DELIVERABLE 2.5 Integration and synthesis report CONTRACT N° : G1RD-CT-2002-00698 ACRONYM : e-Volution II TITLE : Roadmap for e-business implementation in Extended Enterprises PROJECT CO-ORDINATOR : Otto-von-Guericke Universität Magdeburg PARTNERS : Mobile Business and Innovative Solutions GmbH Investitionsbank Hessen AG F.A.Z.-Institut für Management-, Markt- und Medieninformation GmbH Cybion Srl ALTEC S.A. TEC Consultants S.A. WINI Büromöbel Goerg Schmidt GmbH & Co. KG Veyhl GmbH Graphicolor Srl Plastifoto Srl Vision Srl EMEC Srl DOCUMENT ID.: G1RD-CT-2002-00698_d2-5_v2 DOCUMENT STATUS: revised, under review CLASSIFICATION : confidential PROJECT START DATE : May 2002 DURATION : 36 months Date of issue of this report : May 2004 Project Funded By The European Community Under The ‘Competitive And Sustainable Growth’ Programme (1998-2002) Università Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Table of content 1 Introduction ................................................................................................................................................. 4 1.1 TASK OBJECTIVES ...................................................................................................................... 4 1.2 TASK APPROACH ........................................................................................................................ 4 1.3 EXPECTED RESULTS ................................................................................................................... 5 2 e-business road mapping MOdel Design ............................................................................................. 6 2.1 METHODICAL APPROACH ............................................................................................................ 6 2.2 TECHNICAL APPROACH ............................................................................................................... 7 3 Integration and synthesis ........................................................................................................................ 9 3.1 EXTENDED ENTERPRISE E-BUSINESS STRATEGY DEFINITION ......................................................... 9 3.1.1 E-business strategy development ..................................................................................................... 9 3.1.2 E-business roadmap development ................................................................................................. 19 3.2 CONTENT OF THE E-BUSINESS ROAD MAPPING MODEL ................................................................ 21 4 Conclusions and outlook ....................................................................................................................... 23 Annex 1: Glossary ........................................................................................................................................... 24 Annex 2: e-business Checklists .................................................................................................................. 26 E-BUSINESS RELEVANCE FOR AN ORGANISATION ............................................................................... 26 RELEVANCE OF E-BUSINESS APPLICATIONS FOR AN ORGANISATION..................................................... 27 Annex 3: Example for cost-benefit-analysis template ........................................................................... 30 Annex 4: Documentation of the integrated e-business road mapping model (model report) .... 31 © The e-Volution II consortium page 2 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Table of figures Figure 2-1: Generic process description model based on IEDF0....................................................... 6 Figure 2-2: e-volution’s process description model............................................................................ 6 Figure 2-3: Overview of ARIS model element attributes .................................................................... 8 Figure 3-1: Handling of identified SWOTs ....................................................................................... 10 Figure 3-2: SWOT-matrix concept ................................................................................................... 10 Figure 3-3: e-business strategy matrix ............................................................................................ 12 Figure 3-4: Implementation strategies ............................................................................................. 13 Figure 3-5: e-business goal description template (basic)................................................................. 14 Figure 3-6: The four e-business application fields ........................................................................... 16 Figure 3-7: e-business activity matrix .............................................................................................. 18 Figure 3-8: Hoshin matrix chart ....................................................................................................... 18 Figure 3-9: e-business implementation BSC ................................................................................... 19 Figure 3-10: e-business roadmap example #1 (single organisation view) ....................................... 20 Figure 3-11: e-business roadmap example #2 (partner view) .......................................................... 20 Figure 3-12: e-business roadmap example #3 (E2 view)................................................................. 21 Table of tables Table 2-1: Summary of used ARIS tool set models and objects ........................................................ 7 © The e-Volution II consortium page 3 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 1 INTRODUCTION 1.1 Task objectives The mission of the e-volution project is to design and develop a leading methodology and supporting tools that support the implementation of e-business in an Extended Enterprise. E-business, enabled by the use of information and communication technologies (ICT), is one of the describing characteristics of an Extended Enterprise and the basis for inter-enterprise business process integration. Evolution aims to reduce the complexity, costs and risks of e-business implementation to support SMEs in the process of establishing an Extended Enterprise. E-volution develops and validates an innovative, application-oriented and practicable methodology and a set of supporting tools. It is expected to bring benefits to the user in terms of savings in efforts and costs in e-business projects. The aim of WP 2 is the development of the methodology concept for e-business implementation in Extended Enterprises. The design of the concept defines the basic structure of the project’s methodological approach by identifying the parameters of its underlying methodological framework and by describing its overall architecture, its thematic modules, its processes of information flows, and its transfer into a software tool of decision support in the scope of e-business road mapping. This methodology has to be a systematic procedure that defines the mode of operations for the development of strategic e-business roadmaps for e-business implementation in Extended Enterprises. The target is to provide the conceptual foundation and requirements for the software tool development in WP 3. The aim of Task 2.5 is the integration of the results of the two analysis approaches of Task 2.2: Conceptual design of market approach and Task 2.3: Conceptual design of the organisation approach together with the process dynamics of Task 2.4: Rules mechanisms and update routines into an e-business implementation roadmap for Extended Enterprises. 1.2 Task approach The revision of the integration concept bases on the revised organisational and market approaches as well as its process dynamics. The results of the organisational and market “black box” specifications are integrated into the e-business road mapping model of Task 2.1 and their synthesis in terms of e-business strategy and roadmap definition is realised. Within the course of Task 2.5 the following work is done: transfer and integration of the organisational and market approach into the e-business road mapping model; definition of model elements, attributes, conventions, and constraints; work-flow modelling inside the e-business road mapping model. The innovative aspects of this approach are the systemisation and formalisation of the e-business strategy and roadmap development process in a e-business road mapping model by the use of business process modelling concepts and tools, e.g. Stage-GateTM 1 concept and ARIS (ARchitecture of Integrated information Systems) Toolset2. For the process model design, the following activities have to be done: formalisation of the ebusiness road mapping model, specification of a modelling syntax, semantic and conventions, definition of model elements, integration and linkage of model elements into the model architecture, and the vertical and horizontal design of the e-business road mapping model. 1 Stage-Gate Inc. specializes in providing knowledge-based products and services to help companies maximize the value of their new product development initiatives. 2 Commercial process reengineering tool set by IDS Scheer AG, Germany. © The e-Volution II consortium page 4 Deliverable 2.5 (revised) 1.3 Integration and synthesis G1RD-CT-2002-00698 Expected results Task 2.5 results in the preliminary conceptual design of one of the cornerstones of the e-volution methodology – the e-business road mapping model for the e-business strategy and roadmap development process in an Extended Enterprise. Preliminary conceptual design means the overall functional model specification of the operational e-business road mapping process. This is regarded as sufficient for to obtain verifications and approval for the ongoing detailed model design. The preliminary model is expected to be the beginning of an ongoing process of reviewing, updating and extending the e-business road mapping model, resulting in advanced e-business road mapping model(s). The detailed model design is a result of model application in practice and integration of knowhow, experiences and new innovative solutions in terms of model tuning, update, advancement, and redesign. The case specific application of the e-business road mapping model is an instantiation of the generic e-business road mapping model. The innovative aspects of this approach are the systemisation and formalisation of the e-business strategy development process in an e-business road mapping model, open for use case specific instantiation and the application of the Stage-GateTM concept. The use of the ARIS Toolset is to bring benefits in terms of better user understanding and higher user acceptance for the model, easier model navigation, use and transfer. © The e-Volution II consortium page 5 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 2 E-BUSINESS ROAD MAPPING MODEL DESIGN Based on the conceptual design of the organisational and market approaches, the integration of these concepts into the e-business road mapping model and the synthesis of the organisational and market approach outputs is done. As we are talking about a process model, process modelling methods and instruments are used. 2.1 Methodical approach The applied modelling approach is based on the specifications made in Task 2.1. The kind of process description we use is in the style of IDEF0, addressing all the input, resources and mechanisms, constraints, and the output. Constraints Inputs Activity Outputs Resources Figure 2-1: Generic process description model based on IEDF0 There can be further views on a business process, e.g. organisation, utilities. The e-volution process model specially integrates the organisational view (activity owner and responsible) and the goals as basis for the processing of an activity. Goals Constraints Activity Supplier Inputs Activity owner Outputs Customer Resources Figure 2-2: e-volution’s process description model The vision of e-volution’s e-business road mapping model is to become a reference process model. A reference process model is a formal, standardised description of management processes. It provides a framework of relationships among the standard processes and standard metrics to measure process performance, management practices, and standard alignments to software features and functionality. Reference processes/tasks/activities describe what experts do in a specific context. Reference knowledge describes and catalogues methods, tools, databases, etc., which experts use in the context of reference processes/tasks. Reference processes/tasks/activities and knowledge constitute reference items formalised in a generalised and modular manner, so as to be reused by users, according to their specific needs. The design aim of process reference models is (re)configurability. Once a process is captured in standard process reference model form it can be implemented purposefully to achieve competitive advantage, described unambiguously and communicated, measured, managed, controlled, and tuned and re-tuned to a specific purpose. © The e-Volution II consortium page 6 Deliverable 2.5 (revised) 2.2 Integration and synthesis G1RD-CT-2002-00698 Technical approach The design of a process model has to follow a systematic approach in order to ensure the quality and reliability of the process model. The linkage between the model elements is realised by the output/input relationships. An output of one model element is input for one or more following model elements. The linkage of the model elements is specified by logical rules (and, or, and either/or). The integration of the single model elements and their logical connection finally describes the e-business road mapping model. A methodical and professional way to do the integration job is the use of methods and instruments from the business process modelling field. As stated in e-volution project Deliverable 2.1, we use the ARIS Toolset by IDS Scheer AG for this. The ARIS tool set provides numerous modelling methods for specific modelling aims. The following table gives an overview of the use methods and its objects. e-Volution model ARIS model view ARIS modelling method ARIS model objects Level 1 Function view Process selection matrix Process Value added chain diagram Process Function tree model Function Function allocation diagram Function Event-driven Process Chain (EPC) -> used Functions From Level 2 on Function view Event Rules Application system type Module type Data view (optional) Entity Relationship diagram Entity type Relation type Attribute UML diagram Specific UML-model object for model method Organisation view (optional) Organisational chart Organisational unit Control view Event-driven Process Chain (EPK) -> used Job Person integration of all functional, data and organisational objects Table 2-1: Summary of used ARIS tool set models and objects The catalogue of modelling methods of the ARIS tool set enables the further detailing of the process elements down to the activity level. The advantage of a tool support is the demand-oriented detailing and aggregation of the system view. The activity level describes the partial, company specific business operations. The ARIS process model enables either the integration of existing operational model with its different views or the conceptual design of business operations for transfer into work process description or IT-system specifications. For the description of the model elements, a common set of standard ARIS model attributes is used for. © The e-Volution II consortium page 7 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Figure 2-3: Overview of ARIS model element attributes The relevant object attributes are: − Name: The name specifies the model object and allows its clear identification. − Identifier: The object identity is defined automatically and enables the clear identification of model objects. − Description/Definition: The definition specifies the aim and purpose of the object in a general manner. − Remark/Example: Here we are free to introduce five general performance attributes. The performance attributes and the corresponding metrics are for qualitative and/or quantitative assessment of activity (function) results. Time: Assessment of the results of model element processing under time-related aspects. Cost: Assessment of the results of model element processing under cost-related aspects. Quality: Assessment of the results of model element processing under product/service quality-related aspects. Flexibility: Assessment of the results of model element processing under flexibility-related aspects. Reliability: Assessment of the results of model element processing under reliability-related aspects. Further model attributes can be added in alter version if there is a deriving need. The model structure is open for that. © The e-Volution II consortium page 8 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 3 INTEGRATION AND SYNTHESIS e-Volution will derive the basic pillars of an e-business strategy and translate it into an e-business realisation plan – the e-business roadmap. The underlying e-business road mapping model enables the goal and future oriented planning and realisation of e-business in Extended Enterprises. The market and organisation approaches were specified in the belonging technical deliverables D2.2: Report on market approach module and D2.3: Report on organisation approach module. The Annex 2: e-business Checklists provides additional generic checklists in the context of qualitative internal and external analysis. Based on these specifications and outputs, the integration and synthesis in the sense of e-business strategy and road map development is done. The integration and synthesis approach is, like the thematic approaches, a − generic; − conceptual; − workshop-based; − instantiated for individual purposes; − software-tool supported approach. 3.1 Extended Enterprise e-business strategy definition The obvious input to any e-business implementation is a well-developed e-business strategy. An ebusiness strategy has to answer several questions: How is e-business affecting my industry? How are my competitors leveraging e-business? How can we use e-business to better serve customers? What business capabilities are required to provide additional user value by doing e-business? An e-business strategy spans several initiatives, each of which requires several e-business projects to fully implement. The e-business strategy is the driving force behind the development of the ebusiness roadmap. The e-business roadmap finally details a series of initiatives and projects to achieve the business results defined by the e-business strategy. The synthesis concept is the theoretical basis for final e-business strategy and roadmap definition, based on the input data and information the previous market and organisation approaches. It provides a structured approach as guideline for management activities. Like the overall methodology concept, it does not claim to be the only solution approach. 3.1.1 E-business strategy development In the context of e-business strategy development, numerous integrated planning methods and instruments already available and can be used. 3.1.1.1 E-business SWOT-analysis The Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis is used within the e-volution methodology concept as a central element to devise a set of e-business strategies. The SWOT analysis provides information that is helpful in matching the organisation's resources and capabilities to the competitive environment in which it operates. As such, it is an instrument in strategy formulation and selection. SWOT analysis is used in e-volution as it is a commonly accepted management method, easy and efficiently to handle also for SMEs. SWOT-analysis enables the generation of specific strategic alternatives for further assessment and selection. The SWOT-matrix is a widely used strategic planning matrix. Basis for the SWOT-matrix © The e-Volution II consortium page 9 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 are the organisation’s strengths, weaknesses, opportunities, and threats that were analysed before in the market analysis (external audit) and organisation analysis (internal audit) as inputs and the corporate Extended Enterprise business mission, goals and model as constraints. The SWOTanalysis can be done in different, extensive ways. Use of chances by strengths Strengths Weaknesses Reduce weaknesses or change into strengths Opportunities Threats Minimise or avoid threats Figure 3-1: Handling of identified SWOTs Only the combination of internally (by organisation approach) and externally (by market approach) focussed analyses and audits provides trendsetting information for the e-business strategy definition. The SWOT-analysis captures relevant factors and makes an evaluation of these factors. The aim of the SWOT-analysis is to devise a set of strategic options for further detailing and assessment. SWOT-analysis is matching of specific internal and external factors, which creates a strategic matrix. The internal factors are within the control of the organisation; the external factors are out of the organisation's control. The Strengths-Weaknesses are defined based on the results of the organisation’s internal (organisation) analysis; the Opportunities-Threats are defined based on the results of the organisation’s external (market) analysis. Common and best practice for running a SWOT-analysis is a moderated workshop session. Strengths Weaknesses List of strengths (1 .. n) List of weaknesses (1 .. n) Opportunities S/O strategies and goals W/O strategies and goals List of opportunities (1 .. n) List (1 .. n): Consolidation of strengths to realise opportunities List (1 .. n): Overcoming of weaknesses by realisation of opportunities Threats S/T strategies and goals W/T strategies and goals List of threats (1 .. n) List (1 .. n): Consolidation of strengths to avoid threats List (1 .. n): Overcoming of weaknesses and avoidance of threats Figure 3-2: SWOT-matrix concept For each matching combination of Strengths-Weaknesses-Opportunities-Threats, strategies and functional goals, in accordance with the higher-level business goals and strategic measures of how to realise these goals, must be defined. © The e-Volution II consortium page 10 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 3.1.1.2 E-business strategy and goal definition Development of strategy options Based on the results of SWOT-analyses, e-business strategy options which aim at the elimination of the weaknesses, the development of strengths, the take-up of opportunities and the facing of threats are defined, to add value form the organisation internal and external point of view. Strategy definition is the combination of strategic measures that define of how to reach functional goals and benefits in the light of the underlying factors. A strategy defines the measures that have to be taken in order to achieve defined goals. It is an instrument to achieve sustainable and competitive development of n organisation. An e-business strategy, as an element of the organisation’s overall strategy, is the mid-/long-term - depending from the turbulence of developments in organisation environment - orientation of an organisation taking the external market and competitive conditions, available resources and competences into account. There are different kinds of basic strategies as a result of the S-W-O-T matching: The S/O combination shows the organisation's strengths and opportunities. In essence, an organisation should strive to maximise its strengths to capitalise on new opportunities. Strategies and goals are assigned that consolidate the strengths to realise opportunities. The S/T combination shows the organisation's strengths in consideration of threats, e.g. from competitors. In essence, an organisation should strive to use its strengths to parry or minimise threats. Strategies and goals are assigned that consolidate the strengths to avoid threats. The W/O combination shows the organisation's weaknesses in tandem with opportunities. It is an exertion to conquer the organisation's weaknesses by making the most out of any new opportunities. Strategies and goals are assigned that help to overcome weaknesses by the realisation of opportunities. The W/T combination shows the organisation's weaknesses by comparison with the current external threats. This is most definitely defensive strategy, to minimise an organisation's internal weaknesses and avoid external threats. Strategies and goals are assigned that help to overcome weaknesses and avoid risks.3 The e-business strategy options define the principle direction of impact to implement e-business in an organisation. The e-business strategy depends from the market requirements and organisation’s opportunities. The e-business strategy is the basis for the definition of measures for its realisation. A supporting instrument in this context is e.g. the e-business strategy matrix, Figure 3-3. The general matrix shows that there are classes of e-business concepts: − left side: concepts which are intended to reduce cost and achieve greater operational efficiency. − right side: concepts which are intended to increase revenue and expand markets. − on the lower half: tactical applications which have relatively low risk. − upper half: mission critical applications which are intended to create and dominate markets. The typical development process starts with “e-business support processes”. This involves automation of existing internal processes, replacing paper transmissions with electronic equivalents. Representative applications in this quadrant include many human resource services, a product brochure, procurement of non-production supplies, and on-line training. The focus here is often on internal customers. This can result in significant savings in cost and cycle time. These applications have low risk and provide the opportunity to gain experience with e-business and web applications. 3 Weihrich, H.: The TOWS matrix - a tool for situational analysis. Journal of Long Range Planning, Vol. 15, No. 2. 1982 © The e-Volution II consortium page 11 Integration and synthesis Efficiency New value creation Operational e-business excellence Breakthrough e-business strategies e-business support processes Evolutionary e-business experimentation G1RD-CT-2002-00698 Mission critical Tactical low Business criticality high Deliverable 2.5 (revised) low Process innovation high Based on: Beacon Companies, developing and e-business roadmap. Lake Ronkonkoma, USA Figure 3-3: e-business strategy matrix There are more innovative applications designated as “evolutionary e-business experimentation”. These are focused on external customers and are designed to add new markets and sources of revenue. Representative applications include a web-store and customer service. These applications may involve creation of some new business processes, but still have relatively low risk. Then there are more advanced applications that represent “operational e-business excellence”. Such applications usually involve both significant business process re-engineering and extensive collaboration with partners. The traditional supply chain may be replaced with a “value-net”, a business model that provides integration of business processes and information among the company’s customers and suppliers. Representative applications include supply chain management, production procurement, and collaborative product development. These applications are focused on execution efficiency and can have high risk. This is the typical application field for the Extended Enterprise. Organisations that implement “breakthrough e-business strategies” are rule breakers that create new markets; new businesses models, and shift the dynamics of existing industries. Customer relationship management can be a mission critical process in this quadrant for both new and old economy businesses. The breakthrough strategies tend to have high risk. The e-business strategy for the Extended Enterprise has on the one hand to define the e-business services that the Extended Enterprise wants to offer to its customers and on the other hand the collaborative e-business services that are needed for the more efficient collaboration of b2b-partners along the value chain and in value creating and supporting business processes. The e-business strategy on the organisation level has to define in detail to be implemented e-business systems and software in order to fill the gap between the e-business “as-is” and “to-be” status. This means the definition of single e-business project which in total represent the organisation’s e-business implementation strategy. In the next step the best time for e-business implementation must be defined with respect to the competitors. There are four basic strategies: © The e-Volution II consortium page 12 Deliverable 2.5 (revised) Integration and synthesis Technology Customised/ Not available G1RD-CT-2002-00698 Don’t move approach First mover approach (if verified costbenefit-riskrelation), else Fast follower approach First mover, Fast Follower, Early adopter approach First mover approach Standard/ available Operative Benefits strategic Figure 3-4: Implementation strategies The decision about the “If?” and “When?” to invest in e-business has to depend from the ICT availability, its strategic importance and the expected benefit. − If ICT is available and if strategic and operational benefits are expected, a first-mover or at least fast-follower-strategy is the right one. − If ICT is not or only partly available a first-mover-strategy is recommended only if strategic needs exist and acceptable cost-benefit-risk-assessment. Operational potentials should not be developed in case of not or only partly existing ICT. Functional e-business goal definition Together with the e-business strategy, functional e-business goals, which correspond with the corporate business goals, must be defined, integrated in and streamlined with the organisation’s goal system, respectively harmonised with the existing functional goals. Goals are quantitative and qualitative figures. Goal targets enable the assessment of goal fulfilment. Methods and instrument for goal definition are documented in Deliverable 2.3: Report of company organisation module. The definition of the functional e-business goals, derived from the strategic business goals, is of utmost importance in the context of detailed e-business strategy development. The following approach is an advancement of the BSC approach. I. E-business goal identification (qualitative data) Goal identification is collection of basic e-business goals that enable the realisation of strategic business goals. Example: Sales increase by doing e-commerce. II. E-business goal measure specification (qualitative data) Goal measure specification is the identification and agreement on performance measure criteria for functional e-business goals. This has to include the identification of indicators for the goal measurement, of the data basis for goal measurement and of responsibilities. III. E-business goal target definition (quantitative data) Goal target definition is the quantitative specification of a functional e-business goal. The goal fulfilment will be controlled based on that. Quantitative figures are necessary for the continuous monitoring and controlling of goal fulfilment in the planning and realisation phase. The “as-is” situation and the goal target might be defined already in this early stage. All later e-business activities are monitored and controlled by these figures. IV. E-business goal clustering The e-business goals can be clustered according to the enterprise’s needs, e.g.: © The e-Volution II consortium page 13 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 classical BSC perspectives: financial perspective, innovation, learning and growth perspective, business process perspective, and customer perspective; Time, cost, quality according to the classical goal-triangle Time, cost, quality, flexibility, innovation, and sociability according to the Fractal Company concept. The results of I-IV are recommended to be summarised in a BSC-like template. [Goal cluster] [Goals] [Goal measures] [Goal targets] Figure 3-5: e-business goal description template (basic) 3.1.1.3 E-business strategy assessment The developed e-business strategy options must be assessed in the next step against their e.g.: alignment with business strategy; recoverability; and relisability; The assessment criteria must be defined the specific use case. Suitable, easy to handle assessment methods are listed in the following. Several, either excluding or depending, compatible or non-compatible, dependent or independent ebusiness strategy concepts might be developed. The assessment of the e-business strategy concepts has to identify what e-business concept will support the organisation’s goals in the best way. Opportunities for competitive advantages are initially identified. The e-business strategy assessment is a decision about the potential e-business practices that make the organisation profitable. Investments, operational costs and expected benefits must be estimated, being the final e-business strategy concept defined by the properties of the scenario considered more promising. A rough implementation plan is also defined. The single e-business projects and measures must be compiled with other e-business projects and measures planned or selected. There has to be an evaluation of these projects and measures and determination of the concept to be pursued. Finally the organisation has to select the most feasible and beneficial e-business solution concepts. 3.1.1.3.1 Risk analysis The e-business is the most suitable field for risk analysis, because the trust to e-business and ecommerce applications has not really grown since the (dot) com crisis. Risk analysis is a detailed examination including risk assessment, risk evaluation, and risk management alternatives, performed to understand the nature of unwanted, negative consequences to human life, health, property, or the environment; an analytical process to provide information regarding undesirable events; the process of quantification of the probabilities and expected consequences for identified risks. Risk analysis is the science of evaluating health, environmental, and engineering risks resulting from past, current, or anticipated, and future activities. The use of these evaluations include providing information for determining regulatory actions to limit risk, presenting scientific evidence in legal settings, evaluating products and potential liabilities. Risk analysis is an interdisciplinary science that © The e-Volution II consortium page 14 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 relies on epidemiology and laboratory studies, collection of exposure and other field data, computer modelling, and related social and economic and communication considerations. 3.1.1.3.2 Sensitivity analysis As any other business projects, e-business introduction may be proved with the help of sensitivity analysis. Sensitivity analysis measures the impact on project outcomes of changing one or more key input values about which there is uncertainty. In economics, sensitivity analysis, measures the economic impact resulting from alternative values of uncertain variables than affect the project. Sensitivity analysis reveals how profitable or unprofitable the project may be if input values to the analysis turn out to be different from what it is assumed in the single –answer approach to measuring project worth. Sensitivity analysis can also be performed on different combinations of input values, that is, several variables are altered at once and then the measure of worth is computed. However that sensitivity analysis can in fact be misleading, if all pessimistic assumptions or all optimistic assumptions are combined in calculating economic measures. Such combinations of inputs would be unlikely in the real world. Sensitivity analysis can be performed for any measure of worth. It is widely used in the economic evaluation of government and private sectors projects. 3.1.1.3.3 Cost-benefit-analysis Not every e-business application is suitable and profitable for a specific business case. The aim of the cost-benefit-analysis is to check if the implementation of the planned/recommended e-business solution is profitable or not and to provide decision support. The cost-benefit-analysis can be used in the context of implementation of a single or a package of integrated e-business solutions. The result is a list of expected monetary costs, benefits, and return on investment. See Annex 3: Example for cost-benefit-analysis template. Based in the assessment of the e-business concepts, the preference e-business concepts are identified and defined. The aim is the definition of the e-business concepts to follow to realise the ebusiness strategy and maximise profitability of value creating business processes along the supply chain and effectiveness of supporting business. The results are organisation-specific executable ebusiness strategies that will guide the organisation toward greater competitive advantage. Coming from the Extended Enterprise level, each organisation inside the Extended Enterprise has to derive its own but shared e-business strategy and concepts. 3.1.1.4 E-business implementation conception The scope of e-business solutions is in principle focussing on the two basic kinds of business processes and four main application fields: A) value creating processes 1. e-procurement 2. e-supply chain management (logistics, ERP, operation) 3. e-commerce (marketing, sales, CRM) B) supporting processes 4. organisation (finances, controlling, administration, human resource management, RTD and engineering, infrastructure, CRM) © The e-Volution II consortium page 15 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 e-business strategy e-organisation Finances, controlling, administration process Human resource management process RTD and engineering process infrastructure process e-procurement e-supply chain management e-commerce Bartsch, Th.: e-business in KMUs. IBM Unternehmensberatung Germany, 2001 Figure 3-6: The four e-business application fields Based on the selected e-business strategy, an e-business implementation concept must be developed for the concerned e-business application field, i.e. work package and projects must be defined, prioritised and started. In this connection the interactions and relationships between the E2 organisation’s e-business strategies and the e-business application fields must be considered. The aim is a holistic e-business concept; no isolated solutions. E-business strategy implementation means business reengineering. Consequently, e-business implementation concept has to address three main perspectives: business and organisation; information and communication technologies; and employees. Business and organisation e-business model Based on the developed business and e-business strategy, a prioritisation of the business processes (process mapping) and of value creating business activities (business model) has to be done must be done first. The business model is the basis for every kind of business activity. The business process model is derived from the business model. E-business is not an end in itself but a means to an end for realising strategic or operational business goals and benefits and has to provide and added-value. The following questions help to assess the need for e-business investments: − Will the investments in e-business realise new or additional business? − What will be the strategic effects on the competitiveness if there is no investment in e-business? − Are there potentials for cost cutting and improved efficiency by the implementation of ebusiness? Based on the answers, quantitative benefits and pay-back-statements can be made. Implementation conditions The general conditions for the e-business implementation must be realised, e.g. quality of master data and user training. Acceptance problems inside the organisation prevent the realisation of expected benefits. Legal aspects © The e-Volution II consortium page 16 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Legal aspects of online business collaborations, e.g. in the connection with data security, trust and honesty of “anonymous” business transactions must be analysed and solved together with the business partners. Information and communication technologies Application portfolio The systems and software must realise the business and process requirements. The system environment must be designed in a way that clear system interfaces are defined and functional redundancies are avoided. Candidate e-business applications must be assessed in terms of the “e-business strategy matrix” and its meaning for strategy realisation. There are plenty of e-business applications, having a range of value creation, complexity, investment requirements and risk, to choose from to support the organisation‘s corporate strategy. For each business process, certain so called e-services are available. Error! Reference source not found. gives an overview of business process related e-services. Make an/or buy A major question is the “make and/or by” decision. This is not only a resource and monetary decision but also a strategic decision in terms of standardisation and sustainability. There must be an assessment of resources and costs and decision about the ICT design and maintenance strategy, i.e. about entering into dependencies from IT companies and IT consultants. Alternative strategies are purchasing and customisation of standard software, development of own software, use of application service provider, and e-business on demand. Standardisation Existing or emerging standards, e.g. in communication and security, must be analysed and selected, taking branch and market standards into account. Employee perspective IT acceptance E-business will change the way people are working. Successful implementation of e-business requires the employees’ acceptance for this on the one hand and capability on the other hand. Organisation’s cultural specifics must be taken into consideration. Skills and qualification The implementation of e-business requires training and/or recruiting of employees. Based on the employee qualification profile and gap analysis, user group specific qualification and training measures must be done. Activity planning The e-business strategy defines the need for actions inside the e-business activity matrix. Whereas the business and organisation perspective is quite application field specific, ICT as well as human perspective have spreading character. Perspective Business processes Value creating processes e-procurement e-supply chain management business and organisation information and communication technologies employees e-business strategy conform, specific measures e-commerce © The e-Volution II consortium page 17 Deliverable 2.5 (revised) Integration and synthesis Perspective Business processes Supporting processes Finances Controlling Administration human resource management business and organisation information and communication technologies G1RD-CT-2002-00698 employees e-business strategy conform, specific measures RTD and engineering Infrastructure Figure 3-7: e-business activity matrix A valuable instrument in the context of e-business strategy implementation planning is the Hoshin4 matrix. The elements involved in the Hoshin matrix are having a goal focus, to develop plans that adequately support that goal, to review the progress of those plans, to make changes to those plans as required, make continuous improvements of the key business processes, and lastly to make the plan a vehicle for organisational learning. The Hoshin matrix chart is the heart of the system. It allows visual tracking of goals and target actions. Every person can see how their objectives fit into overall organisation goals and objectives. The action planning section contains a written description of issues and gaps, counter measures, who is assigned to address the problem, and when it will be resolved. Hoshin planning represents a very powerful tool for deploying the strategic direction of any organisation. It not only ensures that everyone in an organisation understands the strategic direction but it also ensures that they understand how their work and the work of other organisations within the E2 fit together. It is also a powerful tool for bringing out the best in everyone through participation.” Improvement measures Strategies and goals Action plans Figure 3-8: Hoshin matrix chart There are a lot of potential and specific tasks in the context of e-business strategy implementation, derived from the e-business activity and Hoshin matrix, to be identified specifically for each use case. On overview is given in the following: 4 Hoshin Planning is a system of strategic and operational planning developed and refined in Japan during the 1960s by companies such as Toyota, Nippon Denso, Komatsu, and others. These companies blended ideas from Dr. Edward Deming (PDCA cycle), Dr. Joseph Juran (quality policy), and Dr. Peter Drucker (MBO) into strategic planning to create Hoshin Planning. © The e-Volution II consortium page 18 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 3.1.1.5 E-business balance score card definition At the and of this process, an e-business strategy implementation Balance Score Card (BSC)5 can be designed as management instrument for the monitoring and controlling of the e-business strategy implementation. What makes the BSC stand out is that it is a holistic performance management system which is geared towards defining performance measures and communicating objectives and vision to the organisation. Customer perspective [Goals] [Goal measures] Financial perspective [Goal [Goals] measures] [Goal targets] [Goal priority] [Initiatives] [Goal targets] E2 vision, mission, strategy [Goal priority] [Initiatives] Innovation, learning and growth perspective [Goals] [Goal measures] [Goal targets] [Goal priority] [Initiatives] e-procurement process [Goal [Goal process [Goal e-supply chain management [Goals] [Initiatives] measures] targets] priority] [Goal [Goal [Goal e-commerce process [Goals] [Initiatives] measures] targets] priority] [Goal [Goal [Goal [Goals] [Initiatives] measures] targets] priority] Figure 3-9: e-business implementation BSC 3.1.2 E-business roadmap development E-business road mapping consists of the actual roadmap as an instrument for visualising and the process of the roadmap generation. A roadmap is visualises in a two dimension search area where the horizontal axis is the object axis and the vertical one the time-axis. The initial point of the roadmap is the specific business area of the organisation. The scaling of the time-axis can be omitted as required (abstract, according to intervals or precise to years) and should be matched with the level (single enterprise, division, or branch) for which the roadmap is generated. 3.1.2.1 E-business roadmap visualisation The e-business roadmap is a more detailed e-business strategy description with incremental steps leading to the desired destination. E-business road mapping means to determine how specifically to get from where the organisation is, to where it want to be in a timely and logical manner. The ebusiness roadmap is an extended look at the future of organisation’s e-business. E-business strategy and roadmap development are running in parallel. Starting from the actual e-business status new objects and objects developments according to the expected realising point of time in the roadmap inscribed. The consequent development are visualised with arrows (classification in necessary and favourable ones is possible). The e-business roadmap for the Extended Enterprise is the framework for the individual organisation’s e-business roadmap. The e-business roadmap describes of how (projects, activities, resources) the identified potentials of e-business processes (process itself and ICT) will be realised. A roadmap is characterised by the time dimension and another, object dimension. The object dimension can be, e.g. the ICT sophistication of the e-business solution, its strategic priority, sys5 Professor Robert Kaplan and David Norton developed the balanced scorecard (BSC) in the early 1990s. According to Kaplan and Norton (1996), ``the Balanced Scorecard translates an organisation's mission and strategy into a comprehensive set of performance measures and provides the framework for strategic measurement and management''. [Kaplan, R.S. and Norton, D.P. (1996), ``The balanced scorecard: translating strategy into action'', Harvard Business School Press, Cambridge, MA.] © The e-Volution II consortium page 19 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 tem/software updates/releases. The e-business projects are positioned and inter-linked in the matrix. Furthermore, milestones as gates and dates for strategy review and decision about how to go on can be specified. The e-business roadmap defines the e-business strategy implementation process. External e-business e-process reengineering of external business processes Convergence Internal e-business ICT sophistication Generic examples for roadmap presentations are shown in the following figures. But finally, it is a case specific decision and approach of how to visualise the e-business roadmap. New business processes organisation e-process reengineering of internal business processes Time Initiative Based on: University Sidney, Australia Figure 3-10: e-business roadmap example #1 (single organisation view) A1-3 A1-2‘ S2 A2-2‘ S1 A2-1‘ Partner application integration A2-2 A2-3‘‘ Partner #1 roadmap gap Partner #2 roadmap ?? A1-1‘‘‘ Time consistency A1-1‘ A1-1 A2-1‘‘ A2-2‘ A1-2‘ gap A1-1‘‘ time time ?? A2-3‘ A2-1‘ A1-2 A2-1 A2-2 A2-3 A#: e-business application S: e-service Figure 3-11: e-business roadmap example #2 (partner view) © The e-Volution II consortium page 20 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 ICT sophistication Extended Enterprise e-SCM eprocurement e-marketing e-sales Time ERP Online shop market place Content manage. Document manage. homep age E-mail marketing Time ICT sophistication ICT sophistication ERP Content manage. Document manage. homep age Partner #1 Time Partner #2 Figure 3-12: e-business roadmap example #3 (E2 view) A successful performance of road mapping projects depends on numerous factors. The right choice and classification of the examination field for which the road mapping is done is of central relevance. Success factors are: Detailed preparation of the workshops; Competency, creativity and communication willingness of the experts; Good visualising and result documentation; Configuration and size of the analysis team; Analytic skills and road mapping expertise of the team members; Assignment of responsibility to those who are liable for the preparation, up-date and communication of a roadmap. 3.1.2.2 E-business roadmap maintenance Today, organisations are acting in a turbulent, competitive environment. Market requirements are changing fast, products life cycles, especially in the ICT sector, are getting shorter. These are only some reasons that make a permanent review of the business strategy and its adaptation necessary. This effect also the e-business strategy, i.e. the validity of the e-business roadmap has to be assessed. Triggers for the strategy revision are e.g. identified in the course of the early recognition of strategic opportunities and threats based on trends and weak signals (see project Deliverable 2.2: report of market approach module) and monitored by the focussing of relevant trends and weak signals in the organisation’s environment or changing market conditions. This results in the review and if needed adaptation of the business and its derived e-business strategy and roadmap. Regarding the rules, mechanisms and updated routines of the e-volution toolkit, for the details see project Deliverable 2.4: Concept of rules, mechanisms and update routines. 3.2 Content of the e-business road mapping model Annex 5 of this document provides example of model report, automatically generated by the ARIS tool set. The model design language is English, the reports itself use the German language for administrative information like report name, etc. English reports are also possible after installation of © The e-Volution II consortium page 21 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 program plug-ins or use of the English program version. The attached report was partly translated in order to avoid possible misunderstandings of model structure. The “ModelHierarchy.rsm” report, enclosed in Annex 4: Documentation of the integrated e-business road mapping model (model report), includes all functions of the designed e-business road mapping model. Additionally, bears report the model attributes the group and the model diagram. The functions of a model can be listed/ sorted alphabetically, according to any type of attribute, symbol or topologically. Attributes, relations and deposited models are to be evaluated. The deposited models could be evaluated as well as key-model up to an adjustable stage of the whole structure. The expenditure occurs in text form with merged tables for the model and the object information. The ARIS toolset provides additional standard reports. By the use of add-on reporting tools, user specific reports can be designed and generated from the ARIS toolset data base. The reports are helpful instruments for the model design, administration, communication and dissemination. © The e-Volution II consortium page 22 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 4 CONCLUSIONS AND OUTLOOK The e-business road mapping model is now in a status, where the basic set of model element is identified and defined. The specification of the model elements, e.g. as a result of refinements or gained new knowledge, has to become a continuously ongoing knowledge management process. The e-business road mapping model has to be managed, maintained and administrated in a formal process that guarantees control over the single model elements and ensures the reflection of user experiences and fulfilment of up-coming user needs. An infrastructure and mechanism still has to be installed for the review and update of the model, e.g. be the exploitation organisation. The model revision and update process has to be documented. The identification of a need for revision or change of the model has to initiate a review of particular model elements and the updating. A final review and acceptance of the proposed model changes is the basis for integration of the change into the overall model and the filing as a new model version. A further detailed design is possible under the condition of a central coordination to guarantee model consistency. The integration and of third parties is regarded as necessary for future model advancements. Suitable platforms for the model advancement are standardisation organisations, industry and research integrating working groups. But this is a vision. The practical application of the e-business road mapping model as the thread running through the ebusiness realisation process at the user will show the practicability of the approach and the need for concept refinements. The e-Volution project partners are interested in providing a wide dissemination of the e-Volution framework concept and its components. The wide-spread use of the e-business road mapping model and of the supporting toolkit, its assessment, review and update by the users is expected to result concept updates and improvements. Options are the design of branch models and the integration of best practice examples. The challenge of designing a generic e-business road mapping model concept is to find the right balance between generalisations and detailing on a level that enables the user to practically work with this theoretical concept and to be useful for a broad number of use cases. The assessment of practicability and usability of this process reference model will be finally done by the industrial user. The e-Volution project will implement and run test cases as mechanisms for concept and model validation and development of recommendations for the concept and model refinement and improvement. Implementations in general are expected to be best means to test and improve the concept. The maintenance and content management of the e-business road mapping model and its presentation and dissemination in a user-friendly is subject of future activities from now. © The e-Volution II consortium page 23 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 ANNEX 1: GLOSSARY Topic Description Architecture Architecture is the defined structure based on a set of design principles. The definition of the structure includes its components, their functions, and their relationships and interactions. ASP ASP is a company that offers individuals or enterprises access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers. b2b B2B is the exchange of products, services, or information between businesses rather than between businesses and consumers. b2c B2C is or the retailing part of e-commerce on the Internet. It is often contrasted to B2B. b2g B2G is the concept that businesses and government agencies can use central Web sites to ex-change information and do business with each other more efficiently than they usually can off the Web. B2g is synonym for b2a. Business process A business process is defined by in- and outputs, activities, resources, and goals. There can be different views on a business process, e.g. organisation, functions, information, work flow. c2c C2C comprises all relationships between end consumers. Data mining Data mining is sorting through data to identify patterns and establish relationships. Data mining parameters include: Association - looking for patterns where one event is connected to another event. Sequence or path analysis - looking for patterns where one event leads to another later event. Classification - looking for new patterns. Clustering finding and visually documenting groups of facts not previously known. Forecasting discovering patterns in data that can lead to reasonable predictions about the future e-business E-business is the generic term for all electronically transacted administrative and microeconomic business activities. E-business is the use of Internet technology to conduct or enhance transactions and business relations, either on the back office side (relation with suppliers and business partners), across internal processes, or on the frontoffice side (relations with customers). e-business map road The e-business road map is a personalised step-by-step 'road map' or guide to develop the business with its e-business needs. The e-business road map is the visualisation of an executable e-business strategy. e-commerce E-commerce is the buying and selling of goods and services on the Internet, especially the World Wide Web. e-organisation E-organisation means to concentrate on electronic support of internal communication of employees with new media. The aim is to make the company’s data accessible for the employees at the right time and in a suitable way and at the same time to reflect as much “know-how” and “tacit knowledge” of the employees in the company’s information system as possible. The internal alignment is embossed with the application of intranets, document management systems, content management systems, groupware and the whole area of office automation. e-procurement E-procurement is the B2B purchase and sale of supplies and services over the Internet. Extended prise The Extended Enterprise is a dynamic, market-oriented business arrangement and a concept for integrated value chains. Enter- The significance of the Extended Enterprise, as distinct from the conventional suppliercustomer-relationships, is the truly integration of organisation's business processes and information systems with those of suppliers, business partners and customers. The Extended Enterprises concept enables efficient and effective collaboration among value chain partners, driving productivity and innovations into new heights. © The e-Volution II consortium page 24 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Topic Description Instrument An instrument is an expedient or device for processing of scientific or technical work. Knowledge management Is the name of a concept in which an enterprise consciously and comprehensively gathers, organizes, shares, and analyzes its knowledge in terms of resources, documents, and people skills. IT involves data mining and some method of operation to push information to users. Method A method is a systematic procedure that leads to technical skills for the solution of theoretical and practical tasks. Methods are basic components of a methodology. Methodology A methodology is characterised by a specific application, a process model and a document structure. The specific application defines the scope, the process model defines the logical and timely combination of tasks, which are using methods, and the document structure defines rules for integration of artefacts resulting from the use of methods. Model A model is the simplified visual or mathematical description of structures, functions or processes, systems that enables or facilitate the case or system investigation or research. Model element General term for the description for an element of the reference process model without referring to a specific model level. Process A process is a well-defined series of ordered activities (actions, operations, steps and / or decisions), a set of causes and conditions that work together to transform inputs (in any form) into an output (goods, information or services), meeting a specific objective. Reference process A reference process is a formal, standardised description of management processes. It provides a framework of relationships among the standard processes and standard metrics to measure process performance, management practices, and standard alignments to software features and functionality. The flexible combinations of hierarchical process models enable the reconfigurability (customisation) of reference processes. A reference process captures process knowledge with the help and for the use of the different process actors. Road map A road map is an extended look at the future of a chosen field of inquiry composed from the collective knowledge and imagination of the brightest drivers of change that field. A road mapping describes and visualises future developments. Road mapping Road mapping is the process of roadmap development and updating. It is a method to forecast and to visualise future developments in a company. It visualises scenarios and options of future activities, under the condition that the business is continued and offers solutions for the system for which it is created. © The e-Volution II consortium page 25 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 ANNEX 2: E-BUSINESS CHECKLISTS E-Business relevance for an organisation The more frequent the questions are answered with "yes", the more applicable is e-business for the organisation. Instruments to introduce and how exactly they can be used, must be analysed and decided in a casespecific manner. 6 Co-operations/networks Organisation has to contact co-operation partner in order to place itself successfully into the new market conditions. Organisation is a part of enterprise network. Time and Costs Organisation has long-lasting business processes. Organisation has businesses processes must be completed by hand. Organisation has business processes, by which it has to change the used media. Customers/New Business Organisation wants to attend upon customers, who make high demands on data exchange. Organisation wants to open new markets and win additional customers. Organisation wants to have other ways to walk on, in order to win additional customers. Organisation has to break new ground in order to reach previous customers. Product development Organisation wants to implement new ideas or products. Organisation wants to analyze market and competitors. Organisation wants to develop products in co-operation with partners. Organisation wants to occupy technology-oriented niches. Purchase/procurement Organisation wants or has to purchase more favourable Organisation wants to find new suppliers for it. Organisation wants to compare quality and price of offers for it Organisation wants to bundle purchase with other enterprises. Production planning and controlling Organisation wants to obtain a higher productivity. Organisation wants to simplify data exchange Organisation wants to diminish stock. Organisation wants better and more transparent information for the management There are retards and friction losses during the co-operation in the organisation. 6 These checklists were developed by in cooperation of the German E-Business Network and TheCK Thüringer Kompetenzzentrum eCommerce und EC-SH Kompetenzzentrum Electronic Commerce Schleswig-Holstein. © The e-Volution II consortium page 26 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Marketing und customer loyalty Organisation wants to use additional instruments of communication and advertising. Instruments have to be able to reach as much customer as possible. Instruments have to be able to deal quickly and efficiently with new offers. Instruments must be able to offer a lot of clear information. Organisation wants to offer to additional service (e.g. breakdown auxiliary information). Sales Organisation wants to intensify sales. Organisation wants to arrange sales process in more economical way. Sales co-workers need permanently on-line data. Internal administration Organisation wants to accelerate the administrative expirations Organisation wants to arrange administrative expirations in more economical way. Relevance of e-business applications for an organisation The more frequent the questions are answered with "yes", the more applicable is e-business for the organisation. Instruments to introduce and how exactly they can be used, must be analysed and decided in a case-specific manner. 7 Check list: "Customer relations» The customer target group have been using (or will use in the nearest future) the Internet already. The customers have own homepage or E-Mail address. The customers are technically interested The customers pay predominantly by transfer A favourable price is the mort important for the customers. A close relationship with the customers can be developed Individual information for customers is possible The interesting specialized knowledge is presented in the enterprise for customers. The common interests are presented by the customers. The enterprise has a big part of regular customers. The customer target group has to be extended. After sales the support has to be intensified The customer's requests are to be fulfilled faster. The customized consultation has to be improved The purchase behaviour of the customers is to be better analyzed, in order to draw conclusions for advertisement, product portfolio etc. Few co-workers are for the customer service sufficient. 7 These checklists were developed by the German E-Business Network (www.ec-net.de) © The e-Volution II consortium page 27 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 Check list: "Product / services" Product/service can be well described linguistically. Product/service can be well represented graphically/multimedia. The customer can select from a limitable number of variants. Product/service needs no intensive consulting. Documents have to be frequently updated to product/service offers. Product/services are offered in digital form. The non-digital products are for a long time durable that the sales can deliver them fast enough. The distribution over Internet is possible. An individual compilation of the product range is possible. The time between order and distribution should be shortened. Check list: "Suppliers’ relations" A close connection to suppliers is important There are fixed workflows in co-operation with the suppliers The most important suppliers are presented in the Internet or plan to do it The suppliers use e-business components The suppliers are able to open their e-Business-systems outward. Check list: "Competition" The enterprise differs from its competitors through: Product assortment, Price, Service, Speed Such a difference can be put out with the help of e-Business-components more clearly. Such a difference can be reached by means of e-Business-components. The competitors have been using e-Business-applications already, e.g.: enterprise presentation in the Internet, E-Mail, on-line sales, on-line payment possibilities Check list: "Business processes" How large is the value (high, middle, low) of the following business processes during treatment and improvement? o Public work and advertisement for customers and suppliers o Marketing and customer loyalty o Purchase and procurement o Sales o Product development/production/stock o Internal and external communication o Administration/finances/ human resource managements Check list: "Technical equipment" There is sufficient number of PC-desktops for EB-applications. These PC -desktops have the following technical equipment o Multimedia- capability © The e-Volution II consortium page 28 Deliverable 2.5 (revised) Integration and synthesis o Large monitors o Large storage capacity o Efficient printers o Scanner etc. The server is presented and can be integrated. There is software for o personnel administration o financial budgeting o marketing o sales o Internet access. This art of software can be used for e-Business-applications. Important information about the enterprise is collected. There is information which must be protected. The access to this information is regulated There is an internal cross-linking (Intranet) in the enterprise. The technical precautions conform to IT security. G1RD-CT-2002-00698 Check list: "Organization" The operational sequences (work flows) are clearly structured in the enterprise. The operational sequences in the enterprise have been documented already There are few hierarchic levels in the enterprise There are fixed competencies for certain IT processes in the enterprise, which can be changed however. There are fixed rights and responsibilities of individual co-workers fin order to use the network. Check list: "Qualification" There are IT specialists in the enterprise These specialists have e.g. knowledge of Internet software There are co-workers, who can provide a homepage or use on-line Shops E-Business-components can be integrated by these persons into firm specific applications IT knowledge will be obtained in the enterprise by training courses. © The e-Volution II consortium page 29 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 ANNEX 3: EXAMPLE FOR COST-BENEFITANALYSIS TEMPLATE Example: Enterprise Resource Planning (ERP) system Identification of costs Duration Costs during the project: Conception Design Implementation Operation Material and attendant costs [EUR]: e.g. * purchase of ERP-System, purchase of servers, clients, network Personal costs [EUR]: e.g. * Process analysis, process re-engineering, implementation roadmap design external costs [EUR]: e.g. * process analysis, process re-engineering, implementation roadmap design, employee training, software component customisation Total costs [EUR]: Identification of benefit Benefit description: Administration [EUR] e.g. * process and data transparency – no redundancy, less processing time, faster data access Procurement/purchasing [EUR] Production [EUR] Sales [EUR] Marketing [EUR] RTD [EUR] Internal communication / data exchange [EUR] External communication / data exchange [EUR] Total benefit [EUR] Return on Investments © The e-Volution II consortium page 30 Deliverable 2.5 (revised) Integration and synthesis G1RD-CT-2002-00698 ANNEX 4: DOCUMENTATION OF THE INTEGRATED E-BUSINESS ROAD MAPPING MODEL (MODEL REPORT) © The e-Volution II consortium page 31