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Electronic CommerceSavior or Pipe Dream?
Kevin J. Williams, C.P.M., A.P.P.
Purchasing SpecialistESPN, Inc.
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The Challenge of Change
"There is a certain relief inchange, even though it be from
bad to worse; as I have found intraveling in a stage-coach, that it
is often a comfort to shift one'sposition and be bruised in a new
place." - Washington Irving
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Quick FactsLaunched September 8, 1979
6 Domestic Networks including ESPN, ESPN2,ESPNEWS, ESPN Classic, ESPN Extra and ESPNOW
Other ESPN businesses include ESPN.com, ESPNRadio, Sportsticker, ERT, ESPN the Magazine andESPN Enterprises which includes ESPN Zone
Restaurants, Interactive Software, Home Video, CDSand Pay Subscriptions
Headquartered in Bristol, CT and employs 2,4OOFTES
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Disney Efforts Directly from Michael Eisners presentation at the
2/2000 Shareholders Meeting in Chicago:Another effort underway to optimize ourcompany's performance is our Strategic Sourcing
initiative, a top-to-bottom review of ourpurchasing practices. Within five years, we expectto be saving more than $300 million annually from
Strategic Sourcing. Since we'd all rather I talkabout movies, let's put this in terms of movies:$300 million is the equivalent of earning the
combined ultimate profits of "The Rock," "Ransom"and "The Waterboy" each and every year.
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Keys to Success
Organization
Skills
Process
Tech.
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The Procurement Cycle
Engineering Design
Specifications
Negotiation
Supplier
Selection
Order Placement
Delivery
Quality
Customer Involvement
Purchasing Involvement
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The Old Purchasing ProcessDemand Signal
Purchasing
Existing Contract?
Dollar value requires bids?
Obtain bids/evaluate
Select suppliers
Place Order
Goods delivered
P.O. closed
Release on ContractYes
No
Source: Purchasing/Michael and Mary Lu Harding
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The Uncertainty of E-Commerce
E-Commerce + Knowledge - 1,443,307 hits
E-Commerce + Confusion - 597,982 hits E-Commerce + Problems - 3,400,456 hits
E-Commerce + @#!&%#? - 598,397 hits E-Commerce + Purchasing - 597,982 hits
Source: Infoseek (4/2000)
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What is E-Commerce Really
The buying and selling of productsand services by businesses and
consumers over theinternetTypically there are threetypes of e-commerce transactions:
business to business (i.e.Cisco),business to consumer (i.e. etailers),
and consumer to consumer (eBay).Source: ask.com
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A Different Approach
Internal Systems
Generic External Tools
Commercial External Systems
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Internal Systems
In-House
Third Party
Combination Large or Small
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Generic External Tools
E-Fax
Online Ordering (Dialup andInternet)
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Commercial External Systems
Commercially marketed e-commerce applications
Transition/Replacement forEDI
Blurring the lines
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Getting Started
Avoid Paralysis by Analysis
List your resources (brainstorm) Group by category
Easy Moderate
Challenging
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Easy Options
Little to no change
Start with the basics Look for freeware
Use your current system to its fullest
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Moderate Options
Relatively short implementation (6-12months)
Resources decide potential success Software
Hardware Internet solutions
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Challenging Options
Achievable, but longer time frame
(12+ months) Use the time effectively
Separate marketing hype from realrequirements
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Get Involved!!!
Purchasing is not consulted enough
Talk with: Suppliers
Peers
Government Software companies
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Avoid the Pitfalls
Dont automate inefficiency
If you need a workaround, you need anew system
Re-engineering still works
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Summary
Any Questions?
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