E-Commerce and New Product Development
Dr. Raj Veeramani
Director, Consortium for Global Electronic Commerce
University of Wisconsin-Madison
1513 University Avenue, Madison WI 53706-1539
Tel: (608) 262-0861 Fax: (608) 262-8454
raj@engr.wisc.edu
http://www.cgec.org
© 2000, Dr. Raj Veeramani
The Consortium Architecture
Application Context
Organizations Interested
in Adopting E-Commerce
Holistic, Non-Commercial, Experiential,
Collaborative Learning Environment
Multi-disciplinary Team
of Faculty/Students
Comprehensive Knowledge &
Research on Next Generation Systems
© 2000, Dr. Raj Veeramani
Industry Experts in E-Commerce
Development & Implementation
Commercial Technologies and
Practical Experience
The Consortium Learning Environment
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Holistic -- A comprehensive perspective
Non-commercial -- Focus on education
No Sales Pitches
here please...
Collaborative -- Work as a team
Experiential -- Learn by doing
Operations & Information Management
Mechanical Engineering
Marketing
Industrial Engineering
Multi-Disciplinary
Faculty/Student Team
Consumer Science
Computer Sciences
Library & Information Studies
© 2000, Dr. Raj Veeramani
Accounting
Law
Electrical Engineering
Civil & Environmental Engineering
Meeting the Needs of Different Constituencies
Learn
about the state-of-the-art and next
generation technologies, business
models and organizational practices
“Getting Started” Group
Transfer
best practices and lessons learned
regarding EC challenges with a network
of peers experiencing similar challenges
“Crossroads” Group
Create
“Leaders & Innovators” Group
© 2000, Dr. Raj Veeramani
next generation EC technologies and
practices through collaborative research
Member Companies
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American Family Insurance
American TV & Appliance
Andersen Consulting
Arthur Andersen
Brady Corporation
Case New Holland
Cook & Franke
Credit Union Executive Society
Credit Union National Association
CUNA Mutual Group
Deutch & Weiss
Endries International
Foley & Lardner
Graber Products
Grant Thornton
Hufcor
Inacom Information Systems
Ingersoll Cutting Tool Company
© 2000, Dr. Raj Veeramani
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Kraft Foods
LaFollete Godfrey & Kahn
Lands’ End
Madison Newspapers Inc.
Marshall Erdman & Associates
Michael Best & Friedrich
Optavia Corporation
Rayovac
Rockwell Automation
Rural Mutual Insurance
Sargento
The Swiss Colony
The University Book Store
von Briesen Purtell and Roper
Wisconsin Manufacturers &
Commerce
WI Manufacturing Extension
Partnership
Types of Consortium Activities
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Symposia & workshops on critical issues -- led by experts from
industry and academia
Members Networking forums
Member Work Groups – multicompany collaborative learning
Insightful weekly newsletter
Benchmarking and surveys of performance metrics, trends, best
practices, and lessons learned
Resourceful web site (educational materials, case studies, reports)
E-Community: Discussion forum and Ask-an-Expert capabilities
Industry-based faculty-student team projects
Multi-company collaborative projects and experiments
Research to enable next generation E-Commerce
Convenient and early access to students for internships & jobs
© 2000, Dr. Raj Veeramani
Classification of E-Commerce
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E-Commerce technologies and practices in industry can be viewed in
terms of how they affect interactions between:
Business-to-Consumer
Intra-Business
Business-to-Business
Consumer-to-Consumer
© 2000, Dr. Raj Veeramani
Business-to-Consumer
© 2000, Dr. Raj Veeramani
Business-to-Business
© 2000, Dr. Raj Veeramani
Intra-Business (e.g.,Collaborative Product Development)
Product Life Cycle Management
• Updating Change Order
Product Life Cycle Management
• Assembly Modification
• Change Cost Estimation
• Change Review
• Change Solution Approval
• Design Proposal Review
• New vendor Approval
© 2000, Dr. Raj Veeramani
Rationale for
Change
Impact
Revision
Number
Consumer-to-Consumer
© 2000, Dr. Raj Veeramani
E-Commerce goes beyond online transactions
It transforms the business itself
© 2000, Dr. Raj Veeramani
E-Business Evolution in Manufacturing Industry
• Web Presence
• Product Configuration
• Online Product Info
• Collaborative Design
• Online Selling, Direct
Marketing
• B2B Commerce
Marketing, Selling,
Customer Service
© 2000, Dr. Raj Veeramani
Design, Manufacture
and Distribution of
products
Traditional Business Model
Customer
Marketing
& Sales
Human Resources
Demand Management and Communication
Engineering
Procurement
Manufacturing
Logistics
INTEGRATED ORGANIZATION
© 2000, Dr. Raj Veeramani
Future Organization
Customers
Core Competency &
Supplier
Current Capabilities
Procurement
Logistics
Human Resources
Engineering
Manufacturing
NETWORK IS THE ORGANIZATION
© 2000, Dr. Raj Veeramani
E-Business Evolution in Manufacturing Industry
• E-Communities
• Aggregators
• Web Presence
• Product Configuration
• Online Product Info
• Collaborative Design
• Online Selling, Direct
Marketing
• B2B Commerce
Marketing, Selling,
Customer Service
© 2000, Dr. Raj Veeramani
Design, Manufacture
and Distribution of
products
• Life Cycle View where
service dominates
product
• Multi-attribute,
Multi-level
Cascading Auctions
Dynamic and
On- Demand
Scalable Enterprise
Internet-enabled Product Development
Key characteristics:
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Mass-Customization & Personalization of Products & Services
Quick Response & Negotiated Pricing
Demise of Traditional Intermediaries & Rise of Cybermediaries
Business Intelligence & Corporate Learning
Communities
Blurring between Product and Service Oriented Industries
© 2000, Dr. Raj Veeramani
Entire Product Development Framework
Product Simulation
Test
Product
Design
Product
Concept
Customer
Requirements
Source: SDRC
© 2000, Dr. Raj Veeramani
Part &
Product Detailing
Manufacturing,
Tools & Plans
Production
Product
Maintenance
Knowledge Management in PTC/Windchill
•Document Management & Vault
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Folder Browsing & Search
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Check-in/Check-Out
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File Content Handling
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Version Control
•Lifecycle Management
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Phase and Gate Definition
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Notification Policies
•Process Automation
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Graphical Process Definition
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Task Participation
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Monitoring and Reporting
•Security and Access Control
Source: PTC
© 2000, Dr. Raj Veeramani
Evolution from Visualization to Collaboration
Collaboration Type
Exchange Ideas
and Knowledge
VPDM
Active
Design Team
Member
PDM
Exchange Data
and Files
Asynchronous
Source: Gartner Group
© 2000, Dr. Raj Veeramani
Synchronous
Connection Type
Leveraging Design Competency & Knowledge
Drawings
PDM
3-D Models
Productization Process
Knowledge
Design Behavior
Source: SDRC
Design Knowledge
Innovation Process Knowledge
© 2000, Dr. Raj Veeramani
VPDM
Windchill Enterprise Product Modeling
Leveraging
data across
the extended
enterprise
Pro/I/P
CDM/VPM
IMAN
EDA
SW
etc.
Source: PTC
© 2000, Dr. Raj Veeramani
MS Office
Catia, UG
AutoCAD
TechPubs
etc.
Quickparts.com
© 2000, Dr. Raj Veeramani
QuickQuote:
© 2000, Dr. Raj Veeramani
How It works
QuickQuote:
© 2000, Dr. Raj Veeramani
How It works (Contd.)
QuickQuote:
© 2000, Dr. Raj Veeramani
How It works(Contd.)
QuickQuote:
© 2000, Dr. Raj Veeramani
How It works(Contd.)
SupplierOne.Com
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy?
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
SupplierOne.Com - How to Buy? (Contd.)
© 2000, Dr. Raj Veeramani
ProtoMarket.Com
© 2000, Dr. Raj Veeramani
Bits2Parts.Com
© 2000, Dr. Raj Veeramani
© 2000, Dr. Raj Veeramani
Online Auction and Procurement
• FreeMarkets Online:
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Conducts online
auctions for industrial
parts, raw materials,
commodities and
services
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Suppliers compete in
real time for the
purchase orders of
large buying
organizations by
lowering their
prices until the
auction is closed
http://www.freemarkets.com
© 2000, Dr. Raj Veeramani
e-Business Strategic Value
Source: GartnerGroup
© 2000, Dr. Raj Veeramani
Bottom line:
Why should your company care about E-Commerce?
You can become a formidable competitor because
E-Commerce allows you to change the rules of the game.
See You Guys….
© 2000, Dr. Raj Veeramani
For more information:
http://www.cgec.org
(608) 262-0861
raj@engr.wisc.edu
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy?
Step 1: Site Security
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 2: Member Login
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 3: Submit RFQ 1
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 4: Submit RFQ 2
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 5: Transaction Center
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 6: Quote Detail
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 7: Virtual Conference
© 2000, Dr. Raj Veeramani
ProtoMarket.Com – How to Buy? (Contd.)
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Step 8: Execute Transaction
© 2000, Dr. Raj Veeramani