Idcb2 b integration_3rdplatform

B2B Integration: Are You Ready for the 3rd Platform?
Chandana Gopal
IDC Research Manager

Agenda
 What is the 3rd Platform?
 How does the 3rd Platform apply to B2Bi?
 Are you ready for the 3rd Platform?
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Source: IDC
Evolution of the 3rd Platform

Innovation in the 3rd Platform
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
4

The 3rd platform is the Only IT market that
Matters

Technology Buying
Centers Have
Permanently
Shifted
Source: IDC Business Technology
Study, May 2013 n=1,227
Technology Buyers in the Business
Q: When thinking about the total
money your functional areas will
spend on external technology
initiatives in 2013, how would you
divide these expenditures?

All Pillars are Rapidly Expanding

How Does This Apply To B2B
Integration?
Shifts in B2B Integration Patterns
Buyer Case Studies
Trends in B2B Integration
3rd Platform Enabled B2B Architecture

First Shift: Operational Excellence
Today
 Operational excellence built on
core B2Bi
 Standard offering across
enterprise
• Communications
• Mapping
• Translation
 Least cost design that may
include combination of on-
premise, value-added network
and managed services
Evolution
 Use of open API’s
 Orientation toward backbone
• Shift from point-to-point to
process orchestration
• Standardized approach to
identification of problems in
near-real-time
• Support of non-EDI mapping &
translation
 More trading partner self-
service
Rapid, cost-effective use of infrastructure to exchange data with partners

Second Shift: Customer Excellence
Today
Focus on adapting quickly to
onboard new customers, change
management and support of new
document types
 Adhere to SLAs
 Better visibility into integration
problems
 Compliance with new trading rules
Evolution
Customer investments in great
efficiency, faster cycles and mobile
in the field will be supported in B2Bi
 Web services and events supported
for real-time and near-real-time uses
 Visibility expands to business
domain to be responsive to trends
 Greater collaboration to solve
situational problems and to adapt
more rapidly to new trends
 Collaborative B2B process design
Supports customer demand for faster cycles & lower processing costs

Third Shift: Support of Innovation
Today
Innovation primarily focused on
cost controls upstream and
responsiveness downstream
 Started integrating B2Bi with BPM to
go end-to-end from gateway to
backend systems
Evolution
B2Bi becomes part of core service
offerings that extend business
relationships with existing and
customers
 Ability to be discoverable from within a
trading network
 Participate in larger end-to-end multi-
enterprise business processes across
trading networks
 Internet of things will create
opportunity to add business and
consumer services to manufactured
products
 Ability to respond dynamically through
analytics and predictive services
Integration always on for new business from new customers

Buyers Are Demanding More…
Cost reduction and expansion beyond EDI
B2B center of excellence was mandated with
reducing costs by 25%
• IT reduced costs/transaction from $1.50 in 2004 to 9 cents in
2012
• Business started receiving huge quantities of point-of-sale data
from retailers
• Needed to onboard small retailer partners from around the globe
accepting all types of documents

Buyers Are Demanding More….
Doing global business in an automated way
Channel data management company receives weekly data
feeds from 1000s of retailers all over the world in a variety
of non-standard formats
• Business users need to have the ability to onboard trading
partners rapidly to keep up with the pace of doing business
• Non-standard data has to be validated and aggregated to provide
channel intelligence information to clients
• Troubleshooting transaction data is a key element of success and
is carried out by business analysts not IT

Trends That Are Affecting B2B
Integration
 Visibility across the trading network supply chain with predictive
analytics and troubleshooting
 Volumes of data to feed analytical systems is exploding. Business is
demanding verbosity
 More straight-through-processing with no human touch points
irrespective of the type of data (EDI or non-EDI)
 Increased demand for real time transaction processing with
integrated visibility and analytics
 Increasing volumes of data coming from internet enabled devices
o Mobile devices
o Internet enabled sensors

B2Bi Architecture in the 3rd Platform
Partner
Community
APIs
G
a
t
e
w
a
y
G
a
t
e
w
a
y
VAN
APIs
Private
Cloud
Apps
Trading Partner A Trading Partner B
Private
Cloud
Apps

Are You Ready for 3rd Platform
and Beyond?
Readiness Checklist

Readiness Checklist
 Make innovation a priority. Map your current capabilities to 3rd platform
technologies. Identify investment areas and prioritize
 Fund innovation based on the shifts
• Shift work (e.g. customer onboarding, mapping changes) to analysts and lines of
business
• Use developers sparingly and only for high value or innovation efforts
• Outsource troubleshooting to single center
 Make the case that operational efficiencies and cost savings will pay for
improvements in B2Bi
 Get business buy-in for the need for evolving to the 3rd platform. Prove how it
will make them more effective
 Link other 3rd platform initiatives within your organizations to B2Bi

Questions?
CONTACT
Chandana Gopal
cgopal@idc.com
Twitter: cgopalidc
Connect via LinkedIn: Chandana Gopal (IDC Analyst)

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