Table of content

1. e-volution – Road map for e-business implementation in Extended EnterprisesDeliverable 6.1/2 Annex: Summary of IRG test case activities

2. Table of content German IRG test case AUTEV German IRG test case Greschalux Italian IRG test case Imbal Centre Greek IRG test case Planatech

3. www.autev.de

4. AUTEV test case Initial situation • legal organisation • Shareholders are 9 regional, independent, sometimes competing Small and Medium Sized Enterprises (SMEs) • service engineering organisation of innovative SMEs, serves global markets • Competitors are big global players, but competitive advantage of higher flexibility because of its organisation structure to integrate on demand the needed competences • value chain design and partner integration depends from the product/service specification (Virtual Enterprise) • e-business as basis for more efficient business

5. EE constellation characteristics EE constellation driver • Two driving partners • Separate legal entity (AUTEV AG) as market and customer interface • shareholders from the AUTEV partner pool EE constellation members • Independent, regional SMEs from different branches with specific competences AS-IS situation • Established legal framework • Common marketing, sales and service activities under the AUTEV label • Plans: realisation of more efficient procurement, operation and infrastructure processes

6. The AUTEV AS-IS EE constellation and business AUTEV partner SME 1 AUTEV partner SME 2 AUTEV partner SME n …

7. High-level business objectives Business mission AUTEV AG offers to its customers the power and all-inclusive services of bigger enterprise and but keeps the flexibility of small business units. The AUTEV competence centre master implementation of customer-specific solutions, using innovative and powerful products. Partners auf AUTEV AG are regional, innovative, independent Small and Medium Sized Enterprises (SMEs).

8. Business strategies Strategic business areas Core competences of the AUTEV AG are: • System engineering for buildings; • Information and communication technologies; • Industrial technologies; • Environment technologies. Business guidelines AUTEV AG attends its customers during the whole project life time; from products/service identification, to implementation and service and maintenance management. Process oriented quality standard DIN EN ISO 9001:2000 is basis for the project work. The competitive advantages of AUTEV are customer-orientation, flexibility, and innovative solution.

9. AUTEV test case e-business status • Very different partner e-business statuses • In-house e-business competences e-business plans • (A) Supporting business processes • A.1: collaborative project management, monitoring and controlling regarding internal flow of goods, financial flow (procurement, budget, cost charging, and revenues) and time • A.2: reengineering of internal financial process by use of common accounting system for more efficient, cross-company financial process • (B) Value chain processes • B.1: implementation of an AUTEV wide CRM system • B.2: strengthening of the commerce process: marketing/sales strategy refinement, strategy-based value chain optimisation (from distributor to final customer) and use of ICT in marketing/sales and service

10. e-volution application area: e-commerce of complex ICT solutions marketing/ sales procurement engineering service Value chain Private and public organisations COMPLUS SERVICE Extended Enterprise E–Business System server Central DB-Server AUTEV AG Location: TGZ ICT infrastructure (AUTEV e-business portal) Customers SQL-Server Skyrix-Server AUTEV AG Location: TGZ E–Business System client AUTEV partners E–Business System client AUTEV partners Location: Kirchmöser E–Business System client Internet SQL-Server Supplier E–Business System client E–Business System client AUTEV partner Location: Rathenow SQL-Server

11. AUTEV test case Expectations • Methodological support for the planned commerce process re-engineering • Support for the development and assessment of marketing/sales and service strategies • Decision support for regional implementations, adaptations or extensions E-volution activities • Training to the e-volution methodology and toolkit to interested managers of AUTEV partners • Enabling access to the e-volution toolkit software to support representative operation, even at the single company level • Assessment of the e-volution methodology and toolkit, based on provided assessment procedure • Provision of help in the drafting of a public report to be used for dissemination and promotion of the German IRG test case activities after completion of the test case

12. Phases and status of inter-enterprise collaboration in AUTEV EE Communication establishment Stabilisation of collaboration Business partner integration • Definition of enterprise role in the network • Project coordinator, customer coordinator, network coordinator, development partner, production partner, service partner, quality manager, infrastructure manager • Definition, i.e. personalisation of responsibilities and assignment of resources • Agreement on communication procedures • Stabilisation of collaboration and definition of coordination mechanisms • Benefits, IPR handling, penalties, costs/profit assignment • Definition of inter-enterprise processes and workflows • Extension of enterprise boarders • Information sharing and ICT-integration and sharing • Business process and workflow integration • Cultural and social integration

13. Module 1: Definition of strategic EE business objectives Extended Enterprise status: • AUTEV is a legal but virtual entity made of SMEs (shareholders) from the engineering, automation, handicraft and human resource service sectors • System of business objectives is already defined on the individual and extended enterprise levels • No need for AUTEV enterprises to run this module • AUTEV managers confirm the need for clear and consistent system of business objectives as basis for collaborative, integrated and strategic business activities in the EE

14. Module 2: Organisation Analysis Extended Enterprise status: • Individual and common EE benefits are clear and agreed • Individual e-business abilities are clear, common ICT infrastructure designed for collaborative business • Systematic strategic early warning system analysis on agenda only for mid of 2005, method and know-how transfer now • Strengths and weaknesses are clear • Methodology, methods and tool presentation and selected use within the scope of running activities • Core competence analysis for selected development of competences done

15. Module 3: Market analysis Extended Enterprise status: • Internally running market analysis regarding requirements and potentials for innovative product and service solutions • Interest in methodological and tool support structured market analysis: market segmentation, attractiveness assessment, strategic target market search • Identification of strengths and weaknesses • Methodology, methods and tool presentation and selected use within the scope of running activities

16. Module 4: Strategy formulation Extended Enterprise status: • EE model is defined and reconfigured based on order specifications • Ideas for extension of enterprise boarders, information sharing, ICT-integration and sharing but no strategies yet • Need to distinguish between first movers and followers, advanced, standard and poor users • Methodology, methods and tool presentation and individual use within the scope of decision preparation about future collaborative e-business inside AUTEV

17. Realised activities within the scope of project IRG • Presentation and transfer of the e-volution methodology (Modules 1-4) and software tool-kit to interested managers of AUTEV partners (based on the training material with reference to the AUTEV partners’ situation and needs) • access to the e-volution toolkit software to support real business operations • Support by the consortium in the testing phase through the provision of skilled personnel to the test case, on site in the premises of the test case • Assessment of the e-volution methodology and tool-kit by based on provided assessment procedure

18. Achieved results & feedback Results for the test case • Methodology and selected method transfer • Know-how transfer to support current running e-commerce project • Selected use of methods and tools within the scope of running activities • Core competence analysis (Module 2) • Markets segmentation and assessment (Module 3) • Commitment for common next steps based on methodological approach - AUTEV and IAF keep in contact (common project) Feedback • Industrial requirements and e-volution concept are confirmed, software support is always welcome • Special interest in methodological and tool support structured market analysis • Methods and tools are usable for target group SME • Acceptance of the software tools is different, ASP-approach is OK • Integration strategy for ERP-systems is needed, especially for (MarketAnalyser) • Further EE problems also on cultural and management level

19. IRG test case Greschalux e-business status • on demand e-commerce (B2C) • e-work flow management (B2B) e-business plans • e-commerce, i.e. e-shop with product catalogue and product configurator in 2005/2006 and ex-tended e-marketing; • e-SCM • IT-supported offer management in the network; • e-procurement over the Internet and Supplier Relationship Management (SRM); • Offer management as extension of the INDIA work flow system for automated product compilation, product cost calculation and e-procurement; • Extension of the existing Management Information System (MIS) • e-Customer Relationship Management

20. Legend Partners Greschalux The Greschalux EE value chain process model EE value chain process model (AS-IS) Customer order Marketing & Sales Production Assembly planning Assembly at customer location Invoicing Service and maintenance acquisition Maintenance Assembly planning Serv./maint. order Invoicing EE value chain process model (TO-BE) Production Assembly planning Assembly at customer location Invoicing Maintenance Service and maintenance order acquisition Marketing & Sales Customer order Assembly planning Serv./maint. order Invoicing

21. Greschalux Activities I/III • Methodological support for the just started internal e-commerce (marketing & sales) LAURA project • methodological support of the reengineering of the process • first project management activities documented and processed in the newly designed project management tool • first experiences in using network supporting project management tool at Greschalux and two of their biggest partners • enlargement of the tool to meet the requirements of project management in EE environment much better • improvement of the transparency of the entire project and single activities and their status • Support for the development and assessment of marketing & sales business strategies • work with the organisation analyser (module) starting till December 2004 with • analysing the processes marketing and sales • involvement of all involved and relevant process participants (Greschalux (marketing and sales department), partners (CEOs), some customers) • gathering of information following the organisation analyser methodology • combination, compression and discussion of final results in physical meetings • Meetings: 10.11.04; 24.11.04; 08.12.04 • common definition of a redefined ecommerce based marketing and sales strategy Supervised by partner M-BIS

22. Greschalux Activities II/III • Decision support on what modules need to be realized with priority • use of the organisation analyser support this decision making process • involvement of employees of Greschalux and relevant employees of the five biggest subcontractors • physical meetings: 15.12.2004; 15.01.2005 • decision made which modules have to be realised which what priority • Decision support for regional implementations, adaptations or extensions • refer to point 3 • Technological decision support (part of the ERP system/ special application) • use of the organisation analyser support this decision making process • involvement of employees of Greschalux and relevant employees of the five biggest subcontractors as well as two IT-Manager of the Holding CRH (Netherlands) • decision was made in the physical meetings on 08.02.2005; 15.02.2005 Supervised by partner M-BIS

23. Greschalux Activities III/III • 6. Testing and evaluation of prototype solutions • lab tests at real system application simulation a M-BIS and interview functionality of the organisation analyser is used to evaluate the prototypes • tests are going on • 7. Organisational changes and newly defined processes related to the strategy implementation • process redesign did start after the definition of the new strategy and its realisation • process was supported by the use of the project management tool • Feedback from Greschalux and their partners • feedback was positive because all relevant persons could be implemented in the decision making process but with reduced time consumption by travelling and doing meetings • the used methodological support was given from the beginning to the end, from the strategy definition til the operational realisation of single implementation processes • the acceptance and usability of the organisation analyser was good for all involved user except the administrator • the administration was done from one programmer of M-BIS and one manager of Greschalux with the aim to teach and integrate project management abilities in the newly defined eCommerce based structure of the EE • the usability for the administrator was too complex which caused • too long learning phase • time losses by using the system • sometimes misunderstandings Supervised by partner M-BIS

24. IMBAL CENTER is a family owned company, located in the South of Italy and involved in the production and management of wood packaging. It offers to its customers innovative value added services such as: the management of the empty packages, the withdrawal and recovery of the already used packaging, the design of customised pallets according to the customer’s specific needs for the revision and reengineering of logistic processes. According to this approach the main strategy that Imbal Center is trying to pursue is to differentiate its offer towards the final customer: in fact products are not very complex and therefore margins not very high, moreover competitors pressures always stimulate the management to increase the internal efficiency in order to stay in the market. IRG test case – Imbal Center (Italy) IRG test case business scenario

25. FBR which is mainly involved in the production of wood straight bobbin for telecommunications cable. This line of product, together with specific semi finished products, are responsible for the 70-80% of the turnover, whereas the remaining 30% derives from the selling of wood product. The straight bobbin market is characterised by a low number of competitors and a cyclic trend, this is the reason by which the company is very interested to leverage on semi finished products (all the items for straight bobbin assembling) in order to have a higher number of potential customer. This company has a stable relationship with Imbal Center, offering specific services for the procurement of raw materials mainly from European countries (Germany and Austria) and selling some wooden parts. CED Romano mainly involved in the administrative and financial services, is a long term partner of Imbal Center. LGM recently joined, it offers commercial services and specific support in the suppliers selection and rating. IRG test case – Imbal Center (Italy) IMBC EE main players

26. IRG test case – Imbal Center (Italy) • Imbal Center shares information on production schedule and available inventory with FBR, integrating the e-procurement process. • Supplies procurement lead time ranges from three to six months, so the integration of this process enable Imbal Center to reach relevant benefit. • FBR, thanks to the long term experience in this industry, has a wide knowledge of the sourcing market which implies a significant efficiency during the purchasing process. • High quality intra extended enterprise processes are enabled by the certification ISO 9000 reached by all the member.

27. Most of the IMBAL CENTER customers, are big player of the infrastructure and Telco industries, so one of the problems that the company faces is the high flexibility requested and the following punctuality of the deliveries. This issue is now faced by defining carefully the size of the available inventories and at the same time trying to ask the customers for a plan of their needs. It is in the intension of the management to start a closer collaboration with some first level customers in order to share information on production plan. In particular Imbal Center is now setting up a project with one of the main customer for remote inventory management: it is trying to become the sole supplier of wood packaging and therefore manage for this customer the inventory of all the items of delivered products. This could allow Imbal Center to considerably increase its own turnover (because this potential agreement means higher quantity of sold products) offering added value services, the remote inventory control, enabled by a direct electronic connection with this customer. Within the EE, even if the ICT equipment is not the state of the art, information on administrative and financials issues are shared by using a simply but effective mini ERP, which has been now enriched by adding several modules dealing with operations/production. The locations (all these SMEs are in the same industrial district) of these SMEs allows frequent face to face meeting useful to increase the internal collaboration. IRG test case – Imbal Center (Italy) Problems and benefit

28. Synergy on the supplier’s side (FBR purchasing process allows high savings) customers delivery of final products are shared) gives high benefit, whereas on the customer’s side, even if specific value added services are available, there is not a structured approach within the EE. In fact the two companies which are involved in the operative processes are now defining a unique selling proposition in order to have a wider and completed products portfolio, being the product they offer to the market complementary and made by the same raw materials. In order to offer the customer value added services on the web the two companies are intentioned to modify their own web sites, with the creation of a single enterprise portal allowing automated orders entry and catalogue browsing by the customers. These projects (Imbal Center is intentioned to implement) represent an opportunity but at the same time a threat: an opportunity because the management see the importance of the e-business solutions in order to support the differentiation strategy they are carrying on; a threat because of the high amount of funds requested by these projects. They are therefore interested to take part in the e-volution project in order to receive a deep knowledge of e-business strategy methodology which can contribute to validate or not the management ideas about the e-solutions they are interested to implement. In fact the identified projects (the potential e-solution that aim to support the business) are not the outcomes of a structured approach but of an imitative strategy that not always become the winning strategy. The possibility to test a web based tool supporting strategic decision within the EE, represents another important reason that convinced Imbal Center to join, few months ago, the IRG groups and now to participate in e-volution project as test case in order to apply the principles of a collaborative e-business strategy. IRG test case – Imbal Center (Italy) Strategy and goals for the future

29. Visit by UNISA at IMBC premises in order to identify production process specificity and internal organisation Workshop finalised to identify: IMBC markets and products IMBC EE structures: identification of partners (FBR, CED ROMANO and LGM) and internal relationships Workshop finalised to explain MM functionalities and subsequent data collection to feed e-Vo Market Module IRG test case – Imbal Center (Italy) Activities performed

30. Defining Products and Market areas IRG test case – Imbal Center (Italy) • Data about PM areas are inserted in the MM software; • The manager Romano, among the PM areas available, chooses: • Consumer - wood pallet • Food – wood pallet • The selected check box identify the PM areas chosen: the ones on which the PM assessment analysis will be carried on.

31. PM Matrix data IRG test case – Imbal Center (Italy) • Financial data about the two chosen PM areas are displayed in matrix for a synthetic view; • Turnover • Contribution Margin • Contribution Ratio Figures above are from, Year 2003 Financial figures for the Consumer Market as a whole;

32. EE position visualisation IRG test case – Imbal Center (Italy) • The Questionnaires’ answers provides by the manager Romano allows to identify a specific position on the matrix aside: • Wood Pallet-Food, the violet bubble; • Wood Pallet-consumer, the red bubble; • The table in the bottom provides details for each PM areas: the competitive assessment represents the bubble’s abscissa, whereas the attractiveness identify the vertical position of the bubble.

33. Sensitivity analysis matrix IRG test case – Imbal Center (Italy) • The feedbacks received by Imbal Center led UNISA to implement the Sensitivity Analysis: questions related with the Wood Pallet - Consumer PM area were modified in order to analyse the impact on the bubble position inside the matrix; • The starting point of the PM area is in the “stay on the current position” areawhereas the arriving point is in the “invest in order to increase the market share” area;

34. Intermediate OT Analysis data insert IRG test case – Imbal Center (Italy) • At the end of the PM assessment analysis the manager can insert intermediate opportunities and threats for the PM areas under consideration: • Products sold are not complex, therefore it is easy to enter the business (low enter barriers); • Low margins on products: seen from customers as a commodity;

35. EE Data viewing IRG test case – Imbal Center (Italy) The Purchasing criteria analysis is carried out for the PM areas chosen: in this case Wood Pallet – Consumer PM area is shown.

36. Competitors data view IRG test case – Imbal Center (Italy) For the competitor basas (this name is not real due to privacy reasons) the same Purchasing criterias were analysed and assessed and then compared with the ones of Imbal Center.

37. Comparison IRG test case – Imbal Center (Italy) • The comparison was made by selecting IMBC values together with competitors best in class values: • The histogram on the right show the same assessment for “Prices compared to quality” criteria, whereas competitor “Delivery precision” is better than IMBC. • No data has been collected for competitor “product selection and additional services criteria”.

38. OT Analysis final data view IRG test case – Imbal Center (Italy) The intermediate OT analysis of each functionality are at the end of the analysis grouped in order to make them available for the manager in a synthetic view. It is possible to download the OT list in a csv format for specific needs or analysis.

39. Results Opportunity and Threats identification: To offer added value services for IMBC main customers in order to increase margins (i.e.: Stock management and pallet recycle) Final sold products not very complex, low barriers for new entrants Feedback Offered suggestions regarding usability/friendliness: GUI improvement Needs for a quick revision and simulation of the questionnaire answers: sensitivity analysis Efficient retrieval of market information: information selector and integration with the CSP Italian IRG test case IMBAL CENTER (IMBC) Achieved results & feedback

40. Planatech S.A. Rigid inflatable boat (RIB) manufacturer. Specialized in high quality/price product range. SME (19 employees). Driver of a vertical Extended Enterprise, together with 3 suppliers (Tyligadas Bros SA, Costas Hronis, NEOTEX SA) and a subcontractor (Navimarine S.A.). e-Business scenario: Development of e-Business infrastructure for the on-line notification of suppliers for needed raw materials, for delivery scheduling and for the on-line update of price and part lists. Greek IRG test case Planatech IRG test case business scenario

41. Training of Planatech’s technical manager (Mr. Protopsaltis) to the e-volution methodology and toolkit. Configuration of Strategy Builder software with the EE parameters and provision to the EE members as an ASP service. Usage of the e-volution SB software to support real business operations. On-site and phone support to interested EE members for the application and usage of e-Volution methodology and software. Assessment of the e-volution methodology and software tools. Greek IRG test case Planatech Activities performed

42. Results Configuration of the SB software tool with the Planatech’s EE parameters. Provision of the SB and of the Content Service Provider to Planatech’s EE managers for usage as an ASP service. Testing and evaluation of the e-Volution tools. Feedback The feedback from the Planatech’s test case helped the consortium to the improvement of the Strategy Builder from the stand-alone to the web version. The web interface of the SB was further improved to permit intuitive usage. Further needs for training in the implementation of the methodology. Request for localized (e.g. Greek) training material Greek IRG test case Planatech Achieved results & feedback