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e-volution – Road map for e-business implementation in Extended Enterprises Deliverable 4.2, Annex: German test case documentation. Table of content. Introduction Starting point Use case test documentation Module 1 Module 2 Module 3 Module 4 Next steps. Introduction.

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  1. e-volution – Road map for e-business implementation in Extended EnterprisesDeliverable 4.2, Annex: German test case documentation

  2. Table of content • Introduction • Starting point • Use case test documentation • Module 1 • Module 2 • Module 3 • Module 4 • Next steps

  3. Introduction

  4. A vertical Extended Enterprise constellation • Business collaborations between enterprises from different value chain levels - each level adds value to the material till the final product • Final producer as interface to the consumer market • Customer-supplier relationships • EE characteristics • Organisational integration along the value chain • Coordination, alignment, extension and integration of business processes and activities • Technical integration along the value chain • Information exchange, sharing and extended information processes and for transaction cost management b2b or b2c customer final manufacturer b2b 1st tier suppliers B2b n-tier suppliers

  5. Collaborative project approach for vertical Extended Enterprise Enterprise 1 Enterprise 2 Strategic planning of business objectives Strategic planning of business objectives Strategic environmental analysis and forecasting Strategic organisational business analysis Strategic organisational business analysis Strategic environmental analysis and forecasting Extended, collaborative business conception, design, implementation and operation activities Strategy and roadmap formulation Strategy and roadmap formulation Strategy and roadmap implementation Strategy and roadmap implementation

  6. A horizontal Extended Enterprise constellation • Enterprises of same production or market level • Development of potentials from economy of scale or specialisation • Products/services are related by production or process technology • Same or almost business enables development of synergies and collaborative business: common market research, procurement, and/or development activities; specialisation; common customers service and sales organisation, etc. • each partner has potentially direct contact the end-user market • EE characteristics • Organisational integration in one value chain step • Coordination, alignment, extension and integration of business processes and activities • Technical integration along the value chain • Information exchange, sharing and extended information processes and for transaction cost management b2b or b2c customer manufacturers Vertical EE n tier supplier

  7. Collaborative project approach for horizontal Extended Enterprise Enterprise 1 Enterprise 2 Strategic planning of business objectives Strategic planning of business objectives Extended, collaborative business conception, design, implementation and operation activities Strategic organisational business and environmental analysis and forecasting Strategic organisational business and environmental analysis and forecasting Strategy and roadmap formulation Strategy and roadmap formulation Strategy and roadmap implementation Strategy and roadmap implementation

  8. Horizontal vs. vertical Extended Enterprise constellation Horizontal Extended Enterprise constellation Vertical Extended Enterprise constellation Customer Customer • Common organisational analysis • Common market analysis • Common vision • Common mission • Corresponding business objectives • Common organisational analysis • Common market analysis • Common vision • Common mission • Corresponding business objectives

  9. Starting point

  10. Phases and status of German EE test case Communication establishment Stabilisation of collaboration Business partner integration • Definition of enterprise role in the network • Project coordinator, customer coordinator, network coordinator, development partner, production partner, service partner, quality manager, infrastructure manager • Definition, i.e. personalisation of responsibilities and assignment of resources • Agreement on communication procedures • Stabilisation of collaboration and definition of coordination mechanisms • Benefits, IPR handling, penalties, costs/profit assignment • Definition of inter-enterprise processes and workflows • Extension of enterprise boarders • Information sharing and ICT-integration and sharing • Business process and workflow integration • Cultural and social integration

  11. consumers Forwarding agent Specialised dealers, resellers final producer Wooden items 1st tier suppliers n tier suppliers The Extended Enterprise constellation of German test case • Vertical Extended Enterprise constellation of small and medium sized enterprises in a representative industrial sector • Need for increased business process efficiency and effectiveness for all business partners to realise a sustainable and competitive business • Existing, long-term customer supplier business relationships between enterprises which represent different value chain stages and levels • Different e-business status, experiences and resources for e-business in the Extended Enterprise • WINI enterprise is driver and coordinator of ONE specific Extended Enterprise constellation along office furniture value chain

  12. Management of testing process Organisation • Definition of project members at test case user enterprises and test supervisor • Organisation of intra- and inter-enterprise workshops • Phone conferences • Decentralised, distributed work Human resources • Test case users: staff of WINI and Veyhl enterprises • Supervisor: IAF • Back office: software development partners

  13. Use case test documentation

  14. e-volution concept

  15. Methodology and software tool-kit Organisation Analyser StrategyBuilder ProjectManager Content Service Provider Market Analyser

  16. Methodology Module 1: Definition of business objective system Approach • Project bases on existing system of business objectives inside each enterprise • Coordination of business objectives among enterprises along the value chain within the scope of preparatory test case activities (Task 4.1) • Definition of business vision for the Extended Enterprise • Coordination of functional business objectives along the value chain

  17. Management of Methodology Module 1 testing Organisation • Methodology and software training and use supervision by coordinator • Intra- and inter-enterprise workshops • Decentralised, web-technology based activity processing Human and technical resources • Test users: staff from higher and middle management level of test user enterprises • Supervisor: IAF • Back office: software development partners for tool support • Tools: OrganisationAnalyser, third party applications

  18. EE business vision definition Enterprise of the WINI value chain are realising a pilot implementation of an intelligent B2B-network along the office furniture supply and value chain to better serve changing customer requirements, i.e. higher product flexibility with regard to products (higher product variety combines with short delivery times) and accompanying services (application advise, customer specific solutions), to guarantee in the long-term competitiveness with global players in global markets. Innovative e-business solutions paired with motivated and qualified employees are the basement for sustainable economic success.

  19. Example for business objective definitions Kundenzufriedenheit Market perspective Process perspective Antizyklisches Geschäftsfeld aufbauen Neue Marktsegmente aufbauen Prozess effizienter gestalten Umsatzanpassungsinstrumente im Gehaltsbereich installieren Synchrones Produktionssystem weiterentwickeln Exportanteil Erhöhen Marktanteil in margenstarken Segmenten vergrößern Innovative Produkte als Differenzier ungsmerkmal Lieferzeiten verkürzen Lieferzeiten von Echtholz senken Echtholzkompetenz aufbauen Systematische Marktbearbeitung aufbauen Konditionssystem überarbeiten ChangeOffice Prinzipien im Hause anwenden, umsetzen Umsatzplanungsinstrumente verbessern Human perspective Financial perspective Prozessverantwortung stärken Führen mit Kennzahlen/Zielen Kostenstruktur in allen Bereichen optimieren Materialkosten senken Dienstleistungskompetenz ausbauen Agierendes Mitarbeiterverhalten aufbauen Versandkosten senken Ertragsorientiertes Wachstum Source: WINI internal

  20. System Thinking of business objectives Active element: Synchronic production system Made with System Dynamics software Gamma 2.0 by UNICON Management Systeme GmbH, Germany

  21. Strategies derived from System Thinking analysis Strategy for realisation of ‘synchronic production system’ • Design of parallel material and information flows along the value chain, i.e. intra- and inter-enterprise • Information sharing • Process integration • Alignment and integration of organisation structures and processes along the value chain • coordination with and integration of suppliers • Definition of clear process responsibilities along the value chain • Harmonised and integrated planning and scheduling processes with suppliers

  22. Example for value chain interface specification & Customer view: • Demand related arrangement with a higher variety by shorter which means more flexible order specification and small lot sizes • Provision of current informations about planned and actual requirements • Incoming inspection and automatic payment Supplier view: • Order related production • Information about production progress • Demand related production Extended view: • Company comprehensive optimizing of the purchasing process along the supply chain for synchronising of the production processes • Implementing of a software platform for the interplant information exchange about current demands (Dates, varieties, amount) • Increase in productivity by higher flexibility

  23. Example for functional business objective definitions Legend: Status 26.02.04 Amendment 14.04.04

  24. Example for functional business objective definitions

  25. Methodology Module 2: OrganisationAnalysis Approach • Resource based EE situation analysis • e-business use, practices and potentials based on organisational ‘hard’ und ‘soft’ facts • collaborative and clear EE benefit definition • organisational, technological and human e-competences • EE core competence analysis • strategic forecasting and early warning analysis • Definition of organisation related Strengths and Weaknesses as basis for e-business strategy development within the scope of EE concept realisation

  26. Management of Methodology Module 2 testing Organisation • Methodology and software training and use supervision by coordinator • Intra- and inter-enterprise workshops • Decentralised, web-technology based activity processing Human and technical resources • Test users: staff from higher and middle management level of test user enterprises • Supervisor: IAF • Back office: software development partners for tool support • Tools: OrganisationAnalyser, third party applications

  27. EE benefit definition RESOURCE benefit • balancing of partners’ resource deficits • Development of resource compound effect (synergy), addition and/or supplementation RISK benefit • error adjustment due to the availability of increased partner’s know-how within areas such as development, production or marketing. COST benefit • Cost digression can be reached because of size advantages with the help of determined merging activities and a resulting better use of technical and human resources RESULT benefit • broader utilization spectrum of single performances and/or products by the combination of the product and service spectrum, which are brought by the partner into co-operation, to complete performance, which makes the development of the extended and quantitatively attractive field of application possible

  28. Benefit definition from the EE

  29. Benefit definition from the EE

  30. Strategic Early Warning System AnalysisLayer model of EE and its environment Zunahme von dezentralen Unternehmensstrukturen dynamische Management- konzepte Logistik statt Handel Kleine Riesen 1. Finding Kommunikations- technologie prozessorientierte Bürokonzepte Wettbewerbsverschärfung Nachfrage an kommunikative Möbellösungen Handelsplattformen (Internet-Katalogversand) mit Ausstellungsfläche Entwicklung zur Dienstleistungs- gesellschaft Globalisierung der Märkte 2. Filtering CD/Individualisierung bei Großprojekten/-kunden EU-Bildschirm- richtlinie Home-Office Konzentrationsprozeß im Fachhandel Systemanbieter als Wettbewerbsvorteil Miniaturisierung der Produkte Zunahme Call-Center Flexible Nutzung der Räume Results from SEWS analysis with impact on (further)development of competences in the value chain • Online-sales is strategic sales channel for final products and in competition to specialised dealers (stagnation) • Need for complete value chain optimisation Vorfertigung Reduzierte Nettoarbeitsfläche in Großbetrieben Billigmöbel aus Osteuropa EU-Erwei- terung nach Osten Produktent- wicklung Veränderung der Besprech- ungskultur Fuhrpark Fachmarkt als Betriebform der Zukunft PC-Arbeitsplätze Mangelnde Qualifikation des Fach- handels Design Unterneh- mensfusionen Montage Präventive Gesundheits-vorsorge (Ergonomie) Verteuerung von Energie Vertrieb über FH Entwicklung neuer Absatzkanäle "Online" Trend zur besseren Auslastung der Büroräume "Desksharing" ... Funktionalität vs. Prestige Zunahme der Rationalisierung in der Bürowelt Gesellschaftlicher Wandel, Discounter als Sieger „Geiz ist geil“ Einzug neuer Medien Innovation als Wettbewerbs- vorteil Einkommensentwicklung - Trend zu preiswerten Möbeln Unsicherheit Direktgeschäft ohne Handelsstufe Der Kapitalmarkt beeinflußt die Weltkonjunktur Zunahme an Unternehmens- kooperationen

  31. Strategic Early Warning System AnalysisSystem Thinking analysis 3. Formatting 4. Focussing Reactions on trends in EE environment • Active use of information technology (1) and internet (8) for business • Optimisation of procurement and sourcing processes (7)

  32. Core competence definition in the EE Value chain competences consumers Assessment EE core competences Forwarding agent Specialised dealers, resellers WEB final producer Wooden items 1st tier suppliers n tier suppliers

  33. EE competence assessment and development strategies • Definition of selected EE competence incentives

  34. Selected EE competence incentives • Solutions for support of marketing d sales activities of specialised dealers and implementation of branch standards • Flexible but efficient sourcing processes in the sense of Advanced Planning and Scheduling (APS) in all supply tiers • Horizontal cooperation for realisation of synergies in outbound logistics (economy of scale in delivery to customer)

  35. consumers Forwarding agent Specialised dealers, resellers final producer Wooden items 1st tier suppliers n tier suppliers Organisation Strength and Weakness delivery for strategy formulation Organisation analysis E-business strategy and roadmap formulation Strengths & Weaknesses WEB

  36. Methodology Module 3: MarketAnalysis Approach • market based, general qualitative and quantitative EE analysis • product, market, customer analysis for market segmentation • competitor analysis • market attractiveness analysis for products and strategic business units • analysis of enterprise’s relative competitiveness with special focus on e-business related issues • Identification of market related Opportunities and Threats as basis for e-business strategy development within the scope of EE concept realisation

  37. Management of Methodology Module 3 testing Organisation • Methodology and software training and use supervision by coordinator • Intra- and inter-enterprise workshops • Decentralised, web-technology based activity processing Human and technical resources • Test users: staff from higher and middle management level of test user enterprises • Supervisor: IAF • Back office: software development partners for tool support • Tools: MarketAnalyser, Content Service Provider, third party applications

  38. German furniture EE test case constellation and market analysis scope Vertical Extended Enterprise constellation • Individual market analyses of enterprises along the value chain Customer • Common organisational analysis • Common market analysis • Common vision • Common mission • Corresponding business objectives

  39. Market Analysis Veyhl • Competitor definition • Opportunity and threat definition • Product/service definition • Market definition • Product/Market (PM) definition • PM specification (Product level) • PM assessment • Opportunity and threat definition • Strength and weakness compared to competitors • Competitor e-solution • Opportunity and threat definition Internet

  40. Product-Market-Definition (workshop) Subject of further detailed analyses

  41. Product-Market-Definition (MarketAnalyser)

  42. Product-Market specification (years 2001-2004)

  43. Turnover forecasting with neuronal network

  44. Competitive positioning (e.g. competitor O.M.T.)

  45. Product-Market attractiveness assessment

  46. Competitor-Product definition

  47. Assessment of relative competitiveness (e.g. product B 1)

  48. Product-Market attractiveness, competitiveness positioning and market size Basis for development of product, market and competitive strategies

  49. Identified e-business opportunities

  50. Identified e-business Threats

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