DM Business Integration Rodney L. Joffe Chairman American Computer Group CenterGate Research Group, LLC rjoffe@centergate.com A business ‘truism’ It is easier to keep an old customer than to get a new one. “Stickiness” Consumer transactions: •Impulsive •Lower $ value The Killer App: Portals •Search engines •Free email services •Stock Quotes •News •Weather reports •Calendars •etc. etc. •WWW.com •Yahoo •Lycos •SNAP •c|net •Geocities Portals are not just about advertising and ad banners. Traditional web sites are moving towards a portal model to retain ‘viewers’. www.cars.com Traditional web site Links buyers and sellers of used cars Chat rooms Automotive news Road tests of new cars Syndicated services: News Weather Sports www.iSyndicate.com www.screamingmedia.com Transition Amazon.com Barnes & Noble PeopleSoft Business-to-Business Similar techniques, but higher $ value Significant effort into customer retention. Business-to-Business Not an impulse buy •Information •Support •Order “There is no data connection between customers and vendors” ERP Enterprise Resource Planning. No data ever gets entered more than once during it’s life… and There is only one system, spread across all of the companies in the commercial process. BAAN SAP ORACLE Bind your customer to you. •Downloadable order forms •Downloadable or electronic invoice and statement •Shipping URL •http://www.fedex.com/cgi-bin/track_it?airbill_list=791731879431& Create a secure interactive website that is linked to your existing business processes... •Accounts receivable •Production status •Payment via eft. •Order entry •Configurator List industry •Online counts -> •Online orders -> •Download -> •Bill Service Bureau •Counts •Order entry •Delivery •Billing •http://www.mailorder.com/clientaccess.cfm Ask your vendors to do the same for you! Consumer Integration examples GapKids--•gift reminder •profile management features •email newsletters BlueFly --•Make your own catalog “There are only 2 ways to create a sustainable competitive advantage: By increasing value, or decreasing costs.” Fred Gluck, Past Managing Director, McKinsey and Company. •Access to account •Keep in the loop like employees •Integrate workflow with yours •Tools to make dealing with you easy •Use technology DM Business Integration Rodney L. Joffe Chairman American Computer Group CenterGate Research Group, LLC rjoffe@centergate.com