EBusiness and the Networked Economy Ho Nai Choon
E-Business and the Networked Economy Ho Nai Choon President IDS-Gintic Pte Ltd Email: ncho@gintic. gov. sg IDS Scheer AG-1 03/99
Agenda n Introduction to E-Business n Organizational Trends n New concept of ECM: Enterprise Commerce Management n The needs for standardisation n Examples of successful implementation IDS Scheer AG-2 03/99
Introduction to e. Business IDS Scheer AG-3 03/99
E-Business ? Conducting Core Business Processes on Internet IDS Scheer AG-4 03/99
The new network economy will be driven by 3 forces -- Connectivity, Speed and the Growth of Intangible Values. “ Blur : the speed of change in the connected economy “ by Stan Davis and Christopher Meyer IDS Scheer AG-5 03/99
Organizational Trends IDS Scheer AG-6 03/99
Two Major Trends in Organizations n Networked Organization n Learning Organization IDS Scheer AG-7 03/99
Networked Organization IDS Scheer AG-8 03/99
Learning Organization ( Virtual Corporate University) IDS Scheer AG-9 03/99
The new concept of ECM : Enterprise Commerce Management IDS Scheer AG-10 03/99
ECM is the blueprint for the next generation of corporate systems: ECM provides the model for the next generation of business systems, comprising process-oriented applications and services tied together by the Internet to support intercompany commerce. -AMR Research IDS Scheer AG-11 03/99
By 2005, AMR Research believes that ERP, as we know it today, will be completely transformed. This trend is already underway: ·Supply Chain Planning (SCP) applications are replacing the Enterprise Resource Planning (ERP) function. ·E-procurement and strategic sourcing applications are gnawing away at the purchasing functions. ·CRM has obliterated ERP’s rudimentary customer service functionality. ·Web-based order management applications are moving from simple self-service capability to full-fledged order fulfillment systems, replacing ERP order entry. IDS Scheer AG-12 03/99
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Content of an ECM model n The different business partners and their business processes n Exchange of products and services between the business partners n Information flow between the business partners n Financial flows between the business partners n e-business applications to support the interenterprise business processes (e-Business Processes) n Roles to define the process responsibilities IDS Scheer AG-16 03/99
Implementation of e-Business Solutions ECM -Buisness Models ECM-Business Processes ECM-Business Applications E-Business Tools IDS Scheer AG-17 03/99
The needs for standardization IDS Scheer AG-18 03/99
Rosettanet Rosetta. Net is a consortium of major Information Technology, Electronic Components and Semiconductor Manufacturing companies working to create and implement industry-wide, open e-business process standards. These standards form a common e-business language, aligning processes between supply chain partners on a global basis. IDS Scheer AG-19 03/99
Rosettanet Standards Rosetta. Net Partner Interface Processes™ (PIPs™) define business processes between trading partners. Rosetta. Net dictionaries provide a common set of properties for PIPs™. The Rosetta. Net Business Dictionary designates the properties used in basic business activities. Rosetta. Net Technical Dictionaries provide properties for defining products. The Rosetta. Net Implementation Framework (RNIF) provides exchange protocols for quick and efficient implementation of PIPs™. IDS Scheer AG-20 03/99
Two Myths… One Reality n Myth One n Rosetta. Net (and standards in general) are on the fast path to general acceptance. n Myth Two n Moving quickly to adopt Rosetta. Net provides you with a competitive edge in the marketplace. n Reality n Quickly and intelligently adopting Rosetta. Net and other strategic standards will increase your success in the networked economy. IDS Scheer AG-21 03/99
So why Rosetta. Net? n Standards are critical to conducting e-business worldwide. n XML standards enable you to conduct business in real-time. n Rosetta. Net is emerging as a leading XML standard for B 2 B. n Early adoption enables you to blaze the trail. n Leveraged properly Rosetta. Net can help you gain true competitive advantage. IDS Scheer AG-22 03/99
If Everyone Adopts a Standard l Fulfill the promise of one to many and enables you to conduct e-business with multiple partners. l Real-time transactions via XML instead of batched EDI. l Standard messages on interoperable platform enables worldwide ebusiness. Security Back-end Integration Application to Application IDS Scheer AG-23 03/99
B 2 B Process Integration Benefits Typical Benefits Realized by Integrating the Supply Chain Delivery Performance 16 -28% Product Cost Reduction 15% Channel Returns & Scrap Reduction 40% Inventory Reduction 25 -60% Fulfillment Cycle Time Reduction 30 -50% Lowered Supply Chain Costs 25 -50% Overall Productivity 10 -16% Source: PRTM/Supply Chain Management benchmarking study IDS Scheer AG-24 03/99
Fast ROI through B 2 B Process Integration n Leading Network Infrastructure company achieves ROI for various supply chain business processes in six months (average). n Fastest ROI: Two weeks n Longest ROI: Two years n Major Networking Company shows $14 to $28 million per year cost savings by integrating New Product Introduction business processes. IDS Scheer AG-25 03/99
Steps to Competitive Advantage n Get in the game n Adopt Rosetta. Net and other emerging standards early n Affect the rules of the game n Leverage your understanding of the standards and your business processes n Win the game n Align business processes to integrate your supply chain IDS Scheer AG-26 03/99
Example of successful implementation IDS Scheer AG-27 03/99
Common Vision at Intel Be the Leader in Supply Network Management èOperate the right multiple supply networks driven by business needs èExecute each network as a single, virtual enterprise enabled by the Internet IDS Scheer AG-28 03/99
… and Supply Network Goals è Drive Cycle Time Reduction in all our businesses across the Supply Networks è Design & Implement Agile/Flexible Supply Networks IDS Scheer AG-29 03/99
n To support the SCOR Model/Methodology n Provides structure and common language including definition of process steps and metrics to model supply chain n Reference Model provides a framework to configure supply chain n Consistency of definition allows for effective evaluation n With appropriate Tool, Time invested can yield value added results n To explore integration with other planning and business process modeling activities IDS Scheer AG-30 03/99
ARIS Easy. SCOR utilized for SCOR Modeling Level One in Easy. SCOR Modeler Plan Source Make Deliver Level Two in Easy. SCOR Modeler D 1 Deliver Stocked Products D 2 Deliver Make-to-Order Products D 3 Deliver Engineer-to-Order Products D 0 Deliver Infrastructure Level Three in Easy. SCOR Modeler D 1. 7 D 1. 6 D 1. 8 D 1. 5 D 1. 9 D 1. 4 D 1. 3 D 1. 10 D 1. 11 D 1. 2 D 1. 13 IDS Scheer AG-31 03/99
SCOR Metrics Assessed at Level I & II PF = Production Flexibility, TLC = Total Logistics Cost, CCT = Cash-to-Cash Cycle Time, DP = Delivery Performance; AT = Asset Turns; xx = no tie; xx = tie IDS Scheer AG-32 03/99
SCOR applied to B 2 B e-Commerce n Leverage SCOR to develop around e-business scenario modeling n Start with supply chain models n Refine the model representation of B 2 B scenarios n Drill down to the interchange process specification level n Perform SCOR-based simulation n Explore mapping of SCOR to the Rosettanet n Work with both the Supply Chain Council and Rosetta. Net n Siemens is committed in a joint effort n Currently developing a Value Proposition statement and pilot plan n Internal review process will precede SCC/Rosettanet proposal IDS Scheer AG-33 03/99
Drill into Interchange Specification OEM Importer Vehicl e Locati ng and Allocat ion IDS Scheer E-Business Scenarios will be used to visualize the flow of communication between business participants Dealer Vehicle Specification/ Search Request via Internet Reservation Planning Order Proces sing Order Tracking Production Seller Subcontractor Shipm ent Tracki ng Transp ort Contro l Goods Receipt Processing Sales Order Managerment Shipping Export/ Transport IDS Scheer AG-34 03/99
Perform SCOR-based Simulation Use e. SCOR for tpt/cost analysis Run simulation Transfer ARIS Model into Gensym e. SCOR Define products Define resources IDS Scheer AG-35 03/99
Potential Big Wins for SCOR n Facilitate mapping of Level II & III metrics to Level I indicators n Provide a “how-to” guidelines for applying SCOR beyond configuration analysis n Drag and Drop SCOR modeling n Cost/Time analysis through simulation n SCOR-based B 2 B modeling n Visualize SCOR metrics through integrated performance monitoring IDS Scheer AG-36 03/99
Conclusion: New Economy, New Processes, New Standards IDS Scheer AG-37 03/99
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