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The Foundation of eCommerce Success:
Web Enabling Your Business Processes
February 7, 2001
Presented by Gary D. Glick
Why Web enable business processes?
• Economic and competitive factors
• Increasingly, customers are moving towards a web based marketplace for information and purchases
• Revenue growth based on eCommerce activities
• CRM, Execution, and Supply Chain systems operating on different software and hardware
Web based Business Process - PHILOSOPHY
• Companies must re-align to support e-business initiatives
• Companies must pay attention to infrastructure
• Integration with the back-office is the key to eBusiness success
• Companies must focus on a customer centric approach
• Companies must provide better support for customers and suppliers
Success
• Must align business processes with corporate vision and selected technology
How to achieve success
• Prioritize customer satisfaction
• Define strategy to meet customer satisfaction objectives
• Implement enterprise wide business activities necessary to meet strategy
• Baseline existing business processes and personnel
Achieve success (Cont.)
• Identify process and personnel gaps
• Re-establish business process and KPI’s
• Feedback
• Recycle
Health Check
• Will your eEnabled business meet your customer’s expectations?
•Delivery
•Product accuracy
Health Check
• Are your business processes putting you in a reactionary mode versus proactive mode?
•Lost opportunity costs
•Expedite costs
Health Check
• Do you have a clear understanding of the flow of information between your order administration, manufacturing, distribution, and delivery systems?
How did we get here?
• Fundamental ways that businesses sell to consumers has evolved during the last 100 years.
•Country store
•Catalog sales
•Internet
Country Store
• Limited product offering
• Consumer purchased what was on hand
• Special orders were the exception
• Direct sales to consumer - Knew what the consumer wanted
• Store Keeper intimately familiar with inventory
• Demand regional in nature
Catalog
• Expanded product line
• Multiple methods for customer to purchase
• Phone, letter, fax, store
• Customer would get product when in stock - unreliable delivery
• Product life cycle driven by publication of annual or seasonal catalogs
• Customer demand determined well in advance of catalog publication.
• Expanded marketplace - regional catalogs
Web based sales
• Mass customization
• Immediate gratification
• In stock
• reliable delivery dates
• Reduced cycle times
• Frequent updates to product offering
• Global marketplace
• Direct customer relationship
CRM Initiative
• Concerns• Time to market• In-house skills• Back office integration
e-Commerce
$50M investment
$250M Return
ERP Integration
DivisionDivision
Division
Department
Department
DepartmentCost Center
Even the best ERP implementations have complex interrelationships
Business Processes
Data Flows
Performance IndicesProfitability
ERP Integration
e-Commerce
DivisionDivision
Division
Department
Department
DepartmentCost Center
• The addition of e-Commerce initiatives strain these interrelationships• Disparate technologies• Complex interfaces• Need for accurate and timely information
Data flow
Data flow
ERP Integration
e-CommerceDivisionDivision
Division
Department
Department
DepartmentCost Center
ERP Integration
e-CommerceDivisionDivision
Division
Department
Department
DepartmentCost Center
Alignment
ERP Integration
e-Commerce
DivisionDivision
Division
Department
Department
DepartmentCost Center
Supply chain adds another level of complexity
ERP Integration
e-Commerce
DivisionDivision
Division
Department
Department
DepartmentCost Center
Alignment
Internet Sales Platform
Laptop or PDA
Typical SAP Internet Architectural diagram
Browser
Customer
Web S
erver
Application S
erver
Internet Sales A
pplication DynamicContent
Management
OrderManagement
PersonalizationR/3
InternetPricing &
Configuration
How to achieve alignment• Enterprise wide business process model
• Outward focused
• Business to Consumer
• Business to Business
• Internal focus
• Multidimensional
• Collaborative sharing of processes
• Marketplaces
• Suppliers
• customers
• employees
What makes a good business model?
• Enterprise-wide system definition
• Tasks - Work step recording
• Work instructions
• Accountability
• Role and organization elements
• Graphical representation
• Swim Lanes
• Decomposition
• Interactive feedback mechanism
• NetProcess
• Creation and Documentation of business processes via the web
• Repository of enterprise wide business processes
• Foundation for business process flow diagrams
• Role and Organization assignments
• Transaction based feedback mechanism
• Integration of LiveModel and LiveCapture technologies
• LiveSynchronizer
• Technical analysis of system and master data
• LiveInterface
• SAP centric data management
IntelliCorp Components
Transaction Summary Analysis - VA01
Filtering VA01
VA01 Initial Analysis
SAP Configuration Tree
Results of IMG Comparison - Materials
Results of Master Data Comparison - Material
Web Based Business Process Baseline
• Take a customer-centric and partner-centric approach
• Capture actual transactions including those from R/3
• Create a baseline business process model utilizing a central repository
• Using transaction history and baselined model
• Identify process bottlenecks
• Identify training deficiencies
• Basis for upgrade and new functions planning
• Validation of testing completeness
• In new eBusiness environment, determine which processes need to be
• Retained
• Refined
• Replaced
Web based Business Process Fundamentals
• Companies Must Align Technology with Corporate Vision
• Utilize eBusiness channels
• Retain most profitable customers
• Reduce the cost of sales
• Use relationship with customer as competitive advantage
• Implement a successful end-to-end CRM and eBusiness solution
• Reduce transformation costs
• Accelerate deployment
Maintain a Customer Perspective
• Segment customers in terms of the lifetime value of the relationship
• Review processes from the customer perspective
• Redesign processes to increase value to customers
• Remove frustration points from customer
• Consider multiple customer contact channels
• Support continuity of customer dialogue across channels
• Review the end-to-end process to ensure that back-office and front-office processes are aligned to support order fulfillment
IntelliCorp• Provides eSolutions for SAP customers
• Co-developed the SCE & SPE with SAP
• Leading IPC implementor
• SFA & eCommerce
• B2B, B2C & B2R
• Most production deployments of the IPC
• Leading provider of SAP lifecycle products:
• LiveModel: scope, plan, test, train, upgrade
• LiveInterface: best-of-breed R/3 integration
• SAP owns over 10% of IntelliCorp
IntelliCorp Solution Offerings
• S7 Solution Portfolio
• eBusiness Transformation Solution
• B2B Procurement Solution
• Internet Sales Solution
• SFA Implementation Solution
• Sales Configuration Solution
• Upgrade Solution
• Consolidation Solution
Questions and Answers
• The conference line will now be opened for audience questions…
• To discuss a specific business area or project please call or email:• (888) MODEL-R/3• [email protected]
Thank you for joining our discussion today