Mark Morley, Industry Marketing Director

Review of High Tech Related Results From AMR Research ERP/B2B Study

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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 High Tech Participants

• 90% of respondents said they had experienced delays

with ERP projects due to B2B integration issues

• 56% said they were consolidating multiple disparate B2B

gateways on to a common integrated platform

• 37% of respondents said B2B integration staff were

supporting ERP related projects

• 30% of the data feeding ERP systems is sourced

externally

• 46% of respondents said they had lost B2B connectivity

• 74% of respondents had a no ERP downtime policy

• 79% of respondents have exceptions or problems on more

than 1% of inbound B2B transactions

• 74% 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 High Tech Participants

2 to 4 regional systems

Single global instance

Multiple instances across business units

and subsidiaries

One global instance per line of business

44%

28%

15%

13%

21%

51%

15%

13%

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 = 39 High Tech Respondents

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• 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

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Data Feeding ERP SystemsResponses from High Tech Participants

Generated internally

Generated externally

70%

30%

Customers/ distrib-utors45%

Supplier/ contract manufac-turers30%

3PLs14%

Other11%

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 = 39 High Tech Respondents

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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

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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 High Tech Participants

No54%

Yes46%

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

67%

44%

Importance/Effectiveness of Contingency Plan

Gap = 23% !

N = 39 High Tech 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

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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

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Basic testing of most obvious, common

tasks

Robust testing of common and obscure, less-

used functions

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

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Severity of Delays in ERP Projects Caused by B2B Integration Issues

Major issues were encountered which caused signif -icant delays

Minor issues were encountered which caused small delays

Minor issues were encountered, but caused no de-lays

No issues were encountered

23%

67%

8%

3%

Q. Which of the following best describes the issues you may have encountered with B2B integration which caused a delay to ERP projects currently underway or previously performed?

Delays in both B2B planning and integration can potentially cost companies in excess of

$45K a day or $1Million per month…..

N = 39 High Tech Respondents

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AMR 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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