john konczal – industry executive, communications &...
TRANSCRIPT
John Konczal – Industry Executive, Communications & Media, B2B & Commerce, IBM Software Group
Russell Longo – Account Executive, Business Solutions, IBM Software GroupRussell Longo Account Executive, Business Solutions, IBM Software Group
Business-to-Partner Integration and CollaborationManaging Operational Complexity to Capitalize on New Revenue Opportunities
Tools of Change for Publishing, NYC, February 16
© 2010 IBM Corporation
Session Agenda
Investigate the growth in sales channel partnerships in publishing and how this growth is impacting publishers’ operational infrastructure for transacting sales through these partners:
• What is driving this growth
• The implications of this growth on the business
• Capabilities needed to manage this growth
• How digital sales models are complicating this issueHow digital sales models are complicating this issue
• Capabilities needed to manage new digital sales models
© 2010 IBM Corporation2
IBM is looking at how publishers can enable “smarter commerce” processes and practices to drive new revenues
SMART ISEmbracing ne c stomer b ing
SMART ISUsing m ltiple medi ms to deli er o r Embracing new customer buying
models for your customersUsing multiple mediums to deliver your content to your customers
SMART ISSMART IS SMART ISOptimizing and expanding the use of traditional and digital sales channels
SMART ISEfficient marketing across allmediums
© 2010 IBM Corporation3
The Importance of Sales Channel Partnerships in Publishing
Successful publishers will be those that have created ambidextrous and agile organizations that:
– Build revenue streams from multiple points: direct sales and in-direct sales (retailers and e-retailers)
– Manage business relationships with channel partners in a flexible manner
© 2010 IBM Corporation4
Sales Channel Partnerships are Expanding Exponentially
Physical and DigitalLocal and GlobalSmall and Large
Manual or Automated
Item CatalogsPurchase OrdersReturn Requests
© 2010 IBM Corporation5
qDigital Sales Data
Settlements Invoices
Business Issues Channel Expansion Creates
The Business to Partner Integration Challenge:The Business-to-Partner Integration Challenge:How do I connect to these to these partners?How do manage their unique requirements?
How do I ensure our date exchange is accurate and timely?
© 2010 IBM Corporation66
How do I ensure our date exchange is accurate and timely?How do I scale my operations profitably?
Our research shows that B2P Integration is a Big ConcernThe business needs more!
Communications Media
Service ProvidersWhat the business wants!What the business wants!
Companies are not satisfied!
© 2010 IBM Corporation7
What the Business Wants!
Increased Effectiveness of B2P Integration Efforts
Enhanced Process Control and Optimization
Real-Time Business Visibility
Faster Reponse Times to New Requestsp q
Improved Cost Control
© 2010 IBM Corporation8
Solutions for the Publishing IndustryC fThe Comprehensive Business-to-Partner Integration Platform
Driving new revenue streams in the digital economy requires publishers to have in place a B2P infrastructure that:
– Flexibly extends to new partners and channels
– Supports connection type, method, and protocol tomethod, and protocol to integrate and communicate with partners
– Hides the complexity of legacy back-office systems and applications – enablesand applications – enables “flow through” processing
– Enables rapid, scalable, and effective expansion of channel partners worldwide
© 2010 IBM Corporation9
The Comprehensive Business-to-Partner Integration PlatformSEnables Integration with Any Partner and Any System
Partner/Channel Profiles Must be Implemented to Guide Integration Execution and Governance
How Information Is Handled Between the Two Organizations Must be Configured, Including Data Validation and Transformation. Adapters Should be Implemented to
Process Partner Transactions To/From Back office SystemsBack-office Systems.
USRetailer
SmallRetailer
GlobalE-Retailer
SmallRetailer
GlobalRetailerGlobal
Retailer
USE-Retailer
© 2010 IBM Corporation10
Channels Connections B2P Infrastructure
The Comprehensive Business-to-Partner Integration PlatformO f 2Enables Process Orchestration for All B2P Transactions
Process Templates – B2B OrchestrationS l ti t h t t b i
B2B Orchestration
Process Modeling State Management
Workflow
• Solutions to orchestrate business processes internally and externally
– Workflow• Management, optimization andManagement, optimization and
monitoring of business processes – Process Modeling
• Modeling capability that dramatically reduces process d l t l tidevelopment cycle time
– State Management• Provide restart/resume control,
and guaranteed deliveryProcess Template– Process Template
• Templates that reflect the way a company does business, examining the steps, touch points, and processes that surround b i ti iti
© 2010 IBM Corporation11
business activities
The Comprehensive Business-to-Partner Integration PlatformCEnables Close Visibility Into All Partner Transactions
ERP 1
Visibility
ThePublisherEnterprise
ERP3
Workflow ERP 1
ERP 2Sales
PurchaseO d
Confirmation
Invoices
Digital SalesDataCatalog Aggregation Inventory
Catalog
Order
Web Portal File Transfer
EventManagement
Sales Channels
Finance
Operations
Unsophisticated Channels
EDI/RNET/XML
RegionalDistributor
USE-Retailer
SmallRetailer
GlobalRetailer
USRetailer
Operations
© 2010 IBM Corporation12
SophisticatedChannels
Performance Management
GlobalE-Retailer
Multi-National Trade PublisherB ildi B i V l Th h B i t P t I t tiBuilding Business Value Through Business-to-Partner Integration
To maintain competitiveness and grow in a rapidly transforming marketplace, this company had to become more responsive to meeting new types of customer requirements. The emergence of new channels,
Challenge
including big-box stores and supermarkets, as well as the need to support varying terms and conditions and document standards, posed challenges to existing processes and technical infrastructure. This created a
need to reengineer their B2P infrastructure.
Complication SolutionIn-house infrastructure was ill-suited to work with channels whose capabilities ranged from Excel spreadsheets to supporting highly complex EDI-based transactions.
The company selected IBM Sterling Integrator and Collaboration Network:
• One platform to support all B2B standards including EDI/EDIFACT, ONIX, ANSI X12, and Tradacoms.
• Needed to support a range of B2B standards, both cross-industry and specifically related to the publishing industry, such as ONIX, ANSI X12, and Tradacoms.
• Key channels had many stringent rules and SLAs to be
EDI/EDIFACT, ONIX, ANSI X12, and Tradacoms.
• End-to-end process visibility to monitor performance against partner SLAs.
• High degree of process automation. For example, met or penalties would be applied.
• Line of business was also asking for greater automation capabilities.
g g p p ,automated outbound file processing with unique workflow by partner and file type.
• Direct integration with SAP-based ERP layer.
© 2010 IBM Corporation13
• The B2B team also needed to prune and update its list of trading partners under management.
• Larger volumes supported by smaller staff.
The Comprehensive Business-to-Partner Integration Platform
Connectivity Translation Processing/Routing Visibility
IBM Sterling B2B Integrator
Connectivity Translation Processing/Routing Visibility
© 2010 IBM Corporation14
So How Do You Use ThisSo How Do You Use This Capability to Take
Advantage of the DigitalAdvantage of the Digital Economy?
© 2010 IBM Corporation15
Why is the Digital Sales Model So Complicated?
Publishers are partnering with online book sellers to provide consumers instant access to p g pmillions of books and other content via download to a variety of electronic devices
– Selling books in the digital age becomes an easier proposition for sellers as physical inventory management is not requiredTheoretically any seller can sell digital books (with the proper digital infrastructure)– Theoretically, any seller can sell digital books (with the proper digital infrastructure)
– This can drive potentially robust growth in digital book sales worldwide (in units sold)
This digital sales paradigm and associated growth increases the complexity associated with publishers support of digital sales channelspublishers support of digital sales channels
– This includes moving, storing, analyzing, and processing digital sales transaction data as end-customers make purchases.
Publishers must be prepared to connect to a rapidly growing number of on-line salesPublishers must be prepared to connect to a rapidly growing number of on line sales partners and exchanging digital sales data in real time while providing the business control to ensure optimal financial performance of digital media offers
– This is a business-to-partner integration problem
© 2010 IBM Corporation17
What The CFO Wants To Know…
ConnectConnect CollectCollect ProcessProcess SettleSettle
ScalabilityScalabilityManageability
TimelinessAccuracy
© 2010 IBM Corporation18
yEfficiency
The Digital Sales Data Exchange
E-Retailergenerates sales data
Send XML file of sales
data.Digital Sales Data
Exchange processes file:
File is receivedFile is translated
ERP receives
translated file.
OR
Validated and parsed file.
sales data file.
Uploads flat file via publisher
site.
File is interrogatedData is routed
Reports generatedNotification sent
Visibility platform updated real-time
.
Units Sold by CategoryUnits Sold by TitleUnits Sold by Revenue TypeEtc.
Connectivity Translation Processing/Routing VisibilityConnectivity Translation Processing/Routing Visibility
© 2010 IBM Corporation1919
Key Capabilities in Deploying a Digital Sales Data ExchangeWith Associated BenefitsWith Associated Benefits
Capability Area of Impact Business Benefit
Connectivity to e-Retailers sites
• Offers multiple protocols/mechanisms for connectivity to Digital Sales partners
• Lower Ops Costs – IT (less time to onboard and less time maintaining communicationse Retailers sites connectivity to Digital Sales partners
• Abstracts the complexity to the partner through self-service and provides a consistent partner experience
and less time maintaining communications with non-VAN trading partners)
• Faster Revenue Realization - Shorter time to revenue with more agile on-boarding process (get the sales flowing sooner)
ODigital Sales File Translation
• Provides any-to-any transformation for integration between partners and publisher ERPs, including data pre-validation
• Rapid on boarding of partners through
• Lower Ops Costs – IT (automated handling of error conditions due to pre-validation)
• Lower Ops Costs - Finance (remove manual labor currently associated with exception handling)
the reuse of templates, maps, and processes reduces time to implementation
Digital Sales File Visibility Portal
• Offers aggregated views of Digital Sales files by partner time period and product
• Lower Ops Costs – IT (reduce involvement in tracking efforts – reduction in Q/I tickets)Visibility Portal files by partner, time period and product
• Real time tracking of transactions by business and IT including forecast reporting
tracking efforts reduction in Q/I tickets)• Lower Ops Costs – Finance (automated
reporting reduces labor waste from file tracking)
Digital Sales File • Automated processing of exceptions • Lower TCO – IT, Finance (reduce manual
© 2010 IBM Corporation20
Exception Process • Automated notification to partners and publisher staff
processing of exceptions)• Faster Revenue Realization - faster
reconciliation of error drives faster payment on errors
So What Have We Discussed Today?Th B i t P t I t ti C li tiThe Business-to-Partner Integration Complication
As sales channels for selling physical and digital media grow and develop, publishers must confront and solve a series of business complications in order to capitalize on new revenueconfront and solve a series of business complications in order to capitalize on new revenue opportunities:
– Increasing complexity due to the range of data exchange methods to support and the number of files that must be exchanged between partnersthat must be exchanged between partners
– Need for improved visibility and monitoring over data as it moves between back and forth between internal systems and external partners
N d f b tt ti it t ti d dit bilit f f t d ffi i t d t i d– Need for better connectivity, automation, and auditability for fast and efficient data processing and problem resolution
– Need for a scalable solution that efficiently and accurately handles quickly growing volumes of partner transactions especially with digital sales datatransactions especially with digital sales data
© 2010 IBM Corporation21
So What Have We Discussed Today?Th B i t P t I t ti S l ti
Comprehensive Business-to-Partner integration solutions give publishers a competitive advantage in the marketplace by solving many of the channel partner business
The Business-to-Partner Integration Solution
advantage in the marketplace by solving many of the channel partner business complications:
– Reducing the complexity associated with establishing connections with electronic retailers, moving data, and processing transactionsdata, and processing transactions
– Providing visibility and real time tracking of transaction data as it is exchanged so that business and IT users can quickly respond to inquiries, solve issues as the arise, and proactively analyze data for audit, reporting, and forecastingp g g
– Automating tasks associated with processing, translating, and routing data for more efficient back office operations, faster data analysis, and the ability to handle growing volumes of partner transactions with no or little impact to the business
© 2010 IBM Corporation22
To Learn More: WWW.THEPUBLISHINGVALUECHAIN.COM
Business Integration SolutionsgBy Sterling Commerce, an IBM Company
Recognized as a leader in
Gartner’s Magic Q d t f B2B
Over 18,000 worldwide customers,
including 80% ofBacked by the
worldwide fQuadrant for B2B
Gateway Providers
including 80% of the FORTUNE® 500, use Sterling
Solutions
resources of IBM
© 2010 IBM Corporation23