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How SCOR Applies to B2B eCommerce

How SCOR Applies to B2B eCommerce. Joint Siemens-Intel- Perspective for the Hightech Industry Herbert Heinzel, Siemens,SBS Partner Supply Chain George W. Brown, Intel, IT Strategy and Technology. Our Message. e-Business is it! The internet is a requirement for business - do it or lose it

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How SCOR Applies to B2B eCommerce

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  1. How SCOR Applies to B2B eCommerce Joint Siemens-Intel- Perspective for the Hightech Industry Herbert Heinzel, Siemens,SBS Partner Supply Chain George W. Brown, Intel, IT Strategy and Technology

  2. Our Message • e-Business is it! The internet is a requirement for business - do it or lose it • An integrated e-supply chain approach has to have focus on an holistic (cross) enterprise view • Supply Chain Council has the opportunity to add value to RosettaNet • Intel/Siemens step up to the plate with a joint project • Objectives • Approach • Value proposition • Pilot scope • Status

  3. Current Situation • e-Business is it! The internet is a requirement for business - do it or lose it • Companies must drive business processes and more timely data exchanges with suppliers and customers to reduce cycle time in the network • Customers continue to request and expect greater supply network flexibility consistent with demands • Activities across the supply networks are not synchronized • Business complexity has outgrown supply network business processes and current tools • Infrastructure (Tools) have not kept pace with the complexity of business and the requests of customers • Supply Networks are now a competitive differentiator!

  4. An Integrated e-Supply Chain Approach... ...will generate decisive competitive advantages Optimization across the entire value-added network Plan e-Biz e-Biz e-Biz e-Biz Deliver Source Make Deliver Source Deliver Make Source Make Deliver Source Supplier (internal or external) Customer’s Customer Customer (internal or external) Own Company Model View: One-to-One- Relation Reality: Many-to-Many- Relation Model View vs.Business Reality

  5. ISCM BCI Business Community Integration - an holistic management approach... Business - and Supply Chain Strategy Performance Benchmarks Industry Best Practices Organizational Structure and Workflows Inter - Partner - Key processes * Supply Chain Planning Suppliers Delivery / Order Processing Procurement Manufacturing Customer PIP‘s Partner - Interface Processes I+C-Technology Strategy Mgt. of Organizational Change * Source: Supply Chain Council

  6. Intra-& Inter-Enterprise BusinessPerspectives Systems view Process view e-BusinessSolutions and Services Suppliers & Business Partners OurCorp.com Prospects and Customers Consulting Services • Business Process Consulting • Change Management e-Enablers Business Solutions • Supply Chain Management • Enterprise Resource Management • Business Information Management • Customer Relationship Management • E-Commerce Supply Chain Management Customer Relationship Mgmt. Business InformationMgmt. Systems Integration IC-Infrastructure Services • Desktop and Network Services • Operation of Web-Applications • IT-Outsourcing • Operation of Business Processes Enterprise Resource Management e-Business

  7. A BCI Architecture -Extends Beyond the Boundaries of your Enterprise.... CollaborativeBusiness Community Business-level Supplier-Contractmanufacturer-Assembler-Distributor-Shipper-Endcustomer Linking Business Communities by Process Integration and e-Biz Enablers Business-, SC-Strategy Collaborative planning + execution Suppliers 3PL / Subcontractor Customers OurCorp.com. Business processes Performance Management / Joint SC - Metric Alignment EA I EA I EA I EA I Intra-Enterprise Level Applications / Enabling Technologies BC I Inter-Enterprise Level SCOR SCOR SCOR SCOR Methodology/ Mgt. Tools RosettaNet RosettaNet RosettaNet RosettaNet RosettaNet

  8. IT Manageing Board ...and builts on Information Sharing Networks RosettaNet,the Linqua franca for e-business is set to standardize electronic communication between supply chain partners The Business Community Manufacturer 3Com, Cisco, Compaq, HP, IBM, Intel, NEC, Siemens, Solectron, Toshiba Software Publisher Microsoft, Netscape Financier Deutsche Financial Reseller/SI CompUSA, Computacenter, EDS, Inacom, Insight, MicroAge, Office Depot Enduser AMEX, GSA Wholesale Distributor Arrow, Avnet, CHS, Ingram Micro, Marshall, Tech Data E-Technologist Geis, pcOrder Shipper FedEx, UPS

  9. Supply Chain Council has the Opportunity to Add Value to RosettaNet • SCOR methodology is positioned to enable competitive supply networks through inter-enterprise business process alignment and performance management • SCOR can add value to RosettaNet through a business process perspective in internet-enabled supply networks

  10. Intel/Siemens Step Up to the Plate Objectives for a Joint Project • Add value to SCOR methodology by aligning with the RosettaNet initiative • Leverage SCOR to define inter-enterprise interaction consistent with an integrated supply chain vision • Facilitate definition of intra-enterprise process response to partner interaction (as defined by RosettNet) • Identification of SCOR-based PIPs that improve supply chain management across partners • Define and implement a joint Siemens/Intel pilot • Share lessons learned through Supply Chain Council and RosettaNet

  11. Joint Project Approach • Develop joint value proposition to be approved by SCOR Board and the RosettaNet IT/EC Board • Plan on collaboration • Pilot open to selected business partners • SCOR methodology extension into B2B modeling/ implementation open to other interested partners/vendors who add value • Prove the concepts for our industry; generalize and customize for other industries later • Communicate results from a B2B scenario • Develop a plan for rollout of results

  12. Goal: Integrated Processes/Services RosettaNet PIPs Process Modeling & Automation Metadata Repositories Company Private Processes Trading Partner’s Private Processes Group Private Processes Group Public Processes Inter-Company Public Processes Trading Partner’s Process Models & Automation B2B EAI Firewall EDI ERP and Legacy Apps FTP Information Bus

  13. PIPs Represent Agreed Upon Protocols to Carry out B2B Solutions eBusiness Process RosettaNet PIP Framework Dictionaries Telephone Ecom Application Telephone Business Process Business Process DIALOG Dialog Grammar Words Alphabet XML Sound Internet human-to-humanbusiness exchange partner-to-partner eBusiness exchange

  14. SCOR SCOR SCOR SCOR PIP PIP PIP EAI EAI EAI EAI SCOR Can Map to RosettaNet Linking Business Communities by Process Integration and e-Biz Enablers Business Partners Partner-Interfaces Trigger Intra-enterprise Process and Performance Management Intra- Enterprise Process Integration Business Community Integration Inter-Enterprise Process Integration BCI

  15. Value Propositionfor Mapping SCOR to RosettaNet • Extend SCOR methodology across enterprises and for globalization • Develop best practices for cross-enterprise collaboration • Customize models through RosettaNet standards • Map RosettaNet process taxonomy to SCOR processes • Introduce new PIPs for sharing metrics • Add strategic modeling level for e-Business • Develop collaboration capabilities • new tools for B2B modeling and simulation • new metrics for supply chain networks • new cross-enterprise planning • Enhance SCOR-workshops by SC-network modules and business cases

  16. Scope of Pilot • Focus on business area of common interest to Siemens and Intel • Joint evaluation and integration with other supply chain partners • downstream partner for sure (e.g. SAP as a customer of Siemens) • an intermediary business partner is a possibility • Align with other supply chain improvement projects within our respective companies • Leverage SCOR to the extent possible • Share SCOR-based performance metrics across the supply chain

  17. Pilot Supply Chains Could Look Like this.... Supplier Intel Manufacturer Siemens Customer SAP Example: Product Stream from sand to chip to board to system

  18. Pilot Supply Chains Could Look Like this.... Spareparts Logistic Siemens ITS Supplier Intel Customer (e.g.Bank) Manufacturer Siemens Customer SAP Example: Spare Part Stream add technical service

  19. Pilot Supply Chains Could Look Like this.... Contract Manufacturer (e.g. Solectron) Logistic / Service Provider, e.g. UPS Supplier Intel Manufacturer Siemens Customer SAP Example: Third Party Fullfillment Stream add supply chain partners

  20. Status of Intel-Siemens Pilot Pilot planning is being coordinated Link: RosettaNet projects in both corporations Both companies active on RosettaNet Board Joint RN projects are on the roadmap for this year Solution Partner Participation from Netfish Technologies Link: Current Intel supply chain improvement projects that will be ready for European (Siemens) pilot this year Link: Common Subcontractors under consideration Link: Collaboration with SCC vendors NetFish for Exchange Server architecture Gensym for SCOR-based simulation IDS Scheer for SCOR and B2B modeling Agile for third party fullfillment integration SCOR-based B2B Modeling methodology being developed through on-going SCOR projects

  21. Intel-Siemens-Netfish –A Prototype Demonstration of Technology Enablers Automating ComplexBusiness Processes through use of Multiple RosettaNet PIP Interactions

  22. RosettaNet EC Prototype 2A5, 3A4, 3A5, 3A6 - SAP/Siemens/Intel Siemens SAP 3A4 Seller/Buyer Buyer 2A5 SAP/R3 SAP/R3 3A5 PIP Interactions: 2A5, Technical Product Query 3A4, PO Exchange No PO change No PO cancel 3A5, Query Order Status 3A6, Distribute Order Status PIP Version 1.1 RNIF 1.1 3A4 3A6 Intel Seller SAP/R3 Status: Completion

  23. Problems – Trading Partner Management • Disparate communication protocols • Disparate security protocols • When quantity of trading partners dramatically increases for which secure communication is required or the mix of partners changes, how are certificates managed?

  24. Problems– Business Data Integration • Disparate Data Formats • Disparate Data Models • Disparate ERP Systems

  25. Problems– Business Process Integration • Even assuming seamless data format and data model exchange • Disparate Processes, Policies and Procedures

  26. Next Steps • Define partner specific components/ products • Describe intra-enterprise business processes • Describe inter-enterprise supply chain(s) • Develop pilot scenario • Elaborate joint value proposition • Shape Supply Chain Council - RosettaNet relationship • Define milestones for SAG-Intel-SAP integration model • Describe architecture and business case

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