American Express Canada Presentation Presenter: Yogi Schulz

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American Express Canada Presentation Presenter
Yogi Schulz
Business 2 Business 101 Roadmap to Self-education
February 2001
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HousekeepingItems

• Refreshments
• Facilities
• Messages
• Cellular phones beepers

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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

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PresentationOutline

• Introduction
• Importance of the Internet
• B 2 B Major Applications
• B 2 B Benefits
• E-commerce publications
• Questions Answers

Web is full of E-commerce help
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Using the Webfor Business Success
Im creating an E-business advice web site.
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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
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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

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The Internet and E-commercein Canada
Source IDC Internet Commerce Market Model, V 5.0
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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

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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

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Old vs. New Economyinfluenced by David Barry
Characteristics
Old
New
Currency
Money
High tech stocks
Stock exchange
NYSE
NASDAQ
Key activity
Make products
Buy/sell stocks
Owner
All of us
Bill Gates
Communication
Telephone
Voice mail
Product liability
Ridiculous
None
Distribution channel
Bricks mortar
Fedex
Strategy
Make money
Spend money
Meeting communication
Talk
Palm Pilot
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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
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Procurement

• Description
• enables automated purchasing
• Leading supplier - Ariba
• www.ariba.com
• Key competitors
• Oracle
• SAP
• Commerce One
• upstarts

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E-Marketplaces

• Description
• creates online exchanges to link buyers and
  sellers
• Leading supplier - Commerce One
• www.commerceone.com
• Key competitors
• Ariba
• FreeMarkets

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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

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E-Marketing

• Description
• tracks customer buying patterns
• predicts what and when theyll buy
• Leading supplier - E.piphany
• www.epiphany.com
• Key competitors
• Siebel Systems
• SAP
• Art Technology Group

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Supply Management

• Description
• connects a companys Web operations with its
  suppliers
• Leading supplier - i2
• www.i2.com
• Emerging competitors
• Oracle
• SAP
• Leading Enterprise Application Integration
  competitors
• webMethods
• Vitria

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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

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E-Commerce

• Description
• builds product catalogues
• collects payments
• tracks deliveries
• Leading supplier - BEA Systems
• www.beasys.com
• Key competitors
• BroadVision
• IBM
• Art Technology Group

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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

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Safe Credit CardUse
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B 2 B Benefits

• Sellers
• Buyers
• Market Makers

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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

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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

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

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Create MemorableWeb Sites
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E-CommercePublications

• Senior management
• IT professional
• IT research organizations

Printed and web
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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

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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/

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IT OrientedPublications - 2

• 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

Excellent Glossary
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IT OrientedPublications - 3

• 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

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IT ResearchOrganizations - 1

• Electronic Commerce Research Laboratory
• elabweb.com
• Forrester
• www.forrester.com
• Gartner Group
• gartner5.gartnerweb.com/public/static/home/home.ht
  ml
• Giga Information Group
• www.gigaweb.com

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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

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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

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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

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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

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Canadian Government Industry Canada - E-commerce
Sites

• Consumers and Electronic Commerce
• strategis.ic.gc.ca/SSG/ca00622e.html?pacregionbce
  comnet
• Electronic Commerce
• strategis.ic.gc.ca/sc_indps/sectors/engdoc/ecom_hp
  g.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_hp
  g.html
• Retailing Resource Centre
• strategis.ic.gc.ca/engdoc/retailer.html

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Business 2 Business 101
Wrap UP

• Importance of the Internet
• B 2 B Major Applications
• B 2 B Benefits
• E-commerce publications

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Any Questions?

• Dogbert
• will explain it
• to you

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American ExpressBusiness 2 Business 101
700, 205 - 5th Ave. S.W. Calgary, Alberta
Canada T2P 2V7 Phone [phone] E-mail
YogiSchulz_at_corvelle.com Web www.corvelle.com

• President of Corvelle Consulting
• Information technology related management
  consulting
• Project management and systems development
• Computing Canada columnist

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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/nf200
  0105_825.htm
• Business Week, 5 October 2000
• Blueprint for B2B Success
• Ventro white paper

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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/hc00084
  111.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

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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/hc00092
  498.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

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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 3Coms 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?viewtr
  uePortalID6ArticleID1297CategoryID3

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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

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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
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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.

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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.

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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 Process http//www.microsoft.com/TRAIN
INGANDSERVICES/content/training/ samples/2260/Webf
iles/Mod02/02m8.htm
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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

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Features of e-Procurement - 2

• 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.

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Features of e-Procurement - 3

• 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.

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Features of e-Procurement - 4

• 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 Process http//www.microsoft.com/TRAIN
INGANDSERVICES/content/training/ samples/2260/Webf
iles/Mod02/02m9.htm