1. File: Amex_b2b.PPT 1 Business 2 Business 101 American Express Canada Presentation Presenter: Yogi Schulz Business 2 Business 101 Roadmap to Self-education February 2001 “Get me to the Web on time or else!”

2. File: Amex_b2b.PPT 2 Business 2 Business 101 Housekeeping Items r Refreshments r Facilities r Messages r Cellular phones & beepers

3. File: Amex_b2b.PPT 3 Business 2 Business 101 Yogi Schulz Biography r President of Corvelle Management Consultants r Information technology related management consulting r Project management and systems development r Computing Canada columnist r Industry presenter: –Project Management Symposium –CIPS Informatics –PMI - Information Systems SIG –Convergence

4. File: Amex_b2b.PPT 4 Business 2 Business 101 Web is full of E-commerce help Presentation Outline r Introduction r Importance of the Internet r B 2 B Major Applications r B 2 B Benefits r E-commerce publications r Questions & Answers

5. File: Amex_b2b.PPT 5 Business 2 Business 101 I’m creating an E-business advice web site. MANAGE FASTER, YOU LAZY DOG! Using the Web for Business Success DOGBERT.COM had a successful IPO today, Netting billions for Dogbert.

6. File: Amex_b2b.PPT 6 Business 2 Business 101 Presentation Objectives r Build an understanding of business-to-business application: –categories –benefits –success criteria r Build awareness of available resources Improve B 2 B E-commerce understanding Why don’t you already understand all this stuff?

7. Importance of the Internet r E-mail surpassed the telephone as the most frequently used tool for business communication in 1998. Frost & Sullivan 1999 r Corporate spending on Web-based technology is predicted to top out at $85 billion in 1999, and jump to $203 billion by 2002. International Data Corp. 1999 r More than 79.4 million adults, or 38% of the U.S. population age 16 and older, are now online. IntelliQuest Research 1999. r 71% of Internet users spend over 1/2 hour online each day. Pew Research Center 1999 r Approximately 77% of all employed people use the Internet at work. U.S. Dept. of Commerce 1999 New Topic

8. File: Amex_b2b.PPT 8 Business 2 Business 101 The Internet and E-commerce in Canada Source: IDC Internet Commerce Market Model, V 5.0 Huge Impact on Business

9. File: Amex_b2b.PPT 9 Business 2 Business 101 Business-to-Business E-commerce Definition Conducting business transactions: r electronically –not fax/phone/mail/in-person r online –typically through the web or EDI –not via e-mail r between two businesses –not with consumers/government Buying and selling products and services through the web

10. File: Amex_b2b.PPT 10 Business 2 Business 101 Business Impact of the Internet r Communication effect –dramatically reduce cost of finding and transferring information r Brokerage effect –access global markets with minimal incremental costs r Integration effect –shorten, enhance the value chain Wharton School of the University of Pennsylvania Sendil Ethiraj, Isin Guler - Ph.D. students Harbir Singh - Chair, Management Department Can’t you get it through your thick skull?

11. Old vs. New Economy influenced by David Barry Owner Currency Stock exchange Distribution channel CharacteristicsOld Money NYSE All of us Bricks & mortar New High tech stocks NASDAQ Bill Gates Fedex StrategyMake moneySpend money CommunicationTelephoneVoice mail Meeting communicationTalkPalm Pilot Product liabilityRidiculousNone Key activityMake productsBuy/sell stocks

12. File: Amex_b2b.PPT 12 Business 2 Business 101 B 2 B Major Applications Software Packages r Procurement r E-Marketplaces r Content Management r E-Marketing r Supply Management r Content Distribution r E-Commerce r Customer Support Reference: Business Week E.BIZ 11 December 2000 page EB 32 New Topic

13. File: Amex_b2b.PPT 13 Business 2 Business 101 Procurement r Description: –enables automated purchasing r Leading supplier- Ariba –www.ariba.com r Key competitors: –Oracle –SAP –Commerce One –upstarts

14. File: Amex_b2b.PPT 14 Business 2 Business 101 E-Marketplaces r Description: –creates online exchanges to link buyers and sellers r Leading supplier- Commerce One –www.commerceone.com r Key competitors: –Ariba –FreeMarkets

15. File: Amex_b2b.PPT 15 Business 2 Business 101 Content Management r Description: –manages thousands of pages on web sites r Leading supplier - Vignette –www.vignette.com r Leading supplier - Interwoven –www.interwoven.com r Key competitors: –IntraNet Solutions –Plumtree

16. File: Amex_b2b.PPT 16 Business 2 Business 101 E-Marketing r Description: –tracks customer buying patterns –predicts what and when they’ll buy r Leading supplier- E.piphany –www.epiphany.com r Key competitors: –Siebel Systems –SAP –Art Technology Group

17. File: Amex_b2b.PPT 17 Business 2 Business 101 Supply Management r Description: –connects a company’s Web operations with its suppliers r Leading supplier- i2 –www.i2.com r Emerging competitors: –Oracle –SAP r Leading Enterprise Application Integration competitors: –webMethods –Vitria

18. File: Amex_b2b.PPT 18 Business 2 Business 101 Content Distribution r Description: –accelerates content availability to end-users r Leading supplier - Akamai –www.akamai.com r Leading supplier - Inktomi –www.inktomi.com r Expected competitors: –Oracle –Cisco

19. File: Amex_b2b.PPT 19 Business 2 Business 101 E-Commerce r Description: –builds product catalogues –collects payments –tracks deliveries r Leading supplier - BEA Systems –www.beasys.com r Key competitors: –BroadVision –IBM –Art Technology Group

20. File: Amex_b2b.PPT 20 Business 2 Business 101 Customer Support r Description: –automates online customer service r Leading supplier - Kana Communications –www.kana.com r Leading supplier - Ask Jeeves –www.askjeeves.com r Key competitor - Siebel Systems

21. File: Amex_b2b.PPT 21 Business 2 Business 101 Safe Credit Card Use

22. File: Amex_b2b.PPT 22 Business 2 Business 101 B 2 B Benefits r Sellers r Buyers r Market Makers New Topic “You mean there was a time before the Web?”

23. File: Amex_b2b.PPT 23 Business 2 Business 101 B2B eCommerce Benefits Sellers r Lower costs in: –marketing –administration –order fulfillment r Access new customers r Extend market reach still further by: –creating and leveraging close collaboration among trading partners –tightening the relationship between supplier and buyer –promoting price discovery and spend aggregation –slashing supply chain costs

24. File: Amex_b2b.PPT 24 Business 2 Business 101 Return 15-27% back in reduced costs - AMR estimate 1999 B2B eCommerce Benefits Buyers r Reduce direct and indirect supply chain costs by: –leveraging their global scale –focusing their spend on preferred suppliers –taking advantage of dynamic models such as auctions and bid-quote for efficient sourcing and spot buying r Utilize new tools for logistics and payment creating new opportunities to: –build transparency in the supply chain –decrease logistics costs –increase inventory turns –improve the overall performance of the manufacturing and procurement processes

25. File: Amex_b2b.PPT 25 Business 2 Business 101 B2B eCommerce Benefits Market Makers r Catalyze the growth of the B2B economy by: –leveraging their domain expertise, customer relationships and supply chain strength r Reap substantial rewards by: –delivering incredible value –sharing in the returns achieved by buyers and suppliers

26. File: Amex_b2b.PPT 26 Business 2 Business 101 Create Memorable Web Sites

27. File: Amex_b2b.PPT 27 Business 2 Business 101 E-Commerce Publications r Senior management r IT professional r IT research organizations Printed and web New Topic “Customers won’t see me with my pants down!”

28. File: Amex_b2b.PPT 28 Business 2 Business 101 Senior Management Publications r Business.Com –www.business.com r CIO Canada –www.itworldcanada.com/cio r CIO Magazine –www.cio.com r Commerce Net –www.commerce.net r InfoSystems Executive –www.plesman.com/ise/home.html r NDU Information Resources Management College –www.nduknowledge.net

29. IT Oriented Publications - 1 r About.com – Electronic Commerce –ecommerce.about.com/smallbusiness/ecommerce r Bit Pipe –www.bitpipe.com r BizWeb - Web business guide –www.bizweb.com –www.bizweb.com/categories/web.software.html r BrainStorm Group –www.brainstorm-group.com r CIO Magazine –webbusiness.cio.com r CNET –www.cnet.com r ComputerWorld Canada –www.itworldcanada.com/cw/

30. IT Oriented Publications - 2 r Computing Canada –www.plesman.com/cc/home.html r Cutter Information Corp. –www.cutter.com r E-Business –www.plesman.com/eb/home.html r ebiz –www.ebizmag.com r ebizQ.net –www.ebizq.net r The Eco Framework –eco.commerce.net –eco.commerce.net/rsrc/index.cfm r Ecom World –www.ecomworld.com Excellent Glossary

31. IT Oriented Publications - 3 r ecommerce Guide –ecommerce.internet.com r estreet –www.canoe.ca/eStreet/home.html r E-Commerce Times –www.ecommercetimes.com r Information Week –www.informationweek.com r Internet.com –www.internet.com –www.internetnews.com r TechRepublic –www.techrepublic.com

32. File: Amex_b2b.PPT 32 Business 2 Business 101 IT Research Organizations - 1 r Electronic Commerce Research Laboratory –elabweb.com r Forrester –www.forrester.com r Gartner Group –gartner5.gartnerweb.com/public/static/home/home.html r Giga Information Group –www.gigaweb.com

33. File: Amex_b2b.PPT 33 Business 2 Business 101 IT Research Organizations - 2 r IDC –www.idc.com r Meta Group –www.metagroup.com r Round Table Group –www.round.table.com r Yankee Group –www.yankeegroup.com r Xephon –www.xephon.com

34. File: Amex_b2b.PPT 34 Business 2 Business 101 U. S. Government E-commerce Sites - 1 r Center for Research in Electronic Commerce –cism.bus.utexas.edu r Federal Electronic Commerce Program Office –www.ec.fed.gov r Electronic Commerce Policy –www.ecommerce.gov r Electronic Commerce Resource Center –www.ecrc.ctc.com r The Framework for Global Electronic Commerce –www.whitehouse.gov/WH/New/Commerce

35. File: Amex_b2b.PPT 35 Business 2 Business 101 U. S. Government E-commerce Sites - 2 r Government Technology –egov.govtech.net r National Electronic Commerce Coordinating Council (NECCC) –www.ec3.org r Electronic Commerce Knowledge Center –www.knowledgecenters.org r Office of Information Technology –www.itpolicy.gsa.gov

36. File: Amex_b2b.PPT 36 Business 2 Business 101 Canadian Government E-commerce Sites r Canadian E-business Opportunities Roundtable –www.bcg.com/practice/ecommerce_canadian_roundtable.asp r Electronic Commerce Canada Inc. –www.ecc.ca/Index.html r Electronic Commerce in Canada –Industry Canada –e-com.ic.gc.ca/english

37. File: Amex_b2b.PPT 37 Business 2 Business 101 Canadian Government Industry Canada - E-commerce Sites r Consumers and Electronic Commerce –strategis.ic.gc.ca/SSG/ca00622e.html?pacregion=bcecomnet r Electronic Commerce –strategis.ic.gc.ca/sc_indps/sectors/engdoc/ecom_hpg.html r The Electronic Market Place –strategis.ic.gc.ca/SSG/mi06840e.html r Net Gain –Business on the Internet –strategis.ic.gc.ca/sc_indps/sectors/engdoc/gain_hpg.html r Retailing Resource Centre –strategis.ic.gc.ca/engdoc/retailer.html

38. File: Amex_b2b.PPT 38 Business 2 Business 101 r Importance of the Internet r B 2 B Major Applications r B 2 B Benefits r E-commerce publications “With these ideas you can succeed and still sleep in your cubicle!”

39. File: Amex_b2b.PPT 39 Business 2 Business 101 Any Questions? Dogbert will explain it to you

40. File: Amex_b2b.PPT 40 Business 2 Business 101 700, 205 - 5th Ave. S.W. Calgary, Alberta Canada T2P 2V7 Phone: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com rPresident of Corvelle Consulting rInformation technology related management consulting rProject management and systems development rComputing Canada columnist American Express Business 2 Business 101

41. File: Amex_b2b.PPT 41 Business 2 Business 101 Bibliography - 1 r Ariba B2B Update Exclusive –Don Tapscott, Chair of Digital 4Sight and co-author of Digital Capital –www.ariba.com/corporate/news/tapscott.cfm r B 2 B Major Applications - Software Packages –Business Week E.BIZ, 11 December 2000, page EB 32 r B2B Marketplaces in the New Economy –Ariba white paper r Beyond Today's Turning Point for Net Business –www.businessweek.com/bwdaily/dnflash/oct2000/nf2000105_825.htm –Business Week, 5 October 2000 r Blueprint for B2B Success –Ventro white paper

42. File: Amex_b2b.PPT 42 Business 2 Business 101 Bibliography - 2 r Content Management in E-Commerce –Tony White and Kathleen Hall, March 2, 2000, Giga Information Group r E-Business and the Myth of Disintermediation –M. Bernstein, 8 November 1999 –gartner5.gartnerweb.com/public/static/hotc/hc00084111.html r E-commerce waits for no one –Victoria Berry, ComputerWorld Canada, 28 July 2000 r Electronic Commerce Solutions ‘99 –vendor presentations about E-commerce technology/cases –www.okreg.com/ecomm

43. File: Amex_b2b.PPT 43 Business 2 Business 101 Bibliography - 3 r Exchange: Breaking the B2B Barrier –Oracle Magazine, January/February 2000, p. 66 r Organizing for E-Business: Getting It Right –M. Gerrard. 12 September 2000 –gartner5.gartnerweb.com/public/static/hotc/hc00092498.html r Proper Staffing Is Key To E-Commerce Success –Ben Slick, Internet Week Online, 5 July 1999 –www.internetwk.com/change/change070599-2.htm r Purchasing in Packs –Ken Ferguson, Business Week E.Biz, 1 Nov. 1999, p. EB33 –By Stephen Kindel, Executive Edge, February - March 1999 –www.ee-online.com/feb/feb_feat_03.htm

44. File: Amex_b2b.PPT 44 Business 2 Business 101 Bibliography - 4 r Reassessing E-Commerce –Despite its size and explosive growth, e-commerce requires close attention to all of a company's other marketing channels r RosettaNet key to 3Com’s supply chain –PC Week, 14 February 2000, p. 25 r The secret of e-business success –Rod Travers, 09/15/2000, CIO r Supply chain management: the big payoff –Christopher Koch - CIO Magazine, 2 October 2000 –www.itworld.ca/portals/portal_template.cfm?view=true&PortalID =6&ArticleID=1297&CategoryID=3

45. File: Amex_b2b.PPT 45 Business 2 Business 101 Bibliography - 5 r 10 success factors for e business –www.ibm.com r Ten Ways IT And E-Biz Projects Are Different –David Smith, Internet Week Online, 11 October 1999 –www.internetwk.com/transform/transform101199-2.htm r The Devil in the Details –How the Canadian Imperial Bank of Commerce hopes to save over $50 million a year automating the purchasing function –The Seven Caveats of On-Line Procurement –By Catherine Fredman, Executive Edge, April - May 1999 –www.ee-online.com/apr/apr_feat_04.htm

46. File: Amex_b2b.PPT 46 Business 2 Business 101 B2B Procurement - 1 r Obtain product information –requisitioner obtains information about products that are available from Intranet-accessible electronic catalog. –catalog is maintained by suppliers and corporate purchasing department. r Create the order –requisitioner creates order by completing a web-based form. –requisitioner must know how to fill out form correctly, including the entry of information, such as product codes, cost centre codes and supplier codes. Electronic automation of traditional business practices

47. File: Amex_b2b.PPT 47 Business 2 Business 101 B2B Procurement - 2 r Obtain approval –requisitioner seeks approval from the relevant authorizer(s). –form is routed to the correct individual or individuals using workflow features of software. r Create/transmit purchase order –purchase order is generated and submitted to the supplier for fulfillment. –transmission uses EDI, XML or proprietary data format r Fulfill the purchase order –supplier checks that the product is currently in stock and that the quoted price is valid. –supplier fulfills the customer order by removing it from inventory. –supplier transmits order confirmation to requisitioner.

48. File: Amex_b2b.PPT 48 Business 2 Business 101 B2B Procurement - 3 r Ship the product –supplier relies on address on purchase order for delivery of goods. –requisitioner can access supplier web site to track the status of the purchase order. r Receive the product –product is delivered to and processed by the receiving department of the customer. –receiving department will notify the requisitioner via e-mail –receiving department will deliver product to requisitioner.

49. File: Amex_b2b.PPT 49 Business 2 Business 101 B2B Procurement - 4 r Pay for the product –when the arrival of the product is confirmed, payment is made to the supplier for the amount stated on the purchase order. –Payment is made via EFT transaction. Process description derived from: The Procurement Process http://www.microsoft.com/TRAININGANDSERVICES/content/training/ samples/2260/Webfiles/Mod02/02m8.htm

50. File: Amex_b2b.PPT 50 Business 2 Business 101 Features of e-Procurement - 1 r Online discovery of product information –requisitioner uses a self-service Web application to place their order. –available products listed in a centrally maintained online catalog with pricing information. –availability can be checked directly with the supplier's system –anticipated delivery time can be provided. r Simplified order creation –requisitioner will be prompted by the application to fill out any required parts of the order form. –Look-ups for codes can be implemented. r Intelligent approval process –The application will automatically submit the order to the correct individual for approval. The requisitioner need not know the identity of this individual. If more than one individual is involved in the approval, the request can be automatically routed between the individuals as approval is gained. r Automatic submission of the order to the suppliers –At the end of the approval chain, the order can be automatically processed to segregate the goods from different manufacturers. The system can automatically combine multiple orders on a daily, weekly, or cost basis before creating a purchase order and submitting it to the supplier. r Automatic fulfillment of the order –The supplier system can automatically process the order. After the information on the order has been validated, warehousing and billing systems can be contacted to fulfill the order. r Efficient, automated shipping process –Orders can be sent to the pre-stored standard location for the purchasing company (if appropriate) through a shipping company (again, if appropriate). Links between the purchasing organization's systems and those of the supplier/shipper allow the requisitioner to track the progress of the order. r Automatic routing, inventory updates, and delivery of goods to the recipient –As goods arrive, they can be entered into a system that tracks goods received. The system can match the goods to the orders submitted and provide information about the recipient of the goods. r Automatic payment for the goods –The system may require the requisitioner to confirm receipt of the goods. The confirmation could be used as a trigger to automatically pay the supplier for those goods.

51. File: Amex_b2b.PPT 51 Business 2 Business 101 Features of e-Procurement - 2 r Intelligent approval process –application automatically submits the order to the correct individual for approval. –requisitioner need not know the identity of this individual. –if more than one individual is involved in the approval, the request can be automatically routed between the individuals as approval is gained. r Automatic submission of the order to the suppliers –At the end of the approval chain, the order can be automatically processed to segregate the goods from different manufacturers. –system can automatically combine multiple orders on a daily, weekly, or cost basis before creating a purchase order and submitting it to the supplier.

52. File: Amex_b2b.PPT 52 Business 2 Business 101 Features of e-Procurement - 3 r Automatic fulfillment of the order –The supplier system can automatically process the order. After the information on the order has been validated, warehousing and billing systems can be contacted to fulfill the order. r Efficient, automated shipping process –Orders can be sent to the pre-stored standard location for the purchasing company (if appropriate) through a shipping company (again, if appropriate). Links between the purchasing organization's systems and those of the supplier/shipper allow the requisitioner to track the progress of the order.

53. File: Amex_b2b.PPT 53 Business 2 Business 101 Features of e-Procurement - 4 r Automatic routing, inventory updates, and delivery of goods to the recipient –As goods arrive, they can be entered into a system that tracks goods received. The system can match the goods to the orders submitted and provide information about the recipient of the goods. r Automatic payment for the goods –The system may require the requisitioner to confirm receipt of the goods. The confirmation could be used as a trigger to automatically pay the supplier for those goods. Process description derived from: Automating the Procurement Process http://www.microsoft.com/TRAININGANDSERVICES/content/training/ samples/2260/Webfiles/Mod02/02m9.htm