I have been working in our Bangalore office this week.  It has been an exciting week so far – my first trip to India, and what more could I ask for than to be spending time in their own “silicon valley”?  I must say that the employees here have been so hospitable, the hotel we are staying in is amazing, and there is no shortage of foods to fit all tastes!

Bangalore is certainly the epitome of growth.  Just next door to where I sit, a large building is under construction, complete with jackhammers, cement mixers, and a large staff of workers hauling dirt and breaking down old tree stumps!  It is the same up and down the main streets here.  Construction of the metro transit system is underway, and though still probably a couple of years from completion, it is desperately needed.  Traffic is intense, and drivers use their horns far more than in the U.S. – yet with no road rage!  Unfortunately, people also pretty much drive anywhere they’d like on the road, and lane lines are merely a recommendation, it seems.

Coincidentally, The Washington Post published an article yesterday on India’s Young Spenders.  Based on the relevance given my location this week, I had to take a peek.  What I read simply reminds me that consumers are everywhere, and the demand for “stuff” – things like flat screen TV’s, washing machines, iPods, sunglasses, and cell phones – continues to increase.

Two weeks ago, a colleague and I had the good fortune to meet with the CEO of GS1 Pakistan.  We learned that the organization was formed about a year ago at the request of global retailer Metro, who recently entered the Pakistani marketplace.  Metro requires that their suppliers use the GTIN system for product identification and barcode all products.  They would also like to see data synchronization and electronic data interchange implemented in order to achieve the supply chain efficiencies such technologies have netted elsewhere.  Since Pakistan didn’t have a GS1 member organization, one was formed in order to manage GTIN prefix assignment and to assist in moving e-commerce adoption forward.  They are now in the throes of educating themselves on the world of B2B integration and bringing the Pakistani consumer goods industry into the future.  All this because consumers are looking for the most modern, the most diverse, and the most readily available products to buy.

Global reach is truly achievable.  Consumers throughout the world are ready for the latest gadgets that manufacturers have to offer.  The young generation is clamoring for “toys” and “stuff”.  And the need for B2B solutions to help trading partners collaborate and continue to tap into the eager consumer market has never been greater.

For companies who have synchronized their data with a couple of trading partners and consider themselves “done with data sync” – it’s time to think again!  Most of us realize that any global topic that receives ongoing media attention will impact us, at least in some small way, and green initiatives are no different.

You have probably heard about many companies, and even people, discussing their efforts to reduce their carbon footprints through things such as utilizing renewable energy sources, reducing waste, and living in ways that help to sustain, rather than erode, our environment.

Certainly data synchronization is not impacted by such a conversation, you suggest!  But I beg to differ.  ADWEEK recently published an article entitled “One to Grow On,” that highlights Wal-Mart’s aggressive efforts to push sustainability forward, primarily in the area of reducing product packaging.  This likely means that suppliers will need to revisit their entire approach to packaging – from materials to processes.  And resulting changes in packaging will need to be communicated to trading partners, as the logistics implications – case and pallet structure changes, differing order quantity multiples, and truck volume calculation updates – will be significant.

We often comment in our blogs about the growing demand for more product information, but we should not neglect that existing product data changes, as well.  And the rate of change on particular attributes may increase as the public eye shifts its attention from one area of the manufacturing sector to another.

The fact that Wal-Mart will be scorecarding suppliers in the area of sustainable packaging deserves mention, as we all know that if something is important to a large retailer, then it becomes important to the executives of the suppliers to that trading partner!  So, be sure to keep pace with the opinions and direction of your trading partners as sustainability takes center stage in the global trade arena – and keep your item attributes up to date!  Don’t approach data synchronization as “one and done”.  For better or worse, it’s more like a merry-go-round that pauses along the way, but never truly stops.

At 29,028 feet and situated between Tibet and Nepal, Mount Everest today became a metaphor for data synchronization – in my mind, anyway.

Consumer Goods Technology magazine recently published part 2 of the results of research they performed in conjunction with GS1 US regarding adoption of global e-commerce standards.  While somewhat disappointing, I was not surprised to learn that over half of the respondents reported that less than 50% of their orders are based on synchronized data.

The article also indicated that there is a significant disparity between adoption within large, multinational organizations and smaller companies:  “The bigger firms account for the higher adoption levels while smaller companies still don’t embrace standards at all, resulting in an “all-or-nothing” scenario.”  I am not sure I agree with the statement, though I didn’t participate in the research and can’t say where this conclusion originated. What I do know, from the many small- to medium-size businesses (SMBs) I work with on a daily basis, is that they have a few distinct challenges that may or may not be shared by their larger competitors: 

·         They have extremely limited budgets and resources (many SMBs have a “one-person” IT department)

·         They are generally driven by hard mandates with monetary penalties  and tend to ignore “soft” requests for compliance

·         They do not have good return-on-investment (ROI) tools that are believable on a smaller scale.  For example, a large manufacturer recently presented that they had reduced freight costs by over $1 million dollars for one product they sell and had taken 90 trucks off the road by implementing rigorous data quality and data synchronization.  A small company may not even ship 90 truckloads of all of their products through the course of a year!

·         Many data synchronization initiatives focus on the “big fish” – large successes produce publicity buzz, and the smaller players are left to swim aimlessly with little education or implementation support  

In other words, they are facing their own Mount Everest and don’t have all the tools they need to successfully complete the climb.  What this means to me is that our mandate as standards organizations, technology providers, solution partners, and data synchronization fanatics is that we need to give some love to the thousands of SMBs out there waiting for a champion to bring their cause to the forefront.  We need to become sherpas and lead the charge up the mountain! 

I am making it my personal goal to push the SMB agenda this year – even if it only results in calling attention to their plight in every tradeshow, conference call, and global standards meeting I attend – I intend to be known as “that wacky SMB data sync activist”.  Well, something less colorful might be better, but increased public awareness is my objective, and I’ll take it any way I can get it.  Due to its proximity to China, Mount Everest has found itself featured in the political firestorm surrounding the Olympics.  I hope to take the cause of the SMB and shine the spotlight on it in a similar, if less sensational manner. 

Only 660 people have successfully climbed Mount Everest.  So, with over 15,000 participants, the Global Data Synchronization Network (GDSN) has already well surpassed the lofty dream of those who wish to scale the world’s tallest mountain.  However, with tens of thousands of additional companies around the globe still to make the climb, and the fact that the standards will continue to evolve, potentially making it more difficult as time passes (Mount Everest is also rumored to be growing a few millimeters a year due to geological factors), we can’t sit at base camp and watch the opportunity pass us by.  We need to pack on our gear – cleansed data, trading partner requirements, and strong enthusiasm – and head for the summit – a successful global data synchronization implementation!

For as much as the word collaborate elicits sighs and thoughts of “not that cliché word again!”, outside of the B2B integration space, most people don’t even know what it means.  Most of my family and friends tell people that I work in Accounting.  I guess the explanation that I help gather customer requirements for developing on demand software applications that allow trading partners to collaborate effectively and realize increased supply chain efficiency doesn’t really go down like a spoonful of sugar!

The power of collaboration within a trading partner community should not be underestimated.  Global Commerce Initiative (GCI) recently published a newsletter  updating the user community on the results of their first year’s work toward their 2016 value chain vision.  Two of the three key challenges they are attempting to address don’t surprise me, but maybe if you fall into the camp of covering your ears every time someone starts to say “collab…,” you might be somewhat shocked to know what they are:

1.       The industry should develop new ways of working together (emphasis THEIRS)
2.       The industry should more readily and freely share information (ditto)

The newsletter definitely warrants reading, as it touches on all the key buzz words and hot topics being bandied about in the B2B space today.  Many companies are concerned with social responsibility, sustainability, and bridging the cultural divide as well as cutting cost, increasing revenue, and improving time to market for new products and services.  GCI has done a great job of folding all of these disparate objectives into a unified vision.  And GCI set such a great example in the past several years of living the “working together” mantra, as they brought end user companies together to build input into the GS1 system of supply chain standards.

It’s not so much that they are giving us a new revelation – for example, they state that “information is the life blood of the value chain.”  I have always believed this to be true (anyone who’s read my past blog entries know this is an understatement).  However, when a group of companies meet together to talk about achieving a long-term value chain vision, and still arrive at this critical statement, it serves as a reminder that we often forget the basics as we try to blaze new frontiers in our B2B programs.  If we have fooled ourselves into thinking that we have already gotten it right – that information is always accurate across all of our internal systems, synchronized with all of our trading partners, and proliferating throughout all of our downstream supply chain transactions, we need to pinch ourselves a step back into reality.  We have a long way to go.  Just review the “current practices” bullets provided by GCI and you will see that a lot hasn’t yet changed in how we manage data.

What I take comfort in is that GCI and other groups have just as much passion about improving the foundations of supply chain collaboration as I do.  And they have participation from many multinational suppliers and retailers who join in their vision.  I look forward to 2016, when we have hopefully achieved the lofty goals they have set – and then perhaps I can retire early with a smile on my face!

I was recently in a fast-food drive through – a rare indulgence I would have avoided altogether were it not for ravenous hunger and a late hour.  I won’t say which restaurant it was, protecting the McInnocent and all – but the driver of the car in front of me ordered a combo meal and said, “super size, please.”  Having watched the movie Super Size Me and hearing about the fallout, I knew this offering no longer appeared on the menu, but I guess, not unlike everyone’s favorite corner coffee monopoly, experienced users know they can ask for things not on the menu.

This episode got me thinking about product information – please remember it’s a lifelong obsession with me.  Two key things came to mind: 1) both retail trading partners and consumers are asking suppliers to “super size” their product records, and 2) many of them also want things not on the menu.

Elaborate, you say?  Thank you for asking, I will!  One of the key challenges I have seen over the last several years with data synchronization is that suppliers are being asked for more, and more, and MORE information.  Their customers and end consumers want so much data – logistics information , installation information, usage information , features and benefits, regulatory compliance information, etc., etc., etc. (be sure to read this last line with your Yul Brynner The King and I voice).  Really, the list does go on, I’ve just begun to scratch the surface.  I was recently at a conference where a very large retailer gave a presentation on their efforts to begin gathering data about sustainability (the new buzzword for environmental friendliness).  It was fascinating actually, but made me wonder how suppliers will collect such information, let alone communicate it to their trading partners.  Just add it to the ever-growing – SUPER SIZE – list, I suppose.

The other thing that seems to be daunting is that every trading partner is asking for something different.  Retailers need to maintain differentiation, so they don’t always put all of their requirements out in the public domain.  They choose to use proprietary portals or closed community concepts to gather data that only they are interested in, and of course they don’t want their competitors to know what they’re asking for, so suppliers are plugging in to multiple locations to satisfy each important customer.  The irony is, that when a group sits down together across an industry and starts honestly assessing these “individual needs,” they discover that 90%+ of the requested attributes are the same across different partners – the names may be a little different, and the formats – one uses a code list and one uses a free text attribute, etc., etc., etc.  But the end goal is the same – give me everything I need to know (and the consumer needs to know as well) so I can setup this item, purchase it, and market it.

It’s not that these new requests and requirements are unrealistic – there are business purposes for the information and as I have highlighted in the past, consumers are hungry for it as well – the Internet is, after all, the greatest place to comparison shop.  The quandary is how a supplier can meet and exceed the expectations of everyone downstream in the supply chain and still remain profitable and productive.  The good news is that there are a lot of people (besides me) that are constantly working on ways to provide answers to the tough questions about B2B data aggregation, management and dissemination.  And it’s a good thing, because suppliers need a break today!

One of our other bloggers, Bryan Larkin, recently began using the phrase “B2B Data Management.”  I can’t say for sure if he coined it, but he’s the first person I ever heard say it.  And I absolutely LOVE it!  Because the truth is, data synchronization alone will not bring about world peace – though I expressed my hopes for this in a past blog.  True nirvana will only be achieved when a business takes all of the components into account – foundational data quality, continuous data synchronization, both internally and externally, transaction integrity for all downstream supply chain business interactions (more on this in a future blog – unless Bryan gets to it first), and 100% rollout to all trading partners.  Approaching any implementation initiative with all of these things in mind is having a true B2B data management strategy.  So, would you rather say, “let’s talk about improving B2B data management,” or “let’s talk about improving dataqualitydatasynchronizationtransactionintegrityandpartnerrolloutmanagement?”  And because I love clichés so much, I guess I should also point out that you don’t want to try and boil the ocean by solving all of these problems at once, but you definitely need to look at your requirements holistically.  Then, when you put the little “data quality” pot of water on the stove and see it start to bubble relatively quickly, you can take satisfaction in the accomplishment and move on to tackle the other gallons, liters, reservoirs, and seas of work ahead of you.

I have had the opportunity to discuss B2B data management with several customers in the past week.  Their needs are varied and vast, and this warms my heart as it will keep me busy thinking up new products and features for many months to come.  But I confess that I had a moment of panic in one of the meetings.  One client commented that they don’t think that integration is broken; they think the main problem lies in backend systems – or the lack thereof, particularly for many small-to-medium sized businesses.

Honestly, this caught me by surprise.  I mean, I work for a company that is in the B2B integration space, so if integration isn’t broken, how do I have any chance of coming up with new ways to help drive GXS into the future?

Another GXS blogger helped bring me back to reality.  It’s not necessarily that integration is broken, but that many companies still have a long way to go.  Thank you John, for reminding me that we still have great work to do.  And our customer was definitely also correct – backend systems are pretty much a mess.  I could probably write a novel on that topic, but let’s save that for another day and a different blog!

On a side note, I also wanted to point out that I really enjoyed John’s post on Cub Scouts and Continuous Visibility for two reasons: 1) it’s heartwarming to see that there are still people out there investing in our kids and teaching them survival, readiness, and social skills, and 2) he pointed out how any error early on in the process can lead to multiple challenges downstream.  A simple compass exercise shows that one mistake begins to accumulate as further points are plotted erroneously.  Luckily, in the case of the Cub Scouts, they have John to keep them on course.  And, fortunately for businesses, a sound B2B data management strategy can keep you on track for reduced costs, greater profits, increased productivity, and the whole ball of wax, too!

Efforts to further the practices of data quality and data synchronization have received worldwide attention.  Groups of people gather on weekly conference calls and attend physical meetings to talk about global standards for exchanging accurate product information.  I’m sure by now you have a mental image of thousands of people wandering around in Star Trek-like uniforms looking for members of like-kind, anxious to share stories.  “Did you hear the one about what happens when you try to stack bags of semi-sweet chocolate chips on store shelf with the package front facing the aisle instead of the ceiling?  Those package dimensions really sent me for a loop on that one!”  Another groupie chimes in with, “oh yea, that’s nothing!  Have you ever taken a soda out of the six pack ring and seen the confusion that ensues when a grocery store cashier tries to scan it for a single purchase?”

It really isn’t like that at all.  We are a group of extremely normal (and intelligent) people who are on a mission to see that businesses can achieve the ever-elusive goal of maximum supply chain efficiency.  We believe that if you can exchange product information accurately and quickly and keep that information up to date over time, you can ensure that all of your downstream supply chain transactions will also be correct.  This leads to faster purchase order processing, swift shipping and transit, speedy movement of product from truck to store to selling floor, prompt remittance from retailer to supplier (with less chargebacks deducted from the payment, by the way), and rapid receipt of the latest must-have products by the consumer.  When put that way, don’t you want to sign up to be part of furthering this utopia, also?

Okay, perhaps it’s a little dry arguing whether a particular product attribute should be free text or be restricted by a code list of acceptable values.  And sometimes I’ve seen conversations where word-smithing three sentences took two hours.  Global standards rely on consensus and voluntary participation.  Since the participants volunteer, each is entitled to his or her opinion and the right to share it, and consensus sometimes takes a while.

One organization with which GXS participates extensively is GS1.  GS1 manages the GS1 system, a set of standards to improve supply chain management employed by companies in over 20 different industry sectors worldwide.  GS1’s global office operates out of the U.S. and
Europe, with over 104 participating countries known as membership organizations (MOs).  GXS has partnered with over 25% of these MOs, 27 countries, to provide the underlying data pool technology for their data synchronization solutions.  While countries like the United Kingdom, Spain and Australia are well down the path of rolling out data synchronization initiatives, it is our hope that one day others like Zimbabwe and Myanmar will be able to follow in their footsteps due to the extensive groundwork being laid by today’s standards working groups.

One ambitious participant in the global data quality arena decided that a music video would be a great medium to promote our cause.  Thanks to the fact that YouTube is now basically ubiquitous, you can escape from my long‑winded ramblings and take a peek for yourself at his data quality rap.  I hope you will find it entertaining and thought-provoking, as well as remember that data quality supporters know how to have fun, too!

I strolled into an airport convenience store the other day to purchase a candy bar, a vice I only allow myself when traveling.  Perhaps it’s unfortunate that I travel a lot, but this justification allows me to sleep at night.

Anyway, I happened to walk up to the register just as the cashier was celebrating just having sold four 256MB USB memory sticks.  The two management employees conversing with her were amazed that a passenger had bought such a large quantity, but the cashier said, “well, they were $5.99 – you don’t see a deal like that every day.”  The discussion quickly turned from celebratory to disastrous (keep in mind I am standing at the register waiting to pay $2 for a candy bar this whole time – gradually feeling more and more ashamed that I’m even in the place).  The cashier grabbed one of the remaining items hanging on the wall and flipped it over to look at the price sticker, which stated “$59.99”.  Oops!  Someone, in their zeal to finish tagging the memory stick boxes with price stickers and move on to more exciting products (like Butterfinger Crisp candy bars), forgot a ‘9’ – and what a faux pas that turned out to be!

I won’t go on to tell the rest of the story, as it became sad watching the cashier argue that she just did her job and rang the items up at the price that was stuck on the back.  By this time they finally realized they needed to get me out of the store before continuing and so finally took my money and relinquished me to go off and eat my way into a state of chocolate-peanut butter bliss.  Of course, by this time I had lost interest in the candy and rather wanted to ponder what led to such a terrible hit to this little store’s profitability.  Was it the fact that instead of linking the barcode on the package to an electronically-stored price in the computer system, someone was relying on one clerk to properly tag the item using a manual pricing gun, and another clerk to properly enter the price when ringing up the item?  Or was it that the manual process at point-of-sale was the result of incomplete or inaccurate data provided to the store by the memory stick manufacturer?

You see, I like these little retail mysteries.  Because they make clear the everyday examples of why data quality and data synchronization are so important.  If a manufacturer can provide pricing electronically when sending the product information to the retailer, linking the UPC number to the price, the retailer can then flow this data automatically to their point-of-sale system, use scanning equipment to scan the UPC, and see the price come up for them, rather than each of these steps being handled manually.  GXS is in the business of providing services to help customers gather data, audit it for accuracy, transform it into electronic formats, and transmit it to trading partners – providing visibility throughout the process, and ensuring that what arrived at the end was intended and intact.  This is a fascinating concept.  Creating efficiency in the exchange of business documents.  Okay, maybe it’s not awe-inspiring to you.  But it’s certainly clear to me why it’s so mission-critical.  Because when a customer goes to buy a leather cover for their handheld PDA, and ends up receiving an IBM server instead (a story relayed to me by a colleague which has P&L problems that reach far beyond my memory stick example), the consumer may win, but the retailer certainly doesn’t.  And you can believe that the manufacturer will feel the upstream effects of that as a reduction in future purchase orders.  So, how much is bad data costing you?

I am very passionate about data.  While many of you will find that odd and perhaps a bit pathetic, if you speak to anyone who is acquainted with me, they will confirm it’s true.  That’s not to say that I think such an enthusiasm happens on purpose.  I didn’t go to college with the mission of becoming a data advocate.  Truthfully, when I embarked on my quest for higher education, I had loftier goals like bringing about world peace.  So, years later, when I found myself embroiled in the world of B2B e-commerce, I thought perhaps I had gotten a bit off-track.

However, as I diligently pursued a way to create personal fulfillment from my day job (another misguided objective?), I realized that the foundation of B2B – data – is something every consumer cares about in one fashion or another.  And second only to my role as a mother, I relish my title of consumer most.  I love to consume – new apparel and footwear, mostly (and not necessarily in that order) – but all kinds of other “things,” as well.  I buy food and household products every week, and entertainment items such as CDs and DVDs at least once a month.  And I believe with my son’s driving future rapidly approaching, an automobile purchase is not far off, either.

In order to buy all these wonderful consumer goods, I need to know something about them.  Whether it’s the fiber and protein content of a cereal, the fabric and color of a new pair of shoes, or the extra features available on a DVD movie, I am constantly on the lookout for information.  And the data that interests me is probably not the same data that interests you – that’s what is so unique about consumers, and what probably drives manufacturers and retailers to the brink of insanity.  The Internet and multi-channel retailing (traditional stores, catalogs, online shopping sites) have made data ubiquitous, and consumers can’t seem to get enough.  But these business experts have to find a way to get that data to us, and they have to make sure of two things:  1) its accuracy, and 2) its consistency across all forms of media.  If you find an attractive price on a retailer’s web site and then check your Sunday circular to discover a different price, do you lose a little faith in the credibility of that store?  Do you run to the store and ask for the extra 10% discount for finding the wrong price?  Or do you instead go to the competitor, who might charge slightly more, but proves to be accurate in the information they provided you?

There are countless ways to think about data, to look at data, to slice and dice data.  We thrive on this at GXS.  Yes, it’s true, I’m not the only person on Earth with an interest in data.  And while I roam the halls of GXS for 40 hours a week (plus or minus) thinking about data, I find the interest spills over into my personal life, as well.  Thus, I’m aptly suited to bring you a blog about data.  To help you understand how important the foundation of data is to running a business, to collaborating with trading partners, and to connecting with consumers.  Join me on this journey and see if you don’t just feel at least a little bit more peaceful as you begin to see how central data is to everything we do and how we can make the most of the everyday data at our fingertips.