january 15, 2001 © 2001 e-business management consulting all rights reserved welcome to the 2001...

January 15, 2001 © 2001 E-Business Management

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All Rights Reserved

Welcome to the 2001 Global ISAAS Practice Forum!

…and Good Morning!

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Congratulations Ernst & Young!

You Were #26 on eWeek’s FastTrack 500 List of the Top

E-Business Innovators!*

*Source: eWeek Magazine, November 13, 2000

Note: PWC = #88, D&T = #169, KPMG = #253, AA = #365

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Warning: Companies that do not migrate to e-business will fail!

“By year-end 2000, less than 20% of all enterprises will be ready to implement an enterprise wide E-commerce strategy because they will not have made the necessary business model, management and technology changes to support it.”

Source: The Gartner Group

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Managing Change

• Accurate vision;• Knowledge of related facts

“Knowledge is Power” Not True!• Enlightened leadership;• A valid action plan;• Organizational commitment;• Consistent/Persistent effort to change old habits!

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BMC

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Compaq

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Avaya

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HP

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IBM

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SAP

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Sun

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PeopleSoft

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Oracle

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The Convergence of IT and Business Models to be Displaced by a New E-Business Model

1970 198

0 1990 2000

Defense, Science & Research

Finance & Control

Company Operations Support

E-CommerceE-Business

LAN/WAN

E-Mail

Internet/WWW

Word Processing

Desk Top PCs

ADP’s Outsourcing Success Hosting

Computerized Payroll Services for Businesses

CRM B2BB2E B2M ERP etc.

Jack Welch gets religion!

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.com failures

The Hershey ERP Failure

Tim Berners-Lee Launches the 1st

web site


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Convenience

Price/Value

Quality of Service

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Forces Driving the E-business Revolution• E-commerce revenues to grow to $1.3 trillion by 2003.• “B2B revenues estimated to exceed $7 trillion by 2004.”• “Small business online orders jumped an estimated 95%

during the past 12 months valued at an estimated $19 billion.”

• “Companies will spend $3.2 billion on e-commerce software by the year 2000.”

• “E-commerce software will be purchased by 46.7% of U.S. organizations in the next six months.”

Source: E-BMC White Paper

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Post IT and Business Convergence Impacts

2002

2003

2004

2005

E-Commerce

E-BusinessLAN/WAN

E-Mail

Internet/WWW

Companies That Are Not E-Business Enabled

Companies That Are E-Business Enabled

Increased;• sales• efficiency• productivity• customer service• operations mgt.• vendor relations• cost control• communications• profit margins

Decreased:• sales• efficiency• productivity• customer service• operations mgt.• vendor relations• communications• profits

CRM/ERP

SCM, KM

B2B, B2E, B2etc.

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What is Needed to Manage Convergence and Transformation?

1. A Transformation Plan based on an integrated business model and disciplined decision making strategy;

2. Process Reengineering;

3. Human Resource Reengineering;

4. Technology

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A New Business Model that Integrates IT as a Business Variable Based on ROI

The Organizational Status Assessment Model (OSAM)*

• Convergence and Transformation can be managed when IT is integrated into the business model as an organizational variable (OV).

OS = f

R.O.I.

* Source: E-BMC White Paper

(OG OV)

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(IT Interconnective System)(IT Interconnective System)

(IT Interconnective System)

R&DP ro d u c t D e v e lo p m e n tP ro d u c t R e f in e m e n t

Production/ManufacturingP ro d u c t io n O p e ra t io n sP ro c e s s E n g in e e r in g

Distribution/LogisticsD is t rib u t ion /O rd e r P ro c es s ng

W a re h o u s in g

Marketing/SalesM a rk e t P la n n in g

S a le s O p e ra t io n s

Finance/ControlA c c o u n t in g

F in a n c ia l C o n tro ls

HR/AdinistrationP e rs o n n e l

In d u s t r ia l R e la t io n s

O perations ExecutiveS k ille d in A ll F u n c tio n a l O p e ra tio n s

C oordinatio n, Commu nic atio n, Intera ction

E-Business IT SystemS tand ards B as ed E nterpr ise M g t Sy stem

In te rn e t/E -C o m m e rc e B a s e d

G eneral Managem ent/P&L ExecutiveP & L L e v e l E xe c u tiv e

S k ille d in B u s in e s s M a n a g e m e n t T e c h n iq u e sS k ille d in E -B u s in e s s M a n a g e m e n t

An Example of an E-Business Organization Chart


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A Disciplined Decision Making Model to Guide Management of IT/Business Convergence

The Planning and Assessment Model (PAM)*

Step II - Diagnosis of Need or Deficiency

Step I - Data Gathering/Needs Assessment

Step III - Prescription Development/Planning

Step IV - Implementation/Performance Testing

Step V - Performance Evaluation/ Reassessment


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Rich & Adventurer

s

World War I

Level of Acceptance

100 %

0 % Time1900 20001960

100 Years +

1920 1940 1980

World War II

The Adoption Life Cycle of the Automobile

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The Technology Adoption Life Cycle (TALC)

Technical Enthusiasts

Visionaries

Pragmatists(Users)

Conservatives

Skeptics

5 years +/-

Early MarketMain Market

Level of Acceptance

100 %

0 %

2 to 3 years

Changing IT Buyers Over the Life Cycle

Declining Market

Time

Source: Inside the Tornado

E-business is in the Main Market and Growing!!!!

High Risk

Low ROI

Dramatic New Sales

Potential

Low Risk & High ROI

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What are the Basic Technology Elements Essential for E-Business Enablement?

E-business platform as the system’s foundation End to end enterprise management Legacy IT asset integration Warehouse integration/management Data storage, retrieval, integration and protection End-to-end security & virus protection Predictive/preventive maintenance Knowledge transfer/training Service and support Top management system monitoring & management

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The Challenge for Ernst & Young• Transforming previously autonomous business regions around the world into a

global operating structure;

• Organizational process and human resource reengineering

• Getting Internally E-Business Enabled Globally: respecting the geographical, national, cultural, monetary, political, social and

business uniqueness of the E&Y regions worldwide; allowing all of the regions globally to collaborate on business opportunities,

share resources, exchange data, capitalize on economies of scale and cooperate to maximize ROI;

• Enhancing the performance of Business Units and the quality of product/service offerings to clients using e-business technology;

• Identify and pursue new revenue producing opportunities created by the e-business

revolution unilaterally or in alliances with other firms. Slide #14


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Partnering to Capitalize on the E-Business Enablement Market • Ernst & Young has the methodologies;• Ernst & Young will be sought after for help;• The missing piece is a suite of integrated

e-business technology solutions.

• An Ernst & Young/CA Partnership?• (The Good News & Bad News)

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What’s On the Horizon? • Wireless/CTI

• Smart technology

• Voice recognition

• Atom based electronic processing

• CRM based “mindless” service

• The end of privacy

• Home based employment

• Reduced traffic congestion

• Redefinition business assets

• End of geographical barriers

• Increased unemployment in Internet impact industries (retail, wholesale, services)

• Health related problems

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© 2001 E-Business Management Consulting

All Rights Reserved

January 15, 2001

Dr. John T. Whiting, Managing Director

[email protected]://www.e-businessmanagement.com

973-764-0375

For More Information contact:

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january 15, 2001 © 2001 e-business management consulting all rights reserved welcome to the 2001...

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