utdallas/~sumit/wits99/index.htm

1. ERP & E-Commerce New initiatives for the year 2000 and beyond Bernd Heesen Workshop on Information Technology and Systems ‘99 http://www.utdallas.edu/~sumit/wits99/index.htm

2. Evolution of Business • EDI: Electronic data interchange • EC = E-Commerce: Exchange of electronic data - on the web Enterprise Resource Planning Inter-Enterprise Co-operation e-Community Collaboration Integration of Business Processes Reduces Costs Cooperation Along the Supply Chain Improves Efficiency Collaboration Within Business Communities Creates Value

3. Evolution from Integration to Collaboration Enterprise Resource Planning Inter-Enterprise Co-operation e-Community Collaboration B2Consumer-Selling B2B Procurement B2B-Selling Portals/ Communities Industry Solutions Customer Relationship Management Knowledge Management Business Scenarios Application Housing Employee Self Service Supply Chain Management Partnering Platform ALE Internet Business Framework (BAPI) Interfaces XML-enabled

4. Trends ? Why E-Commerce ? • US E-Commerce Software market to grow from 1999=$619Mio to 2002=$3.760Mio by 100%/year B2B potential is estimated at 41.4 trillion by 2003 - check. • Forrester Research, February/99 • US Internet trade to rise from 1998=$43 Billion to 2003=$ 1.3 Trillion. • Forrester Research, December/98 • “By 2001, 50% of enterprises will selectively outsource applications management using a variety of traditional vendors, offshore providers, and staff augmentation firms (0.8 probability).” • Gartner Group External Service Providers Study, June, 1999 • “Through 2003, new players will continue to enter the outsourcing market; however, consolidation will accelerate as ASPs strive to obtain a larger scale, resources, global coverage, and niche or business process expertise (0.8 probability).” • Gartner Group External Service Providers Study, June, 1999 • Market Opportunity: 1998 1999 2000 2001 $90 $390 $1,880 $6,400(Millions) “During the next five years the apps rental market will grow from a pittance to $6.4 billion, selling mainly to the middle and low-end markets.” “By 2001, rental revenue will still be growing at more than 200% annually, and apps rental providers will account for more than 20% of total middle-market applications license revenue.” • Forrester Research February/98 • “The ASP market will total $2.7B by end of 1999 and will reach $22.7B by 2003.” • Dataquest, 1999

5. ERP - Major Providers • Strategies for E-Commerce: • Oracle • JD Edwards • Baan • Peoplesoft • SAP Oracle is a trademark from Oracle Corp.J.D.Edwards is a trademark from J.D.Edwards CompanyBaan is a trademark from Bann Inc.Peoplesoft is a trademark from Peoplesoft Corp.mySAP.com is a trademark from SAP AG

6. Oracle • Headquarters: Redwood City, CA • Traded on NASDAQ as “ORCL” • 1998 revenues: $8.8 Billion • 1998 earnings: $1.3 Billion • Core ERP Systems: • Oracle Applications 11, “fully Web-enabled” enterprise applications • Now only supports browser-based clients with new releases. Will stop supporting client/server architecture by1Q 2000 • Internet Strategy: • Early bet in internet technology - “the internet changes everything” • Become a comprehensive E-commerce products and services provider • Become leading ASP provider (Business Online), only ASP for Oracle, expected 50% revenue in few years,Ellison: “One day in the not-too-distant future, all software companies • Supply Chain Management (iSCM) and Customer Relationship Management (CRM V3i) • Online trading community: • Oracle Exchange: Internet-based open marketplace for B2B commerce. Currently 300 registered suppliers.

7. J.D. Edwards & Company • Headquarters: Denver, Colorado • Traded on NASDAQ as “JDEC” • 1998 revenues: $934 million • 1998 earnings: $75 million • Core ERP Systems: • Browser based OneWorld (June release) multiplatform client/server • WorldSoftware AS/400 mainframe (“green screen”) • Internet Strategy: • Partnering with “best-in-class” providers: Siebel, Ariba • Buying small companies with key offerings: Numetrix • Emphasis on personalization, ease of use, ease of reconfiguration • ActivEra portal • Partnering for Customer Relationship Management (Siebel) • Supply Change Management (E-Procurement) • Partnering with ASP • XML support for cross-platform B2B: • Microsoft Site Server 3.0 (ActivEra portal) • Microsoft BizTalk (XML) support planned

8. Baan • Headquarters: Barneveld, the Netherlands • Traded on NASDAQ as “BAANF” • 1998 revenues: $736 million • 1998 earnings: -$315 million • Core ERP Systems: • BaanERP (the successor to Baan IV) • Supply Chain optimization is core strength, but they have full suite of ERP products • Internet Strategy: • E-Enterprise • E-Sales = Supply Chain Management • E-Collaboration = Customer Relationhip Management • E-Procurement: Operating Resource Management • Base ERP NOT internet enabled • XML support for cross-platform B2B: • Microsoft Site Server 3.0 compliant • Microsoft NetMeeting included in E-Collaboration • E-Enterprise - General • Less intrusive (no portals) • Microsoft 2000 compliant • XML-based

9. Peoplesoft • Headquarters: Pleasanton, CA • Revenue/Profit: • 1998 revenues $1.3 billion • 1998 earnings $143 million • Core ERP system: • A minor upgrade was released last spring with new HTML and Web deployable Windows clients. The next major release, PeopleSoft 8 due mid-2000.( support XML for B2B) • Internet Strategy: • Developing line of ebusiness products and buying or partnering with other specialized software vendors to provide industry specific solutions: • Partnered with PWC to develop ebusiness solutions for the insurance industry • Alliance with Descartes Systems Group to optimize customer fulfillment for food and beverage companies • PeopleSoft e7.5 • eBusiness Backbone: Linking Web and Back Office Customer orders product on web site, all transactions are entered in the ERP system automatically without additional data entry. Customers can check availability, order status, etc. • Enterprise Performance Management: business analysis tool • eCommunities – link people, content and commerce. Supports key business processes: Online procurement, benefits, travel and expense, etc. • Operating Resource Management • eProcurement – Provides single interface for all types of materials, repairs, operations purchases • Delivers a complete catalog of available items from approved suppliers to each desktop • Allows for global collective buying • Customer Relationship Management • Purchased CRM technology from Vantine Corp. to integrate within other PS programs • Portals and Trading Communities: • Enterprise Portal – similar to mySAP.com • eMarketplace - allows organizations to sell products to businesses and consumers • Integrated with eBackbone and enterprise performance management system • Provides sales, customer self-service, product marketing, order fulfillment, business analysis tools **Neither appear to be currently available

10. SAP • Headquarters: Walldorf, Germany • Traded on NASDAQ as “SAP” • 1998 revenues: $4.4 billion • 1998 earnings: $547 million • Core ERP Systems: • Browser based ERP: SAP R/3 4.6 • Internet Strategy: • Third parties for Application Hosting (EDS ...) • personalization • allow users to launch applications and business processes without leaving their browser environment • role based (150 delivered standard roles) • mySAP.com portal: • mySAP.com Marketplace • “one-step business” anytime, anywhere, with anyone • collaborative components such as a business directory, document exchange, and RFP and RFQ matching; content and community components such as horizontal and vertical business communities • Marketplace is open to anyone, SAP customer or not • Supply Chain Management: • designed to enable exchange of required planning information with business partners • Operating Resource Management (ex: office supplies): • SAP Business-to-Business Procurement facilitates all the processes associated with the procurement of maintenance, repair and operating supplies (MRO) goods and services • Customer Relationship Management: • five customer relationship management (CRM) applications are due in mid-December • includes software for automating field sales and service operations, plus a call center management system and packages for selling products online and letting customers check the status of orders via the Web • XML support for B2B

11. Overview

12. mySAP.com overview • Solutions on Demand • Industry Focus • Integrated end-to-end business processes (Supply Chain) • Knowledge Management • Customer Service Management • Collaborative • Community (20 industry + 3 vertical forums, chat rooms) • Content (External Services e.g. news, stocks) • Commerce (Business directory ...) • Collaboration (One-step Business) • Appl. Hosting • Personalized • Personalized(EnjoySAP design) • Role definition • Single point of access to all internal and external services • Mini Applications • Drag & Relate

13. Marketplace: One Stop Business • Allows companies linked to each other in a supply chain to pass on the requirements of their incoming orders to their suppliers without the presence of another organization. In a network of appropriately equipped vendors the ERP together with SCM could select the partners themselves using agent technologies. (still requires bilateral agreements between trading companies) • • Buy and sell products and services directly on the mySAP.com Marketplace. Auction off surplus materials • • Collaborate with suppliers on planning, forecasting, and meeting customer demand needs(Collaborative forecasting). • • Broadcast or bid on requestsfor proposals (RFPs).

14. mySAP.com Business Scenarios • SAP Employee Self Service (4Q95) • SAP Business Information Warehouse 2.0 on the Web (4Q99) • Business-to-Consumer Selling (4Q96) • SAP Knowledge Management (3Q99, InfoDB3 available) • Business-to-Business Procurement (1Q99) and Selling (4Q99) • Additional EnjoySAP and web-based applications with Release 4.6C

15. Application Hosting along the lifecycle Evaluation Implementation Continuous Improvement We Host Your Solution Online Test Drive Your Solution Online • Financial • Application • Services • HR • Application • Services We Implement Your Solution Online We Build Your Business Community/ Marketplace Online Compose Your Solution Online • Industry Focused • Marketplaces • Enterprise-specific • Marketplaces Partners SAP & Partners SAP

16. Application Hosting Types • Application Service Provider (ASP) • The client delegates all or a major portion of an operation or function to a vendor (Apps Hosting Provider) in a long term relationship (>1 year). Apps hosting partner owns hardware and processing. Per user/per month charge to client. • Application Management Outsourcing (AMO) • Like ASP but Customer owns hardware and processing. Per user/per month charge to client. • Business Process Outsourcing (BPO) • The client delegates all or a major portion of an entire business function to a vendor (Apps Hosting Provider) in a long term relationship (>1 year) (e.g. handling procurement of all non production goods). Apps Hosting Provider has license.

17. Application Hosting: Benefits • Easy ERP. Outsourcing makes ERP simpler. The alliance is a new approach that allows companies to obtain the advantages of ERP without the risk, concern, or complexity they associate with ERP. • Frees IT. Outsourcing allows CIOs to achieve their goals for ERP. They don't have to get involved in ERP implementation and can focus their time and staff on other strategic initiatives. • Cost-effective. Outsourcing alliance partners know our industry and are flexible and concerned about cost issues. Outsourcing allows mid-size companies to: • Obtain a world class ERP package they thought they could not afford • Reduce initial capital investment while obtaining the latest technology • Reduce personnel costs, hiring, training, retention, etc. • Don't need personnel for DB administration, OS administration, Basis admins, SYSOPS, etc. (cost reducers) • Provide predictable TCO for ERP applications • Provide known ongoing production costs

18. References mySAP.com • Lockheed Martin Missiles and Fire Control, USA • "We believe that we can easily achieve significant cost and cycle-time reduction whenever we are able to build a network with the customer,the suppliers, and ourselves in a real-time collaborative environment.SAP B2B has allowed us to create the best procurement model for the future of our company and our corporation and is a critical tool toward building that real-time partnership environment with our customers." Bob Proffitt, Manager of Sourcing and Business Development, Lockheed Martin Missiles and Fire Control, USA • FC Bayern Munich e.V., Germany • "Thanks to the mySAP.com solution and taking up e-commerce, our merchandising activities have become more efficient and customer-friendly. Our fans receive their merchandise even quicker, and our customer service has improved noticeably. We´ve put our merchandising on a Champions League level. If we're going to adopt e-business, then we're going to do it right." Uli Hoeneß, Manager, FC Bayern Munich e.V., Germany. • Check out the full story at http://www.sap.com/mysap/

19. mySAP.com for Universities • Besides e-mail, shopping, and information (traditional use of the Internet) • What Do Web Users Want In The Way Of New Internet Services? • The number two service AOL subscribers indicate they want in future (69% so indicating) "Taking Online Courses” at colleges/universities. • AOL Survey reported in 12/8/99 BUSINESS INVESTORS DAILY p. A12).

20. Prescient Consulting, L.L.C. Implementation Partner Focus:Public Sector Higher Education, Supply Chain Management (Retail, AFS, CPG) Human Resources Contact:Two Concourse Pkwy., Suite 275 Atlanta, GA 30328, U.S.A. Bernd Heesen Phone: (770) 350-1860 Ext. 3351www.prescientconsulting.com e-mail: bernd.heesen@prescientconsulting.com