File: Amex_b2b.PPT 1 Business 2 Business 101 American Express Canada Presentation Presenter: Yogi...

File: Amex_b2b.PPT 1

Business 2 Business 101

American Express Canada Presentation Presenter: Yogi Schulz


RoadmaptoSelf-education

February 2001

“Get me to the

Web

on time or else!”



HousekeepingItems

Refreshments

Facilities

Messages

Cellular phones & beepers



Yogi SchulzBiography

President of Corvelle Management Consultants

Information technology related management consulting

Project management and systems development

Computing Canada columnist

Industry presenter:– Project Management Symposium

– CIPS Informatics

– PMI - Information Systems SIG

– Convergence



Web is full of E-commerce help

PresentationOutline

Introduction

Importance of the Internet

B 2 B Major Applications

B 2 B Benefits

E-commerce publications

Questions & Answers



I’m creatingan E-businessadviceweb site.

MANAGEFASTER,

YOU LAZY DOG!

Using the Webfor Business Success

DOGBERT.COM had asuccessful IPO today,

Netting billions for Dogbert.



Presentation Objectives

Build an understanding of business-to-business application:– categories

– benefits

– success criteria

Build awareness of available resources

Improve B 2 B E-commerce understanding

Why don’t you already understand all this stuff?

Importance of theInternet

E-mail surpassed the telephone as the most frequently used tool for business communication in 1998. Frost & Sullivan 1999

Corporate spending on Web-based technology is predicted to top out at $85 billion in 1999, and jump to $203 billion by 2002. International Data Corp. 1999

More than 79.4 million adults, or 38% of the U.S. population age 16 and older, are now online. IntelliQuest Research 1999.

71% of Internet users spend over 1/2 hour online each day. Pew Research Center 1999

Approximately 77% of all employed people use the Internet at work. U.S. Dept. of Commerce 1999

NewTopic



The Internet and E-commercein Canada

0

10

20

30

40

50

60

70

80

90

1996 1997 1998 1999 2000 2001 2002 2003

WWW Users (M) E-commerce (B$CDN)

Source: IDC Internet Commerce Market Model, V 5.0

Huge

Impact

on

Business



Business-to-Business E-commerceDefinition

Conducting business transactions:

electronically– not fax/phone/mail/in-person

online– typically through the web or EDI

– not via e-mail

between two businesses– not with consumers/government

Buying and selling

products and services

through the web



Business Impactof the Internet

Communication effect– dramatically reduce cost of finding and transferring

information

Brokerage effect– access global markets with minimal incremental costs

Integration effect– shorten, enhance the value chain

Wharton School of the University of Pennsylvania• Sendil Ethiraj, Isin Guler - Ph.D. students• Harbir Singh - Chair, Management Department

Can’t you get it through your thick skull?

Old vs. New Economyinfluenced by David Barry

Owner

Currency

Stock exchange

Distribution channel

Characteristics Old

Money

NYSE

All of us

Bricks & mortar

New

High tech stocks

NASDAQ

Bill Gates

Fedex

Strategy Make money Spend money

Communication Telephone Voice mail

Meeting communication Talk Palm Pilot

Product liability Ridiculous None

Key activity Make products Buy/sell stocks



B 2 B Major Applications Software Packages

Procurement

E-Marketplaces

Content Management

E-Marketing

Supply Management

Content Distribution

E-Commerce

Customer Support

Reference:

Business Week E.BIZ

11 December 2000

page EB 32

NewTopic



Procurement

Description:– enables automated purchasing

Leading supplier - Ariba– www.ariba.com

Key competitors:– Oracle

– SAP

– Commerce One

– upstarts



E-Marketplaces

Description:– creates online exchanges to link buyers and sellers

Leading supplier - Commerce One– www.commerceone.com

Key competitors:– Ariba

– FreeMarkets



Content Management

Description:– manages thousands of pages on web sites

Leading supplier - Vignette– www.vignette.com

Leading supplier - Interwoven– www.interwoven.com

Key competitors:– IntraNet Solutions

– Plumtree



E-Marketing

Description:– tracks customer buying patterns

– predicts what and when they’ll buy

Leading supplier - E.piphany– www.epiphany.com

Key competitors:– Siebel Systems

– SAP

– Art Technology Group



Supply Management

Description:– connects a company’s Web operations with its suppliers

Leading supplier - i2– www.i2.com

Emerging competitors:– Oracle

– SAP

Leading Enterprise Application Integration competitors:– webMethods

– Vitria



Content Distribution

Description:– accelerates content availability to end-users

Leading supplier - Akamai– www.akamai.com

Leading supplier - Inktomi– www.inktomi.com

Expected competitors:– Oracle

– Cisco



E-Commerce

Description:– builds product catalogues

– collects payments

– tracks deliveries

Leading supplier - BEA Systems– www.beasys.com

Key competitors:– BroadVision

– IBM

– Art Technology Group



Customer Support

Description:– automates online customer service

Leading supplier - Kana Communications– www.kana.com

Leading supplier - Ask Jeeves– www.askjeeves.com

Key competitor - Siebel Systems



Safe Credit CardUse



B 2 B Benefits

Sellers

Buyers

Market Makers

NewTopic

“You mean there was a time

before the Web?”



B2B eCommerce BenefitsSellers

Lower costs in:– marketing

– administration

– order fulfillment

Access new customers

Extend market reach still further by:– creating and leveraging close collaboration among trading

partners

– tightening the relationship between supplier and buyer

– promoting price discovery and spend aggregation

– slashing supply chain costs



Return 15-27% back in reduced costs - AMR estimate 1999

B2B eCommerce Benefits Buyers

Reduce direct and indirect supply chain costs by:– leveraging their global scale

– focusing their spend on preferred suppliers

– taking advantage of dynamic models such as auctions and bid-quote for efficient sourcing and spot buying

Utilize new tools for logistics and payment creating new opportunities to:– build transparency in the supply chain

– decrease logistics costs

– increase inventory turns

– improve the overall performance of the manufacturing and procurement processes



B2B eCommerce Benefits Market Makers

Catalyze the growth of the B2B economy by:– leveraging their domain expertise, customer relationships

and supply chain strength

Reap substantial rewards by:– delivering incredible value

– sharing in the returns achieved by buyers and suppliers



Create MemorableWeb Sites



E-CommercePublications

Senior management

IT professional

IT research organizations

Printed and web

NewTopic

“Customers won’t see me

with my pants down!”



Senior Management Publications

Business.Com– www.business.com

CIO Canada– www.itworldcanada.com/cio

CIO Magazine– www.cio.com

Commerce Net– www.commerce.net

InfoSystems Executive– www.plesman.com/ise/home.html

NDU Information Resources Management College– www.nduknowledge.net

IT OrientedPublications - 1

About.com – Electronic Commerce– ecommerce.about.com/smallbusiness/ecommerce

Bit Pipe– www.bitpipe.com

BizWeb - Web business guide– www.bizweb.com– www.bizweb.com/categories/web.software.html

BrainStorm Group– www.brainstorm-group.com

CIO Magazine– webbusiness.cio.com

CNET– www.cnet.com

ComputerWorld Canada – www.itworldcanada.com/cw/


Computing Canada– www.plesman.com/cc/home.html

Cutter Information Corp.– www.cutter.com

E-Business– www.plesman.com/eb/home.html

ebiz– www.ebizmag.com

ebizQ.net– www.ebizq.net

The Eco Framework– eco.commerce.net– eco.commerce.net/rsrc/index.cfm

Ecom World– www.ecomworld.com

ExcellentGlossary


ecommerce Guide– ecommerce.internet.com

estreet– www.canoe.ca/eStreet/home.html

E-Commerce Times– www.ecommercetimes.com

Information Week– www.informationweek.com

Internet.com– www.internet.com– www.internetnews.com

TechRepublic– www.techrepublic.com



IT ResearchOrganizations - 1

Electronic Commerce Research Laboratory– elabweb.com

Forrester– www.forrester.com

Gartner Group– gartner5.gartnerweb.com/public/static/home/home.html

Giga Information Group– www.gigaweb.com



IT ResearchOrganizations - 2

IDC– www.idc.com

Meta Group– www.metagroup.com

Round Table Group– www.round.table.com

Yankee Group– www.yankeegroup.com

Xephon– www.xephon.com



U. S. GovernmentE-commerce Sites - 1

Center for Research in Electronic Commerce– cism.bus.utexas.edu

Federal Electronic Commerce Program Office– www.ec.fed.gov

Electronic Commerce Policy– www.ecommerce.gov

Electronic Commerce Resource Center– www.ecrc.ctc.com

The Framework for Global Electronic Commerce– www.whitehouse.gov/WH/New/Commerce



U. S. GovernmentE-commerce Sites - 2

Government Technology– egov.govtech.net

National Electronic Commerce Coordinating Council (NECCC)– www.ec3.org

Electronic Commerce Knowledge Center– www.knowledgecenters.org

Office of Information Technology– www.itpolicy.gsa.gov



Canadian GovernmentE-commerce Sites

Canadian E-business Opportunities Roundtable– www.bcg.com/practice/

ecommerce_canadian_roundtable.asp

Electronic Commerce Canada Inc.– www.ecc.ca/Index.html

Electronic Commerce in Canada– Industry Canada

– e-com.ic.gc.ca/english



Canadian Government Industry Canada - E-commerce Sites

Consumers and Electronic Commerce– strategis.ic.gc.ca/SSG/ca00622e.html?pacregion=bcecomnet

Electronic Commerce– strategis.ic.gc.ca/sc_indps/sectors/engdoc/ecom_hpg.html

The Electronic Market Place– strategis.ic.gc.ca/SSG/mi06840e.html

Net Gain –Business on the Internet– strategis.ic.gc.ca/sc_indps/sectors/engdoc/gain_hpg.html

Retailing Resource Centre– strategis.ic.gc.ca/engdoc/retailer.html




Importance of the Internet

B 2 B Major Applications

B 2 B Benefits

E-commerce publications

“With these ideas you can

succeed

and still sleep in your cubicle!”



Any Questions?

Dogbert

will explain it

to you



700, 205 - 5th Ave. S.W.Calgary, Alberta Canada T2P 2V7

Phone: (403) 249-5255E-mail: [email protected]

Web: www.corvelle.com

President of Corvelle Consulting

Information technology related management consulting

Project management and systems development

Computing Canada columnist

American ExpressBusiness 2 Business 101



Bibliography- 1

Ariba B2B Update Exclusive– Don Tapscott, Chair of Digital 4Sight and co-author of Digital Capital

– www.ariba.com/corporate/news/tapscott.cfm

B 2 B Major Applications - Software Packages– Business Week E.BIZ, 11 December 2000, page EB 32

B2B Marketplaces in the New Economy– Ariba white paper

Beyond Today's Turning Point for Net Business – www.businessweek.com/bwdaily/dnflash/oct2000/nf2000105_825.htm

– Business Week, 5 October 2000

Blueprint for B2B Success– Ventro white paper



Bibliography- 2

Content Management in E-Commerce– Tony White and Kathleen Hall, March 2, 2000, Giga Information

Group

E-Business and the Myth of Disintermediation– M. Bernstein, 8 November 1999

– gartner5.gartnerweb.com/public/static/hotc/hc00084111.html

E-commerce waits for no one – Victoria Berry, ComputerWorld Canada, 28 July 2000

Electronic Commerce Solutions ‘99– vendor presentations about E-commerce technology/cases

– www.okreg.com/ecomm



Bibliography- 3

Exchange: Breaking the B2B Barrier– Oracle Magazine, January/February 2000, p. 66

Organizing for E-Business: Getting It Right – M. Gerrard. 12 September 2000

– gartner5.gartnerweb.com/public/static/hotc/hc00092498.html

Proper Staffing Is Key To E-Commerce Success– Ben Slick, Internet Week Online, 5 July 1999

– www.internetwk.com/change/change070599-2.htm

Purchasing in Packs– Ken Ferguson, Business Week E.Biz, 1 Nov. 1999, p. EB33

– By Stephen Kindel, Executive Edge, February - March 1999

– www.ee-online.com/feb/feb_feat_03.htm



Bibliography- 4

Reassessing E-Commerce– Despite its size and explosive growth, e-commerce requires close

attention to all of a company's other marketing channels

RosettaNet key to 3Com’s supply chain– PC Week, 14 February 2000, p. 25

The secret of e-business success – Rod Travers, 09/15/2000, CIO

Supply chain management: the big payoff– Christopher Koch - CIO Magazine, 2 October 2000

– www.itworld.ca/portals/portal_template.cfm?view=true&PortalID=6&ArticleID=1297&CategoryID=3



Bibliography- 5

10 success factors for e business– www.ibm.com

Ten Ways IT And E-Biz Projects Are Different– David Smith, Internet Week Online, 11 October 1999

– www.internetwk.com/transform/transform101199-2.htm

The Devil in the Details– How the Canadian Imperial Bank of Commerce hopes to save over

$50 million a year automating the purchasing function

– The Seven Caveats of On-Line Procurement

– By Catherine Fredman, Executive Edge, April - May 1999

– www.ee-online.com/apr/apr_feat_04.htm



B2B Procurement - 1

Obtain product information – requisitioner obtains information about products that are

available from Intranet-accessible electronic catalog.

– catalog is maintained by suppliers and corporate purchasing department.

Create the order– requisitioner creates order by completing a web-based form.

– requisitioner must know how to fill out form correctly, including the entry of information, such as product codes, cost centre codes and supplier codes.

Electronic automation of traditional business practices



B2B Procurement - 2

Obtain approval– requisitioner seeks approval from the relevant authorizer(s).

– form is routed to the correct individual or individuals using workflow features of software.

Create/transmit purchase order– purchase order is generated and submitted to the supplier for fulfillment.

– transmission uses EDI, XML or proprietary data format

Fulfill the purchase order– supplier checks that the product is currently in stock and that the quoted price

is valid.

– supplier fulfills the customer order by removing it from inventory.

– supplier transmits order confirmation to requisitioner.



B2B Procurement - 3

Ship the product– supplier relies on address on purchase order for delivery of

goods.

– requisitioner can access supplier web site to track the status of the purchase order.

Receive the product– product is delivered to and processed by the receiving

department of the customer.

– receiving department will notify the requisitioner via e-mail

– receiving department will deliver product to requisitioner.



B2B Procurement - 4

Pay for the product– when the arrival of the product is confirmed, payment is made

to the supplier for the amount stated on the purchase order.

– Payment is made via EFT transaction.

Process description derived from: The Procurement Processhttp://www.microsoft.com/TRAININGANDSERVICES/content/training/samples/2260/Webfiles/Mod02/02m8.htm



Features of e-Procurement - 1

Online discovery of product information – requisitioner uses a self-service Web application to place their order.

– available products listed in a centrally maintained online catalog with pricing information.

– availability can be checked directly with the supplier's system

– anticipated delivery time can be provided.

Simplified order creation– requisitioner will be prompted by the application to fill out any required parts of the order form.

– Look-ups for codes can be implemented.

Intelligent approval process– The application will automatically submit the order to the correct individual for approval. The requisitioner need not know the identity of this individual. If more than one

individual is involved in the approval, the request can be automatically routed between the individuals as approval is gained.

Automatic submission of the order to the suppliers – At the end of the approval chain, the order can be automatically processed to segregate the goods from different manufacturers. The system can automatically combine

multiple orders on a daily, weekly, or cost basis before creating a purchase order and submitting it to the supplier.

Automatic fulfillment of the order – The supplier system can automatically process the order. After the information on the order has been validated, warehousing and billing systems can be contacted to fulfill

the order.

Efficient, automated shipping process – Orders can be sent to the pre-stored standard location for the purchasing company (if appropriate) through a shipping company (again, if appropriate). Links between the

purchasing organization's systems and those of the supplier/shipper allow the requisitioner to track the progress of the order.

Automatic routing, inventory updates, and delivery of goods to the recipient– As goods arrive, they can be entered into a system that tracks goods received. The system can match the goods to the orders submitted and provide information about the

recipient of the goods.

Automatic payment for the goods– The system may require the requisitioner to confirm receipt of the goods. The confirmation could be used as a trigger to automatically pay the supplier for those goods.




Intelligent approval process– application automatically submits the order to the correct individual

for approval.

– requisitioner need not know the identity of this individual.

– if more than one individual is involved in the approval, the request can be automatically routed between the individuals as approval is gained.

Automatic submission of the order to the suppliers – At the end of the approval chain, the order can be automatically

processed to segregate the goods from different manufacturers.

– system can automatically combine multiple orders on a daily, weekly, or cost basis before creating a purchase order and submitting it to the supplier.




Automatic fulfillment of the order – The supplier system can automatically process the order. After

the information on the order has been validated, warehousing and billing systems can be contacted to fulfill the order.

Efficient, automated shipping process – Orders can be sent to the pre-stored standard location for the

purchasing company (if appropriate) through a shipping company (again, if appropriate). Links between the purchasing organization's systems and those of the supplier/shipper allow the requisitioner to track the progress of the order.




Automatic routing, inventory updates, and delivery of goods to the recipient– As goods arrive, they can be entered into a system that tracks

goods received. The system can match the goods to the orders submitted and provide information about the recipient of the goods.

Automatic payment for the goods– The system may require the requisitioner to confirm receipt of

the goods. The confirmation could be used as a trigger to automatically pay the supplier for those goods.

Process description derived from: Automating the Procurement Processhttp://www.microsoft.com/TRAININGANDSERVICES/content/training/samples/2260/Webfiles/Mod02/02m9.htm

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