Veckans Affrer Open 13 Mars Arnfinn Fredriksson Director Internet Business Development AB Sandvik Co

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Veckans Affärer Open 13 MarsArnfinn
FredrikssonDirector Internet Business
DevelopmentAB Sandvik Coromant
arnfinn.fredriksson_at_sandvik com
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Creating value for everybody...
A supplier we spoke with summed up the question
best Lets see, you want me to put all my
products and prices online so my customers can
beat me about the head and shoulders. Then I can
commoditize myself even more to take my
razor-thin margins down to microscopic level.
Finally, I get to pay transaction fees for this
privilege. What am I missing? Company name
withheld on request
Morgan Stanley Dean Witter - B2B Internet Report
April 2000
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• Sales about SEK 44 billion
• 34,000 employees
• 300 companies in 130 countries
• Products with high RD and added value
• Global leader in selected niches
• Chairman of the Board Percy Barnevik
• President and CEO Clas Åke Hedström

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Broad presence on the WEB

• Group WEB-site
• Business areaWEB-sites
• E-Commerce
• Market places
• Extranet

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eCollaboration
Supply Chain Management
eBusiness
XML
Metamediary
Intermediary
B2B
EDI
eCommerce
ISP
Auction
Some of many Buzzwords in my daily work
eHubs
Exchanges
eService
Horisontal Portals
Dynamic Pricing
eProcurement
CRM
Vortals
Vertikal Marketplaces
RFQ
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Our e-commerce definition
All commercial transactions such as orders,
order status, stock status and invoices over
Internet between business partners
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Our e-business definition
All information, interaction and transaction over
Internet between business partners
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Some characteristics of Sandvik Coromant

• Customer value of Coromant product generated in
  the process
• 3 tool cost affecting total cost more than 10
• 60 direct sales
• with large local variation
• 25,000 standard products
• representing 85 of our sales
• 6,000,000 order lines per year
• average value of approximately 150
• Strong logistics offering high delivery security
• we build e-business from behind

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30 years with IT in the Sandvik Group We build
e-business from behind
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Our e -business vision
Large

• Provide a transaction and electronic service
  channel to existing customers sales channel to
  new customers

Medium
Small

• Facilitate a lean process chain enabling
  improved cost efficiency for our customers
  and for us
• Reinforce our customer relation by improved
  reach, richness and personalization

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Basic components of our e-Business offer
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Sell Side - Shop online
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Denmark
15 (22 electr.) Sweden
31 (38
) Norway
4 (4 ) Finland
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(4 ) USA
3
(85 ) Korea
32 (32
) Belgium
1 (5 ) Greece
100
(100 ) India,Brazil,NL
n/a n/a
30 markets offering e-commerce
during 2001
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What are the values of our e-commerce?
Availability, Product search, Decentralised
ordering, Customer specific pricing, Real time
stock status, Order status, Order history, Ease
of use, Technical info, Direct shipping
began using our Shop-Online solution
50 order cost reduction equal to 2 inside
sales persons out of 6 in Sweden
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Marketplaces
Industrilink

• endorsia.com
• Vertical Net (Tooling Online)
• Covisint
• Exostar
• Ariba CSN

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How many B2B e-Marketplaces are there and which
will survive?
eMarketplaces that do not support knowledge
intensive collaborative services for their
members will fail within 30months of launch
(0.9 probability) Gartner 2001
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Sandvik is part owner in endorsia.com
Global internet service and integrated logistics
for leading suppliers of products and services
First pilot markets Denmark and France Other
Nordic markets in step 2
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Buy Side
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E-Commerce capability in all honour
but..E-Business to reinforce our
customer relation by improved reach,richness and
personalizationCustomer value of Coromant
generated in the process
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Our e-Service Offer

• Your own Homepage
• Your consolidated purchases
• Your shopping solution
• Your service offer
• Your contact persons
• Your productivity results
• Your calendar/events