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Four Misconceptions that Prevent Organizations from Seizing Integration Value

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Table of Contents
3 | Misconception #1: Integration is a big investment that provides only a quick fix. 5 | Misconception #2: Integration takes a long time, and when its delivered, you need to immediately start maintenance. 6 | Misconception #3: Integrations require a team of expensive experts just to manage and monitor the new systems. 8 | Misconception #4: Integration only ensures my applications are running. It doesnt have a big impact on the business. 9 | Conclusion

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Four Misconceptions that Prevent the Enterprise from Seizing Integration Value
Summary
Integration can create systems that let you take advantage of new disruptive models and opportunities. However, four misconceptions linked to older technologies can be barriers to seizing this value. Here, we set out a description of what our modern integration platform offers and a few real-world examples of how it can save money, time, andeffort.

If you find your time and attention returning to integration, you are not alone. Though IT organizations have always had to integrate, the payoff for doing so has potentially never been as great as it is right now, with:
New ways to leverage data: When well integrated, the immense quantity of data being gathered can help increase awareness and bring new insight. New opportunities to engage with customers: Integrating mobile and social media channels helps solidify relationships. New offerings and business models: Analytics can help you understand customer desires, then leverage partner capabilities for solutions that move the business forward. Modern integration platforms avoid the need for sweeping changes to existing applications or data structures, provide greater efficiencies, faster fulfillment of business requirements, and reduced operating costs. With all these upsides, it is somewhat surprising that few can count integration as a core strength but a real impediment to progress occurs when people believe integration to be an expensive, time-intensive, and difficult undertaking that often provides only minor functions or a quick fix. This whitepaper explains how new integration technologies render these beliefs mere misconceptions and offers real-world evidence to help you combat old thinking with transformative technology.

ConWay: Integration Development Cut in Half

At ConWay, an industry leader in transportation and logistics, integration accounted for 40% of development time. Using TIBCOs integration platform, the company was able to cut integration development in half, to less than 20% of total development efforts.

Misconception #1: Integration is a big investment that provides only a quick fix.
Recurring Savings in Time and Effort
Integrating using a bus architecture with message-oriented middleware delivers recurring value, not just a quick fix. It provides the initial fix, and then it continues to drive costsdown. A bus architecture greatly simplifies implementation again and again. Each application has one connection to the bus by which it exposes or invokes services, publishes or subscribes to events. All messages can be set up by configuration with the application data or business functionalities. Because the bus is decoupled from all other software, your development teams can reuse existing connections, which makes all new integrations easier, faster, and less expensive.

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ChinaTrust: Reduced Costs 30% by Reusing Services

ChinaTrust Commercial Bank, Taiwans most international financial institution, with presence in the USA, Canada, and 10 countries throughout Asia, reduced its integration costs by 30% using TIBCOs integration platform. Interestingly, 30% is also its reuse rate of 500 services from 70 systems.

Modern Features Support Good Practices, Reuse

A great deal of time and effort can be saved with an integration platform that provides most integration capabilities, including: Use of application specific or standard APIs Data format management Data transformation Integration logic management (including loops, parallel paths, decision points) Monitoring and auditing The right integration platform helps you reduce the need for integration and increase information usability by creating services or events that have the right granularity based on a common data model. This capability also ensures your teams can not only reuse connectivity logic but also reuse events and services for other integration purposes, reducing costs even further.

M&T Bank: Mainframe Costs Reduced by Half

With over 700 branches, 2,000 ATMs, and nearly 13,000 employees, M&T Bank is one of the 20 largest banks in the U.S. Using TIBCOs integration platform to handle porting of integration logic from mainframe systems, it reduced mainframe costs by 50%.

Cost Savings
Before the platform, integration was managed either directly in applications or in custom-made interfaces. The high costs of maintaining and supporting these processes is saved using a platform, and savings are even greater on a platform that can be deployed as a service (PaaS), like TIBCOs. Decoupling also gives you the opportunity to seamlessly upgrade enterprise applications or even decommission redundant systems. Other applications continue to consume events or services as before, though these messages are now provided by new systems. So an integration platform can also contribute to reducing costs beyond just integration costs.

DBS Bank: Maintenance, Support, and Other Costs Reduced by 50%

DBS Bank, uses TIBCOs integration platform as the foundation of its service-oriented architecture (SOA). After implementation, the bank reduced maintenance and support costs by 50%. And because the new platform could share most information, file transfer costs were also reduced by 50%.

Cloud, SaaS, PaaS

But integration is not the only way to reduce costs. Pay-by-use software as a service (SaaS) solutions offer minimal upfront investment without any hardware and software maintenance or upgrade costs. Time to results is also very short, as applications can usually be quickly configured. Companies moving to the SaaS model will logically want to integrate their cloudbased SaaS applications with on-premise ERP and legacy applications. In that context, leveraging a pay-for-use integration platform as a service (iPaaS) that supports cloud and on-premise deployment ensures integration will not diminish SaaS benefits. The new TIBCO Cloud Bus provides this iPaaS capability.

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Neteller: In Three Months, a New Service and $1.5M in Revenue

Neteller, provider of financial services trusted by merchants and consumers in more than 180 countries, leveraged TIBCOs integration platform to create a new identity service and integrate their business services in less than 90 days. The new service automatically generated an additional $1.5M in revenue.

Misconception #2: Integration takes a long time, and when its delivered, you need to immediately start maintenance.
Faster with Graphical Modeling
An integration platform, in which logic is modeled and configured instead of actually developed, ensures faster time to results. Graphical modeling allows integration teams to be quickly proficient. It also allows for easier maintenance and faster adaptation by staff throughout the lifecycle. Your development team can focus their time on precious integration logic rather than reinventing the wheel.

Less Learning, Greater Flexibility

Since integration is about exposing standard information from various technologies, connectivity is key. While many applications expose standard APIs, these are still complex to use and are bound to change. Instead of learning them, TIBCO proposes graphical wizards to view enterprise application business objects, or data source and technology data formats. In addition to standard capabilities (Web services, events, REST), the TIBCO integration platform provides connectivity and exposes information to and from legacy applications (CICS, IMS, WebSphere MQ); ERPs (SAP, Oracle eBusiness Suite); operational technologies (Osisoft Pi); collaboration platforms (Microsoft Sharepoint); SaaS applications (SalesForce.com); social networks (Facebook, Twitter); and even mobile applications via Websockets. While you may not need all of this connectivity at first, having it at your fingertips future proofs the platform and gives you immediate flexibility to onboard virtually any new technology as needed.

Alestra: Broad Integration Comes in On Time and On Budget

Alestra, the third-largest telecommunications provider in Mexico, offers broadband, long distance, and high touch integrated communications services to corporate and residential customers. The company leveraged TIBCO technology to integrate 14 platforms and almost 100 services in 13 months, on time and on budget.

Reusable Components
Providing commonly used patterns and functions as reusable components can also reduce your time to results. You may need to develop specific audit routines or data manipulations to comply with internal standards or external regulations. Because some of these components need to have a lifecycle of their own, it is important that the integration platform supports their evolution without impacting the integration logic, exposes a Java API, and supports Aspect Oriented Programming to configure at runtime the application of any components, standard or specific. Any update can be applied without impacting the integration logic, dramatically reducing your time to results. Postbank AG: EU Financial Compliance in Record Time Postbank AG is one of the largest retail banks in Germany.

TIBCO Softwares predefined tools and range of interfaces allow us to map our business processes extremely quickly, much more quickly than would be possible with normal tools like SQL. This meant we were able to implement the MiFID requirements in a record time of just six weeks clear proof of the flexibility of our architecture. Dr. Michael Schlosser, head of group client execution, Postbank AG

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Misconception #3: Integrations require a team of expensive experts just to manage and monitor the new systems.
Reduced Complexity, High Availability
Sharing information in real time vastly improves the efficiency of business processes, and necessarily, the integration platform needs to be always available. To limit costs and setup time, but mostly to reduce complexity, TIBCOs integration platform provides native fault-tolerance and failover mechanisms. These are managed by configuration and have very few requirements on the infrastructure. Additional high availability software and hardware are not required.

Automation
TIBCOs integration platform also uses its message-oriented middleware to provide scalability. If latency of an integration process is putting the user experience or servicelevel agreement at risk, additional engines can be added on-the-fly. This provisioning can be managed by administrators or invoked automatically. By providing these required capabilities through simple configuration, TIBCOs integration platform limits the resource burden. TIBCOs integration platform also ensures seamless integration with your operations teams standards and processes. Configuration and deployment of integration logic can be totally automated in your existing frameworks. The platforms internal monitoring system shares data in real time with your current enterprise monitoring systems (using standards such as SNMP or JMX), allowing your operations team to monitor it as part of your complete environment. Chevron: Big Efficiency Gains Chevron Corp is the worlds fourth-largest energy company.

Great Visibility

Toyota Financial Services: Boosts Customer Service, Gains Agent Time

Toyota Financial Services in Australia is one of the countrys major financiers. Within months of using TIBCOs integration platform to deploy a customer self-service portal, the company was able to shift 10% of low-complexity calls from its contact center. The web integration let contact center agents refocus and add value in otherways.

Our TIBCO integration project has streamlined our e-procurement processes and made us more efficient. David Crockett, e-procurement solutions team manager, Chevron Corp.

While enterprise monitoring provides visibility into the health of the integration platform, external factors such as data quality, network conditions, or even the health of integrated applications can impact the performance of integration logic. These issues need to be identified and fixed immediately to avoid impacting the customer experience, revenue, orservice-level agreements (SLAs). TIBCOs integration platform provides browser-accessible integration process monitoring of integration logic, which lets you react to prevent any exceptions. Business users can use search functions to retrieve transactions status, and they can set alerts for specific situations. Operational users can monitor an overview of all logic in real time and identify any exceptions, then drill down to a graphical diagram (the same as in the design environment) to understand exactly what happened in the context of the faulty instance. They can also compare the behavior of an instance with that of all instances over a period of time. The monitoring system greatly reduces the need for staff waiting for exceptions to occur. It provides an alternative to receiving issue notifications from customers, and it gives IT teams the ability for fast forensics analysis to understand at what point in the transaction the issue occurred.

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Improved Data Quality

The integration platform can also contribute to reducing exceptions by improving data quality. With data related to the same business objects scattered throughout various applications and manipulated by various users, processing latency and data-input errors can lead to inaccuracies. Because some of your processes and decisions are based on this data, the situation can lead to business exceptions, such as the inability to complete processes and the wrong offers sent to customers. TIBCOs integration platform integrates natively with TIBCO Patterns, a solution that will apply learning and a matching algorithm in real time to deduplicate data. The platform also integrates with native electronic data interchange (EDI) processing capabilities and exception management, allowing users to correct faulty transactions. And the platform also integrates in real time with TIBCOs master data management (MDM) software to ensure the data about customers, products, and other business objects is the most accurate. By improving the quality of the data processed, the integration platform reduces the number of resources needed to manage exceptions or just monitor theplatform. Meridian Health Care Management: Fewer Errors, Less Staff, More Volume Meridian provides technology and administrative services to healthcare payers and providers throughout the United States.

Weve seen a substantial reduction in errors since we began using the TIBCO-based system, as well as a reduction in resources needed to fix exceptions. The number of employees needed to manually correct errors has gone from ten people to three. That, coupled with our migration from paper to EDI transactions, has enabled fewer workers to handle a much larger transaction volume. I dont think we could have accommodated all of the EDI transactions without the automation enabled by TIBCO. Michael Alper, CEO, Meridian Health Care Management

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Essent Energie: Reduced Time-to-Quotation from 28 to 3 Days

In the Netherlands, Essent Energie, operates primarily in the business-tobusiness energy sector. It used TIBCO to integrate many systems including SAP and Siebel, reducing the turnaround time for quotes from 28 to 3 days.

Misconception #4: Integration only ensures my applications are running. It doesnt have a big impact on the business.
Improved Operations
Because information is available in your systems, why not use it immediately? Real-time data streamlines processes performed by various systems. So what may have been perceived as a small gain at the application level can make a huge difference when the whole business process is considered. It could mean that your quote reaches your prospect faster than the competition. That you process orders faster, leading to faster revenue capture. Or that you provide a better customer experience. Real-time information shared by the integration platform can be used by business and operations teams to increase awareness, allowing them to make better decisions or anticipate the business context so as to prioritize their actions. Merial Limited: 2x Faster Order Fulfillment Part of the Sanofi group, Merial is a world-leading, innovation-driven, animal health company that used TIBCOs integration platform to integrate and streamline the orderprocess.

ChinaTrust Commercial Bank: Increased Business Volume 8x

ChinaTrust Commercial Bank uses TIBCOs integration platform as one of the foundational technologies for its e-banking side, which replaced point-topoint connections. Business volume has soared from 150,000 daily transactions to 1.2 million, an eight-fold increase.

Pirelli: Uses Real-Time Data to Optimize Performance Milan-based Pirelli, the exclusive tire supplier to Formula One racing through 2013, uses TIBCO technology to circulate real-time race data to management and teams.

We now close about 98 percent of all orders within two days as opposed to four or five days. Robbie Merritt, director of logistics, Merial Limited

The data we capture is used for the whole weekend of racing. We capture practice sessions, qualifying sessions, top speeds, lap times, intermediates, flags, accidents, and the position of each car on the track and in the pit lane. The engineer of each team uses this real-time data to better understand the car, the track, and how to optimize performance. Its an advantage enabled by Pirellis TIBCO integration. Fabrizio Orioli, integration service manager, Pirelli

Greater Capacity
The benefits of an integration platform that shares business information in real time includes increased capacity for processing business transactions, and ultimately increased revenue. Increased speed and increased capacity ensure your customers will enjoy a great experience regardless of the volume of business you are dealing with.

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Conclusion
Integration provides value by reducing IT costs and time-to-value, and by enabling you to reallocate resources and improve revenue. In addition, increased availability of information can foster innovation. Business users can use analytics solutions, such as TIBCO Spotfire, to discover potential new business ideas such as new services, or expose existing services across new channels such as mobile. These services can be quickly built and exposed using TIBCOs integration platform. Kempen & Co.: Changed IT and Business Mindsets and Increased Business A leading Dutch asset management, securities, and corporate finance firm.

Our TIBCO implementation saves us money, helps us satisfy customers, and enables us to do more business. Because of TIBCOs solution, we started to think about integration differently, and change the way we conduct business. TIBCO has enabled a very positive change of mindset in the company, especially within IT. Richard Valk, IT developer, Kempen & Co.

T-Mobile USA: Improved Visibility on Customers to Provide Better Service The U.S. wireless arm of Deutsche Telekom AG, T-Mobile one of the largest telecommunications companies in the world, with nearly 130 million customers.

We were able to quickly develop our new platform that gathers information for customers because we had already built almost everything we needed using TIBCO. Mark Johnston, manager, middleware space and application support, T-Mobile USA, Inc.

Integration provided real and significant advantages to the companies mentioned here and gave them the ability to adopt new technologies and innovate faster. With the TIBCO integration platform they were able to spend most of their integration budget on providing new business functions instead of just maintaining the integration.

Learn More
If you would like to find out how capable your integration strategy is, or the value you could derive from a TIBCO-based integration, take our Integration Maturity Model Assessement. And to learn more, start with the Integration Maturity Model, at www.tibco.com/maturity.

TIBCO Software Inc. (NASDAQ: TIBX) is a provider of infrastructure software for companies to use on-premise or as part of cloud computing environments. Whether its efficient claims or trade processing, cross-selling products based on real-time customer behavior, or averting a crisis before it happens, TIBCO provides companies the two-second advantage the ability to capture the right information, at the right time and act on it preemptively for a competitive advantage. More than 4,000 customers worldwide rely on TIBCO to manage information, decisions, processes and applications in real time. Learn more at www.tibco.com.
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2013, TIBCO Software Inc. All rights reserved. TIBCO, the TIBCO logo, TIBCO Cloud Bus, and TIBCO Spotfire are trademarks or registered trademarks of TIBCO Software Inc. in the United States and/or other countries. All other product and company names and marks in this document are the property of their respective owners and mentioned for identification purposes only.

exported24May2013