GlobalA strong, robust EDI package that can handle a Enablement, Web EDI, Managed Services, and more. Visitgrowing business and its EDI needs. DiTranslator http://www.dicentral.com to learn more.provides a reliable EDI platform that can scale from asfew as one transaction per day to as many as thousandsper day.An integration adaptor pre-crafted to map EDItransactional data from DiTranslator to popular ERPand accounting systems. With support for systemslike QuickBooks Pro, Microsoft Dynamics, and manyothers, DiCentral DiTranslator provides the adaptor eachbusiness needs to bring EDI data into their in-housesystem quickly and efficiently.A communications package to help you getstarted with EDI transactions. Translating the dataand bringing it into your in-house system is only the 2010 DiCentral Corporation. All Rights Reserved. All other products, company names or logos are trademarks and/or service marks of their respective owners. v 1 -10 / 10119 9 N A S A P a r k w a yH o u s t o n , Tex a s 7 7 0 5 8t e l : 2 8 1. 4 8 0 .1121f a x : 2 8 1. 218 . 4 8 10s a l e s @ d i c e n t r a l . c o mw w w. d i c e n t r a l . c o m