b2b 360°: a revolution in edi and api integration

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B2B 360°: A Revolution in EDI and API Integration

No Enterprise Is an Island

Every day, small and large organizations around the world increasingly rely on complex networks of partners, banks, vendors and customers to conduct business. Using B2B integration technology, these digital networks allow companies to manage, secure and optimize data transactions across all industries and in every corner of the globe.

To keep up with growing data volumes and an expanding number of networked partners — and to take advantage of emerging opportunities in cloud-based, mobile connectivity — companies are paying close attention to their B2B integration strategy. In fact, a major research firm predicts that by 2017, more than 66% of midsize to large businesses will implement some kind of B2B gateway, with 2/3 of integration budgets devoted solely to B2B integration at the edge of their enterprise firewall.

Depending on the nature of the B2B relationship between two parties, and the type of software and devices used, B2B data transactions can occur on any combination of channels: EDI, FTP, API, or REST/SOAP-based web services. However, this multi-channel B2B configuration is not optimal, because it consists of separate integration silos and each must be governed individually, incurring a higher total cost of ownership. For example: If a company’s B2B integration strategy includes an EDI silo and an API silo, it typically means:

� Higher costs of maintaining core infrastructure: Two silos require two separate systems, two support teams, two databases to manage – all of which drive up overhead.

� Greater risk of non-compliance with government standards or service-level agreements

(SLAs): Visibility into two systems is needed in order to meet government security protocols, provide accurate tracking and tracing of inventory, pass government audits, manage access rights, and more.

� Lost business: It takes longer to on-board partners and customers into the system and increases time to market. Complicated customer processing turns people away, and brand image and business relationships suffer.

Enterprises who have embraced and

benefited from the use of EDI and API

exchange channels as distinct silos are now

coming together into a single open space,

and demanding a single B2B solution that

will span the full 360° of this new and

expanding landscape.

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An ideal remedy in this case would be to consolidate the multi-siloed B2B environment into a single system that governs the flow of both EDI and API data transactions. Such a system would allow for centralized visibility into and across all data flows, accurate monitoring of business performance, and tighter security. It would also permit data to be monetized by making customer and partner engagement visible and measureable.

To appreciate how these two B2B integration channels can be brought together under a single governance model, it helps to understand how each works separately.

B2B via EDI: A Tried and True Methodology

Electronic Data Interchange (EDI) technology has been around since the early 1980s, although its adoption was first limited to large enterprises that could afford mainframes. Today, EDI formats such as EDIFACT, ebXML and EDIG@S are the de facto means of exchanging data in large industrial sectors such as transportation and logistics, distribution, manufacturing and utilities. Use of EDI is especially prevalent in supply chain processes such as order-to-cash and procure-to-pay, but has also found fertile ground in the government and healthcare sectors as an interoperability standard for exchanging customs, legal documents, health records and business-to-government reports. And banks exchanging corporate payables and receivables use EDI with their enterprise customers.

EDI provides a strict framework for well-coded business processes, where all parties agree on specific formats for exchanging invoices, purchase orders, advanced shipment notifications and other business documents. It also captures advanced rules for treating the content of, and relationships between, elements in a document — an invoice number or billed amount, for example. Such data would either be permitted to be exchanged, or prohibited from being exchanged, depending on these rules.

EDI is an entrenched technology in business today. Enterprises across many industries have invested significantly in EDI implementations, some of which use enterprise resource management (ERP) software that comes packaged with EDI-ready interfaces. The increasing demand for data exchange elasticity, scalability and dynamic growth, and a desire to cope with more partners, greater data volumes and emerging compliance protocols will continue to cement EDI as a strong business tool for the foreseeable future.

EDI has its limitations. Capable of only asynchronous interactions and confined by rigid adherence to universally accepted, standardized protocols, EDI technology alone will not enable companies to exchange data in a more open and mobile cloud environment, where more and more customers and partners will be conducting a greater share of their business. For that, they will need to rely on Application Programming Interfaces, or APIs.

B2B via EDI Solution at a Glance

Develop a successful EDI data

exchange solution for a company

engaged in global freight forwarding,

contract logistics and warehousing

processes spanning 60 countries.

Objectives

� Deploy one globally reliable B2B

data interchange system

� Improve supply chain processes

for customers in multiple vertical

industries to enable them to gain a

competitive advantage

� Develop enterprise-level best practices

for serving and integrating customers

� Comply with government and industry

regulations around the globe

Challenges

� Business growth relies on multiple

regional B2B silos

� Managing global customers regionally

strains customer service and leads to

IT management inefficiencies

� Global operational visibility into B2B

processes is lacking

B2B via EDI Solution Results

� Provides data integration for all

customers and partners

� Enables monitoring of key

performance indicators (KPI)

and SLAs

� Sends proactive alerts based on

business events and metrics

� Empowers teams through

self-service visibility

� Improves responsiveness and

lessens reliance on IT resources


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B2B via API: Open for Business

APIs are the rising stars of the vastly expanding web, mobile and cloud universe. Companies like Google, Expedia and Salesforce have mastered the science of APIs to develop and deliver a whole new genre of value-added content and services, accessible any time, by both businesses and individuals, at work or at play. Need information on a certain subject immediately? Type it into Google and see light-years of results in a fraction of a second. Booking a trip? Tap the Expedia app on a smartphone and get instant access to travel packages from providers the world over. Need to access data on sales contacts, call history or sales tools at a moment’s notice? Salesforce.com is ready to respond. APIs make all of this happen — one point of access, opening up an expansive array of results, destinations and opportunities for businesses.

Easily adoptable and secure, APIs enable development of fresh new revenue streams and services for companies in response to pressures exerted by their competitors operating in real time on the web. For example, to align with the Bank of Australia’s New Payments Platform (NPP), one of the country’s banks uses APIs to extend their services. Case in point: If a person is purchasing a car on the weekend and makes an initial payment, the bank’s system, using APIs in real time, not only detects a payment, but also knows it’s a payment on a new car and will transfer the registration to the new vehicle.

APIs allow new types of interactions and transactions by exposing program functionality to the outside world, enabling applications that share data and consume each other’s services. The concept is nothing new. During the last few decades, programs have tapped into APIs to integrate and connect modularly within traditional network boundaries. But the rise of web, mobile and cloud technology (hybrid integration patterns) demanded a more open, simple, yet secure integration standard to deal with an exceedingly broad and universal need.

The introduction of the Representational State Transfer (REST) allowed APIs to provide web services to the outside world using mobile apps. No longer seen as just an application and user-oriented (B2C) data exchange technology, REST has evolved to the point where it is being embraced by the IT community as a B2B-like exchange protocol. As interactions between businesses and consumers take place on an expanding variety of applications, devices and network channels, REST-based exchange patterns have provided the agility and consistency needed to make this happen. Customers, partners and employees now have access to business services and data anytime, anywhere, on any device and from any source.

REST-enabled APIs permit synchronous (real time) access and update of financial, customer, supplier and social data directly into business applications. Data consumers can then receive updates with virtually no latency period.

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REST APIs are supported by software development kits (SDKs), making them easy to develop. Growth in the API market has reached 50% annually, spurred by the likes of Netflix, Twitter, LinkedIn and other major companies, who have abandoned their OpenAPI strategy in favor of a more controlled B2B strategy. Part of this overall growth is due to companies applying more API integration to their B2B processes.

B2B via EDI versus B2B via API: What’s the Difference?

From a technical and business perspective, the main differences between EDI and APIs for B2B data exchange also complement each other and allow for a full B2B 360° solution.

B2B via EDI B2B via APIs

TECHNICAL ATTRIBUTES

Batch/semi-real time Real time

Typically asynchronous Synchronous

Defined service levels (non-repudiation, security, acknowledgement) No pre-defined service levels

Typically hundreds of transactions/sec Typically thousands of transactions/sec

Used with both messages and large files Used mainly with relatively small messages

Typically requires middleware on both B2B ends Only requires middleware on one end

Typical communication protocols : AS1/AS2/AS3/AS4, SFTP, FTPS, ebMS

Typical communication protocols: REST, SOAP WS

Typical message formats: XML, X12, EDIFACT Typical message formats: JSON, XML

Mainly for B2B integrationB2B integration, A2A integration, as well as Cloud/On-premise Hybrid integration

Governance is entrenched in EDI history Governance is a new trend, just started to be viewed as a must have

Installations are historically on-premise with a migration trend to the Cloud

Delivered equally on-premise and in Cloud


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B2B 360°: Bringing EDI and API Together

Despite the technical and applicability differences described above, it is clear that enterprises won’t be able to sustain two different channel silos indefinitely for their partner relationships. And they can’t just replace one with the other because they remain technically different and address different requirements. However, EDI and API can operate under one centralized B2B flow governance, thereby making the whole greater than the sum of the parts. The advantages of doing this are game changing. According to a leading analyst firm, centrally managing B2B projects via B2B gateway software:

� Gives companies economies of scale for implementing B2B interactions and deeper insight into the technical aspects of data integration, transaction delivery and process integration (such as consolidating, tracking, storing and auditing files, messages, process events, acknowledgments, receipts, errors and exceptions)

B2B via EDI B2B via APIs

BUSINESS ATTRIBUTES

Partner-oriented Application-oriented and user-oriented

Industry standards based Technical standards based

Business application friendly Mobile device friendly

Medium length deployment Fast deployment

Standardized message formats (orders, invoices, shipment notices)Driven mainly by standards bodies

Ad hoc message formats. EDI formats can be used in principle, but only applicable for basic implementations. Driven mainly by the service implementer

System of records System of engagement

Partner on-boarding requires a technical and business workflow Partner on-boarding is typically simpler

Services are well defined and do not evolve regularlyServices are defined via APIs, they require a full-fledged lifecycle management

Business agreements are often required Usage conditions are defined unilaterally by the APIs

SLAs are commonplace SLAs are not a top of mind issue

Typically used for order-to-cash and similar supply chain cycles, as well as multi-chain interoperability

Typically used for data and service exposure

Value is in efficiency in partner relations Value is in both partner relationship as well as service monetization

Owned by supply chain and IT departments Owned by Chief Digital Officer and IT departments

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� Provides a central repository for endpoint profiles and processes (valuable when dealing with large numbers of external business partners, and when multiple business units interact with the same partners or provision partners with similar processes)

� Provides more consistent support for various data formats, mappings, transports and communication protocols, and security standards

� Facilitates enhanced partner community interactions by enabling APIs (for example, post purchase order) that offer a streamlined alternative to sending, for example, electronic data interchange (EDI) documents

More and more businesses recognize the benefits of bringing what was once a multi-siloed data exchange proposition into a single governance model where EDI and API live side by side. Major EDI standard bodies are also complementing their EDI specification by adding API web services — ODETTE Autogration in the automotive sector, for example. Others, such as HL7 FHIR in the healthcare space, use REST and JSON. As the trend to use API alongside traditional B2B exchanges for file transfer continues to gain momentum, Axway has been paying attention.

Two Ways to Achieve B2B 360°

There are two methods that will help companies achieve B2B 360° with EDI and API. Which one they pursue depends on the type of industry they’re in, existing legacy platforms and the nature and evolution of their business.

1. API-enabled EDI platforms

APIs are used to open the EDI platform, allowing access to B2B services via other applications, portals and mobile apps.

2. Interoperable EDI and API gateways

A combination of EDI and APIs are applied to the same business transaction, such as tracking an item’s shipment using APIs after having ordered it through EDI.

Both cases give enterprises centralized visibility and control over their multi-channel B2B exchange strategy.

B2B via API Solution at a Glance

A Mobile Network Operator (MNO)

with over 90% population coverage

for 3G services, 4 million active

customers in the UK and over 20

million users worldwide, enabled

servicing and on-boarding of mobile

customers through third-party retail

sales channels. The company

used APIs to improve efficiency by

centralizing transactions with retail

channels to accelerate and secure

on-boarding of new customers.

API Solution:

� Centralize the exposure of services

� Centralize sensitive partner

information to provide transparency

and reduce waste of IT assets

� Adopt a federated Web Services

approach with a strong security

framework

� Establish a single platform for

service integration, development,

testing and production rollout to

reduce time-to-market

B2B via API Solution Results:

� Provides faster on-boarding of

partners which increases speed

to market

� Improves customer sign-up process

and efficiency

� Increases availability and improves

response rates and partner

experience, protecting valuable

revenue streams

� Enables monitoring and governance

to tailor the partner experience


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API-Enabled EDI Platforms

An EDI platform with API capabilities allows external applications — such as customer portals and mobile apps — to access all the EDI services using APIs.

REST APIs expose EDI platform services and unlock new “EDI as a Service” capabilities. EDI managers and partners get direct access to transfer-related information, through either a mobile application or access portal using the exposed APIs.

Web Mobile Cloud Identity

Applications Services Data

AXWAY B2B

EDI WS/API

Any to Any Protocol Mediation

According to IDC, “We expect to see

API Management more commonly

bundled as part of a B2Bi solution in

2015 and gradual adoption among

enterprises as use cases become

more common,” and named Axway

a “Disruptive Innovator” in its 2014

MarketScape for Worldwide B2B

Integration Gateway Software.1

1 IDC MarketScape: Worldwide Business-to-Business Integration Gateway Software 2014 Vendor Assessment (Doc #250741), September 2014

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API-enabled EDI:

� Allows authentication/authorization rights to use the APIs to be centralized with those of the EDI platform, allowing for a single point of user administration

� Provides flexibility to implement new types of customizable interactions � Simplifies and speeds up new business interaction implementations � Brings self-service qualities to the EDI interactions � Offers a single, unified on-boarding application � Reduces total cost of ownership by using a single team to manage a single consolidated gateway

� Exposes governance services and allows partners to build their own governance applications

� Centralizes security and simplifies identity and access management � Provides visibility into the on-boarding status of customers and partners

The combination of the EDI transaction processing and the exposure of APIs provide supply chain companies with new methods to reach their complex global communities. For example, the use of API technology supports mobile initiatives that will take the place of telephone, fax and email exchanges of orders.

In this scenario, companies have the ability to build mobile applications to interact with the suppliers or with the customers. An order can be placed with a supplier through traditional EDI technology, but the order is received by the supplier via their mobile application and acknowledged with a functional acknowledgement (FA) just like the rest of the tradition EDI orders are managed.

Conversely, a distributor in the field could place an order from their mobile device to their distribution partner and receive acknowledgement of that order in near real time while they are in the field with the end customer. These extensions of the traditional EDI exchange patterns open new revenue opportunities for the trading partners and are managed and monitored with the same transaction visibility and notification processes enabling greater control and data flow governance.

Interoperable EDI and API Gateways

B2B processes can involve complex, multi-party interactions where multiple types of messages, multiple exchange protocols, and multiple exchange channels are commonplace. This is especially true for wide order-to-cash processes involving custom declarations, invoice payment, and tracking of shipment. These B2B transactions can be API-based or EDI-based.

Examples of EDI-based transactions include the classical document exchanges such as purchase orders, shipment notices and invoices. Example B2B transactions via API REST/web services include traceability of shipment, exception handling on damaged items or interrupted process. B2B transactions that may use either EDI, web services or REST APIs, include customs declarations (such as manifest declarations) as a consumed service and customs response as an exposed service.


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Enterprise

Providers

Partners

German Customs

Japanese Customs

Suppliers

3rd Party Assistance

Warehouse

Finance

Supply Chain

Order, Invoice

Declaration Acceptance WS

EDI APISmall Partners

Warehouse Logistics3rd Party T&L

API GATEWAY EDI GATEWAY

Statistics APIs Delivery Tracking APIs

Export manifest declaration

API GATEWAY

Exception managementAPIs

EDI GATEWAY

A multiple combination of API- and EDI-based transactions work in concert to serve the same order-to-cash process.

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EDI standards have come a long way in helping small businesses use an integrated, interoperable EDI and API data exchange system, going so far as to define API access to EDI exchanges and thereby allowing enterprises to integrate 100% of their B2B partners.

API-based transactions can include complementary services that are not built into EDI standards — services that provide visibility into transport tracking, statistics on volumes, SLAs and error rates, for example. They also include interactive exception management such as transport cancellation and exception notification.

Single-Point Management of EDI and API

Managing multiple B2B exchange channels is a daunting prospect — and highly inefficient, from a technical, cost and competitiveness perspective. The rigid protocols of EDI technology, although stable and secure in B2B data transactions, won’t allow businesses to reach an increasingly sophisticated, mobile, I-want-it-now population of consumers. In contrast, APIs give companies the ability to engage customers and partners in the cloud and on mobile devices. They can provide visibility into supply chain processes and enable accurate real-time messaging and analysis of inventory availability, customer behaviors and other factors that can alert companies to changing business conditions and permit greater responsiveness. But, APIs don’t provide the security and reliable adherence to compliance standards that EDI affords.

By combining EDI and API into a single system, however, business partners can be centrally managed whether they use API or EDI data integration, or both. Security policies can be applicable to all B2B data flows regardless of the protocols they follow and the channels they stream through.

Centralized management enables single on-boarding of partners and updates their profile information and processing preferences through APIs. Corporations can maintain a single repository for all API and EDI partners, thereby avoiding data duplication, redundancies and obsolescence. It can house all B2B certificates, regardless of the protocol used, allowing authentication/authorization for all B2B channels. And centralized visibility of all types of B2B data flows SLA monitoring, business analytics, alert handling and others, can be combined into one system, giving businesses a competitive edge.

Clearly, the need to bring the flow of EDI and API data into a unified governing structure is growing as companies strive to capture a greater share of business and consumer markets, the boundaries of which are becoming increasingly blurred. The question now is this: Is there a trusted source who can deliver a combined EDI and API system? The answer is: Yes. Axway.

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The Best of Both Worlds with Axway

Axway is a leading provider of both EDI and API technology. Axway B2Bi, for example, is a proven B2B gateway solution for companies that need to manage data flow between their internal applications and B2B partners using EDI — on premises or in the cloud. It provides the visibility necessary find information about business-critical files and messages, and the analytics needed to be proactive, react to exceptions, and improve overall business processes and SLAs. B2Bi can replace or consolidate existing B2B and EDI capability and integrate transactions and processes with Oracle, SAP, Infor and other enterprise systems — all with easy partner on-boarding, high security and scalability, and built-in system administration.

In the API realm, Axway’s API Gateway is a foundational component in an API-first architecture for digital business. It offers enterprise-grade delivery and governance of web APIs that connect back-end applications and third-party systems, cloud apps, mobile devices and the Internet of Things (IoT). It also provides real-time operational monitoring and analytical reporting to give IT, business and operational users visibility into API usage.

Since Axway is a company that has been, and continues to be, in the vanguard of EDI and API technology development, we know how to help businesses get B2B 360° done right.Using Axway’s B2Bi and API Gateway products, enterprises get best-of-breed of EDI and API data integration capabilities. Both are designed to be interoperable and are the proven components needed to form a single system for governing the flow of data.

Only Axway provides API access to its B2B capabilities. This has been recognized by IDC, who named Axway a “Disruptive Innovator” in its 2014 MarketScape for Worldwide B2B Integration Gateway Software.2 Our breakthroughs in B2B data exchange using EDI and API allow customers to develop their own partner portal and connect to B2B channels via API for on-boarding capabilities, as well as user self-service functions.

For B2B integration solutions that deliver the visibility to govern the flow of data inside and outside the enterprise, only Axway delivers. Recognized by market analysts, our ability to combine EDI and API is an integral part of this B2B 360° vision. Axway solutions provide single-point visibility of all API and EDI flows — partner relationships, SLA, technical monitoring and others.

2 IDC MarketScape: Worldwide Business-to-Business Integration Gateway Software 2014 Vendor Assessment (Doc #250741), September 2014

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For more information, visit www.axway.comCopyright © Axway 2015. All rights reserved.

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Be Ready for Change

Spurred by the growing complexity of mobile networks and cloud connectivity — and the challenges and opportunities this presents — enterprises that traditionally relied on an EDI-only strategy to conduct business transactions must now reimagine the way they engage consumers and partners. Until now, the notion of merging EDI and API data exchange under a single management umbrella didn’t seem possible. But it is. It has to be. Because those enterprises who have embraced and benefited from the use of EDI and API exchange channels as distinct silos are now coming together into a single open space — and demanding a single B2B solution that will span the full 360° of this new and expanding landscape.

Bulk order transfer

EDIProtocols/Formats

Real-time lookups of order status,

inventoryCatalog view,

ordering

Finance Warehouse

AXWAY B2B

ERP

API WS/JSON

B2B 360° with

Axway B2Bi + API Gateway

� Mobile Integration

� Cloud Integration

� B2B Integration

� Application Integration

� Policy enforcement (authentication,

authorization, content filtering,

routing and more)

� Any-to-any format conversion

� Wide range of business and

application protocols

� Combine REST with traditional

integration patterns

� Synchronous end-to-end integrations

b2b 360°: a revolution in edi and api integration

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