Websphere business integration connect express business partner briefing
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WebSphere Business Integration Connect – Express Business Partner Briefing. Agenda. Mid-market Overview The Connect capability and the failure of traditional approaches to B2B Customer requirements and the mid-market opportunity Community Integration: IBM’s approach to operational B2B

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Websphere business integration connect express business partner briefing

WebSphere Business Integration Connect – ExpressBusiness Partner Briefing


Agenda

Agenda

  • Mid-market Overview

  • The Connect capability and the failure of traditional approaches to B2B

  • Customer requirements and the mid-market opportunity

  • Community Integration: IBM’s approach to operational B2B

  • WebSphere Business Integration Connect – Express

  • How IBM enables Community Integration with Community Integration Services

  • Partner’s Guide


Today s it environment

Today’s IT Environment

IT environments are increasingly heterogeneous and complex

Mobile Devices

Legacy Systems and Applications

Databases

Intranets

Value

Chain

Extranets

Internet

Suppliers &

Partners

Networks

Transactions

Heterogeneous Platforms

Customers

The role of modern middleware is to integrate and simplify


Mid market opportunity

$11B

9% CGR

30K

Companies

Large

1000+

Employees

Medium

100 - 999

$15B

11% CGR

500K Companies

100M Enterprises

Small

1-99

Mid-market Opportunity

  • Technology driving mid-market & departmental business leadership in serving customers

    • Market growing 11% or 2x IT market growth

    • Represents 54% of all IT spending

    • Represents over 76% of those that expect to spend more on IT this year

$15B Worldwide SMB Middleware Opportunity

"Through 2005, MSBs will try to milk every drop of value from already-deployed technologies. They will focus most of their business application budgets on improving and better leveraging already-installed applications. Advances and affordability in integration middleware will help MSBs extend their application capabilities.

Source: "MSB Application Portfolio Success: Understand and Adapt," James Browning Gartner Inc, July, 2003


Medium business requirements

Tailored business solutions, not technology solve business problems

Customers value regional focus and industry expertise

Application component primary decision being made

Company’s industry is their universe

Customers require short time to value & operational efficiency

Economic uncertainty drives need for near term top & bottom-line results

Making better use of existing information & existing IT infrastructure

Risk adverse & capital constrained

Medium Business Requirements

Customers Require Solution Providers Who Understand Their Business

"Regional-specific and country-specific systems integrators are key channels to market for AIMP software, especially when it comes to tackling the midmarket."

Source: "AIM and Portal Market Forecast and Trends, 2002-2007," Gartner Inc, 8/18/2003


End to end integration for mid market customers

Supply chain integration with UCCnet

WebSphere Business Integration

Express for Item Synchronization

Partner

Integration

Process

Automation

Application

Integration

System

Integration

End-to-end Integration for mid-market customers

B2B trading partner integration

WebSphere Business Integration

Connect Express

Application and system integration

using secure messaging

WebSphere MQ Express


Agenda1

Agenda

  • Mid-market Overview

  • The Connect capability and the failure of traditional approaches to B2B

  • Customer requirements and the midmarket opportunity

  • Community Integration: IBM’s approach to operational B2B

  • WebSphere Business Integration Connect – Express

  • How IBM enables Community Integration with Community Integration Services

  • Partner’s Guide


Websphere business integration connect express business partner briefing

Community IntegrationMoving from cobbling to weaving in extending business integration across the firewall.

Cobble: [to assemble or make something roughly and quickly]

Weave: [to introduce separate elements into something larger]


Evolution of community integration

Evolution of Community Integration

Portals

  • Manual

  • Multi-entry

  • Error-prone

  • Not synchronized


Evolution of community integration1

Evolution of Community Integration

Portals

Public/consortium

  • Shared Applications

  • Application-specific integration

  • Control/Privacy concerns

  • Brand “in-between”


Evolution of community integration2

Evolution of Community Integration

Portals

Public/consortium

B2B point-to-point

  • Expensive

  • Partner enablement roadblocks

  • Interoperability issues

  • “Hard-wired”


Websphere business integration connect express business partner briefing

Why hasn’t B2B taken off?Many inflexible, complex and costly point-to-point solutions have prevented customers from achieving the promise of B2B.

  • B2B integration has not met ROI expectations

    • Too hard, too long, too expensive

  • Most B2B is based around disjointed point-to-point connections

    • Only addressing specific business processes or domain expertise

  • Partners use a variety of standards, protocols and transports

  • Today’s B2B solutions are not addressing complete integration problem


Agenda2

Agenda

  • Mid-market Overview

  • The Connect capability and the failure of traditional approaches to B2B

  • Customer requirements and the mid-market opportunity

  • Community Integration: IBM’s approach to operational B2B

  • WebSphere Business Integration Connect – Express

  • How IBM enables Community Integration with Community Integration Services

  • Partner’s Guide


The market today

The Market Today

  • Market Opportunity

    • The average spend on EAI is $2.8m and the average spend on B2B is $1.5m (1)

    • 49% of B2B project spend is for integration tools and applications (top spend) (1)

    • By 2005, more than 60% of SMBs will use some software technology to integrate their apps with those of their customers (0.7 probability) (2)

  • Market Trends

    • Pickup in B2B spending in 2003 - companies are exploiting Internet-based B2B technology after the post "dot-com" B2B hangover

    • Growing customer demand for convergence of intra-enterprise (EAI) and inter-enterprise integration (B2B) solutions - Community Integration (1)

    • Drive to electronically communicate with as many partners as possible instead of a few strategic ones

    • B2B industry adoption is being driven by the "gorillas" to achieve cost savings. (e.g., WalMart initiative) & government/industry initiatives


Websphere business integration connect express business partner briefing

Customer RequirementsCustomers are looking for a low risk, cost-effective, and flexible solution to integrate processes with their partners and suppliers.

  • Flexibility to adapt to partners’ ever-changing processes & unique connectivity requirements

  • Real-time visibility into multi-tier, community-wide processes

  • Scalability to start small, but maintain high QOS with larger number of participants

  • Rapid and cost effective partner on-boarding

  • “Clean” data from & to partners


Agenda3

Agenda

  • Mid-market Overview

  • The Connect capability and the failure of traditional approaches to B2B

  • Customer requirements and the mid-market opportunity

  • Community Integration: IBM’s approach to operational B2B

  • WebSphere Business Integration Connect – Express

  • How IBM enables Community Integration with Community Integration Services

  • Partner’s Guide


Websphere business integration connect express business partner briefing

End-to-End Process

“Buy Side”

“Sell Side”

Company

Non-Production

Spend

HR

Finance

Production

Spend

Purchasing

Distribution

Sales &

Marketing

Sales

Operations

Management

Manufacturing

Distribution

Storage

Community IntegrationWith Community Integration, companies enable integration of business processes spanning different systems across enterprise boundaries.


The community integration ecosystem

The Community Integration Ecosystem

Community Participant

Community Manager

Peer Participant

  • Driven by the need to maintain its business with its customers

  • Looking for continuation of its business rather than driving dramatic change and growth

  • Integration with trading community provides opportunity to grow business

  • Could become a Peer within the community if they integrate further with other partners

    • Visibility of new business will drive the decision

  • Mandates standards adoption to a number of its downstream trading partners.

  • The Community consists of the dominant trading partner and the first tier of Community Participants

  • Community Manager focuses only on the first tier suppliers, who integrate directly to it, but need to “see” their entire value chain

  • Needs to be able to react to the rapidly changing dynamics of their environment

  • They will be, at times, a community manager, a community operator and a community participant according to needs and the exchange of information required

  • They operate in a fluid, ever changing environment to which they must adapt in a cycle of continuous improvement


Websphere business integration connect express business partner briefing

Strengths of Community Integration vs. Point-to-Point B2BCommunity Integration creates sufficient links between partners such that all participants of the community gain value from the relationship.

  • Visibility of participants at the community and sub-community level

  • Alignment of business objectives via adaptable SLAs

  • Flexibility to address each participant’s requirements

  • Facilitation of a critical mass of participants

  • Repeatable and scalable community management to add new partners and new processes


Challenges of community integration

Challenges of community integration

WebSphere Business Integration Connect – General Overview

  • Successful intra-enterprise business integration is not a guarantee of successful integration beyond the boundaries of the enterprise

  • Costs associated with traditional B2B and participant on ramping have not lead to profitable community integration

  • Though 90% of the current B2B market believes it is operational on a large scale, it does not have a plan to address the changing business environment or will enable flexible real time integration of its partner’s B2B data

  • Continuous demand placed upon trading partner requirements and relationships have not created an environment that has delivered the benefits of long term connectivity

  • Short term ROI pressures have not allowed comprehensive partner assessment and activation to take place

  • Traditional B2B models have not recognized the disparate roles assumed by diverse range of trading participants or the motivation objectives of participants within the community


Agenda4

Agenda

  • Mid-market Overview

  • The Connect capability and the failure of traditional approaches to B2B

  • Customer requirements and the mid-market opportunity

  • Community Integration: IBM’s approach to operational B2B

  • WebSphere Business Integration Connect – Express

  • How IBM enables Community Integration with Community Integration Services

  • Partner’s Guide


Websphere business integration connect express business partner briefing

WebSphere Business Integration Connect – Express

  • Enables customers to join sophisticated trading communities quickly and easily with this cost-effective, out-of-the-box B2B solution

    • Enables community integration with customers and trading partners to realize the benefits of an effective operational B2B environment using AS2 and HTTP

  • Respond to your changing business environment in a timely fashion

    • Use existing skills to connect to trading partners

    • Reduces the risks and costs associated with traditional B2B environments

  • Same core functionality as WebSphere Business Integration Connect Advance and Enterprise editions but enables community participants rather than the hubs

    • Drives the critical mass required to make a trading community effective

    • Connect to up to 5 trading partners and realise mutual trading benefits

  • Operating Systems

    • Windows 2000, SuSE and Redhat Linux

  • Pricing

    • $500/CPU and $500/Partner Connection

  • AS2 certified from Drummond group

Community

Hub


Websphere business integration connect express business partner briefing

Enabling the Value Network for Community IntegrationWebSphere Business Integration Connect extends the value network to deliver additional benefits to customers.

  • Community Integration Services

    • Business Consulting

    • Implementation and Operational Support

  • Software Application Providers

    • Supply Chain Management Applications

    • Enterprise Resource Planning

    • Customer Relationship Management

  • Trading Communities

    • Buy-side Communities

    • Sell-side Communities


  • Websphere business integration connect express business partner briefing

    Benefits

    • Reduces the time to on-board a partner from months to days

    • Slashes cost of enabling and managing a new process between two partners by 60%-70%

    • Cuts Community Integration TCO by more than 50%

    IBM’s Community Integration SolutionIBM delivers business value to customers extending their Business Integration with an external community.

    • Focuses on Community Integration instead of disjointed point-to-point connectivity

    • Fuses Community Integration Software and “pre-packed” Services

    • Lowers risk through real-time visibility and extensibility for growth

    • Ensures availability of Community through process & partner level SLAs


    Websphere business integration connect express business partner briefing

    Services

    DefiningTradingEnvironmentScope

    Defining Business Interactions

    Connecting Businesses Together

    Adjusting to changing business needs

    Ongoing awareness of business activities and relationships

    Community Integration Services

    implemented by Participant,

    IBM, Viacore or other Partners

    Ready

    Activate

    Operate

    Diverse Trading Communities

    Superior On-Boarding Tools

    Low Cost Scalability

    Visibility into live participant interactions

    Near elimination of ‘bad’ data

    Software

    Enterprise

    Enterprise

    Advanced

    Net: you are selling an aspect of IBM’s strategic B2B initiative

    Express

    Key elements of WebSphere Business Integration Connect V4.2

    Community Integration Services

    Community Integration Software


    Interoperability with other express offerings

    Interoperability with other Express offerings

    • WebSphere Business Integration Express for Item Synchronization

      • Communicate inventory synchronisation with the wider community using this AS2 channel

    • WebSphere Business Integration Connect Advanced Edition

      • Grow your B2B implementation and connect to more partners to grow your business and realise the greater mutual benefits of multi-standard operational B2B


    Agenda5

    Agenda

    • Mid-market Overview

    • The Connect capability and the failure of traditional approaches to B2B

    • Customer requirements and the mid-market opportunity

    • Community Integration: IBM’s approach to operational B2B

    • WebSphere Business Integration Connect – Express

    • How IBM enables Community Integration with Community Integration Services

    • Partner’s Guide


    Business partners

    Business Partners

    "Regional-specific and country-specific systems integrators are key channels to market for AIMP software, especially when it comes to tackling the midmarket."

    Source: "AIM and Portal Market Forecast and Trends, 2002-2007," Gartner Group, 8/18/2003

    • Customers value regional focus and industry expertise

      • Application component primary decision being made

      • Company’s industry is their universe

    • Overall, the ISVs and System Integrators (SI) are the preferred and primary vendors for most solutions, but in some solutions other providers are more significant.

    • ISVs are lead providers in integration and employee enablement solutions.

    • Medium businesses prefer to buy services from small SIs and from local/regional providers.

    • The low end of medium businesses are less likely to use large SIs, are more likely to use regional/local providers.

    • End-to-end services vendors appeal more to the upper end of medium business.


    Successful execution through partners

    IBM Offerings Must Meet Strict “Express Criteria” to Meet Mid-market & Partner Needs

    • Priced to Market

    • Complete Software Solution

    • Easy to Learn & Use

    • Easy to Install

    • Easy to Integrate

    • Extensible & Flexible

    • Easy to Manage

    • Right Function

    • Reasonable Footprint

    Successful Execution Through Partners

    Solution Providers in the mid-market need an open, flexible and secure software platform from a reliable partner

    • Key Route to Market

      • 79% solutions driven through local solution providers

    • Multi-platform support & open-standards maximizes partner’s future business flexibility

    • Proven secure & reliable platform maximizes long-term ROI

    • IBM will not compete in the application space

    Goal: Create joint revenue opportunities with partners through industry specific solutions


    Websphere business integration connect express business partner briefing

    Configuration wizards

    WebSphere Business Integration Connect - Express

    SOAP on HTTP channel

    Industry specific channel

    ISVs incorporate a sophisticated and versatile AS2 gateway in their own B2B solutions

    ISV

    You use APIs to embed IBM’s B2B connectivity capabilities within a industry specific or bespoke B2B solution for SMB or the mid-market


    Websphere business integration connect express business partner briefing

    WebSphere Business Integration Connect - Express

    ERP

    CRM

    Solution providers embed WebSphere Business Integration Connect – Express into a complete application

    Solution Provider

    Solution

    Provider

    You embed B2B connectivity capabilities within a complete solution that resolves ERP and CRM requirements. You can demonstrate better value and shared cost and risk benefits to SMB and mid-market customers


    Websphere business integration connect express business partner briefing

    Distributor

    Outlet B2B communities have visibility of the bottleneck. There is a huge strain on the supplier and manufacturer which they cannot meet. They need to at least preserve their business and want to capitalise on demand peaks to do so.

    Consumer demand for a product grows beyond expectation and places strain on the supply chain between the supplier, distributors and outlets.

    Outlet

    Current supply

    New demand


    Websphere business integration connect express business partner briefing

    WebSphere Business Integration Connect - Express

    The original manufacturer uses WebSphere Business Integration Connect – Express to share product and demand information with other licensed manufacturers who use their distribution networks to meet the new heightened demand.

    Consumer demand for a product grows beyond expectation and places strain on the supply chain between the supplier, distributors and outlets.

    Outlets

    Distributors

    Licensed manufacturers


    Pricing

    Pricing

    • WebSphere Business Integration Connect – Express v4.2

      • $500 per license (single license per processor)

      • $500 per partner connection

      • Up to 5 connections per license

    • Example:

      • 2 x license at list = $1000

      • 3 x connections on one license = $1500

      • 5 x connections on other license = $2500

      • TCO = $5000


    Partner value summary

    Partner Value Summary

    Build on IBM’s new community integration platform to deliver a value-priced total solution designed to meet the needs of mid-market customers who want to participate in dynamic trading partner communities

    • ISVs

    • Easy to embed into total integration solution that will appeal to broad customer base

    • Easy to implement with minimal skills investment and utilises minimal system requirements

    • Targets long standing EDI over the internet opportunity and protects customers’ EDI investments

    • Solution Providers

    Quickly deliver a complete integration solution that incorporates a versatile and sophisticated community integration solution that fits the budgets of your mid-market customers while letting them grow with the industry leader

    • Easy to download from the web

    • High appeal for the mid-market with low price point and minimal system requirements

    • Highly embeddable and versatile Java solution for community integration

    • Quick and easy installation and configuration reduces time to value and grows ROI for B2B


    Websphere express enablement program

    WebSphere Express Enablement Program

    Join Now !

    www.expressenablement.com

    Benefits Include . . .

    • A $3000 value … No upfront financial investments or commitments to IBM.

    • Online sales and marketing materials.

    • Online technical support (e-mail or chat)

    • Complimentary online IBM education courses.

    • Code for development and training purposes at no charge.

    • Early assistance in building your applications on IBM software.


    Other resources

    Other Resources . . .

    • www.ibm.com/websphere/partners/

      www.ibm.com/websphere/partners/wbi

    WebSphere Partner Information

    Teleconferences

    Oct 7: WebSphere Business Integration

    Connect – Express

    Oct 15: WebSphere Business Integration

    Express for Item Synchronization

    . . . and more

    WebSphere Business Integration

    Partner Information

    Sales Resources

    Technical Resources

    Education

    Analyst Reports

    . . . and more


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