How SCOR Applies to B2B eCommerce Joint Siemens-Intel- Perspective for the Hightech Industry Herbert Heinzel, Siemens,SBS Partner Supply Chain George W. Brown, Intel, IT Strategy and Technology

Our Message e-Business is it! The internet is a requirement for business - do it or lose it An integrated e-supply chain approach has to have focus on an holistic (cross) enterprise view Supply Chain CouncilSupply Chain Council has the opportunity to add value to RosettaNet Intel/Siemens step up to the plate with a joint project –Objectives –Approach –Value proposition –Pilot scope –Status

Current Situation e-Business is it! The internet is a requirement for business - do it or lose it –Companies must drive business processes and more timely data exchanges with suppliers and customers to reduce cycle time in the network Customers continue to request and expect greater supply network flexibility consistent with demands –Activities across the supply networks are not synchronized Business complexity has outgrown supply network business processes and current tools –Infrastructure (Tools) have not kept pace with the complexity of business and the requests of customers –Supply Networks are now a competitive differentiator!

An Integrated e-Supply Chain Approach......will generate decisive competitive advantages Optimization across the entire value-added network Model View: One-to-One-Relation Supplier (internal or external) Own Company Customer (internal or external) Customer’s Customer DeliverSourceMakeDeliver SourceMakeDeliverSource Plan e-Biz Reality:Many-to-Many-Relation Source Make Deliver Model View vs.Business Reality

Business Community Integration - an holistic management approach... * Source: Supply Chain Council Delivery / Order Processing ManufacturingProcurement Supply Chain Planning Business - and Supply Chain Strategy * ISCM Inter - Partner - Key processes Performance Benchmarks Industry Best Practices Organizational Structure and Workflows I+C-Technology StrategyMgt. of Organizational Change Suppliers Customer Partner - Interface Processes PIP‘s BCI

Intra-& Inter-Enterprise BusinessPerspectives e-Business Solutions and Services Consulting Services Business Process Consulting Change Management Business Solutions Supply Chain Management Enterprise Resource Management Business Information Management Customer Relationship Management E-Commerce IC-Infrastructure Services Desktop and Network Services Operation of Web-Applications IT-Outsourcing Operation of Business Processes Systems Integration Suppliers & Business Partners OurCorp.com Prospects and Customers e-Enablers e-Business Enterprise Resource Management Supply Chain Management Customer Relationship Mgmt. Business Information Mgmt. Systems view Process view

A BCI Architecture - Extends Beyond the Boundaries of your Enterprise.... Linking Business Communities by Process Integration and e-Biz Enablers CollaborativeBusiness Community Business-, SC- Strategy Business processes Applications / Enabling Technologies Methodology/ Mgt. Tools Business- level Collaborative planning + execution Suppliers OurCorp.com. 3PL / Subcontractor Customers BC I EA I SCOR RosettaNet Supplier-Contractmanufacturer-Assembler-Distributor-Shipper-Endcustomer Intra-Enterprise Level Inter-Enterprise Level Performance Management / Joint SC - Metric Alignment SCOR EA I RosettaNet

...and builts on Information Sharing Networks The Business Community IT Manageing Board E-Technologist Geis, pcOrder Enduser AMEX, GSA Wholesale Distributor Arrow, Avnet, CHS, Ingram Micro, Marshall, Tech Data Financier Deutsche Financial Manufacturer 3Com, Cisco, Compaq, HP, IBM, Intel, NEC, Siemens, Solectron, Toshiba Software Publisher Microsoft, Netscape Reseller/SI CompUSA, Computacenter, EDS, Inacom, Insight, MicroAge, Office Depot Shipper FedEx, UPS RosettaNet,the Linqua franca for e-business is set to standardize electronic communication between supply chain partners

Supply Chain Council Supply Chain Council has the Opportunity to Add Value to RosettaNet SCOR methodology is positioned to enable competitive supply networks through inter-enterprise business process alignment and performance management SCOR can add value to RosettaNet through a business process perspective in internet-enabled supply networks

Intel/Siemens Step Up to the Plate Objectives for a Joint Project Add value to SCOR methodology by aligning with the RosettaNet initiative –Leverage SCOR to define inter-enterprise interaction consistent with an integrated supply chain vision –Facilitate definition of intra-enterprise process response to partner interaction (as defined by RosettNet) –Identification of SCOR-based PIPs that improve supply chain management across partners Define and implement a joint Siemens/Intel pilot Share lessons learned through Supply Chain Council and RosettaNet

Joint Project Approach Develop joint value proposition to be approved by SCOR Board and the RosettaNet IT/EC Board Plan on collaboration –Pilot open to selected business partners –SCOR methodology extension into B2B modeling/ implementation open to other interested partners/vendors who add value Prove the concepts for our industry; generalize and customize for other industries later Communicate results from a B2B scenario Develop a plan for rollout of results

Process Modeling & Automation Information Bus EDI FTP B2B EAI Group Private ProcessesGroup Public Processes Firewall Company Private Processes Trading Partner’s Process Models & Automation Trading Partner’s Private Processes Inter-Company Public Processes ERP and Legacy Apps Metadata Repositories Goal: Integrated Processes/Services RosettaNetPIPs

Alphabet Grammar Dialog Words human-to-human business exchange partner-to-partner eBusiness exchange SoundInternet Business Process Telephone Business Process Telephone DIALOG Ecom Application XML Framework Dictionaries RosettaNet PIP eBusiness Process PIPs Represent Agreed Upon Protocols to Carry out B2B Solutions

SCOR Can Map to RosettaNet SCOR PIP EAI BCI Business Partners Inter-Enterprise Process Integration Intra- Enterprise Process Integration Business Community Integration Partner-Interfaces Trigger Intra-enterprise Process and Performance Management Linking Business Communities by Process Integration and e-Biz Enablers

Value Proposition for Mapping SCOR to RosettaNet  Extend SCOR methodology across enterprises and for globalization  Develop best practices for cross-enterprise collaboration  Customize models through RosettaNet standards  Map RosettaNet process taxonomy to SCOR processes  Introduce new PIPs for sharing metrics  Add strategic modeling level for e-Business  Develop collaboration capabilities  new tools for B2B modeling and simulation  new metrics for supply chain networks  new cross-enterprise planning  Enhance SCOR-workshops by SC-network modules and business cases

Scope of Pilot Focus on business area of common interest to Siemens and Intel Joint evaluation and integration with other supply chain partners –downstream partner for sure (e.g. SAP as a customer of Siemens) –an intermediary business partner is a possibility Align with other supply chain improvement projects within our respective companies Leverage SCOR to the extent possible Share SCOR-based performance metrics across the supply chain

Pilot Supply Chains Could Look Like this.... Supplier Intel Manufacturer Siemens Customer SAP Example: Product Stream from sand to chip to board to system

Pilot Supply Chains Could Look Like this.... Supplier Intel Manufacturer Siemens Customer SAP Customer (e.g.Bank) Spareparts Logistic Siemens ITS Example: Spare Part Stream add technical service

Pilot Supply Chains Could Look Like this.... Supplier Intel Manufacturer Siemens Customer SAP Logistic / Service Provider, e.g. UPS Contract Manufacturer (e.g. Solectron) Example: Third Party Fullfillment Stream add supply chain partners

Status of Intel-Siemens Pilot Pilot planning is being coordinated –Link: RosettaNet projects in both corporations Both companies active on RosettaNet Board Joint RN projects are on the roadmap for this year Solution Partner Participation from Netfish Technologies –Link: Current Intel supply chain improvement projects that will be ready for European (Siemens) pilot this year –Link: Common Subcontractors under consideration –Link: Collaboration with SCC vendors NetFish for Exchange Server architecture Gensym for SCOR-based simulation IDS Scheer for SCOR and B2B modeling Agile for third party fullfillment integration SCOR-based B2B Modeling methodology being developed through on-going SCOR projects

Intel-Siemens-Netfish – A Prototype Demonstration of Technology Enablers Automating Complex Business Processes through use of Multiple RosettaNet PIP Interactions

RosettaNet EC Prototype 2A5, 3A4, 3A5, 3A6 - SAP/Siemens/Intel SAP 3A4 Buyer SAP/R3 Intel Siemens Seller/Buyer Seller Status: Completion 2A5 3A5 3A43A6 PIP Interactions: 2A5, Technical Product Query 3A4, PO Exchange No PO change No PO cancel 3A5, Query Order Status 3A6, Distribute Order Status PIP Version 1.1 RNIF 1.1

Problems – Trading Partner Management  Disparate communication protocols  Disparate security protocols  When quantity of trading partners dramatically increases for which secure communication is required or the mix of partners changes, how are certificates managed?

Problems– Business Data Integration  Disparate Data Formats  Disparate Data Models  Disparate ERP Systems

Problems– Business Process Integration  Even assuming seamless data format and data model exchange  Disparate Processes, Policies and Procedures

Next Steps Define partner specific components/ products Describe intra-enterprise business processes Describe inter-enterprise supply chain(s) Develop pilot scenario Elaborate joint value proposition Shape Supply Chain Council - RosettaNet relationship Define milestones for SAG-Intel-SAP integration model Describe architecture and business case