Kein Folientitel

1
Roleplay Project
e-Market PlacemySAP

• Class E- Commerce
• Professor Lee,Jae kyu
• Term 2001. 9 12
• KGSM in KAIST

• HiFive (No.5)
• Cho Dae Hwan
• Jung Gwang Chae
• Yang Se Rim

2
CONTENTS

• Industry Analysis

• SAP and Commerce One

• Competitor i2 IBMAriba

• Comparison

• Recommendations

3
Industry Analysis Typology

• Specialist vendors
• Focus on e-marketplace solutions
• also provide other related e-commerce solutions.
  
• Ariba, Commerce One, Intelisys, Exterprise, Moai
• ERP and CRM vendors
• SAP (SAPMarkets C1)
• Oracle, Remedy
• PeopleSoft(with C1), JD Edwards(with Ariba,I2)
• Best-of-breed business applications vendors
• SCM(i2), Document management(Tramnit)
• Infrastructure and service vendors
• IBM Works with Ariba and i2

4
Industry Analysis Crisis
Revenue of marketplaces in Korea, 2000

• Worldwide
• Only 24 of marketplaces will
• survive till 2003 worldwide.
• - Forrester Research
• About 10 of new marketplace was
• closed or merged during 4months
• - Deloitte Consulting
• Repeated customer is less than
• 10 of total participants
• Korea
• 44 of Total marketplaces was
• no revenue in 2000
• Only 19 company( 11) has more
• than 5 Bil won revenue.

5
Industry Analysis Future( Private MP)

• Public marketplaces have difficulties.
• Limit in collaboration in public market due to no
  trusts.
• Limit in Saving transaction cost (510)
• difficult to do cooperative buying.
• High cost to integrate each internal system
  rather than cost saving.
• Less relationship
• Need 35 year for collaboration services.

Source SAPMarkets research
6
SAP group
SAP mySAP
SAP SAPMarket
Commerce One
Solution Market set
7
SAP

• Company

• SAP is the world's third-largest independent
  software supplier overall
• SAP employs over 27,800 people in more than 50
  countries,
• 29 Years in the Business of E-Business
• 10 Million Users. 36,000 Installations. 1,000
  Partners. 21 Industry Solutions.

• History

• 1972 SAP is founded
• 1992 SAP R/3 solutions launched
• 1996 SAP R/3 Release 3.1 is Internet-enabled
• 1996 Company launches new solutions for CRM and
  SCM SAP begins
• developing industry- specific solutions
• 1999 SAP delivers mySAP.com
• 2000 SAP forms strategic alliance with Commerce
  One to create SAPMarkets,
• 2001 SAP acquires Top Tier and forms SAP Portals

8
mySAP

• Solutions

• mySAP Financials
• mySAP Human Resources
• mySAP Mobile Business
• mySAP Marketplace by SAPMarkets
• mySAP Hosted Solutions
• mySAP Technology

• Industry Solutions
• mySAP Enterprise Portals
• mySAP Supply Chain Mgmt.
• mySAP Customer Relationship Mgmt.
• mySAP E-Procurement
• mySAP Product Lifecycle Mgmt.
• mySAP Business Intelligence

9
SAP

• Stock Price NYSE

10
SAPMarkets

• History

• SAP AG spin-off
• Headquarters in Palo Alto, California
• Announced March 15, 2000
• Opened for business in May, 2000
• Employees 200 initially,
• SAP to retain majority control of SAPMarkets

• Solutions

• SAPMarkets INTERNET SALES
• MarketSet TM 2.0 (joint solution with C1)
• ENTERPRISE BUYER TM 2.0(joint solution with C1)

11
SAPMarkets Additional Materials

• Overseas Outcomes

• Japan e-Market 2001. 7. 5
• - Japan Unisys , Utility Market place
• - Machine and materials, MRO Goods
• Shell
• - 2001. 6. 13
• - e-procurement
• - Trade-Ranger

• Domestic Outcomes

• SK Telecom
• Now many SAP site is considering to implement
  Marketset solution

• Possibility of co-working with Korean solutions

• 1st Step SAP try to integrate SAP ERP
  Solutions (20012002 first)
• 2nd Step SAP will expand integration with
  Korean other applications

12
Commerce one(1/2)
Company Overview

• Brief history
• 1994 DistriVision Lauched
• 1997 Commerce One Changed
• 1999. 6 IPO
• 2000.6 SAP AG investment 250M(23)

• Business Model
• Software license fees - enterprise and ASP
  software licenses with SAP
• Global services consulting, maintenance,
  application hosting
• Transactions and subscriptions fees from
  e-marketplace activity

• Financial data
• Sales growth rates 291 (5 years)
• Revenue 352M (2001.19)
• 402M(2000)
• Net loss 344M (2000)
• Employee 3,766

13
Commerce one (2/2)
Marketsite Portal
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SAP Markets Commerce One

• Integrated Scale
• SAP Leader in e-biz applications
• CommerceOne Leader in e-biz marketplace
  technology
• Have established 17 co-development teams
• Joint Developers Commerce One (1,800) SAP
  Markets (1,100 )
• SAP AG. e-commerce sales and professional
  service (1,000)
• Power 75 percent of the worldwide
  e-marketplaces.

• Business Strategy
• Joint engineering, marketing, sales, solution
• One single, joint solution offering since
  September 2000
• Smooth transition for existing SAPMarkets and
  CommerceOne
• marketplace customers

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SAP Markets Commerce One

• Integrated Solution Marketset

• SAPMarket
• supply chain management
• Internet sales
• analytics and reporting
• product lifecycle management
• CRM will be included
• Commerce One
• Messaging
• xCBL
• content management
• auctions.

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MarketSet Component Architecture
Buyer
Seller
MarketSet
On
-
Ramps
On
-
Ramps
MarketSet Builder
Browser
Browser
SAP Internet Sales /
Enterprise Buyer
MarketSet
Services Framework
SAP Customer
Desktop / Professional
Relationship Mgmt
SAP Materials
MarketSet
MarketSet
MarketSet
SAP Online Store /
Management /
Dynamic
Order
Procurement
SAP Sales
Pricing
Management
SAP Financials /
Distribution /
SAP Document
SAP Financials /
Mgmt System
MarketSet
MarketSet
MarketSet
xCBL
SAP Document
xCBL
Life
-
Cycle
Supply Chain
Catalog
Mgmt System
Collaboration
Collaboration
SAP Advanced
Planner Optimizer
SAP Advanced
MarketSet
MarketSet
(further to
Planner Optimizer
Bulletin
Analytics
come.)
3rd Party
Board
Components
3rd Party
Oracle, PeopleSoft,
Components
i2, Ariba, etc.
Oracle, PeopleSoft,
MarketSet
MarketSet
MarketSet Platform
i2, Ariba, etc.
Connector
Connector
Marketplaces
Transport
Export/Import
Financial
Marketplaces
SAP, GTW,
Service
Service
Service
SAP, GTW,
dotcoms, etc.
Provider
Provider
Provider
dotcoms, etc.
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MarketSet Infrastructure(1/3)
MarketSet Builder

• Front-facing marketplace experience
• User interface builder for HTML and mobile
  services
• Based on Jetspeed rendering engine
• HTML input as well as XML
• Can show mySAP.com mini-apps
• Personalization features
• Community features and service
• Help market makers create a community
• Templates
• System for user/policy management
• Role-based and user-based personalization
• Methods for trading partner registration user
  login

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MarketSet Infrastructure(2/3)
MarketSet Services Framework

• Rapid integration of services
• Pre-packaged components for seamless integration
  of bundled, premium and third-party services
• Software tools, APIs, documentation, and
  methodologies for integrating services
• Documented in Business Service Framework (BSF)
  Cookbook
• Native support for xCBL
• xCBL XML Common Business Library -gt
  http//www.xcbl.org/
• Document framework for robust XML exchange

19
MarketSet Platform
MarketSet Infrastructure(3/3)

• Security
• Marketplace security
• Secure document message routing
• SAP Trust Center services integration
• Connectivity
• Establish xCBL communication points for trading
  partners
• Integration of SAP applications via MarketConnect
  integration module in the SAP Business Connector
• EDI gateway with integration to service provider
  GXS for EDI transaction services and supplier
  integration
• RosettaNet gateway support
• Management
• Administration console
• Marketplace management
• Performance tuning

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MarketSet EnterpriseBuyer Architecture
lt Share data with suppliers via e-marketplace gt
Status Overview
Contract
Planning
Demand
Receive
Invoice
Payment
Source / Purchase
Catalog
Inventory
Auction
Tender
Desktop and Professional
Professional
21
IBM group
IBM WebSphere
Ariba
I2
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IBM WebSphere Commerce Suite
23
IBM Ariba i2
Ariba Commerce Services Network (ACSN)
Ariba Dynamic Trade
supply chain management expertise
Ariba Buyer
Ariba Sourcing
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IBM WebSphere Commerce Suite
Strategic Alliance
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Ariba Overview (1/3)
Company Overview

• Brief history
• Founded in September 1996, CA Development
  stage (1996.8. 1997.3)
• Began selling products, services in the U.S.,
  Europe, Canada, Australia, Asia(1997.3)
• Over 1,100 Employees world wide (2000.4)
• Acquisition
• 1999. Trading Dynamics( B2B Internet
  trading),TRADEX Technologies( Net Markets)

• Business Model
• Software Licensing, Transaction Fees Buying
  Selling, Auction-Driven Commission
• Advertising fees, Contents Subscription
• United States, Latin America, Europe, Canada,
  Asia and Asia Pacific

• Financial data
• Revenue 273.5M (2001.19)
• 279M(2000)
• Net loss 317.1 million(2000)
• Employee 1,394(6/31,2001 700 Lay-off)

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Ariba Overview (2/3)
B2B Solution MAP
Ariba B2B Commerce Applications
Ariba Buyer
Ariba Sourcing
Ariba MarketPlace
Ariba Dynamic Trade
Ariba Commerce Service Network
Logistics Fulfillment
Supplier Content Services
FinancialServices
Sourcing Liquidation
Transaction Routing
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Ariba Overview (3/3)
Ariba Marketplace Framework
Ariba Marketplace
Collaboration Extention
Ariba Dynamic Trade
Logistics
Product design
Supply chain Planning
Fullfillment
Auction
Reverse Auction
Bid/Ask
Negotiation
Travel Authorization
Commerce Process FrameWork
Workflow
Catalog Search
Requisition
Order
Ship Track
Billing
Payment
Administration ManagementReporting Analysis
Marketplace Administration
Member Management
Relationship Management
Revenue Models
Biling Management
Catalog Administration
Network Application Architecture
Application Architecture
User Interface Services
Transaction Routing
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i2 Overview
Company Overview

• Brief history
• Founded in 1988 by Sanjiv Sidhu IPO April
  1996
• Acquisition
• 2001.3. Rightworks Corporation - procurement
  across multiple enterprises
• Over 1,000 global customers in a wide variety of
  industries

• Business Area
• Fulfillment / Finance SCM Exchanges
• E-Business and Marketplace Solutions

• Financial data
• Revenue 791.7M (2001.19)
• 6 rise from 2000
• Net loss 7.16 billion(2001)
• 1.02 billion(2000)

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Comparison
30
Alliances
31
Comparison
Morgan Stanley 2000
32
Comparison between Solution Providers
33
SAP Group SWOT Analysis
External Environment
Internal Environment

• Strongly Integrated Partners(Equity)
• Flexible Interface within Solutions
• Higher Sales Possibility ( SAP sites)
• Open to all (x-CBL)
• Content Management in Catalog

• Restructuring in Providers
• Additional Business Opportunity
• ( Entry in Middleware Market SAP)
• Major Trend to XML

O
S
T
W

• SAP oriented Images
• (Negative at Other ERP customer)
• On going Integrated solution(CRM)
• Confused at 2 Companies (SAP or C1)

• Economic Depression
• Security in data Transaction
• Perfect Competition Market
• (Too many e-commerce Solution)

34
Recommendations
35
SAP Group Recommendations(1/2)

• Using Market Opportunities
• More aggressive M A with Industry leading s/w
  vendors
• Strategic Alliance with H/W DB vendors (HP, Sun,
  SQLServer)
• Enforce functions of M-Commerce and T-Commerce
• Diversify Middleware Solution in integrating
  with ERP
• Maximizing Strength
• Long-term Lock-in Strategy
• Transaction Analysis Service (Data Warehousing)
• Time to Market Strategy responded speedily on
  Customer Needs
• Making Industry Standardization (E-Commerce)
• Share Intellectual Property than just
  co-developing
• Cross-Training and Support

36
SAP Group Recommendations

• Overcome the Threats
• Limited Liability Contracts with Customers in
  servicing Marketplace
• Managing Priority to current Customers Sales for
  Keeping Relationship ,
• Because Making New customers is more difficult
  in depression
• Replenish the Weakness
• As soon as possible, Full function Solution
  including CRM
• Integrated Single Business Channel for
  Marketing Co-products
• Versioning Price (SME light price, Replace
  Market Low Margin Price)
• More focusing on Private MARKETPLACE
• Value Proposition for Customer Oriented
  Marketplace
• Strength in Securities and Privacy
• Easiness in Integration and Relationship

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Implications for Korean Marketplace

• Overcome or Adapt to the Business culture
• Chaebol companies
• Difficult to consolidate inter-chaebol companies
  (competition, secret)
• Implementation individually MP according to
  each Chaebol
• SME
• Weak infrastructure on ERP system (lack of
  investment)
• Group by each industry and Make a Industrial
  Marketplace
• Transaction transparency
• Reason Black Market mechanism
• Solution TAX reduction policy on MP business
  transactions
• Automatic business transaction
  monitoring system

• Solution for Korean Marketplace
• Develop own solution to solve Korean industries
  problem by bench-
• marking the solutions(CommerOne,Ariba)
• Government Support for Software industries

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THANK YOU !