9780130914118

The comprehensive guide to Web-enabled procurement. Achieving rapid ROI with e-procurement Discover start-to-finish planning and implementation strategies that work in real enterprise environments. Flexible, a gile e-procurement architectures Define technical architectures and business processes that can take advantage of rapid change and new opportunities. Electronic trading communities e-markets, auctions, reverse auctions, ex changes: who'll dominate and how will it affect you? Security and trust Overcome the security and trust obstacles that prevent many companies from fully leveraging e-procurement. Structuring the project Master e-procurement strategy, project scoping, prioritization, planning, analysis, and design. Managing change in an e-procurement project Change management lessons learned from ERP: making sure your new processes actually get used. The complete guide to Web-enabled procurement Proven solutions based on real enterprise experience Covers every e-procurement model: sell-side, buyer-managed, vertical and horizontal e-markets, ASPs, auctions, and mor e Explores today's leading e-procurement technologies, including XML Explains how to make e-Procurement work: in-depth, start-to-finish lifecycle coverage e-procurement is hot and important-and no wonder! Leading companies are already saving millions of dollars annually with it. Best of breed CEO's like GE's Jack Welch and Cisco's John Chambers are on record that e-procurement will save their companies millions, perhaps billions, of dollars. Now, there's a start-t o-finish guide to implementing e-procurement in any enterprise. Dale Neef covers it all-from making the business case to designing the solution, managing the risks to reaping the benefits. Neef begins with an up-to-the-minute overview of t he promise of B2B e-procurement in supporting globalized, extended enterprises. He reviews every option for deploying e-procurement, including sell-side one-to-many systems, buyer-managed/hosted markets, independent portals, online trading communities, ve rtical and horizontal e-markets, auctions, reverse auctions, ASPs, and more. Coverage includes: Making the business case for e-procurement: process efficiencies, compliance, leverage, and beyond Designing the optimal e-procureme nt solution Identifying the most appropriate role for integrators and consultants Leading approaches, from ERP-centered solutions to enterprise application integration e-procurement opportunities in the public sector Key pitfalls, areas of risk-and proven solutions In e-Procurement: From Strategy to Implementation, Dale Neef has written the essential start-to-finish guide for transforming e-procurement from promise to a very profitable realit

DALE NEEF is a management consultant and founder and principal of DNA Consulting, where he helps executives to develop and operationalize their e-business and e-procurement strategies. A veteran of many enterprise-wide procurement, ERP, and change management projects, he has worked for IBM and CSC, and was a fellow at Ernst & Young's Center for Business Innovation. He earned his doctorate from Cambridge University, was a research fellow at Harvard, and apart from frequent contributions to journals, has written or edited numerous books on business and the economy, including The Knowledge Economy, The Economic Impact of Knowledge, and A Little Knowledge Is a Dangerous Thing. Contact him at gdneef@attglobal.net

Preface.
1. The New World of Business-to-Business E-Commerce.
Is It for Real? The Unique Nature of B2B E-Procurement. Dragging Their Feet. Is B2B 4 U?

2. The Fundamentals of Procurement.
Indirect Procurement: ORM Versus MRO. A Day in the Life of a Typical Procurement Scenario: Today. Select Goods. The Requisition Process. Waiting for Approval. Creating the Purchase Order. Neither Direct nor Indirect-Just E-Procurement. E-Procurement Vision of the Future: Tomorrow.

3. Understanding the Strategic Nature of E-Procurement.
Back-End Systems and the Modern Organization. The Strategic Nature of E-Procurement. Strategic Focus of the E-Procurement Initiative.

4. Making the Business Case for E-Procurement.
Process Efficiencies. Process Automation Savings. Compliance. Leverage. Strategic Sourcing. The Changing Role of Procurement Specialists.

5. The E-Procurement Software Landscape.
The Story So Far. E-Procurement Software Specialists. ERP Suppliers and E-Procurement. Translation and Connectivity. Payment Systems. Finding Your Way Through the Minefield.

6. The Architecture of Web-Based Procurement.
Sell-Side One-to-Many: The Storefront Model or Shopping Mall. Buy-Side One-to-Many Model. Buy-Side Desktop Requisitioning. Buy-Side Central Procurement. Independent Portal and Online Trading Communities. Vertical E-Markets and Marketplace Creators. Horizontal E-Markets. Auctions. Application Service Providers. The Future of E-Markets.

7. Standards.
From EDI to XML.

8. Government and E-Procurement.
Advantages Will Not Be in Savings Alone. Government-to-Business E-Commerce. The Military.

9. The Future of E-Procurement.
Standards. Enterprise Versus E-Market Models. Direct Versus Indirect. Consolidation of E-Market Verticals. Single-Solution Suppliers. Vendor Rationalization. The Changing Role of Procurement Specialists. Government Driven.

10. Assessing the Pros and Cons of E-Procurement.
The Pros. For Buyers. For Sellers. The Cons. System-to-System Integration Issues. Initial Investment Costs. Security, Trust, and Supplier-Buyer Relationships. Fundamental Changes to Procurement Business Processes and Company Culture. Why E-Procurement Initiatives Fail.

11. Guiding Principles for Developing an E-Procurement Initiative.
Ground Rules for an E-Procurement Project. Executive Sponsorship and Participation. Integrate E-Procurement Project with E-Business Strategy. A Legitimate Business Case. Guiding Principles. Strong Change Management Program. Redesign Business Processes. Other Key Issues to Consider Before Starting. Integration Issues. Involving Suppliers and Vendors. Bringing in Consultants. New Responsibilities for Consultancies.

12. Structuring the Project: Phases of an Enterprise-wide E-Procurement Initiative.
Strategy Phase. Program and Project Planning. Strategic Direction, Guiding Principles, and Project Goals. The Case for Action. Target Performance Measures. The Supplier Side. Resources and Critical Areas of Concern. Project Readiness Assessment and a Plan of Work. Analysis and Design Phases. Collecting Information to Confirm the Business Case. Confirming Supplier Support and Compatibility Levels. Redesigning Business Processes. Completing an Implications Analysis on Changes to Activities and Employee Jobs. System Selection Phase. Cost. Functionality. Integration and Interoperability. Implementation Phase. Customer Support. Future Viability of the Group.

13. The Executive E-Procurement Strategy Workshop.
Step One: Defining and Agreeing on Fundamentals. Step Two: Education on E-Procurement. Step Three: Reviewing the Business Vision. Step Four: Understand the Procurement Business Case. Step Five: Developing Scenarios. Step Six: Project Readiness Review.

14. Creating an Effective Plan of Change Management.
Project Structure and Staffing. The Executive Steering Committee. E-Procurement Program Manager. Technical Program Director. Nontechnical Program Director. The Core Team. Subject Matter Experts and Supplier Representatives. Creating a Business Change Implementation Plan.

Index.

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PrefaceBusiness people these days are becoming weary of new fads, movements, and revolutions, and rightly so. We have, in less than a decade, been taken through such "revolutionary" transformations as total quality management, business process reengineering, enterprise resource planning, activity-based costing, and retail e-commerce. Companies have downsized, outsourced, empowered employees, shifted processes and organizational structures from vertical to horizontal, completed strategic sourcing initiatives, and purchased IT systems (often on the basis of dubious return on investment), with investments amounting to millions of dollars. And, of course, they have paid management consultants and software companies many millions more for advice on implementation and change management.Yet, completing business-to-business transactions over the Internet is genuinely something very different. The unexpected emergence of the Internet as a tool for business has meant that we have once again been thrown inescapably into the fray of major investment and change. As I have argued before1 it is all part of an accelerated pace of change that will bring about a fundamental restructuring for all industries, worldwide, and participation is essential for the survival in the new economy.I have written this book about e-procurement in part because I believe that there has been a mistaken emphasis on e-commerce (electronic retailing) in our approach to the use of the Internet. Swayed by the activity around online retailing-the fortunes to be made with dotcom startups, the venture capital that was available, the relative ease in which a Web site for retail sales could be built, the massive coverage of the subject by the business press-we have failed to understand that e-commerce is a relatively unimportant step in the development of the Internet. It is a vital part of an overall e-business strategy, of course, but online retailing-unless it is fully integrated into the supply chain-is simply a mildly effective extension of the sales process. Moreover, expanding revenues, given the margins made in most industries, is far less effective as a strategy than is fundamentally and permanently reducing major costs-something that affects the bottom line directly.The real value of the Internet, as many companies are beginning to experience first hand, comes instead from business-to-business, buyer-vendor transactions that include electronic procurement and full integration of the electronic supply chain from customer to supplier. In fact, as electronic procurement and supply chain software continue to evolve, the relative value to companies of online retailing will almost certainly continue to shrink in relation to the enormous cost savings and fundamental restructuring of companies that will come about as a result of the evolution of Internet-based business-to-business activity.The purpose of this book is threefold. First, it is simply to explain to those who have not previously dealt with the area of procurement the fundamentals involved with purchasing and replenishing materials. Though certainly not as glamorous as many (in fact, most) areas of business, procurement-whether for everyday office supplies or for materials used directly in the manufacturing process-is nonetheless an enormous expense for companies, large and small, and in every industry. In fact, so enormous is the expense and potential savings that e-procurement should from this time forward be seen as an integral part of your company's overall e-business strategy. I hope that the book can therefore serve as a primer for introducing the importance of the subject to organizational leaders and for elevating the subject from the tactical to the strategic.The second purpose of this book is to explore the phenomenon of the electronic trading communities-the volatile and fast-growing area of online e-markets, auctions, reverse auctions, and exchan

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e-Procurement From Strategy to Implementation

e-Procurement From Strategy to Implementation

0130914118

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