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Lori Brofford, Senior Product Manager, IBM Sterling B2B Services.

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1 Lori Brofford, Senior Product Manager, IBM Sterling B2B Services.
October 18, 2011 IBM® Sterling B2B Cloud Services Flexible cloud technologies and expert services to optimize your dynamic business network Hello. My name is Lori Brofford and I am a Sr. Product Manager for IBM, focused on our B2B Services offerings. Today, we’ll be talking about how our cloud-based IBM Sterling B2B Collaboration Network delivers the B2B integration and visibility that you need to connect and integrate to virtually any partner, anywhere.

2 Payment Service Providers Outsourced service providers
Success depends on optimizing and transforming your dynamic business network… Suppliers Logistics Suppliers Remote Location Customers Your Enterprise Customers Internal Employees Government Oversight Accounts Payable Supply Chain LOB 3rd Party Services Suppliers Services LOB Payment Service Providers Private Cloud A Dynamic Business Network enables companies and their customers, partners and suppliers to connect, communicate and collaborate in a productive and secure manner, driving positive business results for all involved. Every company has a Dynamic Business Network because in today’s global and virtual business climate, companies rely on meaningful and consistent interactions with customers, suppliers and other business partners to deliver the goods or services that they sell to the market. B2B Collaboration is the ability to automate business processes, such as procurement, between two or more companies and is critical to enabling and optimizing a company’s Business Collaboration Network. Commercial Customers Outsourced service providers Customers 3rd Party Services Logistics Legal Services Payroll providers To compete in today’s business environment, organizations must execute across a broad and increasingly dynamic business network.

3 Companies across all industries are facing an increasingly complex B2B Integration problem…
Multi-Enterprise Organization’s Trading Partners Protocols Reliability Governance Visibility Standards As companies are forced by market drivers to become globally integrated enterprises, they continually need to expand their ecosystems with more and more partners. This expansion increases the need for integration. Business-to-business projects play a critical role in channel and partner integration with a fundamental challenge of seamless, secure and reliable integration across a multi-enterprise value chain. Multi-enterprise data, process and application integration needs are rapidly growing, and so B2B projects are proliferating to meet these needs. The IT developer’s challenge today is to create a B2B abstract layer in a multi-tenant integration environment to support emerging transport and communication protocols, standards, and integration technologies required to support dynamic business needs. Integration Technologies Data formats SLAs The need to be globally integrated is driving an expansion of ecosystems and the number of partner organizations transacted with

4 Resulting in these business challenges...
Suppliers Lack of real-time business process visibility Increasingly complex and diverse business partner communities These constantly evolving and expanding ecosystems cause many challenges for companies today - especially if you think about how complex that ecosystem truly is. A typical company has many types of internal and external business partners and each have their own set of B2B requirements or capabilities. These requirements often differ by region and industry. Some partners are technically saavy and others are not. Most companies are not fully B2B enabled on either the buy or sell side, so there are manual, paper-based business partners. These manual partners generate a lot of errors and require a lot of human intervention to buy from or sell to. There’s limited B2B resources, typically focused on higher priorities, that are unable to automate these manual partners – they’re simply isn’t time. This causes a lack of visibility into supply chain processes. Too many costly error-prone manual business processes Limited resources focused on B2B 3rd Party Services Logistics Legal Services Payroll providers

5 Companies need comprehensive B2B Integration capabilities to…
Reduce the time and complexity of securely and flexibly integrating 100% of partner communities Seamlessly automate and extend internal business processes to external partners Provide visibility into actionable information across key IT and business processes Accelerate the ROI of B2B projects and use their internal resources where they need them most Companies need a holistic integration strategy that can…..

6 IBM provides the necessary agility foundation to gain and sustain your competitive advantage…
Connectivity & Integration B2B Integration Messaging and Integration Foundation Cloud Integration B2B Cloud Services Public Cloud Integration Private Cloud Integration Enterprise Service Bus B2B Gateway Managed File Transfer Message-oriented Middleware B2B Process Applications B2B Managed File Transfer A2A Managed File Transfer IBM has multiple B2B Integration offerings but today we’re going to focus on B2B Cloud Services. Transformation Engines Visibility Governance and Community Management Security, Integrity, Reliability Methodologies and Expertise

7 So let’s get into some of the details around how the Sterling B2B Collaboration Network can help you connect and manage global business partners. IBM® Sterling B2B Collaboration Network Rapidly connect, exchange, and manage business data with global partners

8 Seamlessly automate and extend internal business processes to global partners...
Your Company e-Invoicing Validate signed invoices Supplier Portal Service Bureau for SWIFT SWIFTNet Flexible small partner enablement solutions Sterling B2B Collaboration Network provides a single, secure and reliable connection to all your business partners. Sterling B2B Collaboration Network is a cloud-based, B2B Integration as-a-Service solution providing secure connectivity and collaboration with customers and business partners. Some features include: Global Partner Reach through connections to over 100 other B2B Service providers worldwide Processing of virtually Any Data Type, whether that be EDI, XML, Flat File, or even binary data. Offer the widest array of communications protocols in the industry Highly Available processing infrastructure with over 99.9% YTD Uptime Archival of data for 35 days And offerings to easily enable smaller business partners We can handle any kind of data communication and any file and we can move it through the network to a trading partner. We also have many interconnect gateways in the event that you have to send documents to customs agencies (US, Canada, Belgium) or automotive OEM’s. We exchange information with trading partners on other B2B service providers as well. We realize that your current community will continue to exist but with the expansion of collaborative commerce, you’ll be adding new partners with new requirements as well. In addition, we realize that standards evolve and change overtime. EDI is still in full support with Sterling B2B Collaboration Network, but we also support the exchange of non-EDI files to accommodate collaboration of any type. pre-connected trading partners EDI/Non EDI Managed AS2 Gateway Fax Conversion

9 Now let’s move on to the IBM Transformation Services.
Transformation Services Collaboration flexibility regardless of data format

10 IBM® Sterling Mapping Services and IBM ® Sterling Transformation Services Reduces the strain on resources for complex integration requirements Data maps developed, maintained, supported, and tested to your specifications and enables data to be converted from one format to another In-network translation supporting: EDI to EDI EDI to Proprietary Proprietary to EDI EDI to XML XML to EDI XML to XML XML to Proprietary Proprietary to XML We have offered transformation services for decades. Previously they were called ‘translation services’, but IBM already had a specific meaning for that term, so they’ve been renamed to Transformation Services. Mapping Services includes the process of gathering the data requirements from the client, building a Mapping Requirements Specification (MRS) from the requirements, and then creating an actual map to be used during processing to perform the actual translation of the file. As data is processed, profiles indicate whether data needs to be transformed and also the specific input and output data formats involved. Transformation Services is a critical component of expanding your global business community, as data formats differ by region, by country or even by industry. Being able to accept or create the specific data format that your business partner requires is obviously critical to the success of automating your business processes with that partner.

11 Small partner community enablement solutions Eliminate costly error-prone manual business processes
Now let’s focus on our small partner enablement solutions to help you electronically reach a larger percentage of your business partners. Automating business processes with smaller partners provides incremental cost savings and maximizes your investment in your B2B infrastructure.

12 Collaboration Network
Extend your electronic B2B community to partners and customers regardless of their technical expertise or size… Your Company IBM® Sterling Supplier Portal We provide several services that can extend and support the expansion of your B2B processes to trading partners who do not have the capability to handle EDI or XML transactions. Our Supplier Portal is our next generation Web Forms offering and all that is required for partners to access Supplier Portal is an Internet connection and a web browser. Documents received are displayed in HTML format and users can create response documents by simply keying information into an HTML form. The HTML is then transformed into the required B2B data format. Our Fax Conversion Services allow inbound faxes to be transformed into a B2B data format so these documents can now be streamlined and automated just like any other EDI business partner. We also support inbound and outbound capabilities for global business partners. We support both SMTP and X.400 protocols to connect to Sterling B2B Collaboration Network. IBM ® Sterling Fax Conversion Services IBM ® Sterling B2B Collaboration Network access to business partners

13 There is value in automating even small trading partners…
Proprietary & Confidential April 21, 2017 There is value in automating even small trading partners… The cost is in the manual processing of a document, regardless of volume per partner Assume the processing of an order or invoice costs $10: 100 partners x 1000 transactions x $10 = $1M 1000 small partners x 100 transaction x $10 = $1M Automation = improved cost savings & profitability For a moment, let’s forget the size of the partner and think about the main component of cost, and that’s the cost of the manual processing. A study conducted by Sterling and Forrester Consulting revealed that the average cost of processing a paper document is between $10 and $12 and that a minimum of 10% of those documents have mistakes. Reconciliation costs to correct mistakes in both labor and materials averages $53. If the cost of an invoice is $10, then it doesn’t matter who you are processing it for, it is $10. Therefore, for each document automated, you save some portion of the $10 regardless of how many you receive. Traditionally companies have focused where the biggest bang exists, or critical mass… In order to maximize ROI of the investment, you must either automate more documents or more partners. This means moving down the tiers of your supply chain and automating as many of these smaller, lower volume business partners as possible. © 2005 Sterling Commerce

14 Now I’d like to talk about some of the additional services offered to help extend your reach into your dynamic business network. Additional community enablement services Simplifying business processes and partner expansion

15 Collaboration Network
IBM® Sterling Managed AS2 Gateway Simplifies the setup and management of AS2 connectivity Comply with AS2 mandates without the expense of having to build complex infrastructure for secure Internet communications Enables non-AS2 capable partners to communicate with AS2 capable partners The Managed AS2 Gateway utilizes a customer’s digital certificate and URL. Data is ‘signed’ as the sponsor company Your Company Managed AS2 Gateway The Managed AS2 Gateway service allows non-EDIINT capable partners to meet AS2 mandates with literally no changes at all. Your company can connect to Sterling B2B Collaboration Network using whatever protocol you prefer. When we deliver the data to the business partner, we will initiate an AS2 connection that uses your digital certificate and URL, not an IBM certificate and URL. So the data will be signed and encrypted just as if you did the AS2 connection from behind your firewall. This allows you to meet AS2 mandates without investing in additional infrastructure or requiring additional resources or expertise. Again, with literally no changes at all, you can meet a critical customer’s mandate to do AS2 protocol. AS2 AS2 EDI Sterling Collaboration Network AS2 AS2 IBM® Sterling B2B Collaboration Network

16 Collaboration Network
IBM® Sterling Service Bureau for SWIFT SWIFT infrastructure in the cloud simplifies global banking communications and accelerates ROI Simplify worldwide banking communications without significant infrastructure investment, via hosted access to SWIFTNet Meet compliance and regulatory requirements, while lowering risks and costs and increasing your operational control Improve cash control by integrating and matching supply chain events with related financial transactions and reports Accounts payable receivable Treasury Other SCN Departments SWIFTNet Your Customer and/or Supplier Communities Companies are often faced with integration to numerous individual banks as part of your dynamic business network. Many banks have differing requirements such as transport methods, protocols, security requirements, and proprietary data formats. This complexity is not only expensive, but also limits a corporations ability to quickly view their cash position or liquidity. By leveraging your existing connection to Sterling Collaboration Network, you can now access any bank in the SCORE program on the SWIFT network. There are about 2000 banks included in this program which is about 25% of the overall SWIFT network. IBM Sterling Service Bureau for SWIFT Provides access to the SWIFT network via your existing connection to the Sterling B2B Collaboration Network Enables technical on-boarding of banks Requires no investment in SWIFT Hardware and Software infrastructure Requires no dedicated connectivity to SWIFT network Requires no consulting assistance to implement SWIFT solution Requires no training and deployment of security officers Requires no resources to implement, manage and support a SWIFT specific infrastructure IBM® Sterling B2B Collaboration Network 16

17 IBM® Sterling Community Development Services
Onboard partners faster, automate document exchange quicker Your Company Another Network Network “B” Another Network “A” Four Community Building Programs Conversion Assistance Survey Recruitment Document Certification Rapidly enable global partners, regardless of size, by providing quick, scalable & easy options for electronic compliance Maximize integration ROI by enabling 100% electronic participation Provide additional options to smaller partners without requiring additional infrastructure or resources IBM® Sterling B2B Collaboration Network Community Development is a key part of every project team that provides the expertise needed to build electronic trading relationships, whether that be bringing up net new partners, or implementing a new document type with existing partners. There are 4 specific programs offered: We have a Conversion Assistance Program (CAP) This is a program to coordinate and assist you and their Business Partners in the migration of existing B2B traffic from your current service provider to the Sterling B2B Collaboration Network. There is a Survey Program If you’re uncomfortable with mandating a B2B solution to your Business Partners, you may wish to survey them to determine if a sufficient number of them would be interested. Community Management Services can perform this task and report back the results of the survey to you for further decision making. We offer a Recruitment Program This program is designed to reach Business Partners and inform them of your business initiative and determine whether they intend to comply. Lastly, we offer Document Certification Program Once a partner has agreed to comply with your B2B initiative, we can test and verify their EDI data against the your EDI specs to make sure they are generating valid EDI as you expect it. We conduct this type of testing to identify errors and assist with compliance and to try to speed up the process of implementing and testing new partners or document types.

18 Now let’s move on to the Visibility Services we offer.
Visibility Services Improve strategic decision making with real time visibility and alerts into your B2B operations

19 Process visibility for real-time B2B integration data management: anytime, anywhere
Real-time view into business processes and the associated transaction data: B2B transaction management Real-time views of B2B document status and ability to act on B2B transactions either on-line or via mobile app Reports: Analyze and report on divisional, department, customer, or supplier transaction activity Alerts: Create and send alerts based on critical business process parameters Customer Center provides visibility into product information, a knowledgebase for issue resolution and self service tools for reporting and managing issues Once you are on the Sterling Collaboration Network, these are the 4 ways that you can see into the business processes and transaction data. Our B2B transaction management tools are available via customer center and via our mobile app. Depending on the services purchased, you will use either Document Tracking or InFlight Data Management. You can track the status of EDI Interchanges, or your individual business documents and see if the data was received by the Trading Partner or whether it is still sitting on our system waiting to be picked up. This can be very important between mfg and retailers when dealing with Advanced Ship Notices. This is critical because the retailer has to have notification 15 minutes before arrival of goods on the loading dock so that they can be sure they have employees on the dock ready to unload. If the Advanced Ship Notice does not arrive within 15 minutes, of the shipment, the mfg is charged a % of the total order, called a chargeback. These chargebacks can amount to large sums of money, as well as potentially impacting your vendor rating and the ability to bid on new business. Our Audit Reports provide much of the same information as our online visibility tools, The provide you with status of data, error information, and transaction counts. These reports are available in a flat file or a human readable format and can be ed to you, or delivered via your mailbox. Alerts create an to you based on a set of defined alert criteria. Some examples include receiving an alert to notify you when there is a delay in your partner retrieving your data from SCN, or set threshold level alerts to notify you if you send or receive a larger than expected file – so this is a way for you to quickly identify a file size anomaly. You can set the threshold alert for all partners or for a specific document or partner. You can set limits on file sizes or on EDI Interchange sizes. Customer Center is our one-stop-shop for Sterling Collaboration Network visibility tools. When you log on, you can see links to all the visibility and online tools that you are entitled to. In addition, there is a knowledgebase for troubleshooting, our Documentation Library, as well as the ability to log a support ticket online, or check the status of an existing support ticket, regardless of how it was submitted. For instance, if you call customer support, you can still check the status of your support case or to see if there are any updates through Customer Center.

20 IBM® Sterling Supply Chain Visibility
Extends process visibility by displaying the entire business process Provides both transaction status and the state of the process Purchase Order ASN Purchase Order TMS Demand Planning MRP Replenishment Procurement Plan Supply Shipment Status WMS Payment Invoice ERP/ Financial Supply Chain Management Logistics Finance PO Commit Receipt Single View Sterling B2B Collaboration Network As many of you may be aware, historically VANs have not provided business process level status and tracking – only status information of particular edi interchanges. Supply Chain Visibility is a business process visibility tool that can correlate 9 separate transactions within the order to cash or purchase to pay process. Each document basically represents a change in state of that particular order process. On the home page, users can select default portlets that display much like an overall dashboard to quickly see a snapshot of what you have defined as the most critical criteria. The portlets are updated real time and available immediately when you log on. In the tool, users can see information about specific orders and their associated transactions. There are colored circles that are quick graphical indicators that show which documents have been completed and what status a particular order is in within the order to cash or purchase to pay process. In addition, users can see ship to information, date information, and line item information. There is also an event log which tells you the last several actions that have occurred to a specific order. Users can configure their own alerts in the tool. There are default alerts based on the users role – either buyer or supplier. The most commonly requested alert is the ‘ASN not sent’ alert. This alert notifies the sender of an ASN if the ASN has not been generated and sent within the acceptable length of time.

21 Now let’s cover our B2B Process Applications.
B2B Process Applications High value applications without the support and infrastructure costs

22 IBM® Sterling e-Invoicing
Reduce the risk, cost and complexity of cross border tax compliant electronic invoicing Automates both buyer and supplier electronic invoice processes in compliance with country specific tax regulations, reducing corporate risk and exposure, and improving operational efficiencies Signature Services Apply all required advanced electronic signatures using authorized certificate authorities to create a tax compliant legal invoice Validation Services Confirm all required advanced electronic signatures are valid and were applied appropriately to all legal invoices Archive Services Online access to all valid invoices archived for the required individual country timeframes Also available as an on-premise solution The IBM Sterling e-Invoicing solution helps companies comply with cross border invoicing regulations specifically around VAT tax in Europe and other countries. In 2001 the EU ratified a directive that stated member states and their tax authorities must treat electronic invoices the same as they treat paper invoices. Some of the specific requirements in the Directive are data integrity and authenticity, not just during the transit of the invoice from supplier to buyer but also during the lifetime of the archive. In order to meet those requirements, the Sterling e-Invoicing solution leverages the digital certificate method of compliance. We offer Signature Services, Validation Services and Archive Services. In the Directive the Buyer and the Supplier have obligations. It is the supplier’s obligation to apply the appropriate digital signature to the invoice in order to make it a legal invoice. It is the Buyer’s responsibility to verify or validate that the supplier has the correct signature and that the certificate has not been revoked. Archive Services are the responsibility of both the buyer and supplier, according to their individual country timeframes. IBM Sterling e-Invoicing is also available as an on premise software solution. 22

23 Now Announcing... IBM Sterling Process Enrichment Service
Enables Customers to take a standard B2B document flow and ‘punchout’ to one or more data source via web services to either: Validate information within the business document or Gather additional information that will be used to enrich the business document content Supports any data type Tracked in online tools as part of your standard data flow – additional processing steps with status of ‘punchout’ call “Lite” translation of Web services request and response documents Any existing Sterling B2B Collaboration Network customer can access this service with no changes in connectivity All of you on the webex today are a privileged group of B2B Services clients for IBM. Today we are announcing two new B2B Services that are built using web services technology, so you are the first group of customers to hear about these new offerings. First we have our IBM Sterling Process Enrichment Service. This service enables you to make a call out to an external data source via web services to either validate information within the business document or to gather additional information that will be used to enrich the content of the business document. This service supports all data types, and also allows for ‘lite’ translation of request and response documents.

24 B2B Process Enrichment Service
Scenario A supplier wants to include information only available in the Carrier’s backoffice systems in the ASN to improve customer satisfaction Buyer Supplier B2B Cloud Service ASN Obtain Trailer number or Container number and insert into ASN ‘Enhanced’ ASN Carrier For instance, a supplier may want to include information in the ASN they are sending to their customer, but this information may only be located in the Carrier’s back office systems. The supplier can log on as usual and send their ASN. Based on the suppliers profile, we know they have signed up for the Process Enrichment Service. We then make a web services call out to the carrier’s system and gather a trailer or container number for instance. We can then add this trailer or container number to the ASN and then deliver the ‘enhanced’ ASN to the buyer. PROCESS INTEGRATION: ASN is sent by supplier Supplier profile (on SCN) indicates ASN needs additional information IBM constructs a web service call to the external data source IBM obtains Trailer or Container number from the carrier IBM updates ASN with Trailer or Container number and sends to Buyer

25 Now Announcing... IBM Sterling Synchronous B2B Process Service
Enables Customers to synchronously (aka Real-time) exchange with business partners: Pure web inquiry / response processing Full blown business documents such as purchase order and purchase order response Enables you to reach an entirely new group of business partners that require real-time processing Tracked in online tools as a separate data flow (but within your current view) with four new processing steps and associated status “Lite” translation of web services request and response documents Existing customers will need a new connection to the web services infrastructure Our second new service that we are announcing today is the IBM Sterling Synchronous B2B Process Service – the name is a mouthful, but it’s a huge change in how we’ve traditionally done business and processed data in our B2B Services environment. Most companies over the last several years have been implementing newer technologies such as web services, XML and real time order processing. As web services are enabled throughout the IBM customer base there will become a need to intermediate these differing web services interfaces between companies, much like we broker protocols between senders and receivers in the EDI VAN world. Synchronous B2B Process Service use cases can include either pure website inquiry / response type processing such as a price check or an inventory check for a specific item. It can also facilitate the synchronous exchange of full business documents such as purchase order and po response found in many XML standards..

26 Synchronous B2B Process Service
Scenario Repair person needs to quickly identify and procure repair part to service client repair from a local warehouse or preferred vendor Field Repair Person B2B Cloud Service Parts Supplier 1 Supplier n Manufacturer Warehouse Systems MFG Sends Web Service with Part Info Cloud Process Evaluates Part, Mfg Warehouses, and Preferred Suppliers to Determine Part Availability 3 1 2 Online Parts Marketplace 4 Identifies Needed Part Requests Part on Manufacturer Parts Portal 5 Checks Inventory Of Preferred Suppliers 6 Returns Supplier and Availability to the Portal Leverages the Existing B2B Structure and “Network Effect” Real-Time Process Orchestration using Web Services Enables Real-Time Inventory Checks, Product Identification, and Sourcing

27 IBM® Sterling B2B Collaboration Network
The flexible cloud solution for reliable, secure B2B Integration and visibility Simplified partner integration and communication: Connect to any partner, anywhere, using any data type with a single, secure, reliable connection Global reach to over 300,000 pre-connected trading entities with connections to over 100 public and private networks Easily expand your B2B trading community with Sterling Community Development Services Automate costly manual business processes Eliminate the majority of processing costs associated with exchanging paper-based documents with partners through solutions like Sterling Supplier Portal, Sterling Fax Conversion Service, Sterling e-invoicing, Managed AS2 Gateway, and Service Bureau for SWIFT Optimized B2B performance: Improve strategic decision-making with real-time visibility into your B2B operations Reduce the time required to onboard new trading partners Predict B2B costs with a pay-for-use service model

28 Questions?

29 Thank you!


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