New 2001 Net Odyssey

2001 A Net OdysseyLaunching Hospitality Enterprises into Cyberspace

Anna PollockDestiCorp Limited

2001 A Net OdysseyOr the next, next, big thing!

Anna PollockDestiCorp Limited

Business Drivers Technology Drivers The evolution of E-business The future is C-commerce! Implications for Hospitality Enterprises

Scope & Purpose

Changing Concepts of Value Customer Power From things to services and experiences Outsourcing Focus on Core Competencies Collaboration versus Competition

Business Drivers

From hard assets to: digital capital and intellectual property proprietary business processes and core

competencies an ability to anticipate and respond to market

demand brand awareness and loyalty

What are your core competencies?

Changing Concepts of Value

Perfect information shifts power to the consumer

Commoditisation P2P and viral marketing The Cluetrain Manifesto

People Power

Cluetrain Manifesto

If you only have time for one clue this year, this is the one to get …we are not seats or eyeballs or end users or customers. We are human beings and our reach exceeds your grasp … Deal with it!

www.cluetrain.com

Cluetrain Manifesto

Companies that don’t realise their markets are now networked person-to-person, getting smarter as a result and are deeply joined in conversation are missing an opportunity.

See www.HERmail.net

Growth & change in outsourcing What are ASP’s? Benefits Impediments and potential Types

Horizontal Vertical

Outsourcing & ASP’s

How do you compete in a world of perfect information? Not by price but by perceived value Through an obsession with the customer Through focus on your core competency Through collaboration

Competition is Dead!?

Towards C-Commerce

Old: Supply Chain Management

Suppliers CustomersSCM ERP CRM

Towards C-Commerce

Step Two: Supply Network Management

ANCILLARY

SERVICES

CHANNEL

PARTNERS

SUPPLIERS CUSTOMERS

Towards C-Commerce

Step 3: Enterprise as Organism in an ecosystem

ANCILLARYSERVICES

CHANNELPARTNERS

SUPPLIERS CUSTOMERS

The Future

Business WebsIn b-webs, internetworked, fluid – sometimes highly structured, sometimes amorphous – sets of contributors come together to create value for customers and wealth for shareholders. In the most elegant of b-webs, each participant focuses on a limited set of core competencies, the things it does best.

Don Tapscott, Digital Capital

The Future

C-commerce is the set of electronically enabled collaborative interactions among an enterprise, its customers, business partners, suppliers and employees.

E-commerce is a transaction-centred e-business model used to buy and sell goods whereas c-commerce is a collaborative-centred e-business model that enables the virtual enterprise.

The Gartner Group, 2000

The Future

Consumers

FRANCHISEES

Catering

Human Resource

Sales & Marketing

Manager

Hotel

Brand

B2C

site

Corporate

portal

Third-party

sites

Third-party

exchange

PARTNERS

Meeting Planners

Corporate Buyers

Tour Operators

Agents

CHAIN HQ

Suppliers

Hotel Business Web

True Paradigm Shift!

Old A linear, mechanical world view Supply chains Economy as a machine

New Holistic, complex, self-repairing Economy as an ecosystem Fluid, amorphous, dynamic, messy

Technology As Enabler

Internet as Dial-tone Pervasive computing New Tools Emergence of standards Automation

Internet As Dial-tone

Always on and very fast No longer an optional extra From the means to publish to the means to:

Sell Manage Procure Collaborate Create

Pervasive Computing

Ubiquity and convergence Multi-channels

PC Mobile phone – voice, SMS, WAP PDA Call Centre iTV

Tower of Babel?

Personal Computer

“If I said to you ‘Can I borrow your laptop?’, it’s like ‘My feet are cold. Can I borrow your socks for half an hour?’”

“It’s a personal computer, and I think there’s got to be depersonalisation.”

Peter CochraneChief Technologist, BT

Cell Phone Handsets & HandheldComputers Overlap In FunctionCellular

Phone Handset

Cell Phone with Email, Web Browser

PDA with Wireless Data

?

Personal Computers and Pocket Computers

“When you consider the number of pockets out in the world, the PC market looks puny”

Bill Joy Sun Microsystems

Ambient Intelligence

New Tools & Standards

HTML XML Java Objects and Components Web Services UDDI Business Web Automation

The Evolution of E-Businessco

mp

lexi

ty

Time & investment

HostComputing

NetworkComputing Web Phase 1

Web Phase2-transactions Web Phase 3

The Great Divide

The Quantum

Leap

Web Phase 1

Innovations Internet, TCIP/IP HTML Browsers Common GUI “Thin & Fat PC Client” Web or HTTP server in-house or on ISP

Web Phase 1

APPLICATIONS

APPLICATIONS

APPLICATIONS

APPLICATIONS

APPLICATIONS

DATABASES

LEGACY SYSTEMSHTML

PAGES

HTTP SERVER

BROWSERINTERNET

FIREWALL

TCP/IP

PC

PC

PC

PC

LAN orWAN

CORPORATE NETWORK

CLIENTS

Web Phase 1

Weaknesses Static Web Pages Non-transactional, non interactive Non-conversational Limited integration with back-end Web server manually fed Web publishing bottle-necks One site to suit all

Web Phase 2

Leaping Over The Great Divide From brochure-ware to sales Internal interoperability with legacy systems

– order/entry, inventory, accounting, logistics Security issues Reliability Scalability

Web Phase 2

Innovations E-catalogues enable B2C then B2B takes off “Clients” include cell phones, PDA’s iTV Tiered architecture, application servers Content management software & CRM Heavy investment in ERP and EAI

Web Phase 2

APPLICATIONS

APPLICATIONS

APPLICATIONS

APPLICATIONS

DATABASES

LEGACY SYSTEMS

APPLICATION SERVERS

HTTP SERVER INTERNE

T

FIREWALL

PC

PC

PC

PC

LANWANVPN

EAI

WEB

WAP

CC

iTV

PAYMENT

SECURITY

INTEGRATION

LOAD BALANCING

CONTENT MANAGEMENT

CRM

CLIENTS

ROI of Selected E-commerce

Initiatives

ELECTRONIC CATALOGUE

TRANSACTION PROCESSING

LEGACY INTEGRATION

SUPPLY CHAIN MANAGEMENT

DATA WAREHOUSING

E-MAIL GROUPWARE

SOURCE: McKENNA GROUP

8.7%

8.27%

5.19%

1.99%

1.72%

1.22%

Web Phase 2

Weaknesses Very limited inter company integration across

firewalls 75% of major US companies recognise the need

to integrate with partners, less than 20% have acted

Partnerships require hard-coding and are expensive and time consuming

Web Phase 3

Innovations Business processes (data & functionality) become

software components, wrapped in XML These “Web Services” can be classified and

stored in directories on the Net for use by all They are like “Lego building blocks” Tools to aggregate, integrate and transform these

blocks into powerful personalised applications are automated.

Web Phase 3

STOREHOUSE

DIRECTORY

AGGREGATING INTEGRATING PERSONALISING

PERSONALISED SITES

WEB

WAP

iTV

BUSINESS DRIVERS

WEB SERVICES

INTERNAL

WEB SERVICES

WEB SERVICES

WEB SERVICES

WEB SERVICESWEB SERVICES

WEB SERVICES

WEB FACTORY

Web Phase 3: Radical!

FeaturesDynamic business webs mean you can: Create new products and services with enormous

speed Reach new customers and add new relationships

easily Change existing relationships dynamically and

instantly Engage in multiple e-business models

simultaneously

Consumers

FRANCHISEES

Catering

Human Resource

Sales & Marketing

Manager

Hotel

Brand

B2C

site

Corporate

portal

Third-party

sites

Third-party

exchange

PARTNERS

Meeting Planners

Corporate Buyers

Tour Operators

Agents

CHAIN HQ

Suppliers

Hotel Business Web

% a

ctiv

e im

ple

men

tati

on

Time & investment

HostComputing

NetworkComputing Web Phase 1

Web Phase 2-transactions E-services

60%

80%

50%

5% >0.5%

The Opportunity Gap

Where Are We Now?

Implications

B2B = back to basics Focus on your core competency, outsource the

rest Rethink the business model, not the BPR Invest in the right “infrastructure” to enable you to

Excel in customer service Learn, adapt, innovate Collaborate with partners Automate

The Future is C-Commerce!

DestiCorp Limited

Positioning as the leading authority on C-commerce and Business Webs in the Tourism and Hospitality sector

E-services and Business Web enabler Web Services provider