ISV Alliance Program:
An alliance between Independent Software Vendors (ISV) and Digital Movers to provide EDI Managed Services (Host*EDI) and discounted rates on value-added-network (VAN) services to your customer base while producing significant recurring revenue streams for the ISV.
Program Overview:
Opportunity #1 - EDI Managed Services (Host*EDI)
Electronic Data Interchange (EDI) has been the most dominant form of electronic commerce for over two decades. However, despite a seemingly strong value proposition, companies implementing EDI face a major investment to simply maintain EDI connections to trading partners and sustain existing revenue streams and/or supply chains. In-house resources struggle to maintain EDI compliance with their existing trading partners, sacrificing new relationships and efficiencies because of lack of time and talent.
The combination of these factors - the initial expense and expertise required to become EDI or Internet Commerce enabled, and the value of supporting both EDI and Internet forms of electronic commerce – define a unique set of circumstances which create an environment favorable for electronic commerce outsourcing.
Digital Movers maintains an EDI Managed Services Infrastructure (communication, translation, mapping, routing, mailboxing, auditing and archiving) that enables companies to obtain all of the benefits of a complete electronic commerce program without owning the associated technical requirements (hardware, software, people, etc).
Our EDI Managed Services Infrastructure communicates with Tier 1 Value Added Network (VAN) mailbox(s), direct connections, AS2, etc. to translate and map electronic data (EDI, XML, etc.) into and from a series of fixed format ASCII files (user defined or Digital Movers flat files). These files are communicated directly to our customers via a secure FTP Internet Gateway and the data is then used to update legacy application files (ERP, Warehouse, Transportation, etc.) via bridge programs with no impact on internal applications.
Our ISV Alliance Program enables software providers to offer their customers a robust, complete electronic commerce solution that is both highly available and readily scaleable. Outsourcing labor-intensive tasks like EDI implementations enable you to concentrate on your core software application with the comfort that your customer’s needs are taking care of. Additionally, our ISV Alliance Program provides your company with a recurring revenue stream.
Opportunity #2 - Discounted Value Added Network Rates
As you are most likely aware, EDI has become an important technology for companies as they attempt to provide their value chain of customers and vendors with the most timely, up-to-date information on orders, invoices, shipments, bills of lading, etc. What you might not be aware of is that over the past several years, the prices on Value Added Networks (VAN) have fluctuated drastically resulting in many companies paying inflated rates for VAN services. Digital Movers is a wholesale reseller of several Public, Tier One VANs. To support our hosted EDI solutions we purchase large quantities of VAN capability and pass the savings along to our customers. Your customers can obtain all of the benefits of a Tier One Van without any of the cost disadvantages. Specifically, we offer your organization an opportunity to share in the recurring monthly revenue that is generated by EDI traffic. To achieve this new revenue stream, Digital Movers would like your assistance in promoting and selling these discounted services to your customers.
Benefit to Your Customers
Significant Cost Savings – Utilizing EDI Managed Services is considerably less expensive than an in-house EDI program. In addition, your customers can achieve a 25 to 50% reduction in operating expenses by acquiring VAN services at wholesale rates. They benefit from a simple billing method (only kilocharacter costs and a monthly mailbox fee) without having to contract long-term commitments or large monthly minimums that is a common business requirement of the large, tier one VANs.
Improved Implementation Time - As a result of the many responsibilities of an IT department, many companies often see specialized services such as electronic commerce or EDI and the addition of new trading partners pushed to the bottom of a priority list. Digital Movers sole focus is the implementation of electronic commerce in a hosted environment. Therefore, the time required for us to add a new trading partners or documents is significantly less than in-house IT departments.
Access to Order, Invoice, Shipment Information - Our proprietary portal, Insight, allows your customers to check the status of all your transactions, anytime 7X24, in real-time using only a standard web browser.
Continuity of Service - By off-loading the burden of a non-revenue generating task, your customers can concentrate on running their business instead of running an electronic commerce department. Currently, many companies often depend upon a small number of specialized human resources to run and maintain EDI communications with their trading community. Outsourcing helps reduce the risk associated with this reliance on key personnel.
Additional Layer of Security and Archiving - Digital Movers maintains a sophisticated back-up and retrieval system should your customer ever desire to have their electronic commerce data restored.
Flexibility - The EDI Managed Services Infrastructure is extremely flexible and portable. Because our service integrates with fixed format flat files your customers can easily stay current with your latest version of your application software package while keeping their e-commerce investment intact.
Elimination of Manual/Paper-based Processes – One of the ultimate goals of e-commerce is that the reduction of documents processed manually will lead to significant cost savings and efficiencies. There have been many studies performed that calculate the benefits to removing manual/paper processes from an organization.
Benefit to the ISV
Recurring, Annuity-type Revenue Stream – In addition to providing your customers with the lowest available rates for services that they require, the revenue sharing opportunity provided via the Digital Movers’ alliance produces a significant (see analysis below) annuity revenue stream for your company.
Offload Customer Support for EDI - As you are most likely aware, the implementation of EDI can be cumbersome and resource draining. In addition to adding new trading partners, the daily maintenance of insuring that all documents were properly sent and received can add up to a lot of hours. Our EDI Managed Services offering contains many tools and procedures that enable us to effectively support your customers. By offloading these responsibilities to Digital Movers, you can concentrate on developing and supporting your core applications.
Product Expansion Opportunities - Once your customer adopts the EDI Managed Services, there are several electronic commerce extensions that utilize the infrastructure and can easily be leveraged. Some of these extensions include custom ordering catalogs, web-based EDI programs, Fax-to-EDI paper elimination programs, VMI and CPRF solutions. All of these programs produce revenue streams for us to share.
Benefit to Digital Movers
Digital Movers, via an alliance with your organization, benefits from greater exposure to more potential customers as well as shorter sales cycles.
Economics of the Alliance
Please contact our sales department to see how an Alliance with Digital Movers can generate an Annuity Revenue Stream for your Organization.
Requirements of your Organization
The only true requirement of the Digital Movers ISV Alliance Program is to use your connections and influence to help communicate the opportunity to your customers. Digital Movers takes care of all of the technical requirements including converting your customers’ trading relationships to the service. Your organization can produce a significant revenue stream by utilizing its influence with customers. Some of the effective means that have been utilized by our Alliance Partners include:
- Email and traditional mailing campaigns – Digital Movers supplies all of the copy information to help promote the program.
- Web Site Notice – Both your organization and Digital Movers will advertise the program on our respective web sites.
- Press Releases – Press releases to initially announce the program as well as to promote significant new customers will be featured.
Getting Started – Next Steps
The following steps will help your organization get started in this profitable program:
1. Approve the Digital Movers ISV Alliance Agreement
2. Decide what file interface you would like to use (either your files or Digital Movers’ proprietary flat file interface)
3.Communicate the program to your Customers
4.Digital Movers will assist in the sales process as requested by the ISV
5.Digital Movers will convert and test all existing trading relationships that your Customers currently have as well as add and test any new trading relationships
6.Once testing is complete, Digital Movers will begin to process all EDI documents in a production environment
7.Monthly commission reports and checks provided to your organization
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