| Although it seems hard to believe at the moment, | | | | fax that doesn't get through, can lead to delays in |
| the global economy should be on an upturn sooner | | | | information entering the supply chain, as well as |
| rather than later. There have been many blips in the | | | | errors all along the supply chain. |
| nation's financial stability over the last 100 years, not | | | | Failing to automate even the simplest transactions |
| least two World Wars and the great depression of | | | | means companies cannot achieve a real-time, holistic |
| the 1930s. However, the economy has always | | | | view of the supply chain. In fact 23 per cent of the |
| bounced back and this recession should be no | | | | businesses Sterling Commerce questioned said they |
| exception: in fact, the global economy is predicted to | | | | have no real-time visibility into B2B activity. Without |
| double in the next twenty years. | | | | supply chain visibility supply disruptions can't be |
| At present, it appears that CIOs are spending their | | | | identified and acted upon quickly. This can lead to |
| time struggling to cut costs and only implementing | | | | excess inventory in some cases or stock-outs in |
| projects that are guaranteed to provide a rapid | | | | others and is one of the main barriers to efficiency in |
| financial return. But it is vital that they also consider | | | | today's globally connected economy. |
| what lies around the corner by preparing the | | | | To achieve B2B efficiency, companies need to focus |
| company for the predicted upturn. | | | | on the strategies, trends, technologies, skills and |
| As business processes fall under greater scrutiny | | | | services associated with linking the business |
| during cost-cutting drives, more companies are | | | | processes, IT infrastructure and data of their internal |
| becoming acutely aware of the importance of | | | | applications, both internally and via multi-enterprise |
| improving business-to-business (B2B) efficiencies | | | | (B2B) integration. Those companies that adhere to |
| throughout the supply chain. Not only will this enable | | | | this focus achieve the sustainable competitive |
| them to achieve 'flat growth' in the current economic | | | | advantage and cost savings associated with faster |
| climate, but it will also ensure they are best placed to | | | | and more efficient B2B integration. |
| scale and grow when the expected upturn arrives. | | | | Reducing the cost of B2B integration and enabling |
| The challenge is increasing these efficiencies when | | | | business growth |
| the board insists on rapid ROI and smaller budgets. | | | | Whatever the current financial situation, the business |
| A change in priorities: from inside to outside the | | | | requirement is the same as always: to support the |
| enterprise | | | | business and its customers. It is just the drivers that |
| At the end of the last century, efficient business | | | | have changed and so have the options for funding it. |
| integration was focused on activity within the | | | | Firstly, CIOs will no longer want to invest their staff's |
| enterprise and ensuring the different applications | | | | time and effort on developing the B2B integration |
| within the business could talk to each other. But as | | | | strategy; it's certainly business critical, but there are |
| companies have entered a global economy and are | | | | more differentiating core competencies his team |
| now battling their way through the recession, it has | | | | could be focused on. Secondly, many CIOs are finding |
| become obvious that if they want to stand any | | | | that they are struck with a shortage of employees |
| chance of remaining efficient and competitive, they | | | | with specific B2B skills; the survey conducted by |
| need to be able to integrate beyond the four walls | | | | Sterling Commerce revealed that 25 per cent of |
| of their organisation and achieve full B2B integration. | | | | skilled IT people are actually within five years of |
| The global economy has meant that the supply chain | | | | retirement age. Lastly and perhaps most importantly, |
| has lengthened; businesses are now sprawled across | | | | traditional IT is associated with big up-front costs, so |
| different time zones and languages; acquisitions and | | | | as companies look to remove gigantic capital |
| mergers are occurring more frequently; and | | | | expenses, investing in an entire new integration |
| communication between all these different areas of | | | | capability may not be the most appealing option. |
| the business has become more challenging. During the | | | | As CIOs struggle with the above challenges, they |
| recent period of growth up to 2008, most companies | | | | need to ensure that IT is not just perceived as a |
| responded with tactical point solutions that created | | | | financial black hole, but something that yields the best |
| "islands of integration" and added headcount to fill in | | | | results for business. This is why the ability to move a |
| the integration gaps. | | | | cost from a capital one-off expense to a monthly |
| Businesses can no longer survive by relying on these | | | | operating fee is becoming increasingly compelling for |
| "islands of integration" that cannot talk to each other. | | | | today's CIO. |
| Processes throughout the supply chain must now be | | | | Taking advantage of a cloud-based offering means |
| fully integrated both inside and outside the enterprise | | | | that CIOs will have very little, or even no upfront |
| across the business collaboration network in order to | | | | costs, resulting in minimal capital expenditure and |
| create a fully efficient and profitable business. | | | | happy board members. By subscribing to a B2B |
| B2B Integration hurdles | | | | managed service, which leverages the economies of |
| Sterling Commerce recently carried out a survey | | | | scale that can only be achieved with a multi-tenancy |
| amongst 300 senior IT managers across France, | | | | platform, users can benefit from a configured service |
| Germany and the UK, to find out the current | | | | that can respond to rapidly changing B2B integration |
| challenges that businesses face when trying to | | | | demands, with a monthly fee that reflects usage |
| integrate different sections of the business. Four out | | | | levels. |
| of five companies said that they experienced | | | | This approach to overcoming B2B integration hurdles |
| problems with their current B2B capabilities mainly due | | | | not only reduces the cost of B2B integration today, |
| to the use of legacy technology which made it | | | | but also helps businesses manage fluctuations in |
| difficult to integrate their trading partner data with | | | | demand in this volatile market and puts them in a |
| their back end applications. | | | | better position for further growth come the upturn. |
| The fact is that many companies not only rely on old | | | | It may not result in rapid growth for the organisation |
| technology, but also on manual processes. There are | | | | at this moment in time, but in this current climate, |
| still companies sending faxes and manually enter | | | | staying flat is the new black. |
| orders on to a system. One small human error, or a | | | | |