1. Information and the Internet Joseph Tragert EBSCO Publishing September 20, 2004

2. The Benefits of the Internet  Quick, easy access to information  24/7 availability  Powerful change agent  Unlimited potential as efficiency tool

3. The Risks of the Internet  Quick, easy access to information  24/7 availability  Powerful change agent  Unlimited potential as efficiency tool

4. All The Information, All The Time  You can get anything you want  Expensive does not always mean valuable  Free is not always worth the price  Get what you need, not want you want

5. Types of Information Usage  Limited Research  Quick lookup of product of company information  Databases and directories  Exhaustive Research  Due diligence on a supplier  Specialized Database linked to sources of full text  Browsing – becoming aware of latest developments  Current Awareness Service /Online Journals  Unconnected information and editorial opinion

6. Too Much Information  Managing online resources is a significant challenge  Too many search interfaces  Google, Yahoo, MSN, CNN, Boston.com, etc.  Too many online magazines  Vendors and web sites come and go

7. What is a MetaSearch Engine?  Conducts single query across multiple databases hosted on multiple online platforms  Returns a single unified result list with links to other online platforms  An attempt to provide a ‘one stop shop’  “’Lowest common denominator’ and frequent changes by online search platforms limit functionality Google is the ultimate metasearch engine

8. Data vs. Information  The Internet rarely provides information for purchasing needs, it often provides data  Transaction data and reports are easy to generate  Expensive software and system need justification  Data is NOT information  (D+C)E = I (Data + Context) x Experience = Information

9. The Internet is Forcing Change Status Quo

10. Sourcing Goes Online  EDI, ERP, etc.  Online market places  Auctions and reverse auctions  Product catalog information and specs  Are the systems and product data good enough?

11. Easier Information Transfer  Easier to communicate complex information  Outsourced purchasing functions can access databases and ERP systems remotely  Routine transactions can be automated

12. The Purchasing Professional  Managing processes more than performing them  Optimizing, not just executing  Still doing the same things, but now it’s harder and needs to be done faster  Success doesn’t mean extinction, but the comet is coming…are you a dinosaur or a mammal?

13. The Internet Can Be an Asset  Change is another way of saying “progress” or “growth”  Continuous Enhancement -- Challenge assumptions, find better ways to meet needs and better ways to accomplish tasks  Measure ideas from the customers’ and suppliers’ perspectives, not yours

14. The Internet Can Skew Reality  Implementation costs can outweigh gains  False signals of success  Suppliers quote low to “win” an auction or gain business via web channel  Buyers jump through too many hoops to participate in automated transaction systems  Buyers buy too much data, services and features  Capital markets reward the Internet-heavy company, often ignoring the bottom line realities

15. Michael Porter’s Warning (in my words)  The Internet is not a substitute for good business practices, and it can make bad business practices even worse

16. The Internet Really Is…  …an enabling technology  …not a new way to do business  … “a compliment to, and not a cannibal of, traditional ways of competing.”

17. The Last Word  The Internet enables more efficient flows of data, but it does not create efficiency automatically  Data is not information  Efficiency comes from professional skills, not faster access to data  Knowing more does not guarantee doing better

18. Thank You