COLLABORATIVE COMMERCE

1. COLLABORATIVE COMMERCE

2. Agenda A. Introduction B. Collaboration basics C. E-Collaboration D. Conclusion

3. Introduction A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • Collaboration is a notion with an inherently positive bias, however, neither area, scale and scope of collaborative activities nor ICT support are generally specified. • The purpose of this presentation is to frame and distinguish different views and interpretations of (e-)collaboration

4. Agenda A. Introduction B. Collaboration basics C. E-Collaboration D. Conclusion

5. Collaboration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion Definition Working jointly together in order to gain competitive advantage Aims • Increased efficiency (“Economies of scale”) • Augmented service portfolio (“Economies of scope”) • Risk reduction • Cost reduction • Market expansion, access to new markets • Quality improvement (products, services) • Reduced development and reaction time (“Time-to-market”) • Accessing/developing new skills, capabilities, resources • Outsouring

6. Collaboration: Plentitude of Terms and Definitions A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • Collaborative Commerce • E-Collaboration • C-Commerce • Supply Chain Management/Supply Chain Integration • Build-to-order/Build-to-delivery concepts • Joint planning and design • ProSumer • …

7. Collaborative Commerce: Definitions A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • “Collaborative Commerce, an approach to online business that goes far beyond transactions, has become a buzzword. Collaborative Commerce has been defined as the use of an business-to-business exchange to facilitate the flow of informationrather than to process transactions”. [Bechek/Brea 2001, 36] • “Collaborative commerce will entail moving core business processes such as product development and customer acquisition onto the Web” [Bechek/Brea 2001, 37] • “Collaborative Commerce: A means of leveraging new technologies to enable a set of complex cross-enterprise business processes allowing entire value chains to share decision-making, workflow, capabilities, and information with each other.” [Deloitte Research, Survey: “Collaborative Commerce”] • “We define c-Commerce as: ‘the online business-to-business interactions between two or more parties, focused on the exchange of knowledge and the mutual interconnection of business processes in order to optimize value creation’.” [Drost et al. 2001, 16]

8. Collaborative Commerce, but how… A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • “A recent study, commissioned by ArsDigita and conducted by Bain & Company, shows that while 70% of business and technology leaders consider enhanced collaboration capabilities a critical next step for their online services, few have a clue what collaborative commerce implies practically.” [Bechek/Brea 2001, 36]

9. Relationship Management Concepts A. Introduction B. Collaboration C. E-Collaboration D. Conclusion Distributionpartner End customer Supplier Businesscustomer Pre-supplier

10. Elements of Collaboration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion Information Communica-tion Transaction Collaboration

11. Directions of Collaboration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • Vertical Collaboration (Workflow) • Supply-side collaboration • Customer-side collaboration • Supply Chain collaboration • Horizontal Collaboration (Workgroup) • Group collaboration • Network collaboration

12. Supply-side Collaboration 1. Vertical 2. Horizontal Customer Supplier Firm Customer Supplier Customer Supplier Joint planning and design • Collaborative Planning, Forecasting and Replenishment (CPFR), e.g. Retail sector • Joint design, e.g. Automotive sector

13. Customer-side Collaboration 1. Vertical 2. Horizontal Customer Supplier Firm Customer Supplier Customer Supplier ProSumer • Customization/Configuration services (Mobile Phones), e.g. Telecommunication sector • Custom Product Development (Prototyping), e.g. Semiconductor/ Chemical Industry

14. Supply Chain Collaboration 1. Vertical 2. Horizontal Customer Supplier Firm Customer Supplier Customer Supplier Supply Chain Management/Supply Chain Integration • Process integration/automation (SCOR reference model) • Process redesign (ioBPR, BNR)

15. Group Collaboration 1. Vertical 2. Horizontal Collaboration of individuals • Virtual group meetings (Video conferencing) • Analysis and decision support • Virtual product design (Wall, CAVE, Virtual environments), e.g. Automotive sector • Interaction (MUDs), e.g. Military sector

16. Network Collaboration 1. Vertical 2. Horizontal Collaboration of firms • Knowledge exchange • Developing/accessing capabilities, skills, resources

17. Agenda A. Introduction B. Collaboration basics C. E-Collaboration D. Conclusion

18. E-Collaboration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion Definition Supporting or facilitating inter-organizational collaboration through ICT. Motivation • Improve inter-organizational information and communication flow • Increase efficiency • Reduce cycle times • Reduce cost • (Decentralized) decision making • … Differentiation between IS integration and IS coupling!

19. Degrees of IS Integration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • Minimal integration • Majority of interactions involve sharing information through meetings, phone, fax, mail and email • Moderate integration • Majority of interactions involve online viewing of information in databases and electronic exchanges of information, but parties have limited ability to change each other’s databases • High integration • Majority of interactions involve automated transactions between each other’s databases and computer applications • Very high integration • Majority of interactions involve tightly integrated or shared databases and applications. Processes are significantly redesigned, redundancies eliminated, and activities shifted to the appropriate partner

20. IS Integration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion Process standardizability Degree of integration Very High integration Moderate/High integration Minimal integration Process frequency

21. Web-based Services for Business Customers A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • Minimal integration • Mainly recent situation of Siemens ICN • Moderate integration • Partly providing “static” information (e.g. electronic handbooks, software patches) and offering basic services (e.g. service call) on the Internet • Possible: “dynamic” information (e.g. customer’s business history, service/order status tracking) on the Internet • High integration • Offering information and web services on marketplaces or customers’ ERP systems (e.g. service call and service/oder tracking are available in customer’s IS), IS coupling • Very high integration • Integrating Siemens ICN’s IS with customers’ IS, IS integration

22. IS Integration A. Introduction B. Collaboration C. E-Collaboration D. Conclusion Process standardizability Degree of integration Very High integration Moderate/High integration Minimal integration Process frequency

23. Siemens ICN: Web-based Services A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • Minimal integration • Mainly recent situation of Siemens ICN • Moderate integration • Partly providing “static” information (e.g. electronic handbooks, software patches) and offering basic services (e.g. service call) on the Internet • Possible: “dynamic” information (e.g. customer’s business history, service/order status tracking) on the Internet • High integration • Offering information and web services on marketplaces or customers’ ERP systems (e.g. service call and service/oder tracking are available in customer’s IS), IS coupling • Very high integration • Integrating Siemens ICN’s IS with customers’ IS, IS integration

24. Agenda A. Introduction B. Collaboration basics C. E-Collaboration D. Conclusion

25. Conclusion A. Introduction B. Collaboration C. E-Collaboration D. Conclusion • While we have distinguished different interpretations and approaches towards e-collaboration, the combination or integration of the respective elements has not been addressed. • The linkage to CRM or SRM suggests that companies need to decide about an underlying "philosophy" or "vision" in the relations to their business partners and then decide about the specific instruments of collaboration.

26. References [Bechek/Brea 2001]Bechek, Bob; Brea, Cesar: Deciphering Collaborative Commerce, in: Journal of Business Strategy, March/April 2001, pp. 36-38. [Drost et al. 2001]Drost, Sjoerd; Legemaat, Martijn; Marks, Frank: Positioning Paper c-Commerce – Value creation in business-to-business markets: the next generation. Source: http://www.nolannorton.com/PP_c-Commerce.pdf (last visit: 2002-08-22). [Hagel/Brown 2001] Hagel III, J.; Brown, J.S.: Your Next IT Strategy, in: HBR October 2001, pp. 105-113. [Linthicum 1999] Linthicum, D. S.: Enterprise Application Integration. Reading, Mass.: Addison Wesley, 1999. [Pinkston 1999] Pinkston, J.: The Ins and Outs of Integration, in: EAI Journal August 2001, pp. 48-52.

27. Universität Münster Institut für Wirtschaftsinformatik Lehrstuhl für Wirtschaftinformatik und Interorganisationssysteme (IOS) Prof. Dr. Stefan Klein Leonardo-Campus 3 D-48149 Münster Tel.: +49 (251) 8338-110 Fax: +49 (251) 8338-119 http://www.wi-ios.de Stefan Klein eMail: stefan.klein@wi-ios.de Tel.: +49 (251) 8338-110 Marcel Gogolin eMail: marcel.gogolin@wi-ios.de Tel.: +49 (251) 8338-122 Contact information