e-business in European SMEs

1. Presentazione progetto e-Volutioning. Roberto CitarellaDip. di Ingegneria MeccanicaUniversità di Salerno

2. e-business in European SMEs • Business reality does not display the importance of e-business yet, partly ignorance of strategic importance • Widely satisfaction with e-business, but no euphoria • Current focus on e-commerce activities • Most significant impacts of e-business still concern internal business processes • Real potentials are in the value chain • Unused potentials of ICT and e-business as the key enablers for Extended Enterprises

3. Spheres for e-business in Extended Enterprises and in e-volution • Secure or increase revenue by increasing number of customers and by increasing customer satisfaction • Increase productivity by optimum use of organisation, processes and resources business strategy Business strategy Revenue Business management system Procurement Integrated Supply Chain Commerce Increase revenue Finances, controlling, administration process Human resource management process Reduce need for capital Reduce costs RTD and engineering process Infrastructure process Productivity Bartsch, Th.: e-business in KMUs. IBM Unternehmensberatung Germany, 2001 • Effective use of e-business opportunities and development of e-business strengths e-business strategy

4. The purpose of the e-volution methodology concept is the successful implementation of e-business in Extended Enterprises. e-business road mapping model Software tools Based on approved models, e-volution offers an e-business road mappingmodel that fulfils the requirements of a systematic and goal-oriented planning of e-business implementation. I. II. III. IV. V. The e-business road mapping model is the starting point for the use of phase specific methods and software tools. Training package Content Service The e-volution training package is for transfer and teaching how to apply the e-business road mapping model, methods and tools. The e-volution Content Service disseminates the e-business road mapping model with its methods and tools but also know-how about e-business. e-volution’s methodology concept

5. Expected project results according to the DoW Enhancement of competitiveness and sustainable growth of European Extended Enterprises by successful use of e-business as means for value chain integration Exploitation Dissemination Content Service Training material National IRGs Software tools Web page Application, validation, exploitation by test cases e-business strategy kit “e-Volution” methodology concept DoW – Description of Work

6. Principle Extended Enterprise scenarios under consideration Horizontal Extended Enterprises Vertical Extended Enterprises final producer end user 2nd tier supplier 1st tier supplier final producer end user market market • Organisation focus: value chain • Supplier-customer-relationships • Each entity adds value for the final product • Information flow follows material flow • One entity as market interface • Example: German Test Case • Market focus: combination of competencies, services/products to innovative, extended service/product • More than one entity potentially as market interface • Entities can operate in same market • Example: Italian test case

7. Requirements for an e-business road mapping methodology Road mapping is the process to develop a road map. Road mapping is an creative analysis of an organisation and its environment to prognosticate, visualise and plan the future. Road mapping is a systematic identification and analysis of expert know-how, the coordination of divergent meanings and expectations to predict and assess future developments in certain field. • e-volution aims to specify a generic e-business road mapping process that uses Specialised know-how, e.g. • Business know-how: entity purpose and structure (goals, organisation, processes, resources, utilities, goals) • System know-how: Information and Communication Technologies Methodical know-how, e.g. • Management methods • Management instruments e-business life cycle • Requirement analysis specifies the road mapping process content needs (tasks, methods, instruments)

8. System architecture concept (Task 3.1) Web-services Web • Component based task execution • Ontology for communication means between different domain knowledge (3rd party applications) • Interconnecting database management system (DBMS) Extended Enterprise SME 1 Web-services enabler Organisation Module SME 2 DB Integration platform SME 3 Market Module DB DB SME n • Market module concept (Task 3.2) • Organisation module concept (Task 3.3) • Integration platform concept (Task 3.4) • Rules, mechanisms and update routines (Task 2.4)

9. given by individual strategy given by individual strategy given by individual strategy goal definition of the EE given by individual strategy given by individual strategy given by individual strategy goal prioritisation individual analysis individual analysis individual analysis alignment if value adding fits given by individual organ. given by individual organ. given by individual organ. definition on EE level individual analysis individual analysis individual analysis elimination of big differences Horizontal Extended Enterprises – different levels of information gathering 2nd tier supplier (operative partner) 1st tier supplier (operative partner) final producer (operative partner) EE level (co-ordinator) goal definition goal prioritisation process prioritisation core competence analysis eOrganisation definition eBiz abilities process prioritisation

10. given by individual strategy goal definition of the EE given by individual strategy goal prioritisation individual analysis adjustment on each other (in SWOT) given by individual organ. definition on EE level individual analysis elimination of big differences Vertical Extended Enterprises – different levels of information gathering final producer (operative partner) EE level (co-ordinator) final producer end user • Result: • information gathering to identify strength and weaknesses on EE level are almost the same on vertical and horizontal EE organisations • There is a small difference in having a view on the single competencies of the partners within the EE: • in vertical EEsWhat kind of new products / services are possible with the competencies of each partner? • in horizontal EEsDo the core competencies of each partner in the single stage of the value chain fit to the needed task/added value for the EE? goal definition goal prioritisation process prioritisation core competence analysis eOrganisation definition eBiz abilities process prioritisation • Ergo: • individual competence analysis could be important for the SWOT – no direct impact on OM on EE level • core competence alignment in horizontal EEs is important for OM

11. Phase II: CONCEPTIONDetailed e-business road mapping model phase Level 1: Phase Level 2: Phase steps Level 3: Tasks Level 4: Activities

12. Phase II: CONCEPTIONExternal analysis: Trend analysis E-sales trend filtering analysis E-sales trend formatting analysis

13. Phase II: CONCEPTIONExternal analysis: Product and market assessment / opportunity-threat-definition Opportunity-Threat analysis table Product/Market areas identification based on attractiveness and EE competitive position submission to the integration module