Commerce Chain Management

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Commerce Chain Management

• Stan Lepeak
• Vice President
• Electronic Business Strategies

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eBusiness Marketplace
G2000 Org
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What Are the ebusiness Pressures?
What are the critical skillsets required to
deliver effective EB solutions? What role should
external parties play? How should EB initiatives
be managed?

• Partner/Customer Demands
• Collaboration
• Design requirements
• Supply requirements

• Corp. Mgmt. Demands
• Revenue vs. efficiency
• ROI???
• Time to market

• LOB/Constituency Demands
• Evolving user requirements
• Greater accountability/scrutiny
• Financial clout

EB Team

• Staffing/Personnel Challenges
• Constrained talent pool
• Retraining/re-skilling required
• Technical skills far outweigh sales/marketing
  skills

• Technology Challenges
• New business/application functionality
• Tools are not mature
• Legacy service levels must be maintained

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How Do I Determine eBusiness Effort Value?

• Construct potential scenario(s) from identified
  opportunities threats
• Derive value case(s) for each scenario
• For each value case, develop an associated
  tactical plan
• Highly iterative process

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Innovation Portfolio

• Tactical plans created for each e-opportunity
  value case
• Each tactical planning exercise includes
• Course(s) of action
• Limiting-factors analysis
• Time-phased planning
• Goal is speed in decision making amid incomplete
  information

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How Do I Organize for ebusiness?
CEO/ Board
Partners Customers
Influence
Influence
Influence
Other LOBs
IT
Influence
Product Development
Influence
Influence
Influence
Sales, Service, Marketing
Supply Chain Management
CIO, CTO, CFO, CCO, etc.
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E-organization Components
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How Important is Content to ebusiness?
Collection Approval
B2E
Content
Intranet/ Portals KM
B2B
Product Info
Commerce
Sharing
Collaborate
Document Management
Integration
Analytics
Catalog
Community Services
Personalization
Search
B2C
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What Comprises a Corp.com Strategy?
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What Are Key ebusiness Technologies?

• Integration
• Collaboration
• Analytics
• Process optimization
• Personalization
• Supply Chain Mgt.
• Content Management
• Security
• Services
• Infrastructure and ops flexibility

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What Comprises Sell-Side Commerce?

• Managing channels
• Understanding demand
• Enabling customers to buy
• Leveraging in place infrastructure
• Integrating best-of-breeds
• Product/service lifecycle mgt.
• Appointing service provider(s)
• Time to volume
• Integrated CRM, logistics

How Effective Is the Backbone?

Sell Maturity Model
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Sell-Side Architecture

• Leverage in-place infrastructure and applications
  when possible
• Enable catalogs, configurations, processes,
  prices content to change dynamically
• Integrate applications and data to present a
  personalized experience

Outside In vs. Inside Out

Leveraging the ERP Web
Database Business Logic
App Server
App Server
Web Browser
Web Browser
Traditional C/S
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What Comprises Buy-Side Commerce?

• Understanding types of procurement
• Indirect
• Direct
• Managing suppliers and components
• Participating in marketplaces (suppliers and
  buyers)

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Procurement Politics

• Focus on internal costs and processes for
  commodity procurement
• Focus on asset management/maintenance for MRO
  procurement
• Focus on SC efficiency and product management for
  direct procurement
• Tactics first, then strategy
• Integrated procurement by 2001

No Wonder Its So Difficult . . .

New Product Development
Manufacturing
Asset Management
SourcingDesign
MaintenanceRepair Operations
Production Maintenance Execution Quality
Accounts PayableAccounts ReceivableGeneral
Ledger
Customer Self-Service
SupplyChainPlanning
Customer ServiceField ServiceProduct Config
PurchasingDistributionInventory
Customer Management
Logistics
Financial
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Direct Procurement More Bang for the Buck?

• Focus direct procurement efforts on
• Supplier management
• Component rationalization
• Integration with product life cycle
• Supply chain visibility

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What Are Characteristics of Net Markets?

• Equity investment
• Regulation
• Finance
• Staffing
• Globalization
• Channel mastery
• Channel/customer relationship management
• Co-opetition

Trusted Intermediary Components/Services
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Why Net Markets Are Critical

• Matchmaking
• Reduce friction between suppliers and buyers
• Add value to complex processes
• Decrease cost of commodity products/services
• Extend reach to unserved markets
• But dont expect huge revenues all the time

All Net Markets Are Not Created Equal

Net Market Maturity Model
Tasks
Product categories, text, e-mail communications
E-Classifieds
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Better links to suppliers, fulfillment
transactions
E-Mail
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Buyer-market-supplier integration,mostly
comms/trans
E- Market
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E- Hub
EPI for market/industry
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Phases
Results
Catalogs, price history,in-depth product
info,links to fulfillment, offlinetransactions
Advertisment/Listing
Commerce Chain Optimization
End-to-endelectronic bond/process integration
Online transactions,integrated fulfillment
Buyer-to-supplierintegration viahub services
Inter-Enterprise Integration
Consolidator Model Change
Intra-Enterprise Integration
Relationships
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Net Market-tecture

• ERP vs. best-of-breed backbones
• Application integration/middleware
• Inter-enterprise integration
• Websourcing providers
• Operations sourcing
• Collaboration
• Transaction/order management
• Billing
• Catalog content management
• Content management and personalization

3-Month vs. 2-Year Deployment
Transport, Security/SSO, Availability, Uptime,
Application Mgt., etc.
Operations
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Commerce Chain Management Bottom Line
Summary

• Integrate partners, customers, content, and
  commerce to drive sell-side success
• Pursue buy-side commerce tactically, but evolve
  toward integrated strategy
• Sell side commerce equals integration, CRM, and
  the other CRM.
• Participate in Net markets to drive revenue,
  create efficiencies, and/or maintain
  relationships
• Understand that the e-business end game is a sum
  of all the parts