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G1RD-CT-2002-00698 e-Volution II – Road map for e-business implementation in Extended Enterprises

G1RD-CT-2002-00698 e-Volution II – Road map for e-business implementation in Extended Enterprises. Final Project Review 15 April 2005. Table of content. Project objectives and approach Management review of project results Road mapping methodology and software tool-kit (test case instance)

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G1RD-CT-2002-00698 e-Volution II – Road map for e-business implementation in Extended Enterprises

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  1. G1RD-CT-2002-00698e-Volution II – Road map for e-business implementation in Extended Enterprises Final Project Review 15 April 2005

  2. Table of content • Project objectives and approach • Management review of project results • Road mapping methodology and software tool-kit (test case instance) • Content Service Provider • Training • Project dissemination • Exploitation and follow-ups • Summary of main achievement • Management review of administrative and financial aspects • Annex: details of technical results • Methodology • Software tool-kit: OrganisationAnalyser, MarketAnalyser, StrategyBuilder

  3. Project objectives* Enhancement of competitiveness and sustainable growth of European Extended Enterprises by successful use of e-business as means for value chain integration • the development of an enabling methodology for the implementation, adaptation and optimisation of e-business strategies covering the whole supply chain, • its validation in a representative constellation of test cases • its facilitation through software based application aids and training materials and • its launch on the market for industrial adoption and the exploitation of a new content management service with e-business focus. * Source: Operational project objectives from the TA (DoW) of 2nd and 3rd Contract Amendment

  4. Expected project results* • E-business strategy kit e-Volution: management methodology and web-based management decision support system, the modular e-Volution software tool-kit • Content Service Provider as extension of existent “e-gateway” portal … • Successful realisation of industrial reference and show cases for an Extended Enterprise of different size and nationality (Germany, Italy, and Greece) • web page for dissemination and exploitation purposes; • Constitution of national industrial Interest and Reference Groups (IRG) … • Commercialisation of methodology and software training concepts • Constitution of an organisation for partners’ common exploitation activities Technical work Dissemination work Exploitation preparation * Source: From the TA (DoW), 3rd Contract Amendment

  5. evolution from state-of-the-business architectures to competitive business architectures of the future Communication establishment Stabilisation of collaboration Business partner integration (Extended Enterprise) • 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 • Business process and workflow integration • Cultural and social integration • Decentralised (core)competences along integrated value chains • Higher market/customer orientation by flexible, efficient value chain (re)configuration

  6. Project definition of the Extended Enterprise The Extended Enterprise is a dynamic, market-oriented business arrangement and a concept for integrated value chains. The significance of the Extended Enterprise, as distinct from the conventional supplier-customer-relationships, is the truly integration of organisation's business processes and information systems with those of suppliers, business partners and customers. The Extended Enterprises concept enables efficient and effective collaboration among value chain partners, driving productivity and innovations into new heights.

  7. 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

  8. 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

  9. Collaborative business approach for horizontal vs. vertical Extended Enterprise constellations Horizontal Extended Enterprise constellation Vertical Extended Enterprise constellation Customer Customer • Shared organisational analysis • Shared market analysis • Shared vision • Shared mission • Corresponding business objectives • Shared organisational analysis • Shared market analysis • Shared vision • Shared mission • Corresponding business objectives

  10. The e-volution concept – e-business implementation in Extended Enterprises e-business road mapping methodology Software tools Based on approved models, e-volution offers an e-business road mappingmethodology that fulfils the requirements of a systematic and goal-oriented planning of e-business implementation. The methodology is the starting point for the use of phase specific, supporting software tools. The e-volution training package is for transfer and teaching how to apply the e-business road mapping model, methods and tools. Training package Content Service The e-volution Content Service disseminates the e-business road mapping model with its methods and tools but also know-how about e-business.

  11. Scope of e-volution • E.g. individual potentials (benefits) for a company within an EE (risk, costs, resources, product/service) Performance Management Legislation Culture • E.g. different strategies but harmonised objectives, integration of single strategies Strategy Behavioural perspective • E.g. company specific ITC infrastructure and formats, distributed systems, (branch specific) standards Financial perspective Informational perspective e-business • E.g. e-business impact on processes, material flow and activities Process, material flow perspective

  12. Project approach and technical result presentation Requirement analysis Methodology development Software development Interest and Reference Group Test case applications Training development

  13. Management review of project results • Road mapping methodology and software tool-kit (test case instance and overview) • Content Service Provider • Training • Project dissemination • Summary of main achievement

  14. Road mapping methodology and software tool-kit (test case instance and overview)

  15. Methodology purpose • Methodology to create e-business implementation roadmaps in which the shared e-business projects in the Extended Enterprises are mapped • Reducing risks, uncertainties, incompatibilities within the scope of strategic e-business planning in horizontal/vertical value chains • Know-how transfer of business planning processes and methods to SMEs • Enhancement of e-business implementation along inter-enterprise value chain • Making e-business accessible to enterprises as basis for realisation of Extended Enterprise concept

  16. Methodology objectives Specific objectives addressed • consideration of e-business life cycle in Extended Enterprises • value/supply chain focus • simple and efficient to use and traceable results • easy to learn to enable user to repeat and replicate the process for use case specific constellations • industry independent, flexible in its application and applicable in different environments • accommodation of existing resources and varying constraints inside the Extended Enterprise • use of roadmapping approach

  17. Methodology concept Key principles and design guidelines • Business objectives satisfaction: contribution of e-business to the realisation of business objectives • Value chain focussing: analysis of the whole supply and value chain • E-business opportunity identification: enterprise and E2 potentials, e-business bottlenecks (b2b, b2c, b2a) • Adaptability and flexible use: framework, open for case specific adaptation und use • Interactive, participative and thorough: collaboration of value chain partners to complete the process of e-business strategy formulation • Modular: guideline for realisation of e-business (ICT and organisation), tool support • Integrative: proofed and innovative methods and instruments from academia and business world

  18. Roadmapping – process to develop the e-business roadmap • creative analysis method: forecasting, finding, analysing, assessing and visualising future development paths of products, services, technologies, and business at all • systematic registration and grouping of expertise knowledge, coordination of different opinions • logical and consistent method for organisations to decide where to focus and invest resources • structured mechanism for organisations to forecast developments and how they need to react to them • ideal for collaborative planning and strategy coordination in an EE • Methodology: integration framework for activities, methods, tools, know-how e-business roadmap is time-based plan that defines where an entity is, where it wants to go, and how it can get there (e-business strategy)

  19. Methodology structure e-volution scope e-business roadmap Out of e-volution scope • Thematic modules • Integrated in common business life cycle models • Open (reference) process model • Supporting components (software and training) Methodology Support

  20. Methodology and software for e-business implementation inExtendedEnterprises Organisation Analyser StrategyBuilder e-business roadmap ProjectManager Content Service Provider Market Analyser

  21. 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 consumers Forwarding agent Specialised dealers, resellers final producer Wooden items 1st tier suppliers • WINI enterprise is driver and coordinator of ONE specific Extended Enterprise constellation along office furniture value chain n tier suppliers

  22. Methodology Module 1 application Definition of business objective system Definition of business objective system Market analysis Organisation analysis Organisation analysis Market analysis Extended, collaborative business conception, design, implementation and operation activities E-business strategy and roadmap formulation E-business strategy and roadmap formulation E-business strategy and roadmap implementation E-business strategy and roadmap implementation

  23. Strategic Early Warning System Analysis for the EETrend layer model of EE and its environment Zunahme von dezentralen Unternehmensstrukturen dynamische Management- konzepte Logistik statt Handel Kleine Riesen 1. Finding Macro-environment 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 Micro-environment 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 Enterprise 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

  24. Strategic Early Warning System Analysis for the EESystem 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)

  25. Benefit expectations from the EE for

  26. Benefit expectations from the EE for

  27. Methodology Module 2 application Definition of business objective system Definition of business objective system Market analysis Organisation analysis Organisation analysis Market analysis Extended, collaborative business conception, design, implementation and operation activities E-business strategy and roadmap formulation E-business strategy and roadmap formulation E-business strategy and roadmap implementation E-business strategy and roadmap implementation

  28. Methodology Module 2: OrganisationAnalysis • 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

  29. Results of strategic business objective definition and analysis Need for realisation of synchronic production system Made with System Dynamics software Gamma 2.0 by UNICON Management Systeme GmbH, Germany

  30. Strategy for realisation of ‘synchronic production system’ objective • 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

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

  32. Example for functional business objective definitions

  33. Need for development of competences along the whole value chain to satisfy market requirements and create a unique selling position (USP) RTD production Market requirements sales assembly delivery service Competence needs Supplier I Supplier III RTD production sales assembly delivery service

  34. Competence definition and assessment in the EE Identification of value chain competences consumers Assessment EE competences Forwarding agent Specialised dealers, resellers WEB final producer Wooden items 1st tier suppliers

  35. EE competence assessment and development strategies for the EE • Definition of selected EE competence incentives

  36. 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)

  37. 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

  38. Methodology Module 3 application Definition of business objective system Definition of business objective system Market analysis Organisation analysis Organisation analysis Market analysis Extended, collaborative business conception, design, implementation and operation activities E-business strategy and roadmap formulation E-business strategy and roadmap formulation E-business strategy and roadmap implementation E-business strategy and roadmap implementation

  39. Methodology Module 3: MarketAnalysis • 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

  40. 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

  41. 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

  42. Product-Market-Definition Subject of further detailed analyses

  43. Product-Market attractiveness assessment

  44. Competitor-Product definition

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

  46. Product-Market attractiveness, competitiveness positioning and market size Basis for definition of chances and risks and development of product, market and competitive strategies

  47. Market Analysis WINI • 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

  48. Example of turnover forecasting with neuronal network

  49. Market Opportunity and Threat delivery for strategy formulation consumers Market analysis Business strategy and roadmap formulation Forwarding agent Opportunities & Threats Specialised dealers, resellers WEB final producer Wooden items 1st tier suppliers n tier suppliers

  50. Methodology Module 4 application Definition of business objective system Definition of business objective system Market analysis Organisation analysis Organisation analysis Market analysis Extended, collaborative business conception, design, implementation and operation activities E-business strategy and roadmap formulation E-business strategy and roadmap formulation E-business strategy and roadmap implementation E-business strategy and roadmap implementation

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