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Debunking the E-Commerce Myths
The document discusses common misperceptions around e-commerce and how three companies have addressed them. Tammy Wagner from SHI International discusses initial fears around e-commerce disintermediating customers but finding it improved customer service. Joni Anderson from OfficeMax explains how appointing a Chief Digital Officer helped advance their e-commerce strategy. Ken Redler from cSubs debunks the myth that e-commerce requires large budgets, detailing how they integrated with Ariba with fewer resources than expected.
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Debunking the E-Commerce Myths
- 1. Debunking the Debunkingthe E-Commerce Myths: Addressing Common Misperceptions to Take E-Commerce to the Next Level © 2013 Ariba, Inc. All rights reserved.
- 2. #AribaLIVE Presenters • Tammy Wagner AccountManager SHI International Corp. • Joni Anderson Director of Digital Commerce Business Relations OfficeMax Workplace℠ • Ken Redler CTO cSubs © 2013 Ariba, Inc. All rights reserved.2
- 3. #AribaLIVE ECOMMERCE DISINTERMEDIATES ME FROM MYCUSTOMER Tammy Wagner, Account Manager, SHI International Corp. © 2013 Ariba, Inc. All rights reserved.3
- 4. #AribaLIVE About me © 2013Ariba, Inc. All rights reserved.4 • Responsible for managing and supporting 18 Enterprise commercial customers • Worked extensively with SHI’s customers to help them understand the ecommerce options that SHI offers • Work closely with SHI’s eCommerce team to provide first class customer service while keeping the customers’ best interest in mind. • My consultative approach to account management resulted in AGCO doubling their spend with SHI and triple their transactions.
- 5. #AribaLIVE About SHI International Globalproviderof IT Products,Servicesand Solutions 24th Anniversary in Nov, 2013! • 100% Organic Growth (30% CAGR) since 1989 $ 5 Billion+ Projected Revenue in 2013 • $ 4.4B ‘12 (+16% vs ’11); $3.8B ‘11 (+28% vs ‘10) • Doubled revenue and headcount since 2009 Expertise & Proven Track Record • Largest Enterprise VAR in N. America • Largest global SW VAR / Licensing Expertise • Best Value in commodity IT (Best Price) • Extensive Value Solutions & Portfolio • Innovative IT Asset Management Solutions • Next Generation Cloud Platform • Largest Woman & Minority owned Business in North America - same ownership for 24 yrs © 2013 Ariba, Inc. All rights reserved.5
- 6. #AribaLIVE Journey to E-Commerce ©2012 Ariba, Inc. All rights reserved.6 • Started back in the mid-90’s to help manage order volume and streamline processes • First motivations to keep customers happy and costs down. • E-Commerce fit into company culture: very efficient, very effective • I would not have control and Service would not meet expectations!!!! • How would it impact my relationships with my customers? • It was Scary!
- 7. #AribaLIVE Challenges and Obstacles ©2013 Ariba, Inc. All rights reserved.7 eCommerce Learn Talk Counterparts about experience and customer satisfaction Discuss Capabilities with customers
- 8. #AribaLIVE Results © 2013 Ariba,Inc. All rights reserved.8 Performance against overall Key Performance Indicators/metrics What do our customers say? See SHI as more of a valued partner How we did SunTrust AGCO Increase sales and volume of transactions
- 9. #AribaLIVE Lessons Learned & Recommendations ©2013 Ariba, Inc. All rights reserved.9 I can’t be afraid of change. I’m open to learning to help improve our customer’s experience and provide a higher level of service.
- 10. #AribaLIVE ECOMMERCE SHOULD BE MANAGEDBY IT, NOT MARKETING AND SALES Joni Anderson, Director of Digital Commerce Business Relations, OfficeMax Workplace℠ © 2013 Ariba, Inc. All rights reserved.10
- 11. #AribaLIVE $6.92B company Visit www.officemaxworkplace.com Over30,000 associates world wide Office products, furniture, technology and managed print services © 2013 Ariba, Inc. All rights reserved.11
- 12. #AribaLIVE OfficeMax and Ariba ©2013 Ariba, Inc. All rights reserved.12
- 13. #AribaLIVE © 2013 Ariba,Inc. All rights reserved.13 78 79 80 81 82 83 84 85 86 87 2008 2009 2010 2011 2012 74% 76% 84% 85% 86.9% % of E-Commerce Lines Percent Digital Transaction Lines Digital Growth at OfficeMax
- 14. #AribaLIVE © 2013 Ariba,Inc. All rights reserved.14 eCommerce Is an Evil Monster With Many Heads
- 15. #AribaLIVE ENTER THE “CDO” ©2013 Ariba, Inc. All rights reserved.15
- 16. #AribaLIVE © 2013 Ariba,Inc. All rights reserved.16 Source: Forrester Research, June 2012 Where Do You Fit in the Stages of B2B eCommerce Maturity?
- 17. #AribaLIVE © 2013 Ariba,Inc. All rights reserved.17 Will You Be Dragged Kicking and Screaming?
- 18. #AribaLIVE ECOMMERCE REQUIRES A SIZABLEIT BUDGET Ken Redler, CTO, cSubs © 2013 Ariba, Inc. All rights reserved.18
- 19. #AribaLIVE About Me • CTOand a Partner at cSubs • With the firm since 2004 • Previously owned a web application development company • Responsible for Technology strategy New product development Integration projects © 2013 Ariba, Inc. All rights reserved.19
- 20. #AribaLIVE About cSubs • SmallBusiness • 30 Years of Experience • Technology Focus Our differentiator and competitive advantage • Clients across Multiple Industries Many in the Fortune 500: Banking, Accounting, Healthcare & Pharma, Advertising & PR, Media, Manufacturing • Award-Winning Woman-owned Business Fortune 5000 Fastest Growing, WBE Certified, WBENC Star Award © 2013 Ariba, Inc. All rights reserved.20
- 21. #AribaLIVE About cSubs • KnowledgeResource Management: Managing the flow of information into the organization © 2013 Ariba, Inc. All rights reserved.21
- 22. #AribaLIVE © 2013 Ariba,Inc. All rights reserved.22
- 23. #AribaLIVE © 2013 Ariba,Inc. All rights reserved.23
- 24. #AribaLIVE The cSubs Timeline ©2013 Ariba, Inc. All rights reserved.24
- 25. #AribaLIVE The Myth • Requiresa big-company budget • Requires a large team • Requires too much time © 2013 Ariba, Inc. All rights reserved.25
- 26. #AribaLIVE We also expected complexity to bea concern… © 2013 Ariba, Inc. All rights reserved.26
- 27. #AribaLIVE The Journey • Whydid we jump in? Customers Opportunity RFPs © 2013 Ariba, Inc. All rights reserved.27
- 28. #AribaLIVE What Did WeExpect? • We found early procurement systems to be Buggy and poorly designed Time consuming and difficult to work with Poorly documented and supported • When a customer eventually came to us requesting Ariba integration: Here we go again! © 2013 Ariba, Inc. All rights reserved.28
- 29. #AribaLIVE So, What aboutThat Budget? © 2013 Ariba, Inc. All rights reserved.29
- 30. #AribaLIVE What Did WeGet? • Equal footing with other larger vendors • New implementation is now a known quantity • Building institutional knowledge • Every implementation starts at the 20 yard line • Lets us focus on what we do best • A stable architecture on which we have been able to start building new services © 2013 Ariba, Inc. All rights reserved.30
- 31. #AribaLIVE Why Was theJourney Easier than Expected? • Good documentation and support • Well-architected approach • Intermediation We build to an interface, the buyer builds to an interface Queuing, retrying, testing, punchout simulator • Far fewer person-hours than we had planned Rate-limiting steps usually revolve around the buyer Part of a project manager’s time, periodic developer time, rarely more than ten developer hours per week during an implementation © 2013 Ariba, Inc. All rights reserved.31
- 32. #AribaLIVE From Myth toOpportunity © 2013 Ariba, Inc. All rights reserved.32
- 33. #AribaLIVE Building a NewService • Licensed Content Management Fastest-growing segment of the market The future of knowledge resource management • Existing Ariba integration framework allows: Easy deployment of new web-based services to existing integrated customers: leveraging the flat curve Increased customer comfort with known environment Single sign-on, PunchOut Exposure to the Ariba Buyer marketplace can simplify and accelerate the new service go-to-market strategy © 2013 Ariba, Inc. All rights reserved.33
- 34. #AribaLIVE Clarity Sneak Peak •Web-based Management Interface • Advanced Purchase Decision Analytics © 2013 Ariba, Inc. All rights reserved.34
- 35. #AribaLIVE Take the Journey •If you already have an e-commerce site and a sound technical architecture, you’re well on your way • Less initial development effort than you might expect • Much less ongoing maintenance than you might expect • Market Opportunity • Decreasing marginal cost of new integrations • Consistency by intermediation © 2013 Ariba, Inc. All rights reserved.35
- 36. #AribaLIVE Thank You! © 2013Ariba, Inc. All rights reserved.36
- 37. Questions? © 2013 Ariba,Inc. All rights reserved.
- 38. #AribaLIVE Please Complete SessionSurvey Go to Surveys © 2013 Ariba, Inc. All rights reserved.38 Select Session Click Choose one Rate Session Thank you for joining us
Editor's Notes
- #6 John D’AquilaSHI Applications Support Manager John D’Aquila leads a team of professionals who support SHI’s customer-facing and internal applications, e-commerce platforms and integration, and data quality. His group provides innovative technology solutions to help SHI’s customers drive down the cost of IT acquisition, lower processing costs and provide superior visibility into their IT spend. John joined SHI in 2001 as a Accounts Receivables Representative where he effectively managed aged receivables organizations in 10 states for 2 years before moving to the e-commerce realm. He graduated from Kean University with a Master’s in Management Information Systems and Bachelor’s in Management Science. For more information, visit www.shi.com.
- #8 What are the challenges and obstacles (both internal and external ) to overcome on your journey-learn about eCommerce, talk to my counterparts about their experience and customer satisfaction. Once I felt comfortable, I started to discuss with customers and make them aware of our capabilities.How did you overcome and change to meet the challenge(s)-see above.Who did you have to work with/partner with on the journey-John D., large enterprise SHI reps
- #12 Our Approach:Reduce the total cost of ownershipManage an effective integrated solutions programEnsure end-user satisfactionIncrease productivityOptimize your purchasing powerRespond to environmental prioritiesComment on World’s most ethical companies two years in a row.
- #13 Ariba Ready Certified Platinum SellerOver 10 years of experience with AribaMember Ariba Supplier Steering Committee ***Past recipient of Ariba Spend Management Excellence Award*** $120+ Million in transactions in 201275+ current customers using Ariba40+ using punchoutIntegration is a ‘breeze’
- #14 On the maturity scale….Traditional EDI for over 15 yearsAll of this is customer driven, as we are completely customer centricOver these years developed proven methodologyDiscovery, data prep, build, test, implementWe integrate with over 15 different third party ecom providersPersonal opinion about Ariba- you guys rockOver 200 integrations per yearAt a time when B2B businesses are hurting in general, digital revenue shows double digit grown year after yearWhat drove us is speed to revenue for us, and being the customer advocate to allow customers to quickly realize savings by automating transactions
- #15 Ecom at OMX early days- here’s our myth…Thenecessary evil. IT owned the infrastructure so I guess it made sense for us to live there.Companies like us used homegrown systems repurposed from other internal uses (e.g., EDI portals) and because we didn’t have a dedicated budgetWe needed to stand in line to share IT resourcesStruggled to make informed budget and investment decisionsWe sat in IT because no one understood what we did- but we’re business people! Simply stated: WE WERE A CATALOG COMPANY- a paper catalog company who didn’t really know understandhow to grow digitally. We had teams of people who would try to manually add new items to our database, each differentlyThey didn’t think that a person might one day be trying to search for this item by description. Example of 1 inch white binder.Ariba was our first punchout experience as a supplier. In fact we piloted it with them. They opened our eyes to see the benefit of clean data from an online search perspective, leading us to develop processes that provided a consistent customer experience both in digital catalogs and via punchout.
- #16 So now have really gotten our act togetherCrawled out from under the IT rockCustomers have come to expect a b2c experience with b2b controlsCEO 100% supportEnter the CDOEvangelist Some old school colleagues were dragged in kicking and screamingTalk about how we are launching multiyear B2B eCommerce strategies and have built a solid core in-house eCommerce team based on the foundation of the Ariba integrations team. We are now digital commerce with our own P/L…dotted line to b2b salesIT partners and business folks alike report to CDOGrown 300 percent in the last year.We truly are now all about the marriage between IT and Marketing.At the end of the day, digital commerce is a marriage of businesses collaborating with some techie stuff mixed in.We get it.
- #17 So I’ve told you about our journey…Something for you all to ponder…Consider ourselves a practitioner in most aspectsMeasuring success along the wayEcomm is here and now and definitely the future/ We are all consumers- why wouldn’t we and expect a B2C type experience when we get to work?
- #18 We’ve been measuring our digital success along the way…Developing processes is what lead us to the 30 day promise with Ariba customers and others which:Speed to revenue… 30 day promiseAccelerate the sales cycle- win new business due to proven methodologyReduces errors- hands off!Get paid faster- reduces dso due to complete visibility actual example…..detailsImproves my customer retention- our commitment to excellenceAnd on and on…. Details on this.We’re able to use our experience with providers like Ariba to win new business and to retain existing business.Don’t be dragged kicking and screaming. Embrace…..
- #20 Humorous note, how many of you are also in small businesses – you all well know that in addition to these responsibilities, there’s a big catch-all at the bottom. Everything complicated eventually lands in your lap as a problem to solve with finite resources.AS COMPANY HAS GROWN RESPONSIBILITIES HAVE GROWN/CHANGED – STRATEGICDECISION TO MOVE TOWARD INTEGRATION W PROC. SYSTEMS, ARIBAMade early strategic call to begin integrating with systems like Ariba, despite being a small company with finite resources and fear of “the myth”.Proved to be the right decision for the growth and positioning of the company
- #22 Creating efficiencies in an old-line businessSingle Catalog of Magazines and BooksSingleSource ProcurementConsolidated BillingApproval and Accountability
- #24 Last frame intro: Our newest service, Clarity, a web based system designed specifically to allow organizations to manage their licensed content. I’ll talk about not only how working with a platform like Ariba hasn’t required a massive IT budget, but has in fact been an enabling tool that’s let cSubs direct resources at new products and services that take advantage of some of what integration with an enterprise procurement system allows.
- #25 History, quick humorous run through, 30 secNarrative line: physical to virtual, magazines to licensed contentSPK NOTE: WE TAKE A MESSY AND COMPLICATED OLD-LINE BUSINESS AND ABSTRACT IT, PUTTING A FRIENDLY AND EFFICIENT INTERFACE ON TOP – THAT’S HOW WE ADD VALUE
- #26 Poll users – show of handsConcerned about complexity, time, resources, budgetCustomers requested or demanded Ariba integrationRFPs started including the requirement
- #30 Discussion: double hump on overall architectural project cost, dip between those first humps when work became more customer specific, then a slight uptick afterward, which was cleanup, learning from experience, improving decisions made before we had experience. Then we reaped the benefit – architectural costs tail off toward a flat maintenance level, and each additional customer integration is a bit easier and quicker than the previous. We learn from experience, and the consistency of the environment/interface/API/methodology makes it easier over time to take on even larger customers.
- #34 On-the fly customization of purchased “items” from Clarity and similar new services can be immediately placed into a cart, routed for approval, and have an electronic PO received.
- #35 SPK NOTE: LET’S LOOK AT SOMETHING CONCRETECLARITY SCREENSHOT REF END OF TIMELINE, WE CAN BUILD A NEW SERVICE AND EXTEND IT AS A SERVICE TO EXISTING CUST W/ARIBA INTEGRATION, SEAMLESS, SSO, CUSTOMER COMFORT LEVEL, EASIER SELL, LESS FRICTION ETC