Keith Dunnell Manager, Corporate Initiatives Group October 15, 1998 e E-Commerce Across GE Summary...
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Transcript of Keith Dunnell Manager, Corporate Initiatives Group October 15, 1998 e E-Commerce Across GE Summary...
Keith DunnellManager, Corporate Initiatives GroupOctober 15, 1998
e E-Commerce Across GESummary of activity by business.
2
Statistics on Internet E-commerce
Use of the Internet for business-to-business commerce is growing rapidly...
•Business-to-business commerce will account for 78% of the dollar value of cybertransactions this year
•Businesses will exchange an estimated $17 Billion worth of goods and services over the Internet in 1998
•By 2002, Internet business-to-business e-commerce is expected to top $327 Billion
•Of companies that use EDI today, 80% plan to implement extranets within five years
•By 2003, it is estimated that over 30% of EDI data will traverse the Internet
3
Statistics on Internet E-commerce
Best practices research shows that Internet E-commerce reduces costs and increases customer service...
•CISCO saves $2M per year in documentation printing costs and has saved $360M in sales marketing and technical support costs
•GE Appliances reduced order transaction cost from $5 per order to $1 per order
•FEDEX reduced call center volume by 50%
•GEIS reduced help call volume and increased customer service to 24 hours, 7 days/week
•Sun has saved over $20 MM in marketing costsCompanies will either lead or lag in the race towards greater
profitability as more business is conducted using this technology.
4
Successful Use of the Internet for E-commerce
Companies that successfully do electronic commerce over the Internet tend to:
•Sell products or services that can be chosen/configured from a ‘catalog’
•Serve customers that have some idea of what they want to purchase
•Provide customers with value-added capabilities online such as order entry
•Service a high volume of transactions (sales, inquiries, etc.)
•Provide customers with an online communications channel (e-mail and/or comments section)
•Advertise their website externally
•Offer competitive prices/terms
5
External Business’ Use of the Internet for E-commerce
List of External Best Practices - Sell Side Processes
Advertising•FEDEX posts their URL on their vans and trucks, and lists it on all documentation
•Dell advertises their website in product magazines and other print media
•Amazon.com advertises on www.aol.com, and is listed in search results from various search engines
•3M’s URL is advertised in print media
•Charles Schwab advertises its online brokerage in major financial publications
Order Placement
•Cisco has daily sales of $11MM through online ordering
•Boeing sold $100MM of spare parts online in 1997
•Adaptec (chip mfr.) reduced OTD cycle time by 50% by doing sales online
•Ford, Chrysler take car orders online and pass them to dealershipsSources: Benchmarking research and interviews.
6
External Business’ Use of the Internet for E-commerce
List of External Best Practices - Sell Side Processes
Order Confirmation•Amazon.com, Dell send e-mail messages confirming online orders usually within minutes of order placement
•Schwab sends an online confirmation upon ordering and mails a confirmation after trade execution
•Cisco automatically sends order confirmation via e-mail
Order Status
•FEDEX reduced calls to their customer service center by 50% using their website
•GTE provides system status online, including scheduled maintenance
Sources: Benchmarking research and interviews.
7
External Business’ Use of the Internet for E-commerce
List of External Best Practices - Sell Side Processes
Other•Amazon.com Personal Notification sends users an e-mail when a new book is published that matches the user’s interests
•Schwab has a demo on its website of using its online services
List of External Best Practices - Buy Side Processes•LA County Office orders and pays online - saved 5% just by online comparison shopping (on $650MM procurement base), projects reduced inventory of $38MM over next 5 years
•Adaptec reduced WIP Inventory by $9MM through online procurement
•Raytheon expects purchase order transaction cost will drop from $100 to $3
•Autolinx Virtual Private Network (a predecessor to ANX, the Big Three Automakers’ new VPN) saved Defasco Inc. 75% on procurement costs
Sources: Benchmarking research and interviews.
8
GE Business’ Current Use of the Internet for E-commerce
Currently GE businesses are beginning to use Internet technology to transact with customers and improve service.
•First release of Internet order entry systems currently in use, typically accounts for <10% of business sales
•Typical functionality includes order status
•EDI is commonly used for billing
•Need quantifiable measurement of Internet E-commerce benefits
•Opportunities across businesses for sourcing using the Internet
9
Plastics(Americas Resins)
Plastics (Polymerland)
Industrial Control Systems
GEIS
GE Order Payment Business Advertising Promotion Order PlacementConfirm.E-Bill Shipping Collection
•Global Knowledge Net
– product guides– tech specs– product
applications•www.polymerland.com
– product info– product
performance specs
– material selection DB
•Online product catalogs
•Mod Center advertises on webst.
EDI (GEIS COE)
EDI
EDI
•10% of sales currently online
•Full automation of order entry with Oracle system
•Customer link– provides quotes– must talk to CSR
to place order•Client Services Website allows set-up of EDI Trading Partner relationships
•Polymerland Browser used to stimulate Internet use
•Special offers on aged inventory
•Pre-registered top 850 customers on website, then mailed “how-to” CD-ROM to stimulate site usage
•Displays active promotions
•Project underway
N/A
EDI
GE Current Internet Use for E-Commerce Sell-Side Processes
10
•Online catalog
•Magnetic Resonance site contains data on MEDS products
•Online Accessories advertised at Med Device convention booth, by direct mail, and telemarketing
•Product features & specs on website
•Product info online•Marketing websites•NBC interactive websites advertise TV programs
Supply
Medical Systems
GETSGEPS
Aircraft EnginesLightingAppliances
ED&CNBC
GE Order Payment Business Advertising Promotion Order PlacementConfirm.E-Bill. Shipping Collection
EDI
EDICustomer NetEDIN/A
• SupplyNet has online order entry that is input to automatic order release
•Online Accessories has online order entry
•Parts on the web project underway
•Project underway for spares
•Customer Net automatically ships
•EDI, dial-up systemN/A
•MEDS website has info on TIP TV (online customer training program)
•Online Accessories has promotions online
•Online promos for customers
N/A
•Future release of online accessories?
•Backorder shipment notification
N/A
•SupplyNet has automated pick-pack-ship if inventory is available
•Customer Net
N/A
•CRD co-developed application; electronically linked online access to A/P mainframe system
•Customer Net
– EFT– CreditCards
N/A
GE Current Internet Use for E-Commerce Sell-Side Processes
11
GE Current Internet Use for E-Commerce Sell-Side Processes(continued)
Plastics(Americas Resins)
Plastics (Polymerland
Industrial Control Systems
GEISSupply
MEDSGETSGEPSGEAELightingGEA
ED&CNBC
GE Customer OrderCustomerGeneral CustomerBusiness ModificationFeedback/SurveysCommunications Order Status Other
•Customer link can be used to modify existing quotes
•Modify saved quotes
•Modify saved quotes
•48 hrs to release
N/A
•Project underway
•Customer e-mails route to Internet CSR team; regional CSR responds to e-mail
•Global cust. can e-mail questions
•“Notes” section online order form
N/A
•Client Svcs Website
•Online Accessories
Customer Net
N/A
•Project underway
•Can check open / closed orders
•Customer Link gives order status
•EDI doc status
•Order status
•Oracle Brows. •Cust. Info Del. System
•Customer Net
N/A
•Tech Svc 24 hours / 7 days•Partnered with IDES database access (catalog of Plastics Mfr product info)
•“Expert” question bulletin board•YTD buying history per customer•Shows inventory available•Inventory available•Mfr X-reference•Lead time•Model data compare and search•Online engineering drawings
•SupplyNet allows checking inventory status
•Online Accessories has smart engine search
•Web Council planning strategy •Inventory status available
•Purchasing history•Proof of delivery printing•Model comparison N/A
12
GE Current Internet Use for E-Commerce Buy-Side Processes
Plastics
Industrial Control SystemsGEISSupplyMedical SystemsAircraft EnginesAppliances
TransportationED&CLighting
Capital
NBCPower Systems
GE Modify General VendorBusiness RFQ Ordering E-Payment OrderCommunications
•TPN Post
•TPN Post
•Purchase Card
•Purchase Card
•Requesting funding for TPN Buyer Services
•Oracle WWW requisitioning
•EDI•Starting installing TPN Buyer Services
•Supplier webstation pilot•EDI, faxes
•EDI•Oracle WWW requisitioning•TPN Buyer Services
•Requesting funding for TPN Buyer Services
•Motor Carrier finished goods services:
– commitment changes
– inquiries on load information
– reporting of delivery problems
•Supplier Process Quality system provides supplier data
•Working with GEIS on supplier extranet
13
GE Capital
Seven GE Capital Businesses (3 Consumer Services, 1 Mid-Market Financing, 1 Specialty Insurance, and 2 Equipment Financing) are currently using the Internet to provide customers with full sales and service.
CU
RR
EN
TLY
RailcarTIP
ERC
Americom
GEFA
CFECG
MortgageInsurance
RFS
Penske
RealEstate
Fleet
GECASHawaii
VFS
GCF
GEFA MortgageInsurance
RFS
Penske
Fleet
VFS
GCF
Railcar
TIPERC
GEFA CFMortgageInsurance
RFS
Penske
Fleet
GECAS VFS
GCF
Prospecting(Receive Request/Quotes On-Line)
Order Entry(View/Score/
Order On-Line)
Post-SalesSupport &
Service(On-Line Customer Service)
14
GE’s Use of the Internet for E-commerce
•GE Polymerland did focus groups with customers to determine website content, and used the Polymerland Browser to stimulate WWW use amongst customers
•GEIS pareto analyzed calls coming in to Client Services, designed site content around Inquiry calls, and realized $225K in savings from reduced call volumes
•GE Supply’s SupplyNet has automated order entry and release so that WWW users that order in-stock items automatically receive them next business day
•GEICS’ Customer Link has Motor model search, model compare, and CAD drawings online, which enables users to configure their own motor system and get a price quote
•GEMS’ Online Accessories includes online ordering and promotions, a ‘smart’ product search engine, and an online customer comments/feedback section
•Appliances’ CustomerNet includes online ordering and promotions, accepts electronic payments, provides order status and invites customer feedback
•GEFA which provides online sales and customer support is acting as a Center of Excellence for GE Capital Businesses and sharing E-commerce best practices
Sources: Best practices research and interviews.
Internal Best Practices