ERP Overview & Electronic Commerce Case Study

Mitch RuudDirector of Strategic Business RelationshipsGreat Plainsmruud@greatplains.com

Agenda Topics

• ERP Overview• E-business building blocks• Customer driven integration• Customer driven optimization • Future directions

Midmarket Business Drivers• E-Business• Getting closer to customers, strategic partners and

suppliers through a collaborative commerce environment

• Global • Knowledge management• Skills shortage• Y2K

Technology Drivers• Expanding E-Commerce for business-to-

business and consumer to business• Extended ERP solutions• Expansion of MS BackOffice as midmarket

platform• Increase in WAN bandwidth for converged

networks• Workflow as decision driver for midmarket to

work intra/inter enterprise

Enterprise Resource Planning

• Integrates business functions such as financial, manufacturing, distribution, human resource and customer relationship management

ERP Market in Malaysia

0

20

40

60

80

100

120

199819992003

US$ million

Source: IDC Asia/Pacific

Competitive landscapeM

idm

arke

t

Mid

mar

ket

ENTE

RPRI

SE

SOHO

SAP, Baan, Oracle, Peoplesoft, JD Edwards, VantiveClarify

Intuit, Peachtree, Sage

Great Plains, Epicor, Lawson, Symix, Navision, Best, Ultimate, Sage, Solomon

“The Internet Changes Everything”"The Internet changes everything that went before… for companies [it offers] the potential to reach ubiquitously their customers, vendors, partners and employees."

- John Sidgmore, COO, WorldCom

E-business is only beginning...

"Trying to assess the true importance and function of the Net now is like asking the Wright brothers at Kitty Hawk if they were aware of the potential of American Airlines Advantage Miles"

-Bran Ferren, Futurist and chief Disney "Imagineer"

B-to-B ecommerce-enabled Organizations

North America12%

Europe13%

Asia Pacific70%

Middle East2%

Africa2% South America

1%

Source: Computer Economics

Asia Pacific E-Commerce GrowthBusiness to

Business growth form US $8 billion in 1999 to US $ 280 billion in 2003

Consumer to Business growth from US $5 billion to US $40 billion

0

50

100

150

200

250

300

1999 2003

Business toBusinessConsumer toBusiness

GartnerGroup

Agenda Topics

• ERP Overview• E-business building blocks• Customer driven integration• Customer driven optimization • Future directions

E-business Strategy

Self Service

Business Intelligence

Electronic Commerce

What is Business Intelligence?

• Making your companies data strategic

• Provide easy access to the right information at the right time

• Provide this access via thin client technology

What is a Self-Service Application?• Business process driven• The person closest to the process

initiates the action• Eliminates duplication of effort• Simplifies the process

What is e-commerce?

• Business to consumer• Business to business• Internet based procurement• Interconnected businesses

Agenda Topics

• ERP Overview• E-business building blocks• Customer driven integration• Customer driven optimization • Future directions

1) Set Strategy

2) Focus on the End-Customer

3) Redesign Customer-Facing

BusinessProcesses

4) Wire your Company for

profit

5) Foster Customer

Loyalty

Customers.com - Patricia B. Seybold, Ronni T. MarshakCustomers.com - Patricia B. Seybold, Ronni T. Marshak

Five Steps to Success in Electronic Commerce

Agenda Topics

• ERP Overview• E-business building blocks• Customer driven integration• Customer driven optimization • Future directions

Customers.com - Patricia B. Seybold, Ronni T. MarshakCustomers.com - Patricia B. Seybold, Ronni T. Marshak

Eight Critical Success Factors in E-commerce and E-business• Target the right customers

– Measure lifetime value• Own the customers total experience

– Who owns the customer?• Streamline business processes that

impact the customer– Make your company easy to do business with

• Provide a 360-degree view of the customer relationship– Capture every interaction

Customers.com - Patricia B. Seybold, Ronni T. MarshakCustomers.com - Patricia B. Seybold, Ronni T. Marshak

Critical Success Factors -continued• Let the customer help themselves

– Provide all the necessary information• Help the customers do their jobs

– Provide the systems that they need• Deliver personalized service

– Remember each interaction, build from there

• Foster community– Provide value in the interactions at all levels

Foundations of an Enterprise Solution

Electronic Business

Knowledge Management

Front Office

Back Office

Seamless Integration

E-Business Applications

Business Management Systems

Integrating Technologies

Example of the Benefits of BackOffice Integration

Redefining business processes

Business OrderMethod

Order Entry Order Process InventoryProcessing Fulfillment

TraditionalManual Order(i.e., 800#)

Non-IntegratedOnlineStorefront

IntegratedE-commerceSolution

Case Study – ToySmart.com

                                

End Results

• As the Internet's leading retailer of “good toys”, toysmart.com offers thousands of toys and children’s products through its interactive Web site.

• Our business is up 1,000% compared to the same period last year and this coming holiday shopping season will be even busier. Our Great Plains system is integral and crucial to how we do business online and gives us the kind of control and real-time information we require in order to compete effectively and to handle our future sales and company growth.

David Lord, CEO, toysmart.com

End Results

Decreased: Cost per transaction

toysmart.com decreased costs per transaction by 50%

Administrative staffing Training time Costs for electronic storefront inventory maintenance

Increased: Real time update of inventory Turn over of product

Agenda Topics

• ERP Overview• E-business building blocks• Customer driven integration• Customer driven optimization • Future directions

High

Low

Low High

Self-ServiceValue

Levels of personalization

Dead Web

DynamicContent

Webmaster in chargeContent designer

in charge

Transactive Content

TransactiveContent

User in charge

Source: Forrester Research, Inc.

TransactiveContent

Transactive Content-Building Blocks

T

TRANSactionsystems

Rich CONTENT

InterACTIVEtechnologies

I

C

• Buy• Sell• Pay• Debit/Credit• Log

• Personalize• Collaborate• Search• Query• Analyze

• HTML pages• Multimedia• SQL data

• Document databases• News• Product specs

TransactiveContent

Transactive Content -Examples

T I

C

www.nytimes.comwww.hotwired.com

www.sidewalk.comwww.bankamerica.com

www.dell.comwww.wellsfargo.com

www.ivillage.comwww.theglobe.com

www.amazon.comwww.cdnow.com

Application Benefit ChartPo

tent

ial S

trat

egic

Ben

efit

Business RiskLow High

Low

Hig

h

Payroll

General Ledger

Human Resources

Accounts Payable Disbursements

Billing / Accounts Receivable

Distribution & Logistics

Client Support & Help DeskManufacturing &Resource Planning

EnterpriseSystems

Supply ChainManagement

Electronic Commerce

Marketing / CustomerDatabases

KnowledgeManagement

Sales Automation

ERP Systems E-Transaction Integration Services

Digitally Connected Enterprises

Digital User Interface Independence

Digital Transaction Transport

E-business Applications Commerce Services Business Network

E-Tr

ansa

ctio

ns

Bus

ine s

s

Inte

llige

nce

Self

Serv

ice

Co m

mer

c e

Inte

rna l

Ope

rati o

ns

Co m

p any

Stor

es

E-B

usin

ess

Serv

i ce s

Pers

o nal

izat

ion

Ser v

ices

Customer

Partner

Prospect

CPA

Employee

Visitor

Shareholder

Analyst

CRM Systems

IS Systems

External Systems Connectivity Business Owner

Virtual Communities

Customer

Business Owner

Partner

Reporter

ProspectSupplier

Employee

Interconnected Business Model

Information Flow

Process Flow

End

Use

r / C

onsu

mer

Supp

ly C

hain

Ent

erpr

ise

App

licat

ions

(dig

itally

trx.

ena

bled

)

Ent

erpr

ise

App

licat

ions

(dig

itally

trx.

ena

bled

)Buyer- consumer- purchasing manager- buying group- corporate purchasing- employees

Seller- business- retail- gov’t- bank- verticals- information providers

Web Presence- store front- portals- purchase aggregator- agent- mall- auctions- info. marts- self service

web based applications

web based applications

E-Business Key Learning

• The hardest part is getting internal agreement

• A broad approach is needed• Management of electronic

transactions is key• Pace of change is unbelievable• We truly are just beginning...

Questions and Answers