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Moving up the E-Commerce Maturity Curve
 

Moving up the E-Commerce Maturity Curve

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  • The session is entitled, “Moving up the eCommerce Maturity Curve”  The session description is: Your customers have "forced" you to participate in their ecommerce initiative!   And now that you've decided to invest, what are the best practice approaches to enable ecommerce with your customers and transform your business to an ecommerce savvy sales organization?    In this session you will be able to evaluate your ecommerce maturity versus best-in-class companies.  Experts from Ariba's Seller community will share their success stories and best practices for attracting new business and becoming a more savvy user of the Ariba Network.
  • Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselvesThis represents 65% of companies still in this Enablement mindset. When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  • Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselvesThis represents 65% of companies still in this Enablement mindset. When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  • Collaborative business eCommerce is an evolutionary process for both buyers and sellers - On both sides, there are opportunities to grow together with your customers or your supply base.From a Seller perspective, perhaps you are Reacting to your first customer requests for an ecommerce connection, or as an organization you have moved up the maturity curve to be able to Respond to multiple customer requests, but your company still views eCommerce as an “Enablement Technology” as opposed to an “Transformational technology.”Companies that utilize eCommerce to Transform with businesses really have put the effort and resources behind creating an establish repeatable process for expanding their footprint across geographies and to multiple trading partners. Even to the point of bringing innovative or products/services and funding key differentiational products/services to enable them to proactively capture, retain and grow customer revenue, loyalty and satisfaction. In a recent survey conducted by Ariba in partnership with Selling Power, 19% of companies identified themselves as Reactive46% of companies identified themselves as Responsive20% of companies identified themselves as Proactive11% of companies identified themselves as InnovativeThe remaining did not identify themselvesThis represents 65% of companies still in this Enablement mindset. When we interviewed companies, many are struggling with how to move up the maturity curve to transformational mindset and how to build a business case to move towards transforming their company to an eCommerce Innovator.So with that in mind, our two speakers today will speak about how they built a business case and determines an ROI for their investment in driving eCommerce innovation within their respective companies.
  • Note to Janet: I got this image from their website page.
  • companies spend as much on professional information as they spend on office-supplies – sometimes even more …… but they don‘t know how much exactly and what for (newspapers, journals, books, e-books, databases, lincenses, documents, standards, …)with Schweitzer being their one and only source they know – every minutewe handle and manage all subscriptions (about 80% of the costs a reccuring)we even save them 10, 20 sometimes up to 40 % of their spending and up to 80% on process costsour business model: trading, so basically we are a bookseller or like somebody at an SAP meeting once called it: media subscription service provider ….
  • Note to Janet: Need something that transformation. Maybe like the 4 columns we did for the Seller Collaboration Level 0 presentation..Have 8 images for old to new with the text in the middle..Picture of old paper catalog  Online catalog (Screen capture of http://www.schweitzer-online.de/shop/webmed.exe/key=60911774213356673432641740042725O01/StoreFront/main.ipm)Maybe a handwritten shopping list  “buy now” button like from eBayPaper subscription renewal card  e-mail saying subscription renewed..Paperbook on shelve  image of book that with maybe lines going out from it to places on the globe..
  • a USP (including the processes we developed)reduced the number of competitorsmore customers (yes, they call us now)more volume per customer (up to 500%)customers stayed longer (5-10 years)improved internal processes (more customer care, less typing orders and invoices)
  • it started back in 2002 w/ a customer requestfirst motivation: simply to keep the customerit started as a single individual project …… which made it expensive!e-pro readiness turned out to be a USP (Unique Selling Point)more and more wanted to use usbut: we even rejected the first ARIBA customer!
  • Janet: Image here is to convince management of doing something.
  • Follow-on image to the one in slide 17 to show we convinced executive management to do it..
  • Arrow 1: Death Valley, missing the e-Procurement-BusinessArrow 2: a huge Competitor went off stage and was bought by SchweitzerArrow 3 and 4: Economic crisis (so being stable is actually a “raise”) and %age of e-procurement increased (cost awareness)
  • not only respond to, but sold the eProcurement process to our customers & included it in our marketingwe used e-procurement “ability” as a USP eliminated maverick buying with existing customerswe used our e-procurement partners as a network& co-brandwe developed industry specific services and processes for the e-procurement arena
  • Note to Janet: I was thinking this is a build slide with automation where there are 5 items/companies that disappear as Schweitzer grows..in our whole industry only about 5 companies did the same and we split the market amongst us – all others went off stage within less than 5 years
  • we spent money in software development and built a more or less “1 click to connect a customer”-systemwe hired full time project managerswe trained the sales people so they would not need IT backup and could steer the customers rightwe hired “ME” to facilitate the E-Procurement Program of the company
  • improve the catalogue (for better quality accuracy)close the “holes” automatically import e-Orderscreate standard processes & software toolsuse electronic and automated invoicingthink of using e-procurement ourselves

Moving up the E-Commerce Maturity Curve Moving up the E-Commerce Maturity Curve Presentation Transcript

  • S Moving Up the E-Commerce Maturity Curve Austin Whitehead, Ariba Tracy Lamb, Systemax Europe, Ltd. (trading as Misco) Alexander Graff, Schweitzer FachInformationen© 2012 Ariba, Inc. All rights reserved.
  • E-Commerce Evolution 11% Innovative 65% Expand Collaborative Commerce 20% collaborative Proactive channel and Business Value Establish poise for repeatable growth globally 46% Responsive processes while expanding the 19% Expand with footprint across Reactive additional geographies, Initial efforts to process and/or processes, address spend/ accounts business units, comply with trading partners customer requests Enablement Transformation Phases of Buyer and/or Seller Evolution *SOURCE: Selling Power Survey 20112 © 2012 Ariba, Inc. All rights reserved.
  • E-Commerce Evolution 11% Innovative 65% < $1M: 7% Collaborative Commerce 20% $1M - $10M: 18% Proactive $10M - $100M: 25% Business Value $100M - $1B: 11% < $1M: 18% > $1B: 39% $1M - $10M: 26% 46% $10M - $100M: 22% Responsive $100M - $1B: 16% > $1B: 18% 19% < $1M: 22% Reactive $1M - $10M: 24% < $1M: 30% $10M - $100M: 24% $1M - $10M: 16% $100M - $1B: 12% $10M - $100M: 24% > $1B: 18% $100M - $1B: 8% > $1B: 22% Enablement Transformation Phases of Buyer and/or Seller Evolution *SOURCE: Selling Power Survey 20113 © 2012 Ariba, Inc. All rights reserved.
  • How Do You Move up the Maturity Curve? Innovative Expand Collaborative Commerce collaborative Proactive channel and Business Value Establish poise for repeatable growth globally Responsive processes while expanding the Expand with footprint across Reactive additional geographies, Initial efforts to process and/or processes, address spend/ accounts business units, comply with trading partners customer requests Enablement Transformation Phases of Buyer and/or Seller Evolution4 © 2012 Ariba, Inc. All rights reserved.
  • How Do You Move up the Maturity Curve? Innovative Expand Collaborative Commerce collaborative Proactive channel and Business Value Establish poise for repeatable growth globally Responsive processes while expanding the Expand with footprint across Reactive additional geographies, Initial efforts to process and/or processes, address spend/ accounts business units, comply with trading partners customer requests Enablement Transformation Phases of Buyer and/or Seller Evolution *SOURCE: Selling Power Survey 20115 © 2012 Ariba, Inc. All rights reserved.
  • What Kind of Company Are You? • Best Cost Model • Best Total Product • Best Total Solution • Competes on most • Competes on best • Competes on efficient cost product/ service in knowing customer model marketplace better than they know themselves Operational Product Customer Excellence Leadership Intimacy • It’s About YOUR COMPANY’S CULTURE You must do at one of these well • YOUR eCOMMERCE BUSINESS CASE MUST You may do two of these well SUPPORT YOUR COMPANY’S CULTURE! • Considered impractical/ impossible to do all three well6 © 2012 Ariba, Inc. All rights reserved.
  • S Moving Up the E-Commerce Maturity Curve Tracy Lamb Systemax Europe, Ltd. (trading as Misco) Director, European Business Development© 2012 Ariba, Inc. All rights reserved.
  • Speakers Today Tracy Lamb, Director Global Accounts Systemax, Inc. Tracy’s current role is managing Europe’s largest customers, however the majority of her 20+ year career has been in multi-channel marketing. She joined Systemax Europe as Director Business Development from Misco’s sister company TigerDirect in 2005 based in Miami. She lead the eCommerce strategy with an online presence in 12 markets supporting 8 languages and 3 currencies. For the past 18 months, her focus has shifted to developing a Pan Euro Bids & Tenders team to address the increasing demand for consolidation and “single source” procurement by customers while keeping local account management. Engagement with Ariba is a big part of this strategy.8 © 2012 Ariba, Inc. All rights reserved.
  • Overview • Founded 1949 as Global Equipment Company in Queens, NY • 1989 – Corporate headquarters established Port Washington, NY • Early 90s – Misco acquired (founded in 1980s in UK, Germany, Italy, Spain, France and Canada • 2008 – CompUSA assets acquired • 2009 – Circuit City assets acquired • 2009 – WStore Europe acquired (founded in 1980s in France and UK) • 2011 – $3.7 billion turnover • Employees exceed 5,000 A Fortune 1000 (#562) company, sells personal computers, computer components and supplies, consumer electronics and industrial products through a system of branded e-Commerce websites, retail stores, relationship marketers and direct mail catalogs in North America and Europe.9 © 2012 Ariba, Inc. All rights reserved.
  • Systemax North America Technology Group Trading as TigerDirect, Circuit City, Global Industrial and CompUSA • 15 call centers in the USA and Canada • 500+ outbound sales agents • 43 retail stores10 © 2012 Ariba, Inc. All rights reserved.
  • Systemax Europe Technology Group Trading as Misco and Inmac-Wstore • Call centers in 8 markets: France Netherlands Germany Spain Ireland Sweden Italy UK • Also support Austria, Belgium, Portugal, Switzerland, Nordics and CEE • 600+ outbound sales agents • Combined 30k m2 warehouse11 © 2012 Ariba, Inc. All rights reserved.
  • European Revenue by Country 0% 2% 4% 7% UK 9% 40% France 10% Germany Netherlands Italy 27% Spain Sweden Ireland12 © 2012 Ariba, Inc. All rights reserved.
  • Why E-Commerce? • Our company roots are Direct Marketing. • E-Commerce is a natural extension of our B2B strategy. It complements the core local Account Management. • Most importantly, it’s the primary channel our customers want to procure goods.13 © 2012 Ariba, Inc. All rights reserved.
  • Systemax and Ariba • Reactive player until 2011 when we become an Ariba Platinum Partner Forced • Transformation was making the decision to be a pure B2B player early 2011 Invest • Currently 31 active ANIDs and growing, supporting North America and EMEA • In Europe, 2,500 transactions took place Best Practice between Ariba and various Misco entities for the 12 months ending March 2012 for close to $1mil.14 © 2012 Ariba, Inc. All rights reserved.
  • Systemax and Ariba • We’re aiming for a 50 percent increase in revenue and transactions through Ariba by year ending 2012. • We hope to move some partners to Ariba invoicing. • Strong collaboration with Ariba in conjunction with prospective customers. 2010/2011 Actuals & 2012 Projection 1600000 10000 1400000 8000 1200000 1000000 6000 800000 600000 4000 400000 2000 200000 0 0 2010 2011 2012 PO Amount (USD) Transactions15 © 2012 Ariba, Inc. All rights reserved.
  • Moving Up the E-Commerce Maturity Curve Alexander Graff Schweitzer Fachinformationen Head of Corporate Business© 2012 Ariba, Inc. All rights reserved.
  • Speakers Today Alexander Graff, Head of Corporate Business Schweitzer FachInformationen Alexander’s current role is managing all the E-Procurement based corporate business of the company. However, the majority of his 20 year career has been in software deveopment and information technology. Alex joined Schweitzer FachInformationen in 2007 and Program Manager, e-Procurement, and was responsible for the product portfolio, marketing and sales in the e-procurement business programs. With e-Procurement spreading through the whole customer base in the corporate sector, the position was redefined to the Head of Corporate Business (one of three business programs).17 © 2012 Ariba, Inc. All rights reserved.
  • Facts and Figures about Schweitzer • Founded in 1868 (pre e-procurement era) • Since 1972 owned by the C.H. Beck publishers • 39 sites in Germany • One site in the US • Volume 170 million Euro (90 million e-procurement) • 700 staff18 © 2012 Ariba, Inc. All rights reserved.
  • What We Do Provide companies with catalogue, process and content to implement the best way to buy and use external knowledge (professional information)19 © 2012 Ariba, Inc. All rights reserved.
  • The Hidden Spend: What We Deliver to Our Customers Schweitzer creates transparency on your spend: Eliminate What does your organization 40%spending of your spend on professional 80% of process cost information?20 © 2012 Ariba, Inc. All rights reserved.
  • How We Transformed Our Industry Excellent catalog “Share “Active E-Book Library print, online, electr or Buy” Subscription (buy once, onic, audio feature Renewal” use worldwide)22 © 2012 Ariba, Inc. All rights reserved.
  • Benefits to Schweitzer Unique Reduced More Selling Point competition customers (USP) Improved More customer Customers Internal volume stay longer processes23 © 2012 Ariba, Inc. All rights reserved.
  • Journey to E-Commerce • BUT: we even rejected the first ARIBA customer! • More and more wanted to use us • e-pro readiness turned out to be a USP (Unique Selling Point) • It started as a single individual project …… which made it expensive! • First motivation: simply to keep the customer • It started back in 2002 with a24 © 2012 Ariba, Inc. All rights reserved. customer request
  • How Do You Sell “Expensive” Customers to the Management? Reasons and what we looked at • Learning curve and initial setup (people and software) • Volume was too small • We had never-ending e-Procurement projects • E-Pro outside + old school process inside = bad!25 © 2012 Ariba, Inc. All rights reserved.
  • So, Why the Pain? • We felt it could make us unique • We could improve our internal processes • We saw that the values customers looked for changed • We could provide our customers with additional value other than discounts • We liked being innovative26 © 2012 Ariba, Inc. All rights reserved.
  • Climbing “Mount Turnover” 200 Economic Crisis 180 Acquired Competitor 160 140Turnover in Millions Death Valley 120 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year27 © 2012 Ariba, Inc. All rights reserved.
  • What We Did on the Sales Side • We sold the E-Procurement process to our customers and included it in our marketing Sales • We used e-procurement “ability” as a USP • Eliminated maverick buying with existing customers • We used our e-procurement partners as a network and co-brand • We developed industry-specific services and processes for the e-procurement arena Processes Organization28 © 2012 Ariba, Inc. All rights reserved.
  • The “Side Effect” Company Company Company Company A B C D29 © 2012 Ariba, Inc. All rights reserved.
  • Transforming the Organization • We spent money in software development and built a more or less “1 click to connect a customer”-system • We hired full-time project managers Sales • We trained the sales people so they would not need IT backup and could steer the customers right • We hired “ME” to facilitate the E-Procurement Program of the company Processes Organization30 © 2012 Ariba, Inc. All rights reserved.
  • What We Did/Do with the Processes • Improve the catalogue (for better quality accuracy) • Close the “holes” automatically import e-Orders Sales • Create standard processes and software tools • Use electronic and automated invoicing • Think of using e-procurement ourselves Processes Organization31 © 2012 Ariba, Inc. All rights reserved.
  • What You Need To Do • Make it a part of your sales and marketing strategy • Invent your own specific e-procurement based products and services • Partner with the e-procurement providers • Re-define your internal processes • Hire the right people • Show your customers the numbers: this will make them stay and (mostly) not ask for discounts32 © 2012 Ariba, Inc. All rights reserved.
  • Thank You Alexander Graff Head Of Corporate Business Schweitzer Fachinformationen oHG a.graff@schweitzer-online.de +49 89 55 134 - 11633 © 2012 Ariba, Inc. All rights reserved.
  • Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations**34 © 2012 Ariba, Inc. All rights reserved.
  • Q&A35 © 2012 Ariba, Inc. All rights reserved.