ERP & E-Commerce, Charlotte NC, December 11+12, 1999
ERP & E-Commerce
New initiatives for the year 2000 and beyond
Bernd Heesen
Workshop on Information
Technology and Systems ‘99
http://www.utdallas.edu/~sumit/wits99/index.htm
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Evolution of Business
Enterprise Resource
Planning
Integration of
Business
Processes Reduces
Costs
Inter-Enterprise
Co-operation
e-Community
Collaboration
Cooperation Along
the Supply Chain
Improves Efficiency
Collaboration Within
Business
Communities
Creates Value
EDI: Electronic data interchange
EC = E-Commerce: Exchange of electronic data - on the
web
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Evolution from Integration to Collaboration
Enterprise Resource
Planning
e-Community
Collaboration
Inter-Enterprise
Co-operation
B2Consumer-Selling
B2B Procurement
B2B-Selling
Portals/
Communities
Industry
Solutions
Customer Relationship
Management
Employee Self
Service
Supply Chain
Management
ALE
Interfaces
Knowledge
Management
Internet
Business
Framework (BAPI)
XML-enabled
Business
Scenarios
Partnering
Platform
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Trends ? Why E-Commerce ?
 US E-Commerce Software market to grow from 1999=$619Mio to 2002=$3.760Mio by 100%/year
B2B potential is estimated at 41.4 trillion by 2003 - check.
Forrester Research, February/99
US Internet trade to rise from 1998=$43 Billion to 2003=$ 1.3 Trillion.
Forrester Research, December/98
“By 2001, 50% of enterprises will selectively outsource applications
management using a variety of traditional vendors, offshore providers, and staff augmentation firms (0.8
probability).”
Gartner Group External Service Providers Study, June, 1999
“Through 2003, new players will continue to enter the outsourcing market; however, consolidation will
accelerate as ASPs strive to obtain a larger scale, resources, global coverage, and niche or business process
expertise (0.8 probability).”
Gartner Group External Service Providers Study, June, 1999
Market Opportunity:
1998
1999
2000
2001
$90
$390
$1,880
$6,400(Millions)
“During the next five years the apps rental market will grow from a pittance to $6.4 billion, selling mainly to
the middle and low-end markets.”
“By 2001, rental revenue will still be growing at more than 200% annually, and apps rental providers will
account for more than 20% of total middle-market applications license revenue.”
Forrester Research February/98
“The ASP market will total $2.7B by end of 1999 and will reach $22.7B by 2003.”
Dataquest, 1999
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
ERP - Major Providers
Strategies for E-Commerce:
Oracle
JD Edwards
Baan
Peoplesoft
SAP
Oracle is a trademark from Oracle Corp.
J.D.Edwards is a trademark from J.D.Edwards Company
Baan is a trademark from Bann Inc.
Peoplesoft is a trademark from Peoplesoft Corp.
mySAP.com is a trademark from SAP AG
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Oracle
Headquarters: Redwood City, CA
Traded on NASDAQ as “ORCL”


1998 revenues: $8.8 Billion
1998 earnings: $1.3 Billion
Core ERP Systems:


Oracle Applications 11, “fully Web-enabled” enterprise applications
Now only supports browser-based clients with new releases. Will stop supporting
client/server architecture by1Q 2000
Internet Strategy:
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Early bet in internet technology - “the internet changes everything”
Become a comprehensive E-commerce products and services provider
Become leading ASP provider (Business Online), only ASP for Oracle, expected 50%
revenue in few years,
Ellison: “One day in the not-too-distant future, all software companies
Supply Chain Management (iSCM) and Customer Relationship Management (CRM V3i)
Online trading community:

Oracle Exchange: Internet-based open marketplace for B2B commerce. Currently 300
registered suppliers.
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
J.D. Edwards & Company
Headquarters: Denver, Colorado
Traded on NASDAQ as “JDEC”


1998 revenues: $934 million
1998 earnings: $75 million
Core ERP Systems:


Browser based OneWorld (June release) multiplatform client/server
WorldSoftware AS/400 mainframe (“green screen”)
Internet Strategy:
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Partnering with “best-in-class” providers: Siebel, Ariba
Buying small companies with key offerings: Numetrix
Emphasis on personalization, ease of use, ease of reconfiguration
ActivEra portal
Partnering for Customer Relationship Management (Siebel)
Supply Change Management (E-Procurement)
Partnering with ASP
XML support for cross-platform B2B:

Microsoft Site Server 3.0 (ActivEra portal)

Microsoft BizTalk (XML) support planned
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Baan
Headquarters: Barneveld, the
Traded on NASDAQ as “BAANF”


Netherlands
1998 revenues: $736 million
1998 earnings: -$315 million
Core ERP Systems:
 BaanERP (the successor to Baan IV)
 Supply Chain optimization is core strength, but they have full suite of ERP products
Internet Strategy:
 E-Enterprise



E-Sales = Supply Chain Management
E-Collaboration = Customer Relationhip Management
E-Procurement: Operating Resource Management


Base ERP NOT internet enabled
XML support for cross-platform B2B:

Microsoft Site Server 3.0 compliant

Microsoft NetMeeting included in E-Collaboration
E-Enterprise - General

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Less intrusive (no portals)
Microsoft 2000 compliant
XML-based
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Peoplesoft
Headquarters:
Pleasanton, CA
Revenue/Profit:

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1998 revenues $1.3 billion
1998 earnings $143 million
Core ERP system:

A minor upgrade was released last spring with new HTML and Web deployable Windows clients. The
next major release, PeopleSoft 8 due mid-2000.( support XML for B2B)
Internet Strategy:

Developing line of ebusiness products and buying or partnering with other specialized software vendors to provide industry
specific solutions:
Partnered with PWC to develop ebusiness solutions for the insurance industry
Alliance with Descartes Systems Group to optimize customer fulfillment for food and beverage companies
PeopleSoft e7.5
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eBusiness Backbone: Linking Web and Back Office
Customer orders product on web site, all transactions are entered in the ERP system automatically without additional data entry. Customers can
check availability, order status, etc.
Enterprise Performance Management: business analysis tool
eCommunities – link people, content and commerce. Supports key business processes: Online procurement, benefits, travel and expense, etc.
Operating Resource Management

eProcurement – Provides single interface for all types of materials, repairs, operations purchases

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Delivers a complete catalog of available items from approved suppliers to each desktop
Allows for global collective buying

Customer Relationship Management

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Purchased CRM technology from Vantine Corp. to integrate within other PS programs
Portals and Trading Communities:

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Enterprise Portal – similar to mySAP.com
eMarketplace - allows organizations to sell products to businesses and consumers

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Integrated with eBackbone and enterprise performance management system
Provides sales, customer self-service, product marketing, order fulfillment, business analysis tools
**Neither appear to be currently available
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
SAP
Headquarters: Walldorf, Germany
Traded on NASDAQ as “SAP”
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1998 revenues: $4.4 billion
1998 earnings: $547 million
Core ERP Systems:

Browser based ERP: SAP R/3 4.6
Internet Strategy:

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Third parties for Application Hosting (EDS ...)
personalization

allow users to launch applications and business processes without leaving their browser
environment

role based (150 delivered standard roles)
mySAP.com portal:
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mySAP.com Marketplace
“one-step business” anytime, anywhere, with anyone
collaborative components such as a business directory, document exchange, and RFP and RFQ matching; content
and community components such as horizontal and vertical business communities
Marketplace is open to anyone, SAP customer or not

Supply Chain Management:
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Operating Resource Management (ex: office supplies):
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SAP Business-to-Business Procurement facilitates all the processes associated with the procurement of maintenance, repair and operating
supplies (MRO) goods and services
Customer Relationship Management:
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designed to enable exchange of required planning information with business partners
five customer relationship management (CRM) applications are due in mid-December
includes software for automating field sales and service operations, plus a call center management system and packages for selling products
online and letting customers check the status of orders via the Web
XML support for B2B
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Supply Chain Mgt.
Procurement
Web-hosting
XML support for crossplatform B2B
Online Customer
Relationship
Management
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X
X
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X
X
X
X
X
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X
X
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Trading Community
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Overview
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
mySAP.com overview
Personalized Solutions on Demand Collaborative
•
• Personalized
•
(EnjoySAP
design)
• Role definition
• Single point of •
•
access to all
internal and
external services
• Mini
Applications
• Drag & Relate
Industry Focus
Integrated end-to-end
business processes
(Supply Chain)
Knowledge Management
Customer Service
Management
• Community (20
industry + 3
vertical forums,
chat rooms)
• Content (External
Services e.g.
news, stocks)
• Commerce
(Business
directory ...)
• Collaboration
(One-step
Business)
• Appl. Hosting
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Marketplace: One Stop Business
Allows companies linked to each other in a supply chain to pass on the requirements of their incoming
orders to their suppliers without the presence of another organization. In a network of appropriately
equipped vendors the ERP together with SCM could select the partners themselves using agent
technologies. (still requires bilateral agreements between trading companies)
• Buy and sell products and services directly on the mySAP.com Marketplace.
materials
Auction off surplus
• Collaborate with suppliers on planning, forecasting, and meeting customer demand needs
(Collaborative forecasting).
• Broadcast or bid on requests
for proposals (RFPs).
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
mySAP.com Business Scenarios
SAP Employee Self Service (4Q95)
SAP Business Information Warehouse 2.0 on the
Web (4Q99)
Business-to-Consumer Selling (4Q96)
SAP Knowledge Management (3Q99, InfoDB3
available)
Business-to-Business Procurement (1Q99) and
Selling (4Q99)
Additional EnjoySAP and web-based applications
with Release 4.6C
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Application Hosting along the lifecycle
Evaluation
Implementation
We Host Your
Solution Online
Test Drive Your
Solution Online
We Implement Your
Solution Online
Compose Your
Solution Online
SAP
Continuous Improvement
Partners
• Financial
Application
Services
• HR
Application
Services
SAP & Partners
We Build Your
Business Community/
Marketplace Online
• Industry Focused
Marketplaces
•Enterprise-specific
Marketplaces
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Application Hosting Types
Application Service Provider (ASP)
 The client delegates all or a major portion of an operation or function
to a vendor (Apps Hosting Provider) in a long term relationship (>1
year). Apps hosting partner owns hardware and processing. Per
user/per month charge to client.
Application Management Outsourcing (AMO)
 Like ASP but Customer owns hardware and processing. Per user/per
month charge to client.
Business Process Outsourcing (BPO)
 The client delegates all or a major portion of an entire business
function to a vendor (Apps Hosting Provider) in a long term
relationship (>1 year) (e.g. handling procurement of all non production
goods). Apps Hosting Provider has license.
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Application Hosting: Benefits


Easy ERP. Outsourcing makes ERP simpler. The alliance is a new
approach that allows companies to obtain the advantages of ERP
without the risk, concern, or complexity they associate with ERP.
Frees IT. Outsourcing allows CIOs to achieve their goals for ERP.
They don't have to get involved in ERP implementation and can focus
their time and staff on other strategic initiatives.
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Cost-effective. Outsourcing alliance partners know our industry and are
flexible and concerned about cost issues. Outsourcing allows mid-size
companies to:
Obtain a world class ERP package they thought they could not afford
Reduce initial capital investment while obtaining the latest technology
Reduce personnel costs, hiring, training, retention, etc.
Don't need personnel for DB administration, OS administration, Basis
admins, SYSOPS, etc. (cost reducers)
Provide predictable TCO for ERP applications
Provide known ongoing production costs
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
References mySAP.com
Lockheed Martin Missiles and Fire Control, USA
"We believe that we can easily achieve significant cost and cycle-time
reduction whenever we are able to build a network with the customer,the
suppliers, and ourselves in a real-time collaborative environment.SAP B2B
has allowed us to create the best procurement model for the future of our
company and our corporation and is a critical tool toward building that
real-time partnership environment with our customers." Bob Proffitt,
Manager of Sourcing and Business Development, Lockheed Martin Missiles and
Fire Control, USA
FC Bayern Munich e.V., Germany
"Thanks to the mySAP.com solution and taking up e-commerce, our
merchandising activities have become more efficient and customer-friendly.
Our fans receive their merchandise even quicker, and our customer service
has improved noticeably. We´ve put our merchandising on a Champions League
level. If we're going to adopt e-business, then we're going to do it
right." Uli Hoeneß, Manager, FC Bayern Munich e.V., Germany.
Check out the full story at http://www.sap.com/mysap/
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
mySAP.com for Universities
Besides e-mail, shopping, and information (traditional use of
the Internet)
What Do Web Users Want In The Way Of New Internet
Services?
The number two service AOL subscribers indicate they
want in future (69% so indicating) "Taking Online
Courses” at colleges/universities.
AOL Survey reported in 12/8/99 BUSINESS INVESTORS DAILY
p. A12).
ERP & E-Commerce, Charlotte NC, December 11+12, 1999
Prescient Consulting, L.L.C.
Implementation Partner
Focus:
Public Sector Higher Education,
Supply Chain Management (Retail, AFS, CPG)
Human Resources
Contact: Two Concourse Pkwy., Suite 275
Atlanta, GA 30328, U.S.A.
Bernd Heesen
Phone: (770) 350-1860 Ext. 3351
www.prescientconsulting.com
e-mail: bernd.heesen@prescientconsulting.com