Transcript HP Dutch World 98 Presentation

HP Dutchworld
Electronic Commerce Integrity
What happens if something goes wrong?
Alexander Drobik
Research Director
GartnerGroup
October 1998
Definition: EC and Extranet Applications
Applications
• EDI
• E-Storefront
• E-Procurement
• E-Catalogues
• E-Billing/Payment
Supplier
Strategies
• Coercion/Collaboration
• Channel extension
• Supply chain mgmt.
Consumers • Community Extranets
• E-Marketplace mgmt.
Electronic Commerce
and Extranet Applications
Technology Issues
Community
• Buy vs. build
• Web security
• Standardisation
• Web vs. Extranets
• EC objects
Customer
Management Issues
• EC outsourcing
• EC organisation
• Content and context
• Regulatory and tax
• Willingness to pay
Impact of EC on Industry Restructuring
Investment
by Leaders
EC will impact
marketing, selling
and customer service
EC will impact structure of
offerings and how delivered
EC will restructure
the entire industry
Information as a Percent of the Total Offering
Impact of EC on Industry Restructuring
Investment
by Leaders
Logistics
Consumer Prod.
Manufacturing
Delivery
Transportation
Automotive
Manufacturing
Government
Services
EC will impact
marketing, selling
and customer service
Information as a Percent of the Total Offering
Impact of EC on Industry Restructuring
Investment
by Leaders
Logistics
Consumer Prod.
Manufacturing
Telecom
Healthcare
Home Services
Delivery
Transportation
Retail
Grocery
Automotive
Manufacturing
Government
Services
EC will impact
marketing, selling
and customer service
Book
Selling
Office Supplies
X-Mart
Cards and
Gifts
Retail
Dry Goods
Recreation
and Leisure
EC will impact structure of
offerings and how delivered
Information as a Percent of the Total Offering
Impact of EC on Industry Restructuring
BANK
Investment
by Leaders
Banking
Entertainment
Logistics
Consumer Prod.
Manufacturing
Telecom
Healthcare
Home Services
Travel
Advertising
Delivery
Transportation
Retail
Grocery
Automotive
Manufacturing
Government
Services
EC will impact
marketing, selling
and customer service
Book
Selling
Office Supplies
Electric
Utilities
Publishing
X-Mart
Cards and
Gifts
Retail
Dry Goods
Recreation
and Leisure
EC will impact structure of
offerings and how delivered
Gaming
Stock
Trading
EC will restructure
the entire industry
Information as a Percent of the Total Offering
B2B Vs. B2C Paths to EC Strategic Success
High
Short-Term Strategies
Long-Term Strategies
E-Business?
Unassisted
Selling
Tech.-Enabled
Relationship Mgmt.
Integrated
Web Store
Business
Value
Collaborative
Extranets
Interactive
Marketing
Community
Extranets
Customer
Self-Service
B2C
B2B
Short-Term Projects
Low
Channel Master
Extranets
Procurement
Automation
Web Storefront
and E-Catalogue
Web Brochures
Supply Chain
Management
Operations Automation
Time to Implement
High
European Web-Commerce Market
$100 BN
1997 1998 1999 2000 2001 2002
• European ‘Hockey Stick’
• Jam tomorrow BUT some Gems
• Business-to-Business Focus
• European Market Inhibitors
– Multiple Currencies
– Multiple Tax Domains
– Multiple Legislation Domains
– Low PC & Internet Adoption
– Less Perfomant Internet
Impact of EC Enablers Over Time
Affects
Business
Strategy
Affects
EC
Strategy
Affects
EC
Imple.
Extranet
EC Apps.
Web-EC
WEB-EDI
EDI
Content
Rationalisation
VendorDriven
EC Stds.
Little
EC
Impact
Internet
Security
1998
Component
EC Apps.
Packaged
EC Apps.
Subsidised
Apps.
Affects
EC
Marketing
Real-Time-Capable
Packaged EC Apps.
XML
Standard
(content)
OBI
Procurement
Standard
Distributed
ProcessEC Object
E-Bills
Ware
Apps.
Certification
SET
E-Payment
Standard
1999
Networked
EC Apps.
2000
Agents
Smart
Cards
2001
Micro
Payments
2002
2003
Real-Time Applications? Gets Real!
Public
Internet
Dealer
Dealer
Consumer
Network and Content Redundancy
FTP Server
Content
Changes
Interactive Hosting
and Development
Back
End
Web
Content
Server
Development
New Apps.
Server
Online
Dynamic
Server
High-Speed
Private Fibre Net.
Tape
Library
Backup Server
Storage
Array
EC Creates Data Velocity Disconnects
Seconds or Minutes
Front-End
EC
Purchase Manager
or Consumer
EC Integration SW
Vendor or Custom
Code From SI Vendor
Public
Internet
Proprietary APIs
E-Catalogues,
E-Procurement,
Messaging, EDI,
E-Payments,
Interactive Apps.
ERP Vendor or
Other Packaged
Application
X-Mart
Purchase Manager
or Consumer
Retailer
Reseller
Back-End
EC
Available
to Promise
Warehouse
Carrier
Manufacturer
Non-integrated File Transfer and EDI
Days or Weeks
Technology
changes
drive the
fulfilment
processes
faster.
SCM Visibility and Process Smoothing
Plant
Scheduling
DC Replenishment
Retail
Replenishment
Deal Buying
Flow of Data, Flow of Goods
Delivery
How “Smooth” Can Replenishment Get Through the Chain?
VMI-Driven Spikes
Smooth Idealism of SCP
Messy Reality
Web SCM: Vendors’ Variability Vision
Web-Based Apps. and Repositories
Purchasing
Capacity Planning
Order
Management
Buying
Co-operatives
Personalised
Customer
Database
Network Planning
Sales and
Operations Planning
Demand Planning
Distribution
Planning
Production Planning
and Scheduling
Transportation
Planning
Minutes
Application Integration Layer
Component
Assemblers
Years
Planning Horizon
Personalised
Supplier
Database
Deployment
Planning
Inter-enterprise Vision of SCM Applications
Distribution
Centre(s)
Carriers/
Fleet Mgrs.
Plant
Warehouse(s)
Manufacturing
(Sites)
Reality: Limited Near-Term Variability
Web-Based Apps. and Repositories
Purchasing
Deliverable Reality,
1998-1999
Capacity Planning
Order
Management
Buying
Co-operatives
Personalised
Customer
Database
Network Planning
Sales and
Operations Planning
Demand Planning
Distribution
Planning
Production Planning
and Scheduling
Transportation
Planning
Minutes
Application Integration Layer
Component
Assemblers
Years
Planning Horizon
Personalised
Supplier
Database
Deployment
Planning
Inter-enterprise Vision of SCM Applications
Distribution
Centre(s)
Carriers/
Fleet Mgrs.
Plant
Warehouse(s)
Manufacturing
(Sites)
E-Business: High Level & Invasive
Supply Chain Management
“Virtual
Partners”
Business
Partners
Informal Info.
Sharing Deals
Admin &
Operations
Distribution
Channels
Customers
Potential
Customers
Product
& Service
Creation
Supply
Chain
Technology-Enabled Relationship Management
Suppliers
Legally
Defined
Enterprise
Marketing,
Sales &
Service
Electronic Commerce Back Office
& Influencers
Logistics
& Fulfilment
Potential
Competitors
“Just a URL &
a Dream”
Industry
Network(s)
Competitors
Web Commerce Front Office
E-Business Architecture Components
Marketing Procurement
Transpor- Inventory
tation
Mgmt.
Order
Mgmt.
Customer
Service
Membership
Directory
Application
Rulebooks
Content
Databases
Dynamic
Pricing
APIs, Message Queuing, Processware
Common Data Warehouse
Semantic Reconciliation
TP Data Cleaning Tools
Consultantware
Integration Services
Transaction Manager
EDI/EC Software and Svcs.
Personalisation
EC Tools
and
Services
Catalogues/Configurators Extranet Member Controls
Firewall
Customer Service
Firewall
Extranet/VPN
Procurement
Marketing
Logistics
Intranet
Users
Direct
Channel
Suppliers
and
Customers
Web Browsers:
Std. Look and Feel
Indirect
Channel
Internet
Channel
Partners
E-Business Recommendations
For Enterprises
For Vendors
Analyse the E-business
“forcing functions” in your
industry or market. Decide
when and how to act.
Focus on solving the “SI
burden” of E-business. Deliver
solutions to reduce the 20-to-1
services to software.
Begin to work to get SCM,
TERM and EC teams to
communicate and develop
common goals and strategies.
Partner with applications
vendors to deliver quality,
reliable and performant EC
solutions.
Develop the financials for new
business models, new
sources of revenue, and new
processes and partners.
For the majority of EC
vendors, forget the “land grab”
game. Get focused and build
a defensible market.
Electronic Commerce Integrity
What happens if something goes wrong?
You lose your business!
Thank You