e-business in european smes

Road map for e-business implementation in Extended Enterprise

Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)

DISSEMINATION MEETING – 25 FEBRUARY, 2005 – SALERNO, ITALY

Presentazione progetto e-Volution

ing. Roberto CitarellaDip. di Ingegneria Meccanica

Università di Salerno




e-business in European SMEs

Business reality does not display the importance of e-business yet, partly ignorance of strategic importance Widely satisfaction with e-business, but no euphoria Current focus on e-commerce activities Most significant impacts of e-business still concern internal business processes Real potentials are in the value chain Unused potentials of ICT and e-business as the key enablers for Extended Enterprises




Spheres for e-business in Extended Enterprises and in e-volution

Business strategy

Business management system

Finances, controlling, administration process

Human resource management process

RTD and engineering process

Infrastructure process

Procurement Integrated Supply Chain Commerce

Bartsch, Th.: e-business in KMUs. IBM Unternehmensberatung Germany, 2001

e-business strategy Effective use of e-business opportunities and development of e-business strengths

Revenue

Productivity

Secure or increase revenue by increasing number of customers and by increasing customer satisfaction

Increase productivity by optimum use of organisation, processes and resources

Increase revenue

Reduce costs Reduce need for capital

business strategy




e-volution’s methodology concept

e-business road e-business road mapping modelmapping modele-business road e-business road mapping modelmapping model

I. I. II. II. III. III. IV. IV. V. V.

Based on approved models, e-volution offers an e-business road mapping model that fulfils the requirements of a systematic and goal-oriented planning of e-business implementation.

Software toolsSoftware toolsSoftware toolsSoftware tools

The e-business road mapping model is the starting point for the use of phase specific methods and software tools.

Training packageTraining packageTraining packageTraining package

The e-volution training package is for transfer and teaching how to apply the e-business road mapping model, methods and tools.

Content ServiceContent ServiceContent ServiceContent Service

The e-volution Content Service disseminates the e-business road mapping model with its methods and tools but also know-how about e-business.

The purpose of the e-volution methodology concept is the successful implementation of e-business in Extended Enterprises.




Expected project results according to the DoW

Enhancement of competitiveness and sustainable growth of European Extended Enterprises by successful use of e-business as means for value chain integration

e-business strategy kit “e-Volution”methodology concept

Application, validation, exploitation by test cases

Exploitation Dissemination

Web pageSoftware tools

Training material National IRGs

Content Service

DoW – Description of Work




Principle Extended Enterprise scenarios under consideration

Horizontal Extended Enterprises

mar

ket

• Organisation focus: value chain• Supplier-customer-relationships• Each entity adds value for the final product• Information flow follows material flow• One entity as market interface• Example: German Test Case

2nd tier supplier 1st tier supplier final producer end user

Vertical Extended Enterprises

mar

ket

• Market focus: combination of competencies, services/products to innovative, extended service/product

• More than one entity potentially as market interface• Entities can operate in same market• Example: Italian test case

final producer end user




Requirements for an e-business road mapping methodology

Methodical know-how, e.g.− Management methods

− Management instruments

Specialised know-how, e.g.− Business know-how: entity purpose and structure (goals,

organisation, processes, resources, utilities, goals)

− System know-how: Information and Communication Technologies

e-business life cycle

Road mapping is the process to develop a road map. Road mapping is an creative analysis of an organisation and its environment to prognosticate, visualise and plan the future. Road mapping is a systematic identification and analysis of expert know-how, the coordination of divergent meanings and expectations to predict and assess future developments in certain field.

Requirement analysis specifies the road mapping process content needs (tasks, methods, instruments)

e-volution aims to specify a generic e-business road mapping process that uses




System architecture concept (Task 3.1)

Integration platform

OrganisationModule

MarketModule

Web

DB

SME 1

SME 2

SME 3

SME n

Extended Enterprise

DB

DB

Web-services

Web-services enabler

• Component based task execution

• Ontology for communication means between different domain knowledge (3rd party applications)

• Interconnecting database management system (DBMS)

Market module concept (Task 3.2) Organisation module concept (Task 3.3) Integration platform concept (Task 3.4) Rules, mechanisms and update routines (Task 2.4)




Horizontal Extended Enterprises – different levels of information gathering

2nd tier supplier(operative partner)

1st tier supplier(operative partner)

final producer(operative partner)

EE level(co-ordinator)

given by individual strategy

goal definitionof the EE



goal prioritisationgiven by

individual strategygiven by

individual strategygiven by

individual strategy

processprioritisation

individual analysis

individual analysis

individual analysis

alignment if value adding fits

individual analysis

individual analysis

individual analysis

elimination of big differences

definition on EE level

given by individual organ.



goal definition

goal prioritisation

process prioritisation

core competence analysis

eOrganisation definition

eBiz abilities




Vertical Extended Enterprises – different levels of information gathering

final producer end userfinal producer

(operative partner)EE level

(co-ordinator)


goal definitionof the EE

goal prioritisationgiven by

individual strategy

processprioritisation

individual analysis

adjustment on each other (in

SWOT)

individual analysis

elimination of big differences

definition on EE level


goal definition

goal prioritisation

process prioritisation

core competence analysis

eOrganisation definition

eBiz abilities

Result:• information gathering to identify strength and weaknesses

on EE level are almost the same on vertical and horizontal EE organisations

• There is a small difference in having a view on the single competencies of the partners within the EE:

• in vertical EEsWhat kind of new products / services are possible with the competencies of each partner?

• in horizontal EEsDo the core competencies of each partner in the single stage of the value chain fit to the needed task/added value for the EE?

Ergo:• individual competence analysis could be

important for the SWOT – no direct impact on OM on EE level

• core competence alignment in horizontal EEs is important for OM




Phase II: CONCEPTIONDetailed e-business road mapping model phase

2.Conception

EE externalanalysis

EE internalanalysis

EE e-businessdefinition

Level 2: Phase steps

Level 1: Phase

Level 3: Tasks

Level 4: Activities

Opportunity andthreat (OT)definition

Trendsfinding

Trendsanalysis

Environment andsociety analysis

Law andpolitics analysis

Trendsfiltering

MarketSegmentation

Analysis

Market andeconomyanalysisCustomer

focussing

Attractivenessassessment of thedifferent P/M areas

EE externalanalysis

Specification ofexternal threats

and opportunities

Comparisonwith the

competitor

Marketanalysis

Trendsformatting

Trendsfocussing

Customerformatting

Competitorfocussing

Analysepurchasing

criteria/Customers

Customerfiltering

Customerfinding

Competitorfiltering

Competitorformatting

Science, researchand technology

analysis

Competitoranalysis

Assesproducts

and markets

E-business impactanalysis on the

Market andthe EE

Competitorfinding




Phase II: CONCEPTIONExternal analysis: Trend analysisE-sales trend filtering analysis

E-sales trend formatting analysis




Phase II: CONCEPTIONExternal analysis: Product and market assessment / opportunity-threat-definition

Opportunity-Threat analysis table

Product/Market areas identification based on attractiveness and EE competitive position

submission to the integration module

e-business in european smes

Documents