Yesterday, we posted a blog that talked about the first hurdle to B2B Collaboration.  Today, we'll go over the second hurdle.


Overcoming the Obstacles


Hurdle #2: Executive leadership is reluctant to invest in new technology. With dollars and resources already tightly stretched, it’s understandable that management may resist spending on B2B technology. Often, however, this is because they don’t fully grasp the value B2B collaboration delivers.


What’s the solution? You can work around this hurdle by building a business case that clearly outlines the financial benefits of B2B collaboration for your company. Even a relatively simple before-and-after comparison of order or invoice processing costs can do the job. If your finance or accounting department doesn’t have this data, you can create it. For example, you might examine the time required to manually handle each paper-based invoice from inception to delivery via fax or email, then multiply that by the hourly billing rate of each person involved to get your current processing costs. From there you can determine how much you’ll save by reducing those costs 45 to 75 percent—the typical savings for businesses using B2B collaboration—and suddenly you’ve got a compelling set of numbers to win management buy-in. If you have access to more detailed information about your current costs, you can use the Ariba Directional E-Commerce Value Calculator to assess the potential top- and bottom-line savings you’d realize from B2B collaboration, which can go a long way towards helping you make the case to company leadership.


In the Next Blog We'll Tackle B2B Collaboration Hurdle #3 - Over-reliance on Offline Technologies (email and fax)


If you don't want to wait until tomorrow to learn more, then go to the Supply Lines group to read the full article.