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Todd Elizalde Director, Internet Commerce PowerPoint PPT Presentation

Todd Elizalde Director, Internet Commerce 1113_07F7_c1 Business to Business Electronic Commerce and Support 1152_04F8_c1 Agenda Internet Commerce Business Strategy Strategy & Goals Status & Future Direction CCO Demonstration CCO Business Impact Internet Commerce Business Strategy

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Todd elizalde director internet commerce l.jpg

Todd Elizalde

Director, Internet Commerce

1113_07F7_c1


Business to business electronic commerce and support l.jpg

Business to Business Electronic Commerce and Support

1152_04F8_c1


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Agenda

  • Internet Commerce Business Strategy

    • Strategy & Goals

    • Status & Future Direction

  • CCO Demonstration

  • CCO Business Impact


Internet commerce business strategy l.jpg

Internet Commerce Business Strategy


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Cisco Order Management: 1995

FY95 Results

* 80% orders entered same day

* 60% booked/sched same day

* 33% rework rate

* $5M bookings/person

* Satisfaction < 3.9/5.0

Customer

Database

Customer Service

Sales

Fax

Fax


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Cisco Order Management Vision

FY99 Goals

* 100% orders entered same day

* 95% booked/sched same day

* < 1% rework rate electronically

* $10M bookings/person

* Satisfaction = 4.2/5.0

Database

Customer

Customer Service

Sales

Fax

Fax


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Internet Commerce Strategy

FY ’99/00

  • IC Today

  • Order status

  • Pricing information

  • Configuration assistance

  • Order all products

LOB Focused

Commerce

FY ’98/99

Integrated

Ordering

FY ’97/98

Internet Ordering

  • FY ’99 Goals

  • 730K IC transactions/mo

  • $2.5B Bookings (IPC/EDI)

  • $9B annualized run-rate

  • 4.35/5.0 satisfaction

FY ’96/97

Commerce

Agents

“Old Way”

Phase 0

Phase I

Phase II

Phase III

Phase IV


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Internet Commerce Goals

  • Fiscal 1996 Goals

    • Automate 50% of standard queries

    • Increase customer satisfaction to 4.0/5.0

  • Fiscal 1997 Goals

    • Automate 75% of standard queries

    • Automate 30% of Cisco order volume

    • Increase customer satisfaction to 4.15/5.0


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Internet Commerce Goals

  • Fiscal 1998 Goals

    • Automate 90% of standard queries

    • Automate 60% of Cisco order volume

    • Autobook 70% of Electronic order volume

    • Increase customer satisfaction to 4.2/5.0

  • Fiscal 1999 Goals

    • Automate 80% of Cisco order volume

    • Achieve 90% autobooking of Cisco order volume

    • Increase customer satisfaction to 4.35


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Internet Commerce Applications

  • Ordering Tool

  • Invoice

  • Configuration

  • Pricing

  • Status

  • Contract Status

  • Service Order

  • Lead Times


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Phase I Status: Commerce Tools

  • Capabilities and statistics:

    • Status, pricing, configuration assistance available via Commerce Tools.

    • 90% of queries automated.

    • Customer satisfaction 4.3+

Cisco Has Established a New Benchmark in Delivering Customer Service… Catch Up, Anyone? —Dataquest

Q4 ’98

40K

550K

4.2

Q4 ’99

53K

730K

4.35

Results/Checkpoints

Registered Users

Monthly Transactions

Satisfaction

Q4 ’97

16K

320K

4.1+


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Phase I Status: Commerce Tools

  • Invoice

    • Check status of invoice and account information

  • Configuration

    • Provides access to configuration rules across Cisco’s product line

  • Pricing

    • Enables users to search prices based on product family, product description, or product number with download capability

  • Status

    • Track progress and status of Cisco orders with electronic proof of delivery

  • Contract Status

    • Review contract information including service and support coverage and installation sites of contracted equipment


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Phase I Status: Commerce Tools

  • Service Order Submit

    • Submit and/or check status of service orders and receive information via screen, fax or e-mail

  • Service Order Parts

    • Access to Cisco’s Service Parts inventory list

  • Service Order Status

    • Track progress and status of service orders and review via links provided to Federal Express and UPS Web sites

  • Lead Times

    • Provides entitled users current lead times of Cisco products


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Phase I Status: Commerce Tools

  • Upgrade

    • Allows users under contract to submit online requests for software and hardware upgrades.

  • Notification

    • Proactive agent enables users to be automatically notified regarding order acknowledgements and pricing updates.

  • IPC Extract

    • Allows users to view orders submitted via IPC and download copies to their desktop for integration into their local reporting or purchasing systems.


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Phase II Status:Internet Ordering

  • Capabilities and statistics:

    • All Cisco products and services orderable via WWW and EDI

    • > $2.6B bookings in Q3 FY’99

    • $10.2B run-rate ($28.1M/1200 orders per day)

    • Customer satisfaction 4.2

Cisco’s Online Sales Clearly Establish CCO as the Top Revenue Generator on the Web Today. —Communications Week

Q4 ’98

1000

60%

4.2

Q4 ’99

1300

80%

4.35

Results/Checkpoints

Registered Customer Sites

Ordering Run Rate

Satisfaction

Q4 ’97

650

32%

4.1


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Phase II Status:Internet Commerce Benefits

  • Savings in productivity

    • 100% accuracy of orders placed through Internet Commerce applications

    • Many companies, as a result of accurate orders, increase their productivity by up to 20%

  • Faster product delivery

    • Domestic users have been experiencing an increase in delivery times by three to five days

    • International users have been experiencing an increase in delivery times by five to seven days

    • Large multi-country companies using Internet Commerce report a one week savings in lead time due to no rework


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Phase II Status:Ordering Tool

  • Features:

    • Configure, price, route, and submit online

    • Order routing enables network to route within users’ companies

    • Submit online and receive prompt confirmation of receipt

    • Utilize supporting applications for orders inquiries

  • Benefits:

    • Current configuration and pricing information results in less rework with improved lead times of two to three days

    • Control and manage ordering process with improved user productivity of 20% per order


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Phase II Status:Ordering

  • Q3 FY ‘99 Results

    • EMEA 83%

    • US 64%

    • Channels67%

    • Asia 88%

    • Latin Am 96%

    • Cisco overall76%


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May 1999

Registered Users

58,430

Total Inquiries

479,611

Order Status

264,524

CCO Internet Commerce Tools

Usage


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Phase II Status:Partner validation

Cisco Partner, Sprint

“The error rate for orders processed prior to using the online ordering system was 20 percent. Today that has decreased to 2 percent.”

—Frank Santafemia, Program Manager

Sprint Corporation


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Phase II Status:Partner validation

Cisco Partner Data Systems West

“The configuration and pricing software within the ordering application reduces order errors to almost zero while reducing lead time. I would estimate an increase in productivity for the ordering process of 20 to 25 percent and, in the overall sales cycle, a productivity increase of 10 percent.”

—Jamie Burton, Account Manager,

Data Systems West


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Phase II Status:Partner validation

Cisco Partner GE Information Technology

“The configuration and ordering applications save me probably a couple of hours a day. Without it I’d have to fax orders in and confirm that they were received. Orders are configured correctly, which means we receive product faster. It’s a great tool, and easy to use.”

—Barbara Cronin, Buyer

GE Information Technology


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Phase II Status:Partner validation

Cisco Partner Datacom Austria

“It’s not only a time savings for me, but also for my colleagues who must enter orders into our computer system. It saves them several hours per week.”

—Peter Pallwein, Purchasing Department

Datacom Austria


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Phase III:Plans and Checkpoints

  • Integrated Commerce Solution:

    • Full integration with partner IT systems: partner enters order once!

    • Electronic orders 100% accurate via link with Cisco business rules etc!

    • 20% of Cisco’s Orders.

Cisco Has Built an Outstanding E-Commerce Function in its Cisco Connection Web Site. —PC Week

Checkpoints/Plans

Cumulative Integrations

Cumulative Bookings %

Satisfaction

Q4 ’97

0

0%

Q4 ’98

10-12

10-15%

4.3

Q4 ’99

20-25

25-30%

4.4


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Phase IV:Plans and Checkpoints

  • Capabilities:

    • “Reseller Marketplace” allowing resellers to price, configure and submit orders to distributors

    • “Configuration Express” tool allowing SP customers to pre-configure Cisco hardware before it leaves the factory.

Cisco Has Sped so Far Out in Front with its Electronic Commerce Efforts that the Competition Can’t Even See Its Dust Anymore.—Internet Week

Checkpoints/Plans

Reseller Marketplace Bookings

Configuration Express Orders

Satisfaction

Q4 ’99

20%

5,000

4.3


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CCO Demonstration


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Internet Commerce Business Impact


Cco internet commerce tools28 l.jpg

May 1999

Registered Users

58,430

Total Inquiries

479,611

Order Status

264,524

CCO Internet Commerce Tools

Usage


Cco internet commerce l.jpg

May 1999

Registered Companies

1,432

Orders to Date through IC

446,416

Orders-per-Day Run Rate

28.1 Million

Yearly Run Rate

10.2 Billion

Satisfaction

4.13

CCO Internet Commerce

77%

76%

75%

74%

73%

72%

70%

69%

66%

64%

64%

57%

55%

Percent of Usage


Cco internet commerce usage history l.jpg

May 1999

Registered Companies

1,432

Orders to Date through IC

446,416

Orders-per-Day Run Rate

28.1 Million

Yearly Run Rate

10.2 Billion

Satisfaction

4.13

CCO Internet Commerce Usage History

77

76

75

74

73

72

70

69

66

64

64

57

55

52

47

42

41

39

38

37

36

33

Percent of Usage

32

26

23

20

16

15

13

12

9

7

5

4


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CCO Internet Commerce Revenue

2.6 B

2.1 B

1.9 B

1.4 B

960 M

778 M

629 M

399 M

231 M

126 M

Revenue

81 M


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Reg. User

Satisfaction

4.21

Reg. User

Satisfaction

3.4

May 1999

Registered Users

267,549

Questions Answered

80%

CCO Logins and Satisfaction

Total Logins


Cco software and tech support l.jpg

SW Downloads

Tech Support

Applications

CCO Software and Tech Support

May 1999

Usage

Software Downloads

380,318

Tech Support Applications

337,284


Cco awards l.jpg

+

Very InnovativePractices

CommerceCategory

CCO Awards

1995

1997

1998

1999

Business 2.0

#1 of the 100 Hottest

Companies on the Net

1996

New Media

Invision Award


Employee mix l.jpg

1995

70% Customer Service Representatives

15% Regular Order Entry

15% Temp Order Entry

1999

80% Customer Service Representatives

10% Temp Order Entry

10% Customer Business Solutions

Employee Mix


Where we spend our time l.jpg

1995

70% Customer Service

30% Order Entry

1999

80% Customer Service

10% Order Entry

10% Customer Business Solutions

Where We Spend Our Time


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CBS Mission

  • Improve customer satisfaction by Identifying and implementing business process improvements to make it easier for strategic customers to do business with Cisco.


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Who are we?

CBS - Global Alliances

  • Hewlett Packard & Earthlink

  • AT&T & EDS

  • Intel, Microsoft, Oracle

  • GTE

  • Alcatel


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Tactical -vs- Strategic

CSR - Tactical

  • Action ---> Reaction

  • Order Management

  • Immediate Problem Solving

  • Transactional

  • Understand/Manipulate Order Process


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Tactical -vs- Strategic

CBS - Strategic

  • Analytical ---> Proactive

  • Process Management

  • Planning

  • Multi-level Engagement

  • Understand Customer’s Business, Market, Competition and Cisco


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CBS - Goals

  • Achieve Customer Sat Rating of 4.3

  • Implement a Internet Commerce strategy

  • Account Specific Business Process Improvement Goals


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Example Goals - Microsoft

By close of Q4, FY ‘99:

  • Achieve Cust Sat Score = 4.6

  • NC Order Submission = 50%

  • DSO < 30 days

  • Reduce Order Cycle Time by 60%

  • Reduce Recv’g Times by 90%


  • Login