Agenda

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Agenda

• B2B E-Marketplace
• Reference cases
• Value Proposition of CAPCO Exchange
• Why Com2B

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B2B Back to Basics

• Demand Side
• Corporate use EC in e-engineering and
  re-organization to eliminate inefficiency.
• Outsourcing, ASP Marketplace emerging
• Supply Side
• Only leading B2B companies and sound business
  models will survive.

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The market is huge

• B2B is big
• These solutions will impact 47 trillion in
  global economic activity, 25 of which or 12
  trillion, will flow through third-party
  eMarketplace. (CSFB Research, 2000)
• E-business spending stays strong
• For 87 percent of CIOs, Investments in e-business
  technology will remain steady or increase (AMR
  Research, 2001.1)

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E-Business is Business
E-business has moved from a cutting edge concept
to business mainstream!!
Source Deloitte Consulting
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B2B Steps

• We are in the early stages of a B2B that we see
  unfolding in a series 3 steps
• The ERP bolt-on
• Stand- alone public and private marketplace
• Inter-connected and marketplaces and supply
  chains
• B2B is a multi-year investment cycle that will
  produce step functions of growth and value
  creation over several years

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B2B eMarketplaces Emerging as Critical Element
of B2B eCommerce
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Advantages of Linked eMarketplaces

• Develop complementary value offering and
  capabilities while avoiding the need to build
  overlapping and redundant functions
• Quickly build e-Marketplace membership allowing
  accessing to each other
• Help e-Markets avoid becoming a statistic when a
  time of high burn rate
• One stop shopping

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EC in Chemical Industry

• Most chemical firms remain bullish in their
  technology deployments. About half are planning
  to increase their IT spending this year, and more
  than half plan to implement inventory management,
  supply chain planning and order fulfillment
  applications this year. (AMR 2001)
• E-procurement technology will make up the lion's
  share of B2B technology investments in the coming
  year. (AMR 2001)

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Case Study I Eastman Chemical
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Eastman Chemicals Background

• Founded in 1920 to supply basic photographic
  chemicals for Eastman Kodak Company, Eastman
  Chemical Company became an independent publicly
  traded company in January 1994. Eastman has
  thousands of customers around the world, and 2000
  sales totaled US5.3 billion.
• A global producer of fiber , plastic and chemical
  with over 16,000 employees worldwide and annual
  purchases totaling more than 3 billion
• The first chemical company to offer customers a
  faster, more efficient way to do business through
  e-commerce.

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Challenge

• Implementing a web-based electronic procurement
  application while maintaining interoperability
  with existing SAP ERP System
• Facilitating outbound ordering among approved
  suppliers
• Enabling a cost-effective method to manage
  supplier catalog content

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Benefits

• Reduction of transaction costs and order to
  fulfillment cycle times
• Simplification and expansion of procurement card
  transactions, reduction of manual workload and
  elimination of excess inventory and rogue
  purchasing
• Enhancement of eCommerce strategy for future
  global growth

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• Eastman Chemical Co expects 20 percent of total
  sales in 2000 will be captured online, and the
  company is aiming for 30 percent to 40 percent by
  2002
• Internet week, 2000

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Case II Far Eastern Textile Corp.Textile
on-line Reverse Auction
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FEG Purchasing Center

• Yearly procurement volume NT30 billion, 40
  procurement officers, more than 37,000
  requisitions per year
• More than 900 requisitions per procurement
  officer per year
• Product PVC, Direct Material Construction/
  engineering/
• Computer MRO
• Suppliers 5000

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FEG E-Procurement Plan
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Project Result

• More than 100 reverse auction have been conducted
• More than 50 are Construction project related
• Average Purchasing Cost saving 10
• Very effective tool to drive out market price
• Expanding sourcing base will provide long lasting
  results

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Benefits to Far Eastern

• Online Reverse Auction
• Apply advanced IT technology in procurement
• Pricing transparency improve market efficiency
• Easy to adopt
• Drive out market price effectively
• Provide instant E-commerce benefits

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Customer Experience

• Pre-auction preparations are essential
• End-to-end process flow integration with existing
  procurement flow
• Legacy process and historical burdens need to
  overcome
• Supplier communication and preparation are
  critical to on-line reverse-auction success

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Value Proposition of CAPCO Exchange
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Key Success Factors for eMarketplace

• Mature Technology platform
• Clear Business Case
• Existing Industry Community
• Easy User Adoption

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Proven SAP Technology

• CAPCO Successful Implementation of SAP
• CAPCO exchange based on SAP EBP
  package(Enterprise Buyer Professional)

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Clear Business Case

• CAPCO offers hosted SAP EBP as Marketplace
  platform
• CAPCO also invested initial installation and
  supplier adoptions
• Basic domestic order processing will be free of
  charge
• Leverage participants slow moving part stock to
  reduce turn around time and inventory cost

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Existing Industry Community

• Already won support from companies in ?????
• Major supplier and buyer training will be
  conducted in ??

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Easy User Adoption

• Web base friendly user interface
• No platform investment cost for additional
  participants
• Minimum business process change
• Stream line buyer and supplier communication

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Why Com2B
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Com2B Corp.

• Leading B2B Marketplace Service Provider in
  Greater China Region
• E-Marketplace Enabler by providing industry
  leading platform, business services and solutions

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Core Competence

• Advanced products and technology
• Customized solutions and professional services
• Creating global trading opportunities
• Rich B2B e-commerce implementation experiences

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Com2Bs Shareholders-- Represented 9 Industries

• Value added industry leaders
• Far Eastern Group Telecom, Retail
• Lite-on Group Components
• Walsin Lihwa Group Steel/Cable/Wire
• Yulon Group Automobile
• SESODA Chemical
• ShinKong Group Security
• Systex, Netpacificetc
• Platform Providers
• Compaq Computer
• Commerce One B2B Solution
• WI Harper Venture Capitalish

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Com2Bs role in CAPCO eMarketplace

• Com2B enabled EBP platform in CAPCO
• Com2B provides and executes supplier adoption
• Com2B will work with CAPCO to operate and
  maintain CAPCO eMarketplace

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??!! hmikelee_at_Com2B.com