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Complexity and Risk
Effective Business Community Management through
Integration




Date
 Jon Gatrell
Presenter Name
 5.6.2009
Risky Business
TinyManufacturer, Inc.
Goods made by the hands of 60 Taiwanese artisans are
connected to 300 retailers around the world.




                                                       3
BigODM, Inc.
Computers from Korean contract manufacturers are ordered and
shipped to computer retailers and consumers across the globe.




                                                                4
BigRetailer, Inc.
Buyers and logistics teams orchestrate a symphony of thousands
of suppliers to get products to market quickly and accurately.




                                                             5
Longer Supply Chains
Off-shore sourcing can increase risk, limit
visibility and lower flexibility.


                                              6
The State of Integration
Automation Spending Out of Alignment


  18X              More spent on Internal automation
                   than External B2B Automation
                                          External B2B
                                           Automation
       Internal
      Automation
                                             $3B

     $55B

    But…“Non-linear revenue growth for companies is
    not going to come from within but from their extended
              ecosystem…” Harvard Business Review

                                                            8
Connections are EVERYWHERE!
Who owns data and process
governance?




                              9
How to monitor orphaned processes?

Who has what data?




                                     10
Opportunity is beyond the 4 walls.
Risk is also beyond the 4 walls.
Risk Doesn’t Go Away




                       13
14
RISK: Beyond the Buzzword




                            15
Systems failure

                  16
Exceptions happen




                    17
Time is your enemy
The right systems, the right platforms, the
people and the technology to onboard partners
Global Operations
        &
   Compliance


                    19
Data is everywhere

New processes and capabilities




                                 20
International Trade

Customs, e-Invoicing and Basel II


                                    21
SOX

Sarbanes-Oxley requires integration


                                      22
HIPAA

Security inside and outside required




                                       23
24
Recent ePrivacy laws mandate encryption
                                      Anyone with
                                      customers in
                                      Nevada or
                                      Mass

                                      All consumer
                                      data must be
                                      encrypted

                                      “from hair
                                      stylists to
                                      hospitals”

                                      Fines = $1000
                                      per customer

                                      $30B spent on
                                      security IT
                                      (19%)

                                                      25
B2B and Data
Exchange Security is
    Easy, right?
   A slam-dunk?




                       26
Corp   Govt              BUs                 Clients       Partners




      Backlog of new
      demand
                                                                                   Manually generated
  Custom Onboarding
                                                                                   custom reporting
  Team unique to each
  MFT application
                               Onboarding Team        Analyst




                                                                                              Infrastructure team
                                                 File Transfer
Manual exception                                 App



                                                                                              for platform and
Monitoring Team
                                                                                              network
                                                   Exception
                                                   Monitoring
                                                   Team




    System and DB                    IT App Team                  Infrastructure
                                                                  Team

                                                                                         Significant CAPEX
    administrators
                                                                                         and Maintenance
    unique to the MFT
                                                                                         investment in
    application
                                                                                         platform, network
                                                 Infrastructure




                                                                                         and applications
Multiple Systems
Manual Processes
                   Corp    Govt                       BU                    Clients   Partners
Multiplicity
Complexity
Cost




                          Onboarding Team         Analyst




                                            File Transfer
                                            App




              Over time, things change         Exception
                                               Monitoring
                                               Team



                                IT App Team                 Infrastructur
                                                            e
                                                            Team




              Mergers acquisitions, new platforms,
                                            Infrastructur
                                            e



              new people, new partners
Mitigating Risk




                  29
Managing Data is Getting Harder

      • Increasing MFT demand across business units

      • Partner On-boarding requirements increasing

      • Increasing demands for compliance reporting

      • Protocol complexity growing

      • Increasing focus on security and governance




                                                      30
B2B Technology & Operations teams are getting
squeezed by competing demands




                                                31
32
33
One size does not fit all

Different capabilities, scale and value




                                          34
A process centric approach
It’s about business value and improved
agility




                                         35
Typical File Data Management and Transfer Platforms




                                                      36
Leverage a Consolidated Platform

                                   • Consistent onboarding
                                     and self-servicing for
                                     end users
                                   • Cost savings through
                                     efficiencies
                                   • Common functions
                                     across the enterprise
                                   • Simplified client self-
                                     service and end-user
                                     experience
                                   • Common management
                                     process and controls
                                   • Structured onboarding
                                     management
                                   • Open integration
                                     platform
                                   • Robust
                                     Communications
                                     module


                                                               37
Complexity and Risk
Effective Business Community Management through
Integration




Date
 Jon Gatrell
Presenter Name
 5.6.2009

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Complexity and Risk: Effective Business Community Management through Integration

  • 1. Complexity and Risk Effective Business Community Management through Integration Date Jon Gatrell Presenter Name 5.6.2009
  • 3. TinyManufacturer, Inc. Goods made by the hands of 60 Taiwanese artisans are connected to 300 retailers around the world. 3
  • 4. BigODM, Inc. Computers from Korean contract manufacturers are ordered and shipped to computer retailers and consumers across the globe. 4
  • 5. BigRetailer, Inc. Buyers and logistics teams orchestrate a symphony of thousands of suppliers to get products to market quickly and accurately. 5
  • 6. Longer Supply Chains Off-shore sourcing can increase risk, limit visibility and lower flexibility. 6
  • 7. The State of Integration
  • 8. Automation Spending Out of Alignment 18X More spent on Internal automation than External B2B Automation External B2B Automation Internal Automation $3B $55B But…“Non-linear revenue growth for companies is not going to come from within but from their extended ecosystem…” Harvard Business Review 8
  • 9. Connections are EVERYWHERE! Who owns data and process governance? 9
  • 10. How to monitor orphaned processes? Who has what data? 10
  • 11. Opportunity is beyond the 4 walls.
  • 12. Risk is also beyond the 4 walls.
  • 13. Risk Doesn’t Go Away 13
  • 14. 14
  • 15. RISK: Beyond the Buzzword 15
  • 18. Time is your enemy The right systems, the right platforms, the people and the technology to onboard partners
  • 19. Global Operations & Compliance 19
  • 20. Data is everywhere New processes and capabilities 20
  • 23. HIPAA Security inside and outside required 23
  • 24. 24
  • 25. Recent ePrivacy laws mandate encryption Anyone with customers in Nevada or Mass All consumer data must be encrypted “from hair stylists to hospitals” Fines = $1000 per customer $30B spent on security IT (19%) 25
  • 26. B2B and Data Exchange Security is Easy, right? A slam-dunk? 26
  • 27. Corp Govt BUs Clients Partners Backlog of new demand Manually generated Custom Onboarding custom reporting Team unique to each MFT application Onboarding Team Analyst Infrastructure team File Transfer Manual exception App for platform and Monitoring Team network Exception Monitoring Team System and DB IT App Team Infrastructure Team Significant CAPEX administrators and Maintenance unique to the MFT investment in application platform, network Infrastructure and applications
  • 28. Multiple Systems Manual Processes Corp Govt BU Clients Partners Multiplicity Complexity Cost Onboarding Team Analyst File Transfer App Over time, things change Exception Monitoring Team IT App Team Infrastructur e Team Mergers acquisitions, new platforms, Infrastructur e new people, new partners
  • 30. Managing Data is Getting Harder • Increasing MFT demand across business units • Partner On-boarding requirements increasing • Increasing demands for compliance reporting • Protocol complexity growing • Increasing focus on security and governance 30
  • 31. B2B Technology & Operations teams are getting squeezed by competing demands 31
  • 32. 32
  • 33. 33
  • 34. One size does not fit all Different capabilities, scale and value 34
  • 35. A process centric approach It’s about business value and improved agility 35
  • 36. Typical File Data Management and Transfer Platforms 36
  • 37. Leverage a Consolidated Platform • Consistent onboarding and self-servicing for end users • Cost savings through efficiencies • Common functions across the enterprise • Simplified client self- service and end-user experience • Common management process and controls • Structured onboarding management • Open integration platform • Robust Communications module 37
  • 38. Complexity and Risk Effective Business Community Management through Integration Date Jon Gatrell Presenter Name 5.6.2009