When is the last time you asked, “is it time for my organization to modernize our B2B Integration?” Has it been a year, a few years, or even longer. For most companies, I think it has been more than a few years because B2B works so well. For decades, B2B Integration has been successfully helping organizations to automate manual processes, reduce errors, speed up commerce, create visibility into the supply chain and many more benefits. B2B has increased close collaboration between customers and suppliers. Even EDI (electronic data interchange) has been around for more than 30 years and shows no signs of going away. Your B2B Integration works; it gets the job done, so why would you be thinking about investing in modernizing it?
The simple answer is because is “getting the job done” enough for your organization these days. Do you need more out of B2B Integration than you have been getting? Are you maximizing the benefits B2B Integration provides?
To answer that question, it helps to know what kind of benefits the market leaders are receiving from their B2B Integration. Bryan Ball, Vice President and Principal Analyst for Aberdeen's Supply Chain and Operations practices discusses the benefits that leaders are receiving while comparing them to the laggards. Watch the video B2B Collaboration: Driving the Return.
After listening to Bryan describe the range of benefits and advantages leaders have, it makes sense to be asking whether it is time for your organization to modernize their B2B Integration. The leaders regularly ask themselves if it is time to modernize their B2B. Leaders know that B2B Integration solutions continue to improve and what they can do now is greater than just a few years ago, and the options are always increasing. Today’s B2B solutions can work with your previous B2B investments, so instead of ripping and replacing you can build upon your prior investment to drive higher ROI. Cloud and managed services options for B2B Integration reduce upfront investment while limiting the burdens placed on IT. It is time you look into whether your need to modernize your B2B Integration.
We are all familiar with the differences between our Line of Business (LoB) and IT departments. We have heard the jokes and anecdotes. They are oil and water, cats and dogs, Republicans and Democrats, Venus and Mars. While they are not natural enemies, they do tend to have an adversarial relationship. They each speak their own language and view issues from their own perspectives, which lead to misunderstandings, communication breakdowns and can have a negative impact on the organization. However, since they must work together to make B2B Integration successful, the organizations that figure out how to make that happen will have an advantage over those that don’t. Or cant.
The interesting thing is that they both agree on the importance of B2B Integration to their organization’s success, however, the LoB views IT as an obstacle to effective B2B integration, citing IT as the top two obstacles to success. In a study earlier this year we asked LoB what they is holding back B2B success.
The most common operational issue preventing integration of your B2B Community mentioned by LoB Executives is having “to rely on IT to troubleshoot and resolve issues”, cited by 47%. Additionally, the top two issues cited by LoB as obstacles to B2B success are “IT’s inability to support the volume of B2B partners to onboard” (37%) and “IT cannot support member’s technical requirements” (33%). It is clear that a significant gap exists between IT and LoB. But in order to succeed with B2B Integration it becomes increasingly necessary for these two different groups to find a way to collaborate. Better communication and understanding of each other are just the first steps. Longer term more strategic solutions are required, like creating a liaison role between the two and really stepping into the other side’s shoes. Failure to bridge this divide will limit the success and ROI of your B2B investments. To learn more about how LoB and IT see each other and how they can begin to collaborate more effectively, check out this infographic and research report.
Again I present a blog article written by my colleague Oliver Jaeger, Vice President, Global Marketing & Communication, e-Spirit Inc. an IBM Business Partner. Oliver draws an interesting parallel between physical supply chain management and the management of the digital user experience in eCommerce. Read on, I think that you will find it as interesting as I did.
When it comes to digital experience management, it’s often useful to look at your website, portal or e-commerce store as the end result of a supply chain. Behind every website (the front end) is a complex set of “suppliers” such as writers, editors, store managers, marketing campaign managers, artists, system integrators, software developers, security experts and system administrators, which, together comprise the backend.
When a visitor clicks within your website, the experience that results depends entirely on your supply chain’s ability to perform. The better and more efficient your supply chain, the better the experience will be for your customers. Unfortunately, what we see far too often is that site managers focus on the customer experience itself without considering ways to improve the efficiency and quality of their supply chain.
Take, for instance, social media. It’s been well proven that interaction with your customers through social channels can dramatically improve the performance of a campaign. But if the processes for integrating the latest and coolest social media tools are difficult, slow and time consuming, chances are you will miss out on what could be important opportunities. The ultimate result of an inefficient supply chain is that the digital experience for your customers is not what it could be.
Just as manufacturers are constantly looking for supply chain improvements, website producers should be constantly looking for ways to optimize the digital experience supply chain. A good place to start is by looking at the experience your Web content management system delivers to key “providers” including content creators, marketing professionals, developers and integrators.
For content creators, your CMS should provide an intuitive and highly efficient editing environment coupled with flexible workflow management. For marketing professionals it should provide integrated campaign support and analytics capabilities. For developers you’ll want to provide the flexibility to use familiar and best-of-breed tools with support for a variety of languages, databases and frameworks. For integrators, the CMS should offer out-of-the-box integration with leading e-commerce and portal systems such as IBM WebSphere Commerce and flexible integration with existing systems as well as cloud and third-party applications.
For us at e-Spirit, this is what we like to call the global user experience. What this means is that we are constantly looking for ways to give all the users of our FirstSpirit CMS a better experience. By removing the glitches and bottlenecks in the supply chain, companies can reap all kinds of benefits – not only is the experience delivered to customers dramatically improved, but costs are reduced as well.
Next week, from Monday May 12th through Thursday May 15th, is the annual Smarter Commerce Global Summit in Tampa Florida. The Summit is a great place to deepen your knowledge of B2B Integration. Starting Monday, with the IBM Business Partner day, you will have the opportunity to speak with solution experts, learn about new solutions, view demos and most importantly, interact with your peers who are using B2B Integration.
The highlight of Monday’s activities is the Business Partner forum, which, will be different than any other! It is a Business Partner Festival focused on the "Art of Growing Your Business". Business Partners will find themselves transported to a street-fair environment where interactive conversations and fun activities focused around SaaS, Mobile, Cloud will take place. Food, drinks, and artists will be interspersed among educational opportunities that will provide actionable ways to help grow business. If you want to meet with IBM Executives, make sure to be there between 4:30-5:00pm. Additionally, you can visit:
Social Connections: Get a New Headshot Taken. Learn How to Connect the Dots with LOB Executives. Discover new solutions and sales tools!
Enablement Café: Grab a Cup of Java. Build Your Personal Enablement Plan. Learn how to find the latest sales tools quickly, discuss ways to build and improve your marketing plans. Create a Custom Postcard!
Cloud / SaaS Lounge: Have Your Caricature Drawn. Be Inspired to Build Your Cloud Model with IBM. Get a Cloud/SaaS Market Opportunity Kit!
Revenue Gallery: Take a 'Selfie' with a New Friend and Send to Mobile Central! Get Tips On: Live Events, Digital Campaigns and Working with Agencies. Update Your Profile on PartnerWorld. Learn about Content Syndication. Enjoy a Smoothie!
Mobile Central: Take the Mobile Web Push Challenge. Get Your Mobile Solar Charger and Roll Your Own Cigar!
During the rest of the week, you can discover what’s new with B2B Integration. There are 40 breakout sessions feat (Download Session Roadmap here) featuring content from market leaders like Whirlpool, Ryder Logistics, CVS Caremark, Jabil Circuit, Sony, Commerce Bankshares, Reynolds American, CEVA Logistics, Watts Water and more. Listen and interact with your peers.
The first B2B Integration keynote discusses the new IBM Sterling B2B Services Analytics and Reporting offering as well as key offerings from Aspera, such as Aspera Drive. We’ll also hear from Aspera client, Sony Pictures Entertainment on how Aspera technology is revolutionizing their digital value chain and aided in expediting the delivery of new movies like The Amazing Spider-Man 2.
Our second keynote; Inspired Leadership – The Heart and the Fist, is delivered by a former Navy SEAL, award-winning author, Rhodes Scholar, humanitarian and Founder and CEO of The Mission Continues, Eric Greitjens. Eric discusses his work a as a humanitarian volunteer, documentary photographer, and researcher and how his work as a social entrepreneur is transforming how America views our veterans, under the theme on living with resilience and leading with strength and compassion through adverse circumstances.
There is so much more for attendees to do and learn, I have just touched on the highpoints.
When I speak with IT professionals and hear about the conversations my colleagues have with IT professionals, there is a consistent theme that IT is always being asked to do more with less, for many years. From my16 years in the tech industry I believe that this in part stems from most companies not valuing IT accurately and not viewing IT as “strategic”, but rather as a cost of doing business. And we all know that companies are constantly trying to reduce costs, so if your functional area is seen as a cost of doing business, you will constantly face reductions.
There are many causes that contribute to this “conventional wisdom”, which would probably fill a book, but what I want to discuss is one method IT can use to chip away at that mindset and begin to show the true value that IT delivers to companies through B2B automation. And I happen to have a simple to use tool to get you started.
IBM has just updated its B2B Automation Savings Calculator, which is generally to show the potential annual savings you can expect if you reduce your manual processes by automating more transactions and/or trading partners. However, it can also be used to show the value that IT is currently and has already provided to your organization. By simple altering the inputs to the calculator a little, you can use it to do something else: quantify the specific contribution that using the IBM Sterling Collaboration Network (SCN) of IBM Sterling B2B Integrator has delivered in the past year.
You’ll need to input the data in a slightly different way than described in the questions. For example, in response to the question, “How many total trading partners do you have?” instead of entering the total number of partners, you would enter just the number of currently automated trading partners you have. Then, in response to “What percentage of those are you still trading with manually?” you would answer 100%.
By changing these inputs, the calculator is now computing the manual processing costs your company would incur if your trading partners were not automated. With these modified inputs, your report will show a range of your current cost savings based on a high, average, or conservative processing cost estimates. That is useful data to point to when you need to justify and communicate the value your department is currently delivering to the bottom line.
The calculator was built using industry average data compiled by leading analyst firms Aberdeen Group, AMR Research, and Forrester Consulting. Additionally, you can enter your own figures or use the third-party industry averages. When you reach the executive summary page, the calculator then generates an eight-page PDF report you can download. The potential savings based on industry averages from analyst research are a great starting point for showing the IT department’s contribution; however, using your company’s real costs are more compelling. The report has instructions to help you calculate actual costs for your organization, increasing the accuracy of your estimates.
Use the B2B Automation Savings Calculator to begin to quantify the value IT is delivering your organization. While this is not going to change a conventional mindset that has been solidified over decades, you can begin to change the perspective of the line of business executives at your company by showing the quantifiable value that IT delivers to the bottom line.
Last blog I talked about how tying B2B projects to corporate goals and objectives can raise them to become strategic. As an example, I looked at how the more partners and more transactions that are automated with B2B Integration the more information is available digitally, which opens up a lot of possibilities for using that information. As I wrote that, I didn’t expect that I would be experiencing it first hand as a consumer.
In December I was in the market for a new car, I have driven the same brand ever since I could afford to buy/lease a new car and not just purchase a hand-me-down from my parents. But my old car has served me faithfully for over a decade and it was time to retire it and find a new one. While I could write a lot about how the car buying experience has changed in the past decade, since I was last in the market as an active buyer, that is a story for another day; however, I will say that living in the “age of the empowered customer” really saved me money and the dealership that was willing to work with me as a 21st century consumer had gained brand loyalty from me and those that still operated like they always did never stood a chance of getting my business. But I digress….
I knew exactly what features I wanted, the color, specs, etc, which meant that I had to order my new vehicle from the manufacturer because there wasn’t one that met my expectations in a 5 state area. While it is great to get exactly one I wanted, I had to wait up to 8 weeks for the vehicle to be built from the date I placed the order deposit. After the excitement of the search, delaying gratification for up to two months is not the ideal outcome. But here is where the auto manufacturer surprised me. During the wait, they regularly updated me via email of the progress of my car, through the major stages, order placed, staging, production starting, assembly, painting …. all the way through delivery to my dealership. I received emails with links to a page for my car. My webpage had all the production staged listed, it told me where my car was being assembled, identified the current stage, and included pictures of the process (I would have loved to have a live webcam stream or recording of my car going through assembly instead of stock photos). Tracking my vehicle made the wait feel a lot shorter than if I had just been waiting for a call or email telling me it was at the dealer.
My point here is that because the auto manufacturer uses B2B integration to automate their processes and transactions across their supplier community and inside their organization, they had the digital information to keep me up to date on the progress of my new automobile. I loved it and I knew that it was only possible because they were using EDI transactions. Once a company has the digital information, it isn’t a lot of work to use it to improve the customer experience, but I can tell you that I was delighted by how I was kept informed of my new car’s journey to me.
Happy New Year to everyone! Now that we are all back at work and the holiday season is behind us, most of us are in the last phases of the planning process for 2014, where plans are being socialized and tweaked before they are finalized. So with that in mind I wanted to share two pieces of advice that can help you ensure your projects are funded, approved and started on the right foot. This advice applies to B2B Integration, Managed File Transfer, Commerce or any IT project.
The first piece of advice is to make a rock solid case for your budget to ensure funding. Two of my colleagues have recently written excellent pieces on making the case for funding B2B Integration projects, which you can access below.
I don’t want to cover the same ground as those insightful blogs, you can read them for yourselves, but the ideas mentioned can be applied beyond B2B Integration to any project.
The second piece of advice is to tie your project to the corporate goals. This may seem obvious and basic, but you would be surprised at how many times it is overlooked. IT projects today, unless they fall under mobile, analytics or cloud, are not very sexy and therefore risk being marginalized or pushed down the priority list. Your job is to show the strategic value of your project and one way to do that is to tie your project to a top three corporate goal. The connection may not be obvious at first, but if you work at it, you will find one.
A good place to start is by examining the benefits of the project, beyond cost savings, particularly the benefits that tie to information. The more automation in a business process the more information is available digitally. Likewise, the more partners and more transactions that are automated the more information is available digitally. When information is digital, it opens up many possibilities, which are good ways to tie into corporate goals. Digital information can be made available to customers or partners for order tracking and status. Digital information improves your decision making by giving a more complete, accurate and faster view of the supply chain. The more digital information, the more effective your data analytics initiatives will be, which is a hot topic now. Increasing digital information can be the link between your project and a top corporate goal. Look at who benefits from that additional information and how does it relate to your company’s strategic goals? If you don’t know, ask your colleagues in the lines of business how the additional information would be valuable or tie into their priorities.
In a previous blog, I discussed my long search to find out the failure rate of FTP file transfers. Without recovering the same ground twice, the failure rate is 6.47%1. And I promised to discuss the impact that has on organizations.
To understand the impact of FTP’s high failure rate, we need to answer the question “What kind of business process can endure a failure rate that high?” File transfers are made to support business processes, so the real impact of their failures to the business is their impact on the business process they support. The answer is none. Even non-critical business processes with that high a failure rate would draw the attention of the organization and be improved. And the business processes supported by file transfers are most likely at least important, if not critical.
So if FTP file transfers fail 6.47% of the time then the business processes they support are failing 6.47% of the time, which would be painful if not intolerable to organizations. So it is logical to conclude that those business process failures are being patched over, most likely, with manual intervention. In the same survey we asked “What do you estimate is the average time it takes to troubleshoot and resolve an FTP file transfer error?” and the average answer was 28 minutes. That is 28 minutes of time for a talented IT professional to resolve the error. Now we have enough information to calculate the cost to an organization.
A simple way to calculate some of the costs of using unreliable FTP is with this formula: Total File Transfers x 6.47% x 28 minutes of IT hourly salary. While this formula easily calculates a real number, it is only a starting point for the total cost of unreliable FTP to the business. We have calculated the IT cost to fix the error, but we haven’t included the damage from a minimum 28 minute delay in the business process, which may impact customers or partners.
And that 28 minute delay is very conservative estimate, since it assumes that the failure is found out and corrected as soon as it happens, not that the organization finds out about the failed FTP transfer and business process through a customer complaint. It also doesn’t include the impact of that business process delay on subsequent business processes like billing, production, ordering, etc. What if there are service level agreements tied to the file transfers, which carry penalties. Calculating the IT cost to fix is just the tip of the iceberg of total costs to an organization from FTP failures, however, it is good starting point because it is an easily understood real number. As one digs deeper the costs will only grow. So maybe it is worth spending a few minutes to calculate this for your organization and chat with the IT department about their specific use and experience with FTP, which may lead you to look for a more reliable alternative. For more information about your organization’s risk exposure to FTP, check out the FTP Risk Advisor and create a custom risk report.
1 The 2013 Vanson Bourne B2B Integration and MFT Global Study for IBM
Here is another guest blog article from Oliver Jaeger, Vice President Global Marketing & Communications at e-Spirit Inc., an IBM Business Partner.
From mobile to social to e-commerce, the statistics make it clear that when it comes to integrating programs across channels such as these companies are still falling short. As a new infographic we pulled together makes clear, there is a chasm between what marketers and customers alike expect and where multi-channel programs are in reality. The chasm has a very real impact on business results, both in the short term in lost sales and long term in missed opportunities and brand erosion.
There are many problems ranging from ossified organizational structure to rapid pace of technological change. We’ve highlighted the ones that based on our research and discussions with our customers that we hear most frequently. To be sure, these are daunting problems, but they can be overcome. The infographic highlights a number of strategies recommended by researchers at Forrester Research for ensuring that multi-channel marketing programs get on track and stay that way. If this is an area of emphasis for your organization, I recommend you download the Forrester report “Climbing the Digital Experience Maturity Ladder Through An Integrated Technology Approach" and start down the path toward crossing the multi-channel chasm.
Your comments are always welcome and if you find the infographic helpful, please feel free to share with your colleagues and business associates.
Last year I was working on a project researching the failure rate of FTP file transfers. I was looking to find how often file transfers using FTP did not complete successfully. It seemed like a straight forward and easy task. Everyone I spoke with had an opinion on the failure rate, but couldn’t point me to a citable source. Some folks had read it somewhere, but couldn’t recall exactly where… while others heard it from someone but couldn’t remember who had said it. This was starting to feel like chasing down an urban legend.
My internet searches were not turning up anything more substantial, it was more anecdotal examples or things that were just not on point. Even my discussions with analysts didn’t provide what I needed. The analysts were certain that FTP has reliability issues, and they had educated guesses at a range of failure rates, but still nothing that was supported by citable research. In the end, I was unable to meet the legal threshold for citing any of the anecdotal rates, so we moved forward on the project without an FTP failure rate. But the question stayed in the back of my mind.
So earlier this year while my team was putting together some market research studies, I was very keen on including a few questions about FTP reliability and failures. My teammates, that I had been bugging for failure rate information previously, were as eager as I was to find out the answer. After waiting weeks for the research to be compled, we had an answer. The 2013 Vanson Bourne B2B Integration and MFT Global Study for IBM interviewed 650 Senior level IT executives from 8 countries and included the question, “In the context of transfers that use the FTP protocol, what percentage would you estimate do not complete successfully?” Without further ado, the answer was 6.47%. Almost six and a half percent of FTP file transfers fail.
That is an amazing rate that brought numerous questions to mind. Like, how do companies cope with that many failurs and what does that cost an organization, which I will discuss in a future blog.
I am pleased to introduce Oliver Jaeger, Vice President Global Marketing & Communications at e-Spirit Inc., an IBM Business Partner. Oliver wrote this blog, which I found insightful. Having spent over 15 years in marketing, I have come to believe that content is indeed king and one of the biggest ongoing struggles I deal with revolves around content. Finding or developing quality, insightful content is a huge never-ending challenge, but once created, matching that content with the relevant audience and the right time is even harder. The shotgun approach that boils down to “post it and they will come” is highly inefficient. In this blog, Oliver provides 7 tips that address both of those challenges and tools to help make your life easier.
Quality content is key to boosting website performance
By Oliver Jaeger, Vice President Global Marketing and Communications, e-Spirit Inc.
Many marketers think effective campaigns are the result of flashy graphics or catchy slogans. Although getting noticed is an important part of the battle, readers will quickly move past surface-level attempts to influence their buying decisions. Truly effective marketing programs are built on quality content coupled with effective distribution of that content through the appropriate campaigns and online channels. With the proper approach to content management companies can significantly improve their marketing effectiveness and website performance.
Our experience with hundreds of brands has proven how important quality, relevant and timely content is to attract and retain customers.
Here are 7 tips for an effective approach to content creation, management and delivery:
Simplify content creation and management with advanced authoring tools.
When most people hear the word advanced, the first thing that comes to mind is more complex and hard to use. Well, in this context advanced actually means the opposite. The more advanced tools make it easier, faster and less complex to create high quality digital content. Look for features like inline editing of Web pages, drag and drop support and integrated version comparison.
Enable teams to work together effectively to create content with workflow management tools.
Rarely is content creation a one-person operation, even for blog posts. Invariably many people from artists and writers to technical experts and product managers are involved with crafting content. Workflow and project management tools can keep the content pipeline flowing and make it easy to identify bottlenecks.
Personalize presentation by putting content in context.
Customers visiting your online store leave plenty of clues about their interests. By integrating your Web Content Management Systems (WCMS) with your e-commerce platform you can personalize content presentation to your customers’ interests. High-quality content delivered in context give customers a rich experience that will boost conversion rates.
Create emotional connections with customers with storytelling techniques.
What motivates people to buy (or not buy) – their rational brains or feelings and emotion? As any successful sales person will tell you, buying decision are based on feeling. People either have a good feeling or they move on. Effective story telling techniques can create an emotional connection to you and your products and services. That’s why e-commerce stores are much more effective when they are paired with high quality content.
Manage content delivery across multiple channels.
Customers use several media each day and expect brands to follow suit. One study found that 72 percent of consumers want businesses to market to them with a multi-channel approach. This means you must share your message across a variety of online and offline media channels such as social, radio, television, print, and mobile, all linked to your online store. Make sure your WCMS lets you manage multiple channels consistently and efficiently.
Create localized content for a global audience.
Even if your business is primarily centered in one geography, buyers can come from all over the world thanks to the Internet. In many cases, it can make sense to adapt certain content to your buyers’ native language. A WCMS with strong translation and localization features can make this process much easier.
Integrate social to connect with customers.
Too many marketers make the mistake of viewing social as just another sales channel. Let me be blunt. Social is not about selling. It’s about establishing a relationship with consumers. The quality content you develop and the stories you tell will all work well in a social context. Your WCMS should make social integration a simple and manageable process.
Ultimately, the message is this: the marketers who build their brands through storytelling, sharing of relevant high quality content and truly engaging with consumers will find long term success, leading them to the promised land of more leads, sales and profit.
e-Spirit is an IBM partner and provider of the powerful and multi-faceted FirstSpirit CMS application. FirstSpirit features an intuitive interface that makes it easy for anyone in marketing, public relations or other lines of business to create and integrate attractive, interactive and personalized content into any retail website — and many other channels.It further offers the flexibility to integratewith a wide variety of existing applications.
To learn more about how to boost online sales with relevant content, watch this webcast: https://ibm.biz/BdDfQs