automotive results from amr research erp b2b study
DESCRIPTION
This presentation discusses the automotive related results from a study conducted in late 2009 by the analyst firm AMR Research. The study looked ERP/B2B integration and the importance of having these two environments seamlessly integrated together. Updated April 2013TRANSCRIPT
Mark Morley, Industry Marketing Director Mark Morley, Industry Marketing Director
Review of Automotive Related ResultsFrom AMR Research ERP/B2B Study
Review of Automotive Related ResultsFrom AMR Research ERP/B2B Study
Slide 2 | © 2013 GXS, Inc.
The Need for ERP to B2B Integration
• There are a number of key drivers for integrating ERP and B2B systems
– Significant amounts of ERP data is sourced from outside a company
– Data quality compromises ERP value
– Poor B2B integration limits visibility into business processes
– High Availability in B2B is critical
Slide 3 | © 2013 GXS, Inc.
ERP & B2B Integration Study
Dennis GaughanJim Shepherd
Program Goals– Build awareness of the importance of B2B outsourcing
with respect to the success of ERP related projects– Understand why B2B integration is so critical to the
success of ERP projects– Find out why B2B outsourcing is such a compelling
proposition for manufacturers
Study Topics– ERP systems cannot function properly if B2B systems
are down and no information can come in from external trading partners
– ERP is handicapped if external data is of poor quality– ERP ROI is limited if ERP projects are delayed
Slide 4 | © 2013 GXS, Inc.
AMR Research ERP/B2B StudyResponses from Automotive Participants
• 89% of respondents said they had experienced delays
with ERP projects due to B2B integration issues
• 61% said they were consolidating multiple disparate B2B
gateways on to a common integrated platform
• 32% of respondents said B2B integration staff were
supporting ERP related projects
• 40% of the data feeding ERP systems is sourced
externally
• 79% of respondents said they had lost B2B connectivity
• 82% of respondents had a no ERP downtime policy
• 79% of respondents have exceptions or problems on more
than 1% of inbound B2B transactions
• 75% of respondents said they would be enforcing higher
levels of data quality from their trading partners
“As management teams focus on the need for systems and processes to support an integrated global business, the importance of the relationship between ERP and B2B becomes critical”
AMR Research 2009 Responses in red were the highest of the industry sectors surveyed
Slide 5 | © 2013 GXS, Inc.
ERP DeploymentResponses from Automotive Participants
2 to 4 regional systems
Single global instance
Multiple instances across business units
and subsidiaries
One global instance per line of business
46%
11%
21%
21%
43%
21%
21%
14%
Today In 3 Years
Q. Which of the following best describes your current ERP deployment?Q. Which of the following best describes what your ERP deployment will look like in 3 years?
N = 28 Automotive Respondents
Slide 6 | © 2013 GXS, Inc.
• 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 difficult
Externally Sourced ERP Data
Slide 7 | © 2013 GXS, Inc.
Data Feeding ERP SystemsResponses from Automotive Participants
Generated internally
Generated externally
60%
40%
Customers/ distributors34%
Supplier/ contract manufacturers
38%
3PLs19%
Other9%
Data feeding ERP systems* External data feeding ERP system
Q. What percent of the data feeding your ERP system is generated internally vs. externally?
Q. What are you plans for technologies to support workforce management and procedures in the next 2 years?
N =28 Automotive Respondents
Slide 8 | © 2013 GXS, Inc.
External Transactions Requiring Exception Handling or Rework
Less than 1%
1-2%
3-4%
More than 5%
21%
33%
26%
20%
79% of respondents said that more than 1% of transactions needs reworking
If a company processes 1 Million transactions per year this represents 10,000 transactions that will need reworking
Q. What percentage of the transactions originating from external trading partners which are processed directly into your ERP system require exception handling or error processing?
Extensive Rework
N = 121 Total Respondents
Slide 9 | © 2013 GXS, Inc.
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 to allow
operations to run smoothly
Slide 10 | © 2013 GXS, Inc.
Loss of B2B ConnectivityResponses from Automotive Participants
No21%
Yes79%
Loss of B2B connectivity
Q. Has your company every experienced a loss of B2B connectivity that has impacted your manufacturing operations?
Q. How important/effective is your company’s contingency plan for mitigating risk of losing B2B connectivity to manufacturing operations?
Importance
Effectiveness
71%
43%
Importance/Effectiveness of Contingency Plan
Gap = 28% !
N =28 Automotive Respondents
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Policy for no Scheduled ERP Downtime
No26%
Yes74%
Q. Does your company currently have a policy for no scheduled ERP downtime for the end of quarter sales periods?
Food & Bev-erage (n=32)
High Tech (n=39)
CPG (n=32)Auto (n=28)
63%74%77%82%
38%26%23%18%
No Yes
Industry
N =121 Total Respondents
Slide 12 | © 2013 GXS, Inc.
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
Slide 13 | © 2013 GXS, Inc.
Basic testing of most obvious, common
tasks
Robust testing of common and ob-
scure, less-used func-tions
Testing efforts were terminated prema-turely to meet ex-
ternally imposed go-live deadlines
35%
48%
17%
Testing Approach on ERP Projects with B2B Integration
Q. During the course of your ERP projects that included significant B2B integration, which of the following best describes the testing approach performed with internal participants and external trading partners?
36%
35%
29%
Internal Participants External Trading Partners
N =121 Total Respondents
Slide 14 | © 2013 GXS, Inc.
Severity of Delays in ERP Projects Caused by B2B Integration Issues
Slide 15 | © 2013 GXS, Inc.
Research Study Conclusions
• Most of the companies in the survey base have major ERP projects
planned or in progress
• B2B Integration is frequently the cause of expensive delays in ERP
implementation projects
• ERP projects often drive new B2B initiatives and significant changes in
strategies and vendor preference
• B2B components receive less rigorous testing than internal ERP
functions and during project delays B2B integration testing is
frequently cut short to facilitate go-live dates
• ERP consolidation/upgrade projects create disruption and
consolidation opportunities for B2B
Slide 16 | © 2013 GXS, Inc.
Thank You
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