Business-to-Business Internet Systems

1. Business-to-Business Internet Systems Thought starters June 5, 2003

2. question one How are companies leveraging eBusiness technology to manage their business?

3. Enterprises are using B2B Internet Systems to address their key business objectives • Economically-driven migration to low-cost channels has not generated large-scale, sustainable results • Seamless, integrated channel delivery is needed to optimize the cost structure • Siloed solutions are preventing cost-reducing infrastructure consolidations • A fundamental understanding of high and low value activities must drive channel migration, digitization, process elimination, and outsourcing decisions • Business, organizational and technical flexibility is needed in order to better leverage solutions and best practices across LOBs Transform the delivery cost structure • Increased customer choice afforded by new channels forces a higher minimum standard of customer experience management capability just to stay in the game • Superior customer experience management capabilities will differentiate the winners Put the customer experience first • Improvements in quality of service coupled with lower cost operations are becoming key to delivering value to customers • Investments in customer servicing and retention generate much higher returns than investments in sales and new customer acquisition Invest in customer retention Manage product and channel proliferation and complexity • Product proliferation within and across channels and customer segments produces inefficiencies and confusion • Achieving a compelling integrated channel offering for clients is an important enabler of customer retention and cost optimization objectives

4. The central issue in responding to these objectives: How to deliver a compelling, differentiated customer experience, across multiple channels, through a significantly lower cost structure? Addressing the issues presents two fundamental sets of challenges: • Cost Reduction Challenges • Incompatible and redundant infrastructure and applications • Disappointing or immeasurable ROI from IT and new business investments • Unsustained and insufficient migration to low-cost channels • Cost-neutral or increasing effects from multi-channel strategies • Complex cost allocation strategies across LOBs • Customer Loyalty & Revenue Generation Challenges • Elusive cross-selling and up-selling results • Erosion of customer satisfaction levels, despite CRM investments • Mixed results with customer segmentation approaches (e.g. profitability, demographics) • Proliferating products and services, and associated overlaps and confusion • Increased channel conflict and complexity

5. How are companies leveraging technology? Companies are eliminating costs and increasing revenue by streamlining business processes within and across lines of business using embedded, networked media. • An example of this type of streamlining is to provide common eHR services across the entire enterprise. Benefit point? BenefitPoint was developed to provide insurance brokers and consultants access to critical customer data.

6. How are companies leveraging technology? Companies are designing applications that harness the power of their entire constituent network (customers, employees, partners, etc.) to extend relationships and create competitive advantage. • Many companies are creating single views of customers that cross organizational silos and provide customers with a simple way to connect with the client Wells Fargo created a design language and infrastructure that would be flexible and expandable enough to satisfy the needs of multiple constituent groups. Wells Fargo reduced development costs while supporting a range of transaction types across multiple lines of business

7. How are companies leveraging technology? Companies are creating inter–operable infrastructures and new management practices to realize just–in–time performance support, decision making and control. • New kinds of interfaces provide executives with access to real–time information to enable capabilities such as the 'virtual close'. A global telecommunications company developed a digital dashboard to bring all their line of business information together in real time.

8. How are companies leveraging technology? Companies are leveraging their infrastructures to integrate enterprise core capabilities in new ways to generate new businesses and revenue streams. Hotwire created a new high-value business by blending traditional offline assets with legacy systemsin the airline industry.

9. question two Why and how should corporate sites be consistent?

10. Why and how should corporate sites be consistent? Many companies today approach their business through independent silos, divisions or business units. They speak to customers in their own voices and design languages. • This leads to independent development activities and duplication of efforts—not to mention confusion for customers, partners and employees.

11. An issue for many firms is how to deliver a differentiated customer experience across channels through a significantly lower cost structure Company Strategy A Customer Experience Management approach provides the tools and processes necessary to achieve extraordinary results • Deliver a differentiated and logical multi-channel customer experience • Align processes, IT applications and infrastructure around the experiences that are most valued by customers • Streamline the Customer Experience to be in line with the delivery strategy • Drive customer loyalty through superior customer servicing • Increase revenue through effective cross and up-selling • Dramatically restructure costs • Eliminate redundant or low value activities and technology platforms, and outsource non-core activities and technology • Streamline and digitize high value activities and optimize supporting technology • Achieve sustained migration to lower-cost channels

12. Why and how should corporate sites be consistent? Companies should be creating bridges between their groups • to reduce duplication of efforts and create a single brand experience MLB created a design language that is scalable and flexible enough to serve over 30 unique professional baseball clubs nationwide. The language integrates live data with a common editorial voice on a standard eBusiness platform

13. Global header Navigation Content Personalized Information Why and how should corporate sites be consistent? Companies can create a common 'experience architecture' or interaction language that bridges the boundaries between their internet, extranet and intranet experiences. • An experience architecture provides unity across diverse contexts. Once a user has learned one context, it is easier for her to learn the next. Consistent, positive interactions make it hard for users to decide to switch away from what they know. Wells Fargo created a modular structure and hierarchy that is flexible enough to support a consistent experience throughout the customer lifecycle.

14. Why and how should corporate sites be consistent? Companies can create a common 'experience architecture' or interaction language that bridges the boundaries between their internet, extranet and intranet experiences. • Over time, these common architectures also reduce development costs—the elements can be easily recombined in new forms as the need arises. Enterprises need to implement comprehensive guidelines that document the design language elements (objects, colors, sound, words, shapes, behaviors, etc.) that are the building blocks of the customer experience together with the rules for combining those elements to create meaning.

15. question three Are these technology questions, business management questions or something in-between? “it's the process focus rather than data exchange that provides the real value. The process focus allows the integration to include the logic around the data, "which enables SourceAlliance to operate in Internet real time," - Simon Capell, SourceAlliance's director of IT projects, CIO Magazine June 15, 1999

16. Depending upon it’s strategic goals, each company will define a range of eBusiness functionality to deploy across the organization Innovate advanced Extend • Create new functionality that redefines the market Defend Functionality • Offer advanced functionality to achieve a market leadership position Build • Provide functionality that is equal to the standard offered by key competitors • Define baseline functionality needed to participate in the market basic low Strategic Impact high

17. The eBusiness “fad of the moment” does not fit all Enterprises eVersions of Traditional Payments Profiling & Targeted Delivery Multi-Channel Experiences Portfolio Tools Usability Professional tools to model portfolios and provide advice Well thought-out navigation, clear terminology, effective editorial & clean page design with obvious tool placement regains “vogue” • Person2Person • Virtual Single Use Credit Cards • Integrated online and offline payment offerings Creating & linking effective user profiles to content models to deliver targeted services is perceived by users as “adding value” Aligned customer delivery across touchpoints Successful Initiatives & Account Aggregation & White-Labeling Pooling customer information across financial institutions; Single sign on Branded, Pass-through content & product options Content & Product Delivery Site Design Trends Delivery Strategies Online Services Payment Methods Internet Only Offerings “Virtual” Communities “Next Generation” Options Customization Bells & Whistles Normal citizens providing each other investment advice Extensive user interviewing & ethnography reveal users are reluctant to go through and use most “do it yourself” options Slows site performance down & can be annoying eOfferings are the offerings…other channels are obsolete • EBPP • Digital Cash • Virtual Points • Smart Cards • Virtual Escrow • Digital Wallets • eChecks Lessons Learned • Flash intros • Scrolling tickers • Excessive graphics

18. Are these data questions, business management questions or something in-between? Something in-between.Exactly. • By understanding the relationships between business processes, companies can focus on their ultimate goal—finding opportunities to improve their business.

19. Are these technology questions, business management questions or something in-between? These opportunities can create efficiencies that significantly improve bottom line performance…

20. To solve these issues, the enterprise must manage across the fundamental gaps among business strategy, architecture, and execution Business strategy is frequently defined without aligning and coordinating across customer segments, channels, products and services Unclear definition and alignment of architecture layers, solution sets, and applications weaken the ability to enable emerging business requirements and a differentiated customer experience • Technology decisions, such as package selections, are frequently made without evaluating potential implications, including: • Multi-channel and enterprise scalability • Architectural compatibility • Ability to support business requirements and a differentiated customer experience The proliferation of multiple, competing architectures result in fragmented technology solutions and excessive development, maintenance, and application costs

21. 1a. Transactional Backbone 1b. Content Backbone Marketing Data Store Sales Content Management Support Accounting Analysis Document Management Supply Chain Human Resources Procurement 2. Integration Services Monitor Translate Workflow Security Application Adapters Data Adapters Protocol Adapters 3. Application Services Internet Intranet Commerce Exchange Wireless Agents B2B 4. Delivery Services Customer Supplier Employee Investor How does the eBusiness group respond? Determine what components are currently in place to address these questions in an efficient and effective way. • What business processes could be streamlined across business lines? • How to create a seamless experience for your customers, partners and employees?