Discover how and why file transfer is changing

Discover how and why file transfer is changing Why you should think of it as more than FTP 1 2013 IBM Corporation

Agenda What is Smarter Commerce? What is the role of B2B integration? What is MFT? Problems with current approaches IBM solution 2 2013 IBM Corporation

We have entered the age of the empowered customer 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 Customer expectations of service, price and delivery are soaring This is changing the entire way products are sourced, manufactured and distributed and making business more complex than ever 250 million Number of tweets sent via Twitter each day 75% Percentage of people who believe companies don t tell the truth in advertisements $93 billion Amount in sales missed due to out of stock inventory 3 Sources:, Techcrunch Oct 2011, Yankelovich, Evolution of Advertising and Media, 5 th Annual Store Systems Study, IHL Group and RIS News, 2008

These disruptive forces ripple from the customer through the enterprise and across entire industries Individuals The connected consumer The networked workforce The empowered citizen The consumer is using new channels to perceive value, and associated pricing implications. Consumer Products CEO, United States Enterprises Evolved business models Optimized digital operations Connected enterprise Industries Value migration Value chain redefinition Fragmentation 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 4 Source: IBV Analysis

Power has shifted compressing margins and changing paradigms In this new era, businesses need to: Understand and predict customer behavior and needs based on customer insights across all channels Synchronize interactions across the value chain needed to deliver their product or service Service customers flawlessly, predict and drive customer loyalty Adapt sourcing and procurement based on customer demand Market, sell and fulfill the right product and service at the right price, time and place 5

We call the path forward Smarter Commerce Places the customer at the center Maximizes insight Capitalizes on social and mobile Drives growth Synchronizes your entire value chain Increases margins Improves collaboration and visibility 6

Agenda What is Smarter Commerce? What is the role of B2B integration? What is MFT? Problems with current approaches IBM solution 7

Market Insight Customer experience Smarter Commerce helps you create a brand promise

and a synchronized value chain to fulfill the promise

While Smarter Commerce starts with customer insight, execution depends on synchronization of your value chain Systems/technology The commerce systems that drive buy-market-sellservice must better integrate with partners 68% of executives report that integration challenges impede collaborative relationships with partners Processes Demand and supply need better interlocks to deliver the right product/service $93 billion in sales missed due to out of stock inventory per year People Actionable visibility is needed to better respond to the customer 70% of supply chain officers say that lack of visibility has a significant impact on supply chains 10

Achieving value chain synchronization requires Connectivity regardless of protocol, format or standard Automation of inefficient, error prone, manual business processes Security, governance and control over all exchanges Simplified business community enablement and management Real time visibility into information exchanges

To produce some significant outcomes Reduce the time-to-benefit from new customers, suppliers and partners Reduce security exposure from data exchange Remove latency and cost from the value chain Become easier to do business with Speeding resolution of issues and increase customer satisfaction 12

IBM B2B Integration delivers the solutions to synchronize your extended business community B2B integration addresses complex integration challenges to synchronize the value chain of partners, suppliers and customers Managed File Transfer Integration Services Integration Gateways Transformation Engines Secure, reliable file transfer connects systems Flexible cloud technologies and expert services host business communities Orchestration and automation for key partner processes Single, universal engine for all internal and external file and message transformation needs The IBM difference Secure protocol has never been breached Global network of 300,000 pre-connected trading entities Unmatched scalability/ performance to solve the most complex scenarios Leader in transformation capabilities across EDI and Industry standards 13

Agenda What is Smarter Commerce? What is the role of B2B integration? What is MFT? Problems with current approaches IBM solution 14

File Transfer is very similar to the package delivery business Size Timeframe Cost Logistics How I decide to move the package depends on many things including what is in the box

Managed File Transfer (MFT) matters because of what is in the box System-centric Originator/Destination Retailer to third party processor Payload Credit card transactions Community-centric Person-centric Manufacturer to suppliers Corporate customers to banks Individual users collaborating with inside/outside individuals Orders, Forecast, Design Payments, lockbox, treasury Legal briefs, marketing proofs, customer lists, support logs 55% of system integrations (both internal & external) are accomplished via files Source: Synchronize the Value Chain Research Study, Vanson Bourne, February 2012 16

In every organization file transfers support key Processes Supply chain synchronization Credit card clearing Projects SAP integration with web store front Outsourcing payroll Policies Certification of application interfaces governed by SOX Polices PCI compliance for securing credit card data... People interactions Design documents with outside agencies Legal briefs with outside council 17

Agenda What is Smarter Commerce? What is the role of B2B integration? What is MFT? Problems with current approaches IBM solution 18

Today most people are using FTP which has issues Security Username/password in the clear Operating System level credentials FTP servers at risk in DMZ Numerous security vulnerabilities Add-on required for encryption (SSH) Reliability Documented error rates at 6.47% average Add-on required for checkpoint restart Visibility Troubleshooting is searching through log files No central management requires manually touching every server Automation Requires manual scripting for things like; End-of-file check, watch directory, zipping SSH only addresses

And the case for remediating FTP remains compelling 6.47% In the context of transfers that use the FTP protocol, what percentage would you estimate do not complete successfully? (average response) 28 min. What do you estimate is the average time it takes to troubleshoot and resolve an FTP file transfer error? (average response) Total # FTP Transfers X 28 6.47% X min. = $$$ 20 2013 Vanson Bourne B2B Integration and MFT Global Study for IBM.

Research show the top concerns for file transfer remain predictable Which of the following issues limits the effectiveness of your file transfer systems? 21 2013 Vanson Bourne B2B Integration and MFT Global Study

Agenda What is Smarter Commerce? What is the role of B2B integration? What is MFT? Problems with current approaches IBM solution 22

IBM Managed File Transfer enables enterprises to reliably and securely govern the critical information flows that run their businesses Governance Actionable visibility for business, operations and compliance System-centric Community-centric Person-centric Emerging use cases Automated, reliable, secure transfers for system integration Multi-protocol edge gateway for universal connectivity to the business community Simplified transfers built for non-it users reduce the email attachment risk Extreme Intelligent Cloud Security Common perimeter services, proxy, authentication 23

IBM MFT suite - products Governance System-centric Product IBM Sterling Control Center, IBM Business Monitor IBM Sterling Connect:Direct IBM MQ MFT (FTE) Deployment On Premise with web and mobile access On Premise with broad platform support Community-centric IBM Sterling File Gateway IBM File Transfer Service On Premise Cloud managed service Person-centric IBM Sterling myfilegateway IBM QuickFile On Premise Software appliance Security IBM Sterling Secure Proxy On Premise 24

IBM enables a world class Manage File Transfer Center of Excellence Challenge Mandates to encrypt internal FTP transfers Need for better reliability/failover and additional protocols for external transfers Solution Using IBM Sterling Managed File Transfer they built a self-select internal transmission service and matched the business objectives of white glove service for partners. Large US Financial Services Provider Results Simplification, transparency and manageability for the entire file transfer environment Significant voluntary adoption of internal service Significantly reduced the number of ID s under management for file transfer (started with over 10,000) Customer Profile Top ten provider of Insurance, Investment and Retirement financial services. 25

There is change in file transfer workloads 29% 41% System centric transfers: automated, secure transfers for system-to-system integration Community centric transfers: transfers that link your business community to your organization 30% Person centric transfers: transfers between people inside and outside your company Please give an estimation of the volume (number) of transfers in the following categories by allocating 100% between the following options: 26 2013 Vanson Bourne B2B Integration and MFT Global Study 2013 IBM Corporation

IBM MFT suite - products Governance System-centric Product IBM Sterling Control Center, IBM Business Monitor IBM Sterling Connect:Direct IBM MQ MFT (FTE) Deployment On Premise with web and mobile access On Premise with broad platform support Community-centric IBM Sterling File Gateway IBM File Transfer Service On Premise Cloud managed service Person-centric IBM Sterling myfilegateway IBM QuickFile On Premise Software appliance Security IBM Sterling Secure Proxy On Premise 27

IBM Sterling File Gateway An Edge based application for exchanging data between partners, customers, suppliers and employees What it does Provides a centralized file gateway for processing inbound and outbound files Supports any format, any protocol, any size B2B file transfer Enables the transformation of files to optimize data delivery processes How it is delivered Application layer built on a B2B integration gateway Mail box services and communication adapters Partner portal (myfilegateway) for self service

IBM Sterling File Gateway What it allows customers to do Consolidate disparate centers of file transfer activity to a central gateway Minimize the risk and steps required to transform and process data Gain visibility and governance oversight of data exchange activity Accelerate trading partner onboarding regardless of system or protocol How do I know I need it? Costs to manage and troubleshoot data exchange activity are too high Onboarding trading partners takes too long and delays revenue opportunities Lots of unmanaged and highly unsecure data is being exchanged What differentiates IBM Sterling? Unmatched scalability and performance to support the largest enterprises Using business rules and file content to intelligently transform and route data A single B2B integration platform to enable Edge based data exchanges

IBM Sterling File Gateway value opportunity Reduce onboarding costs IBM Sterling customers reduced onboarding costs by 39% by deploying IBM Sterling File Gateway* Reduce exception handling costs IBM Sterling customers reduced exception handling costs by 65% by deploying IBM Sterling File Gateway* Improve customer satisfaction Trading partners can initiate and monitor data exchange activity Minimize the risk, reliability and performance concerns of Edge data exchanges Never having to say No to an onboarding request 1 Data points referenced in this presentation represent findings from an internal IBM Sterling research study - December 10, 2009

IBM Managed File Transfer enables enterprises to reliably and securely govern the critical information flows that run their businesses 2013 IBM Corporation

IBM has introduced QuickFile for person centric transfers Today Email w/document attached Email Server With QuickFile Email text w/link File Encrypted Storage 2013 IBM Corporation

IBM Managed File Transfer enables enterprises to reliably and securely govern the critical information flows that run their businesses 2013 IBM Corporation

IBM has grown our visibility solution Business visibility KPIs, dashboarding, and summary data across solutions that lets those in key business roles understand what is happening and how it impacts them. Offers advanced correlation of multistep transfers that support important business processes. Business Monitor Business Users Operational visibility Consolidation of MFT events, a rules engine that can evaluate events, and ability to take action like sending notifications or signaling alerts on a display. This gives centralized operations teams the ability to quickly identify and deal with problems before they impact key SLAs and also to easily respond to audit requests Sterling Control Center Other Non IBM IBM Solutions Solutions MFT Operational Users Track and trace Log file based event records that can be sorted through to see what has happened. Connect:Direct File Gateway FTP Servers MQ MFT (FTE) QuickFile 2013 IBM Corporation

IBM is expanding our vision for MFT Broad support for file-based integration use cases regardless of platform, device, or transport Ability to deliver any file to the right place at the right time, with the right priority and speed of delivery Modern, consumer-style tools with the addition of robust enterprise-quality controls Common Governance, Visibility, and Management across disparate components without the need for rip-and-replace actions Real-time, end-to-end status and audit trail of data movement views for both IT and business users Enhanced business collaboration and file transfer for both on-premise, cloud, and hybrid deployments 2013 IBM Corporation

Is file transfer important in your organization? What s in the box? Who cares when it doesn t get there? 36 2013 IBM Corporation