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September 2002 © Michael Klemen Page 1 e-procurement............ what works, what not .... E-procurement - beyond disruption: what works , what not Michael Klemen Krems, 11.09.2002

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Page 1: E-procurement............ what works, what not.... September 2002© Michael KlemenPage 1 E-procurement - beyond disruption: what works, what not Michael

September 2002 © Michael Klemen Page 1

e-procurement............ what works, what not ....

E-procurement - beyond disruption: what works , what not

Michael KlemenKrems, 11.09.2002

Page 2: E-procurement............ what works, what not.... September 2002© Michael KlemenPage 1 E-procurement - beyond disruption: what works, what not Michael

September 2002 © Michael Klemen

e-procurement............ what works, what not ....

CollaborativeInteraction

ReactiveReporting

ProactiveNotification

ConnectionScope

APPLICATION PARADIGMSource: Gartner Group

Cyber-Market

TraditionalTradingPartners

Enterprise

Domain1995

Value/SupplyChain1995-2000

C-Commerce2000-2004

Introduction1.

Business Application EvolutionConclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen Page 3

e-procurement............ what works, what not ....

„...only a few times in history have interaction costs radically changed. One was railroads, then the telephone and telegraph. We are going through another one right now.“

Source: Business2.0

Introduction1.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen Page 4

e-procurement............ what works, what not ....

UnternehmeneProcurement eCommerce

LIEFERANTEN KUNDENEinkauf Verkauf

Intern

•eProcurement

•Auktionen

•Web-basierte Einkaufsunterstützung

•eMarketplaces

•ePortale

•eSupply Chain Mgmt

•Collaboration/Groupware

•Sales Force Automation

•Work Flow

•eControlling

•eMarketing

•eCustomer Relationship Management

•Shops und Kataloge

•Web Publishing

•ePortale

Source: Die Presse

The e-business world

Introduction1.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen

e-procurement............ what works, what not ....

Mainframe-Quality of Services

Full-Service Supplier

Long Life-Cycle

Low-Cost-Introduction

Productivity

Newest Functionality

Fast ChangingApplications

TraditionalApplications

Legend: Maximum value 100 %

Source: Gartner Group/CW

The split enterprise

Introduction1.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen Page 6

e-procurement............ what works, what not ....

Before 2000 companies pushed products through the channel to waiting customers.

After 2000 customers pull products and services through on demand.

By 2010 most buyers will be connected, completing the Customer-Led Revolution.

20001990 2010

Old Worldof business management

New Worldof e-commerce

Supply-Driven Customer-Led

Source: Futurize Your Enterprise / David Siegel

A unique transition

Introduction1.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen Page 7

e-procurement............ what works, what not ....

‘90-‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

Visibility

Year

Peak of inflatedExpectations

Slope ofEnlightenment

TechnologyTrigger

Trough ofDisillusionment

Plateau ofProductivity

Source: Gartner Research

InternetWeb

Dot-ComStarts

U.S. IPOs1997/1998

U.S. Xmas1998

EuropeanIPOs 1999 Dot-Com Share Fallout

Investor Disillusionment

Brick-and-Mortar Failures

Dot-Com Shakeout

Business Disillusionment

„True“ E-Business Emerges

Optimised E-Business

Post-InternetBusinesses

Era on NLOs

2006 to 2008E-Business Ends„e“ is Best

Forget the gold rush: work hard for the gold

Introduction1.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen Page 8

e-procurement............ what works, what not ....

How e-biz works today

Introduction1.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Status

2.

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September 2002 © Michael Klemen Page 9

e-procurement............ what works, what not ....

• Community• Collaboration• Commerce Lifecycle• Content• Presentation• Enterprise Application Integration• Security• Systems Management / Open Standards & Technologies

The anatomy of the e- b2b solution

Source: IBM Understnding B2B e-business Solutions

Introduction1.

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September 2002 © Michael Klemen Page 10

e-procurement............ what works, what not ....

Community: I can meet and interact with people like me

Continuity: I can go from one session to the next easily, no matter how much time has elapsed.

Convenience: I can get what I‘m looking for quickly and intuitively.

Customization: I want to see what I want, I don‘t want to see what I don‘t want - most of the time.

Source: Futurize Your Enterprise / David Siegel

The eight C´s of the web

Introduction1.

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September 2002 © Michael Klemen Page 11

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Commerce: The web makes transactions easier.

Content: I want very deep content, and I want to be able to mine it to get what I‘m looking for.

Commitment: I want to know that you will help me in the future. If you don‘t have, what I‘m looking for, you‘ll go get it for me.

Control: I want to control our relationship. I want to turn it on or off, and anything you do with my information should be with my permission.

Source: Futurize Your Enterprise / David Siegel

The eight C´s of the web

Introduction1.

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September 2002 © Michael Klemen Page 12

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ERP legacy~15 systems

ERP non-SAP~25 systems,

different versions

Technical systems

Trading

CollaborativeEngineering

e-Sales

SAP R/3~30 systems,

Versions 3.1I - 4.6B

E-Procurement10 units

SAP MarketsEnterprise Buyer

Professional Edition

In times like these ...

...how to capitalize on existing IT investments ?

... through integration of heterogeneous systems !

Today inside a company

Source: Courtesy SAP

Status2.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

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September 2002 © Michael Klemen Page 13

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Customer

Distributor

ContractManufacturer

Raw Material

Parts Provider

Subcontractor

OEM

EDI

E-Mail

INTERNET

MSExcelMS

Excel

15,000 interfaces

Development cost:~ 75,000 USD / interface

Costs of ownership: ~ 10,000 USD / year / interface

Overall:

150 Mio. USD / year

Challenge: Cost of Integration

The cost of integration – customer reality

Source: Courtesy SAP

Status2.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

Page 14: E-procurement............ what works, what not.... September 2002© Michael KlemenPage 1 E-procurement - beyond disruption: what works, what not Michael

e-procurement............ what works, what not ....

Anwendungen und Systeme im e-business

Marketing HR

Direct Sales

Expenses

Financials Supply Chain

Requisitions

ExchangesService

Channel Sales

Web Marketing

? ?

?

?

? ?

?

??

?

?

Source: Courtesy ORACLE

Status2.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

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September 2002 © Michael Klemen Page 15

e-procurement............ what works, what not ....

The Commerce One Solution

EnterpriseBuyer™

Enterprise Buyer™ MarketSite™

Interoperable

3rd PartyBuying

Applications

3rd PartySelling

Applications

3rd PartySelling

Applications

ERPConnectors

ERPConnectors

Legacy Systems (EDI)Multiple Std’s

XML,EDI,BizTalk

MarketSite Operating EnvironmentMarketSite Operating Environment

Business Services Framework

Builder

Platform

Connectivity Security Management

Marketplace ApplicationsMarketplace Applications

Pro

cu

rem

en

t

Au

cti

on

Dyn

am

ic P

ricin

g

Lif

e-c

ycle

C

ollab

ora

tion

Su

pp

ly C

hain

Collab

ora

tion

Cata

log

/Con

ten

t

Ord

er

Man

ag

em

en

t

An

aly

tics

Ad

d-i

nA

pp

licati

on

s

Source: Courtesy C1

Status2.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

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September 2002 © Michael Klemen Page 16

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PortalInfra-structure

ExchangeInfra-structure

SAP Web Application Server

mySAP Technology Enterprise Portals

mySAP Enterprise Portals

Exchange

mySAP Exchanges

SRM

mySAPSRM

HR

mySAPHR

SCM

mySAPSCM

CRM

mySAPCRM

PLM

mySAPPLM

FIN

mySAPFinan-cials

BI

mySAPBI

3rd

Party,

...

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September 2002 © Michael Klemen

e-procurement............ what works, what not ....

Oracle eBusiness Footprint

CommonInfrastructure

CommonServices

Database

Business Applications

InternetApplication

server

eBusiness SuiteeBusiness Suite

9i9i

Business IntelligenceBusiness Intelligence

Directory SecurityDirectory Security Scheduling RoutingScheduling RoutingTransactions MessagingTransactions Messaging

iASiAS

AnalyticalApplications

eB

usi

ness

Pla

tform

Applic

ati

ons

Development ToolsDevelopment Tools Application Framework(includes Foundation)

Application Framework(includes Foundation) WorkflowsWorkflows

Source: Courtesy ORACLE

Page 18: E-procurement............ what works, what not.... September 2002© Michael KlemenPage 1 E-procurement - beyond disruption: what works, what not Michael

September 2002 © Michael Klemen

e-procurement............ what works, what not ....

Von der Komplexität ...

UNIXMainframes NTHeterogene Netzwerke

Abteilung Abteilung Niederlassung

LAN WAN IntranetExtranet Internetverschiedenste Standards und Protokolle

SoftwareInstallation

DatenSicherung

AufrüstungUmrüstung

Source: Courtesy ORACLE

Status2.

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September 2002 © Michael Klemen

e-procurement............ what works, what not ....

… zu Einfachheit und Kostenreduktion Abteilung Abteilung Niederlassung

Data Center

Data ServerApplication Server

Eine Infrastruktur:Eine Infrastruktur: INTERNETINTERNET

Browser

SoftwareInstallation

DatenSicherung

AufrüstungUmrüstung

Source: Courtesy ORACLE

Status2.

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September 2002 © Michael Klemen

e-procurement............ what works, what not ....

Business IntelligenceBusiness Intelligence

eBusiness PlatformeBusiness Platform

Common Application Architecture & SchemaCommon Application Architecture & Schema

Interaction ChannelsInteraction Channels

eBusinessPlatform

Business Applications

AnalyticalApplications

eBusinessFoundation

CRMCRMSCMSCMERPERP

E-c

om

mE-c

om

mCRMFoundation

Interaction

Channels

Procurement

Oracle eBusiness Suite

PurchasingPurchasing iProcurementiProcurementPurchasingIntelligencePurchasingIntelligence

iSupplierPortal

iSupplierPortal

InventoryInventory SourcingSourcing ExchangeMarketplace

ExchangeMarketplace

SupplierSchedulingSupplier

Scheduling

Source: Courtesy ORACLE

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September 2002 © Michael Klemen

e-procurement............ what works, what not ....

Order FulfillmentOrder ManagementInventory ManagementAdvanced PricingConfiguratoriStoreRelease ManagementReceivablesMobile Supply Chain ApplsWarehouse Management

Product DesignProduct Development ExchangeProject ContractsProject AccountingSourcing

ManufacturingDiscrete Manufacturing Bills of Material & EngrWork in ProcessCost ManagementInventoryQualityProject ManufacturingFlow ManufacturingShop Floor MgmtProcess ManufacturingLab. & Formula MgmtProduction ManagementProcess Costing & QualityProcess InventoryRegulatory Management

PlanningSupply Chain PlanningDemand PlanningAdv Supply Chain PlngConstraint-based OptimizationGlobal ATP ServerManufacturing SchedulingInventory OptimizationSupply Chain Exchange

ProcurementSourcingiProcurementPurchasingSupplier SchedulingPayablesiSupplier PortalExchange Marketplace

SCM - a view on Procurement & E-sourcing

Source: Courtesy ORACLE

Status2.

Conclusions

5

Fallstudie

4.

Demo

Vortrag

3.

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September 2002 © Michael Klemen Page 22

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• Fallstudie des BMOE im Sommer 2002• E-sourcing at work in Österreich• Was E-Business noch kann ...

Fall Studie4.

Conclusions

5

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September 2002 © Michael Klemen Page 23

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Kaufen Sie richtig ein ? EinkaufsInitiative des BMÖ

Der BMÖ lädt Sie herzlich ein, sich an einer Initiative zu beteiligen um eSourcing und eProcurement risikolos auf die Probe zu stellen. Eine EDV-technische Systemintegration ist nicht erforderlich.

Start: 24.6.2002

Nutzen Sie die Einkaufsinitiative des BMÖ

Details auf www.bmoe.at / Thema der Woche

Das Beste: Die Teilnahme ist für BMÖ-Mitglieder kostenfrei.

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Die Nutzenpotenziale von kollaborativen Ausschreibungen:

• Profitieren Sie von günstigeren Konditionen auf Grund von Bedarfsbündelungen (e.g. Ihr Bedarf von 100 Stück im Bereich HP Toner bringt Ihnen günstigere Konditionen, wobei hingegen Ihr Bedarf von 1000 Tonerkartuschen im Bereich Lexmark anderen günstigere Konditionen beschert.)

• Nutzen Sie die Option bei besonders wettbewerbsfähigen Bietern spezielle Teile Ihres Bedarfes zu decken, ohne dadurch die Konditionen für andere Produkte Ihres Beschaffungsvolumens zu verschlechtern

• Die Losbildung und das Regelwerk sind durch SourcingOnDemand so gestaltet, dass diese auf den Spezialisierungsgrad, sowie auf das Produktsortiment der Bieter abgestimmt sind

Die Besonderheiten von SourcingOnDemand:

• Keine Kosten

• Nach erhaltener unverbindlicher Kommunikation des Bedarfes werden wir Ihnen unsere Preisvorstellungen (Maximalpreise) zur Bestätigung vorlegen.

• Einladung der passenden Bieter zu den einzelnen Ausschreibungen

• Bündelungsmaxime: jeder Einkäufer muss durch Bündelungen zu einem Vorteil gelangen

• Regelmässige Ausschreibungsrunden für von Ihnen gewählte Produktsparten des indirekten Materials

• Automatisierung des Prozesses auch für andere Produkte des indirekten Materials möglich

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Prozess

Akquise von bedarfsstarken Einkäufern

Akquise von wettbewerbsfähigen Lieferanten

Lieferanten-informationen, Sortimentsauskunft

Bedarfserfassung

„go live“

Kumulieren der Nachfrage

Bündelung der Nachfrage zu Ausschreibungslosen

Prüfung der Marktpreise bzgl. dem aggregierten Volumen.

Kommunikation der zu erwartenden Marktpreise an die Einkäufer.

Einkäufer erteilen rechtswirksame Bestätigung

Bieter werden auf die Plattform geladen

Ausschreibungslose werden auf der Plattform veröffentlicht.

RFQ

• Dynamic Reversed Auction

Vergabe

• Evaluierung und Aufbereitung der Ergebnisse

• Kommunikation an Einkäufer

• Kommunikation an Bieter

• Vergabe des Auftragvolumens

RFIAkquisition

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Bitte geben Sie Ihren Benutzernamen und Ihr Passwort ein und klicken anschließend auf „LOS“!

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September 2002 © Michael Klemen Page 27

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Bitte klicken Sie auf „Verhandlungen“!

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Bitte klicken Sie auf Ihre gewünschte Bedarfsanfrage! Sie können wählen, ob Sie nach Druckern oder nach Tonerbezeichnungen Ihre Anfrage abgeben möchten.

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Geben Sie Ihren Zielpreis (obere Preisgrenze) ein!

Geben Sie Ihren Bedarf in Stück ein!

Um Ihren Bedarf zu speichern, klicken Sie bitte „OK“!

Optional, zu statistischen Zwecken: Bitte geben Sie Ihren bisherigen Einkaufspreis ein!!

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Was E-Business noch kann

Fall Studie4.

Conclusions

5

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E-OrderManagement

BusinessCommunityIntegrators

E-Marketplace

Value TrustNetworksBusiness

Integration

Evol

utio

n

All components of a complete e-Marketplace solution.

Each fulfills a business need and can exist independently, but the highest level of optimization requires all components working as a Value Trust Network

Low Optimization High

Hub to Hub

Point to Hub

Point to Point

Source: W:Raisch The eMarketplace, 2001

Conclusions5.

The Evolution of value trusted networks

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Vielen Dank