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Maryfran Johnson Editor in Chief Computerworld

Isecon 2000. IT Leaders Rise to the E-Business Challenge. Maryfran Johnson Editor in Chief Computerworld. In the new economy, “IT has gone from being about the business to being the business.”. Geoffrey Moore, author of “The Gorilla Game: Picking Winners in High Technology”.

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Maryfran Johnson Editor in Chief Computerworld

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  1. Isecon 2000 IT Leaders Rise to the E-Business Challenge Maryfran Johnson Editor in Chief Computerworld

  2. In the new economy,“IT has gone from being about the business to being the business.” Geoffrey Moore, author of “The Gorilla Game: Picking Winners in High Technology”

  3. B2B E-Commerce Career & Labor Data Management Enterprise Data Center Mgt Government Policy & Legal IT Management & Leadership Security Web Infrastructure Windows 2000 & Server OS Wireless & Mobile Computerworld’s Top 10 for 2000-2001

  4. IT Leader Challenges • Transforming traditional business to the “E-Enterprise” • Racing against dot-com competitors • Dealing with supply chain integration and B2B issues • Winning the high-tech talent wars

  5. Dealing with the “Everybody’s an ASP now” phenomenon • Seeking a balance between privacy protection and personalization (aka customer service) • Leveraging/managing the influx of mobile & wireless devices

  6. Before the ‘Net Economy • Supported employees & external users • Treated business managers as your main “customers” • Focused on internal organization and processes

  7. After the ‘Net Economy • Exposing internal IT assets to support the supply chain • Leading integration and project (change) management • Dealing directly with business units, customers and trading partners

  8. Fighting the skills gap with selective outsourcing/ASPs • Making project management an enterprise core competency • Evolving from narrow to multi-dimensional roles Foote Partners, LLC 2000

  9. CR

  10. What a Difference a Dot-Com Year Makes… • Focus shifting from Web presence glitz to back-end supply chain & distribution • More “heavy lifting” in connecting the acronyms: ERP, SFA, CRM… • Venture capitalists looking for long-term customer retention strategies

  11. Three E-Commerce Questions IT Leaders Ask • What business value do we bring to the table via this channel? • Is the ‘net the right (or the only) channel to use? • Can this project be divided into smaller pieces, with faster deliverables?

  12. “We figure if we’re not failing about 30% of the time in making our technology choices, we’re probably not doing our job.” Paul LeFort, CIO UnitedHealth Group

  13. “I’m supposed to be CIO of the world’s largest company, but I didn’t grow up with the Internet.” Ralph Szygenda, CIO General Motors

  14. This is a car company? • Becoming a leading provider of Internet-based information services • Driving revenue potential to rival the $176B from selling 8.5 million cars and trucks • Leveraging leading-edge ‘net technologies and big presence in consumer and supplier markets

  15. GM retools for E-Commercethat goes beyond cars... • Real-time stock quotes • Talking email messages • Video games via your dashboard • Satellite-based radio services • Online car financing • Home mortgages

  16. Lloyd’s Bank of London • Spending $24 million on CRM software • Integrating customer info from all aspects of it operations • Connecting branches, call centers, wireless banking, Evolvebank.com

  17. “CRM is probably the single biggest focus for all banks…because they see it as their major growth imperative.” George Barto, Gartner Group analyst, CW, 8/21/00

  18. Say Hello to E-CRM • Eclectic mix of data mining, call center management, customer profiling software… • Sales force automation, click stream analysis… • Website personalization, email auto responses…

  19. “E-CRM calls for consistently updated customer information, catalog & order inventory data on all sales channels…” Peter Keen, consultant & business author, CW, Aug. 2000

  20. My Kingdom for an E-Marketplace…

  21. B2B E-Marketplace Categories • Communities (VerticalNet) • Catalogs (OrderZone.com) • Procurement Hubs (CommerceOne) • Auctions (AdAuction.com) • Exchanges (eLance, Altra Energy) • Collaboration Hubs (Bidcom) BusinessWeek, June 5, 2000

  22. Lotsa Naked Emperors • Less than 2% of B2B trade took place in online markets in 2000 • Some 85-95% of independent B2B exchanges “will be history” by next year (analysts say) • Fewer than 15% of exchanges today are delivering value-added services

  23. B2B Market Visions • Now: $100 billion overall market (with7.5% conducted online) • By 2004: $837 billion market (with56% conducted online) • E-commerce software market grew 305% last year, from $444M to $1.8B, with 250 vendors in play Source: Gartner Group and IDC

  24. The Boeing Company • Buys $37B worth of goods annually • Looks to cut 27% off purchasing costs • Plans to eventually tie ERP and back-office applications to Exostar • Operates several private exchanges • Limits number of online suppliers

  25. General Electric Co. • Global Exchange Services open to 100,000 trading partners • Expecting “tens of millions” in transactions • Hosting entire network • Promising quicker purchasing, faster turnaround CW, 8/21/00

  26. Dell Computer Corp. • New model marketplace (mall owner) • Three initial suppliers (3M Corp., Pitney Bowes and Motorola) • Buyers execute online transactions under predefined trading rules • Personalized buying experience for customers

  27. Future of B2B Hubs? • Uphill climb to achieve, sustain profits • Existing “big brands” will leverage natural advantage, greater resources • Low cost of entry means more competitors • Uncle Sam keeping close watch

  28. “It’s not the Wild West out there. Just because it’s online doesn’t mean that it’s that much different.” FTC Commission Member Mozelle Thompson, Computerworld.com B2B forum, 9/18/00

  29. Next Generation B2B • Trading Exchanges: dynamic interlinked webs of partners • Value Networks: optimizing supply chain relationships • International Logistics: global “catch up” on technology, ports, customs, trade financing, distribution. Peter Keen, CW, 9/11

  30. Agents: software brokers, bidders and searchers act as intermediaries. (Web comes to you.) • Wireless Logistics: The promise of m-commerce puts info & communication where the business is. • Real-Time Messaging: Components of the logistics value chain & company channels constantly updated.

  31. EnronOnline • Growing at 100% a year • Trading energy – plus capacity in broadband, rail car shipping and data storage • Doing more than $1 billion in B2B *daily* in more than 2,000 transactions • Boosting revenue 10-fold to $40 billion annually

  32. About 80% of Enron's income this year comes from businesses that didn't exist 10 years ago

  33. "IT is crucial to making markets. We couldn't do what we do without massive amounts of computing power.“Jeff Skilling, president of Enron Corp. in Houston, which has traded more than $120 billion in energy at EnronOnline this year

  34. “E-commerce winners have all three: IT management, customer relationships and a profit structure.” Business author Peter Keen, CW, 6/14/99

  35. The Media Guide to “Who’s Running This Country, Anyway?” The Wall Street Journal is read by the people who run the country. The New York Times is read by people who think they run the country. The Washington Post is read by people who think they ought to run the country.

  36. USA Today is read by people who think theyought to run the country but don't understand the Washington Post. The Philadelphia Inquirer is read by people whose parents used to run the country. The New York Post is read by people who don't care who's running the country, as long as they do something scandalous.

  37. The San Francisco Chronicle is read by people who aren't surethere is a country, or that anyone is running it. The Miami Herald is read by people who are running another country. Computerworld is read by people who can bring any of these countries to their knees with a little time in the data center and a few code modifications…

  38. For the very best in IT news, features, careers coverage, research & resources, visit us at www.computerworld.com

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