Maryfran Johnson Editor in Chief Computerworld IT Leaders Rise to the E-Business Challenge Isecon 2000
Jan 23, 2016
Maryfran Johnson Editor in Chief Computerworld
IT Leaders Rise to the E-Business
Challenge
Isecon 2000
In the new economy, “IT has gone from being
about the business to being the business.”
Geoffrey Moore, author of “The Gorilla Game: Picking Winners in High Technology”
Computerworld’s Top 10 for 2000-2001
B2B E-Commerce Career & Labor Data Management Enterprise Data
Center Mgt Government Policy
& Legal
IT Management & Leadership
Security Web Infrastructure Windows 2000 &
Server OS Wireless & Mobile
IT Leader Challenges
Transforming traditional business to the “E-Enterprise”
Racing against dot-com competitorsDealing with supply chain
integration and B2B issuesWinning the high-tech talent wars
Dealing with the “Everybody’s an ASP now” phenomenon
Seeking a balance between privacy protection and personalization (aka customer service)
Leveraging/managing the influx of mobile & wireless devices
Before the ‘Net Economy
Supported employees & external users
Treated business managers as your main “customers”
Focused on internal organization and processes
Exposing internal IT assets to support the supply chain
Leading integration and project (change) management
Dealing directly with business units, customers and trading partners
After the ‘Net Economy
Fighting the skills gap with selective outsourcing/ASPs
Making project management an enterprise core competency
Evolving from narrow to multi-dimensional roles
Foote Partners, LLC 2000
CR
What a Difference a Dot-Com Year Makes…
Focus shifting from Web presence glitz to back-end supply chain & distribution
More “heavy lifting” in connecting the acronyms: ERP, SFA, CRM…
Venture capitalists looking for long-term customer retention strategies
Three E-Commerce Questions IT Leaders Ask
What business value do we bring to the table via this channel?
Is the ‘net the right (or the only) channel to use?
Can this project be divided into smaller pieces, with faster deliverables?
“We figure if we’re not failing about 30% of the time in making our technology
choices, we’re probably not doing our job.”
Paul LeFort, CIO UnitedHealth Group
“I’m supposed to be CIO of the world’s largest company, but I didn’t grow up with the
Internet.”
Ralph Szygenda, CIO General Motors
This is a car company?Becoming a leading provider of
Internet-based information servicesDriving revenue potential to rival the
$176B from selling 8.5 million cars and trucks
Leveraging leading-edge ‘net technologies and big presence in consumer and supplier markets
GM retools for E-Commercethat goes beyond cars...
Real-time stock quotesTalking email messagesVideo games via your
dashboardSatellite-based radio servicesOnline car financingHome mortgages
Lloyd’s Bank of London
Spending $24 million on CRM software
Integrating customer info from all aspects of it operations
Connecting branches, call centers, wireless banking, Evolvebank.com
“CRM is probably the single biggest focus for all banks…because they see it as their major growth imperative.”
George Barto, Gartner Group analyst, CW, 8/21/00
Eclectic mix of data mining, call center management, customer profiling software…
Sales force automation, click stream analysis…
Website personalization, email auto responses…
Say Hello to E-CRM
“E-CRM calls for consistently updated customer information, catalog & order inventory data
on all sales channels…”
Peter Keen, consultant & business author, CW, Aug. 2000
My Kingdom for an E-Marketplace…
B2B E-Marketplace Categories
Communities (VerticalNet)Catalogs (OrderZone.com)Procurement Hubs (CommerceOne)Auctions (AdAuction.com)Exchanges (eLance, Altra Energy)Collaboration Hubs (Bidcom)
BusinessWeek, June 5, 2000
Lotsa Naked Emperors
Less than 2% of B2B trade took place in online markets in 2000
Some 85-95% of independent B2B exchanges “will be history” by next year (analysts say)
Fewer than 15% of exchanges today are delivering value-added services
B2B Market Visions
Now: $100 billion overall market (with 7.5% conducted online)
By 2004: $837 billion market (with 56% conducted online)
E-commerce software market grew 305% last year, from $444M to $1.8B, with 250 vendors in play
Source: Gartner Group and IDC
The Boeing Company
Buys $37B worth of goods annuallyLooks to cut 27% off purchasing
costsPlans to eventually tie ERP and
back-office applications to Exostar Operates several private exchangesLimits number of online suppliers
General Electric Co.Global Exchange Services open to
100,000 trading partnersExpecting “tens of millions” in
transactionsHosting entire networkPromising quicker purchasing,
faster turnaroundCW, 8/21/00
Dell Computer Corp.
New model marketplace (mall owner)
Three initial suppliers (3M Corp., Pitney Bowes and Motorola)
Buyers execute online transactions under predefined trading rules
Personalized buying experience for customers
Future of B2B Hubs?Uphill climb to achieve, sustain
profitsExisting “big brands” will leverage
natural advantage, greater resourcesLow cost of entry means more
competitors Uncle Sam keeping close watch
“It’s not the Wild West out there. Just because it’s online doesn’t mean that it’s that much different.”
FTC Commission Member Mozelle Thompson, Computerworld.com B2B forum, 9/18/00
Next Generation B2B
Trading Exchanges: dynamic interlinked webs of partners
Value Networks: optimizing supply chain relationships
International Logistics: global “catch up” on technology, ports, customs, trade financing, distribution.
Peter Keen, CW, 9/11
Agents: software brokers, bidders and searchers act as intermediaries. (Web comes to you.)
Wireless Logistics: The promise of m-commerce puts info & communication where the business is.
Real-Time Messaging: Components of the logistics value chain & company channels constantly updated.
EnronOnlineGrowing at 100% a yearTrading energy – plus capacity
in broadband, rail car shipping and data storage
Doing more than $1 billion in B2B *daily* in more than 2,000 transactions
Boosting revenue 10-fold to $40 billion annually
About 80% of Enron's income this year comes from businesses that didn't exist
10 years ago
"IT is crucial to making markets. We couldn't do what we do without massive
amounts of computing power.“
Jeff Skilling, president of Enron Corp. in Houston, which has
traded more than $120 billion in energy at EnronOnline this year
“E-commerce winners have all three: IT
management, customer relationships and a profit
structure.”
Business author Peter Keen, CW, 6/14/99
The Media Guide to “Who’s Running This Country, Anyway?”
The Wall Street Journal is read by the people who run the country.
The New York Times is read by people who think they run the country.
The Washington Post is read by people who think they ought to run the country.
USA Today is read by people who think they ought to run the country but don't understand the Washington Post.
The Philadelphia Inquirer is read by people whose parents used to run the country.
The New York Post is read by people who don't care who's running the country, as long as they do something scandalous.
The San Francisco Chronicle is read by people who aren't sure there is a country, or that anyone is running it.
The Miami Herald is read by people who are running another country.
Computerworld is read by people who can bring any of these countries to their knees with a little time in the data center and a few code modifications…
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