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From e-Transformation To c-Transformation: C-Commerce Enabling Strategy

From e-Transformation To c-Transformation: C-Commerce Enabling Strategy. 박 기한 박사 Entrue Consulting Partners. 목차. Ⅰ. Introduction to c-Transformation Ⅱ. Components of c-Transformation Ⅲ. Case Study: Cisco Systems’ e-Hub

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From e-Transformation To c-Transformation: C-Commerce Enabling Strategy

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  1. From e-Transformation To c-Transformation: C-Commerce Enabling Strategy 박 기한 박사 Entrue Consulting Partners

  2. 목차 Ⅰ. Introduction to c-Transformation Ⅱ. Components of c-Transformation Ⅲ. Case Study: Cisco Systems’ e-Hub Ⅳ. Realization of Collaboration

  3. Old World New World Centralized Distributed Organizational Size Organizational Value Positional Power Informational Power Company Customer Four Walls Mentality Extended Company Vertical Integration Core Competency Focus Labor vs. Management Employees and Partners Predictability Responsiveness and Flexibility Change is the Only Constant Source: Cisco Systems

  4. Industry Shifting: EMS IBM과 HP 등 실리콘밸리의 첨단업체 및 SONY, Hitachi 등 일본의 선진 업체들은 각각의 Value Chain을 Restructuring하여 강점을 가진 분야를 특화 시키고, 그 이외에는 전략적 파트너쉽을 통한 Outsourcing에 주력하는 추세를 보이고 있습니다. What is our Core Competency? Electronics Manufacturing Service BPO 재무/회계 PD 생산 물류 SVC R&D MKT 4PL Competitiveness through Partnership!!  BPO: Business Process Outsourcing  4PL: 4th Party Logistics

  5. Industry Shifting: Convergence 경쟁 환경에 있어서의 산업간 경계, 채널간 경계, 제품간 경계가 사라지고 있습니다. Industry Convergence Industry를 초월한 경쟁자의 등장 가속화 (ex: Telematics 산업에서 현대자동차와 SKT의 경쟁) 산업/제품간 경쟁구도의 변화 Product Convergence • 상이 제품간 경쟁의 가속화 • - 전화: 음성 Data 영상 • - PC : Data 영상 음성 • - TV : 영상 Data 음성 Channel Convergence 개인과 기업을 Internet으로 연결하는 Channel의 통합 (ex: PC/Mobile/Cable TV를 통합한 Broadband Portal의 등장)

  6. e-Transformation as a Strategic Differentiator Internet Infrastructure에 기반한 자사 Business Process의 Revolution 및 Value Added Business Model의 창출은 기업의 경쟁력 강화에 기여해 왔습니다. e-Transformation of a Company Process Revolution Brick and Mortar Business Brick and Click Business New Business Model

  7. What Happened to the Enterprise Walls 이러한 개별 기업들의 e-Transformation 노력은 기업 내 업무 프로세스의 효율화를 가져왔으나, Supply-Chain 관점에서의 기업 간 Transaction Cost는 여전히 높습니다. e-Transformed Company A e-Transformed Company B Intranet EAI Enterprise Portal Inner Enterprise Walls Supply-Chain Information Flow Material Flow Inter Enterprise Walls Fragmented Processes !!! Distribution Center Supplier Manufacturer Customer

  8. Not the Size, But the Speed Does Matter Dynamic하게 급변하는 환경 하에서 생존하기 위해서는 기업 내 조직 간의 정보 흐름 뿐만 아니라 거래하는 기업 간 정보 흐름의 가속화와 이에 따른 신속한 의사결정이 중요합니다. Enterprise Revolutionary Path Optimizing Enterprise Workforces Collaborative High Speed Business Decision Making High Speed of Inner-Enterprise Information Flow But, Bounded Rationality Streamlining Inter-Enterprise Information Flow Low Speed of Inner-Enterprise Information Flow

  9. Networked Supply Chain Supply-Network 상의 기업들은 인터넷을 통해 정보를 공유함으로써 불확실성을 최소화 할 수 있으며, 이에 따라 고객의 요구사항을 만족시키기 위한 협업을 수행하는 동시에 각자의 비용 최소화와 생산성 향상을 도모해야 합니다. Not a Chain but a Fabric of Relationships Enterprise Supported by S e a m l e s s Connectivity Retailers Partners Manufacturers Collectively Actingto Meet the Customer’s Needs Internet Resellers Customers Individual Cost Savings & Productivity Gains Suppliers Distribution Source: Cisco Systems

  10. Level of Collaboration 기업간 Collaboration은 단순 Transaction data의 교환을 위한 Interface Level, 다양한 유형의 정보를 교환할 수 있는 Integration Level, Extended Enterprise를 추구하는 Outsourcing Level로 발전하고 있습니다. Level of Collaboration Outsourcing Level (BPO, 3PL, EMS + ) Integration Level(B2Bi, eAI) Extended Enterprise (Strategic Partnership) Interface Level (EDI, e-mail) Seamless Connection Our Process, Your Company !!! Electronic Communication

  11. collaborative-Transformation 이와 같은 다양한 수준의 협업을 실현하기 위해서는 Supply-Network 상의 기업들이 필요에 따라 신속하게 서로의 Business Process를 연결시키고, 또 해체할 수 있는 유연한 협업 체계가 필요하며, 기업들의 이러한 역량 확보 활동을 collaborative-Transformation으로 정의합니다. collaborative-Transformation “자사의 Value Chain 상에서 요구되는 Collaboration Level을 정의하고, 이를 위해 선정된 전략적 Partner와의 Business Process 통합을 가능하게 하는 IT Planning 및 Implementation 활동” Enterprise C Enterprise B Enterprise A 경영 지원 인사 재무 회계 전략 PD 생산 물류 SVC R&D MKT Extended Enterprise 경영 지원 인사 재무 회계 전략 PD 생산 물류 SVC R&D MKT

  12. 목차 Ⅰ. Introduction to c-Transformation Ⅱ. Components of c-Transformation Ⅲ. Case Study: Cisco Systems’ e-Hub Ⅳ. Realization of Collaboration

  13. cXML ebXML xCBL eCo BizTalk RosettaNet 1999.3 Ariba 2001.5 UN/CEFACT OASIS 1996 CommerceOne 1998.8 CommerceNet 1999.5 Microsoft 1998.2 Leading co Transaction Protocol Standardization 다수의 기업 간에 다양한 유형의 정보를 신속하게 교환하기 위해서는 기업간의 거래에 있어서 Transaction Protocol의 표준화가 고려되어야 합니다. 기업간 Transaction Protocol의 표준화 노력 • Messaging • Trading • Partner • Reg/Rep • Business • Process • Core • Component • Messaging • Documents • Messaging • cXML • Documents • Procurement • Purchase • Order • Registry • Messaging • Documents • Inf. Items • Semantics (Electronics) (Semiconductor) • Core • component 1996 1998 1999 2000 + ( Source: KIEC ebXML workshop 2001 )

  14. Infra & Interface Standardization 기업 내부의 다양한 정보들을 파트너들과 교환하기 위해서는 Open Standard Technology 및 Protocol에 기반한 기업 내 Infra 및 외부와의 Interface 표준화가 필요합니다. Standard Infra & Interface Components Application Database Packaged Application (ERP, CRM … ) In-House “Legacy” Application DB Interface Packaged Interface Custom Interface JDBC J2EE CA J2EE CA Integration Backbone(Middleware - EAI, B2Bi) Integration Controller Web Service RosettaNet BPM Custom/Packaged Interface External Standard Interface Rules Base Partner’s System External Site Source: Cisco Systems

  15. Shared Applications 표준 Transaction Protocol을 통해 교환되는 Data를 가공하여 Information화 시키고, 이를 필요로 하는 Employee 및 Partner들에게 효과적으로 제공하기 위한 웹 기반의 다양한 어플리케이션들이 필요합니다. 연구 개발 B2E (Employee) 마케팅 구매 B2C (Customer) B2B (Supplier) 생산 영업 경영 지원 e-Procurement e-Manufacturing Workforce Optimization e-HR e-Learning KM Financial Management e-Sales & Customer Care Web Foundation (Open Standard)

  16. 목차 Ⅰ. Introduction to c-Transformation Ⅱ. Components of c-Transformation Ⅲ. Case Study: Cisco Systems’ e-Hub Ⅳ. Realization of Collaboration

  17. “Higher Peaks… Lower Valleys… Faster Transitions” High Tech Landscape • Trend to Outsourced Manufacturing • Dynamic and Complex Trading Communities • Increasing Velocity of Orders and Information • Globalization? Globalization! • Disruptive Technologies Source: Cisco Systems

  18. Outsourced Manufacturing: Benefits Repair / Business Strategic Design Technology PCBA BTO CTO NPI Marketing Development Refurbish • Flexible Capacity for Demand Variation • Access to Global Markets • Focus Resources on “Core Competencies” • Improved Asset Utilization • Overall Cost Reduction • Increased Velocity through the Supply Chain • NPI: New Product Introduction • PCBA: Printed Circuit Board Assemblies • BTO: Build-To-Order • CTO: Configure-To-Order Source: Solectron

  19. Outsourced Manufacturing: Challenges Key Challenges Common Impacts • Parts Shortages • Information Delays and Distortion between Levels in the Supply Chain • Planning Activities are not Synchronized and Closed Loop • Long Lead Times • Lower than Acceptable On-time Shipments • High Levels of Forecast Variability • Frequent Expediting • Lack of Visibility to Exception Conditions • No Inter-Enterprise Process Optimization • Excess Inventory “Mission Critical Activity without Visibility or Control” Source: Cisco Systems

  20. Prescription vs. Collaboration Two Possible Approaches to Managing Outsourcing Partners….. Specify Desired Outcomes Specify Process Manage by Exception Micro-Manage Optimize End-End Metrics Optimize Local Metrics PRESCRIPTION COLLABORATION Measure to Commitments Measure to Requests Maximize Total Value Maximize “My” Value Win-Win Zero-Sum … Collaboration Builds Long-term Value Source: Cisco Systems

  21. The Networked Supply Chain: eHub Model New Model Characteristics • Private Information Exchange Distributor • Central Point for All Cisco Supply Chain Information - Planning - Execution - Product Data - Expandable for Other Processes Component Carrier Cisco • Leverages Internet “Exchange” Technology and Open Standards • Supplements and Enhances Existing Execution Systems 3PL CM • Manages Supply/Demand Mismatches • Open to All Cisco Supply Chain Partners • CM: Contracted Manufacturer Source: Cisco Systems

  22. eHub Data Flow and Transformation INPUT – RN PIPs OUTPUT • Forecast data • Overdue Action Alerts • Supply Commit data • Supply/ Demand Mismatch Alerts Cisco Cisco • Demand data CM • Forecast Change Impact Alerts CM • Supply data • PO data • Partner Data Mismatches Distributor Distributor • Sales Order Data • Planning and Material Reports Supplier Supplier • Inventory data • Product Master Data • Ad-hoc Reports Automated Sharing of Key Data, Transformed into Information Allowing More Collaborative and Efficient Management of Extended Supply Chain Activities • RN: RosettaNet • PIPs: Partner Interface Processes Source: Cisco Systems

  23. eHub Home Page – Control Center Source: Cisco Systems

  24. Cisco Connected Supply Chain • 16 CM Sites • 1 Distributor • 26 Suppliers • 13 In-Progress • 15 @ Kick-off Foxconn NA CA MX TN FL TX MX MX PN PN NC CA RN RosettaNet(8) RN IN-PROGRESS FCI Pulse Viking AMD Celestica THAI Bel Fuse Intel Samsung Power One Unimicron Excellight Merix Hitachi Ltd RN indicates transition to RosettaNet Source: Cisco Systems

  25. Benefits of Collaboration • Reduction in End-End Cycle Time • Removal of Redundant and Non-Value Added Activity • Reduction in Overall Process Cost • Tighter Process Integration/ Optimization • Improved Working Relationships • Long-term Value Creation Source: Cisco Systems

  26. PRISM eLogistics eHUB Cisco Collaborative Activities Build Ship Design Source Plan Buy • End-End Supply Chain Visibility • Collaborative Planning • Supply Demand Alignment • Inventory Optimization • Design Library • Consolidation • Part Content Mgmt • Product Change Notices • Engineering Change • Notices • Global Fulfillment • via 3PL Network • Shipment Status • Visibility • Merge-In-Transit • Capability • Transportation • Optimization Manufacturing Connection Online (MCO) Source: Cisco Systems

  27. Key Enablers Today Clear Process Definition and Supporting Culture Integrated Technical Architecture (e.g. MCO) Industry Standard Communication Protocols RosettaNet ebXML • Tomorrow • Web Services (XML, SOAP, WSDL), • Rapid, Low Cost Connections • Ad hoc System and Process Integration • XML: Extensible Markup Language • SOAP: Simple Object Access Protocol • WSDL: Web Service Description Language Source: Cisco Systems

  28. 목차 Ⅰ. Introduction to c-Transformation Ⅱ. Components of c-Transformation Ⅲ. Case Study: Cisco Systems’ e-Hub Ⅳ. Realization of Collaboration

  29. Roadmap for Effective Collaboration Business Needs의 발굴에서 시작하여 실제 어플리케이션의 구축에 이르는 c-Transformation의 단계적인 수행절차는 다음과 같습니다. Define Data/Content Requirements Create IT Infra- structure Connect Partners Select Appropriate Partners IdentifyBusiness Need Create Incentives/ SLAs Platform for Collaboration DeliverScalableApplications DefineApplicationRequirements Staff with Your Top Cross-Functional Resources ! Source: Cisco Systems • SLAs: Service Level Agreements

  30. Business meets IT IT의 역할은 과거 Business 전략의 지원 도구에서 벗어나 c-Transformation을 가능하게 하는 Business Enabler로서의 역할을 수행해야 하며 이를 위해 IT/Business Alignment가 필요합니다. IT Enables New Capabilities and Roles IT Supports and Drives Business Strategy Trusted Advisor Value Creation Outcome Defined • Business Partnership • Enterprise Architecture • Internet Capabilities • IT an Integral part of the Business • Effective Use and Leverage of Technology and “Virtual” Resources Proactive Business Value Output Defined • Operations Review Process • SDLC processes • Metrics Focus on Cycle Time, Productivity, Service Quality • Supports and Enhances Business Strategy Reactive Input Defined • CFP Model • Standards Policies • Supports Business Strategy • IT seen as a Support Process Self Defined • IT Independent of Business • Governance Limits • IT seen as a “High” Cost, Non-Value Add • Focus on Technical Performance Time 2000 + Source: Cisco Systems

  31. 3 Months 6 Months 9 Months 12 Months 15 Months • Language • Inventory • Design B - B • Product Configuration • Delivery Dates • Planned Outages • Ticket Entry • Network Diags • Contract Man. • Product Catalog • Ticket Status • Lead Times • On-line Billing • Network Configuration • On-line Ordering • On-line Charging B - C • Product Catalogue • On-line Payment • Shipping & Track • Unified Fronted • Catalogue • Alarms • Career Development • Job Scout • Purchase Order • Expenses • Line Manager • Time & Leave Capture B - E • Project Finance Auth. • Financial Project • Web Directory • Benefits Iterative Planning Process 급변하는 환경에 대응하기 위해서는 지속적이고 반복적인 IT Planning 활동을 통해 c-Transformation을 실행에 옮겨야 합니다. On-going Activities (Every 90 Days) • Identify Business Collaboration Needs • Think In Supplier / Customer / Employee’s Shoes • Identify Friction Points & Solutions • Update Implementation Roadmap for Each Area 연구 개발 B2E (Employee) 구매 마케팅 B2C (Customer) B2B (Supplier) 영업 생산 경영 지원

  32. Finance Risk Human Resources Productivity Factor Time Early Mover Advantage Hit Rate Strategic Fit Frictionless Execution Prioritization with Business Impact 과제 우선순위의 선정은 자사의 Business에 미치는 Impact와 실행 가능성을 모두 고려하여 단기간에 성과를 낼 수 있는 과제가 선정되어야 합니다. Business Impact Employee Services - (Aggregate) E-Commerce Billing Project Finance Auth. Secure Customer Access Order Status Secure Customer Transaction Financial Project Reporting On-line Configuration of Services Network Configuration Ticketing Status Product Catalogue Web Directory Personalisation Unified Fronted Purchase Order Requests On-line Ordering Expenses Catalogue HIGH Inventory Alarms Benefits On-line Charging On-line Payment Security Line Manager HIGH On-line Billing Single Log-on MIS Business Impact Career Development SLA Info. Pricing Tools Shipping & Tracking Business Impact 3 Months Business Impact Design Call-back Job Scout 3 Months 6 Months Language LOW 6 Months 9 Months LOW LOW 9 Months 12 Months 9 Months 12 Months LOW (Hard) HIGH (Easy) LOW (Hard) HIGH (Easy) LOW (Hard) HIGH (Easy) Ease of Implementation 12 Months Ease of Implementation Ease of Implementation Ease-of-Implement Source: Cisco Systems

  33. Fast eTransformation Methodology Entrue Consulting Partners와 Cisco IBSG가 제공하는 Fast eTransformation 방법론은 정기적인 Business Unit 중심의 Workshop을 통해 Customer, Supplier 및 Employee 관점에서 Collaboration Impact가 큰 과제를 선정하여 이를 신속히 추진합니다. PHASE I. 4 to 6 Weeks PHASE II. 12 to 20 Weeks IBSG and Entrue Consulting Involvement (Possibly in stage 5, 6 also) BPR / SI / Implementation Top-down 5 1 Initiate Fast eTransformation Methodology 2 Define & Identification 4 NR Survey & NR Result Analysis Finalizing Initiatives 6 Analysis & Design 3 Entrue/Cisco Workshop 7 Bottom-up Build & Migration 1 2 3 4 5 6 7 • Set up project team • Interview with CEO/CIO • Agree on time planning • Analyze industry characteristics • Plan survey • Execute survey • Analyze survey results • Produce a survey report • Visioning • Friction points and solutions on B2B / B2E / B2C • Value creation & priority matrix • Roadmap for e-Biz initiatives • Create top-down initiatives • Combine both initiatives and finalize initiatives • Agree on the scope of each initiative • Identify & assess • Analyze • Design • Build • Implement • Survey user’s acceptance

  34. Fast eTransformation Methodology 자사와 협력사 현업의 주도적인 참여 하에 과제가 선정되고 컨설턴트의 지원을 통해 이를 신속하게 추진하는 Fast e-Transformation 방법론은, 전략적 정합성 및 단기적 성과를 보장함으로써 효과적인 기업의 c-Transformation을 지원합니다. 90 Days의 정기적 Workshop과 이행과제 Follow up을 통한 지속적인 성과 창출 단기적 계획과 실행, 정기적인 모니터링과 Feedback체계를 통해 궁극적으로 장기적인 IT혁신을 가속화 함 현업의 필요에 따른 Project의 추진이므로 구축된 시스템의 활용도 및 Financial Impact가 증가됨 자사 및 협력사 현업들의 Workshop을 통한 Friction Point와 Solution의 도출 선정 과제에 대한 중요성과 시급성이 명확하고 성과 지표에 따른 IT 구현이 구체화됨 State of the art Technology의 적용을 통한 IT Trend의 반영

  35. http://www.entrue.com Thanks for your attention From e-Transformation To c-Transformation: C-Commerce Enabling Strategy 박기한 박사 gihanpark@lgcns.com Entrue Consulting Partners

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