Electronic Business Flow Management EBFM for electronic transaction processing can implement cost reduction and enhanced cash flow opportunities with it’s integration into business processes.

1. Profit from Electronic Business
Flow Management
Skip Stein
Management Systems Consulting, Inc.
http://www.msc-inc.net
Copyright © 20103 Management Systems Consulting, Inc.

2. Vision Statement
EBFM – Electronic Business Flow Management
EBFM for electronic transaction processing can
implement cost reduction and enhanced cash flow
opportunities with it’s integration into business
processes.
Apply enhanced electronic transactions to your business
processes, to reduce expenses, decrease time to cash
receipt, eliminate error prone data entry applications,
and reduce the order to cash depository process.
Deploying Electronic Business
Communications for Profiit 2

3. EBFM Structure
Electronic Business Transactions
Infrastructure is well founded upon open standards
like EDI, LC (letter of credit), Open Purchase Order
and VMI (vendor managed inventory)
Established standards (ebXML/EDI) and electronic
infrastructure (Internet, VPN’s, secure networks)
capitalize on existing processes and expand beyond
paper and manual order processing techniques.
Deploying Electronic Business
Communications for Profiit 3

4. Business Process Model
Global Transaction Integration
Alternate Sources of Supply - dynamically balanced
through inventory, order entry, distribution & control
systems.
AOT (always on time) replaces JIT (just in time).
Constant information flow from multiple sources of
supply – 24 x 7.
Global in scale – uninterrupted by regional
boundaries supported by worldwide networks and the
Internet.
Deploying Electronic Business
Communications for Profiit 4

5. Purpose -> Profit
It is NOT a dirty word!
Profit - The mechanism by which two or more
business enterprises form enhanced trading
partner relationships for the purpose of
increasing revenue and reducing costs while
in the business of producing a saleable
product at a profit!
Deploying Electronic Business
Communications for Profiit 5

6. Yesterday’s Situation
Supply Chain Processes
JIT – just in time is insufficient
Developed as an inventory control/reduction method
Focused on ‘key suppliers’
Produced critical inventory shortages
Affected by strikes, weather, wars
Deploying Electronic Business
Communications for Profiit 6

7. New Model - EBFM
More Efficient and Timely
AOT – always on time – supplies always available
when and where needed
Supply forecast linked to variable sources – balanced
by availability and lead times
Electronic orders based on projected manufacturing
& distribution forecast
Flexible/adaptable in a constrained material supply
situation
Deploying Electronic Business
Communications for Profiit 7

8. How Do We Get There?
Business Process Change
Consolidate and focused business enterprise
operations
Function focused business units
Autonomous operations linked Globally through
dynamic networks
Workforce balanced by need and operational focus –
not regional or centralized bureaucracy
Adaptive organizations with flexibility to implement
change - rapidly
Deploying Electronic Business
Communications for Profiit 8

9. Electronic Transactions
Open Up the Electronic Gateway
Electronic Data Interchange – EDI
Internationally recognized and adopted as a secure
and functional business process
Supported by open standards
Updated and maintained on current basis by
international standards groups
Evolving technology support – ebXML Standards,
Internet Security enhancements and more
Deploying Electronic Business
Communications for Profiit 9

10. The Basics
Electronic Transaction Flow Integration
Electronic transactions replace laborious, time
consuming, and error prone movement and handling
of paper
‘Untouched by Human Hands’ – standard formats
transmitted in seconds instead of days – routed and
handled automatically
Order to Cash - process product orders and cash
receipts in minutes, not days, weeks or months
Deploying Electronic Business
Communications for Profiit 10

11. Electronic Enterprise
Deploying Electronic Business
Communications for Profiit 11

12. Architecture
Deploying Electronic Business
Communications for Profiit 12

13. Components Overview
Deploying Electronic Business
Communications for Profiit 13

14. Technology – Underutilized
Eliminate the Paper and Manual Processes
Fully implemented existing capabilities of electronic
transactions - EDI & ebXML
Implementations must leverage the dynamic
capabilities of machine to machine data transfer
Reduce/eliminate increasing costs of manpower to
support old infrastructure
Filing cabinets, paper take up unnecessary and
valuable space – electronicise records and documents
Deploying Electronic Business
Communications for Profiit 14

15. Available Solutions
Utilize Available Technology
ebXML, EDI and electronic commerce is just the
communication & document transport layer of a more
complete infrastructure change
Electronic image processing, scanning, CDRW, EPR
systems are available to support infrastructure
demands
Available technology provides the ability to work
anywhere with ‘COMPLETE’ information retrieval
resources at hand
Deploying Electronic Business
Communications for Profiit 15

16. Recommendation
Identify Replaceable Manual Processes
- Walk the floor -
Order Processing – how much data entry
Invoicing and Receipts Processing – paper & postage
Procurement and Receiving – automatic inventory
Shipping & Distribution – BOM, lists and packaging
Stand by the printer – why do you need paper
See what’ being copied – why do need copies
Deploying Electronic Business
Communications for Profiit 16

17. Resources
Electronic Transaction Standards
Complete business process support
Pre-existing transaction sets defined for virtually any
business process
Open standards make communication across
international boundaries (language, time zones and
climate) possible
Tested and Proven methodology
With lower entry costs, available to even the smallest
business enterprise today
Deploying Electronic Business
Communications for Profiit 17

18. Mandatory
Electronic Document Exchange
Electronic Data Interchange –EDI – is becoming a
mandatory mode of business operations
Available to even the ‘QuickBooks’ enterprise
Secure transaction exchange supported by a variety
of methodologies, processes and service
organizations
Government Contracts and HIPAA (healthcare)
legislation requires it
Deploying Electronic Business
Communications for Profiit 18

19. Implementation
Plenty of Implementation Options Available
Available as SAAS
Browser or enterprise/legacy system interface options
TCP/IP communication using FTP or SMTP
Internet or VPN access
Pass transactions to/from/through traditional VANs
Deploying Electronic Business
Communications for Profiit 19

20. Room to Grow
Current Systems Support EDI
Many existing implementations only encompass the
basics: Purchase Order & Invoice
Revision documents, Shipping Information, and
Payment processing have yet to be implemented
True ROI begins HERE~!
Deploying Electronic Business
Communications for Profiit 20

21. Cost Reduction - Potential
Electronic Transaction Expansion
Full implementation of EDI capabilities provide the
basic framework for substantial cost reduction
Leverage existing workforce in more profitable
activities
Reduce/Eliminate paperwork, forms, filing and filing
cabinets
Machine to machine transaction processing at light
speed
Deploying Electronic Business
Communications for Profiit 21

22. Profit Enhancement - Potential
Make a Profit with Quicker Response Times
Process Orders & Cash Receipts faster
Automate order processing to manufacturing and
distribution systems
Reduce on-hand inventory with AOT (Always on
Time) assurances provided by multiple source of
supply & distribution
Enhanced payment processing with EFT Order to Pay
processing
Deploying Electronic Business
Communications for Profiit 22

23. More Profit Potential
Shrink Supply Times
Automate requests for quote
Model/Forecast and manage bids/proposals
Interface with in-house procurement systems
Attach and publish specifications documents
Manage procurement activity
Integrate seamlessly with procurement communities
and catalogs using EDI & ebXML-based architectures
Deploying Electronic Business
Communications for Profiit 23

24. Success Based Provisions
You Can’t Do it Alone
Establish Trading Partner Relationships –
beyond customer/supplier contracts
Open up organizations and business
relationships to fuller, more complete
information exchange
Deploy secure communications infrastructures
to support ongoing linkages
Deploying Electronic Business
Communications for Profiit 24

25. Implementation Requirements
Do it NOW Rather than Later
Select a set of tools – standards, translator,
communicator, application interface
Obtain expertise during deployment – don’t re-invent
the wheel!!!
Deploy structured and reliable application system
interfaces
Offer enhanced career opportunities to available
personnel with existing business knowledge
Make the process repeatable
Deploying Electronic Business
Communications for Profiit 25

26. Key Factors
Standardize the Process
This is NOT brain surgery, although a rocket
scientist would be an asset
The biggest expense is on initial deployment –
don’t stop short
Train to maintain – support staff should
maintain electronic based applications
TEST TEST TEST
Deploying Electronic Business
Communications for Profiit 26

27. Trading Partners
Develop Business Partnerships
Share common goals – Profit
Define the relationship – contracts & agreements
Work together to improve business communications
Co-develop inter company standards for electronic
information exchange
Share Ideas
Work together!
Deploying Electronic Business
Communications for Profiit 27

28. Summary
Utilize EBFM to Enhance your Electronic
Transaction Processing Relationships
Focus on Global Business Partner Relationships
Feedback is vital to success – Train to maintain
Charter involves the whole community –
partnerships
Fulfill the Future, Build from Today
Deploying Electronic Business
Communications for Profiit 28

29. Thank You
For more information on the EBFM electronic
business process model, please visit our web
site:
http://www.msc-inc.net
Thanks!
Management Systems Consulting, Inc.
800-856-3193
Deploying Electronic Business
Communications for Profiit 29