1. IDS Scheer AG-1 03/99 Ho Nai Choon President IDS-Gintic Pte Ltd Email: ncho@gintic.gov.sg E-Business and the Networked Economy

2. IDS Scheer AG-2 03/99 Agenda Introduction to E-Business Organizational Trends New concept of ECM: Enterprise Commerce Management The needs for standardisation Examples of successful implementation

3. IDS Scheer AG-3 03/99 Introduction to eBusiness

4. IDS Scheer AG-4 03/99 E-Business ? Conducting Core Business Processes on Internet

5. IDS Scheer AG-5 03/99 The new network economy will be driven by 3 forces -- Connectivity, Speed and the Growth of Intangible Values. “ Blur : the speed of change in the connected economy “ by Stan Davis and Christopher Meyer

6. IDS Scheer AG-6 03/99 Organizational Trends

7. IDS Scheer AG-7 03/99 Two Major Trends in Organizations Networked Organization Learning Organization

8. IDS Scheer AG-8 03/99 Networked Organization

9. IDS Scheer AG-9 03/99 Learning Organization ( Virtual Corporate University)

10. IDS Scheer AG-10 03/99 The new concept of ECM : Enterprise Commerce Management

11. IDS Scheer AG-11 03/99 ECM is the blueprint for the next generation of corporate systems: ECM provides the model for the next generation of business systems, comprising process-oriented applications and services tied together by the Internet to support intercompany commerce. -AMR Research

12. IDS Scheer AG-12 03/99 By 2005, AMR Research believes that ERP, as we know it today, will be completely transformed. This trend is already underway:  Supply Chain Planning (SCP) applications are replacing the Enterprise Resource Planning (ERP) function.  E-procurement and strategic sourcing applications are gnawing away at the purchasing functions.  CRM has obliterated ERP’s rudimentary customer service functionality.  Web-based order management applications are moving from simple self-service capability to full-fledged order fulfillment systems, replacing ERP order entry.

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16. IDS Scheer AG-16 03/99 The different business partners and their business processes Exchange of products and services between the business partners Information flow between the business partners Financial flows between the business partners e-business applications to support the interenterprise business processes (e-Business Processes) Roles to define the process responsibilities Content of an ECM model

17. IDS Scheer AG-17 03/99 Implementation of e-Business Solutions ECM -Buisness Models ECM -Buisness Models ECM-Business Processes ECM-Business Processes ECM-Business Applications ECM-Business Applications E-Business Tools

18. IDS Scheer AG-18 03/99 The needs for standardization

19. IDS Scheer AG-19 03/99 Rosettanet RosettaNet is a consortium of major Information Technology, Electronic Components and Semiconductor Manufacturing companies working to create and implement industry-wide, open e-business process standards. These standards form a common e-business language, aligning processes between supply chain partners on a global basis.

20. IDS Scheer AG-20 03/99 Rosettanet Standards PIPs RosettaNet Partner Interface Processes™ (PIPs™) define business processes between trading partners. Dictionaries RosettaNet dictionaries provide a common set of properties for PIPs™. The RosettaNet Business Dictionary designates the properties used in basic business activities. RosettaNet Technical Dictionaries provide properties for defining products. RosettaNet Implementation Framework The RosettaNet Implementation Framework (RNIF) provides exchange protocols for quick and efficient implementation of PIPs™.

21. IDS Scheer AG-21 03/99 Two Myths… One Reality Myth One RosettaNet (and standards in general) are on the fast path to general acceptance. Myth Two Moving quickly to adopt RosettaNet provides you with a competitive edge in the marketplace. Reality Quickly and intelligently adopting RosettaNet and other strategic standards will increase your success in the networked economy.

22. IDS Scheer AG-22 03/99 So why RosettaNet? Standards are critical to conducting e-business worldwide. XML standards enable you to conduct business in real-time. RosettaNet is emerging as a leading XML standard for B2B. Early adoption enables you to blaze the trail. Leveraged properly RosettaNet can help you gain true competitive advantage.

23. IDS Scheer AG-23 03/99 Fulfill the promise of one to many and enables you to conduct e-business with multiple partners. Real-time transactions via XML instead of batched EDI. Standard messages on interoperable platform enables worldwide e- business. Application to Application Security Back-end Integration If Everyone Adopts a Standard

24. IDS Scheer AG-24 03/99 B2B Process Integration Benefits Source: PRTM/Supply Chain Management benchmarking study 10-16%Overall Productivity 25-50%Lowered Supply Chain Costs 30-50%Fulfillment Cycle Time Reduction 25-60%Inventory Reduction 40%Channel Returns & Scrap Reduction 15%Product Cost Reduction 16-28%Delivery Performance Typical Benefits Realized by Integrating the Supply Chain

25. IDS Scheer AG-25 03/99 Fast ROI through B2B Process Integration Leading Network Infrastructure company achieves ROI for various supply chain business processes in six months (average). Fastest ROI: Two weeks Longest ROI: Two years Major Networking Company shows $14 to $28 million per year cost savings by integrating New Product Introduction business processes.

26. IDS Scheer AG-26 03/99 Steps to Competitive Advantage Get in the game Adopt RosettaNet and other emerging standards early Affect the rules of the game Leverage your understanding of the standards and your business processes Win the game Align business processes to integrate your supply chain

27. IDS Scheer AG-27 03/99 Example of successful implementation

28. IDS Scheer AG-28 03/99 Common Vision at Intel Be the Leader in Supply Network Management èOperate the right multiple supply networks driven by business needs èExecute each network as a single, virtual enterprise enabled by the Internet

29. IDS Scheer AG-29 03/99 … and Supply Network Goals èDrive Cycle Time Reduction in all our businesses across the Supply Networks èDesign & Implement Agile/Flexible Supply Networks

30. IDS Scheer AG-30 03/99 To support the SCOR Model/Methodology Provides structure and common language including definition of process steps and metrics to model supply chain Reference Model provides a framework to configure supply chain Consistency of definition allows for effective evaluation With appropriate Tool, Time invested can yield value added results To explore integration with other planning and business process modeling activities

31. IDS Scheer AG-31 03/99 D1.6D1.5D1.3D1.2D1.1 D1.8D1.9D1.10D1.11 D1.12 D1.13 D1.4D1.7 ARIS EasySCOR utilized for SCOR Modeling Level One in EasySCOR Modeler Plan SourceMakeDeliver D0 Deliver Infrastructure D1 Deliver Stocked Products D2 Deliver Make-to-Order Products D3 Deliver Engineer-to-Order Products Level Two in EasySCOR Modeler Level Three in EasySCOR Modeler

32. IDS Scheer AG-32 03/99 SCOR Metrics Assessed at Level I & II PF = Production Flexibility, TLC = Total Logistics Cost, CCT = Cash-to-Cash Cycle Time, DP = Delivery Performance; AT = Asset Turns; xx = no tie; xx = tie

33. IDS Scheer AG-33 03/99 SCOR applied to B2B e-Commerce Leverage SCOR to develop around e-business scenario modeling Start with supply chain models Refine the model representation of B2B scenarios Drill down to the interchange process specification level Perform SCOR-based simulation Explore mapping of SCOR to the Rosettanet Work with both the Supply Chain Council and RosettaNet Siemens is committed in a joint effort Currently developing a Value Proposition statement and pilot plan Internal review process will precede SCC/Rosettanet proposal

34. IDS Scheer AG-34 03/99 Drill into Interchange Specification Export/ Transport Export/ Transport Subcontractor Seller Order Managerment Shipping Sales Order Production Reservation Planning Goods Receipt Processing Vehicle Specification/ Search Request via Internet Shipment Tracking Transport Control Vehicle Locating and Allocation Order Processing Order Tracking OEM DealerImporter IDS Scheer E-Business Scenarios will be used to visualize the flow of communication between business participants

35. IDS Scheer AG-35 03/99 Perform SCOR-based Simulation Use eSCOR for tpt/cost analysis Transfer ARIS Model into Gensym eSCOR Define products Define resources Run simulation

36. IDS Scheer AG-36 03/99 Potential Big Wins for SCOR Facilitate mapping of Level II & III metrics to Level I indicators Provide a “how-to” guidelines for applying SCOR beyond configuration analysis Drag and Drop SCOR modeling Cost/Time analysis through simulation SCOR-based B2B modeling Visualize SCOR metrics through integrated performance monitoring

37. IDS Scheer AG-37 03/99 Conclusion: New Economy, New Processes, New Standards