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Digitization: Moving
From Vision to Execution
Ravi KalakotaCEOE-Business Strategies
November 2002
Continuous Change
Process Digitization
Interconnectedness
© E-Business Strategies (www.ebstrategy.com)
E-Business Strategies
Research and Process Consulting
Fast-Cycle, Practical and Focused Research
Process Design and ROI Modeling
Executive Education and Consulting Firm
Publish Research in the form of Books
1995 1996 1999 2001 2002
Scanning + Thinking + Doing = Expertise
E-Business
M-Business
C-Business
© E-Business Strategies (www.ebstrategy.com)
EBS Research Perspective…
In the 1950s, they said TVs would make movies go out of business, they were wrong.
In the 1970s, they said VCRs would put movie theatres out of business, they were wrong
In the 1990s, they said Online Shopping would put the stores out of business, they were wrong
In the 2000s, they are saying that e-marketplaces are going to put suppliers and procurement managers out of business, they were wrong!!
Change is Evolutionary Not Revolutionary
© E-Business Strategies (www.ebstrategy.com)
The Big Picture
Management, Not Technology is the Problem
The E-business Landscape – Outside The Firm
Reality Check - Where Are We? Technology Economics
B2B -- Business Process Design Challenges
Key Takeaways
The E-business Landscape – Inside The Firm
© E-Business Strategies (www.ebstrategy.com)
Cascading S-Curves
80’s 90’s 00’s
MainframeMinicomputer
(30 years)
E-commerceE-business
(7 years)
Time
% Adoption
PCClient-Server
(15 years)
GROWTH
MATURITY
INNOVATION
Mobile SolutionsWeb Services
Grid Computing(?)
Macro-Level Structural Change is a Constant…Technology Models
The Technology Cycles are Cascading – The pressure on Execution and ROI is/will be incredible
© E-Business Strategies (www.ebstrategy.com)
Time
Demand /Visibility
Tech Trigger
Slope of Profit
Slope of
Despair
Slope of Hype
ConsolidationBoom
Bust
HypePeak
Technology EconomicsThe Macro-Level: Phases of Innovation
© E-Business Strategies (www.ebstrategy.com)
Where are these on this curve? A) E-commerce (e.g., Amazon.com)B) E-procurement – Digital Markets
C) Wireless Technology
Technology Economics Following the Innovation Curve
Time
Demand /Visibility
Tech Trigger
Slope of Profit
Slope of
Despair
Slope of Hype
ConsolidationBoom
Bust
HypePeak
A
B
C
D
© E-Business Strategies (www.ebstrategy.com)
Technology Economics E-Business is about Change Management
Managing Change -- Requires recognition of the attitude likely during the life cycle
Time
Attitude
+
_
Idealism
Commitment
Despair
Usage
Value Awareness
Anger
Frustration
© E-Business Strategies (www.ebstrategy.com)
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11Time
Demand /Visibility
Tech Trigger
Technology Investment Curve
B2B Adoption Curve
InnovatorsEarly Adopter
Early Majority
Late Majority Laggards
As a CEO, at what point do you become serious?
Technology Economics B2B Diffusion: Consider the following Pattern
© E-Business Strategies (www.ebstrategy.com)
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11Time
Demand /Visibility
Tech Trigger
Technology Hype Curve Process & Application
Infrastructure build out
Key Alignment Question: How to time Process and IT investments?
Diffusion: Technology <-> Business Alignment
© E-Business Strategies (www.ebstrategy.com)
Portals
19941994 19971997 20002000
ERP B2C B2B
SMB Challenge: How to Time Technology Investments and Prioritize Execution
The Perfect Storm: Continuous Innovation Innovation Fatigue
Mobile
Wireless
Web Services
20012001 20022002
© E-Business Strategies (www.ebstrategy.com)
The Big Picture
Management, Not Technology is the Problem
The E-business Landscape – Outside The Firm
Reality Check - Where Are We? Technology Economics
B2B -- Business Process Design Challenges
Key Takeaways
The E-business Landscape – Inside The Firm
© E-Business Strategies (www.ebstrategy.com)
E-business Priority #1 -- Small and Mid-Size Business (SMB) Market Segment
E-business Target Market
Small-Office Home OfficeCustomer Revenues < USD 5m
High-end Global 3000Customer Revenues > USD 2 Bln
Mid-marketCustomer Revenues USD 50 - 750m
Small-businessCustomer Revenues < USD 50m
Large FirmsCustomer Revenues USD 750 – 2 Bln
© E-Business Strategies (www.ebstrategy.com)
Why are We Interested in Process Digitization?
Widely Believed Hypothesis: We Are in Between Two Productivity “S” Curves
Quality
BPR
MRP
CRM
Performance
X-Apps & Web Services
C- Business
E-commerce – B2C & B2B
1990 1995 2000 2005
Efficiency outside the Firm
Time
Efficiency inside the Firm
© E-Business Strategies (www.ebstrategy.com)
Where Are We Today?
Phases of e-business
IncreasingCustomer &
BusinessValue
InternalIntegration
Features
• Web Enabling applications• Integration with existing processes and systems • Customer self-service
PHASE 3PHASE 3
Features
• B2B Transactions
• Optimized Procurement
• Supply chain optimization
• Advanced personalization
• Mobile Enterprise
Value Networks
PHASE 4PHASE 4
WebPublishing
Features
• Web Site• Marketing information• Brochures•
PHASE 1
E-businessTransactions
Features• Sales Efficiency • Web commerce • Interactivity & Fulfillment• Personalization• Mobile Commerce
PHASE 2PHASE 2 PHASE 5PHASE 5
Inter-Enterprise
Integration
Features
• XML-based Industry-specificprocess models
• Collaborative Business Solutions
• Build to Order Supply Chains
• Advanced Mobile Enterprise
E-commerce E-business C-Business
Efficiency inside the Firm
Efficiency outside the Firm
© E-Business Strategies (www.ebstrategy.com)
STAKEHOLDERS
STAKEHOLDERS
EEMMPPLLOOYYEEEESS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
E-commerce Requires Back-office Integration
© E-Business Strategies (www.ebstrategy.com)
Enterprise Resource PlanningEnterprise Resource Planning
Lo
gis
tics
Lo
gis
tics
Pro
du
ctio
nP
rod
uct
ion
Dis
trib
uti
on
Dis
trib
uti
on
Customer Relationship ManagementCustomer Relationship Management
Mar
keti
ng
Mar
keti
ng
Fie
ld S
ales
Fie
ld S
ales
Cu
sto
mer
Cu
sto
mer
Ser
vice
Ser
vice
SSTTAAKKEEHHOOLLDDEERRSS
SSTTAAKKEEHHOOLLDDEERRSS
EEMMPPLLOOYYEEEESS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
© E-Business Strategies (www.ebstrategy.com)
Enterprise Resource Planning Enterprise Resource Planning
Lo
gis
tics
Lo
gis
tics
Pro
du
ctio
nP
rod
uct
ion
Dis
trib
uti
on
Dis
trib
uti
on
Customer Relationship ManagementCustomer Relationship Management
Mar
keti
ng
Mar
keti
ng
Fie
ld S
ales
Fie
ld S
ales
Cu
sto
mer
Cu
sto
mer
Ser
vice
Ser
vice
SSTTAAKKEEHHOOLLDDEERRSS
SSTTAAKKEEHHOOLLDDEERRSS
EEMMPPLLOOYYEEEESS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
Supply Chain ManagementSupply Chain ManagementSupply Chain ManagementSupply Chain Management
PortalsPortalsPortalsPortals
© E-Business Strategies (www.ebstrategy.com)
Customer Relationship Management
Mar
keti
ng
Sal
es
Cu
sto
mer
Ser
vice
PortalsPortals
Supply Chain ManagementSupply Chain Management
Enterprise Resource PlanningL
og
isti
cs Pro
du
ctio
n
Dis
trib
uti
on
Business Business IntelligenceIntelligenceBusiness Business
IntelligenceIntelligence
Enterprise Enterprise Application Application IntegrationIntegration
Enterprise Enterprise Application Application IntegrationIntegration
SSTTAAKKEEHHOOLLDDEERRSS
SSTTAAKKEEHHOOLLDDEERRSS
EEMMPPLLOOYYEEEESS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
© E-Business Strategies (www.ebstrategy.com)
Stkeholders
Stkeholders
Customer Relationship Management
Mar
keti
ng
Sal
es
Cu
sto
mer
Ser
vice
PortalsPortals
Supply Chain ManagementSupply Chain Management
Enterprise Resource PlanningL
og
isti
cs
Pro
du
ctio
n
Dis
trib
uti
on
Business Business IntelligenceIntelligenceBusiness Business
IntelligenceIntelligence
Enterprise Enterprise Application Application IntegrationIntegration
Enterprise Enterprise Application Application IntegrationIntegration
Ad
min
istr
ativ
e C
ontr
olH
RM
S /
BM
S /
OR
MS
A
dm
inis
trat
ive
Con
trol
HR
MS
/ B
MS
/ O
RM
S
Fin
ance
/Acc
oun
tin
g/A
ud
itin
gM
anag
emen
t C
ontr
olF
inan
ce/A
ccou
nti
ng/
Au
dit
ing
Man
agem
ent
Con
trol
SSTTAAKKEEHHOOLLDDEERRSS
SSTTAAKKEEHHOOLLDDEERRSS
EEMMPPLLOOYYEEEESS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
© E-Business Strategies (www.ebstrategy.com)
The Big Picture
Management, Not Technology is the Problem
The E-business Landscape – Outside The Firm
Reality Check - Where Are We? Technology Economics
B2B -- Business Process Design Challenges
Key Takeaways
The E-business Landscape – Inside The Firm
© E-Business Strategies (www.ebstrategy.com)
CompanyProcesses
MarketProcesses
PortalsPrivate Exchanges/Hubs
Public MarketplacesConsortiums
Integration of Inter-Enterprise Processes
Inter-Enterprise
Apps
C-BusinessProcesses
© E-Business Strategies (www.ebstrategy.com)
Employee Channel
Integration
Financial Channel
IntegrationMulti-Channel
Integration
B2B - Supply Chain
Integration
Financial &Investor Markets
Consumer & Reseller Markets
Suppliers & Logistics Markets
Labor & BenefitsMarkets
Stkeholders
Stkeholders
Customer Relationship Management
Mar
keti
ng
Sal
es
Cu
sto
mer
Ser
vice
Portals
Supply Chain Management
Enterprise Resource Planning
Lo
gis
tic
s
Pro
du
ctio
n
Dis
trib
uti
on
Business Business IntelligenceIntelligence
Enterprise Enterprise Application Application IntegrationIntegration
Ad
min
istr
ativ
e C
ontr
olH
RM
S /
BM
S /
OR
MS
Fin
ance
/Acc
oun
tin
g/A
ud
itin
gM
anag
emen
t C
ontr
ol
SSTTAAKKEEHHOOLLDDEERRSS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
Stkeholders
Stkeholders
Customer Relationship Management
Mar
keti
ng
Sal
es
Cu
sto
mer
Ser
vice
Portals
Supply Chain Management
Enterprise Resource Planning
Lo
gis
tic
s
Pro
du
ctio
n
Dis
trib
uti
on
Business Business IntelligenceIntelligence
Enterprise Enterprise Application Application IntegrationIntegration
Ad
min
istr
ativ
e C
ontr
olH
RM
S /
BM
S /
OR
MS
Fin
ance
/Acc
oun
tin
g/A
ud
itin
gM
anag
emen
t C
ontr
ol
SSTTAAKKEEHHOOLLDDEERRSS
EEMMPPLLOOYYEEEESS
Customers, ResellersCustomers, Resellers
Suppliers, Distributors, PartnersSuppliers, Distributors, Partners
Inter-Enterprise Framework
© E-Business Strategies (www.ebstrategy.com)
EmployeeCustomerCRM
FinancialSCM
Supplier
Organization
Financial &Investor Markets
Suppliers & Logistics
Markets
Consumer & Reseller Markets
Employee Channel
Integration
Financial Channel
Integration
Multi-Channel Integration
B2B - Supply Chain
Integration
Labor & BenefitsMarkets
Inter-Enterprise Framework
© E-Business Strategies (www.ebstrategy.com)
Employee
FinancialSCM
Supplier
Organization
Financial &Investor Markets
Suppliers & Logistics Markets
Employee Channel Integration
Financial Channel Integration
B2B - Supply Chain Integration
CustomerCRM
E-sales
Consumer & Reseller Markets
Multi-Channel
Integratio
nLabor & BenefitsMarkets
Inter-Enterprise Framework
© E-Business Strategies (www.ebstrategy.com)
CorporationWith
MultipleSales
Channels&
Customer Touch-Points
Distributor
Field, Branch Offices
OEM Reseller
Direct Sales Force
Call Center/VRU
E-mail, Web, Mobile
Catalog
ATM/Kiosk
Customer Market
End User
BrandingPartners
OEM/Reseller Distributors
Credit CardInstitutions
MarketingPartners
The Integration of Customer-Facing Channels
© E-Business Strategies (www.ebstrategy.com)
EmployeeCustomer
CRM
Financial
Organization
Financial &Investor Markets
Consumer & Reseller Markets
Employee Channel Integration
Financial Channel Integration
Multi-Channel Integration
ERPSCMPLM
Supplier
Suppliers & Logistics Markets
B2B - Supply Chain
Channel
Integration
Labor & BenefitsMarkets
Inter-Enterprise Framework
© E-Business Strategies (www.ebstrategy.com)
CompanyInformation
&Applications
Finished Goods Delivery
Manufacturing or Configuration
Warehousing
In-bound Logistics
Auctions Management
Order and Transaction Management
Planning and Scheduling
Sourcing and Contracts
Collaborative Design
Supply Market
Auctions
OutsourcedManu-
facturingLogisticsPartners
IndirectMaterialsSuppliers
DirectMaterialsSuppliers
Integrating Multiple B2B Supply Chains
© E-Business Strategies (www.ebstrategy.com)
Organizing a B2B Application Infrastructure
Bunch of Fragmented Applications -- Increasing complexity ($$$)
© E-Business Strategies (www.ebstrategy.com)
Organizing a B2B Infrastructure – Categorize Apps
Increasing Integration and Process Focus
© E-Business Strategies (www.ebstrategy.com)
Organizing a B2B App Infrastructure – Group by Core Processes
Partner Facing
Employee Facing
Supply Chain Facing
Supplier Relation Facing
© E-Business Strategies (www.ebstrategy.com)
Organizing a B2B App Infrastructure – Supplier Facing Platforms
VA
LU
E-A
DD
E-M
AR
KE
TP
LA
CE
SE
RV
ICE
S Applications
E-M
AR
KE
TP
LA
CE
FU
NC
TIO
NA
LIT
Y
Supplier Facing Service Platform
Operations
Web Services Integration
Process
Integration Support
Customer Support
Financial Services
Fulfillment and Logistics Services
Hosting Support
Catalog Services
Content Services
Order-to-Cash Management
Order-to-Cash Management
PricingCatalog
Management
PricingCatalog
Management
Strategic SourcingStrategic Sourcing
Transaction Management
Services
Multi-Contract Management
Business Intelligence Call Center
Help-DeskOff-Line Support
Adoption
Help-DeskOff-Line Support
Adoption
OrderFulfillment
OrderFulfillment
Logistics
Management
ERP CRM Financials SCM
© E-Business Strategies (www.ebstrategy.com)
The Big Picture
Management, Not Technology is the Problem
The E-business Landscape – Outside The Firm
Reality Check - Where Are We? Technology Economics
B2B -- Business Process Design Challenges
Key Takeaways
The E-business Landscape – Inside The Firm
© E-Business Strategies (www.ebstrategy.com)
Historical Perspective: Changing Process Priorities
Focus Method1970s Quality TQM, Zero Defects,
Statistical Process Control (SPC)
1980s Lean Manufacturing
Just-in-Time, Zero Inventory, Kanbans and CIM
Early 1990s Process Improvement
VMI, System Outsourcing, Customer Satisfaction, ERP
Mid to Late 1990s
Process Re-Engineering
Business Process Re-engineering, SCM, Six Sigma
Late 1990s to 2000s
Digitization of Business Processes
C-commerce, e-business, Business Outsourcing, SCM, CRM
© E-Business Strategies (www.ebstrategy.com)
Wave 4: Wave 4:
Wave Wave 3:3:
Wave 2:Wave 2:
Enable Commodity Management (Strategic
Sourcing)
Automate Transactions (Enable Processes)
Streamline Supply Chain (Process Optimization)
Wave Wave 5:5:Supply Chain Visibility
Asset Tracking & Management
Types of B2B Process Integration
Strategic Issue: What is the focus of the B2B digitization effort?
Wave 1:Wave 1:Automate
Communication (EDI Connectivity)
© E-Business Strategies (www.ebstrategy.com)
Search &Select
Search &Select
RFQ &Availability
RFQ &Availability
WorkflowAuthorization
WorkflowAuthorization
Order Flow
ReceivingReceiving OrderTracking
OrderTracking
WarehousePick, Pack
WarehousePick, Pack
Supplier Fulfillment Flow
BillingInvoicing
BillingInvoicing
Payment(Net 30)
Payment(Net 30)
FinancialReporting
FinancialReporting
Payment Flow
Logistics Ship
Logistics Ship
Purchase Order
Purchase Order
CustomerService
Backward IntegrationBackward Integration
Key Processes in B2B
Returns and Auctions
© E-Business Strategies (www.ebstrategy.com)
Integrating Order Management
PO
CRM
SCM
ERP
ProcessPO
Send POCustomer
Send POSupplier
ProcessSales Order
Public processPublic
processPrivate process
(Company-specific)
Private process(Company-specific)
Customer Supplier
Receive POAcknowledge
Send POAcknowledge
Send POResponse
Close
Receive PORequest
SelectSupplier
GenerateRFQ
SendRFQ
Select RFQResponse
SendPO
Close
Send PO
Receive POResponse
Send POResponse
Acknowledge
Receive PO
Send POResponse
Receive POResponse
Acknowledge
Receive PO
CheckCustomer
CheckCredit
CheckAvailability
Create SalesOrder
Receive POAcknowledge
Send POAcknowledge
Send POResponse
Fulfillment
Login
SelectSupplier
Select fromContract
Generate PO
Approve PO
SendPO
Fulfillment
Send PO
Receive POResponse
Send POResponse
Acknowledge
Receive PO
Send POResponse
Receive POResponse
Acknowledge
Receive PO
CheckCustomer
CheckCredit
CheckAvailability
Create SalesOrder
ERP
© E-Business Strategies (www.ebstrategy.com)
Brick & Mortar• Slow paper based
processes• Legacy Investments• Bureaucratic Processes• Fragmented Service
payments, fulfillment, returns• Changes & modifications)
Web• Immediacy• Customization• Content• Personalized
Transactions• One Stop Service
Click -n- Brick ProcessesMulti-Channel Infrastructure
Where we are going…Hybrid Process Digitization
Integration of Click and Brick Process Synchronization is Work-In-Progress
To successfully control a B2B process, you need to DIGITIZE the process
© E-Business Strategies (www.ebstrategy.com)
Brick & Mortar
• Paper based• IVR/Call Center
Invested• Tradition and
Jurisdiction • Employee Centric
Constant changes
Web
• Speed• Customization• Content• Personalized
Transactions• One Stop
Service
Web
• Speed• Customization• Content• Personalized
Transactions• One Stop
Service
Click -n- Brick n- Flicks Multi-Channel Infrastructure
Hybrid Process Digitization… “Brick, Click and Flicks”
Introducing a new process variable is confusingCross-cutter Process are very hard to design and build
Mobile
• Real-time• Process
optimized to device
• Personalized Transactions
Mobile
• Real-time• Process
optimized to device
• Personalized Transactions
To successfully control a B2B process, you need to DIGITIZE the process
© E-Business Strategies (www.ebstrategy.com)
The Big Picture
Management, Not Technology is the Problem
The E-business Landscape – Outside The Firm
Reality Check - Where Are We? Technology Economics
B2B -- Business Process Design Challenges
Key Takeaways
The E-business Landscape – Inside The Firm
© E-Business Strategies (www.ebstrategy.com)
Few Organizations Execute Strategy Well
“In the majority of failures – we estimate 70% – the real problem isn’t (bad strategy)…. It’s bad execution.”
“Why CEO’s Fail”,Fortune Magazine
“Strategy has never been more important”
Business Week
“Less than 10% of strategies effectively formulated are effectively executed”
Fortune Magazine
Execution is the Problem, Not Technology!
E-Business Execution is not very effective!Well-Known Fact
© E-Business Strategies (www.ebstrategy.com)
Objective Description• Reducing costs
• Decreasing rework
• Shortening processing time
• Fixing specific errors
Strategic Improvement
• Enhancing supply chain efficiencies
• Web enabling strategic operations
• Decreasing time to market
• Improving customer satisfaction
Process Improvement
• Changing the rules of the game
• Creating a customer focus
• Abandoning old ways of doing business
• Major culture change
Business TransformationRhetoric
Reality
Focus, Focus, FocusFacing Reality – Focus on Execution
What is your Focus?
© E-Business Strategies (www.ebstrategy.com)
The Trade-Off: Innovation vs. Efficiency
Technology
Customers
Revolutionary(Best of Breed)
Evolutionary(Integrated)
Listen toExisting Users
Lead UsersEarly Adopters
Management• Eliminate Risk• Efficiency Focus
InnovationNew Services
ProcessEfficiency
Innovation and Growth were the Drivers of B2B
© E-Business Strategies (www.ebstrategy.com)
Innovation AND Efficiency Does Your Operating Model Enable Both?
Technology
Customers
Revolutionary(Best of Breed)
Evolutionary(Integrated)
Listen toExisting Users
Lead UsersEarly Adopters
Leadership-- Take Risk - Strategic-- Innovation Focus
Management• Eliminate Risk• Efficiency Focus
OperatingModel
Innovation Diffusion
Model
Linking Innovation and Efficiency is Tricky
© E-Business Strategies (www.ebstrategy.com)
Old B2B Model:Before the Bubble Burst (1998 – 2001)
StrategyStrategy ExecutionExecutionSpeedSpeed
• E-Business
• SRM
• SCM
• ERP
• Mobile
• E-Business
• SRM
• SCM
• ERP
• Mobile
• Branding
• Prototype
• Implementation
• Market Share
• Branding
• Prototype
• Implementation
• Market Share
One Initiative at a time – Very little Integration
© E-Business Strategies (www.ebstrategy.com)
New B2B Model:
After the Bubble Burst (2002 - ?)
StrategyStrategyE-BusinessExecution
Management
E-BusinessExecution
Management
• E-Business
• Multi-Channel
• Supply Chain
• E-Procurement
• E-Business
• Multi-Channel
• Supply Chain
• E-Procurement
• ROI and Profitability
• Change Management
• Blueprint Planning
• Process Design
• Performance Metrics
• ROI and Profitability
• Change Management
• Blueprint Planning
• Process Design
• Performance Metrics
ExecutionExecution
• Prototype
• Implementation
• Integration
• Project Management
• Prototype
• Implementation
• Integration
• Project Management
Multiple Initiatives consolidating – Need Coordination
© E-Business Strategies (www.ebstrategy.com)
Versioning… As the target shifts so the aim
Management goal: Manage
Uncertainty
The Changing Environment makes it almost impossible to
execute
© E-Business Strategies (www.ebstrategy.com)
New Workforce CompetenciesNew Workforce CompetenciesAn e-Marketplace ExampleAn e-Marketplace Example
Digitization
Web Enabling the key business processes
(Catalog Search -> Order)
Low-Touch commodity products
High-Touch Complex products
Need to Build a new portfolio of workforce competencies
Digitize a part of the relationship (Order only)
Fulfilment needed Call-Center contact
Full Customer
Self-Service(Click)
Partial Customer
Self-Service
(click+Call)
Combination of
Web+call+ Sales
Person
Sales Person
+Distributor
Model(Brick)
Commodity Products
Complex Products
High Touch
Ideal State Real WorldPrior to “E”
© E-Business Strategies (www.ebstrategy.com)
The Big Picture
Management, Not Technology is the Problem
The E-business Landscape – Outside The Firm
Reality Check - Where Are We? Technology Economics
B2B -- Business Process Design Challenges
Key Takeaways
The E-business Landscape – Inside The Firm
© E-Business Strategies (www.ebstrategy.com)
Relentless Time
Compression
ContinuousSpace
Compression
ContinuousChange
New Solutions
•Org. Structure•Business Model•Technological
• Business cycles are shorter• Real-time • Customers demand patterns are unpredictable
• Global is local is personal• No supply chain boundaries -- visibility
B2B Mega-Trends
© E-Business Strategies (www.ebstrategy.com)
Sky and Water I, M. C. Escher
B2B is Constantly Evolving
Structural changes will not go away -- Big Changes take 10+ years
Incumbents will be an important part of the market’s evolution – Laws of economics still apply
Process Focus is emerging – Infrastructure is the means to the End
Internet connectivity does not equal Integration
Are you ready for digitization?
© E-Business Strategies (www.ebstrategy.com)
EBS Long-term Vision
Technology Continuously Transforms Business
Processes
E-Business Strategies www.ebstrategy.com
E-mail: [email protected] Phone: 678-339-1236 x 203
Better
FasterCheaper