Transcript Document 7125240

e-Sourcing:
Picking up where ERP and
e-Procurement Fall Short
64157 電子商務模式設計與應用
國立中山大學企管所
2002 Spring, Week 4-1
太世科網路行銷公司
TASKCO Corporation
[email protected]
886-2-8772-2583
黃光彩 博士
太世科公司
2002/03/16
1
June 1, 2001
CONFIDENTIAL
Today’s Painful Reality
The first time you hear about a big purchase
is when you see the invoice.
Purchasing is considered “the enemy” by
your business units.
Best practices are for people with “more
time.”
Cycle time for sourcing projects can be as
long as 6 months.
2
CONFIDENTIAL
Agenda
What is Strategic Sourcing?
•Automating the Enterprise
e-Sourcing
e-Sourcing Solution
Integration: Putting it all together
IT e-Sourcing
3
CONFIDENTIAL
What is Strategic Sourcing?
Strategic sourcing is a disciplined process
which organizations implement to more
effectively purchase materials and
services from suppliers.
The process generates savings by reducing
product and operations costs through
consolidation of purchases, elimination of
duplicate and functionally equivalent
parts, and rationalizing suppliers to the
right number of partners.
4
CONFIDENTIAL
Why Strategic Sourcing?
Areas of Potential Purchasing Savings
73% of potential purchasing
savings are in sourcing.
• Resulting in savings of 2-4% overall
going right to the bottom line
• Some commodity areas can save more
than 20%
Source: CAPS, The Watch Group, A.T. Kearney analysis
5
CONFIDENTIAL
Evolution of Strategic Sourcing Solutions
Enterprise
Software
Vendors
Sophistication of Enterprise
Large enterprise,
sophisticated
purchasing group
Large enterprise,
unsophisticated
purchasing group
Small and
medium sized
business
Sourcing
Specialists
Point
Solution
Vendors
• Basic, hosted
software
• No consultants
• Limited software
• Many consultants
• Enterprise-class
software
• No consultants
Solution Capability
6
CONFIDENTIAL
Why an Enterprise Automation Software
Solution?
An Enterprise Automation Solution:
•is a new class of product that complements (not
replaces) existing enterprise systems.
•can be integrated with other enterprise systems for
maximum value (more on this later).
•gives unprecedented visibility into the sourcing
process including sensitive expenditure data.
•supports a consistent, disciplined process for sourcing.
•empowers the people you have.
•promotes enterprise-wide collaboration.
7
CONFIDENTIAL
Where does Strategic Sourcing fit?
e-Purchasing
Design
Collaboration
e-Sourcing
Negotiate
8
e-Procurement
Buy Off Of
CONFIDENTIAL
Strategic Sourcing is distinct from Transaction Execution
Demand
Generation
Spot Purchasing
Transaction
Execution
Ordering
Analyze
Orders/Spend
Assess Value &
Vendor Performance
Assess
Marketplace
1. Requisition
2. Approval
3. Order
Select
Strategy
Create & Manage
Contracts
Processing
Build RFP
& Analyze
Responses
1. Issue PO
2. Receive and Verify
3. Approve Invoice
4. Payment Settlement
ERP
Decide & Select
Supplier(s)
e-Procurement
Sourcing Project
Strategic
Sourcing
Negotiate with
Suppliers
e-Sourcing
9
CONFIDENTIAL
Automating the Enterprise
SFA / CRM
ERP
e-Procurement
e-Sourcing
Top-line Sales
Revenue
Operating Costs
& Efficiency
Bottom-line
Cost Savings
Only e-Sourcing focuses squarely on bottom-line cost savings
(the 73% of purchasing savings opportunity). It is estimated that
every $1 saved in sourcing is worth $5-25 in increased sales.
10
CONFIDENTIAL
Automating the Enterprise
SFA / CRM
ERP
e-Procurement
e-Sourcing
Percent of
Transactions
90%
10%
Percent of
Spend
20%
80%
“Most applications are focused on the 90% of transactions that
only represent about 20% of my costs. E-Sourcing, however, is
focused on the 10% of my transactions that make up about 80%
of my costs. You tell me – which is more important for my
business?”
- Roy Anderson, Director of Purchasing, John Hancock Financial
Services (20 years of corporate purchasing experience)
11
CONFIDENTIAL
Automating the Enterprise
Usual Order of
Implementation
Nature of
Automation
Big Technical
Challenges
Big Business
Challenges
SFA / CRM
ERP
e-Procurement
e-Sourcing
2
1
3
4
paper catalogs
and requisitions
negotiations and
decisions
e-catalog
normalization,
B2Bi standards
decision support,
spend data
acquisition
info consolidation
accounting and
and customer
order processing
communication
systems
integration,
personalization
EAI, reliability
and scalability
cultural change to adopt new business processes
(often driven top-down), politics of standards adoption
The usual order of implementation follows the emergence of these
advanced technologies. e-Sourcing automates more than putting paper
on the web; it automates human negotiations and decision making.
12
CONFIDENTIAL
Agenda
What is Strategic Sourcing?
•Automating the Enterprise
e-Sourcing
e-Sourcing Solution
Integration: Putting it all together
IT e-Sourcing
13
CONFIDENTIAL
A Process Viewpoint
Sourcing, then
Requisition to Pay Process
Inventory
Sourcing
Requisitioning
Buying
14
Delivery
Warehousing
Payables
Traffic
Logistics
CONFIDENTIAL
What is e-Sourcing?
Sourcing is the identification, evaluation, negotiation,
and configuration of new products/suppliers.
Typically used for the negotiation of blanket contracts,
strategic goods.
An online sourcing tool that allows buyers and
strategic sourcing specialists to obtain closed bids
(and/or conduct reverse auctions) in a way that:
Gives consistent automated RFx creation,
management and analysis
Increases efficiency by
standardizing work processes
Qualifies new vendors and updates
data/information on existing suppliers
15
CONFIDENTIAL
e-Sourcing Process
Execution &
Compliance
Sourcing-Ready
Suppliers

Needs Definition
& Aggregation


Enterprise
Compliance &
Analysis
Supplier
Management


RFx &
Negotiation
Contract
Establishment
Market discovery
• RFI / RFP
• RFQ, Reverse Auction
• Negotiation
• Decision Support Tools
Market Making &
Event Support
16
CONFIDENTIAL
Defining the e-Sourcing Framework.
17
CONFIDENTIAL
Sourcing cycle provides the greatest opportunity
for procurement savings.
Key savings opportunities
Inventory
holding costs
1%
Maverick
buying
8%
Procurement
operating
costs
1%
Addressable
sourcing
spend
73%
18
Inventory
17%
Sources: CRPS, The Wacht Group,
AT Kearney
CONFIDENTIAL
However, sourcing remains a long, tedious
process at most organizations.
Searching for/identifying appropriate suppliers (53%)
Managing/communicating preferred supplier list (7%)
RFQ development (10%)
RFQ response/receipt (7%)
Screening/sorting proposals (20%)
Contract negotiation (11%)
Average sourcing cycle = 3.3 months to 4.2 months
Source: Aberdeen Group
19
CONFIDENTIAL
Multiple Internet models target the sourcing cycle.
Requirements/supplier identification/evaluation
• OpenRatings, Thomas Register, TPN Register, WorldPreferred.com, etc.
e-Marketplaces
• BizBuyer, Chemconnect, e-Steel, National Transportation Exchange,
PlasticsNet, PartMiner, Ariba (SupplierMarket.com), etc.
Auction/exchange software
• Commerce One (CommerceBid), Moai, OpenSite, Ariba
(TradingDynamics), etc.
Aggregation/outsourced purchasing
• AlphaDog, Demandline, EDS/CoNext, ICG Commerce, etc.
Sourcing solutions/services
• Agile, eBreviate, Emptoris, FreeMarkets, Mindflow Technologies,
ShareMax, Webango, etc.
20
CONFIDENTIAL
How Internet sourcing can benefit your organization.
Reduction in prices of materials/services (5% - 20%)
• Rapidly establish competitive bidding space
• Access new suppliers
• Expand geographical reach
Shorter procurement cycles (25% to 30%)
• Automate the RFP/RFQ process
• Streamline order-to-pay processes
Reduce administration costs
• Improve buyer productivity
• Reduce/eliminate paper-based processes
Improve ability to create/manage optimal supply
base
• Improved market data
• Minimize demand peaks
21
CONFIDENTIAL
Early “sourcing” solutions focused on dynamic pricing.
Traditional pricing: Prices set by hypothetical
forecasts and cost plans.
Dynamic pricing: Prices established in
real-time by existing market conditions (i.e., actual
supply and demand.)
• From buyer’s point of view = Reverse Auctions
Effective for standard/commodity products
• Oil, gas, electricity, broadband, excess assets, inventories,
etc.
22
CONFIDENTIAL
Business negotiations need to determine the Lowest
Total Cost solution.
The most effective companies will be those that can
establish the most efficient global supply chains at the
lowest TOTAL COST.
• Includes sum cost of price, quality, technical expertise, delivery, etc.
Negotiations and sourcing decisions based on multiple
parameters to deliver the lowest total cost supply chain.
23
CONFIDENTIAL
Key negotiation functionality required for effective
support of true B2B interactions.
Multivariable negotiations
• Negotiations based on multiple parameters beyond just price,
including quality, delivery, warranty, and financial terms.
Multi-stage negotiations
• RFI – RFP – RFQ – Award
Multi-threaded negotiations
• “Back and forth” buyer-supplier interactions
Synchronous supply chain negotiations
• Ensuring purchases are not made without due consideration of
availability/cost of services required to use and deliver these
products
24
CONFIDENTIAL
Selecting an e-Sourcing framework.
Company: large enterprise
•Strategy: purchase a negotiated commerce or e-Sourcing
application.
Company: mid-size
•Strategy: outsource sourcing of particular products to
procurement service provider.
Company: small
•Strategy: leverage dynamic trading platform and supply
network of e-Market/exchange.
25
CONFIDENTIAL
Strategic Sourcing Categorization
HIGH “Leverage” Purchases
Capital Plant
“Strategic” Purchases
Direct Materials
Dollar Value
“Marginal” Purchases
“Tactical” Purchases
Indirect Materials
Indirect Materials
LOW
LOW
HIGH
Transactional Volume
26
CONFIDENTIAL
Purchase Category - Examples
High
Contract
Value
Low
Contract
Value
- Compressors
- Motors
- Process Equipment
- Construction Contracts
- Environmental Contracts
- Chemical Feedstocks
- Utilities
- Valves/Instruments
- Office Supplies
- Computer Supplies
- Office Furniture
- Lab/Safety Supplies
- Electrical Supplies
- Distribution Chemicals
- Local Services
- Emergency Purchases
- Incidental Materials
Low Transactional Volume
27
High Transactional Volume
CONFIDENTIAL
Approach– Capital Purchases
HIGH
Capital Purchases
ERP
Procurement
Dollar Value
LOW
Transactional Volume
28
CONFIDENTIAL
Approach– Direct Purchases
HIGH
Direct Purchases
ERP+
Connection
Dollar Value
HIGH
Transactional Volume
29
CONFIDENTIAL
Approach– Marginal Purchases
Dollar Value
Marginal Purchases
LOW
LOW
Transactional Volume
30
CONFIDENTIAL
Approach– Tactical Purchases
Dollar Value
Tactical Purchases
LOW
Web Buyer
HIGH
Transactional Volume
31
CONFIDENTIAL
Web Buyer Function – Tactical Purchase
• Portal to communicate how to purchase supplies and materials.
• On-line web-based ordering for many of these
(using Web Buyer style)
primary use is for “tactical purchases”
(usually consumables)
• Cost savings created by:
- Lower transaction costs
- Compliance to leveraged agreements
- Data to create better deals and monitor compliance
- Supplier base consolidation
- Broad deployment globally
32
CONFIDENTIAL
Agenda
What is Strategic Sourcing?
•Automating the Enterprise
e-Sourcing
e-Sourcing Solution
Integration: Putting it all together
IT e-Sourcing
33
CONFIDENTIAL
Requirements for an e-Sourcing Solution
A complete, holistic solution includes:
1.
2.
3.
4.
5.
6.
7.
Expenditure Analysis
Project Management
RFP / RFQ
Reverse Auctions
Contract Management
Vendor Management
Sourcing Workbench
Ideally, all modules are integrated and
designed to work together
34
CONFIDENTIAL
A Frictionless Sourcing Example
Expenditure
Project,
Collaborative,
Contract,
Analysis
online
and Vendor
supplier
Management
negotiations
35
CONFIDENTIAL
RFP Proposal with Scoring Decision Support
36
CONFIDENTIAL
E-Sourcing Software
•QuickSource™
•QuickSource is the only e-sourcing solution
designed for sourcing professionals by
sourcing professionals. This comprehensive
full-featured e-sourcing platform is local for
automating, streamlining and providing
visibility into the sourcing processes. Based
on the industry leading e-sourcing
technologies developed by FreeMarkets,
QuickSource contains a robust set of features
that allow buyers to create and conduct online
auctions right from their desktops
37
CONFIDENTIAL
E-Sourcing Software
•QuickSource™
•Create re-usable templates for
Requests for Information and
Quotations (RFxs)
•Collaborate with and manage suppliers
•Create and run a wide variety of realtime, competitive bidding and
negotiation activities
•Conduct offline negotiations
38
CONFIDENTIAL
E-Sourcing Software
•QuickSource™ Add on Services
•Market Operations Services
•E-Sourcing Support Desk
•QuickSource Supplier Training
•QuickSource™ Rapid Implementation and
Deployment
•15 Days to e-sourcing process
•QuickSource website readiness
•QuickSource team readiness
•QuickSource launch preparation
39
CONFIDENTIAL
E-Sourcing Services
•FullSource™
(E-Sourcing Acceleration Program)
•19% average savings per contract for
direct and indirect goods and services
•30-50% cycle time reduction in the
sourcing decision process
•Average return on investment of more
than 20 to 1
•An average of nine more suppliers per
negotiation for greater pricing
competition
40
CONFIDENTIAL
•FullSource™
(E-Source Acceleration Program)
•Industry-specific program management driven
by a dedicated, experienced team who will help
design and implement a unique e-sourcing
program for each customer
•Expert e-sourcing services in hundreds of
spend categories
•Information and knowledge about specific
commodities and supply market dynamics
•FreeMarkets' industry-leading, real-time,
advanced e-sourcing technology
•24-hour technical and operational support in
over 30 languages
41
CONFIDENTIAL
•FullSource™
(E-Sourcing Software )
•Transformation bidding
•Index bidding
•Net Present Value (NPV) bidding
•Multiple Offering bidding
•Rank-Only bidding
FreeMarkets is the only e-sourcing solution
provider willing to share responsibility with
an organization to meet its strategic
sourcing objectives.
42
CONFIDENTIAL
•FullSource™
Global Market Operations
•FreeMarkets' Global Market Operations Centers
(GMOCs) are located in Singapore, Brussels,
and Pittsburgh to service customers across
world markets
• Coordinate and test events Develop and
enforce market rules
•Proactively monitor bidder connections and
bidding activity
•Provide surrogate bidding for any bidders that
experience technical difficulties
•Train and support all participating suppliers
•Provide real-time event support
43
CONFIDENTIAL
•Asset Management
•Fast, market-based pricing when selling surplus
assets
•Quick, easy access to needed assets for buyers
•A variety of sales venues, including Online Asset
Auctions and Onsite Asset Auctions
•Support by dedicated customer service teams
•Ability to create a fair, neutral marketplace with
equal access for all participants
•Public or private access to a global asset
database and trading environment
•FreeMarkets Online Asset Auctions
•FreeMarkets Onsite Asset Auctions
44
CONFIDENTIAL
Future Functions
•FreeMarkets continues to develop end-to-end enterprise esourcing platform code named Sierra Nevada
oFunctions of Sierra Nevada
o1) Collecting and analyzing data
o2) Developing sourcing strategies
o3) Locating, managing, and evaluating suppliers
o4) Creating requests for information, proposals, and
quotations
o5) Selecting price discovery methods and executing
negotiations
o6) Analyzing price discovery responses
o7) Awarding contracts and tracking implementation
o8) Managing awarded contracts and supplier performance
•Release of Sierra Nevada in summer of 2002
45
CONFIDENTIAL
Intelligent Trading Networks.
46
CONFIDENTIAL
OnSite: General Motors
Background:
• #1 automobile manufacturer
• Expenditures = $87 billion/yr.
• 30,000 suppliers worldwide
e-Sourcing strategy:
• 64 reverse auctions (Nov. ’99 – Sep. ’00)
– Representing $500 million-plus of transactions
– Including $10 million via forward auctions
– 25 different commodity types
– Primarily commodity/low-engineered parts
– Events involved 470 suppliers
47
CONFIDENTIAL
OnSite: General Motors
Results:
•Typical savings of 3% to 30%
•Reduced process cycles to 3 to 4 weeks.
•WARNING: Bid transparency is not always to
buyer’s benefit
Future plans:
–Multi-variable RFQ/evaluations
–Multi-currency
–Extend to more complex products
48
CONFIDENTIAL
Agenda
What is Strategic Sourcing?
•Automating the Enterprise
e-Sourcing
e-Sourcing Solution
Integration: Putting it all together
IT e-Sourcing
49
CONFIDENTIAL
Systems Integration
Many e-Sourcing modules can add immediate
value without any enterprise systems
integration.
However, large incremental value is realized
with each integration including your ERP, eProcurement, e-Catalog, data warehouse, and
other enterprise systems.
50
CONFIDENTIAL
Systems Integration Points
e-Procurement System
Purchase
Requisitions
Contract
Terms
DW
AP
AR, Vendor
Performance Data
Material
Master
Vendors
Requisitions
Scorecard
Data
EAI
Purchasing
Spend
Data
Platform
News,
Content,
Events
Commodity
Info
XML,
HTML
RFI,
Sourcing
Analysis
RFPs/RFQs,
Reverse
Auctions
HTTP
Vendor
Spot Pricing,
Commodity
Pricing
Vendor
RFQ XML
Sourcing
Sourcing
DB
Data
Net
Markets
Email
B2Bi
MRP
XML
Sourcing
Workbench
Requisitions
ERP System
Third-party
Content
Providers
e-Sourcing
System
Vendor
Sales System
Catalog
Quote XML
Vendor XML
SOAP
Catalog
UDDI
Registry
UDDI Server
51
CONFIDENTIAL
Agenda
What is Strategic Sourcing?
•Automating the Enterprise
e-Sourcing
e-Sourcing Solution
Integration: Putting it all together
IT e-Sourcing
52
CONFIDENTIAL
IBM e-Sourcing – Business Hosting
53
CONFIDENTIAL
What is IBM e-business Hosting
e-business hosting includes a full spectrum of services that a customer
may acquire from an external provider to support the deployment and
operation of their business processes and applications on the web.
The service might range from the basic provisioning of secure data
centre facilities, redundant network connectivity and equipment rack
and floor space (co-location), to varying degrees of standard managed
services through to our focus on highly customised solutions
delivering enterprise applications over IP networks.
e-business hosting is comprised of modular service elements that may
be selected by customers at any time in the life of the service
engagement as their hosting needs evolve.
Do more business up front, and secure your future business growth
54
CONFIDENTIAL
Why Customers Choose Hosting
Business
Drivers
Technical
Freedom
to focus on running
your business
Faster
Access
to respond quickly to
market changes
More
cost-effective than
in-house
Cost
Lack
Companies
Not
Forrester
Research, May 2000
Enhanced
security
Enhanced
reliability
Reduced
Why
Over
In-House
Internet
connectivity
Flexibility
Hosting
optimisation
High-bandwidth
ROI potential
Choose
to specialised skills
Performance
time-to-market
Maximise
Drivers
45%
Savings
36%
of Expertise
27%
Core Competency
Reliability
18%
Responsiveness
18%
Savings
9%
of Technology
9%
Time
Source:
Lack
risk
55
CONFIDENTIAL
The Continuum of Hosting Services
Level of Service
Complex
Basic
Low
Level of Integration
56
High
CONFIDENTIAL
Hosting Services
Challengers
15.1%



11.1%
3.0%
3.7%

Source:
15.1%
4.2%
Ability to execute
Global Services
Exodus
34.4%
Verio
Next 10
Qwest
Digex
Global Center
PSI Net
1.4%
Genuity
3.8%
2.3%
WorldCom
2.7%
EarthLink
3.1%
Other

IBM
Exodus
AT&T
UUNet
UUNet
IBM
Qwest
Qwest
Digex
Genuity Digex
Data Return
EDS
EDS
Navisite
Digital Island
Intira
Cable
Cable &
& Wireless
Wireless
Rackspace
PSINet
PSINet
Globix
IDC,
4/2001
IBM's
Leaders
As of 12/00
Web Hosting Revenue Share as of 12/31/2000
Niche Players
Visionaries
Completeness of Vision
Recognised
Leadership in the Market, and in the
scope of its e-business Hosted Solutions
57
CONFIDENTIAL
Some of IBM’s Customers
Financial
Services
Wingspan
Bank
Citigroup,
Inc.
JP
Morgan
Moody's
Investors Service
NYSE
TAHO
Commerce
LLC
Group,
ICSA
T
Allied
Communications
Calberson
Retail/Services
GRAMMY
Awards
Argus
Telecom
Italia
Bouygues
ISP/ASP
Wimbledon
ASP-One,
Garros
Office Solutions
Infrascope
Catapulse
Expansionet
Danone
Thomson
Multimedia
Kellogg
BP
Telemarine
Public
Sector
US
Sears
Roebuck &
Company
GovernmentJobs.com
Victoria's
Directory
Health
Inc.
Electronics, Inc.
Macy's
Secret
Eli
Navy
American
School
Foundation
Tinde
Alerio
Sony
Aventis
Scoot
IKON
Industrial
iStarXchange
Holdings
Roland
Cahoot
Energy
Travel/Transportation
Care
Economic
for
Development
Lilly
I-TRAX.com
CareTouch
Pragmatix
58
CONFIDENTIAL
Universal Server Farm Architecture
The
Universal Server Farm v3
architecture delivers...
Secure
Internet

customer separation
Multi-layered
Consistent
Internet
User

Switch
Switch and
and Firewall
Firewall
firewalls
architecture

Web Layer
worldwide
Enhanced
scalability,
rapid change

Switch
Switch and
and Firewall
Firewall
Option
for dedicated
environment

Data Layer
Logical
design to enable
change via software from
remote locations

Switch
Switch and
and Firewall
Firewall
Cisco
and other industry
products, and proprietary
management tools
Private
Networks
59
Customer
Premise
CONFIDENTIAL
e-business Hosting - a Fully Managed Service
Account Support Structure
Security
Keynote, SurfAid
Standard Hardware Platforms
• pSeries (RS/6000), AIX
• xSeries (Netfinity), NT, Linux
• Sun, Solaris
Standard Application Servers
•
•
•
•
WebSphere
Domino
Microsoft IIS
Netscape
Granular Service Components
Custom Services
Systems Management
• Performance Management
• Backup and Recovery
Applications: Siebel, Broadvision, SAP,
Oracle, Websphere
60
CONFIDENTIAL
Multiple-ISP Internet Access Architecture
Internet/Other Private and Public Peered ISPs
ISP 1
IBM NOC
ISP 2
ISP 3
ROUTER
ISP 4
ROUTER

SWITCH
SWITCH
Ibm Administration &
Management Services

CUSTOMER WEB
ENVIRONMENT
Optional
Cross
Connect
POTS
61
CUSTOMER WEB
ENVIRONMENT
]
Bandwidth
Control
DOS Attack
Monitor
Level 3 VLAN
Architecture
Optional Redundant
Connections
e-business
Hosting Center
WAN
RTR
Customer
Premise
CONFIDENTIAL
Delivering Applications over an IP Network
62
CONFIDENTIAL
Application Hosting Services
Comprehensive
infrastructure and application management -provided by a team of e-business experts
Custom
High-availability,
Complex
System
Web
Overall
hosting solutions
site responsibility
Applications,
high-volume sites
operating systems,
servers
security solutions
Database
and application
installation and configuration
integration
site design and development
applications
and services
Advanced
Custom
monitoring
Performance,
Plan
capacity and change
management
Design
Manage
Run
Build
Test
63
CONFIDENTIAL
Hosted Applications
Alliances
with market-leading
application providers
Fully
managed infrastructure for Buy
and Supply, CRM, BI
hosting for
e-marketplace applications
IBM's
Websphere
Ariba
Technologies
Seamless
i2
Industry-leading
data flow for B2B
transactions
World-class
Trading
Single
Global
Technologies
SAP,
Siebel, Broadvision, Oracle,
support
Partner enabling
point of contact
e-business presence
500k+
worldwide EDI-enabled
partners
Customers
in 160 countries
IBM
hosts many of the world's
leading e-markets
64
CONFIDENTIAL
The Future: Building from Superior
e-Hosting Capabilities to e-Sourcing
Storage on Demand
Management Services
Infrastructure
Customer Apps
MIPS on Demand
e-markets
EDI
Applications
ASPs
Demand
Ariba / i2
On
WebSphere
Small Bus Solutions
Capacity
Bandwidth on Demand
Hosting Center Architecture
Hosting Facilities
65
CONFIDENTIAL
Advantage in Hosting
Provide your clients with the safest, most secure and
complete application hosting offering
• Enhance your chances of Winning
• Deliver a better service to your client
• Secure the on-going business
Many competitors are experiencing financial
difficulties
• Troubled providers need to raise capital to fund operations
• Downsizing can affect client service
• Too much is at stake to take a chance at being there when "the lights
are turned off"
66
CONFIDENTIAL
What does e-Sourcing bring to?
Work Processes For :
•RFx Creation and Development
– Customizable Templates
•Supplier Qualification / Vendor Management
•Electronic Transmission of Specs, Documents,
Drawings Etc.
•E-bidding
– Sealed Bid
– Reverse Auction / Forward Auction
•Expenditure/Bid Analysis
67
CONFIDENTIAL
Conclusion
73% of the potential cost savings are in sourcing –
yet today, sourcing is done completely manually.
If you’re a large enterprise with a sophisticated
purchasing group, enterprise software is the right
choice.
If you’re choosing enterprise software, you need
a holistic solution that addresses the entire
sourcing process.
68
CONFIDENTIAL
Efficient & Effective Procurement
Everyone on the same platform (intellectually &
physically)
Global scope
Choosing & using e- tools to help enable
improved work process
Supplier consolidation / leverage
Avoiding the maverick purchase
Measure results
69
CONFIDENTIAL