This presentation discusses how B2B Managed Services can benefit SAP related integration projects. The first part of this presentation reviews the results from a recent ERP related integration research study conducted by AMR Research (Gartner). The second half of the presentation discusses how B2B Managed Services can help companies keep their SAP related integration projects on schedule. Updated May 2014
One of the biggest challenges facing companies today is trying to integrate a broad cross section of different users, especially those users that may be located in different countries around the world.In recent years many companies have globalised their operations, opening new manufacturing plants in the Far East and establishing new sales offices and distribution centers in new markets. Many companies have implemented multiple instances of ERP systems around the world and a typical ERP related project being undertaken today is to try and consolidate multiple ERP instances into a single instance that can be shared by everyone across the extended enterprise. Many B2B platforms have users or trading partners around the world and in many ways it makes sense to try and obtain operational synergies by integrating ERP and B2B platforms together. Consolidating multiple ERP instances for example provides the ideal opportunity for B2B integration. So we have already talked about consolidation of ERP instances, but what other types of ERP related projects would make good B2B integration opportunities?
To try and get a better understanding of how companies were integrating their ERP and B2B systems and to get a better appreciation of the day to day problems encountered with operating these environments, GXS sponsored a study with a research analyst firm.The study had around 120 respondents from the Retail, CPG, Automotive and High Tech industry sectors. The aim of the study was to ultimately prove that the success of many ERP projects can be directly associated with the level of integration that exists with their respective B2B platform.Some of the key findings from the study are shown on this slide, two results that I would like to draw your attention to was that the respondents said that on average 34% data feeding ERP systems was sourced from outside the enterprise and 79 percent of respondents said that they had exceptions or problems on more than one percent of inbound B2B transactions. I will expand on these results in more detail in a moment, but what types of ERP projects are companies embarking on today?
Many companies under estimate why they should consider integrating their ERP and B2B platforms. This could be due to the fact that traditionally, ERP and B2B systems have been implemented by different IT teams.As highlighted on the previous slide, as much as a third of ERP related information is sourced from outside the organisation. This could be from a variety of suppliers, logistics partners and other third parties.Information fed into an ERP systems, especially when sourced from outside the organisation, is often inaccurate. This could lead to further downstream problems once this inaccurate data starts to spread across the extended enterprise.Management teams require up to date, real time information on the performance of their business in order to make operational decisions. Finally, integrating to global ERP instances can be challenging due to the need to work across different time zones, different languages and having to rely on different IT and communication infrastructures around the world.
ERP systems use information from a variety of external sources, for example distributors, logistics providers and financial services institutions. This information could originate in numerous business systems and could have been created using different industry related standards.Due to the global nature of many companies there are constant challenges with on boarding suppliers and getting them integrated to a company’s ERP platform. The on-boarding capabilities of a vendor such as GXS can really help to accelerate the speed with which new trading partners are on-boarded. Irrespective of their technical capabilities, GXS can ensure that trading partners have the correct electronic trading capability in place and at the same time provide a seamless integration to the ERP system.
As ERP systems receive information from a variety of external partners there is an increased chance that unchecked, inaccurate data could enter an ERP system. Quite often, information from external sources is not clean enough to be processed correctly by the ERP system. This will quite often lead to manual rework of the incorrect information to try and make it compliant.If unchecked information is allowed to enter an ERP system then there is a chance that it could spread into other business systems leading to inaccurate information being used across the extended enterprise. A simple mismatch of part numbers for example could lead to incorrect electronic documents being created which could result in delayed payments to suppliers.
For many companies, having access to real time information from outside the enterprise and ensuring that the platform is available 24/7 is crucial to the operation of their business. B2B platforms ensure that information from outside the organisation can be used efficiently by internal business applications such as ERP systems. If there is an interruption to the flow of transactions from outside an organisation then the internal business systems can be severely affected. For example many high tech manufacturers insist that their B2B infrastructure does not go down near the end of a quarter so as not to affect the processing of sales related information. In another example, if a car manufacturer does not receive an advanced shipping notice from their supplier to notify them that parts are on their way to a factory then this could have downstream implications as well, for example shutting down a production line. Many companies need to make business critical decisions in near real time and therefore ensuring that transactions from external business partners gets through to an ERP system without delay or interruption is extremely important.
ERP / B2B integration requires an immense amount of co-ordination across the extended enterprise. Ensuring that maps are created correctly, trading partners are all connected properly and more importantly, any changes made to the ERP system are reflected in the B2B system as well. To achieve an integrated platform implies that any changes made to one system will be reflected in the other or vice versa. During an ERP / B2B integration process numerous change requests will be issued to modify one or other of the systems. This change management process needs to be managed and monitored efficiently otherwise the implementation of the project can be significantly delayed.Having a dedicated program manager look after the implementation can be a worthwhile investment, they not only ensure that valuable IT related resources are being used effectively, they will also ensure that the project comes in on time and more importantly to budget. Program managers will undertake a number of roles to ensure that ERP to B2B integration projects go as smoothly as possible. Their role will include looking after the day to day communication with a community of trading partners and ensuring that trading partners can support new transaction types, data quality rules or KPIs to measure performance. Finally, they also offer support for testing and looking after the overall release and deployment of the newly integrated platform with the customer.
From a B2B outsourcing perspective GXS is very well positioned to help companies improve their ERP / B2B integration projects.B2B outsourcing allows a company to utilise external resources on a scalable basis so as an integration project becomes more complicated or has to encompass different geographical sites then more resources can be pulled into the project as required. Many companies have regarded third party outsourcing vendors such as GXS as an extension of their own IT departments.B2B outsourcing allows trading communities and any associated on-boarding process to be managed and implemented much more efficiently. This allows ROI on ERP projects to be achieved much more quickly when new modules or transaction types have to be implemented across a trading community.B2B outsourcing can lead to less risk of connectivity loss due to greater investment in high availability infrastructures offered by vendors such as GXS.B2B Outsourcing has the capability of wrapping a company’s ERP applications with an ERP firewall thus allowing externally generated information to be checked before it enters the ERP system.
One of the main benefits of integrating an ERP and B2B system is that it is then possible to establish what can best be described as a firewall around a company’s ERP system. The aim of this is to protect the ERP system and ensure that incorrect data does not enter the ERP environment. Whether you are trying to protect your ERP system from information being sent in by customers, distributors, logistics providers, suppliers or financial institutions, integrating to a B2B system can provide a higher level of security around your ERP applications and downstream business processes. GXS Active Intelligencesolution helps to protect your ERP related systems by ensuring that only clean and accurate information that obides by predefined business rules and checking procedures is allowed to enter your ERP environment.
GXS has worked with many companies to help integrate their SAP and B2B systems. Over this time we have acquired an extensive knowledge of working with SAPGXS is fully certified for SAP Netweaver integrations and we have worked on nearly 80 SAP related integration projects to date. We have implemented maps to support numerous types of SAP IDOCs, for example invoices, delivery notes and shipping information documents. We also have experience of integrating to numerous SAP modules including financials, supply chain management, advanced planning and optimization modules.SAP is the most popular ERP system used in the manufacturing sector and we have seen an increasing trend in the number of enquiries from companies who are looking to integrate their ERP and B2B platforms via a Managed Services offering.I will leave Bob to discuss the more technical aspects of our integration with SAP in a few moments time.
From an Expert Outsourcing perspective, GXS can help companies manage the integration needs of their ERP/B2B projects. GXS has helped to integrate many ERP/B2B systems around the world and we have been able to develop a valuable best practice knowledge base for deploying such projects. From an ERP/B2B integration perspective, GXS Managed Services can offer the following....Document Mapping – GXS has expertise in a wide variety of cross industry and regional standards and we can provide network based translation using GXS’ award winning translator technology This provides extensive ‘any to any’ mapping skills and allows the creation of new maps to meet the requirements of the integrated ERP/B2B platform From an SAP perspective we have broad ranging experience of mapping between B2B documents and various different IDOC formatsCommunity Management – Full education, communication and testing of trading partners and provide local on-boarding in 30 countries with support for 20 languages Trading partners, in any region of the world, can be managed effectively both during and after the ERP/B2B integration has taken placeData Cleansing – Provides a number of methods to interrogate externally sourced data and check for accuracy against known data analysis rules and criteriaEnsures that information sourced from external trading partners is checked and cleaned before entering an ERP systemGlobal Connectivity/Highly Available–Provides multiple, global connectivity options and supports the industry’s broadest range of communication protocolsProvides a highly available B2B infrastructure and Trading Partners can be connected to our Trading Grid infrastructure, irrespective of their technical capabilityGlobal Support / Program Management – Multi-lingual 24/7 ‘follow the sun’ helpdesk support which offers proactive event monitoring and tailored escalation processes. Users across the extended enterprise can be supported and monitored much more easilyA dedicated program manager is provided for the duration of the ERP/B2B project and any potential change requests can be dealt with more efficiently thus allowing ERP & B2B systems to remain synchronized