1 The Impact of E-Business Dr. Simon Croom March 2003
Dec 28, 2015
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The Impact of E-Business Dr. Simon Croom
March 2003
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Some objectives for this session: To provide an insight into the nature of ‘E-
Business’ implementation across Supply Chains using a local case example
To examine some of the main implications for your business & your chains
To provide an opportunity to benefit from our research study
To engage in dialogue, debate and disagreement!
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Some definitions
‘E-Business’ - the conduct of business transactions, business planning and control, communications and information sharing over a common I.S. platform such as the web.
‘E-Commerce’ The conduct of business transactions and trading over a common I.S. platform such as the web.
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Why focus on Supply Chains?
Because the Internet is an Inter-Organisational Communication Channel
Because E-Business systems are both intra- and inter-organisational
Because organisations are adopting E-Business to manage within and across supply chains
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What can YOU do?
Understand the stresses in your operations & supply chains
Be aware of the impact of ‘E’ on those stress points
Participate (FREE!) in our benchmarking study at www.supply-chain.org.uk
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To AUDIT your Business Logon to http://www.supply-chain.org.uk Click on the SPA Methodology link Login to the ht2 site using:
Username SPA** Password SPA** (Same as your username)
I will allocate your number Complete the survey Your results will be emailed to you in early April as a
benchmark report
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Three Main areas of E-Business Activity
Marketplaces - for trading
Knowledge sharing e.g. product development, customer strategies
Supply Chain Collaboration/ synchronisation
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select requisition approve status receive
The objective is to automate the ENTIRE supply chain from product and service selection through receipt.
Using solutions that offer real-time interactivity with trading partners and customers worldwide
Starting with the Customer’s Requirement
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5
12
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Focus B2C
Systems Email, Web, EDI
ProcessesSales, Order
taking, Payments
Strategies Sales growth
E-Business In the Supply Chain - Five Phases of Evolution
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Supply Chain eBusiness modelsSupply Chain eBusiness models
EDIHigh speed complex data
transmission to core customers & suppliers
Static publishing, emailCatalogues & information to users
EDIHigh speed complex data
transmission to core customers & suppliers
Static publishing, emailCatalogues & information to users
1998-20011998-2001
Wave 1 - Emphasis on Promoting to Customers
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5
12
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Focus B2B
SystemsCRM / e auctions
ProcessesAccount
Management
StrategiesKey Customer Management
E-Business In the Supply Chain - Five Phases of Evolution
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Seller-side or buyer-side system connects with existing transaction systems
Sales Order Systems - Web-based order taking Electronic Funds Transfer via BACS system
Seller-side or buyer-side system connects with existing transaction systems
Sales Order Systems - Web-based order taking Electronic Funds Transfer via BACS system
2000-32000-3
Wave 2 - Emphasis on Transaction Systems
Supply Chain eBusiness modelsSupply Chain eBusiness models
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Public Web• Each Seller offers products at list price
Exchange• Commodity Trading Venue (Auction)
Market Place• Independent Org provides access to many suppliers
Company Hub• Individual Companies manage multiple supplier Contracts
Ad
hoc
Ad
hoc
Negotiated
Negotiated
Buyer
Buyer
Buyer
Buyer
SupplierBuyer
ExchangeVenue Commodity
Market SuppliersSeller Extranet• Seller access to pre-neg products and services
Supplier
Suppliers
How transactions may be executed
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How E-Business Can Impact on your Demand
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Demand Profiles?
Cyclical
Stable
Volatile
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Matching Supply Chain Design to Demand
FunctionalProducts (e.gcontinuity products)
Innovative Products(e.g. Seasonal orpromotional)
Efficient SupplyChain
Match Mismatch
Responsive SupplyChain
Mismatch Match
Marshall Fisher. HBR Mar-Apr 1997
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Reverse Auctionsfor Buyers
Auctionsfor Suppliers
A major phenomenon: electronic auctions
Streamlines strategic and off—contract buying
Leverages dynamic, Internet-based pricing
Dramatically lowers Cost of Goods
A large channel to new buyers
Cost effective method to liquidate inventory
More revenue from existing customers
Auctions May Benefit Buyers and Suppliers
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5
12
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FocusRe-engineering
Process
SystemsERP,
Knowledge Management
ProcessesOperations
planning and control
StrategiesOperations
Improvement
E-Business In the Supply Chain - Five Phases of Evolution
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E-Procurement system integrates with enterprise control systems
CRM system integrating across the organisation
ERP system implementation
E-Procurement system integrates with enterprise control systems
CRM system integrating across the organisation
ERP system implementation
2002/52002/5
Wave 3 - Emphasis on Interfacing with Supply Chain
Supply Chain eBusiness modelsSupply Chain eBusiness models
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5
12
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Focus B2X
Systems E-Procurement
ProcessesSupply base managmeent,
Strategies Procurement
E-Business In the Supply Chain - Five Phases of Evolution
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Extended enterprise solution - integrating marketplaces, portals and auctions
Procurement and Sales via an E-Portfolio ‘Middleware’ adoption to integrate legacy
systems
Extended enterprise solution - integrating marketplaces, portals and auctions
Procurement and Sales via an E-Portfolio ‘Middleware’ adoption to integrate legacy
systems
2003/122003/12
Wave 4 - Emphasis on Coordination across the Supply Chain
Supply Chain eBusiness modelsSupply Chain eBusiness models
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Emerging industry portals = many examples
$200bn
Global Supply Global Supply Chain worth Chain worth $178000bn$178000bn
Global Supply Global Supply Chain worth Chain worth $178000bn$178000bn
Auto Industry Example Covisint
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12
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Focus Transparency
Systems E-Fulfilment
ProcessesTotal Logistics, Supply Chain Positioning
Strategies Supply Chain
E-Business In the Supply Chain - Five Phases of Evolution
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Integrated CAD/CAM/CSCM Tracking, Global Positioning as integral part
of E-Fulfilment systems Supply chain positioning a key strategic
issue
Integrated CAD/CAM/CSCM Tracking, Global Positioning as integral part
of E-Fulfilment systems Supply chain positioning a key strategic
issue2002/102002/10
Wave 5 - Emphasis on Integrating the Supply Chain
Supply Chain eBusiness modelsSupply Chain eBusiness models
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12
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Focus B2C B2BRe-engineering
ProcessB2X Transparency
Systems Email, Web, EDI CRMERP,
Knowledge Management
E-Procurement E-Fulfilment
ProcessesSales, Order
taking, Payments
Account Management
Operations planning and
control
Supply base managmeent,
Total Logistics, Supply Chain Positioning
Strategies Sales growthKey Customer Management
Operations Improvement
Procurement Supply Chain
E-Business In the Supply Chain - Five Phases of Evolution
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E-Business project Critical Success Factors€ If you can’t support the business case,
then start again E-strategy must be seen as Cross-
functional Based on Business first, ‘e’ second Clear E-Strategy project structure Technology experts in a key project role E-strategies identify new channels to
customers - do you want them?
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E-Business project Critical Success Factors - 2 What have customers said about CRM
and E-Business? What are the implications of CRM for
existing processes, strategies and organisation?
What are the skills needed? Where are the development needs? Be prepared to spend 75% of time
presenting internally to CRM teams,sales and others.
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E-Business project Critical Success Factors - 3 Integration with operations and logistics Logistics channel design MUST be an integral
element of CRM strategy implementation Understand the impact of E-Business on
demand profiles What are the implications for relationships with
existing channels. Identify the portfolio: Which
products/services/customers via which channel?
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It’s not about technology...It’s not about technology...
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….but new ways of doing business….but new ways of doing business