Final Distribution. Retailing. Terminals & Wholesalers. Elements of the Downstream. Crude Acquisition and Transportation. Bulk Distribution. Refining. MARKETIN G. RISK MANAGEMENT. Supply, Market & Transport Products. Market & Distribute Wholesale Products. Sell Retail Products.
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Terminals & WholesalersElements of the Downstream
Crude Acquisition and Transportation
- Financial markets
- XML standards
“Win & keep customers”
- Dealer/jobber sophistication
- Push pricing & availability
“Lights out refinery”
- Web process control
- Collaboration across plants
- Grocery nets & standards
- Scan based tradingDownstream Vision
Drill down is 5 Forces
Facing the Downstream
page from overview section
- Oil Monitor.com
- Global Marine.com
This page is a drill down item for
Five Forces Facing the Downstream
Same as Five Forces Facing the Downstream
see overview section
Drill down to Zeus speeches
Thu. Keynote “Capturing the Value of “E”merging Technologies in Supply Management” PwC
Thu. Track A “Upstream Case Study: Establishing an E-Procurement Service in the Oil & Gas Industry” Wellbid Inc.
Thu. Track B “E-Procurement Case Study” T. Stephens, The Procurement Centre
Thu. Track B “Wilson Supply: An Online System for Oil & Gas Supply Chain Management” Wilson Supply
Thu..Track B “Leveraging ERP Systems with an E-Procurement Solution” E&Y
Fri. “Network Oil: Creating an E-Commerce Marketplace for Oil & Gas” Network Oil
Fri. “Transforming MRO Catalogues: A Case Study” WorldOil.com
Drill down to Links
Chevron.com, Ariba.com, NetworkOil.com, Sparesfinder.com, commerce1.com e.conomy.com others?
e-MROValue Chain Integration in Procurement
Charles is looking at the Lucerne docs - path to spreadsheets is
share\zeus\standards\edi standards current and edi standards future
Drill down to Zeus Speeches
Fri. “The BizTalk Project: How XML Will Revolutionize E-Commerce in the Energy Industry” API,BizTalk, MicroSoft
What is going on out there (from Lucerne Master v5)
File is share\zeus\tools_technology_trends\lucerne_tool documentation
put more information behind the next slide
A market for commoditylike products. It fulfills last-minute
buy-and-sell needs for industry players with preexisting
business relationships. Example TradeMatrix.com
A mechanism for lowering the acquisition price for
products typically purchased via RFPs or RFQs. It enables a
wide range of suppliers to bid competitively in real time.
A one-stop shopping venue. It streamlines purchasing by
concentrating many product catalogs for buyer groups. Examples Commerce1 and Ariba
A mechanism for liquidating surplus at best possible
prices. It enables a wide range of potential buyers to bid
competitively for products at below-market prices.
Order should be:
A secure, invitation-only site over the public Web where
end users buy directly from sellers.
Marty will get info.
From D. Dickinson
Current and Future Upstream / Energy Market
Ideas / Tradeoffs
FunctionalityE-Business: How - Strategy through Implementation
4 Box Model
to 7CO model
What non-virtual community is your organisation part of today?
What virtual community does that imply for your organisation in the connected world?
What combination of non-virtual and virtual community do you strive for?
Why will this group act as a community? What are the common elements and what are the business drivers?
What will be the new dynamics of the desired virtual community? Which are the new value drivers?
What is the new value add in the community? Who will be best positioned in the new community?Community - Key questions
What will be the impact of e-business on your current value add to your current community?
So, what E-Business play will you go for?
How will you position your company in the desired community?
What will be your value add in the new community?
Will you be able to make 22
What core competencies will you base your value proposition on?
Why these core competencies?
What alternatives are there?
What will your new Customer Value Strategy be?Content - Key questions
What activities are considered core and which are considered non-core?
What non-core activities should be e-sourced?
In the new community and based on the desired content, who do you need to collaborate with?
What are the risks and opportunities of working with these business partners?
What alternative business partners are available for you in the connected world?
Based on what criteria should you select business partners?
How will you perform ‘business partner management’?Collaboration - Key questions
What will the new competitive game be in the connected world? What will the new competitive advantage come from? How sustainable will it be?
What are the barriers to exit the traditional play? So which of your current competitors are best positioned to enter the new e-business play?
What new competitors can you expect to face in the connected world?
How will barriers to entry change? How can you raise barriers to entry in the connected world?
Do you need to collaborate with traditional competitors (e.g. to raise barriers to entry for the newcomers)?Competition - Key questions
What will your new value proposition be in the connected world?
Which are the new value drivers in the connected world? Which apply specifically to the community and content you want to play?
What is the impact of the connected world on shareholder value? How will your enterprise be valued in the connected world?
Which are the new revenue and cost drivers in the connected world? How will this impact your profitability?
What business model should you choose?
What operational models should you choose?Company - Key questions
What technological trends are key to your business? How will technology enable the connected enterprise?
How will these technologies develop in the short and long term?
What will the impact of these developments be on your business?
How can you best align your IT strategy with your business goals?
How about web-enabling your ERP systems?
How feasible is it?
What will the impact be?Computing - Key questions
What will be your roadmap for to transform to the connected world?
What change strategy will be chosen to implement the connected enterprise in your organization?
What risks are there involved in the transformation towards the connected world?What will be the price of doing nothing?Corporate agenda - Key questions
Since e-business is more than just a technology, it can involve many of the company’s internal operations, as well as those of key business partners. It also affects how firms view both their strategy and their operations.Consider these keys to successful e-business implementation based on the experiences of companies already pioneering in this area:
ProvidersDownstream may fragment into value networks, with little vertical integration
ManagersIndustry Transformation sectionE-Business Enables Strategy
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.
Dell computers sell 17% overseas with no increase in sales costs
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
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
Voice of Customer
Returns and Repairs
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.
PwC client, StorageTek target benefit of $18M from sales force automation
Supplier Relationship Processes
Customer Relationship Processes
Genstar launched on-line booking service - with significant client usage resulting in day one profits covering total investment
Same as presentation themes
slide in the overview section
-or- do you want recap/review...
in the title?