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© 2011 IBM Corporation
B2B and Smarter CommerceRonald Reuten
®
© 2012 IBM Corporation
We have entered the age of the empowered customer
This is changing
the entire way
products are
sourced,
manufactured and
distributed—and
making business
more complex
than ever.
Customer
expectations of
service, price and
delivery is soaring.
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.
155 millionNumber of tweets sent via Twitter each day
75%Percentage of people who believe companies don’t tell the truth in advertisements
$93 billionAmount in sales missed due to out of stock inventory
Sources: Fortune Magazine, May 2, 2011 Issue, Article Trouble@Twitter, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 2008
®
© 2012 IBM Corporation
These disruptive forces ripple from the customer through the enterprise and across entire industries
Source: IBV Analysis
Individuals
• The connected consumer
• The networked workforce
• The empowered citizen
Industries
• Value migration
• Value chain redefinition
• Fragmentation
Enterprises
• Evolved business models
• Optimized digital operations
• Connected enterprise
“The consumer is using new channels to
perceive value, and associated
pricing implications.“
Consumer Products CEO, United States
"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
®
© 2012 IBM Corporation
At IBM we call the path forward: Smarter Commerce
It drives growth by enhancing,
extending, and redefining the
value you provide
Smarter Commerce is a
strategic approach that
places the customer at
the center of your
business operations
It increases margins by
boosting efficiency at every
stage of the commerce cycle
It synchronizes your
entire value chain to
deliver consistent and
predictable outcomes
It maximizes the insight
generated through
customer interactions
It capitalizes on
social and mobile
commerce
It improves collaboration
and visibility for your
customers & partners
Customer
®
© 2012 IBM Corporation
Smarter Commerce can help transform every phase of the commerce cycle
BuySourcing,
controlling and procurement of
goods and services
MarketTargeted and personal ized
marketing across all customer
interactions
ServiceServicing
customer needs across all interaction channels
Sell Enables selling and fulfillment of
products and services across
all channels
MarketBuy
Service SellCustomer
Insight Strategy
Engagement
®
© 2012 IBM Corporation
B2B integration capabilitiesare critical for Smarter Commerce
Universal ConnectivityUniversal Connectivity
OutsideInside
Cloud Deployment
Connect Transform Secure Collaborate
Appliance Acceleration
Mobile PartnersSensorsCloudData ServicesMainframe FilesEventsApps Processes
Buy Market Sell Service
Automate
®
© 2012 IBM Corporation
The flow of business data is critical to Smarter Commerce and the processes that enable it
• Banking– Corporate payments and settlements
• Consumer products and electronics– Order and fulfillment transaction processing
• Retail– Cross channel order management
• Communications service providers– Solution delivery and consolidated billing
But today it is …Too complicated
Too slowToo expensive
®
© 2012 IBM Corporation
Research confirms the problems with partner integra tion
• Too complicated• 68% of executives report that integration challenges impede
collaborative relationships with partners
• Too slow• Time/cost of onboarding new connections in top three concerns of
IT managers in handling file transfers with partners
• Too expensive• Over $10 to manually process a business document
®
© 2012 IBM Corporation
Become easier to do business
Drive cost and inefficiency out of manual B2B processes
Connect people together to drive innovation and revenue
Connect Automate Collaborate
IBM B2B Integration & Managed File Transfer solves the Smarter Commerce integration challenge by enabling you to…
®
© 2012 IBM Corporation
Projects to strengthen your B2B capabilities
B2B Integration Managed File TransferConnect to your trading
partners - through direct
connections for high-volume
trading partners
Reduce your TCO of B2B
Integration –while increasing
reliability and customer
satisfaction
Build a comprehensive hybrid
B2B integration environment
- delivers process integration
across an agile supply chain
Offload B2B file transfers to the
Cloud – and reduce the strain on IT
from file-based business interactions
with trading partners
Remediate your FTP risk-overcome the risks to critical
business processes and data
security
Achieve operational excellence
in MFT- Reduce interruptions of
key business processes
®
© 2012 IBM Corporation
Projects to make you more successful…
© 2011 IBM Corporation
Connect to your trading
partners - through direct
connections for high-volume
trading partners
®
© 2012 IBM Corporation
CSX Transportation (CSX) improves customer relationswhile streamlining cost
� Now with a centralized system, the high cost of having
to process orders from their customers via multiple
VANs has been eliminated, resulting in a return on
investment within 18 months of implementation
� Easily extend their automated processes across
enterprise boundaries, regardless of their business
partners’ differing connectivity technologies, policies,
procedures, preferences, and priorities
� To establish a cost effective, high-performance
platform for internal and external communications.
� IBM® Sterling B2B Integrator makes it faster and easier
to build, deploy, and manage B2B solutions across
diverse business partner communities
CSX Transportation provides a crucial link to
the transportation supply chain through its
approximately 21,000 mile rail network, in
23 states east of the Mississippi River, the
District of Columbia, and the Canadian
provinces of Ontario and Quebec.
Customer Profile
Challenge
Results
Solution
®
© 2012 IBM Corporation
Leverage direct connections with key trading partnersto reduce costs and improve customer service
• How much are your monthly Value-Added Network costs?
• Are you using multiple Value-Added Networks to reach your trading partners?
• What percentage of your Value-Added Network costs relate to key partners with significant data volumes?
• Are you able to support technology and service-level requirements of major customers?
Bottom line:While Value-Added Networks make sense for small and occasional partners, direct connections reduce cost and improve customer service for key trading partners
®
© 2012 IBM Corporation
There is opportunity in supporting direct connections with key trading partners
82%Senior IT managers citing
the need to reduce rising
costs as a major business
issue
20 billionAnnual volume of global EDI transactions
70%of chief supply chain
officers report that lack of
visibility has a significant
impact on their supply
chains
®
© 2012 IBM Corporation
The benefits of supporting direct connections with key partners are...
• Reduce operational costs for you and your customers
• Improve service levels with customers and partners
• Improve ability to rapidly meet customers mandates
• Make it easier to do business with your company
®
© 2012 IBM Corporation
IBM® Sterling B2B Integration Solutions
Carriers
Banks
Partners
Suppliers
Customers
Pre-connected partners
IBM Sterling B2B Cloud Services
IBM Sterling B2B GatewaysIBM Sterling Transformation Engines
IBM Sterling B2B Process Applications
®
© 2012 IBM Corporation
Projects to make you more successful…
© 2011 IBM Corporation
Reduce your TCO of B2B
Integration –while increasing
reliability and customer
satisfaction
®
© 2012 IBM Corporation
Hirschvogel, Inc automates and streamlines B2B processes without high capital investments
� Needed to automate manual B2B data processing with
new ERP system but faced a shortage of in-house
resources to manage a B2B integration project
� IBM® Sterling B2B Integration Services - operating all or
part of a company’s B2B integration infrastructure and
processes leveraging cloud technologies to enable
acceleration of ROI for B2B projects
Hirschvogel Inc. makes metal components
for the automotive industry. The company
supports the North American automotive
market for the parent company in Germany.
Hirschvogel Automotive Group is one of the
world’s top manufacturing specialists in
metal forming and machining.
� Total Cost of ownership for B2B collaboration reduced
by 90%
� Removes burden on internal IT resources
� Improves visibility into supply chain resulting in higher
customer satisfaction and lower costs
Customer Profile
Challenge
Results
Solution
®
© 2012 IBM Corporation
Trading communities are becoming increasingly complex and diverse: Do you have the capacity?
• Do you have the resources you need to optimize and scale your B2B integration infrastructure to support your global trading partners?
• Do you have the bandwidth and expertise within your IT staff to design, test, implement and support mapping and ongoing document translation requirements?
• Do you want to utilize your IT resources to optimize your B2B capability or are there other business critical projects for them to focus on?
• How do you currently provide multi-lingual and multi-time zone support to your global trading community?
Bottom line:Facilitate growth by rapidly growing and adapting your B2B
community without burdening internal resources and capital outlay
®
© 2012 IBM Corporation
There is opportunity in supporting outsourcing B2B Integration
82%Senior IT managers citing
the need to reduce rising
costs as a major business
issue
50%Of businesses plan to
adopt more
collaborative
sourcing models
63%of companies have not
established electronic
communication with over
half of their suppliers
®
© 2012 IBM Corporation
The benefits of outsourcing B2B Integration include:
• Reduced total cost of ownership of B2B operations
– Total cost of ownership reduced 121%1
• Provided visibility and control over collaborative processes
• Automated data flow processes, reducing errors
• Reduced internal resources required to manage B2B environment
• Improved customer satisfaction • Decreased trading partner on boarding times
1Source: Business Value of Sterling Commerce Managed Services for B2B Integration for detailed explanation of the ROI model and results
®
© 2012 IBM Corporation
IBM® Sterling B2B Cloud Services
IBM® Sterling B2B Collaboration Network
IBM ® Sterling B2B Integration Services
Access to over 300,000 pre-connected trading
partners
®
© 2012 IBM Corporation
Projects to make you more successful…
© 2011 IBM Corporation
Build a comprehensive hybrid
B2B integration environment
- delivers process integration
across an agile supply chain
®
© 2012 IBM Corporation
Unisource Canada strives for transactional excellence with automated purchase to pay
� Now that manual interventions have been removed,
orders are processed in a more timely and accurate
fashion
� Data accuracy from suppliers increased 90 percent
� Improved on-time delivery to customers, which
increases their satisfaction and loyalty.
� More accurate orders resulting in more accurate stock
levels
� A cost-effective and efficient way of transacting
electronically with suppliers
� IBM® Sterling B2B Collaboration Network and IBM®
Sterling Supplier Portal gives suppliers a cost-efficient
alternative process collaboration environment
� IBM® Sterling B2B Integrator to integrate business
processes
Unisource is Canada’s single-source
distributor of more than 80,000
paper, printing, imaging, graphic
arts, packing, and maintenance
supplies and equipment.
Customer Profile
Challenge
Results
Solution
®
© 2012 IBM Corporation
Commerce begins with your supply chain partners: Have you automated the process?
• Do you know the cost of doing business with suppliers manually?• What is the cost of reconciling errors introduced during manual
processing?• Do you have the confidence in your supply chain to compete and win
new business? • Can your suppliers see into your supply chain?
Bottom line:A comprehensive approach to supplier integration is critical
to customer satisfaction and your margins
®
© 2012 IBM Corporation
There is opportunity in automating trading partner integration
68%Of supplier transactions are
handled manually
$93 billionAmount in sales missed due to out of stock inventory
$53Is the reconciliation
cost per error for
manually processed
documents
®
© 2012 IBM Corporation
The benefits of automating 100% of your procure-to-pay processes are...
• Reduce operational costs
• Improve service level agreements with customers and partners
• Compete and win new business through an agile supply chain
• Make it easier to do business with your company
®
© 2012 IBM Corporation
IBM® Sterling B2B Integration Solutions
Carriers
Banks
Partners
Suppliers
Customers
Pre-connected partners
IBM Sterling B2B Cloud Services
IBM Sterling B2B GatewaysIBM Sterling Transformation Engines
IBM Sterling B2B Process Applications
®
© 2012 IBM Corporation
IBM® Sterling B2B IntegratorModular, Secure, B2B Gateway
Integration Adaptors
FTP/S
Mailbox
Repository
SFTP
Web Based User and Administration GUI
Connect:Direct
HTTP/S
Web Services
Other protocols
Translation
Process Engine
Application Framework – Clustering, Load balancing, etc.
Partner Management
Monitoring/Alerting
Per
imet
er S
ervi
ces
Partners
3rd PartySystems
B2B CloudServices
InternalApplications
Users
®
© 2012 IBM Corporation
Offload B2B file transfers to the
Cloud – and reduce the strain on IT
from file-based business interactions
with trading partners
Projects to make you more successful…
© 2011 IBM Corporation
®
© 2012 IBM Corporation
Large US Food/Beverage manufacturer transformed B2B & file transfer environment by moving to the cloud
� Provide superior & consistent customer service & one-
face to customers for eCommerce services including:
� Multi-gigabyte POS transfers from retail partners
� Multiple service providers & disparate systems
� IBM® Sterling File Transfer Service for large POS file
transactions, & IBM Sterling B2B Integration Services to
consolidate all redundant internal systems and external
service providers to a single B2B Cloud solution.
� Transformed complex environment to a single cloud
provider, via a single connection to the cloud
� Consolidated visibility and governance for all
eCommerce services
� Added new capabilities around large file transfers
� Eliminated multiple internal environments
One of the largest Beverage companies
which manufactures, markets and sells
its products worldwide – their
eCommerce directive is to provide one
face to customers for all trade programs,
transactions, & information
Challenge
Results
Solution
Customer Profile
®
© 2012 IBM Corporation
Growth & success may be impacted by IT limitations. Ask yourself…
• Are you dealing with a shortage of capital budget and skilled staff to invest in or to manage B2B file transfer infrastructure and activity?
• Does IT struggle to meet the demands for enrolling and on-boarding new partners?
• Do limitations in your existing infrastructure/systems or processes drive the addition of new file transfer point solutions?
• Do you struggle with the costs for IT to manage and troubleshoot data exchange activity with partners?
Bottom line:A cloud service for file-based business interaction allows you to respond to business demands without the capital expense of on premise software or operational impact on your IT staff.
®
© 2012 IBM Corporation
There is opportunity in moving B2B transfers to the Cloud
65%Senior IT managers citing
complexity as the “biggest”
issue with respect to
supporting B2B file
transactions
95%Senior IT managers
anticipating significant growth in file sizes and file volumes
79%Companies planning
to evaluate the use
of cloud-based
services for file
transfer
®
© 2012 IBM Corporation
The benefits of moving B2B transfers to the Cloud...
• Complexity : Free up internal IT resources by: – Consolidating redundant file transfer software & partner
connections to the cloud– Offloading the responsibilities for managing your B2B file
transfer environment to IBM experts
• Costs : Lower operational & infrastructure costs by:– Deploying a cloud solution as an alternative to capital
investments in software & infrastructure– Reducing the time to enroll and add new partners– Offloading partner setup and support activities to IBM
• Growth : Support the ability for IT to respond to the organizations file transfer needs without:
– Compromising performance of the business– Capital expense in new software & infrastructure
®
© 2012 IBM Corporation
IBM® Managed File Transfer Solution
Monitor file transfer activity & SLAsIBM® Sterling Control Center
B2B Onboarding and file transfer via mailboxing
IBM® Sterling File Gateway
Preventing unauthorized accessIBM® Sterling Secure Proxy
IBM® Sterling Connect:Direct®Secure Plus
Peer-to-peer file transfers via file system
IBM® Sterling Connect:Direct®
Replace or upgrade FTP IBM® Sterling Connect:Direct® with FTP+
File transfer via messagingIBM® WebSphere MQ File Transfer Edition
Cloud service for B2B file exchangeIBM® Sterling File Transfer Service
®
© 2012 IBM Corporation
IBM® Sterling File Transfer Service
IBM® Sterling File Transfer Service
GB+
A Cloud service for file-based interactions with B2B partners
®
© 2012 IBM Corporation
IBM® Sterling File Transfer Service
• A cloud service for file based business interactions with trading partners
• What it does– One-to-many connectivity for file transfers with partners
– Automates and processes inbound and outbound files in the cloud
– Supports broad trading partner requirements for format, protocol, and file size
– Manages your partners and their connections with IBM skilled personnel
• How it is delivered– As-a-Service – Through IBM® Sterling B2B Cloud Services– All Partner setup and support services performed by IBM’s skilled personnel
– On-line real-time visibility & reporting through IBM® Sterling InFlight Data Management
®
© 2012 IBM Corporation
IBM® Sterling File Transfer Service
• What it allows customers to do– Create a single, secure, reliable connection to reach partners without capital expenses– Minimize the need for unique on-premise B2B file transfer software solutions– Meet the growth in demand for B2B file transfer activity more quickly– Minimize the need for on-premise staff to manage and monitor B2B file transfer activity– Gain visibility and governance oversight of all B2B file activity
• How do I know I need it?– Shortage of capital budget & skilled staff to invest in, or to manage B2B file transfer
infrastructure & activity– High volume of unmanaged and highly unsecure data is exchanged– Costs to manage and troubleshoot data exchange activity are too high– Onboarding trading partners takes too long and delays revenue opportunities– Limitations in existing systems/processes drive the addition of new file transfer solutions
• Adding new servers, software, & connections
• What differentiates IBM?– Proven – “Dial tone” reliable B2B Cloud Services infrastructure built with the 30+ year
pedigree of IBM’s (legacy IBM Sterling) market leading B2B & MFT software– Expertise – Skilled professionals to optimize your B2B file transfer operations– Portfolio – Compliments IBM’s market leading MFT software & B2B Cloud Services
®
© 2012 IBM Corporation
The IBM® Sterling File Transfer Service value opportunity
• Reduce IT operational and infrastructure costs – Secure cloud-based file transfers reduce capital expenses in software and
infrastructure and offload partner setup and support activities to IBM’s skilled professionals
• Simplify B2B file transfer processes – Consolidate redundant file transfer servers, software, and partner connections
and leverage IBM’s expertise and experience to optimize the delivery of B2B file transfers
• Grow your business – Leverage our cloud based, scalable B2B file transfer infrastructure and support
services to respond to business demand
®
© 2012 IBM Corporation
Projects to make you more successful…
© 2011 IBM Corporation
Remediate your FTP risk-overcome the risks to critical
business processes and data
security
®
© 2012 IBM Corporation
Large US Bank improves security and compliance for legacy FTP processes
� Required higher levels of file transfer reliability and
ensure data security for existing FTP processes
� No end-to-end visibility for monitoring the FTP
environment and manual process for SLA management
� IBM® Sterling Managed File Transfer offers a secure file
exchange solution permitting this bank to upgrade their
FTP processes and provide the levels of visibility and
management FTP lacks
� Protected the brand and maintained regulatory
compliance - Transformed FTP environment to a fully
managed, secure, auditable environment
� Improved customer growth and retention - improved
transactional visibility with server monitoring, process
alerting, & SLA management
One of the oldest financial institutions in
the US – delivering investment banking,
financial services for consumers, small
business and commercial banking,
financial transaction processing, asset
management and private equity.
Challenge
Results
Solution
Customer Profile
®
© 2012 IBM Corporation
Is the highly prevalent usage of FTP impacting your business?
• Failed security audits, and inability to meet new regulations?• Resource constraints make it difficult to grow the number of
connections and achieve needed level of SLA’s?• Unreliable and Inefficient transactional processes?• Lack of actionable visibility?• Lack of integration and automation multiplies the manual process
steps?• Inability to handle growing file sizes and volumes?
Bottom line:Only IBM offers options to upgrade, replace, consolidate, and/or offload your at-risk FTP processes in alignment with your overall strategy for managing business critical data movement.
®
© 2012 IBM Corporation
There is opportunity in remediating at-risk FTP
8%of FTP transfers fail
$6.75 millionAverage cost of a security breach in 2009
60%of integration is still
conducted using files
®
© 2012 IBM Corporation
The benefits of remediating the FTP risk...
• Security : Reduce the security risk of file based transfers
– Average cost of data breach $6.65M– Remove penalties for non-compliance– Reduce the cost of dedicated lines by safely leveraging
the internet
• Reliability : Lower the cost of dealing with exceptions– MFT .0003% exception rate* vs. FTP 8% exception rate
• Visibility : reduce time spent finding and fixing errors, and miss fewer SLA’s
– IBM Sterling study shows a 25% reduction in time spent researching and remediating failures*
– Reduce penalties for missed SLA’s
• Automation : Lower timeframes to setup and maintain connections
– IBM Sterling study documents a reduction of on boarding costs by 39%*
– One customer reduced on boarding timeframes from weeks to days
®
© 2012 IBM Corporation
IBM® Sterling Managed File Transfer Solution
Security and Governance
B2B Managed File Transfer
A2A Managed File Transfer
®
© 2012 IBM Corporation
IBM® Managed File Transfer Solution
Monitor file transfer activity & SLAsIBM® Sterling Control Center
B2B Onboarding and file transfer via mailboxing
IBM® Sterling File Gateway
Preventing unauthorized accessIBM® Sterling Secure Proxy
IBM® Sterling Connect:Direct®Secure Plus
Peer-to-peer file transfers via file system
IBM® Sterling Connect:Direct®
Replace or upgrade FTP IBM® Sterling Connect:Direct® with FTP+
File transfer via messagingIBM® WebSphere MQ File Transfer Edition
Cloud service for B2B file exchangeIBM® Sterling File Transfer Service
®
© 2012 IBM Corporation
Projects to make you more successful…
© 2011 IBM Corporation
Achieve operational excellence
in MFT- Reduce interruptions of
key business processes
®
© 2012 IBM Corporation
Large health service company improves performance for their MFT processes
� Required higher levels of file transfer reliability to
support the business
� No end-to-end visibility for monitoring / management
� IBM® Sterling Control Center provides auditability,
monitoring and management to improve operational
excellence for key business processes like claims
� “IBM Sterling Control Center is giving us key insight into
management questions like: ‘Who is using file transfer?’,
‘How many transfers?’, ‘How much data?’ and ‘How
many failures?’”
A global health service company,
dedicated to helping the people improve
their health, well-being and sense of
security
Challenge
Results
Solution
Customer Profile
®
© 2012 IBM Corporation
How “ Managed ” is your file transfer?
• Auditability� Do you have difficulty in proving compliance to business and regulatory
audit requirements with a high degree of confidence and a low resource expenditure?
• Monitoring� Are you unable to provide, or track, file transfer SLAs or chargeback
metrics for Lines of Business (LOB) or customers?
• Management� Can you manage growth in a way that balances business requirements,
cost controls, and accelerating deployment times?
Bottom line:Only IBM offers the operational visibility you need across all file transfers to help you increase the performance of key business processes
®
© 2012 IBM Corporation
There is opportunity in MFT operational excellence
1Data points referenced in findings from an internal IBM Sterling research study - December 10, 2009
5xFewer errors than
unmanaged servers
90%reductions in
troubleshooting costs
25%reduction in time
spent researching
and remediating
failures
®
© 2012 IBM Corporation
The benefits of operational excellence...
• Improve operational efficiencies:– Fewer resources are required to support MFT because of
centralized consoles, reduced platform-specific skill requirements, and management by exception
• Reduce interruptions of key business processes:– Proactive monitoring and notifications provides an early
warning system for key file transfers and business processes, ensuring you can respond to issues before they become critical
• Increase compliance to audit requests:– Centralized data that is easily accessible requires fewer
time and resources to respond positively, and with a high degree of confidence
• Support growth plans for the business:– Tools enable and accelerate consistent and compliant
rollout of managed file transfer capabilities
®
© 2012 IBM Corporation
IBM® Sterling Managed File Transfer Solutions
Security and Governance
B2B Managed File Transfer
A2A Managed File Transfer
®
© 2012 IBM Corporation
IBM® Managed File Transfer Solution
Monitor file transfer activity & SLAsIBM® Sterling Control Center
B2B Onboarding and file transfer via mailboxing
IBM® Sterling File Gateway
Preventing unauthorized accessIBM® Sterling Secure Proxy
IBM® Sterling Connect:Direct®Secure Plus
Peer-to-peer file transfers via file system
IBM® Sterling Connect:Direct®
Replace or upgrade FTP IBM® Sterling Connect:Direct® with FTP+
File transfer via messagingIBM® WebSphere MQ File Transfer Edition
Cloud service for B2B file exchangeIBM® Sterling File Transfer Service
®
© 2012 IBM Corporation