1. The Balanced Scorecard Approach for Business to Business
Michael Ebert
Michael Haag
Beth Huston
Rod Kerezsi

2. Agenda B2B Overview Mike Haag Mini-Case Studies
Company Overview, B2B Strategy, Balance Scorecard
unique elements
Info Brokerage (Yahoo!) Beth Huston
Virtual Marketplace (Staples) Mike Ebert
Value Chain Integration (FED EX) Rod Kerezsi
Conclusions Mike Haag

3. E-Enterprise Applications
E-Business: B2B
Virtual Marketplace
Procurement/Resource Management
Value Chain Integration
Customer Relationship Management
Info Brokerage
E-Commerce:B2C
E-Tailing/Customer Portals
Amazon.com, CDNOW
Bidding and Auctioning
Priceline,eBay
Consumer Care/Customer Management
Merrill Lynch
Electronic Bill Payment
AT&T, MCI Worldcom

4. Importance of B2B B2B projections
630,000 companies with B2B services by 2002
90% of e-commerce by 2003
30% of the world economy by 2010
“Where does the Internet rank in Priority? It’s No. 1, 2, 3 ,4.”
Jack Welch, Chairman& CEO, General Electric

5. Virtual Marketplace Application
Selling Goods and Services to other businesses
Objectives
Increase customer base
Decrease marketing and product promotion costs
Decrease inventory costs
Improve customer buying experience
Examples
CISCO Connection Online
Staples

6. Procurement/Resource Management
Application
Buying goods and services from other businesses
Objectives
Manage long-term relationship with suppliers
Lower requisitioning costs
Reduce supplier costs
Increase accountability and control
Optimize purchases
Shorter cycle times/reduced inventory
Examples
Boeing

7. Value Chain Integration
Application
Sharing enterprise information with suppliers and buyers to enable more efficient real-time planning (supply, demand, and production) and logistics
Objectives
Improve cycle time
Reduce inventory
Lower operating expenses
Supplier integration (especially small to medium suppliers)
Examples
Car manufacturers - “Order to Delivery” Production Processes
FedEx - Logistics processes

8. Customer Relationship Management
Application
Improving Customer care - Pre-Sales, Post-Sales
Objectives
Improve care through individual treatment
Reduce costs through customer self-service
Increase repeat buying through long-term customer relationships
Examples
Hewlett Packard

9. Info Brokerage Application
Capitalize on Internet related business opportunities
Objectives
Generate Market Growth
Generate Market Share (Near-Term)
Generate Net Income (Long-term)
Examples
Internet advertising : Yahoo!, Excite, Lycos

10. Virtual Marketplace
This is the web marketing of a company or shop; an electronic version of the traditional way of selling.
Staples.com is the online arm of Staples Inc.
Called a single cross-over or a “click-and-mortar.”
Serves the needs of its customers in the office products market.

11. B2B Strategy
To grab a substantial market share in the small business and SOHO (small office/home office) market.
To provide a single online destination where businesses can procure a wide array of office products and business services, access and exchange electronic commerce transactions with each other.

12. Balanced Scorecard
CUSTOMER PERSPECTIVE

13. Balanced Scorecard
FINANCIAL PERSPECTIVE

14. Balanced Scorecard
INTERNAL BUSINESS PROCESSES

15. Balanced Scorecard
LEARNING ORGANIZATION

16. Value Chain Integration
a $19-billion global enterprise
the world's largest express transportation company
NA's 2nd-largest provider of ground small-package delivery
a global logistics and transportation management company
the world's largest surface expedited carrier
a high-tech customs broker and trade facilitator

17. B2B Strategy Attract new business from small & medium-sized customers
Create new revenue streams
Expand the high-margin international business
Capitalize on e-commerce
Provide meaningful supply chain solutions

18. Balanced Scorecard
CUSTOMER PERSPECTIVE

19. Balanced Scorecard
FINANCIAL PERSPECTIVE

20. Balanced Scorecard
INTERNAL BUSINESS PROCESS
LEARNING ORGANIZATION

21. Conclusions
The internet revolution has presented businesses with unique opportunities and threats
B2B applications are becoming an increasing reality and need to be effectively managed
For most enterprises, B2B applications are just one facet of the business strategy (Brick and mortar, B2C, B2G are others)
A B2B measures should compliment other measures in a balanced scorecard. Focus will depend on particular B2B application
B2B measures will change over time

22. Balanced Scorecard in B2B Environment
Business Processes
Procurement/Resource Mgmt
Value Chain Integration
Organization Learning
Customer Relationship Mgmt
Info Brokerage
Virtual marketplace
Customer Perspective
Financial Perspective
Virtual Marketplace
Vision & Strategy
11-41