Discover how and why file transfer is changing · Discover how and why file transfer is changing ... The networked workforce ... Adapt sourcing and procurement based on customer demand

© 2013 IBM Corporation

Discover how and why file transfer is changing

Why you should think of it as more than FTP

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© 2012 IBM Corporation © 2013 IBM Corporation

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

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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 are 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

We have entered the age of the empowered customer

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

Sources:, Techcrunch Oct 2011, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 2008 3

© 2012 IBM Corporation © 2012 IBM Corporation 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

These disruptive forces ripple from the customer through the enterprise and across entire industries

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Understand and

predict

customer

behavior and

needs based on

customer

insights across

all channels

Adapt sourcing and

procurement based

on customer

demand

Market, sell and

fulfill the right

product and service

at the right price,

time and place

In this new era, businesses need to:

Power has shifted… compressing margins and changing paradigms

Service customers

flawlessly, predict

and drive

customer loyalty

Synchronize

interactions

across the value

chain needed to

deliver their

product or

service

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We call the path forward Smarter Commerce

Drives growth

Places the customer at the center

Increases margins

Synchronizes your entire value chain

Maximizes insight

Capitalizes on social and mobile

Improves collaboration and visibility

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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-sell-

service must better

integrate with partners

People

Actionable visibility is needed

to better respond to the

customer

Processes

Demand and supply need

better interlocks to deliver

the right product/service

68% of executives report that

integration challenges impede

collaborative relationships with

partners

$93 billion in sales missed due

to out of stock inventory per year

70% of supply chain officers say

that lack of visibility has a

significant impact on supply chains

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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


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

Speeding

resolution of

issues and

increase

customer

satisfaction

To produce some significant outcomes …

Become easier to

do business with

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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

Secure, reliable file transfer connects

systems

Integration Services

Flexible cloud technologies and expert services host business

communities

Integration Gateways

Orchestration and automation for key partner processes

Transformation

Engines

Single, universal engine for all internal and external

file and message transformation needs

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

The IBM difference

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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 …

Originator/Destination

Retailer to third party processor

Manufacturer to suppliers

Corporate customers to banks

Individual users collaborating with inside/outside individuals

Payload

Credit card transactions

Orders, Forecast, Design

Payments, lockbox, treasury

Legal briefs, marketing proofs, customer lists, support logs

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System-centric

Community-centric

Person-centric

55% of system integrations (both internal & external) are accomplished via files

Source: Synchronize the Value Chain Research Study, Vanson Bourne, February 2012


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 – …

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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

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In the context of transfers that use the FTP protocol, what percentage would you estimate do not complete successfully? (average response)

6.47%

What do you estimate is the average time it takes to troubleshoot and resolve an FTP file transfer error? (average response)

28 min.

Total # FTP Transfers 6.47% 28 min. X X = $$$

2013 Vanson Bourne B2B Integration and MFT Global Study for IBM.


Research show the top concerns for file transfer remain predictable

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Which of the following issues limits the effectiveness of your file transfer systems?

2013 Vanson Bourne B2B Integration and MFT Global Study



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

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System-centric

Automated, reliable, secure transfers for system integration

Community-centric

Multi-protocol edge gateway for universal connectivity to the business community

Person-centric

Simplified transfers built for non-IT users reduce the email attachment risk

Emerging use cases

• Extreme • Intelligent • Cloud

Governance

Security Common perimeter services, proxy, authentication

Actionable visibility for business, operations and compliance


IBM MFT suite - products

Product

IBM Sterling Control Center, IBM Business Monitor

IBM Sterling Connect:Direct

IBM MQ MFT (FTE)

IBM Sterling File Gateway

IBM File Transfer Service

IBM Sterling myFileGateway

IBM QuickFile

IBM Sterling Secure Proxy

Deployment

On Premise with web and mobile access

On Premise with broad platform support

On Premise

Cloud managed service

On Premise

Software appliance

On Premise

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System-centric

Community-centric

Person-centric

Security

Governance


IBM® enables a world class Manage File Transfer Center of Excellence

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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)

Mandates to encrypt internal FTP transfers Need for better reliability/failover and additional

protocols for external transfers

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.

Customer Profile Top ten provider of Insurance, Investment and Retirement financial services.

Challenge

Results

Solution

Large US Financial Services

Provider

Customer Profile


There is change in file transfer workloads …

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41%

30%

29%

System centric transfers:

Community centric transfers:

Person centric transfers:

Please give an estimation of the volume (number) of transfers in the following categories by allocating 100% between the following options:

automated, secure transfers for system-to-system integration

transfers that link your business community to your organization

transfers between people inside and outside your company

2013 Vanson Bourne B2B Integration and MFT Global Study


IBM MFT suite - products

Product

IBM Sterling Control Center, IBM Business Monitor

IBM Sterling Connect:Direct

IBM MQ MFT (FTE)

IBM Sterling File Gateway

IBM File Transfer Service

IBM Sterling myFileGateway

IBM QuickFile

IBM Sterling Secure Proxy

Deployment

On Premise with web and mobile access

On Premise with broad platform support

On Premise

Cloud managed service

On Premise

Software appliance

On Premise

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System-centric

Community-centric

Person-centric

Security

Governance


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

1Data points referenced in this presentation represent findings from an internal IBM Sterling research study - December 10, 2009




IBM has introduced QuickFile for person centric transfers

Today

With QuickFile

Email Server

Email w/Document

attached

Email text w/link

File Encrypted Storage




IBM has grown our visibility solution

Sterling Control Center

Business Monitor

Track and trace Log file based event records that can be sorted through to see what has happened. Connect:Direct

MQ MFT (FTE)

File Gateway

QuickFile

FTP Servers

Other IBM

Solutions

Non IBM

Solutions

MFT Operational

Users

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

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.


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


Is file transfer important in your organization?

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What’s in the box?

Who cares when it doesn’t get there?

Documents

Discover how and why file transfer is changing · Discover how and why file transfer is changing ... The networked workforce ... Adapt sourcing and procurement based on customer demand