Managed Services for Complex Integration
An IDC InfoBrief, sponsored by OpenText
Research by:
Stewart Bond, Research Director,
Data Integration and Data Intelligence Software
June 2020

Simon Ellis, Program Vice President,
Supply Chain Strategies

An IDC InfoBrief I Managed Services for Complex Integration

Supply Chain Integration and Management Challenges
Facing a rising tide of data volume, distribution, and diversity.
Enterprises were responsible for 53% of all data created in 2018.

33 ZB
of new data was createdin 2018. IDC estimates afve-year compound
annual growth rate of25% to result in 103 ZB
of new data created in2023. (1 ZB = 1 trillion
gigabytes)

86%of the 33 ZB
volume wasgenerated byreplication anddistribution,creating data
liabilities.

27%of this new data was useful
if tagged, but only 25% of
the useful data wastagged, resulting in the
majority of useful data
being undefned and its
integrity unknown.

16%of the new data
created in 2018 wasreal-time. This isforecasted to growto 25% by 2023.

82%

of supply chains view
data and analytics aseither critical or very
important to thefuture success of
their business.
Source: IDC, Supply Chain Survey,April 2020

Source: IDC, Worldwide Global DataSphere Forecast, 2019–2023

Data is being created at the edge and in the core, and distributed to end points at rest and in motion.

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An IDC InfoBrief I Managed Services for Complex Integration

Integration in the Digital Economy is Complex and Dynamic
INGEST

Average of 9 unique data
sources per pipeline

IT is being asked to integrate 26
new sources or targets every month.

Data Sources• Applications• APIs• Files

DELIVER

Average of 8 unique targets
per pipeline

Targets• Repositories• Streams• Tradingpartners

TRANSFORM

Average of 4 different data types• Applications• APIs• Datawarehouses• Data lakes• Analytics• Trading partnersystems

Data Types••••

Transactional • RelationalEntities• Nonrelational
Geospatial
• IoT
EDI

Source: IDC, Data Integration and Integrity End User Survey, 2019

Most companies “miss”
material amounts ofavailable data.

Only 26% of supply chains saythat their analytics capabilities
are comprehensive.

43% say they have good
but not comprehensive
analytics.

31% say theiranalytics areinsu˜cient or poor.

Source: IDC, Supply Chain Survey, April 2020

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An IDC InfoBrief I Managed Services for Complex Integration

Highly Distributed and Diverse Data Environments
Are Common in the Digital Economy
Legacy data management technologies and data types continue to be a part of digital environments.

Data Environments for
Data Integration Solutions
100%

The diversity ofdata management
technologies adds
to the complexity:

Demand planning
Supply planning80%• Mainframe

60%• Relational databases

40%• Analytical databases

Warehouse management
Transportation management• Data lakes

20%0%

Almost 90% of supply chains either are already on the cloud orplan to be within 12 months for material portions of their supply
chain applications.

0%• No SQL
2015
On-prem only2017
Hybrid cloud

2019
Cloud only

• In-memory

Cloud already• Streaming

Within 12 months

Source: IDC, Data Integration andIntegrity End User Survey, 2019

20%

40%

60%

80%

100%

81% of supply chains are participating
in at least one multi-enterprise B2B
commerce network.

Source: IDC, Supply Chain Survey, April 2020

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An IDC InfoBrief I Managed Services for Complex Integration

Supply Chain Management and Integration in the Digital
Economy Is Hard, Demanding New Technology and Skills
The use of new technology is the top driver ofchange in the supply chain, according to IDC’s 2020
survey, but companies consistently report data
quality and data integration challenges.

Data Management Challenges
Security policies

Specialized analytics tools to manage data and data
integration are prioritized by 47% of manufacturing
and retail supply chains.

Budget constraints
Skills constraints
Technology issues

The ability to ingest broad and deep data sets toinform better decision making will be the single
largest di˜erentiator of supply chain performancein the future.

Data quality and scale
Compliance constraints
Data complexity
Data intelligence
Data ownership
30%

40%

50%
(Respondents)

60%

70%

The skills to manage this complexity
in the supply chain are di˜cult tofnd, but necessary to improve
operational and analytic outcomes.

Source: IDC, Data Integration and Integrity End User Survey, 2019
Source: IDC, Supply Chain Survey, April 2020

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An IDC InfoBrief I Managed Services for Complex Integration

Use Cases
These use cases are examplesof the need to integrate
external systems with internalsystems.
• Each use case has a di°erent set of systems,entities, and operational characteristics.
• Each use case has unique integration
characteristics and requirements.
• These use cases also share common elements
and characteristics.

Integration challenges are
therefore, paradoxically, both
unique and common.

1

Inventory stock and location checks

2

Track and trace3

Supply chain fnance4

Just-in-time manufacturing5

Supply chain disruption management

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An IDC InfoBrief I Managed Services for Complex Integration

Use Case

Inventory Stock and Location Checks

Fixed connection

COVID-19 has exposed
supply chain inventory
management limitations:“I don’t know where things
are or how much I have.”

EXTERNAL

Dynamic connection

INTERNAL

Challenges

ExternalInternal•
•••
•

•
•
•
••

•
•
•
•
•

Security (external and internal)
Variety of API formats and protocols
Variety of internal system interfaces
Elastic demand
Balancing working capital costs
and customer service performance

Buyers (procurement)
Suppliers (shipping)
Consigners (inventory)
Distributors (logistics)
IoT devices (RFID, GPS)

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APIs

Inventory management systems
Warehouse systems
Store information systems
Sales systems
Procurement systems

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An IDC InfoBrief I Managed Services for Complex Integration

Use Case

Track and Trace

Fixed connection

Supply chains cannot
respond to something
they don’t see: End-to-end
supply chain is the top
area of focus for visibility.
Source: IDC, Supply Chain
Survey, April 2020

EXTERNAL

Dynamic connection

Challenges

External••••••••••

Security (external and internal)
Variety of API formats and protocols
Variety of internal system interfaces
End-to-end data visibility
Elasticity
Brand image and expectations

Buyers (procurement)
Suppliers (shipping)
Distributors (logistics)
IoT devices (GPS,temperature, RFID)

CA46984120BROIINTERNAL

InternalAPIsandEDI••••

Logistics systems
Quality systems
Site information systems
Procurement and accounts
payable systems

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An IDC InfoBrief I Managed Services for Complex Integration

Use Case

Supply Chain Finance

Fixed connection

42% of supply chains
report cost reduction —including working capital— as an important driverof change.
Source: IDC, Supply Chain
Survey, April 2020

EXTERNAL

Dynamic connection

INTERNAL

Challenges

ExternalInternal• Manage physical, information andfnancial fows
• Security (external and internal)• Regulatory controls and reporting• Variety of API formats and protocols• Variety of internal system interfaces• Cash fow liquidity and working capitalrequirements• Buyers (accounts payable)• Suppliers (invoicing)• Distributors (orders,invoicing)• Financial Institutions(payments)• Procurement and accounts
payable systems• Receiving systems• Payments systems• General ledger accountingsystems

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An IDC InfoBrief I Managed Services for Complex Integration

Use Case

Just-in-Time Manufacturing

Fixed connection

Cost and factory
optimization balancedwith service performance.

Source: IDC, Supply Chain
Survey, April 2020

EXTERNAL

Dynamic connection

Challenges

External•
•
•
•
•
•

• Suppliers (orders)• Distributors (logistics)• IoT devices (GPS andcondition)

Security (external and internal)
Maintaining connectivity
Timeliness of data
Variety of API formats and protocols
Variety of internal system interfaces
Elasticity

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InternalAPIs
andEDI•••••

Production planning systems
Manufacturing execution systems
Receiving systems
Distribution systems
Inventory management

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An IDC InfoBrief I Managed Services for Complex Integration

Use Case

Supply Chain Disruption Management

Fixed connection

Supply chain
resiliency is thesecond-highest
driver of change inthe supply chain.
Source: IDC, Supply Chain
Survey, April 2020

EXTERNAL

Dynamic connection

Challenges

External•••••••• New/alternate suppliers• New/alternate distributors• Global/regional
diversifcation• End-to-end visibility• Broken connections

Security (external and internal)
Limited end-to-end data visibility
Supply chain calibration and collaboration
Timeliness of data
Minimizing downtime
Short timeline for new partner onboardingDi˝erent varieties of API formats and protocols

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InternalAPIs
andEDI•••••

Production planning systems
Receiving systems
Distribution systems
Manufacturing execution systems
Inventory management

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An IDC InfoBrief I Managed Services for Complex Integration

Data Exchange in the Digital Economy
Platform and managed services requirements
Functional• API protocols and data
format variety• End-to-end data visibility• Process orchestration• Self-service

DevOps• Partner onboarding and mapping• Internal systems API enablement• External to/from internal mapping• Monitoring and management

Nonfunctional• Secure and compliant• Scalable and elastic• Flexible and adaptable• Available and auditable• Valued user experience forIT and business users

DataOps• Pipeline develop/deploy• Statistical quality control• Analytics develop/deploy

Benefts of platform and managed services modernization
Unifcation

Scalability and Resiliency

Digital Business

Cost Optimized• Harmonization of disparate anddiverse integration solutions• Visibility across information
flows to enable better-informed
business decisions• Centralized and collaborative
governance for efficient control• Leverage cloud infrastructure andecosystem connectivity for optimal
uptime and broad reach• Agility to respond quickly tocustomer or market changes• Managed data quality increasing
trust of data-driven outcomes inthe extended enterprise• Enabling digital transformation
initiatives with data and agile
integration• Faster time-to-market• Improved customer andpartner engagement• Focus on business operations
and transformation for growth• Leverage economies of scale ininfrastructure to lower operational costs• Leverage availability of in-demand
technical skills to optimize humancapital costs• Enable partners with visibility andself-service to lower inquiry andonboarding time

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MESSAGE FROM SPONSOR

Trading Grid

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