1 e & y consulting “from thought to finish” alain olivier director ecommerce service line...

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1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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Page 1: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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E & YConsulting

“From thought to finish”

Alain OlivierDirector

eCommerce Service Line Leader

Page 2: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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The “Electronic Commerce” phenomenon is unavoidable...

“Electronic Commerce is conducting or enabling the buying and selling of goods or services through electronic networks, including the Internet.”

E&Y Definition

0

50

100

150

200

250

Millions of

InternetWorld-wide

users

1994 1996 2000 2002

27m

60m

35m34m

240mIDC Research

Booz Allenand Hamilton

200mDurlacher

Media

190m

160m

EITO

1998

In 2002, there will be 200 millionsusers connected world-wide (+/-40 m)

Time to reach 50 M users :

Radio

TV

38 years

13 years

PC

Internet

16 years

4 years

Source: The emerging digital economy, US Department of Commerce

The rate at which successful technologies are adopted is rising

Page 3: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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Why this interest in eCommerce ?The rapid growth of the Connected Economy ischanging the fundamental Business Model

Supply chains are shortening and integrating

with the customer connections

Increasing competition from New Entrants for

deeper and broader customer relationship

Use of technology (GSM, Internet, Satellites, …) by customers for services and

products is growing exponentially

New business entities emerging from disaggregation,

consolidation (M&A) of traditional business models

Migration of conventional “business

models” towards “electronic market” places accelerating

Globalisation ofcommerce

ConnectivitySpeed

Intangibles

Page 4: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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The phenomenon is complex…

Because it is global and the supporting technologies enable interactive exchange of content rich information anywhere, anytime, at light speed

1

Because it impacts the whole organisation and necessitates :• to reformulate entreprise strategy ( strategic level)• to review the entire information flow external and internal ( operational level)• the use of complex new technologies constantly evolving ( technical level)

2

Page 5: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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What to do…

Key Points

1. Integrate eCommerce in every development strategy

2. Identify and understand strength lines

3. Define a clear and precise strategy

4. Be ambitious

5. Quantify objectives

6. Be compliant with new technologies and emerging standards

7. Develop interactive communication capacity

8. Integrate the whole transaction chain

9. Manage competencies and knowledge

10. Master security

Page 6: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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1. Integrate eCommerce in every development strategy…

New technologies drastically change the way entreprises interact. They open new strategical perspectives …

• accelerated development of new products• creation of new market segments • definition of new distribution circuits• optimisation of value of exchanges between partners (clients, suppliers, bank, administrations, …)

EnterpriseSuppliers

Customers

VALUE NETWORKS - Content Stds.

- Net Applications- Process Stds.

ElectronicMarketplaces

Direct Access CollaborationDB DB

Partners

Banks

Page 7: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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2. Identify and understand strength lines

• personalise the offer by micro-segments of market• propose locally a global offer• take into account client needs and individual wishes • better convince thanks to interactivity• better understand competition • better compare with competitors• have access to the best available resources on the market• build cross-border alliances • differentiate by standing on the leading edge for innovation• simplify administrative procedures• realise scaling up benefit and reduce operational cost• redesign in a modern and harmonious way integration of entreprise systems

Electronic Commerce enables to :

Page 8: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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3. Define a clear and precise strategy

Evaluate current situation

• identify and evaluate current initiatives • analyse market trends• analyse competitors behaviour• identify critical success factors• build a matrix to classify opportunities• analyse the entity receptivity to eCommerce (processus, systems, people)

Ph

ase 1

Develop a strategy

• define strategical objectives• list and position candidate initiatives (projects) • identify important processes• define roles and responsibilities• specify guide-lines to lead the necessary technical change • establish priorities• define action plan

Ph

ase 2

Page 9: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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4. Be ambitious…

1991 1996 2001

EC Scope EC Scope

Sponsor Sponsor

Applications Applications

Strategy Strategy

Thousandsclients

Thousandsclients

IT DepartmentIT Department

Modification of existing

applications

Modification of existing

applications

Just-in-timeJust-in-time

DataInterchange

(EDI)

DataInterchange

(EDI)

Millions clients

Millions clients

Marketing Department

Marketing Department

Specific applications

Specific applications

Optimisation of prod. chain

Optimisation of prod. chain

Internet E-Markets

Internet E-Markets

GlobalEconomyGlobal

Economy

Top ManagementTop Management

eCommercePackage

eCommercePackage

Value NetworksValue Networks

EDI + EC Integration

EDI + EC Integration

Page 10: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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5. Quantify objectives

It’s necessary to set-up objectives through measurable criteria’s

e.g. : • profit increase from 30 to 40 %• administrative staff productivity increase 15 %• commercial forecast error reduction 50 to 60 %• time to react to customer request reduced by half • revenue increase for a specific product 100 %

%

%

%

%

%

%

%

%

0 50 100 150 200 250 300 350 400 450 500

%

Page 11: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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6. Be compliant and evaluate new technologies and emerging standards

Technological

Visibility

Time

Excessive

hopes DesillusionProduction

platform

Wearable Computers

Biometrics

On-line communities

Internet TV

E-Cash

xDSL

XML

Knowledge Management

Extranets

Agents

Streaming Media over Web

VRML

Java Plateform

Network Computers

Push

Videoconference Vocal Recognition

Personal Digital Assistant Data Mining

Message Brokers

Intranet publishing

Type A Type B Type C

Page 12: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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7. Develop interactive communication capacity

From mass marketing to micro marketing

Page 13: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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8. Integrate all functions

Marketing

Sales

Production

Administration

CustomerServices

Added Value

Internal Systems

Page 14: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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9. Manage competencies and knowledge (Knowledge Management)

• strengthen competencies• learn faster than competitors

• innovation• agility•efficiency

• costs• “time to market”

• sales and margin• market share• Customer service• quality• new products

… a discipline that promotes an integrated approach to identifying, managing and sharing all of an enterprise’s information assets …(Gartner Group - 1996)

… Knowledge and information are critical to the organization’s survival in an uncertain future …(Ernst & Young - 1997)

Page 15: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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10. Master security and manage risks

“Technologies exist, procedures exist… It’s probably the easiest problem to solve… but maybe not the less expensive .”

It’s necessary to frequently …

• raise awareness and train personnel • redesign structures• control strict application of security rules• verify conformity of equipments to security rules

Page 16: 1 E & Y Consulting “From thought to finish” Alain Olivier Director eCommerce Service Line Leader

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Projects samples and impactsProjects samples and impacts

Customers

Business Partners

A Portfolio of Opportunities CO-OPERATIVE PRODUCT DEVELOPMENT & PLACEMENT

Eg: Collaborate on product design or share ‘portal’ into common customer base speed to market and penetration

EFFICIENT ELECTRONIC PROCUREMENT

Eg: Buy all commodity and consumable items electronically Cost savings

NEW VIRTUAL BUSINESSES

Eg: design new business model unencumbered by ‘bricks and mortar’ legacy flexibility and cost advantage

TRANSFORMING BUSINESS TO BUSINESS RELATIONSHIPS

Eg: launch extranets to share information, increase inter- dependence and reduce admin Responsiveness and cost advantage

DEEPENING RELATIONSHIP WITH CUSTOMERS

Eg: launch interactive TV or mobile phone services to sell, serve and inform large customer base Loyalty, retention and cost advantage

EMPLOYEE SELF SERVICE

Eg: Provide direct access and update of internal and external information (HR, Pensions, Travel, Financial advice, shopping Loyalty and cost savings

INTEGRATED SUPPLY CHAIN

Eg: Link customer orders through to raw materials management Responsiveness and cost savings

Enterprise

Employee

Suppliers