Published on March 7, 2014
OpenText GXS Managed Services – Managing B2B Following Divestiture
Introduction The global economy continues to go through an unprecedented period of change Companies in all industry sectors are restructuring and streamlining their operations Divesting operations allows companies to rethink their corporate strategies Divestitures provide the ideal opportunity for companies to re-evaluate IT and B2B strategies and re-focus on core competencies OpenText Confidential. ©2014 All Rights Reserved. 2
Divesting an Operation can be Complex It will impact all areas of a business... Divested Operation Global Office Locations IT and B2B Infrastructure ERP CRM ERP CRM Manufacturing Plants Distribution Network Retail Network OpenText Confidential. ©2014 All Rights Reserved. 3
Which B2B Direction Do You Take? Following divestiture of a company or business unit, there are three possible directions a company could take for managing their future B2B requirements: Continue to use existing B2B platform Implement and manage a brand new B2B platform Outsource the management of the entire B2B platform to a trusted partner OpenText Confidential. ©2014 All Rights Reserved. 4
Typical B2B Activities Following Divestiture Document Mapping – potentially hundreds of document maps will need to be transferred from the parent company to the newly divested operation ERP Integration – ERP integrations from the parent company will have to be re-established in the new operation Legacy Platform Upgrade – could provide the ideal opportunity to introduce new B2B technologies to the divested operation Trading Partner Management – trading partners will need to be managed during and after the divestiture has taken place Global B2B Support – Loss of support from a parent organisation means that global B2B support services will have to be provided to maintain global trading capabilities OpenText Confidential. ©2014 All Rights Reserved. 5
Document Mapping Following divestiture, companies have one of three options with respect to document maps Transfer Existing – To migrate the existing maps from the parent company into the divested operation ‘as is’ Transfer & Modify – To migrate the existing maps from the parent company and modify maps as required to suit the divested operation’s new business processes Develop New Maps – The divested operation may decide to take the opportunity to start from a clean sheet and develop totally new maps. This provides an opportunity to consolidate and streamline B2B processes These options will mean significant disruption for the divested operation OpenText Confidential. ©2014 All Rights Reserved. 6
ERP Integration ERP platforms can be difficult to integrate to a divested B2B platform Personnel with ERP related skills may reside with the parent company The divested operation may need support to manage global instances of an ERP platform Separation from the parent company seen as an opportunity to develop a fully integrated ERP/ B2B platform for the first time OpenText Confidential. ©2014 All Rights Reserved. 7
Technology / Legacy Upgrade Following a divestiture, companies may see this as an ideal opportunity to upgrade from legacy B2B platforms and technologies Upgrading to new technologies allows the divested operation to develop a flexible B2B platform that can grow as the company grows Provides opportunity to develop a more robust B2B platform with increased availability/reliability OpenText Confidential. ©2014 All Rights Reserved. 8
Trading Partner Management Following divestiture it is important to maintain continuity of trading partner relationships The divested operation will need to work out a strategy for managing trading partners in different locations around the world Trading partners will require ongoing training, development and support with the divested operation’s new B2B platform OpenText Confidential. ©2014 All Rights Reserved. 9
Global B2B Support Providing global B2B support for all users across an extended enterprise can often be the most difficult area to manage following divestiture For global operations, 24x7 multi-lingual support will be required across multiple time zones The divested operation will need to manage regional document, connectivity and industry specific B2B standards around the world OpenText Confidential. ©2014 All Rights Reserved. 10
OpenText GXS Managed Services Over Two Decades of B2B Innovation & Global Experience Recognized #1 global integration provider Pioneer, change agent & visionary leader Largest base of 600+ Managed Services worldwide customers Most extensive industry experience Retail, CPG, Manufacturing, Automotive, Hi-Tech, Telecom, Financial Services Unique service competencies Global, B2B integration cloud Broad mapping/translation services for any document type B2B Enterprise Community Management—Active Community B2B Expert Operations working for your success OpenText Confidential. ©2014 All Rights Reserved. 11
B2B Managed Services People, Process and Technology for Success Managed Services Environment OpenText Confidential. ©2014 All Rights Reserved. 12
OpenText GXS Differentiation Divestiture Requirements OpenText GXS Solution Value Business Value to Customer Document Mapping • Expertise in wide variety of cross industry and regional standards • Network based translation using GXS award winning translator technology • Provides extensive ‘any to any’ mapping skills and allows consolidation/seamless creation of new maps to suit the divested operation Integration to ERP Systems • Extensive experience with ERP integrations, over 100 projects to date • Managed Services platform is fully certified for SAP Netweaver integration • Allows the divested operation to have full integration between their B2B and ERP platforms, thus providing a common view of enterprise information Management of Trading Partner Relationships • Full education, communication and testing of trading partners • Local on-boarding in 30 countries with 20 languages • Trading partners, in any region of the world, can be managed effectively both during the transition phase and after the operation has been fully divested Provision of Global Support • Multi-lingual 24/7 ‘follow the sun’ helpdesk support • Proactive event monitoring and tailored escalation processes • Users across the extended enterprise can be supported and newly created B2B processes to support divested operation can be effectively monitored Technology / Legacy Upgrade • Flexibility to integrate a diverse range of trading partners • Provision of a reliable and highly available B2B trading platform • Adoption of latest B2B technologies provides a flexible platform for growth, ie as company grows, B2B platform can grow effortlessly with it OpenText Confidential. ©2014 All Rights Reserved. 13
European Automotive OEM Customer Case Study – OpenText GXS Managed Services Company Overview Business Issues This company was divested from their parent company in early 2008 They had a requirement to establish their own B2B infrastructure Following divestiture they needed to maintain continuity of operations and on going management of their global suppliers Solution Deployed Managed Services was deployed to allow this company to outsource This company is one of the world’s leading manufacturers of luxury, sports and off road vehicles. They manufacture their vehicles at multiple sites across the UK and have plants in India and a joint venture operation in China. They have revenues of nearly $16billion and have 25,000 employees around the world. the management of its entire B2B environment OpenText GXS managed on-boarding of 1000 EDI suppliers in North America and Europe, provided mediation between global standards Platform has been extended to support a new engine plant Business Benefits Obtained Chose OpenText GXS for its future proof B2B solutions, global capabilities and many EDI suppliers were already connected to GXS Trading Grid Provides a flexible and scalable solution to allow for future growth B2B environment can be integrated to an ERP system at a later date OpenText Confidential. ©2014 All Rights Reserved. 14
Chinese Television Manufacturer Customer Case Study – OpenText GXS Managed Services Company Overview Business Issues Following divestiture from their parent company they were given a six month transition period to establish their own B2B environment They had to find a way of establishing the new B2B environment without impacting their business Solution Deployed Managed Services to provide support for nearly 350 maps. One third This company was formally part of a large electronics manufacturer, they were divested in 2005. The divested operation went on to form a joint venture with a Chinese television manufacturer. Headquartered in Guangdong, China, this company had $11.2billion in 2012 and has 50,000 employees. were transitioned from the former company, another third were moved and modified and the final third were completely re-written Provided implementation support for the roll out across 11 countries and supported their RosettaNet based transaction requirements Business Benefits Obtained New maps were implemented in a relatively short time period which minimised any disruption to their business and associated trading partner community New B2B environment was delivered within the agreed transition period and more importantly to budget OpenText Confidential. ©2014 All Rights Reserved. 15
European Chocolate Manufacturer Customer Case Study – GXS Managed Services Company Overview Business Issues This company was divested in 2007 for $850 million and is now owned by one of Turkey’s largest consumer products goods manufacturers Shared their former owner’s B2B systems for a period of time, however financial penalties were imposed after an agreed date Solution Deployed This company has grown to become one of the world’s leading producers of quality Belgium chocolates. Their chocolates are distributed in over 80 countries around the world, with over 600 boutiques in North America alone. This company has annual revenues of around $600 million a year. Managed Services was deployed to help consolidate 150 maps down to 55 new maps Their new B2B environment provided support for 100 trading partners across 80 countries around the world Business Benefits Obtained Map consolidation project helped to significantly reduce the complexity of their global B2B environment Managed Services enables this company to provide much better support to their global network of trading partners Improved support for global B2B standards allows this company to work with customers anywhere in the world OpenText Confidential. ©2014 All Rights Reserved. 16
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