Post on 25-Dec-2015
transcript
META GroupMETA Group
Commerce Chain Management
Kip MartinKip Martin
Program DirectorProgram Director
Electronic Business StrategiesElectronic Business Strategies
Kip MartinKip Martin
Program DirectorProgram Director
Electronic Business StrategiesElectronic Business Strategies
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com2
eBusiness “Marketplace”eBusiness “Marketplace”
Sell Side/DemandDis
tributo
r
Resel
ler
Busines
s
Cust.
Consum
er
Cust.
Asera, Comergent,
Webridge, Allegis,
Channelwave
Open Market, Intershop,
Interworld, Blue Martini,
Websphere Commerce,
Broadvision, ATG, etc.
NetMarket
Suppliers Buyers
electroneconomy, Casbah,
Tradex, EC Cubed, Ventro,
TradeMatrix, Exterprise, Tradeum,
Intelligent Digital, aatlas, etc.Ventro, e-Steel, Altra, Azurix,
e-Chemicals, TradeOut,
MyAircraft, C1 MarketSite,
Fishmonger.com, Zoho, etc.
Priceline, eBay, CarPoint,
DemandLine, YouDecide
Commerce Chain/Collaborationi2, SAP, Oracle, Manugistics, Logility, Nexprise, PTC, MatrixOne, IPNet, EQOS, STC, Viacore, Cyclone, etc.
G2000Org
Buy Side/SupplierCom
modity
MRO
Direct
PSDI/MRO.com, Remedy,
Peregrine, Indus, etc.
CommerceOne, Ariba, Baan, SAP, Oracle, Walker
Works.com, Intelisys,
Elcom, Infobank, etc.
Partn
er
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com3
What Are the ebusiness Pressures?What Are the ebusiness Pressures?
What are the critical skillsets required to deliver effective EB solutions? What role should external parties play? How should EB initiatives be managed?
What are the critical skillsets required to deliver effective EB solutions? What role should external parties play? How should EB initiatives be managed?
EB Team
Corp. Mgmt. Demands Revenue vs. efficiency ROI??? Time to market
Staffing/Personnel Challenges Constrained talent pool Retraining/re-skilling required Technical skills far outweigh
sales/marketing skills
Technology Challenges New business/application functionality Tools are not mature “Legacy” service levels must be maintained
LOB/Constituency Demands Evolving user requirements Greater accountability/scrutiny Financial clout
OutsourcingInsourcing Sourcing Options
Partner/Customer Demands Collaboration Design requirements Supply requirements
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com4
How Do I Determine eBusiness Effort Value?How Do I Determine eBusiness Effort Value?
Construct potential scenario(s) from identified opportunities & threats
Derive “value case(s)” for each scenario
For each value case, develop an associated tactical plan
Highly iterative process
Construct potential scenario(s) from identified opportunities & threats
Derive “value case(s)” for each scenario
For each value case, develop an associated tactical plan
Highly iterative process
Breadth of potential scenarios is dependent on available digital weapons and IT’s capacity to deliver
Breadth of potential scenarios is dependent on available digital weapons and IT’s capacity to deliver
Derive Scenarios for Every E-Opportunity Derive Scenarios for Every E-Opportunity
Environment Environment IntelligenceIntelligence
Targets Targets of Valueof Value
Digital Digital WeaponsWeapons
Threat Threat AssessmentAssessment
PartnersPartners
REAL-TIME OPPORTUNITY IDENTIFICATION
ContinuousReassessment Continuous
Reassessment
Value Case(s)Value Case(s)
Scenario(s)Scenario(s)
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com5
Innovation PortfolioInnovation Portfolio
Tactical plans created for each e-opportunity value case
Each tactical planning exercise includes: Course(s) of action Limiting-factors analysis Time-phased planning
Goal is speed in decision making amid incomplete information
Tactical plans created for each e-opportunity value case
Each tactical planning exercise includes: Course(s) of action Limiting-factors analysis Time-phased planning
Goal is speed in decision making amid incomplete information
Process is similar to military crisis action planning, but outcome is an innovation portfolio for the enterprise
Process is similar to military crisis action planning, but outcome is an innovation portfolio for the enterprise
Creation of Innovation Portfolio of E-OpportunitiesCreation of Innovation Portfolio of E-Opportunities
Value Case(s)Value Case(s)
Scenario(s)Scenario(s)
Tactical Planning
Course(s) of ActionCourse(s) of Action
Limiting-Factors AnalysisLimiting-Factors Analysis
Time-Phased PlanningTime-Phased Planning
Innovation PotfolioInnovation Potfolio
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com6
How Do I Organize for ebusiness?How Do I Organize for ebusiness?
CEO/
Board
EB Chief
Other LOBs IT
Influence
Influence
CIO, CTO,CFO, CCO, etc.
Influence
Sales, Service,Marketing
Influence
Supply Chain Management
Influence
Influence
PartnersCustomers
InfluenceProduct
Development
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com7
The eb-enabled IT organization must be business aligned; leveraged internally and externally
The eb-enabled IT organization must be business aligned; leveraged internally and externally
Center of ExcellenceEB Steering Committee
IT/LOB TeamsIT EB Group(?)
LOB Cross-Functional Business Processes
BusinessPartners
Customers
IT Services(Insourced/Outsourced)
Process Teams
Vendors/Service Providers
EB Chief
E-organization ComponentsE-organization Components
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com8
How Important is Content to ebusiness? How Important is Content to ebusiness?
All forms of e-business require the integration of commerce and content (technologies and processes) to succeed
All forms of e-business require the integration of commerce and content (technologies and processes) to succeed
Community Services
Collection
Approval
ContentContent
CommerceCommerceCollaborateCollaborate
Intranet/
Portals
KM
Personalization
DocumentManagement
B2B
B2E
B2C
Product Info
Search
Integration
Catalog
Sharing
Analytics
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com9
What Comprises a Corp.com Strategy?
Co
nte
nt
Ca
ch
e o
rC
on
ten
t C
ac
he
or
Kn
ow
led
ge
Co
nta
ine
rK
no
wle
dg
e C
on
tain
er
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Ap
plic
atio
nA
pp
licat
ion
Security, EAI, Content Mgt., Inter-Enterprise Integration, Personalization
Corp.com InterfaceCorp.com Interface
FirewallFirewall
CustomersCustomers Job SeekersJob Seekers MediaMediaInvestorsInvestorsSuppliersSuppliers
Em
plo
yees
Em
plo
yees
By 2002, organizations will be required to provide a singular view of the corporation across all stakeholders, or risk significant mind/market share loss
By 2002, organizations will be required to provide a singular view of the corporation across all stakeholders, or risk significant mind/market share loss
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com10
What Are Key ebusiness Technologies?What Are Key ebusiness Technologies? Integration
Collaboration
Analytics
Process optimization
Personalization
Supply Chain Mgt.
Content Management
Security
Services
Infrastructure and ops flexibility
Integration
Collaboration
Analytics
Process optimization
Personalization
Supply Chain Mgt.
Content Management
Security
Services
Infrastructure and ops flexibility
End-to-end (“straight through,” life cycle, etc.) functionality will differentiate leaders from followers
End-to-end (“straight through,” life cycle, etc.) functionality will differentiate leaders from followers
E-Business EvolutionE-Business EvolutionE-Business EvolutionE-Business Evolution
PartnerPartnerCollabCollab
EngineEngine
Acknowledgment
PartnerPartner
Invoices, ASNs, EFT
Phase I:Transaction Automation
Shared Data (EDI)Shared Data (EDI)
PartnerPartner
Cash Management, Underwriting, Etc.
Statement Detail, 401(k) Self-Service, Etc.Phase II:Shared
Operating Data
Shared Access (Web)Shared Access (Web)
PartnerPartnerPhase III:
Collaboration
Constraints, Risk, Value
Business Plans, Purchase Histories/Analytics, Research
Shared Process (XML)Shared Process (XML)
Electronic Process Integration (EPI)
CollabCollab
EngineEngine
PartnerPartner
PartnerPartner
PartnerPartnerCollabCollab
EngineEngine
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com11
What Comprises Sell-Side Commerce?What Comprises Sell-Side Commerce? Managing channels
Understanding demand
Enabling customers to buy
Leveraging “in place” infrastructure
Integrating best-of-breeds
Product/service lifecycle mgt.
Appointing service provider(s)
Time to volume
Integrated CRM, logistics
Managing channels
Understanding demand
Enabling customers to buy
Leveraging “in place” infrastructure
Integrating best-of-breeds
Product/service lifecycle mgt.
Appointing service provider(s)
Time to volume
Integrated CRM, logistics
As sale of goods becomes frictionless, appropriate channel strategies and experiences must be created
As sale of goods becomes frictionless, appropriate channel strategies and experiences must be created
How Effective Is the Backbone?How Effective Is the Backbone?
Sell Maturity Model
Ph
as
es
Relationships
Tasks
Re
su
lts
Web to Order Management (OM)Web to Order Management (OM)
Web OM integrates with ATP & CTPWeb OM integrates with ATP & CTP
Integrates OM w/Partner Avail.Integrates OM w/Partner Avail.
X-Enterprise X-Enterprise Mfg. FloorMfg. Floor
ValueChain
Optimization
ValueChain
Optimization
Opti-mizeOpti-mize
Exter-nalizeExter-nalize
Inte-grateInte-grate
SellSell
Sto
refr
on
tS
tore
fro
nt
Man
ufa
ctu
rin
gM
anu
fact
uri
ng
Inte
gra
tio
nIn
teg
rati
on
Ch
ann
el
Ch
ann
el
Inte
gra
tio
nIn
teg
rati
on
Su
pp
lier
Su
pp
lier
Inte
gra
tio
nIn
teg
rati
on
11
22
33
44
Intra-Enterprise IntegrationIntra-Enterprise Integration
Inter-Enterprise IntegrationInter-Enterprise Integration
Electro
nic B
on
dE
lectron
ic Bo
nd
with
Cu
stom
ers/w
ith C
usto
mers/
Partn
ersP
artners
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com12
Sell-Side ArchitectureSell-Side Architecture Leverage in-place
infrastructure and applications when possible
Enable catalogs, configurations, processes, prices — content — to change dynamically
Integrate applications and data to present a personalized experience
Leverage in-place infrastructure and applications when possible
Enable catalogs, configurations, processes, prices — content — to change dynamically
Integrate applications and data to present a personalized experience
Sell-side initiatives must integrate commerce, content, and CRM with existing back-office app operational data
Sell-side initiatives must integrate commerce, content, and CRM with existing back-office app operational data
Outside In vs. Inside OutOutside In vs. Inside Out
AppApp
ServerServer
Database Database & Business & Business
LogicLogic
Traditional C/STraditional C/S
Web Web
BrowserBrowserWeb Web
BrowserBrowser
AppApp
ServerServer
Leveraging the ERP WebLeveraging the ERP Web
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com13
What Comprises Buy-Side Commerce?What Comprises Buy-Side Commerce?
Understanding types of procurement
Indirect Direct
Managing suppliers and components
Participating in marketplaces (suppliers and buyers)
Understanding types of procurement
Indirect Direct
Managing suppliers and components
Participating in marketplaces (suppliers and buyers)
Organizations must drive procurement efficiencies, but determine requirements and return prior to investment
Organizations must drive procurement efficiencies, but determine requirements and return prior to investment
Procurement FuturesProcurement Futures
Com-Com-moditymodity
Integrated Integrated
ProcurementProcurement
Networks & Markets
GlobalProcurement
LOBProcurement
CorporateProcurement
<1995 1999-2001 2000-02
Home-Grown
Multi-ChannelVendorsSingle-
ChannelVendors
Multi-Channel/
Multi-MarketVendors
Indirect Indirect &&
DirectDirect
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com14
Procurement PoliticsProcurement Politics Focus on internal costs
and processes for commodity procurement
Focus on asset management/maintenance for MRO procurement
Focus on SC efficiency and product management for direct procurement
Tactics first, then strategy Integrated procurement by
2001
Focus on internal costs and processes for commodity procurement
Focus on asset management/maintenance for MRO procurement
Focus on SC efficiency and product management for direct procurement
Tactics first, then strategy Integrated procurement by
2001
E-procurement success in 2000 means focusing on one/more processes and applying solutions
E-procurement success in 2000 means focusing on one/more processes and applying solutions
No Wonder It’s So Difficult . . .No Wonder It’s So Difficult . . .
New Product New Product DevelopmentDevelopment ManufacturingManufacturing
LogisticsLogisticsCustomerCustomer
ManagementManagement
AssetAsset
ManagementManagement
FinancialFinancial
MaintenanceRepair
Operations
SourcingDesign
Production Maintenance Execution
Quality Accounts PayableAccounts ReceivableGeneral Ledger
Customer
Self-Service
Customer ServiceField ServiceProduct Config
PurchasingDistributionInventory
SupplyChainPlanning
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com15
Direct Procurement: More Bang for the Buck? Direct Procurement: More Bang for the Buck?
Focus direct procurement efforts on:
Supplier management Component
rationalization Integration with product
life cycle Supply chain visibility
Focus direct procurement efforts on:
Supplier management Component
rationalization Integration with product
life cycle Supply chain visibility
Integrate product development/life cycle and procurement solutions; increase quality/decrease time to market
Integrate product development/life cycle and procurement solutions; increase quality/decrease time to market
Direct Procurement Excellence Solves . . . Direct Procurement Excellence Solves . . .
Part/supplier proliferation
Part/supplier proliferation
Manual processes/spreadsheets
Manual processes/spreadsheets
Little reuse ofstandard partsLittle reuse ofstandard parts
Long designcycle times
Long designcycle times
Rampant ECOsRampant ECOs
Cost overrunsCost overruns
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com16
What Are Characteristics of Net Markets?What Are Characteristics of Net Markets? Equity investment
Regulation
Finance
Staffing
Globalization
Channel “mastery”
Channel/customer relationship management
Co-opetition
Equity investment
Regulation
Finance
Staffing
Globalization
Channel “mastery”
Channel/customer relationship management
Co-opetition
A robust net market replicates an organization’s entire business model…only much faster and more often
A robust net market replicates an organization’s entire business model…only much faster and more often
Trusted Intermediary Components/ServicesTrusted Intermediary Components/Services
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com17
Why Net Markets Are CriticalWhy Net Markets Are Critical Matchmaking
Reduce friction between suppliers and buyers
Add value to complex processes
Decrease cost of commodity products/services
Extend reach to unserved markets
But don’t expect huge revenues all the time
Matchmaking
Reduce friction between suppliers and buyers
Add value to complex processes
Decrease cost of commodity products/services
Extend reach to unserved markets
But don’t expect huge revenues all the time
Significant investment must go only to Net Markets that optimize industry processes and focus on buyers
Significant investment must go only to Net Markets that optimize industry processes and focus on buyers
All Net Markets Are Not Created EqualAll Net Markets Are Not Created Equal
Net Market Maturity Model
Ph
as
es
Relationships
Tasks
Re
su
lts
Product categories, text, e-mail communicationsProduct categories, text, e-mail communications
Better links to suppliers, fulfillment; Better links to suppliers, fulfillment; transactionstransactions
Buyer-market-supplier integration,Buyer-market-supplier integration,mostly comms/transmostly comms/trans
EPI for market/industryEPI for market/industry
CommerceChain
Optimization
CommerceChain
Optimization
E-HubE-
Hub
E-Market
E-Market
E-MailE-Mail
E-Classifieds
E-Classifieds
Ad
ve
rtis
me
nt/
Lis
tin
gA
dv
ert
ism
en
t/L
isti
ng
Cat
alo
gs,
pri
ce h
isto
ry,
Cat
alo
gs,
pri
ce h
isto
ry,
in-d
epth
pro
du
ct i
nfo
,in
-dep
th p
rod
uct
in
fo,
lin
ks t
o f
ulf
illm
ent,
off
lin
eli
nks
to
fu
lfil
lmen
t, o
ffli
ne
tran
sact
ion
str
ansa
ctio
ns
On
lin
e tr
ansa
ctio
ns,
On
lin
e tr
ansa
ctio
ns,
inte
gra
ted
fu
lfil
lmen
tin
teg
rate
d f
ulf
illm
ent
Bu
yer-
to-s
up
plie
rB
uye
r-to
-su
pp
lier
inte
gra
tio
n v
iain
teg
rati
on
via
hu
b s
ervi
ces
hu
b s
ervi
ces
Intra-Enterprise IntegrationIntra-Enterprise Integration
Inter-Enterprise IntegrationInter-Enterprise Integration
En
d-to
-en
dE
nd
-to-e
nd
ele
ctron
ic b
on
d/
ele
ctron
ic b
on
d/
pro
ce
ss in
teg
ratio
np
roc
es
s inte
gra
tion
Consolidator Model ChangeConsolidator Model Change
44
33
22
11
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com18
Net Market-tectureNet Market-tecture ERP vs. best-of-breed backbones
Application integration/middleware
Inter-enterprise integration
Websourcing providers
Operations sourcing
Collaboration
Transaction/order management
Billing
Catalog content management
Content management and personalization
ERP vs. best-of-breed backbones
Application integration/middleware
Inter-enterprise integration
Websourcing providers
Operations sourcing
Collaboration
Transaction/order management
Billing
Catalog content management
Content management and personalization
Rapid deployment and flexibility win; sourcing and operations are critical components
Rapid deployment and flexibility win; sourcing and operations are critical components
3-Month vs. 2-Year Deployment 3-Month vs. 2-Year Deployment
Transport, Security/SSO, Availability,
Uptime, Application Mgt., etc.Operations
Financials, HR
Database
Transaction/Brokerage
Middleware
Billing
Order Mgt.
Buyer Process Integration
Assessment
Supply Chain/Logistics
Messaging Analytics
Auction Catalog/Content Workflow
Reporting
Financial Services
Contract/Channel/Customer Mgt.
Value Added
Services
Net Market
Services
Infrastructure
Portal Services
© 2000 META Group Inc., Stamford, CT, (203) 973-6700, metagroup.com19
SummarySummary
Commerce Chain Management: Bottom LineCommerce Chain Management: Bottom Line
Integrate partners, customers, content, and commerce to drive sell-side success
Pursue buy-side commerce tactically, but evolve toward integrated strategy
Sell side commerce equals integration, CRM, and the “other CRM.”
Participate in Net markets to drive revenue, create efficiencies, and/or maintain relationships
Understand that the e-business end game is a sum of all the parts
Integrate partners, customers, content, and commerce to drive sell-side success
Pursue buy-side commerce tactically, but evolve toward integrated strategy
Sell side commerce equals integration, CRM, and the “other CRM.”
Participate in Net markets to drive revenue, create efficiencies, and/or maintain relationships
Understand that the e-business end game is a sum of all the parts