The Foundation of eCommerce Success:

Web Enabling Your Business Processes

February 7, 2001

Presented by Gary D. Glick

Why Web enable business processes?

• Economic and competitive factors

• Increasingly, customers are moving towards a web based marketplace for information and purchases

• Revenue growth based on eCommerce activities

• CRM, Execution, and Supply Chain systems operating on different software and hardware

Web based Business Process - PHILOSOPHY

• Companies must re-align to support e-business initiatives

• Companies must pay attention to infrastructure

• Integration with the back-office is the key to eBusiness success

• Companies must focus on a customer centric approach

• Companies must provide better support for customers and suppliers

Success

• Must align business processes with corporate vision and selected technology

How to achieve success

• Prioritize customer satisfaction

• Define strategy to meet customer satisfaction objectives

• Implement enterprise wide business activities necessary to meet strategy

• Baseline existing business processes and personnel

Achieve success (Cont.)

• Identify process and personnel gaps

• Re-establish business process and KPI’s

• Feedback

• Recycle

Health Check

• Will your eEnabled business meet your customer’s expectations?

•Delivery

•Product accuracy

Health Check

• Are your business processes putting you in a reactionary mode versus proactive mode?

•Lost opportunity costs

•Expedite costs

Health Check

• Do you have a clear understanding of the flow of information between your order administration, manufacturing, distribution, and delivery systems?

How did we get here?

• Fundamental ways that businesses sell to consumers has evolved during the last 100 years.

•Country store

•Catalog sales

•Internet

Country Store

• Limited product offering

• Consumer purchased what was on hand

• Special orders were the exception

• Direct sales to consumer - Knew what the consumer wanted

• Store Keeper intimately familiar with inventory

• Demand regional in nature

Catalog

• Expanded product line

• Multiple methods for customer to purchase

• Phone, letter, fax, store

• Customer would get product when in stock - unreliable delivery

• Product life cycle driven by publication of annual or seasonal catalogs

• Customer demand determined well in advance of catalog publication.

• Expanded marketplace - regional catalogs

Web based sales

• Mass customization

• Immediate gratification

• In stock

• reliable delivery dates

• Reduced cycle times

• Frequent updates to product offering

• Global marketplace

• Direct customer relationship

CRM Initiative

• Concerns• Time to market• In-house skills• Back office integration

e-Commerce

$50M investment

$250M Return

ERP Integration

DivisionDivision

Division

Department

Department

DepartmentCost Center

Even the best ERP implementations have complex interrelationships

Business Processes

Data Flows

Performance IndicesProfitability

ERP Integration

e-Commerce

DivisionDivision

Division

Department

Department

DepartmentCost Center

• The addition of e-Commerce initiatives strain these interrelationships• Disparate technologies• Complex interfaces• Need for accurate and timely information

Data flow

Data flow

ERP Integration

e-CommerceDivisionDivision

Division

Department

Department

DepartmentCost Center

ERP Integration

e-CommerceDivisionDivision

Division

Department

Department

DepartmentCost Center

Alignment

ERP Integration

e-Commerce

DivisionDivision

Division

Department

Department

DepartmentCost Center

Supply chain adds another level of complexity

ERP Integration

e-Commerce

DivisionDivision

Division

Department

Department

DepartmentCost Center

Alignment

Internet Sales Platform

Laptop or PDA

Typical SAP Internet Architectural diagram

Browser

Customer

Web S

erver

Application S

erver

Internet Sales A

pplication DynamicContent

Management

OrderManagement

PersonalizationR/3

InternetPricing &

Configuration

How to achieve alignment• Enterprise wide business process model

• Outward focused

• Business to Consumer

• Business to Business

• Internal focus

• Multidimensional

• Collaborative sharing of processes

• Marketplaces

• Suppliers

• customers

• employees

What makes a good business model?

• Enterprise-wide system definition

• Tasks - Work step recording

• Work instructions

• Accountability

• Role and organization elements

• Graphical representation

• Swim Lanes

• Decomposition

• Interactive feedback mechanism

• NetProcess

• Creation and Documentation of business processes via the web

• Repository of enterprise wide business processes

• Foundation for business process flow diagrams

• Role and Organization assignments

• Transaction based feedback mechanism

• Integration of LiveModel and LiveCapture technologies

• LiveSynchronizer

• Technical analysis of system and master data

• LiveInterface

• SAP centric data management

IntelliCorp Components

Transaction Summary Analysis - VA01

Filtering VA01

VA01 Initial Analysis

SAP Configuration Tree

Results of IMG Comparison - Materials

Results of Master Data Comparison - Material

Web Based Business Process Baseline

• Take a customer-centric and partner-centric approach

• Capture actual transactions including those from R/3

• Create a baseline business process model utilizing a central repository

• Using transaction history and baselined model

• Identify process bottlenecks

• Identify training deficiencies

• Basis for upgrade and new functions planning

• Validation of testing completeness

• In new eBusiness environment, determine which processes need to be

• Retained

• Refined

• Replaced

Web based Business Process Fundamentals

• Companies Must Align Technology with Corporate Vision

• Utilize eBusiness channels

• Retain most profitable customers

• Reduce the cost of sales

• Use relationship with customer as competitive advantage

• Implement a successful end-to-end CRM and eBusiness solution

• Reduce transformation costs

• Accelerate deployment

Maintain a Customer Perspective

• Segment customers in terms of the lifetime value of the relationship

• Review processes from the customer perspective

• Redesign processes to increase value to customers

• Remove frustration points from customer

• Consider multiple customer contact channels

• Support continuity of customer dialogue across channels

• Review the end-to-end process to ensure that back-office and front-office processes are aligned to support order fulfillment

IntelliCorp• Provides eSolutions for SAP customers

• Co-developed the SCE & SPE with SAP

• Leading IPC implementor

• SFA & eCommerce

• B2B, B2C & B2R

• Most production deployments of the IPC

• Leading provider of SAP lifecycle products:

• LiveModel: scope, plan, test, train, upgrade

• LiveInterface: best-of-breed R/3 integration

• SAP owns over 10% of IntelliCorp

IntelliCorp Solution Offerings

• S7 Solution Portfolio

• eBusiness Transformation Solution

• B2B Procurement Solution

• Internet Sales Solution

• SFA Implementation Solution

• Sales Configuration Solution

• Upgrade Solution

• Consolidation Solution

Questions and Answers

• The conference line will now be opened for audience questions…

• To discuss a specific business area or project please call or email:• (888) MODEL-R/3• sales-info@intellicorp.com

Thank you for joining our discussion today