G1RD-CT-2002-00698 e-Volution II

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G1RD-CT-2002-00698e-Volution II Road map for
e-business implementation in Extended Enterprises
Final Project Review 15 April 2005
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Table of content

• Project objectives and approach
• Management review of project results
• Road mapping methodology and software tool-kit
  (test case instance)
• Content Service Provider
• Training
• Project dissemination
• Exploitation and follow-ups
• Summary of main achievement
• Management review of administrative and financial
  aspects
• Annex details of technical results
• Methodology
• Software tool-kit OrganisationAnalyser,
  MarketAnalyser, StrategyBuilder

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Project objectives

• the development of an enabling methodology for
  the implementation, adaptation and optimisation
  of e-business strategies covering the whole
  supply chain,
• its validation in a representative constellation
  of test cases
• its facilitation through software based
  application aids and training materials and
• its launch on the market for industrial adoption
  and the exploitation of a new content management
  service with e-business focus.

Enhancement of competitiveness and sustainable
growth of European Extended Enterprises by
successful use of e-business as means for value
chain integration
Source Operational project objectives from the
TA (DoW) of 2nd and 3rd Contract Amendment
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Expected project results

• E-business strategy kit e-Volution management
  methodology and web-based management decision
  support system, the modular e-Volution software
  tool-kit
• Content Service Provider as extension of existent
  e-gateway portal
• Successful realisation of industrial reference
  and show cases for an Extended Enterprise of
  different size and nationality (Germany, Italy,
  and Greece)
• web page for dissemination and exploitation
  purposes
• Constitution of national industrial Interest and
  Reference Groups (IRG)
• Commercialisation of methodology and software
  training concepts
• Constitution of an organisation for partners
  common exploitation activities

Technical work
Dissemination work
Exploitation preparation
Source From the TA (DoW), 3rd Contract
Amendment
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evolution from state-of-the-business
architectures to competitive business
architectures of the future
Communication establishment
Stabilisation of collaboration
Business partner integration (Extended Enterprise)

• Definition of enterprise role in the network
• Project coordinator, customer coordinator,
  network coordinator, development partner,
  production partner, service partner, quality
  manager, infrastructure manager
• Definition, i.e. personalisation of
  responsibilities and assignment of resources
• Agreement on communication procedures

• Stabilisation of collaboration and definition of
  coordination mechanisms
• Benefits, IPR handling, penalties, costs/profit
  assignment
• Definition of inter-enterprise processes and
  workflows

• Extension of enterprise boarders
• Information sharing and ICT-integration
• Business process and workflow integration
• Cultural and social integration
• Decentralised (core)competences along integrated
  value chains
• Higher market/customer orientation by flexible,
  efficient value chain (re)configuration

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Project definition of the Extended Enterprise
The Extended Enterprise is a dynamic,
market-oriented business arrangement and a
concept for integrated value chains. The
significance of the Extended Enterprise, as
distinct from the conventional supplier-customer-r
elationships, is the truly integration of
organisation's business processes and information
systems with those of suppliers, business
partners and customers. The Extended Enterprises
concept enables efficient and effective
collaboration among value chain partners, driving
productivity and innovations into new heights.
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Vertical Extended Enterprise constellation

• Business collaborations between enterprises from
  different value chain levels - each level adds
  value to the material till the final product
• Final producer as interface to the consumer
  market
• Customer-supplier relationships
• EE characteristics
• Organisational integration along the value chain
• Coordination, alignment, extension and
  integration of business processes and activities
• Technical integration along the value chain
• Information exchange, sharing and extended
  information processes and for transaction cost
  management

b2b or b2c customer
final manufacturer
b2b 1st tier suppliers
B2b n-tier suppliers
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Horizontal Extended Enterprise constellation

• Enterprises of same production or market level
• Development of potentials from economy of scale
  or specialisation
• Products/services are related by production or
  process technology
• Same or almost business enables development of
  synergies and collaborative business common
  market research, procurement, and/or development
  activities specialisation common customers
  service and sales organisation, etc.
• each partner has potentially direct contact the
  end-user market
• EE characteristics
• Organisational integration in one value chain
  step
• Coordination, alignment, extension and
  integration of business processes and activities
• Technical integration along the value chain
• Information exchange, sharing and extended
  information processes and for transaction cost
  management

b2b or b2c customer
manufacturers
Vertical EE
n tier supplier
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Collaborative business approach for horizontal
vs. vertical Extended Enterprise constellations
Horizontal Extended Enterprise constellation
Vertical Extended Enterprise constellation
Customer
Customer

• Shared organisational analysis
• Shared market analysis
• Shared vision
• Shared mission
• Corresponding business objectives

• Shared organisational analysis
• Shared market analysis
• Shared vision
• Shared mission
• Corresponding business objectives

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The e-volution concept e-business
implementation in Extended Enterprises
e-business road mapping methodology
Software tools
Based on approved models, e-volution offers an
e-business road mapping methodology that fulfils
the requirements of a systematic and
goal-oriented planning of e-business
implementation.
The methodology is the starting point for the use
of phase specific, supporting software tools.
Training package
The e-volution training package is for transfer
and teaching how to apply the e-business road
mapping model, methods and tools.
Content Service
The e-volution Content Service disseminates the
e-business road mapping model with its methods
and tools but also know-how about e-business.
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Scope of e-volution

• E.g. individual potentials (benefits) for a
  company within an EE (risk, costs, resources,
  product/service)

Performance
Management
Legislation
Culture

• E.g. different strategies but harmonised
  objectives, integration of single strategies

Strategy
Behavioural perspective

• E.g. company specific ITC infrastructure and
  formats, distributed systems, (branch specific)
  standards

Financial perspective
Informational perspective
e-business

• E.g. e-business impact on processes, material
  flow and activities

Process, material flow perspective
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Project approach and technical result presentation
Requirement analysis
Methodology development
Software development
Interest and Reference Group
Test case applications
Training development
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Management review of project results
Road mapping methodology and software tool-kit
(test case instance and overview) Content Service
Provider Training Project dissemination Summary
of main achievement
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Road mapping methodology and software tool-kit
(test case instance and overview)
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Methodology purpose

• Methodology to create e-business implementation
  roadmaps in which the shared e-business projects
  in the Extended Enterprises are mapped
• Reducing risks, uncertainties, incompatibilities
  within the scope of strategic e-business planning
  in horizontal/vertical value chains
• Know-how transfer of business planning processes
  and methods to SMEs
• Enhancement of e-business implementation along
  inter-enterprise value chain
• Making e-business accessible to enterprises as
  basis for realisation of Extended Enterprise
  concept

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Methodology objectives

• consideration of e-business life cycle in
  Extended Enterprises
• value/supply chain focus
• simple and efficient to use and traceable results
• easy to learn to enable user to repeat and
  replicate the process for use case specific
  constellations
• industry independent, flexible in its application
  and applicable in different environments
• accommodation of existing resources and varying
  constraints inside the Extended Enterprise
• use of roadmapping approach

Specific objectives addressed
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Methodology concept

• Business objectives satisfaction contribution of
  e-business to the realisation of business
  objectives
• Value chain focussing analysis of the whole
  supply and value chain
• E-business opportunity identification enterprise
  and E2 potentials, e-business bottlenecks (b2b,
  b2c, b2a)
• Adaptability and flexible use framework, open
  for case specific adaptation und use
• Interactive, participative and thorough
  collaboration of value chain partners to complete
  the process of e-business strategy formulation
• Modular guideline for realisation of e-business
  (ICT and organisation), tool support
• Integrative proofed and innovative methods and
  instruments from academia and business world

Key principles and design guidelines
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Roadmapping process to develop the e-business
roadmap

• creative analysis method forecasting, finding,
  analysing, assessing and visualising future
  development paths of products, services,
  technologies, and business at all
• systematic registration and grouping of expertise
  knowledge, coordination of different opinions
• logical and consistent method for organisations
  to decide where to focus and invest resources
• structured mechanism for organisations to
  forecast developments and how they need to react
  to them
• ideal for collaborative planning and strategy
  coordination in an EE
• Methodology integration framework for
  activities, methods, tools, know-how

e-business roadmap is time-based plan that
defines where an entity is, where it wants to go,
and how it can get there (e-business strategy)
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Methodology structure
e-business roadmap
e-volution scope
Out of e-volution scope

• Thematic modules
• Integrated in common business life cycle models
• Open (reference) process model
• Supporting components (software and training)

Methodology
Support
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Methodology and software for e-business
implementation inExtendedEnterprises
Organisation Analyser
StrategyBuilder
e-business roadmap
ProjectManager
Content Service Provider
Market Analyser
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The Extended Enterprise constellation of German
test case

• Vertical Extended Enterprise constellation of
  small and medium sized enterprises in a
  representative industrial sector
• Need for increased business process efficiency
  and effectiveness for all business partners to
  realise a sustainable and competitive business
• Existing, long-term customer supplier business
  relationships between enterprises which represent
  different value chain stages and levels
• Different e-business status, experiences and
  resources for e-business in the Extended
  Enterprise

consumers
Forwarding agent
Specialised dealers, resellers
final producer
Wooden items
1st tier suppliers

• WINI enterprise is driver and coordinator of ONE
  specific Extended Enterprise constellation along
  office furniture value chain

n tier suppliers
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Methodology Module 1 application
Definition of business objective system
Definition of business objective system
Organisation analysis
Market analysis
Organisation analysis
Market analysis
Extended, collaborative business conception,
design, implementation and operation activities
E-business strategy and roadmap formulation
E-business strategy and roadmap formulation
E-business strategy and roadmap implementation
E-business strategy and roadmap implementation
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Strategic Early Warning System Analysis for the
EETrend layer model of EE and its environment
Zunahme von dezentralen Unternehmensstrukturen dyn
amische Management- konzepte
Logistik statt Handel
Kleine Riesen
1. Finding
Macro-environment
Kommunikations- technologie
prozessorientierte Bürokonzepte
Wettbewerbsverschärfung
Nachfrage an kommunikative Möbellösungen
Handelsplattformen (Internet-Katalogversand) mit
Ausstellungsfläche
Entwicklung zur Dienstleistungs- gesellsc
haft
Globalisierung der Märkte
2. Filtering
CD/Individualisierung bei Großprojekten/-kunden
Micro-environment
EU-Bildschirm- richtlinie
Konzentrationsprozeß im Fachhandel
Home-Office
Systemanbieter als Wettbewerbsvorteil
Miniaturisierung der Produkte
Zunahme Call-Center
Flexible Nutzung der Räume

• Results from SEWS analysis with impact on
  (further)development of competences in the value
  chain
• Online-sales is strategic sales channel for final
  products and in competition to specialised
  dealers (stagnation)
• Need for complete value chain optimisation

Vorfertigung
Billigmöbel aus Osteuropa
Reduzierte Nettoarbeitsfläche in Großbetrieben
EU-Erwei- terung nach Osten
Produktent- wicklung
Veränderung der Besprech- ungskultur
Fuhrpark
Fachmarkt als Betriebform der Zukunft
Enterprise
PC-Arbeitsplätze
Mangelnde Qualifikation des Fach- handels
Design
Unterneh- mensfusionen
Montage
Präventive Gesundheits-vorsorge (Ergonomie)
Verteuerung von Energie
Vertrieb über FH
Entwicklung neuer Absatzkanäle "Online"
Trend zur besseren Auslastung der Büroräume
"Desksharing"
...
Funktionalität vs. Prestige
Zunahme der Rationalisierung in der Bürowelt
Gesellschaftlicher Wandel, Discounter als
Sieger Geiz ist geil
Einzug neuer Medien
Innovation als Wettbewerbs- vorteil
Einkommensentwicklung - Trend zu preiswerten
Möbeln
Unsicherheit
Direktgeschäft ohne Handelsstufe
Der Kapitalmarkt beeinflußt die Weltkonjunktur
Zunahme an Unternehmens- kooperationen
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Strategic Early Warning System Analysis for the
EESystem Thinking analysis
3. Formatting
4. Focussing

• Reactions on trends in EE environment
• Active use of information technology (1) and
  internet (8) for business
• Optimisation of procurement and sourcing
  processes (7)

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Benefit expectations from the EE for
Actors Role Expected EE-benefits (Costs, Risks, Resources, Results)
WINI, Veyhl b2b-customer Costs Transaction cost reduction (less coordination complexity with plan modification, lower error ratio, automatically ordering, higher planning security and planning quality due to rolling planning) Costs no increase of stock (more varieties with less lot sizes), less scrapping Costs lower purchase order quantity (types) with shorter order cycle Result Securing of ability to deliver and loyalty towards the end customer Result Increase in sales through more customer orders as a result of flexibility Result higher end customer satisfaction and commitment due to higher flexibility
WINI, specialised dealers b2b-supplier Resources Costs more efficient order entry (WINI) Costs lower complaint costs (specialised dealers) Costs lower transaction costs (WINI, specialised dealers) Risks avoidance of faulty product data (technical, price) Results easier, efficient and faultless planning by specialised dealers Result graphic product presentation for consumer
WINI, Kusch Development collaborator Resources resource sharing by means of collaborative development processes Costs cost sharing for tool development Costs development of potentials from economy of scale
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Benefit expectations from the EE for
Actors Role Expected EE-benefits (Costs, Risks, Resources, Results)
Veyhl -gt WINI B2b supplier of WINI Cost Reduzierung Pufferbestände Cost Reduzierung von Planänderungen (Transaktionskosten) Risk Erhöhung Planungssicherheit Result Erhöhung der Lieferfähigkeit Result höhere Kundenbindung infolge kürzerer Lieferzeiten Result höhere B2B-Kundenzufriedenheit und -bindung infolge höherer Flexibilität Result Realisierung größerer Bestellmengen (Artikel) bei kleineren Abrufmengen (Typen) zur Produktivitätserhöhung in Planung/Steuerung und Produktion
Benteler, Voest, Klöckner -gt Veyhl B2b supplier of Veyhl Cost geringere Transaktionskosten und Lagerhaltungskosten Risk Erhöhung der Lieferqualität (Fähigkeit und Treue) beim Lieferanten trotz erhöhter Flexibilitätsanforderungen Achtung Datensicherheit und Abhängigkeiten (z. B. bei Lieferantenwechsel)
Bansbach -gt Veyhl B2b supplier of Veyhl Cost Lagerhaltungskosten Risk Erhöhung der Lieferqualität (Fähigkeit und Treue) beim Lieferanten trotz erhöhter Flexibilitätsanforderungen Result Entwicklung vom Teile- zum System-/Komponentenlieferant
Aldinger -gt Veyhl B2b supplier of Veyhl RiskErhöhung der Lieferfähigkeit Veyhl durch Lieferfähigkeit des Lieferanten trotz erhöhter Flexibilitätsanforderungen Result geringere Lieferzeiten, höhere Flexibilität Achtung Schaffung der Voraussetzungen auf Seiten IT und Personalressourcen
Schertzinger -gt Veyhl B2b supplier of Veyhl Cost geringere Lagerhaltungskosten Result geringere Lieferzeiten, trotz erhöhter Flexibilitätsanforderungen Achtung Schaffung der Voraussetzungen auf Seiten IT und Personalressourcen
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Methodology Module 2 application
Definition of business objective system
Definition of business objective system
Organisation analysis
Market analysis
Organisation analysis
Market analysis
Extended, collaborative business conception,
design, implementation and operation activities
E-business strategy and roadmap formulation
E-business strategy and roadmap formulation
E-business strategy and roadmap implementation
E-business strategy and roadmap implementation
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Methodology Module 2 OrganisationAnalysis

• Resource based EE situation analysis
• e-business use, practices and potentials based on
  organisational hard und soft facts
• collaborative and clear EE benefit definition
• organisational, technological and human
  e-competences
• EE core competence analysis
• strategic forecasting and early warning analysis
• Definition of organisation related Strengths and
  Weaknesses as basis for e-business strategy
  development within the scope of EE concept
  realisation

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Results of strategic business objective
definition and analysis
Need for realisation of synchronic production
system
Made with System Dynamics software Gamma 2.0 by
UNICON Management Systeme GmbH, Germany
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Strategy for realisation of synchronic
production system objective

• Design of parallel material and information flows
  along the value chain, i.e. intra- and
  inter-enterprise
• Information sharing
• Process integration
• Alignment and integration of organisation
  structures and processes along the value chain
• coordination with and integration of suppliers
• Definition of clear process responsibilities
  along the value chain
• Harmonised and integrated planning and scheduling
  processes with suppliers

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Example for functional business objective
definitions
Legend Status 26.02.04 Amendment 14.04.04
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Example for functional business objective
definitions
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Need for development of competences along the
whole value chain to satisfy market requirements
and create a unique selling position (USP)
RTD
Market requirements
sales
production
delivery
assembly
service
Competence needs
Supplier I
Supplier III
RTD
production
sales
delivery
service
assembly
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Competence definition and assessment in the EE
Identification of value chain competences
consumers
Assessment
EE competences
Forwarding agent
Specialised dealers, resellers
WEB
final producer
Wooden items
1st tier suppliers
35
EE competence assessment and development
strategies for the EE

• Definition of selected EE competence incentives

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Selected EE competence incentives

• Solutions for support of marketing d sales
  activities of specialised dealers and
  implementation of branch standards
• Flexible but efficient sourcing processes in the
  sense of Advanced Planning and Scheduling (APS)
  in all supply tiers
• Horizontal cooperation for realisation of
  synergies in outbound logistics (economy of scale
  in delivery to customer)

37
Organisation Strength and Weakness delivery for
strategy formulation
Organisation analysis
E-business strategy and roadmap formulation
Strengths Weaknesses
WEB
38
Methodology Module 3 application
Definition of business objective system
Definition of business objective system
Organisation analysis
Market analysis
Organisation analysis
Market analysis
Extended, collaborative business conception,
design, implementation and operation activities
E-business strategy and roadmap formulation
E-business strategy and roadmap formulation
E-business strategy and roadmap implementation
E-business strategy and roadmap implementation
39
Methodology Module 3 MarketAnalysis

• market based, general qualitative and
  quantitative EE analysis
• product, market, customer analysis for market
  segmentation
• competitor analysis
• market attractiveness analysis for products and
  strategic business units
• analysis of enterprises relative competitiveness
  with special focus on e-business related issues
• Identification of market related Opportunities
  and Threats as basis for e-business strategy
  development within the scope of EE concept
  realisation

40
German furniture EE test case constellation and
market analysis scope
Vertical Extended Enterprise constellation

• Individual market analyses of enterprises along
  the value chain

Customer

• Common organisational analysis
• Common market analysis
• Common vision
• Common mission
• Corresponding business objectives

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Market Analysis Veyhl

• Competitor definition
• Opportunity and threat definition

• Product/service definition
• Market definition
• Product/Market (PM) definition
• PM specification (Product level)
• PM assessment
• Opportunity and threat definition

• Strength and weakness compared to competitors
• Competitor e-solution
• Opportunity and threat definition

Internet
42
Product-Market-Definition
Subject of further detailed analyses
43
Product-Market attractiveness assessment
44
Competitor-Product definition
45
Assessment of relative competitiveness (e.g.
product B 1)
46
Product-Market attractiveness, competitiveness
positioning and market size
Basis for definition of chances and risks and
development of product, market and competitive
strategies
47
Market Analysis WINI

• Competitor definition
• Opportunity and threat definition

• Product/service definition
• Market definition
• Product/Market (PM) definition
• PM specification (Product level)
• PM assessment
• Opportunity and threat definition

• Strength and weakness compared to competitors
• Competitor e-solution
• Opportunity and threat definition

Internet
48
Example of turnover forecasting with neuronal
network
49
Market Opportunity and Threat delivery for
strategy formulation
consumers
Market analysis
Business strategy and roadmap formulation
Forwarding agent
Opportunities Threats
Specialised dealers, resellers
WEB
final producer
Wooden items
1st tier suppliers
n tier suppliers
50
Methodology Module 4 application
Definition of business objective system
Definition of business objective system
Organisation analysis
Market analysis
Organisation analysis
Market analysis
Extended, collaborative business conception,
design, implementation and operation activities
E-business strategy and roadmap formulation
E-business strategy and roadmap formulation
E-business strategy and roadmap implementation
E-business strategy and roadmap implementation
51
Methodology Module 4 Business strategy and
roadmap formulation

• Synthesis of results from market and resource
  based strategic EE business analyses
• EE business model specification (entities, value
  chain structure, vision, business objectives)
• e-business TOWS-analysis
• e-business strategy formulation (objectives,
  targets, measures, resources)
• e-business strategy assessment and selection
• Roadmap for e-business implementation

52
Tool supported EE business strategy formulation
in the EE
1. EE model formulation
2. e-business strategy formulation
3. e-business strategy assessment
4. e-business roadmap definition
Internet
53
EE business vision definition
Enterprise of the WINI value chain are realising
a pilot implementation of an intelligent
B2B-network along the office furniture supply and
value chain to better serve changing customer
requirements, i.e. higher product flexibility
with regard to products (higher product variety
combines with short delivery times) and
accompanying services (application advise,
customer specific solutions), to guarantee in the
long-term competitiveness with global players in
global markets. Innovative e-business solutions
paired with motivated and qualified employees are
the basement for sustainable economic success.
54
EE e-business strategy and alternative formulation
Relevant basic e-business strategies based on
SWOT for the EE for a certain EE partner, e.g.
Further basic, public made, e-business strategies
based on SWOT of EE partners, e.g.
55
Result roadmaps for e-business implementation in
Extended Enterprise
Organisation Analyser
StrategyBuilder
e-business roadmap
ProjectManager
Content Service Provider
Market Analyser
56
e-business roadmap of EE partner WINI
OFML
e-marketing (internet)
e-commerce
e-marketplace
Content Management
Transport planning (PTV)
Electronic signature
E-logistics (outsourcing)
EE production scheduler
e-SCM (e-operation, e-logistics)
ERP (Baan 4)
EE related e-business ventures
Internal value process automation
Time recording
e-procurement
Automated order payment
Automated order (prototype)
CAD
Product development in EE
supporting e-infrastructure
Product Data Management
Office applications
2004
2007
2005
2006
2008
2009
Commercial Application (operation status)
Legend
Self made Application (implementation status)
Make or buy Application (idea/conception status)
Strategic project wit potential e-business relevan
ce
57
e-business roadmap of EE partner Veyhl
Internet e-marketing
Internet download area
online ordering
e-commerce
CRM
Advanced Planning Scheduling
e-SCM (e-operation, e-logistics)
ERP (IFAX)
EE related e-business ventures
Sourcing on demand
e-procurement
Active directory LAN integration
supporting e-infrastructure
Drawing Management system (Intranet)
Drawing Management system (Internet)
Office applications
2004
2007
2005
2006
2008
2009
Commercial Application (operation status)
Legend
Make or buy Application (idea/conception status)
Self made Application (implementation status)
58
Methodology structure

• Roadmapping approach
• (Reference) process model
• Thematic modules
• Integrated in common business life cycle models
• Supporting components

e-business roadmap
59
Forecast Module 5 e-business requirement analysis

• Development of operational requirement
  specifications
• Collection of functional, behavioural
  informational and capability needs
• Manufacturing
• Service
• Management
• Control
• Design and implementation planning

60
EE process model specificatione.g. Veyhl-WINI
APS process interface
61
Example for operational process requirement
specification with BOM-method
Detailed description of AS-IS process model with
all relevant objects and attributes within the
scope of requirement specification Modelled with
IMS Business Model Designer

• Legend
• Grey process steps WINI
• blue process steps Veyhl
• Green data objects
• Magenta documents
• Orange material

62
EE e-business project planning, monitoring and
controlling
ProjectManager
1. Project creation
3. Project documentation
2. Project monitoring and controlling
Internet
63
Test case summary

• Training and testing of methodological approach,
  methods and software tools in industrial
  environment within the scope of running business
  activities
• Assessment of methodological approach, methods
  and software tools against traditional business
  practices, needs and usability of research work
• Continuous, online requirement specification for
  methodology refinement and software redesign
• Decision basis for collaborative and individual
  partner activities, projects and strategies