Presentation Transcript

1. Group 11: Christian, Mads, Hanne, Pia24-10-2012

2. Questions What are the roles of the various trade communities of CrimsonLogic? What is the motivation for suppliers and buyers to use CrimsonLogic’s communities? What are the challenges for CrimsonLogic? What value-added services can CrimsonLogic offer to a supplier-centric community?
3. Agenda Background B2B E-Commerce hub Products: TradePalette / TradeNet Trading community formation Competitors Motivation to buy communities Challenges Value-added services to offer a supplier-centric community Recommendation
4. Background 1988 - Formed by 4 government-linked companies in Singapore 2002 - Name changed from SNS (Singapore Network Services) to CrimsonLogic in line with its internationalisationand service area expansion aims Ownership International Enterprise Singapore Board (55%) Singapore Telecom Civil Aviation Authority of Singapore (CAAS) Port of Singapore Authority (PSA) Originally VAN (value-added network) service provider, later ASP (Application Service Provider) In addition, CrimsonLogic offers systems integration, consulting and licensing services Worldwide 500 employees (2004) Headquarter in Singapore Advanced nationwide information infrastructure Singapore government is trying to develop it into an international e-commerce hub Location for many multi-national companies
5. B2B E-Commerce hub Electronic marketplace Requires 2 or more business entities interacting with each other directly or through an intermediary 3 types Supplier-centric Marketplace typically set up by a dominant supplier Buyer-centric Marketplace for purchase and acquisition set up by buyers Intermediary-centric Marketplace set up by a third party, such as CrimsomLogic, to attract both the buyer and seller businesses to interact Essential that intermediary company represents large numbers of members
6. TradeNet
7. TradePalette
8. Products: TradePalette and TradeNet TradePalette TradeNet TradeNet Supplier/ Forwarders Buyer/ Regulatory Authorities = EDI VANs = Internet EDIs/XML
9. Trading community formation Buyers Suppliers Suppliers Suppliers Buyers Buyers TradePalette Traders TradePalette Traders TradePalette Traders Current position Step 1 Few-to-One-to-One Buyer-Driven Formation Step 2 Many-to-One-to-Few Buyer-Driven Formation Step 3 Many-to-One-to-Many Buyer-Driven Formation & Supplier-Driven Formation Normally created on the initiative of a large buyer Buyer proposes adoption of the application for data communication with each supplier Particularly, large buyers have the bargaining power to require adoption of the community A small community is formed between buyer and some of its suppliers No. of suppliers gradually increases over time, as buyer’s request for the system to be adopted is taken up More buyers start to initiate B2B procurement and community grows Suppliers want additional buyers to join the community in order to enhance the operational efficiency from economics of scale (Ability to produce goods and services and services on a larger scale with fewer costs) CrimsonLogic setup: 1) Sends letter to supplier endorsed by the buyer 2) If supplier agrees to join, CrimsonLogic charges a fee based on the number of electronic data transactions made in addition to a fixed subscription fee
10. Major competitors Primarily competition from Singapore-based companies rather than global competitors Extra services and own communities Offer server outsourcing Out-license solution package on the customers’ terms against a license payment
11. Motivation to use communitiesSuppliers and buyers
12. Motivation to use communitiesSuppliers and buyers
13. Motivation to use communitiesSuppliers
14. Motivation to use communitiesBuyers
15. Challenges
16. Challenges - Customers
17. Challenges - Customers
18. Challenges - Products
19. Value-added services to offera supplier-centric community
20. Value-added services to offera supplier-centric community
21. Recommendation Move from buyer-centric to supplier-centric community offering the value-added services Move customers from TradeNet til TradePalette Increase price for TradeNet to make it more attractive to migrate to TradePalette to ensure a higher number of users and to make the application a state of the art standard Create lock-in effect Ensure integration with existing systems in order to make it difficult to switch to new system Introduce upgrades that offer enhanced capabilities in return for the investment of additional time learning the new features Reward customers when they suggest new buyers / suppliers to the community Incorporate new proprietary features into your products and services to raise switching costs Obtain status as preferred standard solution to both buyers and suppliers Try to get hold of large suppliers / buyers, as they may be influential because they dictate to others the format in which they insist on receiving information and help establish or promote a product standard Standardisation instead of customisation A standardised solution is more cost effective Compatibility / standardisation creates benefits for the members, as they can mix and match their trading across the platform with different stakeholders and intermediaries using the same standard Differentiation compared to competitors Close relation to the Singapore authorities