The Buzz behind the Buzzwords

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Isecon 2000
IT Leaders Rise to the E-Business Challenge
Maryfran Johnson Editor in Chief
Computerworld
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In the new economy, IT has gone from being
about the business to being the business.
Geoffrey Moore, author of The Gorilla Game
Picking Winners in High Technology
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Computerworlds Top 10 for 2000-2001

• B2B E-Commerce
• Career Labor
• Data Management
• Enterprise Data Center Mgt
• Government Policy Legal

• IT Management Leadership
• Security
• Web Infrastructure
• Windows 2000 Server OS
• Wireless Mobile

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IT Leader Challenges

• Transforming traditional business to the
  E-Enterprise
• Racing against dot-com competitors
• Dealing with supply chain integration and B2B
  issues
• Winning the high-tech talent wars

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• Dealing with the Everybodys an ASP now
  phenomenon
• Seeking a balance between privacy protection and
  personalization (aka customer service)
• Leveraging/managing the influx of mobile
  wireless devices

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Before the Net Economy

• Supported employees external users
• Treated business managers as your main
  customers
• Focused on internal organization and processes

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After the Net Economy

• Exposing internal IT assets to support the supply
  chain
• Leading integration and project (change)
  management
• Dealing directly with business units, customers
  and trading partners

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• Fighting the skills gap with selective
  outsourcing/ASPs
• Making project management an enterprise core
  competency
• Evolving from narrow to multi-dimensional roles

Foote Partners, LLC 2000
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CR
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What a Difference a Dot-Com Year Makes

• Focus shifting from Web presence glitz to
  back-end supply chain distribution
• More heavy lifting in connecting the acronyms
  ERP, SFA, CRM
• Venture capitalists looking for long-term
  customer retention strategies

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Three E-Commerce Questions IT Leaders Ask

• What business value do we bring to the table via
  this channel?
• Is the net the right (or the only) channel to
  use?
• Can this project be divided into smaller pieces,
  with faster deliverables?

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We figure if were not failing about 30 of the
time in making our technology choices, were
probably not doing our job.
Paul LeFort, CIO UnitedHealth Group
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Im supposed to be CIO of the worlds largest
company, but I didnt grow up with the Internet.
Ralph Szygenda, CIO General Motors
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This is a car company?

• Becoming a leading provider of Internet-based
  information services
• Driving revenue potential to rival the 176B from
  selling 8.5 million cars and trucks
• Leveraging leading-edge net technologies and big
  presence in consumer and supplier markets

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GM retools for E-Commercethat goes beyond cars...

• Real-time stock quotes
• Talking email messages
• Video games via your dashboard
• Satellite-based radio services
• Online car financing
• Home mortgages

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Lloyds Bank of London

• Spending 24 million on CRM software
• Integrating customer info from all aspects of it
  operations
• Connecting branches, call centers, wireless
  banking, Evolvebank.com

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CRM is probably the single biggest focus for all
banksbecause they see it as their major growth
imperative.
George Barto, Gartner Group analyst, CW, 8/21/00
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Say Hello to E-CRM

• Eclectic mix of data mining, call center
  management, customer profiling software
• Sales force automation, click stream analysis
• Website personalization, email auto responses

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E-CRM calls for consistently updated customer
information, catalog order inventory data on
all sales channels
Peter Keen, consultant business author, CW,
Aug. 2000
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My Kingdom for an E-Marketplace
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B2B E-Marketplace Categories

• Communities (VerticalNet)
• Catalogs (OrderZone.com)
• Procurement Hubs (CommerceOne)
• Auctions (AdAuction.com)
• Exchanges (eLance, Altra Energy)
• Collaboration Hubs (Bidcom)

BusinessWeek, June 5, 2000
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Lotsa Naked Emperors

• Less than 2 of B2B trade took place in online
  markets in 2000
• Some 85-95 of independent B2B exchanges will be
  history by next year (analysts say)
• Fewer than 15 of exchanges today are delivering
  value-added services

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B2B Market Visions

• Now 100 billion overall market (with 7.5
  conducted online)
• By 2004 837 billion market (with 56 conducted
  online)
• E-commerce software market grew 305 last year,
  from 444M to 1.8B, with 250 vendors in play

Source Gartner Group and IDC
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The Boeing Company

• Buys 37B worth of goods annually
• Looks to cut 27 off purchasing costs
• Plans to eventually tie ERP and back-office
  applications to Exostar
• Operates several private exchanges
• Limits number of online suppliers

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General Electric Co.

• Global Exchange Services open to 100,000 trading
  partners
• Expecting tens of millions in transactions
• Hosting entire network
• Promising quicker purchasing, faster turnaround

CW, 8/21/00
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Dell Computer Corp.

• New model marketplace (mall owner)
• Three initial suppliers (3M Corp., Pitney Bowes
  and Motorola)
• Buyers execute online transactions under
  predefined trading rules
• Personalized buying experience for customers

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Future of B2B Hubs?

• Uphill climb to achieve, sustain profits
• Existing big brands will leverage natural
  advantage, greater resources
• Low cost of entry means more competitors
• Uncle Sam keeping close watch

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Its not the Wild West out there. Just because
its online doesnt mean that its that much
different.
FTC Commission Member Mozelle Thompson,
Computerworld.com B2B forum, 9/18/00
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Next Generation B2B

• Trading Exchanges dynamic interlinked webs of
  partners
• Value Networks optimizing supply chain
  relationships
• International Logistics global catch up on
  technology, ports, customs, trade financing,
  distribution.

Peter Keen, CW, 9/11
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• Agents software brokers, bidders and searchers
  act as intermediaries. (Web comes to you.)
• Wireless Logistics The promise of m-commerce
  puts info communication where the business is.
• Real-Time Messaging Components of the logistics
  value chain company channels constantly
  updated.

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EnronOnline

• Growing at 100 a year
• Trading energy plus capacity in broadband, rail
  car shipping and data storage
• Doing more than 1 billion in B2B daily in more
  than 2,000 transactions
• Boosting revenue 10-fold to 40 billion annually

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About 80 of Enron's income this year comes from
businesses that didn't exist 10 years ago
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"IT is crucial to making markets. We couldn't do
what we do without massive amounts of computing
power. Jeff Skilling, president of Enron
Corp. in Houston, which has traded more than
120 billion in energy at EnronOnline this
year
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E-commerce winners have all three IT
management, customer relationships and a profit
structure.
Business author Peter Keen, CW, 6/14/99
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The Media Guide to Whos Running This Country,
Anyway?

• The Wall Street Journal is read by the people
  who run the country.
• The New York Times is read by people who think
  they run the country.
• The Washington Post is read by people who think
  they ought to run the country.

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• USA Today is read by people who think they
  ought to run the country but don't understand the
  Washington Post.
• The Philadelphia Inquirer is read by people
  whose parents used to run the country.
• The New York Post is read by people who don't
  care who's running the country, as long as they
  do something scandalous.

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• The San Francisco Chronicle is read by people
  who aren't sure there is a country, or that
  anyone is running it.
• The Miami Herald is read by people who are
  running another country.
• Computerworld is read by people who can bring
  any of these countries to their knees with a
  little time in the data center and a few code
  modifications

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