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On The. EDGE. OF WHAT’S. POSSIBLE. December 10, 1999. Table of Contents. Introduction to E-Business Today’s State of E-Business Assessment of Proposed B2B Extranet Site Vision for B2B Extranet Site PricewaterhouseCoopers and E-Business. Introduction to E-Business. E-Business Defined

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Presentation Transcript

On The

EDGE

OF WHAT’S

POSSIBLE

December 10, 1999


Table of contents
Table of Contents

  • Introduction to E-Business

  • Today’s State of E-Business

  • Assessment of Proposed B2B Extranet Site

  • Vision for B2B Extranet Site

  • PricewaterhouseCoopers and E-Business


Introduction to e business

Introduction to E-Business

E-Business Defined

Four Box E-Business Model

End-to-end E-Business Transformation


E business defined
E-Business Defined

  • E-Business encompasses electronic commerce – the external channels beyond the boundaries of an organization – and integrates every aspect of the firm’s strategy and operations, including bi-directional information sharing with suppliers and customers.

E-Business is improving businessperformance through connectivity:

  • New technologies in the value chain

  • Connecting value chains across businesses

  • E-Commerce :

  • Marketing

  • Selling

  • Buying of productsand services on the internet

In order to :

  • Create stronger “Customer” & “Supplier”

  • relationships

  • Improve service/reduce costs

  • Open new channels

  • Transform competitive landscapes


Four box e business development model

Convergence

Industries Integrated

e-Business Portals

Transparent Integration

Industry Transformation

Industry Consortiums

Cybersourcing

Industry Reengineering

Virtual Organizations

Value Chain Integration

Disintermediation

Reintermediation

Value Chain Integration

Business Process Outsourcing

Channel Enhancement

Secure Transaction Processing

Online Catalogs

Publishing Web Sites

Four Box E-Business Development Model

For each step in the model we can hypothesize specific industry initiatives in the evolution of E-Business such as the following:

  • Collaborative Planning

  • Collaborative Product Development

  • HR Management

  • Configure to Order

  • Consumer Direct

  • Scan Based Trading

  • Relationship Management

  • Knowledge Management

  • e-Procurement

  • Content Management


Value chain integration

Develop

products

Perform

marketing

Procurement

Manage logistics

  • Supplier network

  • Customer network

Production

Perform

sales

Customer

service

Value Chain Integration

  • Value chain integration connects an enterprise with its wider network of suppliers and customers


End to end e business transformation
End-to-end E-Business Transformation

  • A mistake many companies make is to approach E-Business solely from a technology or a strategic perspective…PwC approaches it end-to-end and enterprise-wide.

  • Financial objectives

  • Key performance indicators

  • Individual vs. group targets

  • Mission Statement

  • Strategic Objectives

  • Customer / Consumer emphasis

  • Key Appeals

Business Strategy

Critical Success Factors

  • Management style

  • Current norms

  • Differences from current business

Mdse Planning / Allocation

ProductDevelopm’t

Business Planning

Marketing/Content

Sourcing &Buying

Distribution/

Logistics

Customer Care

  • Value chain analysis

  • Core competencies

  • Shared service and/or outsourcing opportunities

Processes

Organization

Culture

Technology

  • Technology Infrastructure

  • E-Commerce engine (e.g. website, order processing, fulfillment, content mgmt.)

  • Inventory management systems

  • Order processing / fulfillment

  • Customer information / management

  • Decision support

  • Systems Integration

  • Technical architecture

NOTE: PwC manages E-Business projects end-to-end…Strategic Change through Process Improvements through Technology Solutions.

  • Organizational Requirements

    • Global E-Business Coordination Team

    • Level of support required for specific initiatives

  • Skills required

  • Organizational control


E business transformation life cycle

Technology Implications

Industry Vision

E-Business Transformation Life Cycle

Project Initiation/Strategy Formulation

Solution Definition

Business models/ scenarios/solution definitions/transition approaches piloted and/or implemented

Business models/ scenarios/solution definitions/transition approaches re-developed

Transition

Closure

Progamme and Project Management


E business transformation project initiation strategy formulation

InitialIntegratedProject Plan

DetailedIntegratedProject Plan

ContractNegotiation& Agreement

SalesApproachDevelopment

Proposal& ContractDevelopment

E-Business Transformation - Project Initiation, Strategy Formulation

Project Initiation

Strategy Formulation

BusinessEnvironmentAnalysis

PotentialChangeOpportunities

People& CultureAnalysis

E-BusinessMaturityAssessment

StrategyDevelopment

StrategicDiagnostic

DetailedValueProposition

EnterpriseOverview

Initial ValueProposition

OrganizationAnalysis

ScopeDefinition

TargetEnvironmentEnvisioning

ProcessAnalysis

Qualification

Commitment

DataAnalysis

High-levelTransitionStrategy

SystemAnalysis

LeadQualification

OpportunityAssessment

InfrastructureAnalysis

Programme and Project Management

Stage Start-up Phases

Ongoing PPMPhases

StakeholderEngagement

ProjectControlEstablishment

IntegratedProjectPlanning

Team &InfrastructureMobilization

ProjectManagementProcess Control

IntegratedProjectPlan Management


E business transformation solution definition transition closure

People & CultureTransition (includingTraining)

Organization Transition

ApplicationDevelopment Phases

IT InfrastructureDevelopment Phases

Facility/EquipmentInfrastructure Development

Documentation Development

Acceptance Testing

E-Business Transformation - Solution Definition, Transition, Closure

Solution Definition

Transition

Closure

People & CultureDefinition

ContinuousImprovement

OrganizationDefinition

KnowledgeHarvesting

TransitionPlanning

ProcessDefinition

SystemDefinition

Completion

DataDefinition

InfrastructureDefinition

Programme and Project Management

Stage Start-up Phases

Ongoing PPMPhases

StakeholderEngagement

ProjectControlEstablishment

IntegratedProjectPlanning

Team &InfrastructureMobilization

ProjectManagementProcess Control

IntegratedProjectPlan Management


Today s state of e business

Today’s State of E-Business

E-Business Trends & Headlines

CEO’s E-Business Focus

Leading to Competitive Advantage


E business trends headlines
E-Business Trends & Headlines

  • Recent E-Business trends are driving world-class companies to reshape their business models.

According to Forrester Research,

annual B-2-B e-business is projected

to surpass $1.3 trillion by 2003.

Manufacturers seeking ways to reach the consumer, will sell directly to them. Logistics and distribution will be integrated with ordering and production.

According to “The Industry Standard”, a car parts supplier, Magna, had six T1 lines to its customers, each of which cost more than $1,000 a month. This cost led to the creation of a virtual private network “ANX” Automotive Network Exchange for

the auto industry and its suppliers built on web-enabled technologies. This led to a monthly cost for Magna of $20!

Ford purchased a minority share of

internet car shopping site CarPoint,

to promote a "build-to-order" system

in which the manufacturing process is

directly influenced by online customer

preferences and grants shoppers a direct

connection to the manufacturer's inventory

In a survey of 400 global CEO’s, 4 out of 5, or 80%, felt that Electronic Business would significantly, if not completely, reshape competition in their industries.

Source: Electronic Commerce

Toyota recently announced it would be building a custom order Camry within 5 days at its plant in Ontario, Canada.

Mergers and acquisitions are fueling

the need for flexible integrated systems

that connect trading partners and

industries, especially in the energy utility sector.


Ceos are focusing on these e business issues
CEOs are focusing on these E-Business issues

  • What can E-Business do for me?

  • E-Business Impacts

  • Building customer loyalty

  • Achieving market leadership

  • Streamlining business processes

  • Creating new products/services

  • Managing “risk and compliance”

  • Reaching new markets

80.0

70.0

60.0

50.0

40.0

Percent Responding

30.0

20.0

10.0

0.0

Diminish Risk

Enhance our Reputation

Segment Markets Finely

Match Competitive Moves

Enhance Brand Recognition

Offer Differentiated Products

Increase Customer Loyalty

Reduce Infrastructure Costs

Increase Information's Impact

Achieve/maintain Leadership

Reach New Markets Quickly

Lower Customer Service Costs

Assure Regulatory Compliance

Low

Med

High

Source: PwC Conference Board Research, 1998


Leading edge firms are web enabling the supply chain to gain competitive advantage
Leading edge firms are web-enabling the supply chain to gain competitive advantage

Extend reach

Dell computers sell 17% overseas with no increase in sales costs

Improve efficiency

A sub-process level change at a UK retailer will yield a $750,000 cost saving according to a PwC study

Reduce staff costs

AMD believes it will save up to $125M by eliminating staff in procurement processes

Integrate processes

ABI/Inform say Chrysler, Ford & GM could save $1B per annum by using E-Business to integrate the supply chain

Reduce cycle time

USA industry SCM benchmarks show cycle-time reduction: 70% -90% and error rate reduction of 90% through E-Business

Suppliers

Enterprise

Customers

Product

Realization Process

Strategic Materials

Voice of Customer

Delivered Orders

Order

Fulfillment Process

Direct Materials

Returns and Repairs

Order

Capture Process

Selling/Buying

Support Processes

Customer Care

Reduce processing costs

TradeEx reduced re-ordering cost from $55-$75 per transaction to $10 p/t. The bottom line benefit was $9M saved per year.

Indirect Materials

Settlements

Revenue enhancement

PwC client, StorageTek target benefit of $18M from sales force automation

Supplier Relationship Processes

Customer Relationship Processes

Customer satisfaction

Genstar launched on-line booking service - with significant client usage resulting in day one profits covering total investment


Assessment of proposed b2b extranet site

Assessment of Proposed B2B Extranet Site competitive advantage

“Enhance the transaction processing between Tosco and jobbers/dealers”


Assessment of proposed b2b extranet site1
Assessment of Proposed B2B Extranet Site competitive advantage

  • Strengths

    • Proposed integration with back-office systems

    • Focused approach to meet delivery deadlines

    • Phased approach to site development

    • Cost reduction focused

  • Opportunities

    • Additional services to improve dealer/jobber sales

    • Additional services to improve dealer/jobber productivity

    • Build 1-to-1 relationships with customers

    • Develop site maintenance strategy

    • Develop E-Business strategy


Jacques Nasser, CEO of Ford Motor Company, defined the Customer Company in a recent interview with PricewaterhouseCoopers

  • “What is a customer company? It’s an enterprise that is continuously gathering unfiltered customer insights worldwide to:

  • Connect with current and potential customers and anticipate their present and future needs

  • Translate customer needs into a competitive advantage, using fast cycle time and generation of breakthrough products and services

  • Focus on building sustained relationships

  • Effectively manage a portfolio of brands

  • Continuously grow shareholder value”


Tosco needs a strategy which ties internal efforts together with external trends and forces within the marketplace to provide customer centric services.

  • How can Tosco develop and pursue an E-Business strategy to take advantage of the opportunities and threats in the market?

    • How do we use technology to get closer to our customers?

    • How will we get direct feedback from our customers into the system?

    • What investments in tools/technologies/platforms should be made in order to - tie the existing initiatives together?- provide effective solutions that can be leveraged to our suppliers and customers?

    • Who will we partner or ally or compete with?

    • Which of our customers can we foster a more collaborative relationship?

Market Trends

Requirements

  • Internet focus moving from B2C to B2B

  • Functional disaggregation leading to outsourcing

  • Information availability threatens customer loyalty

  • Drive to reduce costs throughout the value chain

  • Globalization pressures

  • Speed to Market

Customer Requirements

  • Ability to take on more responsibility within value chain

  • Seamless/proactive integration with customer schedules

  • Shorter cycle times

Competitor Responses

  • Lower costs, faster to market

  • Integrated chains of value


Pricewaterhousecoopers vision for tosco s b2b extranet site

PricewaterhouseCoopers’ Vision for Tosco’s B2B Extranet Site

“Tosco will be a valued business partner and advisor to your business customer by leveraging web-enabled technologies”


What questions do your business customers face each day
What Questions Do Your Business Customers Face Each Day? Site

Classifications

  • Purchasing

  • Operations

  • Operations

  • Training, Mktg/Sales

  • Purchasing

  • Operations

  • News

  • News

  • Mktg/Sales

  • News

  • How can I reduce my spending on fuel products?

  • How can I reduce my administrative overhead?

  • What is the proper maintenance schedule for station equipment and property? How do I remember what needs to be done and when - at each station?

  • What are the new products and promotions that can improve profitability?

  • Can I reduce my spending on non-fuel products (e.g., convenience items, office supplies, maintenance items)?

  • What is the best way to schedule staff for the stores/stations? Someone’s sick, who do we call for a replacement?

  • What new government regulations will affect my business?

  • How are my investments doing?

  • What are other jobbers/dealers doing?

  • What else is going on in my community/neighborhood?



Pricewaterhousecoopers and e business

PricewaterhouseCoopers and E-Business Site

BroadVision Capabilities

E-Business Client List

E-Business Alliances


Broadvision capabilities

Staff Counts Site

E-Business focused: 7,500

BroadVision trained: 300

BroadVision training goal by June, 2000: 600

BroadVision experienced today: 100

Joint Clients/Opportunities

BellSouth

BP Amoco

Carrier

Chevron

First Energy

GTE Wireless

Highmark Insurance

KPN

PwC-BroadVision Initiatives

Industry templates

Common methodology

Training programs

Lloyd’s Bank

MyWay.com

Pratt and Whitney

Sanborn’s

US Postal Service

BroadVision Capabilities


Selected e businsess client engagements
Selected E-Businsess Client Engagements Site

  • Castrol

    • Develop E-Business strategy and deployment plan.

  • Reuters

    • Develop Web Enabler - a Web-based Customer Self-Service tool - enabling real-time electronic business between Reuters, their partners, and their customers.

  • Sega of America

    • Analysis of technology and infrastructure leading to assistance with the implementation of a direct-to-consumer E-Commerce solution

  • Ford Motor Company

    • Develop a Web-enabled Human Resources system

  • BellSouth

    • Web development, programming, and back end system integration.

  • Department of Defense, U.S. Government

    • Develop E-Commerce Site to Manage Vendor Solicitations

  • Compaq

    • Design, develop and implement a global Internet based direct-to-consumer product sales capability, a channel partner network providing distribution channel with real-time access to product information and order status, and customized business sites.


Selected e business client engagements
Selected E-Business Client Engagements Site

  • Tetrapak

    • Develop Web-enabled production environment to provide customer self-service and a flexible Internet architecture for future development.

  • Concert Communications Services

    • Develop Web-based purchasing & receiving systems

  • Government National Mortgage Association (Ginnie Mae)

    • Analysis, Design, Development, Implementation and Support of Systems

  • NECX

    • Develop E-Business strategy and implement Internet commerce site

  • American Express

    • Develop and implement an online brokerage service

  • Citibank

    • Develop E-Business Gateway for Corporate Trade Payments

  • High-Tech Manufacturer

    • Develop E-Business strategy and implement Internet commerce site

  • Major Personal Computer Manufacturer

    • Develop vision for Knowledge Management


PricewaterhouseCoopers is the largest professional services firm in the world and has a global E-Business practice with extensive E-Business experience - from strategy through implementation.

Dedicated E-Business strategy and delivery capability worldwide

Specific, credible experience in delivering the wide range of E-Business solutions under considerations

Extensive global company experience on the team

Proven E-Business consultant to multiple high-technology industry global clients

3rd largest E-Business consultant (IDC) and leading CRM consultant (Gartner)


Pricewaterhousecoopers e business alliances
PricewaterhouseCoopers’ E-Business Alliances firm in the world and has a global E-Business practice with extensive E-Business experience - from strategy through implementation.

Engaged

Mature

BroadVision

CheckFree

Intershop

Oracle

InfoBank

CommerceOne

OpenMarket

Ariba

Vignette

SAP

Extricity

netDynamics

Siebel

iPlanet

Emerging

Infrastructure

BlueGill

Cisco

Brightware

Microsoft

Silverstream

HP

Saphire

IBM

SUN

VerifyEC

NetWest

Compaq

Clear Commerce

EMC


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