eBusiness - Introduction Pascale Vande Velde

Solvay Business School

SEMINAIRE DE TECHNOLOGIES DE L’INFORMATION ET DE

LA COMMUNICATION

UNIVERSITELIBRE DEBRUXELLES

eBusiness - IntroductioneBusiness - IntroductionPascale Vande VeldePascale Vande Velde

GEST 116GEST 116

V.1.4 Solvay Business School

Technologies de l’information et deLa communication

2

Introduction – Part I

Introduction – Part II

Payments & security

Supply chain management

Content of eBusiness courseContent of eBusiness course



3

Trends, facts and figures

eBusiness value drivers

Application areas for eBusiness

Electronic marketplaces

AgendaAgenda



4

The internet economy boom is overThe internet economy boom is over

0

200

400

600

800

1000

1200

Nov-1996

Nov-1997

Nov-1998

Nov-1999

Nov-2000

Nov-2001

Cisco

Dow Jones

Microsoft

Implosion

Boom

1996: Yahoo! quote triples on first day of trading

1999: 188 IPO's double in value on first day (compared to 39 during the previous 24 years combined)

2000: AOL buys Time Warner for USD 100+ Bn

2001: 100.000+ lay-offs in internet-related companies (50.000 in 2000) ; 200+ US dot-coms companies go bankrupt in S1 2001

Post 2001 : consolidation of some players; market rationalization continues

In 2003, Amazon books its first net profit

1996: Yahoo! quote triples on first day of trading

1999: 188 IPO's double in value on first day (compared to 39 during the previous 24 years combined)

2000: AOL buys Time Warner for USD 100+ Bn

2001: 100.000+ lay-offs in internet-related companies (50.000 in 2000) ; 200+ US dot-coms companies go bankrupt in S1 2001

Post 2001 : consolidation of some players; market rationalization continues

In 2003, Amazon books its first net profit



5

Key drivers for the penetration of ebusinessKey drivers for the penetration of ebusiness

Increasing Consumer Penetration

Cooperative Regulatory Environment

Expanding Technology Infrastructure

Compelling Business Value



6

Source: Morgan Stanley, “The Internet Advertising Report,” 1998

Years to 50 Million U.S. Users

Millions of

Users

Internet(World Wide Web)

1930

1920

1940

1950

1970

1980

1990

1925

1935

1945

1955

1960

1965

1975

1985

1995

120

100

80

60

40

20

0

TV

CableRadio

Telephone

TThe recent adoption of the Internet has he recent adoption of the Internet has been truly amazing!been truly amazing!

Medium Years Timeframe

Telephone 25 1920-1945

Radio 38 1922-1960

TV 13 1951-1964

Cable 10 1976-1986

WWW 5 1993-1998

Adoption of Consumer Technologies in U.S.



7

97

120

140157

172184

196

46%44%40%

36%31%

49%

25%

0

20

40

60

80

100

120

140

160

180

200

2000 2001 2002 2003 2004 2005 2006

Onl

ine

Use

rs

0%

20%

40%

60%

80%

100%

Per

cent

age

of E

urop

ean

P

opul

atio

n O

nlin

e

Online users in Europe

Percentage of European population online

29

23

14 14

8 76

3 3 3 3 2 13 101

34%

10%

32%

13%

42%

60%

27%

35%

53%

42%

62%

19%

47%

23%27%

38%

35%

0

10

20

30

40

50

0%

20%

40%

60%

80%

100%

Online users

Online penetration (users)

Online users by country 2001

Online usage is growing fast in EuropeOnline usage is growing fast in Europe

Online users in Europe 2000-2006

By end 2006, about 50% of the European population will use internet at least one hour per month. The growth curve will then become fairly flat

Internet penetration is the highest in Scandinavian countries with more than 60% of the population online in 2001. Southern Europe lags behind (e.g. Greece, Portugal, Spain, France)

Penetration in Belgium was moderate compared to the European average in 2001 but increased very much in the meantime from 27 to 48%

Source: Jupiter MMXI Internet Population Model, June 2002

in millions

Onl

ine

Use

rs

Onl

ine

Pe

ne

trat

ion

(us

ers

)

in millions

NB : online usage measurement based on use of internet at least one hour per month (excluding email). Extrapolation based on two surveys (2,000 phone interviews + 60,000 internet questionnaires)



8

Belgium is catching up quicklyBelgium is catching up quickly

Online users in Belgium 2000-2006

In 2003, about 48% of the Belgian population (> 15 years old) uses internet at least one hour per month

In December 2003, about 4,0 million Belgians used internet at least one hour per month, which represented a 25% increase compared to October 2002

55% of regular home internet users use a high speed connection. It places Belgium amongst the top in terms of broadband penetration in Europe (with Sweden)

The number of connections is stagnating but the mix is evolving towards broadband (cable + ADSL)

4,0 4,4 4,7

3,63,22,82,3

23%

45%

27% 31%35%

39%43%

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005 2006

Onl

ine

Use

rs

0%

20%

40%

60%

80%

100%

Per

cent

age

of B

elgi

an

P

opul

atio

n O

nlin

e

Online users in Belgium

Percentage of Belgian population online

in millions

Sources: Jupiter MMXI Internet Population Model, June 2002, InSites Internet Mapping, April 2002 Source: ISPA, 14th market study, September 30th 2002

Number of private connections in Belgium

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

mrt

/01

ap

r/0

1

me

i/01

jun

/01

jul/0

1

au

g/0

1

sep

/01

okt

/01

no

v/0

1

de

c/0

1

jan

/02

feb

/02

mrt

/02

ap

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2

me

i/02

jun

/02

jul/0

2

au

g/0

2

sep

/02

Free active connections Paying residential PSTN and ISDN

Paying residential broadband

1,49 million connections for 4 million households



9

Real growth is in Business-to-BusinessReal growth is in Business-to-Business

By end 2005, online B2B spending in Western Europe will be worth close to €3 trillion, with

Germany and the UK accounting for over half of the total

Computer/telecom goods and aerospace industry will be the most impacted by the growth of the

B2B commerce

Online B2B spending in Western Europe 2000-2005

Online B2B spending by industry 2000-2006

€ 205

€ 500

€ 1.805

€ 2.917

€ 63

€ 1.025

17%

11%

4%7%

1% 2%€ 0

€ 500

€ 1.000

€ 1.500

€ 2.000

€ 2.500

€ 3.000

2000 2001 2002 2003 2004 2005

0%

10%

20%

30%

40%

50%

Online B-to-B trade Channel shift

Per

cen

tag

e o

f M

ark

et O

nlin

e

Onl

ine

B-t

o-B

Sp

end

ing

Source: Jupiter European Business-to-Business Forecasts 2000-2005, September 2001

Belgium 2001: € 3 Billion

2005: € 50 Billion

Belgium 2001: € 3 Billion

2005: € 50 Billion

in billions

0%

10%

20%

30%

40%

50%

60%

70%

Computer and telecomequipment

8% 8% 15% 30% 41% 52% 60%

Aerospace and defense 8% 11% 17% 26% 35% 45% 54%

Motor vehicles and parts 7% 10% 16% 24% 33% 42% 50%

Metals and mining 6% 6% 11% 21% 28% 36% 43%

Chemicals 6% 7% 8% 12% 26% 33% 39%

2000 2001 2002 2003 2004 2005 2006

Source: Jupiter Internet B-to-B Commerce Model, June 2000, (US only)



10

The B2C market is growing very fast but The B2C market is growing very fast but revenues base is smallerrevenues base is smaller

In 2002, online B2C spending in Western Europe is worth €20 billion, which accounts for 4% of the B2B market. Online B2C spending is forecasted to amount to €80 billion in 2007

By end 2007, about 4% of total retail commerce should be done via the internet

Travel, grocery, PCs and books are the most frequently goods bought on the internet

In 2003, Belgian internet surfers bought for about 0,8 bn EUR on the internet (3-4 orders a year @ 135 EUR/order). Most purchased goods are books and CDs. 680,000 Belgians have booked some travels via the internet in 2003 – Source : Insites Consulting

Online B2C spending in Western Europe 2002 and 2007

Online B2C spending mix 2002

Source: Jupiter MMXI Internet Commerce Model, August 2002

6,4 21,7

20,4

11,4

5

3,8

2,8

4,2

1,8

1,7

1,7

1,4

1,3

1

0,6

4,5

2,4

1,1

1

0,9

0,5

0,6

0,8

0,4

0,4

0,3

0,2

0,1

0 5 10 15 20 25

UK

Germany

France

Italy

Netherlands

Sweden

Spain

Norway

Denmark

Switzerland

Finland

Austria

Belgium

Portugal

Total online spending (Bio €)

2002 2007

€€20 Bio20 Bio in 2002in 2002€€20 Bio20 Bio in 2002in 2002

5,8 5,6 5,53,4

2,2 2,1 1,9 1,4

10,5

26,1

11,713%

2%2%3%3%

4%7%7%7%

33%

15%

0

5

10

15

20

25

30

Trave

l

Groce

ries

PCs

Books

Appar

el

Elect

ronic

s

Softw

are

Perip

heral

s

Musi

c

Ticke

ts

Other

s

0%

5%

10%

15%

20%

25%

30%

35%

Online spending % of total online spending



11

B2B B2B versus Bversus B2C eCommerce2C eCommerce

Retail consumers are:Business customers are:

Access/ familiarity

Confidence – Comfortable with electronic transactions

– Lingering reservations about transacting on-line

Incentive

– More brand conscious

– Focused on value and price

– More cost conscious

– More “bottom line” oriented

– Still lacking high speed internet access at home

– Challenged by rapidly evolving technology

– Technology enabled on a broad scale

– Readily accessible to professional training

The Greater Growth in B2B eCommerce Is Driven by Fundamental Differences Between B2B and B2C eCommerce



12

Telecommunication developments are key Telecommunication developments are key to boost internet penetration in Europeto boost internet penetration in Europe

By end 2007, about 22% of the European households should use a broadband connection (ADSL, cable, fiber) to access internet thanks to the democratisation/penetration of ADSL and an increased use of existing cable infrastructure

Wireless phones will also become an increasing internet access gateway in Europe when data transmission capacity increases (3rd generation mobiles)

Broadband penetration in Western Europe 2001-2007

Wireless penetration in Western Europe 2001-2006

3.515

7.249

11.687

30.481

37.070

23.729

17.27122%

18%14%

7%

11%

2%5%

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

2001 2002 2003 2004 2005 2006 2007

0%

10%

20%

30%

40%

50%

Broadband Households Broadband Household Penetration

Per

cen

tag

e o

f H

ou

seh

old

s

Bro

ad

ba

nd H

ouse

hol

ds

in thousands

Belgium has one of the highestbroadband penetration from 9% in

2001 to 28% in 2007

Belgium has one of the highestbroadband penetration from 9% in

2001 to 28% in 2007

Sources: Jupiter MMXI Broadband Internet Model, October 2001 (Western Europe only)

InSites, Belgium is European frontrunner in broadband Internet use, November 2001

291 294276 285

261

237

74%73%72%70%

60%66%

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006

0%

20%

40%

60%

80%

100%

Wireless subscribers in western Europe Wireless penetration

Per

cen

tag

e o

f W

ire

less

Pe

netr

atio

n

Num

ber

of

Wir

ele

ss S

ub

scri

be

rs in

We

ste

rn E

uro

pe

Source: Jupiter MMXI European Wireless Model, 11/01 (Western Europe only)

in millions



13

Telecommunication developments are key Telecommunication developments are key to boost internet penetration in Europe/2to boost internet penetration in Europe/2

Internet-enabled handsets (UMTS, WAP, PAD…) penetration increases

However, use of internet-enabled handsets to access internet and trade via the internet remains limited (a.o. WAP technology did not meet expectations)

Data transmission capacity increase is expected to boost the use of third generation phones in the coming years

Internet-enabled handsets and penetration in Western Europe 2001-2006

Active wireless internet users in Western Europe 2001-2006

in millions

Source: Jupiter MMXI European Wireless Model, November 2001 (Western Europe only)

171 174

138

167

82

32

59%59%59%

50%

13%

32%

0

50

100

150

200

2001 2002 2003 2004 2005 2006

0%

20%

40%

60%

80%

100%

Number of Internet-enabled handsets

Penetration of Internet-enabled handsets

Pen

etr

atio

n o

f In

tern

et-E

nab

led

Ha

nd

sets

Num

ber

of

Inte

rne

t-E

na

ble

d

H

and

sets

in W

este

rn E

uro

pe

87 90

7

22

75

48

31%

8%3%

17%

26%30%

0

20

40

60

80

100

2001 2002 2003 2004 2005 2006

0%

20%

40%

60%

80%

100%

Active wireless Internet users

Percentage of active wireless subscribers

in millions

Per

cen

tag

e o

f W

ire

less

Su

bscr

ibe

rs

Who

Are

Act

ive

Use

rs

Num

ber

of

Act

ive

Wir

ele

ss I

nte

rne

t U

sers

in

We

ste

rn E

uro

pe



14

Digital TV is another technology facilitating Digital TV is another technology facilitating internet accessinternet access

TV Households in Western Europe 1999

Households (in millions)

Device Platform Features

Analog TV One-way transmission

Analog signal (via satellite with set-top box)

DTV One-way transmission

Digital signal and set-top box

iDTV Two-way interactive services

Digital signal and set-top box

Source: Jupiter Strategic Planning Services: European Digital TV, markets and platforms, 2000

Average Penetration of broadcast platforms in Western Europe:

Terrestrial:50%Cable: 31%

Satellite: 26,8%

0,0

0,875

0,11,9

44

5,53,0

18

0,0 15,0 30,0 45,0 60,0 75,0

Terrestrial

Cable

Satellite

iDTV DTV Analog

0

20

40

60

80

100

120

140

160

180

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

iDTV DTV Analog-only

45

108

Hou

seh

old

s (i

n m

illio

ns)

TV Households in Western Europe 1999-2008

IDTV penetration is relying on both interactive device platforms (PC’s, TV’s, PDA, smartphones…) and broadcasts platforms (terrestrial, cable, satellite)

Increase of broadcasters’bandwith

New services and revenue streams

New content

In the long-term, nearly all DTV households will be iDTV-enabled



15

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Digital Terrestrial Digital Cable Digital Satellite All Analog

Digital TV is another technology facilitating Digital TV is another technology facilitating internet access/2internet access/2

Source: Jupiter Strategic Planning Services: European Digital TV, markets and platforms, 2000

Digital and Analog TV penetration in Western Europe 1999-2008

2001 split between households:

All analog: 137,5 MDigital Terrestrial: 0,8 MDigital Cable: 2 MDigital Satellite: 8,5M

2008 split between households:

All analog: 44,8 MDigital Terrestrial: 29,9MDigital Cable: 39,4 MDigital Satellite: 38,8M

Low takeoff is observed due to high investments required for the solution:

- Costs to broadcasters of DTV transmission (license, access, bandwidth,…)

- Conversion and upgrade costs for new or adapted modulation standard (e.g.:$7-10M for a

new station, $1-3M to convert an existing one)

- Development and manufacturing costs (station, antenna, components,broadband devices,

broadcast platforms,…)

- Partnerships costs (opportunity costs due to various intermediaries)

- Uncertainty of consumer demand: cultural and socio-demographical aspects

- Broadband and Telco's market national and regional characteristics

- Cable operators don’t have the money (huge debt structure)

- Limited opportunities in iTV fees (retail market)



16

Cooperative Regulatory EnvironmentCooperative Regulatory Environment

Pricing of internet services and free competition

Dial up

ADSL

Internet security (e.g. payments)

Legal recognition of digital signatures

Application of commercial laws



17





AgendaAgenda



18

Value driversValue drivers

Value Creation Levers Opportunities Benefits

ValueValueCreationCreation

Sales Volume

Price

Sales & General admin. costs

COGS

Reach / access to new marketsNew value propositionsCreation of new product / servicesDeeper customer relationships

Brand image buildingDemand-supply matchingEffective customer segmentation

Sourcing price reductionBetter price-value matchingCost-to-serve improvement

Transaction cost reduction Logistics network efficiencyEffective marketingEnforcing company policy compliance

Logistics network productivityimprovementFleet productivity improvement

Inventory level optimizationTime-to-market reductionForecast accuracy improvement

Working Capital

Fixed Assets

RevenueEnhancement

CostReduction

Asset Intensity Reduction

Revenueenhancements

Typical: 10-20%

Best case: 55%

Cost reduction

Typical: 20-45%

Best case: 70%

Asset intensityreduction

Typical: 20-60%

Best case:90%

Share PriceShare PriceEnhance External Communication

Increase Brand AcceptanceMarket

Perception

See other leversOperational & Financial

Performance



19

Revenues driversRevenues drivers

Revenue

Enhancement

New Value Propositions

Benefits

New Channels/Reach

Individualized Customer Lifecycle

Customized offerings (one-to-one marketing) Value pricing Individualized shop/buy/own experience Micro-transactions Intelligent products/services

eCommerce Drivers

Electronic advertising

Electronic merchandising

Electronic sales

Electronic servicing/support

Improved contact rates

Improved targeting

Improved consideration rates

Improved closing rates (100% Dell)

Higher share of wallet (up to 300% e.g. Schwab)

Improved customer retention



20

Cost driversCost drivers

Typical Savings Level

eBusiness

ExternalInteractions

Selling toCustomers

Buying fromSuppliers

InternalInteractions

Asset Utilization

OrganizationalEfficiency

Category

20-30%

20-30%

50-80%

25-50%

10-25%

20-30%

5-15%

20-50%

30-45%

30-55%

Human Resource Management

Technology Facilitated Training

IT Maintenance/Support

Supply Chain Operating Costs

Inventory Carrying Cost

Procurement Process

Procurement Spend

Sales and Marketing

Customer Service

Technical Support

ROUGH ESTIMATES



21

Asset Intensity Reduction

Increase Working Capital Turnover

Asset Intensity Asset Intensity driversdrivers

Reduced Physical Infrastructure

Improved inventory turns from value network compression

Increased receivable turns from eCommerce enabled settlement

BenefitseCommerce Drivers

Reduced need for physical storefront

Reduced need for warehousing



22





AgendaAgenda



23

eSupply Side eDemand Side

eMediary

eEnterprise

After Sales

SupportSalesMarketingProductionProcurementProduct

Development

Application areas for eBusinessApplication areas for eBusiness



24


eMediary

eEnterprise

After Sales


Development

Supply side eSupply side eBusinessBusiness

Supply side B2B eCommerce offers tremendous opportunities for cost reduction and operational improvements



25

Supply Side eCommerce Opportunities Definition

eProcurement Purchasing of hard goods and services Supplier selection Order placement Payment

eSupply Chain Management Management of the supply process Demand/Supply forecasting Inventory management Quality assurance

eEnabled Collaborative Engineering and Design

Work with suppliers to design and engineer products for competitive advantage Joint product development Prototype development Testing

SSupply-side eupply-side eBusinessBusiness



26

Fiat Reduced Product Development Costs by Fiat Reduced Product Development Costs by Testing Auto Design Concepts on the InternetTesting Auto Design Concepts on the Internet

Objective

Description

Results

Evaluate users’ needs for the next generation Punto, Fiat’s best selling car

Customers answered a Web-based survey asking them to:

indicate auto design preferences

describe what they hate in a car

suggest ideas for new features

Customers designed a car, selecting from various styles and features; final result displayed on-screen

Software captured result and traced steps customers took to evaluate and select options

Received over 3,000 surveys totaling 30,000 pages of data in three months

Survey participants were in Fiat’s key target segment

Information influenced styling and concept designs

Test cost $35,000 -- about the cost of running multiple focus groups



27

Fujitsu Fujitsu uused eProcurement sed eProcurement improve its improve its procurement processesprocurement processes

Objective

Empower and enforcing best procurement practices to drive procurement efficiency.

Description

Procurement practices include: on-contract compliance, vendor consolidation, spend waste reduction, and asset reuse

Procurement tied in with ERP applications and runs on PCs through a web browser

Program allows:

Automatically clearing requests through approval and purchasing

Reduces ability to engage in “maverick” purchases of higher-cost products through streamlined process

Allows analysis of buying patterns

Enables sharing data with suppliers, creating fact-based contract negotiating leverage

Results

Within a year since deploying the program, Fujitsu realized a 2-4% savings

Estimates project a 12-27% savings in operational spending

Approval process shortened to a standard of 24 hours from a less predictable timeline. Examples of poor performance of past requisition orders include a $750 order “lost” for 2 months

System rolled out to approximately 350 employees

Source: Electronic Commerce, Company web site, CommerceOne Web site

CommerceOne Procurement Software Capability



28

DDemand side eemand side eBusinessBusiness


eMediary

eEnterprise

After Sales


Development

Participating in demand side eCommerce helps to achieve revenue enhancements, reduced SG&A costs and increased customer satisfaction



29

Demand Side eCommerce Opportunities Definition

Management of the distribution process Collaborating with supply chain partners Demand forecasting Integration with customer systems Velocity: rapidly pulling together the right partners and

minimum scale to deliver compelling new product/service offerings

eSupply ChainManagement

Sales and marketing of products and services Tailored online catalogs and ordering Sharing inventory and production capacity information Online order fulfillment and payment

eSales & Service

Customer management services Self-service for customer inquiries Tailored service offerings Integration with customer systems Multiple resolution channels

eSupport

DDemand side eemand side eBusinessBusiness



30

Dell Computer Dell Computer uused the Internet to sed the Internet to improve its sales improve its sales processes processes to to ccorporationsorporations

Objective

Reduce the costs associated with processing a purchase order and create one-to-one relationships with top customers

Description

Ranked number one in corporate PC sales. Internet reached $30 million per day (8/99)

Created 27,000 private intranet sites for corporate customers in two and half years since the program’s debut

Supply PC’s to numerous blue-chip customers, including Bayer, Toyota, Amazon.com, and Boeing

Results

Developed Premier Pages, a web site customized for each corporate customer

Allows customers to create custom configurations, contact customer support, place orders, and track inventory

Connects directly to customer procurement managers for order approval, submission, and tracking

Provides dynamic product pricing

Source: Company Web Site, Industry Reports



31

Cisco Is Cisco Is oone of the ne of the lleaders in eaders in iimplementing mplementing ddemand emand sside B2B eCommerce ide B2B eCommerce ccapabilitiesapabilities

eSales & Marketing

Electronic catalogs, online sales support and order tracking reduce inaccurate orders from one in three to one in fifteen

“Commerce Agents” to automate and facilitate a dozen different functions

eCustomer Service

Over 80% of inquires previously handled by the call center are now answered electronically reducing support staff by 300%.

Savings of $2-15 per inquiry translate into $10.5M saved monthly

Customers receive extensive product information including email alerts on software bugs, product documentation, product pricing and software downloads

eSupply Chain Management

55% of orders now pass directly from Cisco to their suppliers

Source: The Economist, “When Companies Connect,” June 26, 1999. The Gartner Group



32


The eEnterpriseThe eEnterprise

eMediary

eEnterprise

After Sales


Development

The adoption of eCommerce within the enterprise can result in significant operating efficiencies and increased employee satisfaction



33

Enterprise eCommerce Opportunities Definition

eHR focuses on leveraging electronic channels for recruiting, orienting, developing and managing human capital more effectively and efficiently

eHR

Use of generic internet technology to enable effective internal communications & collaboration– Inter-office communication– Knowledge management and exchange– Document sharing

Intranet

The eEnterpriseThe eEnterprise



34

UUse of eHR se of eHR to achieveto achieve eefficiencies in fficiencies in aadministrative dministrative pprocesses and rocesses and iincrease ncrease eemployee mployee ssatisfactionatisfaction

Objective

Description

Results

Produced >$2.5m HR and line management cost reductions

Reduced total cycle time for processing and approval from weeks to hours

Empowered line managers to manage human capital more effectively

Improved employee satisfaction with HR and improved HR department credibility with their customers

Reduce the time required for HR administration and cycle time for processing, and thus improving quality of service to HR customers

Exploited Intranet technologies to develop a self-service application focused on the key HR processes for employees and managers

Built a standards-based, open network architecture

Created a pilot application and distributed it to approximately 100 managers for technical and functional feedback (larger rollout to follow)



35

UUse of eHR se of eHR to achieveto achieve eefficiencies in fficiencies in aadministrative dministrative pprocesses and rocesses and iincrease ncrease eemployee mployee ssatisfactionatisfaction

AttractAttract

RecruitingRecruiting

• Jobs ReqsJobs Reqs• ReferralsReferrals• Applicant Applicant

ProcessProcess

DeployDeploy

DeploymentDeployment

• AssignmentAssignment• Skills TrackingSkills Tracking

DevelopDevelop

LearningLearning

• Training adminTraining admin• Online deliveryOnline delivery• Online testingOnline testing

RewardReward

RewardReward

• Benefits/Life Benefits/Life Events-Events-RetirementRetirement, , stock optionsstock options

• PayrollPayroll• Time and Time and

ExpensesExpenses

ExitExit

Retirement and Retirement and severanceseverance

• Redeployment/Redeployment/outplacement mgmtoutplacement mgmt

• Pension and exit Pension and exit program adminprogram admin

PerformPerform

Performance Performance MgmtMgmt

• AppraisalsAppraisals• 360’s360’s• Goal SettingGoal Setting• Job profile Job profile

maintenancemaintenancewww.mycandidature.com

E-schedulinghttps.mylearning.accenture.com

GAT

http://myHoldings.accenture.com, e-zone

artes



36

The Introduction of an Intranet Enabled Cisco to The Introduction of an Intranet Enabled Cisco to Optimize Its Workforce Performance Optimize Its Workforce Performance

Objective

Description

Results Increased employee satisfaction/ knowledge sharing Annual financial savings of $24m

Reduced operating expense 11$M Headcount avoidance 2$M Productivity increase 5$M Improved info flow 16$M Maintenance & development -10$M

1% added value of getting info/learning 85$M

Cope with rapid growth without increasing operating costs as well as shortening lead times.

Set of Intranet tools that provides scalability through automation & self service, including:

personalized portal employee administration/ directory recruiting & hiring payroll, expenses reporting & compensation review training system registration employee communications



37

ShellShell

Objective

Drastically improve human performance by leveraging intranet for communications & knowledge sharing.

Description

Results

Pan-European intranet linking 31 operating units - functionality includes communications, training & coaching

Provides training tools, recommendations & guidance

Provides tools & guidance for coaching

Access to personnel database with personnel profile

Real time discussion forums & feedback section

More efficient shared service organization & processes - $m in reduced costs

More efficient HR processes - Open Resourcing High quality internal communications and knowledge- based

communities Innovative supplier relations - Honeywell/JWT Improved customer service



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The eMediariesThe eMediaries

eMediary

eEnterprise

After Sales


Development



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Emediaries descriptionEmediaries description

“Electronic Hub”

Market making mechanism

Industry or business function specific

eMediary Characteristics:

Customer

Distributor

Manufacturer

Suppliers

eMediaries

Source: Business 2.0, “Let’s Get Vertical”, Sept 1999

Organize industries of fragmented buyers and sellers

Create new distribution channels

Bring new products and services to market

Value of eMediaries:



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Value addedValue added

Provide efficient venue to buy/sell surplus inventory or exchange excess capacity

Create liquidity for new products and services

eCommerce Intermediaries

Aggregate Buyers and Suppliers

Reduce Costs

Create New Marketplaces

Improved matching of potential buyers and sellers in a market

Greater access and options for both buyers and sellers

Reduced searching and information transfer costs

Standardized buyer procurement

Source: September 1999 Business 2.0, “Let’s Get Vertical”



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Two Two kkey ey mmodels odels ddefine efine the the wway eMediaries ay eMediaries aare re eestablished and stablished and sstructuredtructured

Pla

stic

s

Ste

el

Procurement

Ch

em

ica

ls

Vertical eMediaries

Horizontal eMediaries

The Business-to Business Web

Examples:

Examples:

eSteel.com (New View Technologies)

PlasticsNet.comChemConnect.com

Ariba, CommerceOne, Oracle, i2 Technologies, SAP,…

Source: September 1999 Business 2.0, “Let’s Get Vertical”

eCatalogs



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Examples of vExamples of vertical eMediariesertical eMediaries

Industry ObjectiveCompany

Financial Services Act as electronic go-between for mortgage originators and the

secondary mortgage market (lenders, brokers and corporates)

Connect buyers with suppliers of paper and related equipment through electronic trading floor and classifieds

Provide a global electronic marketplace for the selling and purchasing of steel

Serve as an intermediary for electronics manufacturers and electronic parts suppliersElectronics

Industrial Products

Chemicals

Paper

Provide an online marketplace for buyers and sellers of life science chemicals products

Plastics Provides a sales and communications network for plastics industry players



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Sample of hSample of horizontal eMediariesorizontal eMediaries

Business Functions Objective

Automates procurement of non-production supplies

Creates an on-line MRO market for capital asset intensive industries

Company

Energy Management

Acquisition of non-production supplies

MRO procurement

Automates indirect goods and services supply chain activities

Logistics

Help businesses understand and manage their energy consumption for more effective use of power

Connect shippers who have loads they want to move cheaply with fleet managers who have space to fill

Rapid implementation (ASP) of ecommerce solutions for industrial and high technology companies (engineered products)

ecommerce, ecatalogs



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AgendaAgenda



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Marketplaces profilingMarketplaces profiling

In Q42001, Booz Hamilton identified 2,233 e marketplaces and profiled 1,802 of them :

Type of model % of marketplaces

Comments Examples

Independent 92% Developed by pure play operators

6% of marketplaces listed. Others funded by private equity

Focus on cash generation

Autotradecenter.com

Consortium 5% or 92 sites Several industry players join forces to create a common forum for the exchange of goods and services

Deep pocketed founders

Possible difficulties to align interests of all parties

Covisint.com, transora.com, …

Private 3% or 57 sites One company develops a site for its customers and suppliers to facilitate transactions up and down the value chain

Most common function is online cataloging

Dell.com



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Marketplaces profiling (cont’d)Marketplaces profiling (cont’d)

In Q42001, Booz Hamilton identified 2,233 e marketplaces and profiled 1,802 of them :

38%

27%

10%

5%

21%

North America

Europe

Asia

Latin America

Global

Core service % offering

Information exchange 65%

Digital catalogs 63%

Online auctions 55%

Logistics services 21%

Supply chain planning 8%

Design collaboration 4%

Other value added services 45%

Geographic breakdown Service offering



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Marketplaces profiling (cont’d)Marketplaces profiling (cont’d)

With the help of the Darden Graduate School of Business at the University of Virginia, Booz Allen revisited a large sample of the e-marketplace sites (approx 1,100 out of 1,802) to document the failure rates in Q32002 :

– 45% of the e-marketplace have disappeared• 21% of consortium-based sites • More than 45% of independent sites

– Failure rates do not differ by geography

– Differences by sector• 60% of e-marketplaces in textile and advertising/medi failed• 35% of e-marketplaces in financial services, paper, aerospace and printing failed• 45% of generalist sites failed

Documents

eBusiness - Introduction Pascale Vande Velde