The need for B2B modernization is becoming critical

Business and technology challenges are growing

The way companies conduct business is changing and with it, the need for increased data exchange with business partners. The desire for industry ecosystems participation and vertical integration is growing exactly as shifting geo-political complexity and regulatory requirements make data exchange requirements more challenging.

As a result, companies must revisit their approach to exchanging data with business partners. Accessing timely, up-to-date data from across a trading ecosystem is even more critical both for individual transactions and demand forecasting.

See also: Axway named a Leader in IDC MarketScape for Business-to-Business Middleware

At the same time, it has never been more important for organizations to protect business data, not just for regulatory and compliance requirements but also to maintain business competitiveness.

Companies also face technical complexity that drives B2B tool modernization. Organizations trying to maintain or increase their level of data exchange with business partners must surmount many technical challenges.

These include the rise in the number of formats and methods of data sharing, skill set shortages as legacy skills leave the market, and diverse cloud journeys in ERP renewal.

Legacy B2B tools that don’t address these new requirements are holding companies back, leading to loss of revenue and margins as they try to leverage industry automation and AI capabilities beyond their own company’s four walls.

Many organizations have started down the path of renewing the tools that support data exchange with business partners. According to IDC’s AI Enhanced Connectivity Automation Survey (June 2024), 53% of companies have implemented a new primary B2B integration solution in the past two years, with many having implemented their primary solution prior to the widespread adoption of AI.

But implementing a new solution is only a partial fix to business and technical challenges. Many companies find that instead of meeting the goal of replacing a legacy solution with a newer tool, they are now supporting two solutions, missing an opportunity to rectify some of the key pain points in their approach to data exchange.

Figure 1 highlights the many reasons why a company may use multiple vendors, but solution preference and the inability to retire legacy technology are the top two given by nearly half of companies. Organizations should reassess continuing with multiple solutions when the key reason for doing so is solution preference.

Maintaining multiple scarce skill sets in the company may be reducing resource effectiveness while creating organizational risk.

Modern B2B solutions include many features intended to help new users get up to speed quickly, limiting the need to use solutions that are not providing adequate business value.

Figure 1: Reasons for supporting multiple B2B integration solutions

Q. What is the primary reason you use more than one solution for B2B middleware?

Source: IDC’s AI-Enhanced Connectivity Automation Survey, June 2024; n = 90

AI-embedded capabilities are also already part of the decision criteria for the B2B solutions organizations choose to use. According to Figure 1, specific AI capabilities are the third most-cited reason for using multiple B2B middleware tools.

AI in B2B Integration: unlocking value across your enterprise and beyond

So, how can an organization assess if they still need multiple solutions? Decision-makers need to ask themselves the following questions:

1. Is this solution still meeting business needs, or is our company making do with what we have?
2. Do the capabilities of our B2B solution stack reflect the critical importance of ecosystem integration with the current global complexities?
3. Are we able to take advantage of modern capabilities and deployment approaches to get more value from our B2B investments?
4. Do we have the required knowledge in-house to manage, secure, and operate our B2B middleware confidently?
5. Does the B2B solution that is deployed today give us deployment flexibility for public cloud, on premises, and everything in between?

The bottom line is this: Organizations need greater flexibility and capability to exchange the right partner data from key systems in their business applications regardless of where those systems are deployed.

As industry verticalization increases, regulatory requirements shift, and data formats evolve, companies need to work with a solution that can meet multiple integration needs. The time is now to evaluate whether an organization’s investments in B2B solutions can deliver better value today – and in the future.

Message from the sponsor

The B2B landscape is becoming increasingly competitive. Today, maintaining the status quo is no longer enough to thrive.

New players and emerging technologies are pushing businesses to adopt more efficient ways of managing their B2B partner ecosystems, reducing technical debt, innovating, and managing both existing and new processes within a consistent platform experience.

Whether you choose a step-by-step evolution, consolidation, or a revolutionary shift in your B2B integration to a new EDI + API, cloud, and AI-driven stack, Axway is here to support you.