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Case Study: Exostar

Case Study: Exostar. By Tim Walter. What is Exostar?. Why would 5 competitors join together to form a single company?. Aerospace and Defense Exchange. Bringing together Buyers and Suppliers. Buyer Advantages of a Collaborative Effort. Reduce cost of goods purchased

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Case Study: Exostar

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  1. Case Study: Exostar By Tim Walter

  2. What is Exostar? Why would 5 competitors join together to form a single company?

  3. Aerospace and Defense Exchange Bringing together Buyers and Suppliers

  4. Buyer Advantages of a Collaborative Effort • Reduce cost of goods purchased • Reduce number of errors suppliers make in fulfillment • Reduce on hand inventory • Learn from each other’s experiences to grow their eProcurement processes

  5. Supplier Advantages • Paper based procurement mistakes removed • EDI integration is expensive • Only need a computer and access to the internet

  6. Business Model for Exostar • Buyers pay quarterly for maintenance of the system • Buyers pay for any special customizations • Suppliers pay a flat fee for first year to join • For the 2nd year on, suppliers pay based on number of transactions

  7. Competition 2003 • Air France • American Airlines • BFGoodrich • British Airways • Continental Air • Delta Airlines • Honeywell International • Iberia Air • United Airlines • UPS • United Technologies

  8. Current Competition There are no current exchanges dedicated to aerospace and defense.

  9. Collocation Exostar ServerVault ServerVault hosts both a test and production environment for Exostar.

  10. Organizational Structure Developers , Quality Assurance and Technical Operations Analyze and Design Project Managers The entire project lifecycle Customer Support

  11. eProcurement What is eProcurement? • A web-based buyer and supplier exchange for B2B, B2C, and B2G • eProcurement attempts to make supply chain management completely electronic • Elements of eProcurement: • Planning and Forecasting, Inventory Management, Purchase Orders, Shipping Notices and Invoicing…to name a few.

  12. Supply Chain Process Forecast Commit to Forecast Purchase Order Order Response Ship Notice Buyer Supplier Goods Receipt Invoice Invoice Response

  13. SupplyPass • Exostar chose CommerceOne’s SupplyPass product to customize to meet the needs of the exchange. • Advantages: • Able to quickly deploy the exchange • Already had a user appropriate, web-based UI • Proven track record of connecting buyers and suppliers • Disadvantages???

  14. How to connect a buyer’s backend system with SupplyPass? Sends EDI Buyer Web Methods Trading Network Transforms EDI to XCBL <OrderNumber> <BuyerOrderNumber>PO1 </BuyerOrderNumber> </OrderNumber> Forwards xCBL to SupplyPass

  15. SupplyPass Available 2001 Exostar released the first version of SupplyPass

  16. Rolls-Royce Commits to Use SupplyPass Exostar adds in Forecasting, Goods Receipts, and Invoice Response to SupplyPass. Rolls-Royce begins trading with 300 suppliers What is wrong with this graph?

  17. Why were the buyers not using the exchange?? The buyers wanted a faster and more user appropriate UI The buyers required a guaranteed delivery or transactions Exostar went back to work to build SupplyPass to meet the buyer’s expectations

  18. SupplyPass version 5.0 March 2003 All 5 buyers begin trading on the exchange.

  19. Profit The fourth quarter of 2003 was the first profitable month for Exostar. They were also cash positive for the same period.

  20. Exostar realized they were risking adding and new potential buyers and suppliers Trouble ahead? Performance Issues Weekly System Restarts UI Degradation

  21. e2Open To the Rescue October 2005 Proven track record with large customer base. Exostar chose e2open in October of 2005. they had a platform that could grow to meet the customers needs and it also offered new document workflows that could further enhance the eProcurement Process

  22. Data Migration Because the data stored in SupplyPass were legally binding, these needed to be migrated to the new SCP SupplyPass Supply Chain Platform (SCP) 13 Million Documents 2 Terabytes of Data 30,735 Organizations 45,219 Users

  23. 8 months of planning with partners, developers, quality assurance and training 5 waves of migration over a period of 4 months without interrupting either the new SCP or the old SupplyPass

  24. Rebuild Legacy SupplyPass System Exostar had tasked e2Open with building the Supply Chain Platform to have the same functionality and same user interface as existed in SupplyPass. Rebuilding a legacy system and trying to retro-fit the functionality into a new system is something that should not be done. Some of these decisions would be deemed as mistakes in the future as they inhibited the flexibility of SCP.

  25. Supply Chain Platform In July of 2007 the new Supply Chain Platform was released.

  26. How did the system support such growth? Apache Web Servers and IIS for load balancing the average 14,000 users at peak Oracle DB for storage and LDAP for authentication 32 and 64 bit Linux and Windows Servers

  27. Security and Privacy Digital Certificates Comprehensive privacy policy to protect users and Exostar Database Encryption of Sensitive Data

  28. Previous Decisions Retro-fit decision Limits scalability of the product Increases deployment time Increases cost of making changes Exostar is currently redesigning the SCP to make it closer to the e2Open base platform.

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