Drivers, Options, and Strategies Simplify and Accelerate e-business Integration

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1 Modernizing EDI Drivers, Options, and Strategies Simplify and Accelerate e-business Integration

2 EDI Modernization Business Drivers Slow onboarding of new customers and vendors Lost revenue opportunities due to missing capabilities Expensive manual transactions with small / offshore partners Inability to meet customer SLAs Processing and shipping errors Poor vendor scorecard rankings Replacement or major upgrade to ERP or other enterprise applications New Cloud-based Software-as-a-Service applications

3 EDI Modernization IT Drivers Outgrown and limited, small-business EDI solutions Inability to keep pace with onboarding and maintenance backlogs Licensing and maintenance costs for multiple middleware systems Staffing and training costs for multiple middleware systems Core application and computing platform migrations Limited staff and resources Tight, often unrealistic deadlines

4 Key Issues What is modern EDI and why is it important? What factors should you consider in EDI modernization planning? What sourcing, deployment, and licensing options should you think about? How can you get from here to there? 4

5 Profile: EXTOL International Developer and marketer of business integration middleware, tools, and services since Customers in Transportation, Logistics, Distribution, CPG, Food, Apparel, Industrial Manufacturing, Health Care, Pharmaceuticals Customer project categories: EDI and other Business-to-Business integration Internal data and application integration Cloud services integration How we re different: One solution for all integration needs Faster, simpler implementation Licensing and services flexibility 5

6 Representative EXTOL Customers 6

7 Key Issues What is modern EDI and why is it important? What factors should you consider in EDI modernization planning? What sourcing, deployment, and licensing options should you think about? How can you get from here to there? Simplify and Accelerate e-business Integration

8 Classic vs. Modern EDI Classic EDI: Standard electronic document syntax and semantics Mix of communications over VANs and direct connections Programmed integration with applications and data Asynchronous, batch-oriented interactions IT-dependent, forensic daily management and reporting Isolation from other integration activities Modern EDI: Diverse range of standard and proprietary electronic documents Mix of point-to-point, VAN, and mediated communications over the Internet Configured, plug-in integration, aided by intelligent automation Mix of asynchronous batch and synchronous, near real-time interactions Management by exception via dashboards, alerts, self-serve reporting Part of a larger framework that includes data, application, and cloud integration 8

9 Modern EDI Common Integration Services EDI Integration Nonstandard B2Bi Application Integration Enterprise Integration Cloud Service Integration System Management Mediation Services (activation, (de-)enveloping, message routing, etc.) Process Automation (state management, task execution, logging, notifications, etc.) Transformation (validation, translation, enrichment, data-driven routing, etc.) Connection Services (Applications, DBMSs, file system, S/FTP/S, AS2, , etc.) Business Activity Monitoring 9

10 EDI Modernization Benefits Automation of integration with partners using non-standard documents Support for application, data, and cloud service integration Support for tighter processing windows and stricter service levels Single point of monitoring and management for all interfaces Reduced cost and faster response through management by exception Faster application and data integration, without specialized skills

11 Key Issues What is EDI modernization and why is it important? What factors should you consider in EDI modernization planning? What sourcing, deployment, and licensing options should you think about? How can you get from here to there? Simplify and Accelerate e-business Integration

12 What Do You Need to Integrate? External Endpoints Customers / Suppliers / Service Providers Cloud/SaaS Applications & Services EDI XML </> Spreadsheet Flat File Web Service App- Specific base ERP WMS In-house Developed Other Operational Warehouse Business Intelligence Enterprise Applications Enterprise On-premise Endpoints 12

13 How Do You Want to Implement? External Locations, Partners, and Services Customers / Suppliers / Service Providers Cloud/SaaS Applications & Services EDI XML </> Spreadsheet Flat File Web Service App- Specific base EDI Translator XML Transformation Engine Spreadsheet Parser Flat File Transformation Tool Web Service Toolkit Application- Specific Toolkits Integration Tools ERP WMS In-house Developed Other Operational Warehouse Business Intelligence Enterprise Applications Enterprise On-premise Applications, Services, and 13

14 How Do You Want to Implement? External Locations, Partners, and Services Customers / Suppliers / Service Providers Cloud/SaaS Applications & Services EDI XML </> Spreadsheet Flat File Web Service App- Specific base Modern EDI Integration Middleware (Any-to-Any Integration) Programmed Integration: Multiple skill sets required Longer time to production Less maintainable Higher Lifecycle Costs VS Reusable Object Modeling: One skill set for all cases Faster time to production More Maintainable Lower Lifecycle Costs ERP WMS In-house Developed Other Operational Warehouse Business Intelligence Enterprise Applications Enterprise On-premise Applications, Services, and 14

15 How Do You Want to Provision? External Endpoints Customers / Suppliers / Service Providers Cloud/SaaS Applications & Services Partner-facing Integration Colocated / On-Cloud Integration Middleware Last mile integration with on-premise applications and data On-Premise Integration Middleware ERP WMS In-house Developed Other Operational Warehouse Business Intelligence Enterprise Applications Enterprise On-premise Endpoints 15

16 What Lifecycle Processes Do You Want to Own? External Endpoints Integration Lifecycle Processes: Customers / Suppliers / Service Providers Provisioning Implementation Monitoring / Operations Maintenance / Upgrades Colocated / On-Cloud Integration Middleware Cloud/SaaS Applications & Services Integration as a Service Internal IT Staff On-Premise Integration Middleware ERP WMS In-house Developed Other Operational Warehouse Business Intelligence Enterprise Applications Enterprise On-premise Endpoints

17 Key Issues What is EDI modernization and why is it important? What factors should you consider in EDI modernization planning? What sourcing, deployment, and licensing options should you think about? How can you get from here to there? Simplify and Accelerate e-business Integration

18 Option 1a: Self-managed, On-premise Integration Using Application-independent Middleware Best Fit for: Multiple integration requirements Partner- specific integration needs Best- of- breed application strategy External Partners External Applications Integration Middleware End- to- End Integration Internal IT Staff On-premise Applications Enterprise Copyright 2013 EXTOL International, Inc.

19 Option 1b: On-premise Integration as a Service Using Application-independent Middleware Best Fit for: (Same as Option 1 a, plus: ) Small / non- existent IT staffs Temporary project assistance Staff augmentation Integration as a Service External Partners External Applications Integration Middleware End- to- End Integration Internal IT Staff On-premise Applications Enterprise Copyright 2013 EXTOL International, Inc.

20 Option 2: Self-managed, On-premise Integration Using Application-specific Middleware Best Fit for: Standard B2B integration cases Homogeneous application environment Long- term application vendor commitment External Partners External Applications Internal IT Staff Application-specific Middleware Other Applications Enterprise Copyright 2013 EXTOL International, Inc.

21 Option 3b: Self-managed, On-cloud Integration Using Application-independent Middleware Best Fit for: Partner (B2B) integration Some Cloud application integration cases Seasonal peaks Temporary deployment Testing External Partners Integration Middleware External Applications External integration Integration Middleware Internal and Last mile integration Internal IT Staff On-premise Applications Enterprise Copyright 2013 EXTOL International, Inc.

22 Option 3b: Integration as a Service On-cloud, with On-premise, Last-mile Integration Best Fit for: (Same as Option 3a, plus: ) Small / non- existent IT staffs Staff augmentation Temporary project assistance External Partners Integration Middleware Integration as a Service External Applications External integration Integration Middleware Internal and Last mile integration On-premise Applications Enterprise Copyright 2013 EXTOL International, Inc.

23 Implementation, Deployment, Licensing Summary Key Decisions: Provisioning: On-Premise or On-Cloud Licensing: Perpetual or Subscription Implementation: Self, Outsourced, or Hybrid Operations: Self-managed or Outsourced Take-aways: Ownership of lifecycle processes (implementation, operations, etc.) is largely independent of provisioning approach The main motivations for on-cloud deployment are acquisition, provisioning, and lifecycle preferences, not use case advantages Last-mile integration with on-premise resources is an overlooked requirement for on-cloud integration Copyright 2013 EXTOL International, Inc.

24 Key Issues What is EDI modernization and why is it important? What factors should you consider in EDI modernization planning? What sourcing, deployment, and licensing options should you think about? How can you get from here to there? Simplify and Accelerate e-business Integration

25 Available Modernization Strategies Stabilize legacy system and use modern technology for new and modified integrations, as add / change requirements surface Phase-in modern technology by replacing legacy EDI implementation, partner-by-partner Replace hosted legacy translation with modern technology, followed by replacement of coded last-mile integration in phase 2 Replace legacy system with modern technology en masse (sometimes necessary when platform changes occur)

26 EDI Modernization Success Factors Middleware and tool support for current and future integration requirements Investing time in inventory, templates, and reuse strategy Generation of integration objects for faster time to production: Partner and document definitions Acknowledgements Adapters Mapping rules Employing vendor services as appropriate to shorten learning curve and reduce time to production

27 EXTOL Simplifies EDI Modernization External Locations, Partners, and Services Customers Suppliers / Service Providers Cloud/SaaS Applications & Services EXTOL Business Integrator Dashboard / Reporting / Activity Monitoring Enterprise Applications Windows / Linux / IBM i / VMware Operational Warehouse Enterprise Business Intelligence On-premise Applications, Services, and 27

28 with Automation, Reuse and Transferable Skills External Locations, Partners, and Services Customers Suppliers / Service Providers Cloud/SaaS Applications & Services Transfor mation Source Adapter Other Task Target Adapter Business Process EXTOL Business Integrator Dashboard / Reporting / Activity Monitoring Enterprise Applications Windows / Linux / IBM i / VMware Operational Warehouse Enterprise Business Intelligence On-premise Applications, Services, and 28

29 Integrate EDI, Apps,, and Cloud with One Solution EXTOL Integration Pattern Repository EXTOL Integration Studio Build Provision Project Generate Document Schemas Create / Generate Mapping Rules Configure Adapters Model Business Processes Configure Mediations Test Consumer Check Customer Inventory Provider Respond with Availability Process Customer Orders Send Order Acknowledgements Generate Invoices Transmit Load Tender Synchronize Item Post sales results Migrate app data Route transactions etc. Deploy EXTOL Business Integrator (EBI) System Management Tools* Mediation Services Business Process Automation Process Execution Transformation Connection Services Business Activity Monitoring Tools* System Services EXTOL Dashboard EBI Server Dashboard Server Repository Server Web Server Supporting Infrastructure* * = Included with product

30 EXTOL Solution Flexibility License Environment Deployment Operations Project Type: Hardware: Staff: Staff: A2A Dedicated Customer Customer B2B Virtual Professional Services Professional Services Shared Shared Cloud Location: All/Mixed Behind the Firewall Professional Services: Managed Services: Hosted Cloud Needs Assessment Day-to-day Operation Syntax: Public Requirements Analysis Day-to-day Monitoring EDI Private Project Planning/Management Technical Support XML Installation/Configuration Training Spreadsheet Operating System: Implementation Custom Projects base Windows Partner Provisioning Emergency Response Programs Flat File Linux Communications Configuration All/Mixed IBM i Testing Performance Analysis/Tuning Payment Terms: System Auditing Purchase Lease Monthly Usage After the initial implementation, you can change your options at any time. 30

31 Thank You! Questions? Website: Phone: +1 (201)

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