MGT 685 TRANSFORMATION INTO AND MANAGING EBUSINESS

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MGT 685TRANSFORMATION INTO AND MANAGING
E-BUSINESS

• PART TWO

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E-Business Implementation Path

• Determine the implementation concept
• Develop a strategy for the E-Business
  Implementation
• Identify major milestones and initial schedule
• Define the initial budget by using the milestones
• Identify which groups and organizations will be
  involved in the implementation
• Determine the methods and tools to be employed in
  the E-Business implementation
• Identify areas of risk and associate them with
  milestones and tasks
• Refine E-Business schedule and budget
• Identify the implementation leaders
• Identify and establish the implementation team
• Develop the detailed implementation plan

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• ACTION 1 DETERMINE THE IMPLEMENTATION CONCEPT

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E-Business Strategies

• Overlay strategy
• Integration strategy
• Total separation strategy
• Replacement strategy
• Reference Lientz and Rea, Dynamic E-Business
  Implementation Management.

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Overlay Strategy

• The company overlays E-Business on top of their
  current business activities.
• The purpose of the E-Business effort is to
  implement E-Business so as to have minimal
  negative impact on current processes and the
  revenue generated.
• The scope of the implementation project is quite
  narrow since the current processes tend to limit
  what can be done for E-Business.

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Integration Strategy

• The company creates new E-Business activities and
  then integrates these into their current ones.
• The purpose of the E-Business effort is to
  implement new and modified business activities
  for both E-Business and traditional business.
• The scope of the implementation is broad in that
  it covers both new E-Business as well as
  traditional architecture, organization, and
  processes.

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Total Separation Strategy

• The company creates a totally separate business
  for E-Business.
• The purpose is to implement E-Business activities
  that are as complete as possible.
• The scope is very narrow and limited to the few
  key activities that you need to get up and
  running.

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Replacement Strategy

• The company replaces some of their current
  processes with E-Business activities.
• The purpose of the implementation is to replace
  and eliminate some of the current business
  processes.
• The scope is also narrowed to these processes.

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Comparisons 1
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Comparisons 1 - Continued
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Comparisons 2
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Comparisons 3
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Comparisons 3- Continued
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Assessment and Selection of the Implementation
Concept

• Do the objectives and scope fit with the
  organization? Are the purpose and scope aligned
  with each other in terms of both business and
  technical types?
• Are the objectives too broad or too focused?
• Are potential resources available for the
  objectives and scope you have defined? Have you
  already defined an E-Business effort that is not
  feasible?
• Where are areas of risk both technical and
  managerial?
• Are the benefits and costs reasonable, given the
  purpose and the scope?

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• ACTION 2 DEVELOP A STRATEGY FOR YOUR E-BUSINESS
  IMPLEMENTATION
• How will you organize the effort?
• How will you select the leaders and team members?
• What will be the role of the team in the
  implementation management?
• How will you manage risk and address issues?
• How will work changes and change control be
  handled?

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• ACTION 3 IDENTIFY YOUR MAJOR MILESTONES AND
  INITIAL SCHEDULE
• A milestone in the plan is a task that has no
  length or duration. It must be capable of being
  evaluated or tested to see if it has been
  achieved.

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• ACTION 4 DEFINE THE INITIAL BUDGET, USING THE
  MILESTONES
• Some mistakes to avoid
• Failure to adequately consider downtime waiting
  or rework.
• Failure to allow for some change of scope in the
  project.
• Failure to consider potential additional tasks
  and work, resulting in under-estimation.

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• ACTION 5 IDENTIFY WHICH GROUPS AND ORGANIZATIONS
  WILL BE INVOLVED IN THE IMPLEMENTATION

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• ACTION 6 DETERMINE THE METHODS AND TOOLS TO BE
  EMPLOYED IN THE E-BUSINESS IMPLEMENTATION

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• ACTION 7 IDENTIFY AREAS OF RISKS AND ASSOCIATE
  THEM WITH MILESTONES AND TASKS

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• ACTION 8 REFINE THE E-BUSINESS SCHEDULE AND
  BUDGET

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• ACTION 9 IDENTIFY THE IMPLEMENTATION LEADERS

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• ACTION 10 IDENTIFY AND ESTABLISH THE
  IMPLEMENTATION TEAM

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• ACTION 11 DEVELOP THE DETAILED IMPLEMENTATION
  PLAN

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Section Summary

• Build your E-Business plan with great detail on
  the near- term tasks but less detail for tasks
  that are further out in the future.
• Take a large E-Business effort and divide it into
  phases.
• Consider how much time you have to spend on
  updating the plan when you design it.
• Look at the implementation plans external
  appearance to learn about the past and present of
  the project.
• Create a picture of the E-Business effort.
• Start E-Business implementation based on a fiscal
  year to avoid resource conflicts.

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Section Summary - Continued

• Try to keep the E-Business schedule limited.
• Remain sensitive to the E-Business environment
  throughout the work.
• Understand what not to do in the e-Business
  implementation.
• Hold one person accountable for each detailed
  task.
• Minimize documentation.
• Perform risk management at the start.
• Choose longer elapsed time over greater effort.

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E-Business Example - Compaq
More flexibility
Point to point customized information flow
E-Business Migration
Certified interfaces and messaging
Component level integration
Tighter integration
Data base integration
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E-Business Example - Compaq

• Business Drivers
• Improve customer satisfaction
• Enhance supply chain visibility
• Reduce cycle times
• Reduce inventory
• Improve forecast accuracy
• Streamline the direct business model
• Enhance collaborative processes
• Customers
• Channels
• Suppliers
• Contract manufacturers
• Reduce costs
• Decrease system complexity

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E-Business Example - Compaq

• Process focus
• Simple
• Common
• global
• Communicate in processes and solutions, not
  systems
• SCOR is the key Supply Chain Operational
  Reference
• Use process reference model
• Standard description of management process
• Framework of relationships among the standard
  processes
• Standard metrics to measure performance
• Benchmark performance data to best in class
• simplicity

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E-Business Tools - SAP

• MySAP.com (Marketplace) Components
• Supply Chain Management
• Product Life Cycle Management

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E-Business Tools SAPSupply Chain Management
Planning
SCM
Coordination
Execution
R\3 MySAP.com Portals
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E-Business Tools SAPSupply Chain Management -
Planning

• Supply Planning
• Constraint-based material planning
• Constraint-based capacity planning
• Supply planning optimization
• Supply planning alert notification
• Collaborative supply planning
• Demand Planning
• Statistical forecasting
• Promotional planning
• Product life-cycle planning
• Consensus forecasting
• Collaborative planning, forecasting, and
  replenishment

• Distribution Planning
• Constraint-based distribution planning
• Deployment
• Transport load building
• Distribution planning alert notification
• Vendor-managed inventory

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E-Business Tools SAPSupply Chain Management -
Execution

• Process Industries
• Discrete Manufacturing
• Order Management
• Transportation Management
• Enterprise Procurement

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E-Business Tools SAPSupply Chain Management -
Execution

• Process Industries
• Process production planning
• Process detailed scheduling
• Process manufacturing optimization
• Process planning simulation
• Integration with MySAP PLM module

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E-Business Tools SAPSupply Chain Management -
Execution

• Discrete Manufacturing
• Discrete production planning
• Discrete detailed scheduling
• Discrete planning simulation
• Integration with MySAP PLM Module

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E-Business Tools SAPSupply Chain Management -
Execution

• Order Management
• Foreign trade
• Warehouse management
• Radio frequency utilization
• Handling unit management
• Collaborative order fulfillment

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E-Business Tools SAPSupply Chain Management -
Execution

• Transportation Management
• Order promising
• Load consolidation
• Route optimization
• Carrier selection and collaborative tendering
• Collaborative transportation management

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E-Business Tools SAPSupply Chain Management -
Execution

• Enterprise Procurement
• Strategic sourcing
• Contract management
• Automated procurement process
• E-procurement of MRO materials
• E-Procurement of direct materials

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E-Business Tools SAPSupply Chain Management -
Coordination

• Networking
• Market-set procurement
• Market-set order management
• Market-set supply chain collaboration
• Market-set life-cycle collaboration
• Market-set analysis

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E-Business Tools SAPSupply Chain Management -
Coordination

• Event Management
• Information flow optimization
• Proactive process notification
• Supply chain status visibility
• Performance Management
• Key performance indicator monitoring
• Analytical and management monitoring
• Collaborative performance monitoring

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E-Business Tools SAPProduct Life Cycle
Management

• New Product Introduction
• Project Costs and Scheduling
• CAD Integration
• Design Collaboration
• Collaborative Maintenance

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E-Business Tools SAPProduct Life Cycle
Management

• New Product Introduction (Discrete)
• Flexible product structures (design, freedom
  flexibility)
• Concurrent product and process design
• Document management (find information quickly)
• Specifications, variants, and configuration
• Collaborative engineering (real time information
  access)

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E-Business Tools SAPProduct Life Cycle
Management

• Project Costs and Scheduling
• Pervasive program reporting (timely accurate
  data)
• Cost management and budgeting
• Project scheduling and earned value analysis
• Strategic program management

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E-Business Tools SAPProduct Life Cycle
Management

• CAD Integration
• CAD desktop (integrated product design)
• Integrated engineering with leading CAD system
• Digital mock-up (design changes in products)
• Design Collaboration
• Product portals _at_PLM (shared information access)
• Sourcing for complex products (faster bidding
  process)
• Collaborative engineering (sharing updates and
  design)
• Project rooms (participant chat room)

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E-Business Tools SAPProduct Life Cycle
Management

• Collaborative Maintenance
• Enterprise asset structures (complete asset life
  cycle)
• Maintenance/repair/overhaul (reduce procurement
  costs)
• Fleet management (reduce asset downtime)
• Web-based and mobile devices
• IT assets