Stanford University is remarkable for its close ties to the world of high technology. While other university professors sit in ivory towers, many Stanford instructors run high-tech companies on the side, or work closely with the industry, often involving students in key roles.
So when Stanford has something to say about managed services, people tend to listen. Stanford, in a study sponsored by B2B integration services provider, GXS, wanted to know how managed services affected B2B integration
The 39-page report from Stanford’s Global Supply Chain Management Forum, “B2B Managed Services, Business Value and Adoption Trends,” found a huge positive correlation between MSP services and integration. In fact, 96 percent of those polled said their B2B integration programs were made more valuable thanks to MSPs.
The survey has a semi-global reach, being based on responses from some 100 North American, Asian and European users.
The report illustrates a significant disconnect between partners. “Today’s corporations are more dependent upon their business partners than ever. Yet despite the critical co-dependencies, the interactions between companies and their business partners remains highly inefficient. Over 50 percent of the information exchanged between business partners travels over fax, email and phone rather than flowing directly between business applications via B2B integration technologies such as EDI and XML. The relatively low adoption rate for B2B is amazing when you consider that the first EDI systems were introduced four decades ago an eternity in the technology sector,” the report said.
The good news is that MSPs ease the migration to more automated, efficient and rich communications among partners.
And MSPs can also reduce the cost of these communications, the report found. Almost three quarters of those surveyed saw a cost benefit from switching from on-premises B2B integration, which requires significant capital expense, to Managed Services, which consist mainly of ongoing operating expenses.
“Developments in B2B integration technology have ignited a growing interest in B2B Managed Services. This research aims to gain insight on the latest trends and business value associated with these B2B initiatives,” said Barchi Gillai, lead researcher for the study. “While it takes time to realize the benefits of B2B Managed Services, the survey results indicate the market has reached a level of maturity where companies are beginning to see a tremendous return on their investments.”
The benefits of B2B integration are driving more use. While 96 percent said MSPs benefit their B2B communications, an identical 96 percent will increase its use, trading with more customers and partners electronically
The report can be found here.
Edited by
Braden Becker
