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B2B Managed Services What Is It and Why Should You Know?
Rochelle Cohen, Senior Marketing Manager
Jeff Keefer, Director, Managed Services
November 20, 2012 Slide 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 3
1991 1996 1998 2000
Multiple EDI Providers
Multiple EDI service
agreements in multiple
regions; different on-
premise EDI translation
software in each region
On-Premise Gateway
Implementation of on-
premise B2B gateway
Consolidation
Consolidation of on-
premise regional EDI
solutions to one corporate
solution
AS1 Connectivity
Implementation of on-
premise EDIINT AS1
solution to connect
business partners securely
over SMTP
2001
Integration Broker
B2B Strategy review,
purchased B2B Integration
Broker technology
B2B Managed Services
Move to Managed
Services to deal with
growing complexity –new
standards, large files,
limited software lifespan
2010 2012
AS2 Connectivity
Implementation of on-
premise EDIINT AS2
to connect business
partners securely over
HTTPS
One Company’s EDI Journey Large Manufacturer with Global Sites & Customers
November 20, 2012 Slide 4
In-House B2B Program Environment
GXS Managed Services Environment
November 20, 2012 Slide 5
In-House B2B Program Environment
GXS Managed Services Environment
November 20, 2012 Slide 6
In-House B2B Program Environment
GXS Managed Services Environment
November 20, 2012 Slide 7
In-House B2B Program Environment
GXS Managed Services Environment
In-House B2B Platform
Move Messages Translate Messages Exchange Messages
November 20, 2012 Slide 8
B2B Platform
High Availability – 24X7
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 9
B2B Platform
High Availability – 24X7
End-to-End Visibility &
Alerting
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 10
B2B Platform
High Availability – 24X7
End-to-End Visibility &
Alerting
Integration to Backend
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 11
B2B Platform
High Availability – 24X7
End-to-End Visibility &
Alerting
Integration to Backend
Data Quality Assurance
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 12
B2B Platform
High Availability – 24X7
End-to-End Visibility &
Alerting
Integration to Backend
Data Quality Assurance
Mapping & Translation
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 13
B2B Platform
High Availability – 24X7
End-to-End Visibility &
Alerting
Integration to Backend
Data Quality Assurance
Mapping & Translation
Partner Onboarding
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 14
B2B Platform
High Availability – 24X7
End-to-End Visibility &
Alerting
Integration to Backend
Data Quality Assurance
Mapping & Translation
Partner Onboarding
Program Management
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 15
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
More for Your B2B Network & Programs Lifeblood of Your Business
November 20, 2012 Slide 16
B2B e-Commerce is . . .
Costly Complex Continuous
November 20, 2012 Slide 17
B2B e-Commerce is . . .
Costly
Perpetual
Maintenance Fees
Rapidly Growing
Storage Footprint
Labor-Intensive
Increasingly
Customized
November 20, 2012 Slide 18
B2B e-Commerce is . . .
Complex
Enterprise Integration
Very Large File Transfer
EU Invoicing Regulations
Multilingual Support
Unique customer
requirements by market
November 20, 2012 Slide 19
B2B e-Commerce is . . .
Continuous
ERP Upgrades
Dynamic Partner
Community
Post M&A Consolidation
New B2B Standards;
New Document Types
November 20, 2012 Slide 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 21
Challenges Multiply in an Increasing Global Reality
Regions Supported
Trading Partners
Project Requests
November 20, 2012 Slide 22
Challenges Multiply in an Increasing Global Reality
Companies like yours are expected to achieve more and more each year,
even though budgets remain the same or become smaller.
Regions Supported
Trading Partners
Project Requests
November 20, 2012 Slide 23
B2B Managed Services… A Better Approach for Better B2B Execution
November 20, 2012 Slide 24
Large and Growing Market Adoption Reported by Analysts
Source: Gartner "Market Trends: Multienterprise/B2B Infrastructure Market, Worldwide, 2010-
2015, 1Q11 Update" 10 Feb 2011.
November 20, 2012 Slide 25
Large and Growing Market Adoption Proven at GXS
Source: Gartner "Market Trends: Multienterprise/B2B Infrastructure Market, Worldwide,
2010-2015, 1Q11 Update" 10 Feb 2011.
Proven at GXS
450% growth in projects
2008-2011
2008 2009 2010 2011 2012estimate
New MS Projects at GXS
November 20, 2012 Slide 26
B2B Managed Services
What is it?
November 20, 2012 Slide 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 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 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 30
B2B Managed Services
Why are companies
considering this
approach?
November 20, 2012 Slide 31
Key Business Challenges
Cost Reduction
ERP Projects Customer
Integration
Modernization
(Technology
Refresh)
New Markets/
Channels
Workforce
Optimization
Consolidation/
Standardization
November 20, 2012 Slide 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 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 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 35
Consolidation and Standardization Mergers & Acquisitions Result in Disparate B2B Environments
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
Business Impact:
Redundant, costly B2B platforms
Large personnel investment
Limited supply chain visibility
Inefficiency due to duplicative B2B
processes
November 20, 2012 Slide 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 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 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 39
B2B Managed Services
How are
companies
benefiting, and
why should my
organization be
considering it?
November 20, 2012 Slide 40
Leading Consumer Goods Company Customer Case Study – GXS Managed Services
Business Challenges:
Consolidation & Standardization
Modernization
Cost Reduction
Customer Satisfaction
November 20, 2012 Slide 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 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 43
Experience Time-tested, most customers, brand-name references,
migration best practices
Global Reach Operations span the globe, 24x7 worldwide multi-
language support, global data centers, Global Centers
of Excellence
Leadership and Innovation Analyst-validated, top segment share
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
Selecting a B2B Managed Services Provider
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
ERP Integration Competence SAP-certified, Oracle experience, any-to-any data mapping
Managed Services Focus % of revenues, services investments, commitment to success
KNOW-HOW
TECHNOLOGY
PROCESSES
PEOPLE
November 20, 2012 Slide 44
Questions?
November 20, 2012 Slide 45
More resources for you…
Webinar Presentation:
• Recording
• Slides (PDF)
• Transcript
B2B Managed Services:
Vendor Selection
Checklist
Thought Leadership:
“All About B2B”
www.gxsblogs.com
IDC Opinion:
Special Report
on Unilever Brazil
www.gxs.com
November 20, 2012 Slide 46
Thank You for Your Participation!
For More Information
Phones
US: 1-800-334-5669, option 3
EMEA: +44 (0) 1932 776047
ASPAC: +852 2884 6088
Japan: +81-3-5574-7545
GXS Web Sites
US: www.gxs.com
EMEA: www.gxs.eu
ASPAC: www.gxs.asia.com
Japan: www.gxs.co.jp
Presenters: