Online Procurement, Sourcing and Electronic Payments Division of Industrial Marketing and e-Commerce Lulea University of Technology November 29th – December 2nd, 2005 Course Overview:
We have moved from a world where procurement transitioned from offline to online processing with ERP systems in the 1990s, to self-service procurement in the mid 90s to supplier extranets and exchanges in the late 1990s, early 2000s. We are on the precipice of a new era for online sourcing, procurement and payments that will take us into a world of federated data pools with vertical and regional specific supplier content and product information that when synchronized will be the key to enable globalization for multi-nationals looking to gain local supply knowledge in remote corners of the world. eProcurement, Sourcing and the future of electronic payments will be redefined within the next 5 years by providing the foundation for the convergence of the physical world of things with the virtual world of content by facilitating the creation of the infrastructure for data exchange of EPC data from RFID with the product information that has been aggregated by online source to pay service providers. Global data convergence of product information management, global data synchronization and EPC data from technologies such as RFID will form the basis for the next generation of electronic business. How will this change the game for enterprises looking to enable their shared service centers for global sourcing and procurement with applications, portals and supplier content? What will the opportunities and challenges be for multi-nationals looking to gain access to source more raw materials and finished goods from Asia, Eastern Europe and South America? Is the federation of data pools to support future models for online source to pay sustainable if driven by standards organizations such as GS1 with the GDSN? What role will Global 2000 organizations have with continued investments in enterprise infrastructure to enable such data exchange?
Objectives / Outcomes: Define the basic fundamentals of eProcurement, Sourcing & Auctions, and Online Payments and chart the evolution of solutions to Supplier Extranets and Exchanges. Explore the role of open standards such as Web Services on the enterprise software market in the context of source to pay solutions and choices that enterprises will have relative to running their own applications, vs. outsourcing them to third party providers. Investigate the future of source to pay solutions as federated data pools of supplier product information and interoperable services. Postulate the role of standards organizations such as GS1 with the notion of GDSN and EPCIS vs. privately run services directed by the enterprise trading partners themselves. Format: Tuesday 11/29 Wednesday 11/30 The Basic Fundamentals of eProcurement, Sourcing & Auctions and Online Payments Cases: Tele Flower Auction (TFA), eBay Movement to Application & Community Outsourcing: Evolution of Exchanges & Business Models (Public & Private) and State of the Market Cases: Quadrem, Perfect Commerce Role of Open Standards & the New Model for Service Providers: Do It Yourself? Examination of the implications Web Services has for the enterprise software market Exploration of the Choices for Data Pools and Enterprises Alike relative to BPO Cases: GXS, 1Sync Future of Federated Data Pools of Content and Interoperable Services Role of the GDSN, EPCIS & the Evolution of Online Source to Pay Content & Services Looking ahead to Business Process Outsourcing and Process Automation Cases: Wal-Mart / Retail Link, Dell
Thursday 12/1
Friday 12/2
Required Reading:
“Making Markets”, by Ajit Kambil & Eric van Heck, Harvard Business School Press, 2002. “Keystone Advantage”, by Marco Iansiti, Harvard Business School Press, 2004. “The Business Value of Web Services”, by Stephanie Race, March 2003. “Next Generation Service Providers”, by Stephanie Race, July 2004. “The Open Network for Commerce Exchange Annual Global Summit Survey Results”, by Stephanie Race, May 2005.
Visiting Faculty Biography:
Stephanie Race is a Partner in the Consumer & Industrial Products Practice of Accenture where she focuses on enterprise data management, global data synchronization, product information management and RFID / EPC solutions for both CPG Manufacturers and Retailers. Stephanie has over 17 years in business to business supply chain and procurement solutions and extensive experience with extended supply chain solutions in many industries including manufacturing, mining, agriculture, consumer goods, retail, energy, healthcare and financial services. Stephanie was formerly the Vice President of Research for CommerceNet Consortium LLC and gained her corporate technology experience with leadership roles in the supply chain and enterprise integration practices of Oracle Corporation and Accenture, and founded two successful eBusiness services firms focused on extended enterprise B2B solutions for Fortune 500 companies. Stephanie’s most recent work has its focus on catalyzing the adoption of open networks for business services enabled by emerging technologies such as web services, RFID/sensor networks, distributed security and policy management, and process aware applications that address global data and complex process synchronization for demand planning, supply chain management, sourcing & procurement, channel management and product development which is central to technology transformation of the supply chain. These projects are being deployed for organizations looking to automate their outsourcing strategies, facilitate virtual integration, and move to the networked enterprise via open standards and device connectivity. Stephanie Race was the founder and CEO of Innovation Enterprises, a business solutions consultancy focused on helping enterprises, technology firms, telcos and procurement service providers sharpen their value propositions to enable sales and marketing effectiveness ensuring end user adoption of new product and service offerings. Innovation Enterprises provided technology advisory services for B2B procurement exchanges looking to re-architect platforms to support heterogeneous integration capabilities to the systems of their trading partners, and deployed enterprise data management solutions for telecommunications firms, enterprises, and procurement service providers to evolve their business models to offer business applications delivered as a service enabling “On-Demand” solutions in support of enterprise BPO. Stephanie’s experience also includes the deployment of enterprise risk management solutions associated with private infrastructure in the public domain and deploying assessment frameworks for assuring critical infrastructure protection and business continuity with both with DOD and Department of Homeland Security. Solutions include compliance management in the areas of distribution of hazmats for chemical logistics firms, real time monitoring of pipelines for oil & gas companies, seaport security and disaster recovery services. Stephanie is on the board of Global Map Aid (GMA), a 501c3 non-profit focused on providing spatial imagery to enable humanitarian assistance organizations to distribute aide more efficiently. GMA’s technology is being deployed in the disaster recovery and reconstruction efforts resulting from the December 2004 Asian Tsunami. Stephanie raised the initial seed capital for this organization which has subsequently been awarded contracts from Vodafone Foundation, Omidyiar Foundation, and USAID. Stephanie’s work and role as a board advisor to GMA has been covered by the San Francisco Chronicle and the Wall Street Journal. Stephanie graduated with honors from University at Albany, State University of New York School of Business with a Bachelors degree in Management Science & Industrial Engineering and is an Adjunct Professor at Carnegie Mellon University's west coast campus where she teaches Courses in the Masters of eBusiness & Technology. Stephanie is also a Visiting Professor at Tsinghua University’s Department of Industrial Engineering where she teaches courses in the PhD program focused on global sourcing, risk management and technology transformation of the supply chain.