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IDS Scheer AG-1 03/99 Ho Nai Choon President IDS-Gintic Pte Ltd Email: [email protected] E-Business and the Networked Economy
IDS Scheer AG-1 03/99
Ho Nai ChoonPresident
IDS-Gintic Pte Ltd
Email: [email protected]
E-Business and the Networked Economy
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Agenda
Introduction to E-Business
Organizational Trends
New concept of ECM: Enterprise Commerce Management
The needs for standardisation
Examples of successful implementation
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Introduction to
eBusiness
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E-Business ?
Conducting Core Business Processes on
Internet
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The new network economy will be driven by 3 forces --
Connectivity, Speed and the Growth of Intangible Values.
“ Blur : the speed of change in the connected economy “
by Stan Davis and Christopher Meyer
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Organizational Trends
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Two Major Trends in Organizations
Networked Organization
Learning Organization
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Networked Organization
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Learning Organization ( Virtual Corporate University)
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The new concept of ECM :
Enterprise Commerce Management
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ECM is the blueprint
for the next generation of corporate systems:
ECM provides the model for the next generation of business systems,
comprising process-oriented applications and services tied together
by the Internet to support intercompany commerce.
-AMR Research
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By 2005, AMR Research believes that ERP, as we know it today,
will be completely transformed. This trend is already underway:
Supply Chain Planning (SCP) applications are replacing the Enterprise Resource Planning (ERP) function.
E-procurement and strategic sourcing applications are gnawing away at the purchasing functions.
CRM has obliterated ERP’s rudimentary customer service functionality.
Web-based order management applications are moving from simple self-service capability to full-fledged order fulfillment systems, replacing ERP order entry.
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The different business partners and their business processes
Exchange of products and services between the business partners
Information flow between the business partners
Financial flows between the business partners
e-business applications to support the interenterprise business processes (e-Business Processes)
Roles to define the process responsibilities
Content of an ECM model
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Implementation of e-Business Solutions
ECM -Buisness Models
ECM -Buisness Models
ECM-Business Processes
ECM-Business Processes
ECM-BusinessApplications
ECM-BusinessApplications
E-Business Tools
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The needs for standardization
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Rosettanet RosettaNet is a consortium of major Information Technology,
Electronic Components and Semiconductor Manufacturing companies
working to create and implement industry-wide, open e-business
process standards. These standards form a common e-business
language, aligning processes between supply chain partners on
a global basis.
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Rosettanet StandardsPIPs
RosettaNet Partner Interface Processes™ (PIPs™) define
business processes between trading partners.
Dictionaries
RosettaNet dictionaries provide a common set of properties
for PIPs™. The RosettaNet Business Dictionary designates
the properties used in basic business activities. RosettaNet
Technical Dictionaries provide properties for defining products.
RosettaNet Implementation Framework
The RosettaNet Implementation Framework (RNIF) provides
exchange protocols for quick and efficient implementation of
PIPs™.
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Two Myths…
One Reality Myth One
RosettaNet (and standards in general) are on the fast path to general acceptance.
Myth Two
Moving quickly to adopt RosettaNet provides you with a competitive edge in the marketplace.
Reality
Quickly and intelligently adopting RosettaNet and other strategic standards will increase your success in the networked economy.
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So why RosettaNet?
Standards are critical to conducting e-business worldwide.
XML standards enable you to conduct business in real-time.
RosettaNet is emerging as a leading XML standard for B2B.
Early adoption enables you to blaze the trail.
Leveraged properly RosettaNet can help you gain true competitive advantage.
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Fulfill the promise of one to many and enables you to conduct e-business with multiple partners.
Real-time transactions via XML instead of batched EDI. Standard messages on interoperable platform enables worldwide e-
business.
Application to Application
Security
Back-end Integration
If Everyone Adopts a Standard
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B2B Process Integration Benefits
Source: PRTM/Supply Chain Management benchmarking study
10-16%Overall Productivity
25-50%Lowered Supply Chain Costs
30-50%Fulfillment Cycle Time Reduction
25-60%Inventory Reduction
40%Channel Returns & Scrap Reduction
15%Product Cost Reduction
16-28%Delivery Performance
Typical Benefits Realized by Integrating the Supply Chain
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Fast ROI through
B2B Process Integration
Leading Network Infrastructure company achieves ROI for various supply chain business processes in six months (average).
Fastest ROI: Two weeks Longest ROI: Two years
Major Networking Company shows $14 to $28 million per year cost savings by integrating New Product Introduction business processes.
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Steps to Competitive Advantage
Get in the game
Adopt RosettaNet and other emerging standards early
Affect the rules of the game
Leverage your understanding of the standards and your business processes
Win the game
Align business processes to integrate your supply chain
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Example of successful implementation
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Common Vision at IntelCommon Vision at Intel
Be the Leader in Supply Network Management
Operate the right multiple supply networks driven by business needs
Execute each network as a single, virtual enterprise enabled by the Internet
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… … and Supply Network Goalsand Supply Network Goals
Drive Cycle Time Reduction in all our
businesses across the Supply Networks
Design & Implement Agile/Flexible
Supply Networks
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To support the SCOR Model/Methodology
Provides structure and common language including definition of process steps and metrics to model supply chain
Reference Model provides a framework to configure supply chain Consistency of definition allows for effective evaluation With appropriate Tool, Time invested can yield value added
results
To explore integration with other planning and business process modeling activities
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D1.6 D1.5 D1.3 D1.2 D1.1
D1.8 D1.9 D1.10 D1.11 D1.12 D1.13
D1.4D1.7
ARIS EasySCOR utilized for SCOR ModelingARIS EasySCOR utilized for SCOR Modeling
Level One in EasySCOR Modeler
Plan
Source
Make Deliver
Deliver
D0 Deliver Infrastructure
D1 Deliver Stocked Products
D2 Deliver Make-to-Order Products
D3 Deliver Engineer-to-Order Products
Level Two in EasySCOR
Modeler
Level Three in EasySCOR Modeler
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SCOR Metrics Assessed at Level I & IISCOR Metrics Assessed at Level I & II
PerformanceAttributes
L ITie
Metric for P1, Plan SupplyChain
Metric for P2, Plan Source Metricfor P3 Plan Make Metric for P4, Plan Deliver
Cycle Time PF,TLC,CCT,DP,AT
Cumulative Source/Make CycleTime
Replan Cycle Time
Cash-to-cash Cycle Time
Cumulative Source Cycle Time
Source Flexibility
Supplier Cycle Time
Cumulative Make Cycle Time
Make flexibility
Number of End Products/SKU’s
Order Management Cycle Time
Cost PF,TLC,CCT,DP,AT
Total Order Management Costs
D/S Planning Costs
Inventory Carrying Costs
Value-Added Productivity
Obsolete Inventory
Raw Material Inventory CarryingCosts
Number of Supply Sources
Raw Material Shrinkage
Commodity Management Profile
Work-In-Process InventoryCarrying Costs
WIP Shrinkage
Material Overhead Cost PerDollar of Material Expenditure
Finished Goods InventoryCarrying Costs
Finished Goods Shrinkage
Order management costs
Total Logistics Costs
Service/Quality PF,TLC,CCT,DP,AT
Forecast Accuracy
Delivery to Customer RequestDate
Fill Rate
Product & Process DataAccuracy (Bills of Material,Routings, Planning Factors, etc.)
Supplier Delivery Performanceto Customer Request Date
Supplier Fill Rate
Production plan adherence
Actual to Theoretical CycleTime
Fill rate
Forecast Accuracy
Delivery to Customer RequestDate
Assets PF,TLC,CCT,DP,AT
Return on Assets
Capacity Utilization
Total Inventory DOS
Total Raw Material InventoryDOS
Total WIP Inventory DOS
Inventory Obsolescence
Total Finished Goods InventoryDOS
PF = Production Flexibility, TLC = Total Logistics Cost, CCT = Cash-to-Cash Cycle Time, DP = Delivery Performance; AT = Asset Turns; xx = no tie; xx = tie
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SCOR applied to B2B e-CommerceSCOR applied to B2B e-Commerce
Leverage SCOR to develop around e-business scenario modeling
Start with supply chain models Refine the model representation of B2B scenarios Drill down to the interchange process specification level Perform SCOR-based simulation
Explore mapping of SCOR to the Rosettanet
Work with both the Supply Chain Council and RosettaNet Siemens is committed in a joint effort
Currently developing a Value Proposition statement and pilot plan Internal review process will precede SCC/Rosettanet proposal
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Drill into Interchange SpecificationDrill into Interchange Specification
Export/Transport
Export/Transport
SubcontractorSubcontractorSellerSeller
OrderManagerment
OrderManagerment
ShippingShipping
SalesOrder
ProductionProduction
ReservationPlanning
Goods ReceiptProcessing
Vehicle Specification/Search Request
via Internet
ShipmentTracking
Transport Control
Vehicle Locating and Allocation
Order Processing
Order TrackingOrder Tracking
OEM DealerImporter
IDS ScheerE-Business Scenarios will be used to visualize the flow of communication between business participants
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Perform SCOR-based SimulationPerform SCOR-based Simulation
Use eSCOR for tpt/cost analysis
Transfer ARIS Model into GensymeSCOR
Define products
Define resources
Run simulation
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Potential Big Wins for SCOR Potential Big Wins for SCOR
Facilitate mapping of Level II & III metrics to Level I indicators
Provide a “how-to” guidelines for applying SCOR beyond
configuration analysis
Drag and Drop SCOR modeling
Cost/Time analysis through simulation
SCOR-based B2B modeling
Visualize SCOR metrics through integrated performance
monitoring
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Conclusion:
New Economy, New Processes, New
Standards
