e-business a new way of doing business The Internet is both a technology, and a new way of doing business. e-business... Internet Computing Architecture v 1.0 Conceptual Technical Architecture Physical Architecture eCommerce Application Tier Client Tier Data and BackOffice Tier Partners Integration Tier Internet Hosting Provider Data Center Business and Individual Buyers Web Browser Access Hosting Provider Professionally Managed IS&T Operations Physically Colocated Shopping Firewall Firewall EDI, File Transfer, etc VAN Merchant Server Content HTTP and HTTPS www.store1.com thru www.storeN.com Intelligent Internet Load Balancing Ethernet/FDDI - 100 Mbit Internet TCP/IP HTTP Listeners/Web Server (e.g.Netscape) Net8 Tunneling eCommerce Database and BackOffce / ERP Server[s] Web Server and eCommerce Application Server Components Customer, Orders & Payment Content Management TCP/IP Catalog & Inventory Reporting Intranet Application Server[s] and Payment Gateway Data Mart & Reporting Merchant Server Elgrande FrontOffice Elgrande Staff and Store Partners/Merchants Java Applets and Web Browsers Storefront / FrontOffice Internet ERP System Transaction Data Payment Data Store Management Web EDI, XML, HTTP Elgrande BackOffice Merchant Server Partner Fulfillment Acquiring Bank Financial Network Card Issuer Bank Financial Processor Distribution Channel Agenda Today’s e-business is tomorrow’s business . . . l What is e-business? l Why e-business? l Case study l Oracle’s e-business solution framework It’s not just a way to speed up transactions. The Internet is the foundation for a new industrial order. Gary Hamel and Jeff Sampler, ‘The E-Corporation’, ‘Fortune’ , December 7, 1998 What is e-business? l l l The way companies do their business using internet technology. Two components of e-business - run themselves more efficiently using the Internet and exploit business opportunities created by the virtual business environment. e-business involves using the Internet to: · Attract, retain, and satisfy customers · Streamline your supply chain, manufacturing, and procurement systems · Automate your corporate business processes to reduce cost and improve efficiencies through self-service · Capture and share business intelligence about your customers and your company’s operations to make better business decisions e-business and drivers 시장 확대 (Expand Markets) Business Drivers 고객 유지 효율성 개선 (Retain Customers) (Improve Efficiencies) Source: Regis McKenna/MRG e-business is a new way of doing business From To Administration Self-Service Internal Focus Relationship Management Transactions Business Intelligence Local, Regional Global e-business enhances business relationships and promote collaborations Customers Intermediaries Investors Employees Mission Vision Values Goals Objectives KPIs Community Government Processes Organization Systems Enterprise Trading Partners Suppliers Community Shareholders e-business means thinking differently about business Rethink traditional assumptions h New competitors h Differentiation h Barriers to entry h Economies of scale h Core competencies Mission Vision Values Goals Objectives KPIs h Business partnerships Processes Organization Systems Enterprise h Role of Information Technology Design from the outside in e-business integrates business processes and technologies across the value chain Customer Relationship Management Channel Integration Mission Vision Values Goals Objectives KPIs Strategic Enterprise Management Processes Organization Systems Enterprise Supply Chain Integration Supply Chain Management Business Unit Integration e-business Maturity Model: A Customer Adoption Scale e-business Readiness: Progression of Solutions Broadcast Interact Transact Integrate Stage 1 Stage 2 Stage 3 Stage 4 Provide online access to product/service content Provide basis self service capabilities and register for identification Provide full service on-line commerce with back-end functionality Provide Collaborative Content via Extranet for private, direct transactions Agenda Today’s e-business is tomorrow’s business . . . l What is e-business? l Why e-business? l Oracle’s e-business solution framework l Case study Why e-business? Overall economy Internet economy Quicker Response and Better Anticipation Empowerment •Authority •정보, Intelligence 정보 Market Intelligence Corporate center 정보 지식 Better Anticipation Expand Markets Average Increase in revenue after 12 months. 52% Source: Jupiter Communications Co. Survey of 25 Companies. Expand Markets Interactive website Online storefront Unified sales e-business Solutions Integrated mktg. / sales / svc. Retain Customers Average Increase in new customers after 12 months of operation. 47% Source: Jupiter Communications Co. Survey of 25 Companies. Retain Customers On-line self-service Unified customer service Customer analysis 1 to 1 marketing 360o view Customer e-business Solutions Operational Efficiencies 5% reduction in Purchasing Costs results in a 30% in the bottom line 30% Increase Efficiencies Internal Purchasing Self Service Supply side Demand side End-to-End Suppliers Enterprise Customers e-business Solutions Agenda Today’s e-business is tomorrow’s business . . . l What is e-business? l Why e-business? l Case study l Oracle’s e-business solution framework Who are the performers ? l Dell Computer 9,402% l Cisco System 2,356% l Sun Microsystems 2,304% l Qualcomm 1,646% l EMC Corporation 1,634% l Microsoft 1,233% l Tellabs 1,036% l Solectron 926% l Intel 900% Source: Data from Bloomberg Financial Markets published in <Business Week>,September 13,1999. e-business Expand Markets 98년 한해동안 66% 매출액 증가 등록 회원 수 32% 증가 20% 웹사이트 인지도 증가 Improve Efficiencies 단일 User당 $2,047매출 기록 Retain Customers 광고주의 96% 확보 유지 e-business Expand Markets Improve Efficiencies Retain Customers 년 225% 매출액 성장 1998한해동안 68만 6천명 신규고객 확보 인터넷을 통해100%매출액 기록 매일 30만8천명의 방문자 기록 한달에 평균 7천5백만 페이지 서비스 기존 고객에 의해 55%영업 매출액 기록 매일 신규 4만명 정도 추천에 의한 판매기록 e-business Expand Markets Improve Efficiencies Retain Customers 1개월에 95만 명의 신규 방문자 발생 상거래 사이트 중 7번쨰 빠른 성장율 기록 경매를 통한 구매자 35% 증가 모든 장벽 및 시장별 상점 제거 재고 비용 86% 줄임 매출액 94% 성장 세계에서 4번째로 유명한 웹 사이트 한달에 평균 7백만 명 방문 e-business Expand Markets Improve Efficiencies Retain Customers 이용고객도 150만명에 이르며 전세계 160여개국을 상대로 영업 아마존의 경우 종업원 1인당 매출액이 30만 달러 인데 반해 기존업체의 경우 약 10만달러에 지나지 않음 (생산효율성 측면) 사업 개시 2년만인 97년 매출이 1억 4천만달러를 넘고 있으며, 98년에는 약 6억 달러의 매출을 달성 다양한 컨텐츠를 구성, 고객 유인책을 마련하여 집객력을 높이는 한편,고객 로열티의 향상을 통해 재구매율을 높이고 있음 e-business Expand Markets Improve Efficiencies Retain Customers PART라는 홈페이지 개설 후 1년 만에 전세계의 고객들과 약 50만 건의 거래를 수행 온라인 정비 지원을 통해 항공사들이 얻는 이익 생산성향상 1.5 백만 달러 소유비용 0.4 백만 달러 출발 지연 감소 0.3 백만 달러 매출신장 3.0 백만 달러 자료실 유지비용 감축 0.03 백만 달러 도입 첫해에 얻은 이익 약5 백만 달러 PART 홈페이지를 이용하면 주문 처리 상황에 대한 정보도 쉽게 얻을 수 있기 때문에 고객들이 보잉사에서 부품을 구매하도록 유인 e-business Expand Markets 북미지역에 한정해 실시한 인터넷 판매를 97년 3월 일본 시장에까지 확대한 데 이어 최근에는 영국에도 진출할 계획을 발표 하는 등 그 사업 영역을 세계로 확대하고 있음 Improve Efficiencies 부품은 JIT방식을 취함으로써 부품 재고가 거의 없이 고객이 4일 이내에 주문한 제품을 인도 받도록 하고 있음 Retain Customers 고객들의 기술적 문의 및 A/S 업무를 인터넷을 통해 고객 로얄티를 향상 시킴으로써 새로운 판매기회를 확보함 e-business Expand Markets Internet 상거래를 통해 Enterprise시장 중심에서 small -to-medium business 까지 시장을 확대 전체 매출의 73%가 Cisco의 e-commerce site에서 직접적으로 이루어짐 Improve Efficiencies 직원수의 증가 없이 매출 500%성장 기록 비즈니스 리드 타임이 평균 3주에서 3일로 단축됨 Retain Customers 모든 고객 지원의 79%, S/W upgrade 82% 가 인터넷을 통해 이루어짐 Cisco Multi-site Architecture Customer Order Global Services Financials and Order Management ATP Request, Reply GL AP Global Data Registries Order Management Inter-BU Transactions GL Global ATP AR OE PO Global Extract System INV Order Status Mfg Order Mfg Order Order Status Manufacturing PO Mfg INV Financials and Global Reporting Systems Manufacturing PO Mfg INV AP AR OE Items, BOMs, Config Rules, Customers, more PO INV Manufacturing PO Mfg INV Cisco’s Message Brokering Approach Global ATP Server US Order Entry EMEA Order Entry CCO Data Server Message Broker (EIF) Down Stream Reporting Systems Worldwide Mfg Enterprise Reporting System Other Systems Summary Financial Impact Financial Contribution Customer Care • Headcount Avoidance • Software Distribution • Document Publishing $75,000,000 $250,000,000 $40,000,000 Internet Commerce • Headcount Avoidance $12,000,000 Supply Chain Management • Reduced Operating Cost • Increased Contribution 75,000,000 100,000,000 Employee Services • Online Hiring • Productivity Increase Total $8,000,000 $4,000,000 $550,000,000 + Agenda Today’s e-business is tomorrow’s business . . . l What is e-business? l Why e-business? l Case study l Oracle’s e-business solution framework Oracle e-business Solution Framework Strategic Business Intelligence Business Intelligence Operational Business Intelligence Operation Management (Finance, HR) Sales Customer Marketing Relationship Service Management Call Center Supply Chain Planning Supply Chain Management Supply Chain Execution i-platform Knowledge Management iBS ERP as a Tool of BPR Organizations can be viewed as a group of processes. FINANCE HUMAN RESOURCES PRODUCT FULFILLMENT Source Make CUSTOMER VALUE Market Distribute MANAGEMENT Service & Sell INFORMATION TECHNOLOGY Well designed processes enables seamless flow of resources Information Finance Material Technology Process Obstacles n People n Technology n Culture n Policies & Regulations Organization Culture Wall of Changes Process Enablers n People n Technology n Culture n Policies & Regulations Strategic IntelligenceManaging for Value Strategic Enterprise Management l l l Links Strategies to Operational Execution Drive Profitability Focus on Value Creation SEM Management Processes Strategic Planning and Implementation • • • • Balanced Scorecard Shareholder Value Assessment Capital Markets Assessment Enterprise Performance Indicators Integrated Budgeting and Forecasting SEM • Activity Based Budgeting • Forecasting/Planning Organizational Effectiveness and Measurement • Activity Based Costing • Target Costing • Product/Customer Profitability Compensation • Pay for Performance • Bonus Banking • Economic Value Added Balanced Scorecard Dashboard Cascading Scorecards KPI’s Reflect Strategy Cause and Effect Relationship Balanced Scorecard Drilldown Strategic Objective Multiple Dimensions KPI Criticality Organizational Understanding Cause Indicators: Effect Indicators: ABC Mapping the GL to Activities General Ledger Activities Resource Drivers Activity Based Costing Activity Rates Activities Drivers l Intuitive View of the Business l Understanding Product Profitability ‘True’ Product Cost Cost Allocation Understanding Profitability l l Elemental Analysis Cost Objects and their Drivers Integration of Strategic Processes 목표설정 활동원가 목표 EVA 목표 목표 EVA, CFROI VBM ABM 계획 및 예측 보상 생산활동 단위당 활동원가 주주가치계산 활동기준 제품원가 , 공정별 원가 비교를 통한 모니터링 평가 및 모니터링 Customer Relationship Management Revolution l l Internet is changing the way you do business – Attracting customers – Selling to customers – Servicing customers Companies must rethink how they conduct their businesses Evolution l l New technology redefines your customer relationships – One to One interactions – Mass customization – High-touch service and customer knowledge – Learning relationships Customers expect and demand more Defining A New Relationship l Maximize customer value l Make it easy to do business l Grow the relationships (Learning customers) Customer knowledge is your competitive advantage Customer Relationship Management l l Drive Topline Growth – Increase market penetration – Expand market focus to profitable areas Create Profitable Customer Relationships – l Upsell, cross-sell Maximize Customer Retention Disconnected Information Gives Only Partial View of Customer Sales force information Customer service Manufacturing/ inventory Market information Who is my customer? Order-entry Marketing database Integrate to Deliver the Customer Centric Enterprise l Win more customers l Keep best customers l Grow the opportunity l Open new markets Get a complete view of your customer Integrated CRM Applications iBS - Internet Business Strategy by i-discovery Executive Workshop Solution Value Assessment Understanding Internet Opportunity and Value Architecture Planning Develop Internet Architecture and Solution Direction “What we “We know should do?” what we want or to do, but we “Our e-business need to initiatives have justify it” not delivered value” e-business Vision Rapid Prototyping Implement Initial Internet Enabled Capability “We know what we want to do, but need help designing the business” “How do we get started?” or “We need to move fast” Solution Implementation Services Implement/Evolve End to End Internet Solutions “We have e-business today, but have outgrown our infrastructure” e-business Implementation Integrated Knowledge Management Architecture Internet Corporate Message Backbone (Intranet) Message DB Browser (any client) Integrated Meta Data Corporate Info/knowledge catalog Meta D. Data Mart ERP Meta D. EDW Meta D. E.A.I. Meta data Other cost center system Meta D. Document DB Meta data Legacy Outside source data Browser (any client) Integrated Knowledge Management An On-line Catalog that provides access to information in easy-to-understand business terms I would like to see all customer profile information Metadata n n Information Catalog n n n n n n n Business Information Directory Finance What Data Exists? Where is it Located? How is it Derived? What Format is it in? Who is Responsible for it? When was the Data Last Updated? What Tools can I use to Retrieve it? Does the Report I Need Already Exist? How Do I Initiate A Query? HR Marketing Customer Billing Products Corporate Information Capital, i.e. the Knowledge Asset E-business is not an option, it is new industry order. enable your e-business
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