B2B Managed Services What Is It and Why Should You Know? Rochelle Cohen, Senior Marketing Manager Jeff Keefer, Director, Managed Services
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1 B2B Managed Services What Is It and Why Should You Know? Rochelle Cohen, Senior Marketing Manager Jeff Keefer, Director, Managed Services
2 Webinar Agenda: B2B Managed Services The B2B Journey What is B2B Managed Services? Why are companies considering this approach? How does this approach address business challenges? How are companies benefiting? What to look for when selecting a provider November 20, 2012 Slide 2
3 One Company s EDI Journey Large Manufacturer with Global Sites & Customers Multiple EDI Providers Multiple EDI service agreements in multiple regions; different onpremise EDI translation software in each region AS1 Connectivity Implementation of onpremise EDIINT AS1 solution to connect business partners securely over SMTP AS2 Connectivity Implementation of onpremise EDIINT AS2 to connect business partners securely over HTTPS B2B Managed Services Move to Managed Services to deal with growing complexity new standards, large files, limited software lifespan Consolidation Consolidation of onpremise regional EDI solutions to one corporate solution On-Premise Gateway Implementation of onpremise B2B gateway Integration Broker B2B Strategy review, purchased B2B Integration Broker technology November 20, 2012 Slide 3
4 In-House B2B Program Environment GXS Managed Services Environment November 20, 2012 Slide 4
5 In-House B2B Program Environment GXS Managed Services Environment November 20, 2012 Slide 5
6 In-House B2B Program Environment GXS Managed Services Environment November 20, 2012 Slide 6
7 In-House B2B Program Environment GXS Managed Services Environment In-House B2B Platform Move Messages Translate Messages Exchange Messages November 20, 2012 Slide 7
8 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 November 20, 2012 Slide 8
9 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting November 20, 2012 Slide 9
10 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting Integration to Backend November 20, 2012 Slide 10
11 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting Integration to Backend Data Quality Assurance November 20, 2012 Slide 11
12 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting Integration to Backend Data Quality Assurance Mapping & Translation November 20, 2012 Slide 12
13 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting Integration to Backend Data Quality Assurance Mapping & Translation Partner Onboarding November 20, 2012 Slide 13
14 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting Integration to Backend Data Quality Assurance Mapping & Translation Partner Onboarding Program Management November 20, 2012 Slide 14
15 More for Your B2B Network & Programs Lifeblood of Your Business B2B Platform High Availability 24X7 End-to-End Visibility & Alerting Integration to Backend Data Quality Assurance Mapping & Translation Partner Onboarding Program Management 24X7 Global Support November 20, 2012 Slide 15
16 B2B e-commerce is... Costly Complex Continuous November 20, 2012 Slide 16
17 B2B e-commerce is... Costly Perpetual Maintenance Fees Rapidly Growing Storage Footprint Labor-Intensive Increasingly Customized November 20, 2012 Slide 17
18 B2B e-commerce is... Enterprise Integration Complex Very Large File Transfer EU Invoicing Regulations Multilingual Support Unique customer requirements by market November 20, 2012 Slide 18
19 B2B e-commerce is... ERP Upgrades Continuous Dynamic Partner Community Post M&A Consolidation New B2B Standards; New Document Types November 20, 2012 Slide 19
20 B2B e-commerce is... 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 Unique customer requirements by market ERP Upgrades Dynamic Partner Community Post M&A Consolidation New B2B Standards; New Document Types November 20, 2012 Slide 20
21 Challenges Multiply in an Increasing Global Reality Regions Supported Trading Partners Project Requests November 20, 2012 Slide 21
22 Challenges Multiply in an Increasing Global Reality Regions Supported Trading Partners Project Requests Companies like yours are expected to achieve more and more each year, even though budgets remain the same or become smaller. November 20, 2012 Slide 22
23 B2B Managed Services A Better Approach for Better B2B Execution November 20, 2012 Slide 23
24 Large and Growing Market Adoption Reported by Analysts Source: Gartner "Market Trends: Multienterprise/B2B Infrastructure Market, Worldwide, , 1Q11 Update" 10 Feb November 20, 2012 Slide 24
25 Large and Growing Market Adoption Proven at GXS Proven at GXS New MS Projects at GXS estimate 450% growth in projects Source: Gartner "Market Trends: Multienterprise/B2B Infrastructure Market, Worldwide, , 1Q11 Update" 10 Feb November 20, 2012 Slide 25
26 B2B Managed Services What is it? November 20, 2012 Slide 26
27 Definition: b 2 b man aged ser vic es A business-to-business (B2B) outsourcing service that provides the expertise, technical infrastructure, and program management to deliver a B2B electronic commerce solution that meets your company s current and future needs. November 20, 2012 Slide 27
28 B2B Managed Services Offload all Day-to-Day Operations to Trusted Partner 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/business partner support November 20, 2012 Slide 28
29 B2B Managed Services Offload all Day-to-Day Operations to Trusted Partner Outsourcing of the environment using GXS and passing on a good part of the responsibility for operating the system to a partner will allow the IT and Customer Services teams at Unilever to focus more on activities that effectively allow it to increase its competitiveness on the market. Source: IDC Opinion - Outsourcing of Unilever Brazil s corporate (B2B) e-commerce environment to GXS, February, 2011 November 20, 2012 Slide 29
30 B2B Managed Services Why are companies considering this approach? November 20, 2012 Slide 30
31 Key Business Challenges ERP Projects Customer Integration Consolidation/ Standardization New Markets/ Channels Modernization (Technology Refresh) Cost Reduction Workforce Optimization November 20, 2012 Slide 31
32 Polling Question What is driving your interest in Managed Services? a. ERP Projects b. Customer Integration c. Consolidation and Standardization d. New Markets/Channels e. Modernization (Technology Refresh) f. Cost Reduction g. Workforce Optimization November 20, 2012 Slide 32
33 ERP Projects How to Maximize Your Investments in ERP Business Impact: Changes to ERP data structure require changes to your B2B program Potential ERP project delays and B2B program backlog Data error rates impact bottom line 1/3 of data in an ERP system originates outside the business Benefits of B2B Managed Services: Shifting B2B operations to 3rd party enables you to focus limited internal resources on ERP project Business rules enable an ERP firewall to ensure data quality & compliance November 20, 2012 Slide 33
34 Customer Integration Challenges How to Become Easier to Do Business With Business Impact: Inability to meet customer integration requirements can result in: - Customer implementation backlog - Poor customer satisfaction - Delayed/lost revenue Benefits of B2B Managed Services: Support for a wide variety of customer integration requirements Scalable expert B2B resources - Access ready community of global trading partners - Quickly onboard new customers -- globally November 20, 2012 Slide 34
35 Consolidation and Standardization Mergers & Acquisitions Result in Disparate B2B Environments Business Impact: Redundant, costly B2B platforms Large personnel investment Limited supply chain visibility Inefficiency due to duplicative B2B processes Benefits of B2B Managed Services: Economy of scale associated with cloud-based solution (infrastructure and personnel) Eliminate disparate systems End-to-end transaction visibility Consistent B2B process across regions and business units November 20, 2012 Slide 35
36 New Markets/Channels Rapid Expansion into New Markets & Channels Business Impact: Lack of local B2B resources impede automation with desired new business partners - Expansion failures - Missed sales/revenue opportunities Benefits of B2B Managed Services: Instant global footprint of resources with B2B skills and knowledge - Cross cultural competencies - Multi- language support November 20, 2012 Slide 36
37 Modernization (Technology Refresh) How to Modernize without Increasing Costs or Risk Business Impact: High cost to support technology refresh Inability to meet partner requirements and business objectives Lack of capacity to scale Benefits of B2B Managed Services: Immediate and future cost avoidance - Lower capital expenditure - Immediate access to latest technologies Feature/function-rich cloud-based service Highly available, scalable service November 20, 2012 Slide 37
38 Workforce Optimization Can Your IT Resources Keep Up with Continuous B2B Change & Advances?? Business Impact: Skills shortage, high costs to train/retrain - Critical B2B project delays e.g., increased supply chain automation - Growing backlog of partner automation - Poor customer satisfaction, delayed IT projects Benefits of B2B Managed Services: Access skills you need, when you need them - Gain B2B specialists/expertise as an extension to your team - Improve productivity - Meet deadlines November 20, 2012 Slide 38
39 B2B Managed Services How are companies benefiting, and why should my organization be considering it? November 20, 2012 Slide 39
40 Leading Consumer Goods Company Customer Case Study GXS Managed Services Business Challenges: Consolidation & Standardization Modernization Cost Reduction Customer Satisfaction November 20, 2012 Slide 40
41 Leading Consumer Goods Company Customer Case Study GXS Managed Services Solution: Consolidate and Outsource Consolidation provided single global EDI program Technology refresh reduced capital expense Reduced on-going operational expense for running B2B programs November 20, 2012 Slide 41
42 Polling Question What are your plans for Managed Services? a. Already implemented with one or more projects b. Currently implementing with one or more projects c. Considering a project next quarter d. Considering a project next year e. Not sure November 20, 2012 Slide 42
43 Selecting a B2B Managed Services Provider KNOW-HOW Experience Time-tested, most customers, brand-name references, migration best practices Global Reach Operations span the globe, 24x7 worldwide multilanguage support, global data centers, Global Centers of Excellence Leadership and Innovation Analyst-validated, top segment share PROCESSES Quality & Reliability Quarterly SSAE16, PCI, ITIL, designated Program Managers, proactive BAM, HA/DR investment Community Collaboration Proven onboarding methodology, pre-connected business partners, cross-industry Proven Scale Worldwide customers, processes billions of transactions annually, thousands of maps in production, experienced mappers and project managers TECHNOLOGY High Availability Architecture Cloud-based integration platform, dual-legged environment, limited maintenance windows, disaster recovery multi-data center fail-over Flexibility and Visibility Multiple ways to connect, e.g. web forms, Excel, ERP; IT and Business views of transaction flows PEOPLE ERP Integration Competence SAP-certified, Oracle experience, any-to-any data mapping Managed Services Focus % of revenues, services investments, commitment to success November 20, 2012 Slide 43
44 Questions? November 20, 2012 Slide 44
45 More resources for you Webinar Presentation: Recording Slides (PDF) Transcript B2B Managed Services: Vendor Selection Checklist Thought Leadership: All About B2B IDC Opinion: Special Report on Unilever Brazil November 20, 2012 Slide 45
46 Thank You for Your Participation! For More Information GXS Web Sites Phones US: EMEA: ASPAC: Japan: US: , option 3 EMEA: +44 (0) ASPAC: Japan: Presenters: Rochelle.Cohen@GXS.com Jeff.Keefer@GXS.com November 20, 2012 Slide 46
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