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Roleplay Project e-Market PlacemySAP • Class : E- Commerce • Professor : Lee,Jae kyu • Term: 2001. 9~ 12 • KGSM in KAIST • HiFive (No.5) • Cho Dae Hwan • Jung Gwang Chae • Yang Se Rim
CONTENTS • Industry Analysis • SAP and Commerce One • Competitor : i2+ IBM+Ariba • Comparison • Recommendations
Industry Analysis : Typology • Specialist vendors • Focus on e-marketplace solutions • also provide other related e-commerce solutions. • Ariba, Commerce One, Intelisys, Exterprise, Moai • ERP and CRM vendors • SAP (SAPMarkets + C1) • Oracle, Remedy • PeopleSoft(with C1), JD Edwards(withAriba,I2) • Best-of-breed business applications vendors • SCM(i2), Document management(Tramnit) • Infrastructure and service vendors • IBM Works with Ariba and i2
Industry Analysis : Crisis Revenue of marketplaces in Korea, 2000 • Worldwide • Only 2~4% of marketplaces will • survive till 2003 worldwide. • - Forrester Research • About 10% of new marketplace was • closed or merged during 4months • - Deloitte Consulting • Repeated customer is less than • 10% of total participants • Korea • 44% of Total marketplaces was • no revenue in 2000 • Only 19 company( 11%) has more • than 5 Bil won revenue.
Industry Analysis : Future(Private MP) • Public marketplaces have difficulties. • Limit in collaboration in public market due to no trusts. • Limit in Saving transaction cost (5~10%) • difficult to do cooperative buying. • High cost to integrate each internal system rather than cost saving. • Less relationship • Need 3~5 year for collaboration services. Source: SAPMarkets research
SAP group SAP mySAP SAP SAPMarket Commerce One Solution : Market set
SAP • Company • SAP is the world's third-largest independent software supplier overall • SAP employs over 27,800 people in more than 50 countries, • 29 Years in the Business of E-Business • 10 Million Users. 36,000 Installations. 1,000 Partners. 21 Industry Solutions. • History • 1972 SAP is founded • 1992 SAP R/3 solutions launched • 1996 SAP R/3 Release 3.1 is Internet-enabled • 1996 Company launches new solutions for CRM and SCM; SAP begins • developing industry- specific solutions • 1999 SAP delivers mySAP.com • 2000 SAP forms strategic alliance with Commerce One to create SAPMarkets, • 2001 SAP acquires Top Tier and forms SAP Portals
Industry Solutions mySAP Enterprise Portals mySAP Supply Chain Mgmt. mySAP Customer Relationship Mgmt. mySAP E-Procurement mySAP Product Lifecycle Mgmt. mySAP Business Intelligence mySAP • Solutions • mySAP Financials • mySAP Human Resources • mySAP Mobile Business • mySAP Marketplace by SAPMarkets • mySAP Hosted Solutions • mySAP Technology
SAP • Stock Price ; NYSE
SAPMarkets • History • SAP AG spin-off • Headquarters in Palo Alto, California • Announced March 15, 2000 • Opened for business in May, 2000 • Employees: ~200 initially, • SAP to retain majority control of SAPMarkets • Solutions • SAPMarkets INTERNET SALES® • MarketSet TM 2.0 (joint solution with C1) • ENTERPRISE BUYER TM 2.0(joint solution with C1)
SAPMarkets : Additional Materials • Overseas Outcomes • Japan e-Market 2001. 7. 5 : - Japan Unisys , Utility Market place - Machine and materials, MRO Goods • Shell - 2001. 6. 13 - e-procurement - Trade-Ranger • Domestic Outcomes • SK Telecom • Now many SAP site is considering to implement Marketset solution • Possibility of co-working with Korean solutions • 1st Step : SAP try to integrate SAP ERP Solutions (2001~2002 first) • 2nd Step : SAP will expand integration with Korean other applications
Software license fees — enterprise and ASP software licenses, allowing customers maximum flexibility to run Commerce One solutions on their own, or to have them hosted. We also share license revenues on our jointly developed products with SAP. • Global services — professional consulting, product maintenance, application hosting, and other related services • Transactions and subscriptions — fees from customers' e-marketplace activity Commerce one(1/2) Company Overview • Brief history • 1994 : DistriVision Lauched • 1997 : Commerce One Changed • 1999. 6 :IPO • 2000.6 : SAP AG investment $250M(23%) • Business Model • Software license fees - enterprise and ASP software licenses with SAP • Global services — consulting, maintenance, application hosting • Transactions and subscriptions —fee’s from e-marketplace activity • Financial data • Sales growth rates : 291% (5 years) • Revenue : $352M (2001.1~9) • $402M(2000) • Net loss : $ 344M (2000) • Employee : 3,766
E-Marketplace Application • Enterprise Buyer - e-procurement • Auction - streamlining sourcing • Content Management Services • Financial Services -invoice to payment • Commerce one / SAPMarkets • MarketSet - Developed jointly with SAP the supply chain, from design through delivery • Enterprise Buyer -e-procurement • MarketSite • platform, builder, business services • Operating Environment : the heart of all Commerce One e-marketplace solutions. Commerce one (2/2) Marketsite Portal
SAP Markets + Commerce One • Integrated Scale • SAP: Leader in e-biz applications • CommerceOne: Leader in e-biz marketplace technology • Have established 17 co-development teams • Joint Developers : Commerce One (1,800)+ SAP Markets (1,100 ) • SAP AG. e-commerce sales and professional service (1,000) • Power 75 percent of the worldwide e-marketplaces. • Business Strategy • Joint engineering, marketing, sales, solution • One single, joint solution offering since September 2000 • Smooth transition for existing SAPMarkets and CommerceOne • marketplace customers
SAP Markets + Commerce One • Integrated Solution : Marketset • SAPMarket : • supply chain management • Internet sales • analytics and reporting • product lifecycle management • CRM will be included • Commerce One • Messaging • xCBL • content management • auctions.
MarketSet : Component Architecture Buyer Seller MarketSet On - Ramps On - Ramps MarketSet Builder Browser Browser SAP Internet Sales / Enterprise Buyer MarketSet Services Framework SAP Customer Desktop / Professional Relationship Mgmt SAP Materials MarketSet MarketSet MarketSet SAP Online Store / Management / Order Dynamic Procurement SAP Sales & Management Pricing SAP Financials / Distribution / SAP Document SAP Financials / Mgmt System MarketSet MarketSet MarketSet xCBL SAP Document xCBL Life - Cycle Supply Chain Catalog Mgmt System Collaboration Collaboration SAP Advanced Planner & Optimizer SAP Advanced MarketSet MarketSet (further to Planner & Optimizer Bulletin Analytics come….) 3rd Party Board Components 3rd Party Oracle, PeopleSoft, Components i2, Ariba, etc. Oracle, PeopleSoft, MarketSet MarketSet MarketSet Platform i2, Ariba, etc. Connector Connector Marketplaces Transport Export/Import Financial Marketplaces SAP, GTW, Service Service Service SAP, GTW, dotcoms, etc. Provider Provider Provider dotcoms, etc.
MarketSet : Infrastructure(1/3) MarketSet Builder • Front-facing marketplace experience: • User interface builder for HTML and mobile services • Based on Jetspeed rendering engine • HTML input as well as XML • Can show mySAP.com mini-apps • Personalization features • Community features and service • Help market makers create a community • Templates • System for user/policy management • Role-based and user-based personalization • Methods for trading partner registration & user login
MarketSet : Infrastructure(2/3) MarketSet Services Framework • Rapid integration of services • Pre-packaged components for seamless integration of bundled, premium and third-party services • Software tools, APIs, documentation, and methodologies for integrating services • Documented in Business Service Framework (BSF) Cookbook • Native support for xCBL • xCBL = XML Common Business Library -> http://www.xcbl.org/ • Document framework for robust XML exchange
MarketSet Platform MarketSet : Infrastructure(3/3) • Security • Marketplace security • Secure document message routing • SAP Trust Center services integration • Connectivity • Establish xCBL communication points for trading partners • Integration of SAP applications via MarketConnect integration module in the SAP Business Connector • EDI gateway with integration to service provider GXS for EDI transaction services and supplier integration • RosettaNet gateway support • Management • Administration console • Marketplace management • Performance tuning
MarketSet :EnterpriseBuyer Architecture < Share data with suppliers via e-marketplace > Status Overview Contract Planning Demand Source / Purchase Receive Invoice Payment Catalog Inventory Auction Tender Desktop and Professional Professional
IBM group IBM WebSphere Ariba I2
IBM + Ariba + i2 Ariba® Commerce Services Network (ACSN) ™ Ariba® Dynamic Trade™ supply chain management expertise Ariba® Buyer™ Ariba® Sourcing™
IBM WebSphere Commerce Suite Strategic Alliance
Software license fees — enterprise and ASP software licenses, allowing customers maximum flexibility to run Commerce One solutions on their own, or to have them hosted. We also share license revenues on our jointly developed products with SAP. • Global services — professional consulting, product maintenance, application hosting, and other related services • Transactions and subscriptions — fees from customers' e-marketplace activity Ariba : Overview (1/3) Company Overview • Brief history • Founded in September 1996, CA Development stage (1996.8. ~ 1997.3) • Began selling products, services in the U.S., Europe, Canada, Australia, Asia(1997.3) • Over 1,100 Employees world wide (2000.4) • Acquisition: • 1999. Trading Dynamics( B2B Internet trading),TRADEX Technologies( Net Markets) • Business Model • Software Licensing, Transaction Fees: Buying & Selling, Auction-Driven Commission • Advertising fees, Contents Subscription • United States, Latin America, Europe, Canada, Asia and Asia Pacific • Financial data • Revenue : $273.5M (2001.1~9) • $279M(2000) • Net loss : $ 317.1 million(2000) • Employee : 1,394(6/31,2001 700 Lay-off)
Ariba : Overview (2/3) B2B Solution MAP Ariba B2B Commerce Applications Ariba Buyer Ariba Sourcing Ariba MarketPlace Ariba Dynamic Trade Ariba Commerce Service Network Logistics &Fulfillment Transaction Routing Supplier & Content Services FinancialServices Sourcing &Liquidation
Ariba : Overview (3/3) Ariba Marketplace Framework Ariba Marketplace Collaboration Extention Ariba Dynamic Trade Reverse Auction Bid/Ask Negotiation Logistics Product design Supply chain Planning Fullfillment Travel Authorization Auction Commerce Process FrameWork Workflow Catalog Search Requisition Order Ship & Track Billing Administration & ManagementReporting & Analysis Payment Marketplace Administration Member Management Relationship Management Revenue Models Biling Management Catalog Administration Network Application Architecture Application Architecture User Interface Services Transaction Routing
i2 : Overview Company Overview • Brief history • Founded in 1988 by Sanjiv Sidhu IPO April 1996 • Acquisition: • 2001.3. Rightworks Corporation - procurement across multiple enterprises • Over 1,000 global customers in a wide variety of industries • Business Area • Fulfillment / Finance: SCM & Exchanges • E-Business and Marketplace Solutions • Financial data • Revenue : $791.7M (2001.1~9) • 6% rise from 2000 • Net loss : $ 7.16 billion(2001) • $ 1.02 billion(2000)
Ariba BroadVision IBM Microsoft i2 Clarus Compaq SAP Webmethods CommerceOne iPlanet EDS J.D. Edwards SUN Business Applications B2B Software Integrator Alliances
Comparison Morgan Stanley 2000
SAP Group: SWOT Analysis External Environment Internal Environment • Strongly Integrated Partners(Equity) • Flexible Interface within Solutions • Higher Sales Possibility ( SAP sites) • Open to all (x-CBL) • Content Management in Catalog • Restructuring in Providers • Additional Business Opportunity • ( Entry in Middleware Market : SAP) • Major Trend to XML O S T W • SAP oriented Images • (Negative at Other ERP customer) • On going Integrated solution(CRM) • Confused at 2 Companies (SAP or C1) • Economic Depression • Security in data Transaction • Perfect Competition Market • (Too many e-commerce Solution)
SAP Group: Recommendations(1/2) • Using Market Opportunities • More aggressive M & A with Industry leading s/w vendors • Strategic Alliance with H/W DB vendors (HP, Sun, SQL*Server) • Enforce functions of M-Commerce and T-Commerce • Diversify Middleware Solutionin integrating with ERP • Maximizing Strength • Long-term Lock-in Strategy • Transaction Analysis Service (Data Warehousing) • Time to Market Strategy responded speedily on Customer Needs • Making Industry Standardization (E-Commerce) • Share Intellectual Property than just co-developing • Cross-Training and Support
SAP Group: Recommendations • Overcome the Threats • Limited Liability Contracts with Customers in servicing Marketplace • Managing Priority to current Customers Salesfor Keeping Relationship , • Because Making New customers is more difficult in depression • Replenish the Weakness • As soon as possible, Full function Solution including CRM • Integrated Single Business Channel for Marketing Co-products • Versioning Price(SME: light price, Replace Market: Low Margin Price) • More focusing on Private MARKETPLACE • Value Proposition for Customer Oriented Marketplace • Strength in Securities and Privacy • Easiness in Integration and Relationship
Software license fees — enterprise and ASP software licenses, allowing customers maximum flexibility to run Commerce One solutions on their own, or to have them hosted. We also share license revenues on our jointly developed products with SAP. • Global services — professional consulting, product maintenance, application hosting, and other related services • Transactions and subscriptions — fees from customers' e-marketplace activity Implications for Korean Marketplace • Overcome or Adapt to the Business culture • Chaebol companies • Difficult to consolidate inter-chaebol companies (competition, secret) • Implementation individually MP according to each Chaebol • SME • Weak infrastructure on ERP system (lack of investment) • Group by each industry and Make a Industrial Marketplace • Transaction transparency • Reason : Black Market mechanism • Solution : TAX reduction policy on MP business transactions Automatic business transaction monitoring system • Solution for Korean Marketplace • Develop own solution to solve Korean industries’ problem by bench- • marking the solutions(CommerOne,Ariba) • Government Support for Software industries