ERP & E-Commerce, Charlotte NC, December 11+12, 1999 sumit/wits99/index.htm Bernd Heesen Workshop on...

ERP & E-Commerce, Charlotte NC, December 11+12, 1999ERP & E-Commerce, Charlotte NC, December 11+12, 1999

http://www.utdallas.edu/~sumit/wits99/index.htm

Bernd Heesen

Workshop on Information Technology and Systems ‘99

ERP & E-Commerce New initiatives for the year 2000 and beyond


Evolution of Business

EDI: Electronic data interchange

EC = E-Commerce: Exchange of electronic data - on the web

Enterprise ResourcePlanning

Inter-EnterpriseCo-operation

e-CommunityCollaboration

Integration of BusinessProcesses Reduces Costs

Cooperation Along the Supply Chain Improves Efficiency

Collaboration Within Business Communities Creates Value


Evolution from Integration to Collaboration

Employee SelfService

IndustrySolutions

Interfaces

ALE

XML-enabled

Internet BusinessFramework (BAPI)

Supply ChainManagement

B2B Procurement

Customer RelationshipManagement

B2B-Selling

KnowledgeManagement Business

Scenarios

Portals/Communities

PartneringPlatform

Ap

pli

cat i

on H

ousi

ng

Enterprise ResourcePlanning

Inter-EnterpriseCo-operation

e-CommunityCollaboration

B2Consumer-Selling


Trends ? Why E-Commerce ?

US E-Commerce Software market to grow from 1999=$619Mio to 2002=$3.760Mio by 100%/year B2B potential is estimated at 41.4 trillion by 2003 - check.

Forrester Research, February/99 US Internet trade to rise from 1998=$43 Billion to 2003=$ 1.3 Trillion.

Forrester Research, December/98“By 2001, 50% of enterprises will selectively outsource applications management using a variety of traditional vendors, offshore providers, and staff augmentation firms (0.8 probability).”

Gartner Group External Service Providers Study, June, 1999“Through 2003, new players will continue to enter the outsourcing market; however, consolidation will accelerate as ASPs strive to obtain a larger scale, resources, global coverage, and niche or business process expertise (0.8 probability).”

Gartner Group External Service Providers Study, June, 1999Market Opportunity:

1998 1999 2000 2001

$90 $390 $1,880 $6,400(Millions)

“During the next five years the apps rental market will grow from a pittance to $6.4 billion, selling mainly to the middle and low-end markets.”

“By 2001, rental revenue will still be growing at more than 200% annually, and apps rental providers will account for more than 20% of total middle-market applications license revenue.” Forrester Research February/98

“The ASP market will total $2.7B by end of 1999 and will reach $22.7B by 2003.”Dataquest, 1999


ERP - Major Providers

Strategies for E-Commerce:OracleJD EdwardsBaanPeoplesoftSAP

Oracle is a trademark from Oracle Corp.J.D.Edwards is a trademark from J.D.Edwards CompanyBaan is a trademark from Bann Inc.Peoplesoft is a trademark from Peoplesoft Corp.mySAP.com is a trademark from SAP AG


Oracle

Headquarters: Redwood City, CATraded on NASDAQ as “ORCL”

1998 revenues: $8.8 Billion 1998 earnings: $1.3 Billion

Core ERP Systems: Oracle Applications 11, “fully Web-enabled” enterprise applications Now only supports browser-based clients with new releases. Will stop supporting

client/server architecture by1Q 2000

Internet Strategy: Early bet in internet technology - “the internet changes everything” Become a comprehensive E-commerce products and services provider Become leading ASP provider (Business Online), only ASP for Oracle, expected 50%

revenue in few years,Ellison: “One day in the not-too-distant future, all software companies

Supply Chain Management (iSCM) and Customer Relationship Management (CRM V3i)

Online trading community: Oracle Exchange: Internet-based open marketplace for B2B commerce. Currently 300

registered suppliers.


J.D. Edwards & Company

Headquarters: Denver, ColoradoTraded on NASDAQ as “JDEC”

1998 revenues: $934 million 1998 earnings: $75 million

Core ERP Systems: Browser based OneWorld (June release) multiplatform client/server WorldSoftware AS/400 mainframe (“green screen”)

Internet Strategy: Partnering with “best-in-class” providers: Siebel, Ariba Buying small companies with key offerings: Numetrix Emphasis on personalization, ease of use, ease of reconfiguration ActivEra portal Partnering for Customer Relationship Management (Siebel) Supply Change Management (E-Procurement) Partnering with ASP XML support for cross-platform B2B:

Microsoft Site Server 3.0 (ActivEra portal)

Microsoft BizTalk (XML) support planned


Baan

Headquarters: Barneveld, the NetherlandsTraded on NASDAQ as “BAANF”

1998 revenues: $736 million 1998 earnings: -$315 million

Core ERP Systems: BaanERP (the successor to Baan IV) Supply Chain optimization is core strength, but they have full suite of ERP products

Internet Strategy: E-Enterprise

E-Sales = Supply Chain Management E-Collaboration = Customer Relationhip Management E-Procurement: Operating Resource Management

Base ERP NOT internet enabled XML support for cross-platform B2B:

Microsoft Site Server 3.0 compliant Microsoft NetMeeting included in E-Collaboration

E-Enterprise - General Less intrusive (no portals) Microsoft 2000 compliant XML-based


Peoplesoft

Headquarters: Pleasanton, CARevenue/Profit:

1998 revenues $1.3 billion 1998 earnings $143 million

Core ERP system: A minor upgrade was released last spring with new HTML and Web deployable Windows clients. The next major

release, PeopleSoft 8 due mid-2000.( support XML for B2B)

Internet Strategy: Developing line of ebusiness products and buying or partnering with other specialized software vendors to provide industry specific

solutions: Partnered with PWC to develop ebusiness solutions for the insurance industry Alliance with Descartes Systems Group to optimize customer fulfillment for food and beverage companies

PeopleSoft e7.5 eBusiness Backbone: Linking Web and Back Office

Customer orders product on web site, all transactions are entered in the ERP system automatically without additional data entry. Customers can check availability, order status, etc.

Enterprise Performance Management: business analysis tool eCommunities – link people, content and commerce. Supports key business processes: Online procurement, benefits, travel and expense, etc.

Operating Resource Management eProcurement – Provides single interface for all types of materials, repairs, operations purchases

Delivers a complete catalog of available items from approved suppliers to each desktop Allows for global collective buying

Customer Relationship Management Purchased CRM technology from Vantine Corp. to integrate within other PS programs

Portals and Trading Communities: Enterprise Portal – similar to mySAP.com eMarketplace - allows organizations to sell products to businesses and consumers

Integrated with eBackbone and enterprise performance management system Provides sales, customer self-service, product marketing, order fulfillment, business analysis tools

**Neither appear to be currently available


SAP

Headquarters: Walldorf, GermanyTraded on NASDAQ as “SAP”

1998 revenues: $4.4 billion 1998 earnings: $547 million

Core ERP Systems: Browser based ERP: SAP R/3 4.6

Internet Strategy: Third parties for Application Hosting (EDS ...) personalization

allow users to launch applications and business processes without leaving their browser environment role based (150 delivered standard roles)

mySAP.com portal: mySAP.com Marketplace “one-step business” anytime, anywhere, with anyone collaborative components such as a business directory, document exchange, and RFP and RFQ matching; content and

community components such as horizontal and vertical business communities Marketplace is open to anyone, SAP customer or not

Supply Chain Management: designed to enable exchange of required planning information with business partners

Operating Resource Management (ex: office supplies): SAP Business-to-Business Procurement facilitates all the processes associated with the procurement of maintenance, repair and operating supplies (MRO)

goods and services Customer Relationship Management:

five customer relationship management (CRM) applications are due in mid-December includes software for automating field sales and service operations, plus a call center management system and packages for selling products online and

letting customers check the status of orders via the Web

XML support for B2B


Overview

Online Portal X ? X ?Trading Community X X X XSupply Chain Mgt. X X X X XProcurement X X X X XWeb-hosting X X ?XML support for cross-platform B2B X X X XOnline Customer Relationship Management X X X ? X


mySAP.com overview

Collaborative• Community (20

industry + 3 vertical forums, chat rooms)

• Content (External Services e.g. news, stocks)

• Commerce (Business directory ...)

• Collaboration (One-step Business)

• Appl. Hosting

Solutions on Demand• Industry Focus• Integrated end-to-end

business processes (Supply Chain)

• Knowledge Management• Customer Service

Management

Personalized• Personalized

(EnjoySAP design)

• Role definition• Single point of

access to all internal and external services

• Mini Applications

• Drag & Relate


Marketplace: One Stop Business Allows companies linked to each other in a supply chain to pass on the requirements of their incoming orders to their suppliers without the

presence of another organization. In a network of appropriately equipped vendors the ERP together with SCM could select the partners themselves using agent technologies. (still requires bilateral agreements between trading companies)

• Buy and sell products and services directly on the mySAP.com Marketplace. Auction off surplus materials

• Collaborate with suppliers on planning, forecasting, and meeting customer demand needs(Collaborative forecasting).

• Broadcast or bid on requestsfor proposals (RFPs).


mySAP.com Business Scenarios

SAP Employee Self Service (4Q95)SAP Business Information Warehouse 2.0 on the

Web (4Q99)Business-to-Consumer Selling (4Q96)SAP Knowledge Management (3Q99, InfoDB3

available)Business-to-Business Procurement (1Q99) and

Selling (4Q99)Additional EnjoySAP and web-based applications

with Release 4.6C


Application Hosting along the lifecycle

Evaluation Implementation Continuous Improvement

Test Drive YourSolution Online

Compose YourSolution Online

We Implement YourSolution Online

We Host Your Solution Online

We Build YourBusiness Community/Marketplace Online

• FinancialApplicationServices• HR Application Services

• Industry Focused Marketplaces•Enterprise-specific Marketplaces

SAP Partners SAP & Partners


Application Hosting Types

Application Service Provider (ASP) The client delegates all or a major portion of an operation or function

to a vendor (Apps Hosting Provider) in a long term relationship (>1 year). Apps hosting partner owns hardware and processing. Per user/per month charge to client.

Application Management Outsourcing (AMO) Like ASP but Customer owns hardware and processing. Per user/per

month charge to client.

Business Process Outsourcing (BPO) The client delegates all or a major portion of an entire business

function to a vendor (Apps Hosting Provider) in a long term relationship (>1 year) (e.g. handling procurement of all non production goods). Apps Hosting Provider has license.


Application Hosting: Benefits

Easy ERP. Outsourcing makes ERP simpler. The alliance is a new approach that allows companies to obtain the advantages of ERP without the risk, concern, or complexity they associate with ERP.

Frees IT. Outsourcing allows CIOs to achieve their goals for ERP. They don't have to get involved in ERP implementation and can focus their time and staff on other strategic initiatives.

Cost-effective. Outsourcing alliance partners know our industry and are flexible and concerned about cost issues. Outsourcing allows mid-size companies to:

Obtain a world class ERP package they thought they could not afford Reduce initial capital investment while obtaining the latest technology Reduce personnel costs, hiring, training, retention, etc. Don't need personnel for DB administration, OS administration, Basis admins,

SYSOPS, etc. (cost reducers) Provide predictable TCO for ERP applications Provide known ongoing production costs


References mySAP.com

Lockheed Martin Missiles and Fire Control, USA "We believe that we can easily achieve significant cost and cycle-time

reduction whenever we are able to build a network with the customer,the suppliers, and ourselves in a real-time collaborative environment.SAP B2B has allowed us to create the best procurement model for the future of our company and our corporation and is a critical tool toward building that real-time partnership environment with our customers." Bob Proffitt, Manager of Sourcing and Business Development, Lockheed Martin Missiles and Fire Control, USA

FC Bayern Munich e.V., Germany "Thanks to the mySAP.com solution and taking up e-commerce, our

merchandising activities have become more efficient and customer-friendly. Our fans receive their merchandise even quicker, and our customer service has improved noticeably. We´ve put our merchandising on a Champions League level. If we're going to adopt e-business, then we're going to do it right." Uli Hoeneß, Manager, FC Bayern Munich e.V., Germany.

Check out the full story at http://www.sap.com/mysap/


mySAP.com for Universities

Besides e-mail, shopping, and information (traditional use of the Internet)

What Do Web Users Want In The Way Of New Internet Services?

The number two service AOL subscribers indicate they want in future (69% so indicating) "Taking Online Courses” at colleges/universities.

AOL Survey reported in 12/8/99 BUSINESS INVESTORS DAILY

p. A12).


Implementation Partner

Focus: Public Sector Higher Education, Supply Chain Management (Retail, AFS, CPG) Human Resources

Contact: Two Concourse Pkwy., Suite 275 Atlanta, GA 30328, U.S.A. Bernd Heesen Phone: (770) 350-1860 Ext. 3351 www.prescientconsulting.com e-mail: [email protected]

Prescient Consulting, L.L.C.

ERP & E-Commerce, Charlotte NC, December 11+12, 1999 sumit/wits99/index.htm Bernd Heesen Workshop on...

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