21st century business model
TRANSCRIPT
The 21st Century Business ModelSteve Keifer
If You Could Open up an iPhone
See the Semiconductor Insights’ Apple iPhone Teardown -http://www.youtube.com/watch?v=mPhciMud0MM
You would find that most of the innovative hardware components inside these phones come from 3rd party suppliers
Sources of Innovation
Most of the apps you are running on smartphones come from 3rd party software developers
Lockheed Martin’s F-35 Strike Fighter
Perhaps the most sophisticated plane ever created. Many of its subsystems come from 3rd party suppliers.
Most automobiles are comprised of parts and subsystems sourced from 3rd party suppliers.
All the Successful
Companies in the
World
Depend upon Third
Party Suppliers
But Sourcing Has Moved Beyond
Raw Materials
Component Parts
FinishedGoods
In the Past 10 Years
We Have Witnessed a
Dramatic Increase in
Outsourcing of Entire
Business Functions
Outsourced Manufacturing
Outsourced Logistics
Outsourced Sales & Distribution
Outsourced Human Resources
Outsourced IT
Outsourced Marketing
Outsourced Finance
Outsourced Strategy
In the 21st Century,
Companies are Critically
Dependent upon
3rd Parties for Raw Materials
& Parts, but also entire
Business Functions
Customer
ContractManufacturer
FreightForwarder
CustomsBroker
UsBank3PL
FactorContract
Manufacturer
VAR4PL
PartsSupplier
Factor
Bank
VAR 4PL
OEM
Broker
21st Century
Business
Model
The Best
Network
Of Business
Partners Wins
The 21st Century Business
Model Creates Efficiencies
Companies Can Sell
Products without Ever
Taking Inventory of Them
But it Creates Complexity as Well
Most of the Information You Need to Run
Your Business is Outside Your Firewall
How Can You Be Successful If…
You Don’t Know
• Demand Forecasts
• Inventory Locations
• Supply Availability
• Service Requests
• Cash Balances
Your Partners Have it All
DemandForecasts
InventoryLocations
RepairStatus
CashBalances
ShipmentLocations
Work InProgress
The Data is Out There But Your
Systems are In Here
So What are you Using to Exchange
Data with Your Business Partners?
You Need Business-to-
Business Integration
The Technology that will
allow for Seamless
Exchange of Data with Your
Business Partners
B2B is the Critical Link to
Your Value Chain
Learn More about B2B
Integration
http://www.gxs.com/what_is_b2b_integration