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The Balanced Scorecard Approach for Business to Business

The Balanced Scorecard Approach for Business to Business. Michael Ebert Michael Haag. Beth Huston Rod Kerezsi. Agenda. B2B Overview Mike Haag Mini-Case Studies Company Overview, B2B Strategy, Balance Scorecard unique elements Info Brokerage (Yahoo!) Beth Huston

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The Balanced Scorecard Approach for Business to Business

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  1. The Balanced Scorecard Approach for Business to Business Michael Ebert Michael Haag Beth Huston Rod Kerezsi

  2. Agenda • B2B Overview Mike Haag • Mini-Case Studies Company Overview, B2B Strategy, Balance Scorecard unique elements • Info Brokerage (Yahoo!) Beth Huston • Virtual Marketplace (Staples) Mike Ebert • Value Chain Integration (FED EX) Rod Kerezsi • Conclusions Mike Haag

  3. E-Business: B2B Virtual Marketplace Procurement/Resource Management Value Chain Integration Customer Relationship Management Info Brokerage E-Commerce:B2C E-Tailing/Customer Portals Amazon.com, CDNOW Bidding and Auctioning Priceline,eBay Consumer Care/Customer Management Merrill Lynch Electronic Bill Payment AT&T, MCI Worldcom E-Enterprise Applications

  4. Importance of B2B • B2B projections • 630,000 companies with B2B services by 2002 • 90% of e-commerce by 2003 • 30% of the world economy by 2010 “Where does the Internet rank in Priority? It’s No. 1, 2, 3 ,4.” Jack Welch, Chairman& CEO, General Electric

  5. Virtual Marketplace Application • Selling Goods and Services to other businesses Objectives • Increase customer base • Decrease marketing and product promotion costs • Decrease inventory costs • Improve customer buying experience Examples • CISCO Connection Online • Staples

  6. Procurement/Resource Management Application • Buying goods and services from other businesses Objectives • Manage long-term relationship with suppliers • Lower requisitioning costs • Reduce supplier costs • Increase accountability and control • Optimize purchases • Shorter cycle times/reduced inventory Examples • Boeing

  7. Value Chain Integration Application • Sharing enterprise information with suppliers and buyers to enable more efficient real-time planning (supply, demand, and production) and logistics Objectives • Improve cycle time • Reduce inventory • Lower operating expenses • Supplier integration (especially small to medium suppliers) Examples • Car manufacturers - “Order to Delivery” Production Processes • FedEx - Logistics processes

  8. Customer Relationship Management Application • Improving Customer care - Pre-Sales, Post-Sales Objectives • Improve care through individual treatment • Reduce costs through customer self-service • Increase repeat buying through long-term customer relationships Examples • Hewlett Packard

  9. Info Brokerage Application • Capitalize on Internet related business opportunities Objectives • Generate Market Growth • Generate Market Share (Near-Term) • Generate Net Income (Long-term) Examples • Internet advertising : Yahoo!, Excite, Lycos

  10. Virtual Marketplace • This is the web marketing of a company or shop; an electronic version of the traditional way of selling. • Staples.com is the online arm of Staples Inc. • Called a single cross-over or a “click-and-mortar.” • Serves the needs of its customers in the office products market.

  11. B2B Strategy • To grab a substantial market share in the small business and SOHO (small office/home office) market. • To provide a single online destination where businesses can procure a wide array of office products and business services, access and exchange electronic commerce transactions with each other.

  12. Balanced Scorecard CUSTOMER PERSPECTIVE

  13. Balanced Scorecard FINANCIAL PERSPECTIVE

  14. Balanced Scorecard INTERNAL BUSINESS PROCESSES

  15. Balanced Scorecard LEARNING ORGANIZATION

  16. Value Chain Integration • a $19-billion global enterprise • the world's largest express transportation company • NA's 2nd-largest provider of ground small-package delivery • a global logistics and transportation management company • the world's largest surface expedited carrier • a high-tech customs broker and trade facilitator

  17. B2B Strategy • Attract new business from small & medium-sized customers • Create new revenue streams • Expand the high-margin international business • Capitalize on e-commerce • Provide meaningful supply chain solutions

  18. Balanced Scorecard CUSTOMER PERSPECTIVE

  19. Balanced Scorecard FINANCIAL PERSPECTIVE

  20. Balanced Scorecard INTERNAL BUSINESS PROCESS LEARNING ORGANIZATION

  21. Conclusions • The internet revolution has presented businesses with unique opportunities and threats • B2B applications are becoming an increasing reality and need to be effectively managed • For most enterprises, B2B applications are just one facet of the business strategy (Brick and mortar, B2C, B2G are others) • A B2B measures should compliment other measures in a balanced scorecard. Focus will depend on particular B2B application • B2B measures will change over time

  22. Financial Perspective Procurement/Resource Mgmt Value Chain Integration Virtual Marketplace Customer Perspective Business Processes Vision & Strategy Procurement/Resource Mgmt Value Chain Integration Customer Relationship Mgmt Info Brokerage Organization Learning Customer Relationship Mgmt Info Brokerage Virtual marketplace 11-41 Balanced Scorecard in B2B Environment

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