Improving IT Integration to Maximize Multi-Enterprise Collaboration Value

Improving IT Integration to Maximize Multi-Enterprise Collaboration Value

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Description: Mastering transformation by enabling productivity in processes and information. Consumerization of the industry retailers and manufacturers share the omni-channel integration challenges. Processes are becoming more synergic and coordinated: creating "excellence clubs" business integration networks.

Processes need more and more synergies and coordination: Improving process integration with key trading partners is a major initiative companies are bringing forward.

 
Author: Sebastien Lamour  | Visits: 296 | Page Views: 446
Domain:  Business Category: Management 
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Contents:
Sébastien Lamour
Senior Research & Consulting
Manager

#PerspectivesDay

Improving ITAn IDC Survey for Generix to Maximize
Integration
the Value of your Multi Enterprise
Collaboration

Technology Driving Business Model Change

A Business Platform to Drive Industrial Digital Transformation

IT-Enabled Products is the End Game

IT-enabled
Business Processes

IT-enabled
Services

Automating Business Processes

Transforming Business Processes

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

IT-enabled
Products
Creating IT-enabled Products

Screening questions
Respondents
Line-of-business supply chain (VP
supply chain or logistics, head of
supply chain or logistics, supply
chain or logistic

Company size

IT (CIO/chief information
officer, IT manager)

From 500 to 999 employees

33%

33%

From 1,000 to 5,000
employees

57%

43%

34%

Industry

More than 5,000
employees

Country

CPG

27%

24%

30%
Commerce de détail

France
40%
U.K.

Grossistes / Logistique / Distribution

24%

26%
Industrie B2B

Source: IDC France, Manufacturing and Retail Survey, Generix, July 2016

30%

Germany

Mastering
transformation by
enabling productivity
in processes and
information

Consumerization of the industry – retailers and manufacturers share the
omni-channel integration challenges
Q. What are the most critical business challenges for your company?
Increasing competition

58%

Speed of the marketplace

50%

More demanding customers

48%

Costs are too high

41%

Poor visibility of supply chain

39%

Traceability, sustainability, and compliance

37%

Inflexible IT systems in place

36%

Instability in worldwide economy

32%

Customer payment delays
Lack of process agility to comply with customer requests

Source: IDC France, Manufacturing and Retail Survey, Generix, July 2016
Respondants = extreme or strong challenge

28%
23%

The impact of IT on your company’s results

+40%
Raw potential growth of the operating income for a
company that succeeds in its digital transformation

-20%
Risk of a potential reduction of the operating
income for a company that fails in its digital
transformation

Source: McKinsey 2014 « Accélérer la mutation numérique des
entreprises » - IDC Data

Augmenting productivity in processes and information
Q. What are the business initiatives that you expect your company to undertake over the
next 3 years?
Enhance productivity

66%

Implement new and modern fulfillment strategies

62%

Augment collaboration with trading partners

61%

Improve visibility of supply chain

59%

Augment internal collaboration

56%

Minimize supply chain disruptions

52%

Increase supply chain agility
Fine tune price and rebate processes

Source: IDC France, Manufacturing and Retail Survey, Generix, July 2016
Respondants = Likely or Extremely likely

47%
36%

Processes are becoming more synergic and coordinated:
creating "excellence clubs" business integration networks
Integration with the following partners increasing over the next
three years

Collaboration becoming more strategic

69%

Suppliers

Customers

67%

Customers

Logistics providers
Suppliers

62%

Inside your own business department

Banks/financial service providers

20%

Banks/financial service providers

Number of trading partners

Next 3 years

30%

More than 1,000

11%

30%

64%

Logistic Providers

Today

44%

36%

33%

Between 500 and 1,000

Between 100 and 499

3%

Role of collaboration with trading partners
25%

42%

24%

10%

15%

Fewer than 100

47%

Today

52%

Next 3 years

38%

33%

Collaborative information exchange is at the center of our business
Relevant only to a minority of business processes
Not relevant at all

Source: IDC France, Manufacturing and Retail Survey, Generix, July 2016

16%

15%

Processes need more and more synergies and
coordination
Improving process integration with
key trading partners is a major
initiative companies are bringing
forward
The number of major partners will
be reduced
Collaboration with these partners
will increase
In particular we see a strong
interdependence between
• Suppliers
• Logistic Providers
• Customers

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Process
integration

Becoming more
integrated

The benefits of B2B integration
Q. What business benefits has your organization identified while improving B2B
integration?
Positive effect on customer relations

71%

Reduction in cycle time

71%

More flexible and agile business processes

68%

Improving demand forecast

68%

Employee time optimization

67%

Lower business risk

66%

Invoicing process improvement

64%

Opportunity to develop a wider customer/supplier base

64%

More rapid time-to-market

62%

Development of new differentiating services for the clients (e.g., traceability service, order and…

61%

Inventory reduction

57%

Lower logistics costs

55%

Reduction in costs associated with traditional communication (phones, fax)

54%

Reduction in procurement costs
Employee reduction

53%
42%

Business integration is not an easy task
Q. How would you evaluate the following process and organizational challenges in your
collaboration with other businesses?
Difficult demand/lead time forecasting

41%

Too many business partners

40%

Lack of investment to enable the process changes

34%

Business network complexity

31%

Lack of internal skills

31%

Too many sales channels: web, B2B, email, fax, phone

29%

Lack of trust among business partners

24%

Lack of commitment to B2B integration on top management side

24%

Complicated IT architectures are the
problem…
Q. How would you evaluate the following IT challenges in your collaboration with other
businesses?
IT implementation costs are too high

50%

Information network integration

39%

System governance/too complex IT systems

39%

Too many data formats

28%

IT price structures are too rigid

28%

Too many IT suppliers

25%

B2B solutions are too technical and have low level of usability
Lack of a collaborative platform

21%

13%

60% have
more than 3
B2B
applications
suppliers

The role of IT

Integrated and collaborative IT platforms are
the solution!
Q. What can IT add to your B2B process?
84%

Improving data security

76%

Business process automation
Complying with regulatory requirements

74%

Securing the company's data over time

74%
73%

Making data governance more reliable

67%

Creating added value for business departments through higher levels of service

66%

Providing ideas and solutions to transform the client experience and satisfaction levels

64%

Making processes work in a collaborative way (e.g., with third-party logistics providers)
Reduction in interfaces

63%

Simplifying and accelerating the implementation of B2B projects

63%

Helping to rationalize solutions/service providers

63%

Improving productivity by accelerating digital transformation
Enabling paperless processes

61%
55%

Most sought-after attributes: "Easy" and
secure
Q. Thinking of the best way for IT systems to support your B2B network collaboration,
what are the most sought after attributes?
72%

Low cost of deployment for multi-enterprise interfaces

70%

Usability for business users

68%

Easy and clear management of personal data and privacy

67%

Rapid deployment for multi-enterprise interfaces

Flexible pricing models based on software as a service (SaaS)

65%

Easily reconcile many product families (e.g., ESB and B2B integration, API and gateway B2B, VAN and
EDI SAAS, ECM and DAM/GED)

65%

Natively support a number of different needs (e-invoicing, supplier management, API management,
KPI boarding, etc.)
No need for too much upfront architectural, governance, and TCO studies

61%
49%

A direct set of benefits: Enabling process
improvement
Q. Thinking about your ideal B2B network collaboration system, which features should
it have?
Improve process automation

74%

Provide metrics and dashboards for business performance

73%

Use B2B network data to improve process visibility and troubleshooting

71%

Regulatory compliance support (invoice, customs, international trading rules, etc.)

67%

Integrate non-EDI-based communications between trading partners (e.g., APIs)

67%

Multi-enterprise process orchestration and remediation across a value chain

67%

Flexible pricing models

66%

Share demand forecasts across trading partners

65%

Next-generation data security protocols and practices, including sensitive personally identifiable information…
Include social collaboration capabilities
Connector and protocol management in a unique console
Create partner scorecards
Include new type of data coming from IoT: machines, sensors, drones, robots

64%
61%
60%
58%
57%

Conclusion and
recommendations

Challenges

1.
2.
3.

IT

Increasing competition
Speed of the marketplace
More demanding customers

1.
2.

Inflexible IT
Too high implementation
costs
Too many IT suppliers

3.

IT isn’t bringing value to Companies

Lack of value perception for collaboration platforms

Companies’ initiatives

Collaboration platforms scenario

1.
2.
3.

Increase productivity
New fulfillment strategies
Creation of collaboration
clubs

What are the fundamental
desiderata for a collaboration
platform?

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

What are the fundamental desiderata for a collaboration platform?
Data
1.

2.

Process automation

Data management
Data security & privacy

Low cost & Rapid deployment

Investing in the right collaboration platform means achieving
Customer centricity

We are going towards the constitution of
Collaboration network as a club

Productivity improvement

Only the Companies with the right
technology requirements will be able
to integrate with key partners

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Recommendations

Rationalize your
B2B collaboration
solutions

Modernize the B2B
collaboration
existing application

Consume IT
solutions in a Saas
mode

PA R T E N A I R E S