Enterprise%20Relationship%20Management

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Enterprise Relationship Management
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We are...

• Bret Anderson
• Mark Aspelin
• Clark Bickley
• Mary K. Broecker

• Mahesh Hotchandani
• Jun Shi
• Dan Taylor
• Xiao Yue

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Agenda

• Project Statement
• Current State of ERM
• Value Proposition
• Implementation Strategy

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Project Statement

• Objective
• Recommend to Dell how to leverage the internet to
  improve strategic relationships
• Project Scope
• Investigate industry best practices
• Determine ERM feasibility and identify
  implementation issues
• Methodology
• Researched publicly available information from
  external sources

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Enterprise Relationship Management

• ERM is the management and development of
  strategic relationships using internet tools and
  technology
• ERM attempts to tighten supplier partnership by
  sharing strategic information
• ERM attempts to launch better products faster by
  providing a medium for companies to collaborate

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Business to Business Internet Use
Communication
Commerce
ERM
Collaboration
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ERM Examples

• Cisco
• Goals of expanding the Internet-enabled supply
  chain to include web-based repositories that
  track the performance of suppliers
• Suppliers that have poor performance on certain
  tasks could lose business
• Marshall Industries
• Extranet lets suppliers and customers access
  backlog, contract pricing, design registration
  and sales info.
• MACRO link uses intranets and data warehousing to
  link engineering, forecasting, production

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ERM Examples (contd)

• Xilinx Posts changes in production specs.
• Snap-On-Tools Check inventory and news groups
• Ryder Non-financial EDI common forms
• Lockheed Meeting minutes, baseline documents,
  contracts and schedules
• IBM Procurement info. and newsletter
• Siemens Manage potential suppliers who want to
  do business

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Whats the Competition Doing?

• IBM, Compaq, HP
• Unprecedented cooperation to squeeze out cost and
  time from channel
• not just channel assembly not just
  re-engineered supply chain but building
  relationships that never existed.
• Rosetta Net
• IT industry standards for supply chain management
  functions over the internet

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What are Dells Suppliers Doing?

• Channel partner info, password protected
• Intel Channel, Toshiba
• EDI and procurement info, password protected
• Micron
• Well-searchable engineering info, user
  customizable
• TI
• Evaluation of 30 suppliers Internet use available
  http//grok.bus.utexas.edu/dptaylor/matrix.asp

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Whats the Value Proposition?

• Effectively manage supplier partnership
• Information sharing
• Collaborative work environment
• Aligned with Dells internet strategy
• Benefit for Dell and suppliers

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(No Transcript)
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Project ROI Analysis

• The need for ROI analysis
• Challenges to traditional ROI analysis
• The intangible approach to ROI
• Alternative approaches
• Other project factors

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Major ROI Components

• Tangible benefits
• Business process operational improvements
• Decreased time to place orders with suppliers
• Increased suppliers handled by each employee
• Decreased cost of supplies

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Major ROI Components

• Intangible benefits
• Better supplier satisfaction
• Increased internal IT skills
• Quick response to supplier preferences
• Support Dells business goals

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Major ROI Components

• Tangible cost/risk
• Increased IT costs
• Internal training costs
• Supplier training and support
• Business process reengineering
• Cost of security measures

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Major ROI Components

• Intangible cost/risk
• Employee resistance to change
• Pointers to competitors
• Supplier resistance to change
• One-upmanship of web features and sites

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Strategy (Vision)
Culture
Technology Processes
ERM
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Implementation

• Consider interdependence of culture, strategy,
  and technology
• Leverage experience
• Solicit support from partners
• Develop a security model for system

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Information Culture

• Internet-enabled ERM challenges Dell's
  information culture
• Information as an asset to be protected vs. as a
  strategic investment
• Building relationships on a need to know basis in
  an information rich environment
• Trust is key to success
• Improve upon current communication channels
• Responsive to supplier needs

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Strategy

• Taking the lead in ERM
• Be crystal clear on how it fits with WWP vision
• customer satisfaction (supplier as customer)
• total value chain efficiency
• balanced and optimized supply chain
• Define ERM space
• Start moving

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Leverage Experience

• Lessons from Dell Online
• Simple good
• Empower the customer with information
• Support the customer with information
• Lessons from BTO strategy
• Build to order to satisfy customers by putting
  together discrete pieces of technology available
  to everyone
• Benefit from work done by others
• Fastest to market with products that meet demand

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Solicit Support From Partners

• Get everyone on board from the outset
• Incorporate suppliers and other users of system
  into development process
• Ensure all users are supportive of initiative
• Develop compelling sales pitch
• Sell suppliers on virtual value web
• Use incentives

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Consider Rollout Plan - Depth vs. Breadth
Depth
Breadth
Pros
Cons
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Technology

• No single off-the-shelf solution for ERM
• Customer driven vs. technology driven
• Make it easy to do business with Dell
• What are right tools for the job?
• Not tied to any single web development tool
• System should be open
• IIS, ASP, SSL already in use on Dell Online
• Database driven

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ERM Technology Providers

• http//grok.bus.utexas.edu/Hotchandani/SAP
• Hundreds of products / services available
• Reviews available in repository
• Enterprise software evaluation
• Internet development tools
• HTML development tools
• Content hosting

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Develop A Security Model

• Where does data reside?
• Consider asymmetrical security interests
• Determine value of data to be protected
• Determine baseline security needed
• Conduct audits
• Restrict access
• Educate employees
• Statement of understanding with partners

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Hurdles

• Dells disparate IT organization
• Supplier buy-in is this what they want and does
  it add value?
• Understand limits of web in building
  relationships
• How is process institutionalized
• What happens when ______ leaves

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So?

• Effective strategic relationship management will
  enable and facilitate tactical collaboration in
  the future

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What might be next?

• Online bidding
• Once transactions with suppliers move to Web,
  incorporate OLAP system
• Web based OLAP front end to DSS once transactions
  move online

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Our Own ExperiencesWith A Virtual Workplace

• Created a web repository that acted as a
  knowledge base for the team and Dell
• Most work still occurred in physical meetings and
  by email
• Dell wanted us to inform them of new additions to
  the repository with an email
• Conclusion People resist change

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Questions

• ?