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Ho Nai Choon President IDS-Gintic Pte Ltd Email: ncho@gintic.sg

E-Business and the Networked Economy. Ho Nai Choon President IDS-Gintic Pte Ltd Email: ncho@gintic.gov.sg. Agenda. Introduction to E-Business Organizational Trends New concept of ECM: Enterprise Commerce Management The needs for standardisation Examples of successful implementation.

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Ho Nai Choon President IDS-Gintic Pte Ltd Email: ncho@gintic.sg

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  1. E-Business and the Networked Economy Ho Nai Choon President IDS-Gintic Pte Ltd Email: ncho@gintic.gov.sg

  2. Agenda • Introduction to E-Business • Organizational Trends • New concept of ECM: Enterprise Commerce Management • The needs for standardisation • Examples of successful implementation

  3. Introduction to eBusiness

  4. E-Business ? Conducting Core Business Processes on Internet

  5. The new network economy will be driven by 3 forces -- Connectivity, Speed and the Growth of Intangible Values.“ Blur : the speed of change in the connected economy “by Stan Davis and Christopher Meyer

  6. Organizational Trends

  7. Two Major Trends in Organizations • Networked Organization • Learning Organization

  8. Networked Organization

  9. Learning Organization ( Virtual Corporate University)

  10. The new concept of ECM : Enterprise Commerce Management

  11. ECM is the blueprint for the next generation of corporate systems: ECM provides the model for the next generation of business systems, comprising process-oriented applications and services tied together by the Internet to support intercompany commerce. -AMR Research

  12. By 2005, AMR Research believes that ERP, as we know it today, • will be completely transformed. This trend is already underway: • Supply Chain Planning (SCP) applications are replacing the Enterprise Resource Planning (ERP) function. • E-procurement and strategic sourcing applications are gnawing away at the purchasing functions. • CRM has obliterated ERP’s rudimentary customer service functionality. • Web-based order management applications are moving from simple self-service capability to full-fledged order fulfillment systems, replacing ERP order entry.

  13. Content of an ECM model • The different business partners and their business processes • Exchange of products and services between the business partners • Information flow between the business partners • Financial flows between the business partners • e-business applications to support the interenterprise business processes (e-Business Processes) • Roles to define the process responsibilities

  14. Implementation of e-Business Solutions ECM -Buisness Models ECM-Business Processes ECM-Business Applications E-Business Tools

  15. The needs for standardization

  16. RosettanetRosettaNet is a consortium of major Information Technology, Electronic Components and Semiconductor Manufacturing companies working to create and implement industry-wide, open e-business process standards. These standards form a common e-business language, aligning processes between supply chain partners on a global basis.

  17. Rosettanet Standards PIPs RosettaNet Partner Interface Processes™ (PIPs™) define business processes between trading partners. Dictionaries RosettaNet dictionaries provide a common set of properties for PIPs™. The RosettaNet Business Dictionary designates the properties used in basic business activities. RosettaNet Technical Dictionaries provide properties for defining products. RosettaNet Implementation Framework The RosettaNet Implementation Framework (RNIF) provides exchange protocols for quick and efficient implementation of PIPs™.

  18. Two Myths… One Reality • Myth One • RosettaNet (and standards in general) are on the fast path to general acceptance. • Myth Two • Moving quickly to adopt RosettaNet provides you with a competitive edge in the marketplace. • Reality • Quickly and intelligently adopting RosettaNet and other strategic standards will increase your success in the networked economy.

  19. So why RosettaNet? • Standards are critical to conducting e-business worldwide. • XML standards enable you to conduct business in real-time. • RosettaNet is emerging as a leading XML standard for B2B. • Early adoption enables you to blaze the trail. • Leveraged properly RosettaNet can help you gain true competitive advantage.

  20. If Everyone Adopts a Standard • Fulfill the promise of one to many and enables you to conduct e-business with multiple partners. • Real-time transactions via XML instead of batched EDI. • Standard messages on interoperable platform enables worldwide e-business. Security Back-end Integration Application to Application

  21. B2B Process Integration Benefits Typical Benefits Realized by Integrating the Supply Chain Delivery Performance 16-28% Product Cost Reduction 15% Channel Returns & Scrap Reduction 40% Inventory Reduction 25-60% Fulfillment Cycle Time Reduction 30-50% Lowered Supply Chain Costs 25-50% Overall Productivity 10-16% Source: PRTM/Supply Chain Management benchmarking study

  22. Fast ROI through B2B Process Integration • Leading Network Infrastructure company achieves ROI for various supply chain business processes in six months (average). • Fastest ROI: Two weeks • Longest ROI: Two years • Major Networking Company shows $14 to $28 million per year cost savings by integrating New Product Introduction business processes.

  23. Steps to Competitive Advantage • Get in the game • Adopt RosettaNet and other emerging standards early • Affect the rules of the game • Leverage your understanding of the standards and your business processes • Win the game • Align business processes to integrate your supply chain

  24. Example of successful implementation

  25. Common Vision at Intel • Be the Leader in Supply Network Management • Operate the right multiple supply networks driven by business needs • Execute each network as a single, virtual enterprise enabled by the Internet

  26. … and Supply Network Goals • Drive Cycle Time Reduction in all our businesses across the Supply Networks • Design & Implement Agile/Flexible Supply Networks

  27. To support the SCOR Model/Methodology • Provides structure and common language including definition of process steps and metrics to model supply chain • Reference Model provides a framework to configure supply chain • Consistency of definition allows for effective evaluation • With appropriate Tool, Time invested can yield value added results • To explore integration with other planning and business process modeling activities

  28. ARIS EasySCOR utilized for SCOR Modeling Plan Source Make Deliver Deliver D1 Deliver Stocked Products D2 Deliver Make-to-Order Products D3 Deliver Engineer-to-Order Products D0 Deliver Infrastructure Level One in EasySCOR Modeler Level Two in EasySCOR Modeler Level Three in EasySCOR Modeler D1.7 D1.6 D1.5 D1.4 D1.3 D1.2 D1.1 D1.8 D1.9 D1.10 D1.11 D1.13 D1.12

  29. SCOR Metrics Assessed at Level I & II PF = Production Flexibility, TLC = Total Logistics Cost, CCT = Cash-to-Cash Cycle Time, DP = Delivery Performance; AT = Asset Turns; xx = no tie; xx = tie

  30. SCOR applied to B2B e-Commerce • Leverage SCOR to develop around e-business scenario modeling • Start with supply chain models • Refine the model representation of B2B scenarios • Drill down to the interchange process specification level • Perform SCOR-based simulation • Explore mapping of SCOR to the Rosettanet • Work with both the Supply Chain Council and RosettaNet • Siemens is committed in a joint effort • Currently developing a Value Proposition statement and pilot plan • Internal review process will precede SCC/Rosettanet proposal

  31. OEM Importer Dealer Vehicle Specification/ Search Requestvia Internet Seller Subcontractor Vehicle Locating and Allocation ReservationPlanning OrderManagerment Order Processing Sales Order Shipping Production Order Tracking Export/ Transport Shipment Tracking Transport Control Goods ReceiptProcessing Drill into Interchange Specification IDS Scheer E-Business Scenarios will be used to visualize the flow of communication between business participants

  32. Perform SCOR-based Simulation Run simulation Define products Define resources Use eSCOR for tpt/cost analysis Transfer ARIS Model into Gensym eSCOR

  33. Potential Big Wins for SCOR • Facilitate mapping of Level II & III metrics to Level I indicators • Provide a “how-to” guidelines for applying SCOR beyond configuration analysis • Drag and Drop SCOR modeling • Cost/Time analysis through simulation • SCOR-based B2B modeling • Visualize SCOR metrics through integrated performance monitoring

  34. Conclusion:New Economy, New Processes, New Standards

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