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The Foundation of eCommerce Success:  Web Enabling Your Business Processes February 7, 2001 Presented by Gary D. Glick
Why Web enable business processes? <ul><li>Economic and competitive factors </li></ul><ul><li>Increasingly, customers are ...
Web based Business Process -  PHILOSOPHY <ul><li>Companies must re-align to support e-business initiatives </li></ul><ul><...
Success <ul><li>Must align business processes with corporate vision and selected technology </li></ul>
How to achieve success <ul><ul><li>Prioritize customer satisfaction </li></ul></ul><ul><ul><li>Define strategy to meet cus...
Achieve success  (Cont.) <ul><ul><li>Identify process and personnel gaps </li></ul></ul><ul><ul><li>Re-establish business ...
Health Check <ul><li>Will your eEnabled business meet your customer’s expectations? </li></ul><ul><ul><ul><li>Delivery </l...
Health Check <ul><li>Are your business processes putting you in a reactionary mode versus proactive mode? </li></ul><ul><u...
Health Check <ul><li>Do you have a clear understanding of the flow of information between your order administration, manuf...
How did we get here? <ul><li>Fundamental ways that businesses sell to consumers has evolved during the last 100 years. </l...
Country Store <ul><li>Limited product offering </li></ul><ul><li>Consumer purchased what was on hand </li></ul><ul><li>Spe...
Catalog <ul><li>Expanded product line </li></ul><ul><li>Multiple methods for customer to purchase </li></ul><ul><ul><li>Ph...
Web based sales <ul><li>Mass customization </li></ul><ul><li>Immediate gratification </li></ul><ul><ul><li>In stock </li><...
CRM Initiative <ul><li>Concerns </li></ul><ul><ul><li>Time to market </li></ul></ul><ul><ul><li>In-house skills </li></ul>...
ERP Integration Division Division Division Department Department Department Cost Center Even the best ERP implementations ...
ERP Integration e-Commerce Division Division Division Department Department Department Cost Center <ul><li>The addition of...
ERP Integration Data flow e-Commerce Division Division Division Department Department Department Cost Center
ERP Integration e-Commerce Division Division Division Department Department Department Cost Center Alignment
ERP Integration e-Commerce Division Division Division Department Department Department Cost Center Supply chain adds anoth...
ERP Integration e-Commerce Division Division Division Department Department Department Cost Center Alignment
Typical SAP Internet Architectural diagram Internet Sales Platform Laptop or PDA Browser Customer Web Server Application S...
How to achieve alignment <ul><li>Enterprise wide business process model </li></ul><ul><ul><li>Outward focused </li></ul></...
What makes a good business model? <ul><li>Enterprise-wide system definition </li></ul><ul><li>Tasks - Work step recording ...
<ul><li>NetProcess </li></ul><ul><ul><li>Creation and Documentation of business processes via the web </li></ul></ul><ul><...
 
 
 
 
 
Transaction Summary Analysis - VA01
Filtering VA01
VA01 Initial Analysis
SAP Configuration Tree
Results of IMG Comparison - Materials
Results of Master Data Comparison - Material
Web Based Business Process Baseline <ul><li>Take a customer-centric and partner-centric approach </li></ul><ul><li>Capture...
Web based Business Process Fundamentals <ul><li>Companies Must Align Technology with Corporate Vision </li></ul><ul><ul><l...
Maintain a Customer Perspective <ul><li>Segment customers in terms of the lifetime value of the relationship </li></ul><ul...
IntelliCorp <ul><li>Provides eSolutions for SAP customers </li></ul><ul><li>Co-developed the SCE & SPE with SAP </li></ul>...
IntelliCorp Solution Offerings <ul><li>S7 Solution Portfolio </li></ul><ul><ul><ul><li>eBusiness Transformation Solution <...
Questions and Answers <ul><li>The conference line will now be opened for audience questions… </li></ul><ul><li>To discuss ...
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  • Increasing sales on the web growth btoc and btob Economy slowing down - less disposable income - competition driving price and putting product on the web.
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    1. 1. The Foundation of eCommerce Success: Web Enabling Your Business Processes February 7, 2001 Presented by Gary D. Glick
    2. 2. Why Web enable business processes? <ul><li>Economic and competitive factors </li></ul><ul><li>Increasingly, customers are moving towards a web based marketplace for information and purchases </li></ul><ul><li>Revenue growth based on eCommerce activities </li></ul><ul><li>CRM, Execution, and Supply Chain systems operating on different software and hardware </li></ul>
    3. 3. Web based Business Process - PHILOSOPHY <ul><li>Companies must re-align to support e-business initiatives </li></ul><ul><li>Companies must pay attention to infrastructure </li></ul><ul><li>Integration with the back-office is the key to eBusiness success </li></ul><ul><li>Companies must focus on a customer centric approach </li></ul><ul><li>Companies must provide better support for customers and suppliers </li></ul>
    4. 4. Success <ul><li>Must align business processes with corporate vision and selected technology </li></ul>
    5. 5. How to achieve success <ul><ul><li>Prioritize customer satisfaction </li></ul></ul><ul><ul><li>Define strategy to meet customer satisfaction objectives </li></ul></ul><ul><ul><li>Implement enterprise wide business activities necessary to meet strategy </li></ul></ul><ul><ul><li>Baseline existing business processes and personnel </li></ul></ul>
    6. 6. Achieve success (Cont.) <ul><ul><li>Identify process and personnel gaps </li></ul></ul><ul><ul><li>Re-establish business process and KPI’s </li></ul></ul><ul><ul><li>Feedback </li></ul></ul><ul><ul><li>Recycle </li></ul></ul>
    7. 7. Health Check <ul><li>Will your eEnabled business meet your customer’s expectations? </li></ul><ul><ul><ul><li>Delivery </li></ul></ul></ul><ul><ul><ul><li>Product accuracy </li></ul></ul></ul>
    8. 8. Health Check <ul><li>Are your business processes putting you in a reactionary mode versus proactive mode? </li></ul><ul><ul><ul><li>Lost opportunity costs </li></ul></ul></ul><ul><ul><ul><li>Expedite costs </li></ul></ul></ul>
    9. 9. Health Check <ul><li>Do you have a clear understanding of the flow of information between your order administration, manufacturing, distribution, and delivery systems? </li></ul>
    10. 10. How did we get here? <ul><li>Fundamental ways that businesses sell to consumers has evolved during the last 100 years. </li></ul><ul><ul><ul><li>Country store </li></ul></ul></ul><ul><ul><ul><li>Catalog sales </li></ul></ul></ul><ul><ul><ul><li>Internet </li></ul></ul></ul>
    11. 11. Country Store <ul><li>Limited product offering </li></ul><ul><li>Consumer purchased what was on hand </li></ul><ul><li>Special orders were the exception </li></ul><ul><li>Direct sales to consumer - Knew what the consumer wanted </li></ul><ul><li>Store Keeper intimately familiar with inventory </li></ul><ul><li>Demand regional in nature </li></ul>
    12. 12. Catalog <ul><li>Expanded product line </li></ul><ul><li>Multiple methods for customer to purchase </li></ul><ul><ul><li>Phone, letter, fax, store </li></ul></ul><ul><li>Customer would get product when in stock - unreliable delivery </li></ul><ul><li>Product life cycle driven by publication of annual or seasonal catalogs </li></ul><ul><li>Customer demand determined well in advance of catalog publication. </li></ul><ul><li>Expanded marketplace - regional catalogs </li></ul>
    13. 13. Web based sales <ul><li>Mass customization </li></ul><ul><li>Immediate gratification </li></ul><ul><ul><li>In stock </li></ul></ul><ul><ul><li>reliable delivery dates </li></ul></ul><ul><li>Reduced cycle times </li></ul><ul><li>Frequent updates to product offering </li></ul><ul><li>Global marketplace </li></ul><ul><li>Direct customer relationship </li></ul>
    14. 14. CRM Initiative <ul><li>Concerns </li></ul><ul><ul><li>Time to market </li></ul></ul><ul><ul><li>In-house skills </li></ul></ul><ul><ul><li>Back office integration </li></ul></ul>e-Commerce $50M investment $250M Return
    15. 15. ERP Integration Division Division Division Department Department Department Cost Center Even the best ERP implementations have complex interrelationships Business Processes Data Flows Performance Indices Profitability
    16. 16. ERP Integration e-Commerce Division Division Division Department Department Department Cost Center <ul><li>The addition of e-Commerce initiatives strain these interrelationships </li></ul><ul><ul><li>Disparate technologies </li></ul></ul><ul><ul><li>Complex interfaces </li></ul></ul><ul><ul><li>Need for accurate and timely information </li></ul></ul>Data flow
    17. 17. ERP Integration Data flow e-Commerce Division Division Division Department Department Department Cost Center
    18. 18. ERP Integration e-Commerce Division Division Division Department Department Department Cost Center Alignment
    19. 19. ERP Integration e-Commerce Division Division Division Department Department Department Cost Center Supply chain adds another level of complexity
    20. 20. ERP Integration e-Commerce Division Division Division Department Department Department Cost Center Alignment
    21. 21. Typical SAP Internet Architectural diagram Internet Sales Platform Laptop or PDA Browser Customer Web Server Application Server Internet Sales Application Dynamic Content Management Order Management Personalization R/3 Internet Pricing & Configuration
    22. 22. How to achieve alignment <ul><li>Enterprise wide business process model </li></ul><ul><ul><li>Outward focused </li></ul></ul><ul><ul><ul><li>Business to Consumer </li></ul></ul></ul><ul><ul><ul><li>Business to Business </li></ul></ul></ul><ul><ul><li>Internal focus </li></ul></ul><ul><ul><li>Multidimensional </li></ul></ul><ul><li>Collaborative sharing of processes </li></ul><ul><ul><li>Marketplaces </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>customers </li></ul></ul><ul><ul><li>employees </li></ul></ul>
    23. 23. What makes a good business model? <ul><li>Enterprise-wide system definition </li></ul><ul><li>Tasks - Work step recording </li></ul><ul><ul><li>Work instructions </li></ul></ul><ul><ul><li>Accountability </li></ul></ul><ul><li>Role and organization elements </li></ul><ul><li>Graphical representation </li></ul><ul><ul><li>Swim Lanes </li></ul></ul><ul><ul><li>Decomposition </li></ul></ul><ul><li>Interactive feedback mechanism </li></ul>
    24. 24. <ul><li>NetProcess </li></ul><ul><ul><li>Creation and Documentation of business processes via the web </li></ul></ul><ul><ul><li>Repository of enterprise wide business processes </li></ul></ul><ul><ul><li>Foundation for business process flow diagrams </li></ul></ul><ul><ul><li>Role and Organization assignments </li></ul></ul><ul><ul><li>Transaction based feedback mechanism </li></ul></ul><ul><ul><li>Integration of LiveModel and LiveCapture technologies </li></ul></ul><ul><li>LiveSynchronizer </li></ul><ul><ul><li>Technical analysis of system and master data </li></ul></ul><ul><li>LiveInterface </li></ul><ul><ul><li>SAP centric data management </li></ul></ul>IntelliCorp Components
    25. 30. Transaction Summary Analysis - VA01
    26. 31. Filtering VA01
    27. 32. VA01 Initial Analysis
    28. 33. SAP Configuration Tree
    29. 34. Results of IMG Comparison - Materials
    30. 35. Results of Master Data Comparison - Material
    31. 36. Web Based Business Process Baseline <ul><li>Take a customer-centric and partner-centric approach </li></ul><ul><li>Capture actual transactions including those from R/3 </li></ul><ul><li>Create a baseline business process model utilizing a central repository </li></ul><ul><li>Using transaction history and baselined model </li></ul><ul><ul><li>Identify process bottlenecks </li></ul></ul><ul><ul><li>Identify training deficiencies </li></ul></ul><ul><ul><li>Basis for upgrade and new functions planning </li></ul></ul><ul><ul><li>Validation of testing completeness </li></ul></ul><ul><li>In new eBusiness environment, determine which processes need to be </li></ul><ul><ul><li>Retained </li></ul></ul><ul><ul><li>Refined </li></ul></ul><ul><ul><li>Replaced </li></ul></ul>
    32. 37. Web based Business Process Fundamentals <ul><li>Companies Must Align Technology with Corporate Vision </li></ul><ul><ul><li>Utilize eBusiness channels </li></ul></ul><ul><ul><ul><li>Retain most profitable customers </li></ul></ul></ul><ul><ul><ul><li>Reduce the cost of sales </li></ul></ul></ul><ul><ul><ul><li>Use relationship with customer as competitive advantage </li></ul></ul></ul><ul><ul><li>Implement a successful end-to-end CRM and eBusiness solution </li></ul></ul><ul><ul><ul><ul><li>Reduce transformation costs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Accelerate deployment </li></ul></ul></ul></ul>
    33. 38. Maintain a Customer Perspective <ul><li>Segment customers in terms of the lifetime value of the relationship </li></ul><ul><li>Review processes from the customer perspective </li></ul><ul><li>Redesign processes to increase value to customers </li></ul><ul><li>Remove frustration points from customer </li></ul><ul><li>Consider multiple customer contact channels </li></ul><ul><li>Support continuity of customer dialogue across channels </li></ul><ul><li>Review the end-to-end process to ensure that back-office and front-office processes are aligned to support order fulfillment </li></ul>
    34. 39. IntelliCorp <ul><li>Provides eSolutions for SAP customers </li></ul><ul><li>Co-developed the SCE & SPE with SAP </li></ul><ul><li>Leading IPC implementor </li></ul><ul><ul><li>SFA & eCommerce </li></ul></ul><ul><ul><li>B2B, B2C & B2R </li></ul></ul><ul><li>Most production deployments of the IPC </li></ul><ul><li>Leading provider of SAP lifecycle products: </li></ul><ul><ul><li>LiveModel: scope, plan, test, train, upgrade </li></ul></ul><ul><ul><li>LiveInterface: best-of-breed R/3 integration </li></ul></ul><ul><li>SAP owns over 10% of IntelliCorp </li></ul>
    35. 40. IntelliCorp Solution Offerings <ul><li>S7 Solution Portfolio </li></ul><ul><ul><ul><li>eBusiness Transformation Solution </li></ul></ul></ul><ul><ul><ul><li>B2B Procurement Solution </li></ul></ul></ul><ul><ul><ul><li>Internet Sales Solution </li></ul></ul></ul><ul><ul><ul><li>SFA Implementation Solution </li></ul></ul></ul><ul><ul><ul><li>Sales Configuration Solution </li></ul></ul></ul><ul><ul><ul><li>Upgrade Solution </li></ul></ul></ul><ul><ul><ul><li>Consolidation Solution </li></ul></ul></ul>
    36. 41. Questions and Answers <ul><li>The conference line will now be opened for audience questions… </li></ul><ul><li>To discuss a specific business area or project please call or email: </li></ul><ul><ul><li>(888) MODEL-R/3 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Thank you for joining our discussion today </li></ul>
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