ERP Overview & Electronic
Commerce Case Study
Mitch Ruud
Director of Strategic Business Relationships
Great Plains
mruud@greatplains.com
Agenda Topics
• ERP Overview
• E-business building blocks
• Customer driven integration
• Customer driven optimization
• Future directions
Midmarket Business Drivers
• E-Business
• Getting closer to customers, strategic partners
and suppliers through a collaborative commerce
environment
• Global
• Knowledge management
• Skills shortage
• Y2K
Technology Drivers
• Expanding E-Commerce for business-to-
business and consumer to business
• Extended ERP solutions
• Expansion of MS BackOffice as midmarket
platform
• Increase in WAN bandwidth for converged
networks
• Workflow as decision driver for midmarket to
work intra/inter enterprise
Enterprise Resource Planning
• Integrates business functions such as
financial, manufacturing, distribution,
human resource and customer
relationship management
ERP Market in Malaysia
US$ million
120
100
80
1998
60 1999
2003
40
20
0
Source: IDC Asia/Pacific
Competitive landscape
SAP, Baan, Oracle,
Peoplesoft, JD Edwards, Vantive
Clarify
Great Plains, Epicor,
Lawson, Symix,
Navision, Best,
Ultimate, Sage,
Solomon
Intuit, Peachtree, Sage
“The Internet Changes Everything”
"The Internet changes everything that
went before… for companies [it offers] the
potential to reach ubiquitously their customers,
vendors, partners and employees."
- John Sidgmore, COO, WorldCom
E-business is only
beginning...
"Trying to assess the true importance and
function of the Net now is like asking the
Wright brothers at Kitty Hawk if they were
aware of the potential of American Airlines
Advantage Miles"
-Bran Ferren, Futurist and chief Disney "Imagineer"
B-to-B ecommerce-enabled
Organizations
Middle East Africa
2% 2% South America
1%
North America
12%
Europe
13%
Asia Pacific
70%
Source: Computer Economics
Asia Pacific E-Commerce
Growth 300
Business to 250
Business growth 200
form US $8 billion Business to
Business
in 1999 to US $ 150
Consumer to
280 billion in 100 Business
2003
50
Consumer to
Business growth 0
1999 2003
from US $5 billion
to US $40 billion GartnerGroup
Agenda Topics
• ERP Overview
• E-business building blocks
• Customer driven integration
• Customer driven optimization
• Future directions
E-business Strategy
Business Self
Intelligence Service
Electronic
Commerce
What is Business Intelligence?
• Making your companies data
strategic
• Provide easy access to the right
information at the right time
• Provide this access via thin client
technology
What is a Self-Service
Application?
• Business process driven
• The person closest to the process
initiates the action
• Eliminates duplication of effort
• Simplifies the process
What is e-commerce?
• Business to consumer
• Business to business
• Internet based procurement
• Interconnected businesses
Agenda Topics
• ERP Overview
• E-business building blocks
• Customer driven integration
• Customer driven optimization
• Future directions
Five Steps to Success in
Electronic Commerce
1) Set Strategy 4) Wire your
Company for
profit
2) Focus on the 5) Foster
End-Customer Customer
Loyalty
3) Redesign
Customer-Facing
Business
Processes
Customers.com - Patricia B. Seybold, Ronni T. Marshak
Agenda Topics
• ERP Overview
• E-business building blocks
• Customer driven integration
• Customer driven optimization
• Future directions
Eight Critical Success Factors
in E-commerce and E-business
• Target the right customers
– Measure lifetime value
• Own the customers total experience
– Who owns the customer?
• Streamline business processes that
impact the customer
– Make your company easy to do business with
• Provide a 360-degree view of the
customer relationship
– Capture every interaction
Customers.com - Patricia B. Seybold, Ronni T. Marshak
Critical Success Factors -
continued
• Let the customer help themselves
– Provide all the necessary information
• Help the customers do their jobs
– Provide the systems that they need
• Deliver personalized service
– Remember each interaction, build from
there
• Foster community
– Provide value in the interactions at all levels
Customers.com - Patricia B. Seybold, Ronni T. Marshak
Foundations of an Enterprise Solution
Front Office
Knowledge Management
Back Office
Electronic Business
Seamless Integration
E-Business Applications
Integrating Technologies
Business
Management Systems
Example of the Benefits of
BackOffice Integration
Redefining business processes
Inventory
Order Entry Order Process Fulfillment
Processing
Business Order
Method
Traditional
Manual Order
(i.e., 800#)
Non-Integrated
Online
Storefront
Integrated
E-commerce
Solution
Case Study – ToySmart.com
End Results
• As the Internet's leading retailer of “good toys”,
toysmart.com offers thousands of toys and children’s
products through its interactive Web site.
• Our business is up 1,000% compared to the same
period last year and this coming holiday shopping
season will be even busier. Our Great Plains system is
integral and crucial to how we do business online and
gives us the kind of control and real-time information
we require in order to compete effectively and to
handle our future sales and company growth.
David Lord, CEO, toysmart.com
End Results
Decreased:
Cost per transaction
toysmart.com decreased costs per transaction by
50%
Administrative staffing
Training time
Costs for electronic storefront inventory maintenance
Increased:
Real time update of inventory
Turn over of product
Agenda Topics
• ERP Overview
• E-business building blocks
• Customer driven integration
• Customer driven optimization
• Future directions
Transactive
Transactive
High
Content
User in charge
Self-Service
Value
Dynamic
Content
Dead Web
Content designer
Low Webmaster in charge in charge
Low Levels of personalization High
Source: Forrester Research, Inc.
Transactive Content-Building
Blocks
TRANSaction InterACTIVE
systems technologies
• Buy • Personalize
• Sell • Collaborate
• Pay T I • Search
• Debit/Credit • Query
• Log Transactive • Analyze
Content
Rich CONTENT
• HTML pages • Document databases
• Multimedia C • News
• SQL data • Product specs
Transactive Content -
Examples
T I
Transactive
www.dell.com www.ivillage.com
www.wellsfargo.com Content www.theglobe.com
www.amazon.com www.sidewalk.com
www.cdnow.com www.bankamerica.com
www.nytimes.com
www.hotwired.com
C
Application Benefit Chart
Electronic
High
Knowledge
Commerce Management
Supply Chain
Marketing / Customer
Management
Databases
Sales Automation Enterprise
Client Support & Help Desk Systems
Manufacturing &
Distribution & Logistics
Resource Planning
Human Resources Billing / Accounts Receivable
General Ledger
Low
Payroll Accounts Payable Disbursements
Low High
Business Risk
Digitally Connected Enterprises
Customer Partner Prospect Employee
Supplier
Business Owner Reporter
Digital User Interface Independence
Digital Transaction Transport
E-business Applications Commerce Services Business Network
Customer
Partner
Prospect
CPA
ERP Systems E-Transaction Integration Services Employee
Visitor
CRM Systems
Shareholder
IS Systems Virtual Communities
Analyst
External Systems Connectivity Business Owner
Interconnected Business Model
Process Flow
web based applications
End User / Consumer
Web Presence
Enterprise Applications
Enterprise Applications
(digitally trx. enabled)
Buyer - store front Seller
(digitally trx. enabled)
Supply Chain
- consumer - portals - business
- purchasing - purchase - retail
manager aggregator - gov’t
- buying group - agent - bank
- corporate - mall - verticals
purchasing - auctions - information
- employees - info. marts providers
- self service
web based applications
Information Flow
E-Business Key Learning
• The hardest part is getting internal
agreement
• A broad approach is needed
• Management of electronic
transactions is key
• Pace of change is unbelievable
• We truly are just beginning...
Questions and Answers