Transcript E-Commerce Inside the Enterprise

E-Commerce Inside the
Enterprise
MD853
November 22, 2003
Topics for Today
• Looking ahead:
– Papers and presentations for Dec 6
– Final exam format
– Web services topic moved to Dec 6 class
• Catch up on CRM & industry impact
• Enterprise search models
– Guest speaker: Peter Bauert, Fast Search
• Knowledge Management, E-Learning and the
Real-Time Enterprise
• Macro analysis of global IT and E-Commerce
– Guest speaker: Gigi Wang
Knowledge Management Defined
Organizing and effectively
deploying the intellectual
assets of an organization
Components of “Knowledge”
• Data
– Statistics, observations, other objective and
quantifiable metrics
• Information
– Data that informs decisions and leads to action
• Knowledge
– Information or experience that has been
interpreted by applying (human) intelligence
• Tacit
• Explicit
• Cultural
Assistance from “Business Intelligence”
Tools
Any tools enabling people to make better decisions and
thus improve their business processes
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Examples:
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Decision support systems (DSS)
Executive information systems (EIS)
Reporting
Data mining
CRM
KM
The Enduring Challenge
• How do you turn data and information into
knowledge?
– Role and limits of IT and software tools
– Role of the Internet and the web
• Capturing and organizing data
• Communicating what employees and organizations
know tacitly and explicitly
– Intranets
• The human dimension
The Rise of Intranets for for ad-hoc KM
• Technical capabilities
– Universal, standardized front end
– Distributed, low cost access
• Organizational drivers
– Grass roots implementation easy
– Project and need specific—quick results
– Visible ROI for web investments
• Issues and barriers
– Lack of central control & corporate consistency
– Substitute for commercial solutions
– HP, Microsoft, Ernst & Young experiences
From Intranet to Extranet
• Natural outgrowth of E-Commerce
• Sharing data and information with partners
and customers
– What about protecting and sharing knowledge?
– Risks and strategic opportunities
• IBM Global Services knowledge web
experiment
– Lessons learned
ERP Meets Web-Based KM
• Enterprise Resource Planning programs
– Planning and Scheduling of Resources
– Have (70’s) roots in Materials Resource
Planning
• Materials Requirement Planning (MRP)
• Manufacturing Resource Planning ( MRP II)
– Enabled by Data Base Management systems
• Supply Chain Management
• Value Chain Management
– More Recently Integrated with Internet/Web and
with KM and Information Management Systems
and e-Learning
Typical Motivation for Embarking on
KM Implementation
• Management perceives a Problem and an Opportunity
– The “interface” problem – systems don’t communicate
• Lack of integration of disparate systems
• Difficulty of reconciling data from disparate systems
• Delay in processing transactions
• The opportunity to do more for less
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Reduce cost of interfaces
Improve speed of responses and efficiency of processes
Increase customer satisfaction
Make smarter decisions about products and strategy
Before Data Integration and KM…
Manufacturing
location 1
Finance
My growth
will be OK . No?
Corporate office
Sales Group
Manufacturing
location 2
Integration of Data to Support KM
IS messages
IS messages
Manufacturing
 Local
purchasing,
invoice verification
 Inventory management
 Internal sales,
shipping and billing
 Profit/loss
 Capacity utilization
Head Quarters
 Information
Systems:
 Project Mgmt
 Inventory
 Purchasing
Sales
 Budget
 Cash Management
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Marketing/Sales
 Sales,
shipping
and billing
 Purchasing of
trading goods
 Inventory
Management
 Customer service
Input=Information Output=Smarter Decisions
Result = Knowledge
Ta-DA!
Expectations That May Not
Match Reality
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One system can integrate all data from all sources
Seamless interfaces are possible
Frictionless transactions
Instantaneous data access
Information leading to the right action/decision
Transforming that information into knowledge—
intellectual capital for the company
Barriers to Full Deployment of
CRM and KM Systems
• Very high cost of implementation
– Dollars
– Person Power
• Often forces a change in process
• Requires extensive training of employees
• Takes a long time to implement
Why does it fail so often?
• Failure to define requirements going in.
– War stories
• Poor selection of package and platform
– Software, hardware, DB
• Inadequate resources budgeted for the transition
– Money and People
• Resistance to Change
– Easier for you to adapt to it, than it to you.
– Some processes will need to change
– Lack of end user “buy-in.” Stake holders.
• No Realistic Plans or Process to Measure Results
– Lack of ROI metrics and measurement
What leads to success?
• A company that understands and carefully
documents its needs.
• Adequate resources for the project
• Flexibility to adapt existing processes
• Change management commitment
– Enlist, empower, communicate, lead, listen, train
• Train and train some more
• Follow through, evaluate and adjust (don’t
abandon)
“Best Practices” for KM Implementation
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Do not start without Management commitment
Allocate sufficient funds and time
Identify core Project Team
Select specialists from all functional areas
Evaluate and select commercial package
Evaluate and select implementation partner (s)
Make an implementation plan with realistic timeline
and explicit resources
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Present plan to Management for feedback/buy-in
Present plan to Employee groups for feedback/acceptability
Plan for user training
Plan for adjustments and future upgrades
Are We Smarter Yet?
• Many E-Commerce business models assumed that
there was intrinsic value in aggregating data and
information
– About customers
– About buyers and sellers (e-markets)
– About internal business processes (e-value chains)
• Many IT tools and software solutions do the same
• Neglect the challenges of knowledge management
as key to unlocking that value and changing
organizations
• Integration of Internet and commercial solutions
still at primitive stage