Published on March 7, 2014
How to Keep SAP Projects on Schedule with OpenText GXS Managed Services
Agenda Introduction ERP/B2B Integration Study Keeping SAP projects on schedule with + OpenText GXS Managed Services Customer Examples Q&A OpenText Confidential. ©2014 All Rights Reserved. 2
Introduction Managing the integration of SAP and B2B systems is a complex process SAP and B2B projects are implemented across internal and external users Integrated SAP and B2B systems can help introduce significant operational efficiencies SAP B2B integration provides improved visibility into cross enterprise business processes OpenText Confidential. ©2014 All Rights Reserved. 3
Today‟s SAP Systems Need to Support Global Operations Regional Marketing & Finance Regional Marketing & Finance Engineering R&D Sales Engineering R&D Manufacturing Manufacturing Sales Global HQ Engineering R&D Manufacturing Back Office Manufacturing Back Office Sales Sales Global companies must manage a network of manufacturing, sales, marketing, engineering and finance centres OpenText Confidential. ©2014 All Rights Reserved. 4
ERP B2B Integration Study
Research Findings Validate ROI 3rd Party Validation from Leading Institutions ROI Study by Stanford University TCO Study by Hobson & Company Average of 245% ROI from B2B Outsourcing Average of 2040% Savings from B2B Outsourcing 84% of ERP Projects are Delayed due to B2B Issues Total Cost of Ownership Study and Financial Model conducted by Hobson & Company ERP Projects Create Significant Opportunities by AMR Research B2B Outsourcing Value Study conducted by Stanford University – Global Supply Chain Management Forum ERP Study by AMR Research Customer-Centric Study by SCMWorld 88% Believe B2B e-Commerce Strengths are Key to Growth ERP Projects Create Significant Opportunities by AMR Research Managed Services Trends Study by Stanford University 96% Reported that Managed Services Added Significant Value to their Overall B2B Integration Programs B2B Managed Services Value & Trends Study conducted by Stanford University – Global Supply Chain Management Forum OpenText Confidential. ©2014 All Rights Reserved. 6
Many Companies Need to Improve How They Integrate ERP & B2B 48 percent of respondents said they had lost B2B connectivity 34 percent of respondents said B2B integration staff were supporting ERP related projects 34 percent of the data feeding ERP systems is generated externally 29 percent of respondents said that they had to prematurely terminate B2B testing programs relating to external trading partners 79 percent of respondents have exceptions or problems on more than one percent of inbound B2B transactions 80 percent of respondents plan to move to highly consolidated ERP environments OpenText Confidential. ©2014 All Rights Reserved. 7
The Need for ERP to B2B Integration According to the research study there are a number of key drivers for integrating ERP and B2B systems Significant amounts of ERP data is sourced from outside a company Poor data quality can compromise the value on an ERP implementation Poor B2B integration limits visibility into key business processes High availability of external B2B communications is critical OpenText Confidential. ©2014 All Rights Reserved. 8
Externally Sourced ERP Data ERP uses information from various external sources Information can be sourced from customers, logistics providers and financial service institutions Information derived from different global standards can be difficult to manage Integrating trading partners to remote manufacturing plants can be a complex process On average 34% of data feeding an ERP system comes from outside the enterprise OpenText Confidential. ©2014 All Rights Reserved. 9
Data Quality Compromises ERP Value Externally sourced data is rarely checked before it enters an ERP system Once the information is within ERP, it will quickly spread across the enterprise Inaccurate data can affect downstream business processes Inaccurate data leads to incorrect electronic documents being created 79% of respondents said that more than 1% of transactions needed reworking OpenText Confidential. ©2014 All Rights Reserved. 10
High Availability in B2B is Critical Ensuring that B2B information is available 24/7 is crucial to the operation of an ERP environment B2B platforms ensure that externally sourced information can be used by internal business applications Lack of B2B information could lead to production line stoppages Business critical decisions need to be made in real time 48% of respondents said they had lost connectivity with their B2B system OpenText Confidential. ©2014 All Rights Reserved. 11
Program Management Integrating ERP and B2B requires constant monitoring to ensure that any problems are resolved efficiently Changes made to an ERP system may need to be incorporated into the B2B platform as well, or vice versa Must ensure that the ERP/B2B integration platforms is tested and deployed correctly 84% of respondents had experienced delays with their ERP B2B integration projects OpenText Confidential. ©2014 All Rights Reserved. 12
OpenText GXS Managed Services
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. 14
Benefits of Using B2B Outsourcing for ERP B2B Integration Projects Ensures projects remain on time and under budget with scalable resourcing and ERP best practices Achieves faster ROI from new modules and transaction types with rapid on-boarding of trading partners Less risk of connectivity loss impacting manufacturing operations with high availability architecture Improves data quality for 1/3 of externally originated information via ERP firewall OpenText Confidential. ©2014 All Rights Reserved. 15
Managed Services Environment OpenText Confidential. ©2014 All Rights Reserved. 16
B2B Helps to Establish an “ERP Firewall” Confirm Required Fields Confirm Valid Data Split Orders Translate Customer Data Consolidate Invoices Split by Payment Types Units of Measure Out of Sequence Documents Aggregate Account Balances Link Invoice to Payment Transform Carrier Codes Confirm Valid Data Conforms to Business Rules Confirm Required Fields Check within Tolerances Logistics Providers Financial Institutions Customers and Distributors Direct & Indirect Material Suppliers OpenText Confidential. ©2014 All Rights Reserved. 17
SAP Integration Expertise Significant Expertise – OpenText GXS has worked with over 100 companies to integrate their SAP and B2B systems together Extensive Experience with SAP Integration - Financials, Supply Chain Management, Advanced Planning and Optimization modules Connectivity Options - FTP over VPN or SAP ALE (certified) IDOC status messaging - provides immediate verification or error status Example SAP IDOCs Supported SHPMNT03 INVOIC01 PEXR2001 PEXR2002 FINSTA01 DELVRY01 ORDERS01 PROACT01 PRICAT01 TRXSTA01 OpenText Confidential. ©2014 All Rights Reserved. 18
SAP ALE Integration Customer Customer GXS OpenText GXS Managed Services Environment VPN/Private IP IDoc ALE tRFC/Socket Managed Services Enterprise Application Integrator SAP Status Messages 5/6,11/12,16/ 17 OpenText Confidential. ©2014 All Rights Reserved. 19
SAP PI Integration - ALE Customer OpenText GXS Managed Services Environment tRFC/Socket VPN/Private IP IDoc ALE PI Managed Services Enterprise Application Integrator SAP Status Messages 5/6,11/12,16/ 17 OpenText Confidential. ©2014 All Rights Reserved. 20
SAP PI Integration - Adapters Customer Customer GXS OpenText GXS Managed Services Environment AS2 or SFTP Internet IDoc SMG PI Managed Services Enterprise Application Integrator SAP Status Messages 5/6,11/12,16/ 17 OpenText Confidential. ©2014 All Rights Reserved. 21
How Can B2B Managed Services Keep SAP Projects on Schedule?
Provide a Highly Available Platform SAP systems need to be able to receive information from external trading partners on a 24/7 basis.... Managed Services operates across a high, 99.95% available, B2B infrastructure with regional data centres having built in redundancy, disaster recovery and fail-over capabilities OpenText Confidential. ©2014 All Rights Reserved. 23
Implementing Document Maps SAP/B2B integration projects can require numerous document maps to be created and maintained on an ongoing basis.... Managed Services provides extensive any-to-any mapping services and can provide support for many different types of SAP IDOCs. OpenText Confidential. ©2014 All Rights Reserved. 24
Connectivity with SAP SAP systems need to be connected to numerous trading partners using many different global connectivity standards…. Managed Services can mediate between any communications standard and provide direct SAP connectivity via SAP ALE and SAP PI. OpenText Confidential. ©2014 All Rights Reserved. 25
Managing Trading Partner Communities SAP/B2B integration projects require fast on-boarding of trading partners, anywhere in the world..... Managed Services provides a comprehensive community on-boarding service to allow trading partners of any size or technical capability to be able to connect to a B2B Platform. OpenText Confidential. ©2014 All Rights Reserved. 26
Proactively Monitoring Data Quality All external data needs to be checked for accuracy and conformance before entering an SAP system..... Managed Services provides proactive monitoring of all transactions so that if a problem is detected it can be resolved before the customer or supplier is impacted. OpenText Confidential. ©2014 All Rights Reserved. 27
Program Management The complex nature of SAP/B2B integration projects requires skilled resources to keep these projects on schedule..... Managed Services offers dedicated program managers who monitor the progress of the SAP/B2B projects and address any integration issues as they arise. OpenText Confidential. ©2014 All Rights Reserved. 28
Provide Global Support Today‟s SAP environment‟s cover multiple plants located in many different regions of the world..... Managed Services offers a 24/7 multi- lingual support service so that problems can be addressed as quickly as possible, anywhere in the world. OpenText Confidential. ©2014 All Rights Reserved. 29
North American Tier 1 Auto Supplier Customer Case Study – OpenText GXS Managed Services Company Overview Business Issues Needed to reduce operational costs across their global business due to divestiture and competing in a tough economic environment Wanted to fully integrate their B2B platform to a new e-payments solution and an ERP system which was being deployed globally Solution Deployed Managed Services was deployed to implement over 600 maps and This Tier 1 Automotive supplier is one of the largest in the industry they supply all the major OEMs around the world. They have $16billion in revenue and have nearly 147,000 employees across 150 manufacturing sites, 53 customer centers and 33 technical centers across 38 countries. provide global connectivity to over 3000 partners Full integration with SAP to allow publication of SAP IDOCs Provision of Program Managers to co-ordinate the expected 150 change requests per quarter Business Benefits Obtained 95% reduction in personnel across their global EDI support team Allowed the development of a new order processing system which was based on a common B2B platform, allowing all global functions and partners to be seamlessly integrated together OpenText Confidential. ©2014 All Rights Reserved. 31
Australian Aftermarket Parts Retailer Customer Case Study – OpenText GXS Managed Services Company Overview Business Issues They needed to find a cost effective way to manage their ever expanding supply chain and product offerings They wanted all documents to be transmitted electronically across their supply chain Solution Deployed Managed Services and Intelligent Web Forms are used to manage the This company is a non franchised retailer of national and own brand automotive products. They operate 200 retail stores in Australia and New Zealand, offering nearly 10,000 products. They have nearly 700 suppliers and they also contract ten agents in China representing 300 factories. on boarding of over 700 suppliers Integration with their SAP environment allows them to transmit purchase orders and other forms of IDOC documents. The IDOCs are then translated to XML for transmission to Chinese shipping agents Business Benefits Obtained Automate extensive manual based processes and provide a means for all suppliers to trade with them electronically Visibility across the supply chain has improved, and provides a more “efficient, growth driver instead of a resource drain” OpenText Confidential. ©2014 All Rights Reserved. 32
European Industrial Equipment Manuf. Customer Case Study – OpenText GXS Managed Services Company Overview Business Issues Extensive mergers and acquisitions had seen the need to consolidate numerous EDI platforms and back office business systems Needed to improve end to end visibility and tracking of business transactions and support for multiple languages/document types Solution Deployed Managed Services was deployed to help consolidate multiple EDI This company is one of the world‟s largest producers of construction and agricultural equipment. Formed from a merger of several large industrial companies, this company has 33,800 employees, operating across 170 dealers and 37 manufacturing plants around the world. In 2012 they had just over $20billion revenue platforms on to one, seamless global B2B platform OpenText GXS provided full integration to a new Oracle based Transport Management System and SAP based ERP environments Managed the global on-boarding of existing and new suppliers Business Benefits Obtained Provided scalable, flexible resource to support this company‟s global B2B activities across multiple countries, supporting many standards Support for ASNs and e-Invoicing helped to improve visibility of transactions and payment to its suppliers around the world OpenText Confidential. ©2014 All Rights Reserved. 33
OpenText GXS Differentiation SAP Integration 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 integrated SAP/B2B environment Community Management • 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 and after the SAP/B2B integration has taken place Data Cleansing • Provides a number of methods to interrogate externally sourced data and check for accuracy against known data analysis rules and criteria • Ensures that information sourced from external trading partners is checked and cleaned before entering an SAP system Global Connectivity/ High Availability • Supports the industry’s broadest range of communications protocols • B2B environment runs on a highly available infrastructure • Trading Partners can be connected irrespective of their technical capability • Ensures that B2B transactions can flow smoothly 24/7 Global Support / Program Management • Multi-lingual 24/7 ‘follow the sun’ helpdesk support • Proactive event monitoring and tailored escalation processes • Provision of a program manager for the duration of outsourcing project • Users across the extended enterprise can be supported and monitored much more easily • Change requests can be dealt with more efficiently and SAP & B2B systems remain synchronized OpenText Confidential. ©2014 All Rights Reserved. 35
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