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How B2B Managed Services Supports Digital Transformation Initiatives
1.
How B2B Managed
Services Supports Digital Transformation Initiatives June, 2017
2.
OpenText Confidential. ©2017
All Rights Reserved. 2 Introduction
3.
OpenText Confidential. ©2017
All Rights Reserved. 3 Today’s Supply Chains are Having to Adapt to Changing Market Conditions 3OpenText Confidential. ©2017 All Rights Reserved. Consumer Driven Industry Convergence Embracing New Digital Technologies UK Leaving the European Union New Trump Administration in the United States Increased Regulatory Compliance
4.
OpenText Confidential. ©2017
All Rights Reserved. 4 EDI & B2B Integration has Evolved Over the Years B2BPervasiveness EDI / B2B is continually evolving and is certainly not ‘dead’ ! 1970s 1980s Time 1990s UNIX PC 2000s 2010s IaaS | PaaS | SaaS Cloud IoT ERP B2B Big Data / Analytics
5.
OpenText Confidential. ©2017
All Rights Reserved. 5 Today’s Businesses are Embarking on a Journey of Significant Digital Transformation D I G I T A L D I S R U P T I O N New Sources of Information Will Need Managing & Analyzing Across the Enterprise 4G Networks Cloud B Y O C Internet of Things W I F I PaaS 5G Networks Smart Grids Mesh Networks New Networks SensorsRFID Smart Phones Tablet Devices B Y O D Connected Devices 3D Printing Drones Wearable Devices Mass Storage M2M Robots New Devices+ Big Data Social Networks Remote Monitoring Analytics Mobile Apps NFC Payments SAAS S E C U R I T Y T E L E M A T I C S New Information+
6.
OpenText Confidential. ©2017
All Rights Reserved. 6 Digital Transformation is Leading to New B2B Integration Initiatives Introduce a digital backbone or single ‘integration layer’ to seamlessly connect to internal enterprise systems and external trading partner communities Companies are increasingly outsourcing B2B integration projects to external trusted partners while they focus on rolling out new digital technologies
7.
OpenText Confidential. ©2017
All Rights Reserved. 7 Introduction to IDC Study
8.
OpenText Confidential. ©2017
All Rights Reserved. 8 x Countries SurveyedIndustries Surveyed IDC Study - Executive Overview The aim of this study was to see whether the introduction of new disruptive digital technologies was driving new supply chain transformation initiatives…. OpenText Confidential. ©2017 All Rights Reserved. 8 Automotive High Tech Retail CPG N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016
9.
OpenText Confidential. ©2017
All Rights Reserved. 9 Summary of Key Findings Digital Transformation (DX) is progressing rapidly, although adoption varies significantly by industry segment and country Supply chain restructuring follows digital transformation The highest maturity of new technologies is in cloud, analytics, and B2B The Internet of Things and Cognitive Analytics are the interesting areas amongst the emerging new technologies Majority of companies, 66% are considering outsourcing B2B integration; this investment could support faster & more agile digital transformation
10.
OpenText Confidential. ©2017
All Rights Reserved. 10 Digital Transformation Maturity
11.
OpenText Confidential. ©2017
All Rights Reserved. 11 7% 24% 27% 34% 9% Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disruptor Business is a laggard, providing weak customer experiences and using digital technology only to counter threats Digitally enabled customer experience and products are inconsistent and poorly integrated Business provides consistent but not truly innovative products, services, and experiences Business is a leader in its markets, providing world-class digital products, services, and experiences Business remakes existing markets and creates new ones to its own advantage and is a fast-moving target for competition Digital Transformation Maturity in the Supply Chain N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016
12.
OpenText Confidential. ©2017
All Rights Reserved. 12 6% 4% 6% 2% 20% 26% 33% 16% 23% 22% 16% 27% 26% 44% 19% 30% 35% 51% 32% 20% 23% 1% 2% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Automotive (N=51) Manufacturing (N=51) High tech (N=51) CPG (N=50) Retail (N=51) Ad hoc: Management goals for digital transformation are poorly defined and occasionally chaotic. Success often depends on individual effort, and benefits are not widely shared within the business. Business and IT digital initiatives are disconnected and p Opportunistic: Basic capabilities are established. The necessary disciplines for digital transformation are in place to repeat earlier successes on similar initiatives. The business somewhat lags behind best-performing peers. Business has identified a nee Repeatable: Business-IT goals are aligned at the enterprise level to near-term strategy and include digital initiatives for product or service delivery and customer experiences but are not yet focused on their disruptive potential. Capabilities are docume Managed: Capabilities for digital transformation are embedded in the enterprise and tightly linked to an agile management vision. The business leads its peers and competitors. Integrated, synergistic business-IT management disciplines deliver digitally en Optimized: Enterprise is aggressively disruptive in the use of new digital technologies and business models to affect markets. Ecosystem awareness and feedback is a constant input to business innovation. Continuous improvement is a core business managemen Digital Transformation Maturity in the Supply Chain N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016
13.
OpenText Confidential. ©2017
All Rights Reserved. 13 N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 50% 48% 42% 39% 39% 36% 23% 0% 10% 20% 30% 40% 50% 60% What our customers need The flexibility of our products and services to incorporate DX The industry segment(s) we operate in What our competitors are doing The need to attract and retain skilled people The constraints of our budget and project plans The bias of leadership toward change What are the factors that drive digital transformation in your supply chain? Drives Digital Transformation Drivers
14.
OpenText Confidential. ©2017
All Rights Reserved. 14 Disruptive Technology Adoption
15.
OpenText Confidential. ©2017
All Rights Reserved. 15 Cloud Enables DX Initiatives Cloud is becoming today the “de facto” implementation platform for supply chain applications This in turn enables a lot of opportunities, in particular Big Data Analytics, cloud based B2B networks and IoT, which is growing at tremendous pace along with machine learning Wearables and drones are ‘up and coming’, while robotics and 3D printing look like they have reached already a first plateau of investment
16.
OpenText Confidential. ©2017
All Rights Reserved. 16 22% 17% 12% 20% 20% 27% 47% 37% 28% 25% 11% 13% 10% 17% 12% 13% 12% 14% 14% 21% 18% 24% 22% 23% 23% 20% 13% 15% 17% 15% 24% 25% 31% 25% 30% 22% 16% 21% 24% 26% 25% 21% 25% 15% 15% 19% 12% 13% 16% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Big Data Analytics B2B cloud networks Cloud applications IoT (Use of sensors) Smart mobility Robotics Drones Wearables 3D printing Machine Learning Not using Early pilots In one functional area In more than one functional area Full use across the SC Digital Transformation Progress Today Identify progress with each of the following digital transformation efforts in your supply chain today N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 7 70% Respondents said they were using cloud B2B networks today
17.
OpenText Confidential. ©2017
All Rights Reserved. 17 44% 34% 31% 31% 28% 28% 25% 24% 24% 21% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Reduced costs Improved productivity Increased visibility Expanded market reach Improved business planning Improved service performance Increased agility Better product quality New supply chain capability Development of new products or services Something else N=165 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Please indicate whether or not you actually accomplished or realized tangible benefits for each goal related to digital transformation efforts for B2B Cloud Networks within your organization’s supply chain. Benefits Realized From B2B Cloud Networks 7 44% Respondents said they used B2B Cloud Networks to reduce costs
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OpenText Confidential. ©2017
All Rights Reserved. 18 37% 43% 46% 31% 31% 33% 29% 32% 34% 30% 5% 0% 20% 40% 60% Automotive (N=34) 39% 52% 19% 26% 27% 30% 27% 29% 32% 14% 0% 20% 40% 60% Manufacturing (N=31) 38% 60% 24% 46% 17% 22% 36% 26% 30% 20% 11% 0% 20% 40% 60% 80% High tech (N=34) 24% 29% 37% 6% 29% 15% 29% 19% 41% 28% 0% 20% 40% 60% CPG (N=34) 33% 31% 32% 31% 20% 18% 16% 9% 14% 12% 0% 20% 40% Retail (N=32) Benefits Realized From B2B Cloud Networks – By Industry N=165 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Please indicate whether or not you actually accomplished or realized tangible benefits for each goal related to digital transformation efforts for B2B Cloud Networks within your organization’s supply chain. Improved productivity Reduced costs Increased visibility Improved service levels Increased agility Better product quality Improved business planning New supply chain capability Expanded market reach New products or services Something else
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All Rights Reserved. 19 Supply Chain Transformation Initiatives
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All Rights Reserved. 20 54% 31% 36% 24% 27% 22% 30% 24% 0% 10% 20% 30% 40% 50% 60% Lack of technology expertise Lack of bandwidth to explore possibilities Elusive business cases/ROI Current approach meets our requirements; no change necessary What's digital transformation? Don’t know where to start Difficulty in identifying the right partners Change management/personnel resistance N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Please describe the challenges you face in digitally transforming your supply chain today 7 54% Respondents said a lack of technology expertise was preventing them driving new DX projects Key Challenges to Support DX
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All Rights Reserved. 21 47% 43% 38% 32% 31% 30% 27% 26% 20% 19% 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Consolidating multiple IT systems Moving to the cloud Implementation of new digital backbone Hiring IT savvy workers ERP upgrade Technology outsourcing Process outsourcing Automation - i.e. adding sensors SCM upgrade Go to market changes New leadership N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 What steps are being taken to transform supply chain operations to be able to leverage new digital technologies and processes? 7 47% Respondents said they were consolidating multiple IT systems to support new DX initiatives Supply Chain Transformation Initiatives to Support DX
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All Rights Reserved. 22 66% 21% 13% Yes, we are considering it No we have not considered it Already using N=254 - Source: OpenText Digital Transformation in the Supply Chain Survey, IDC, December, 2016 Have You Considered Outsourcing B2B Integration? Has your company thought about using an outsourced or managed services approach to looking after your B2B infrastructure and capabilities? 7 66% Respondents said they were considering an outsourced approach to managing their B2B integration requirements
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All Rights Reserved. 23 How B2B Managed Services Supports Digital Transformation Initiatives
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All Rights Reserved. 24 Business Network Simplifies the inherent complexities in trading partner ecosystems, providing a single connection that digitizes all information flows, whether they are suppliers, customers, banks or other valued partners 24OpenText Confidential. ©2017 All Rights Reserved.
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All Rights Reserved. 25 The Cloud Simplifies Supply Chain Complexity
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All Rights Reserved. 26 Business Network Value Path Translate Integrate Manage Measure Analyze Predict Orchestrate Collaborate Comply Onboard Connect Transact Partner Optimize Innovate CUSTOMER MATURITY VALUE Increase automation Improve productivity Improve data quality Lower cost Reduce errors Focus on core business Speed time to market Improve customer satisfaction Gain 360-degree visibility Identify opportunities Spot, mitigate risks Avoid business disruptions Drive topline growth Differentiate Gain business agility Enable a ‘bi- modal’ supply chain Manage communities Improve customer engagement Improve procure-to- pay cycles Comply with mandates 26OpenText Confidential. ©2017 All Rights Reserved.
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All Rights Reserved. 27 B2B Managed Services is the management of your day- to-day B2B operations by a trusted, experienced partner What are B2B Managed Services?
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All Rights Reserved. 28 Benefits of an Outsourced B2B Approach Average 245% ROI from B2B Outsourcing B2B Outsourcing Value Study - Stanford University Global Supply Chain Management Forum Average of 20-40% Savings from B2B Outsourcing Total Cost of Ownership Study and Financial Model - Hobson & Company 96% Reported that Managed Services added significant value to their overall B2B integration programs B2B Managed Services Value & Trends Study - Stanford University Global Supply Chain Management Forum
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All Rights Reserved. 29 x B2B Managed Services Digitally enables the end to end supply chain through a combination of people, process and technologies Provides external B2B resources so that your internal IT resources can focus on new digital transformation initiatives Consolidates legacy B2B infrastructures onto a single, scalable and flexible cloud B2B platform Provides a highly available B2B integration platform that can enable a digital backbone across your business Offers Seamless integration to enterprise systems such as ERP, WMS and TMS platforms 29 www.opentext.com/b2bmanagedservices OpenText Confidential. ©2017 All Rights Reserved.
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