Thinkronization Newsletter - June 2010
It is officially summer and we are nearly half way into 2010! Time flies and there is yet more to report since the last edition of “Thinkronization”. The last edition outlined events in health care reform and pending financial reform that had impact on the business and data integration space. This edition profiles other items of interest for the professional focused on the integration of systems and electronic collaboration with business partners. We are pleased to offer news, articles, research, and trends related to Business-to-Business Integration (B2Bi), Enterprise Application Integration (EAI), and Data Integration (DI), as well as updates concerning our company and service to clients.
Speaking Of Company Updates
In July REMEDI begins its 17th year in business! Thanks to those who have contributed to REMEDI's success, and thanks for your consideration in tomorrow's business and data integration initiatives.
It's funny to look back at events that happened in the year we were established. The White House launched its first web page, initial ecommerce sites were established, the price of regular gasoline/gallon was $1.16, the cost of a first-class stamp was $0.29, Forrest Gump was the top grossing movie of the year, ER and Friends premiered on NBC, and the O.J. high speed chase, where were you for that one?
In many respects it seems as though it was just yesterday that we launched REMEDI. In other respects it has been a long haul and the Industry has been through a lot of change...the emergence of the Internet, Y2K, XML (replacing EDI J), Dotcom (and bomb), SOX, EDIINT, HIPAA, purchasing portals, etc. REMEDI and our clients have endured those changes, not to mention three economic downturns of major significance. Now, as outlined in the next section, we prepare for a time of consolidation across the B2Bi, EAI, comms/MFT, and business intelligence software space.
Events Transpiring Among Integration And MFT Software Companies
Industry analysts have forecasted consolidation across B2Bi, EAI, and MFT solutions for some time. And why wouldn't they, they are the ones advising and researching on behalf of these software companies so they have the inside track. Not that this is the only reason analysts forecast consolidation. It just makes sense in terms of efficiencies, aligning people, process, and technology together into one integration competency center. Consolidation also provides software companies, and their clients, a spectrum of integration and communications tools under one corporate umbrella, or provides more robust solutions for those software organizations already offering integration suites.
Columbus Business First was the first to scoop rumors of the IBM and Sterling Commerce deal and they were among those confirming the deal. Word from IBM / Sterling information releases outlines the synergies that support the acquisition and the value to the customers of both. They indicate that until the transaction closes (later this year) business as usual should be expected from both parties. Analysts expect that the inherent value of Sterling Commerce will be maintained by keeping Sterling associates and solutions intact.
In terms of IBM's motivations to get back into the B2Bi and network services space there is a lot of chatter. IBM's Master Plan Takes Shape offers some speculation. And a quick search of Blogs and discussion groups offers many other opinions.
This is by no means the only consolidation move that has made headlines. A list of others made year to date include:
- GXS / Inovis - GXS Completes Merger with Inovis
- SAP / Sybase - B2Bi implications, SAP gets EC Gateway B2Bi product with traction in healthcare EDI
- TIBCO / Foresight - SOA/B2Bi developer acquires EDI and EDI/healthcare standards, productivity, and validations developer
- Accellos / vSync - Microsoft Dynamics VAR expands EDI and shipping solution offering
- Ipswitch / Messageway - Ipswitch Buys Managed File Transfer Firm Messageway
Preparing For The Return To Growth
While battling the economic conditions of the past, projects that related to efficiency, effectiveness, and automation was the major charge of most IT organizations. This was evident in the types of engagements we participated in as well as what was generally observed in the environment. As we emerge from the economic funk, integration projects underway seem oriented towards a return to company growth, or at least preparation for the much anticipated event.
Integration projects that support this notion of preparation for growth include those increasing the use of information, analytics, and collaboration. Others, all seemingly derived from the above, involve attracting and retaining new customers, strengthening current customer relationships, and initiatives that create competitive advantage. It is also noteworthy that Initiatives that have appeal in good and bad times revolve around improving business processes and reducing enterprise costs. The numbers and types of these projects have remained steady over the years.
Preparing for the return to growth is a theme I have heard frequently the last few weeks, and the reason I chose to write this piece. From a Gartner Webinar outlining CIO initiatives past/present/future, to the SHARE article I just read in InformationWeek, to meetings with an integration vendor, to a recent review of our book of new business, new types of initiatives not present in the last two years are everywhere. The pivot point around much of the preparation for growth seems to be relative to collaboration.
Partner collaboration, or data sharing as the SHARE article calls it, still provides companies plenty of opportunity to increase performance and achieve objectives they view as important as the InformationWeek Analytics Data Sharing and Integration Survey points out. The survey highlights that while there are a lot of integration points across the business network, successful collaboration is often inhibited by organizational resistance/interest, budget limitations, multiple integration tools and standards (or lack thereof), custom integration/maintenance, and slow integration turnaround time to name a few. This creates an opportunity for IT to champion the benefits of integration (see B2B eCommerce - The Stimulus Package For Your Organization), along with the chance to lobby for a comprehensive integration suite that speeds implementations and supports multiple standards as well as proprietary ones (see Integration Strategy, Integration Suites - What's Your Plan). The article also quotes that you have an unsuspected ally in the CFO office given integration/collaboration benefits, and the CFO hot item of late, electronic reconciliation of payments (see related article that follows, and Who Does Your IT Department Sell To?).
Take a look at the SHARE article when you have a moment, it has a lot to offer pointing out the importance of data sharing in our organizations' preparation for growth. InformationWeek, not usually offering much in the way of content for the integration professional, hits this one way out of the park with its survey and assessment of where the market is with collaboration and the opportunities that exist with further collaboration and integration.
Subscriber Contribution - What About Electronic Payments?
The last edition of THINKRONIZATION had an article speaking of the relative lack of traction in electronic payments (see What About Electronic Payments?) even among those organizations doing a lot of B2Bi volume. We wandered through a variety of reasons why this might be. One reason we neglected to mention happened to be pointed out by a reader. Here were his comments.
“...But the main reason I just had to write about your latest newsletter was your question concerning the relative lack of interest in vendor payments via EDI even for companies otherwise heavily invested in the technology. Your short essay never touched on the real reason which I found strange considering your experience and background. The reason is really pretty simple, and I have set up EDI-based payment systems. It is this: Non-payment related EDI transactions involve only 2 parties, the buyer and the seller of goods or services. But the moment you want to do PAYMENT via EDI, third and even (possibly) fourth parties become involved, namely the respective vendor's banks. For buyer A to submit a payment for a service from supplier B, the EDI transaction usually has to go through A's bank which then must communicate the transfer to supplier B's bank which then must (should) inform vendor B of payment receipt, etc. I'm not saying this is un-doable or always difficult, but it is another transaction with a separate trading partner (my bank) and the same is true for my supplier or customer (their bank). This then involves more development and ongoing effort (documents, testing time, operations attention, etc) and may involve otherwise disinterested parties (the banks) whose IT groups have their own issues, schedules, etc. When you get down to the details (as I have for many years), EDI takes some attention. When you increase the number of parties involved in a transaction everything gets a little slower and more complicated. From my experience (and I was an EDI manager at 2 companies for a total of 11 years) this extra layer of trading partners explains the relative lack of interest in EDI payments. Take care, have a great year, and thanks for the opportunity to comment.”
Thanks Matthew for pointing out my omission and providing an excellent outline of the financial EDI parties, process, and an additional reason for possible disinterest in implementing electronic payments. We appreciate your comments and invite others to do the same when people find an error, omission, or have contribution on a topic of particular interested to them.
Invitation To Vendor Contributors
In an effort to provide our readers more access to market information, research, and opinion pieces, we are offering space to business and data integration vendors to provide contributions within THINKRONIZATION. Such contributions will provide more value than a sales pitch and submissions will be accepted and published in collaboration with REMEDI editors.
If you are a vendor and would like to make contribution to THINKRONIZATION, please send an email to contributions@remedi.com.
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