electronic seen 19.11.10

7/30/2019 Electronic Seen 19.11.10

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Electronic CommerceSavior or Pipe Dream?

Kevin J. Williams, C.P.M., A.P.P.

Purchasing SpecialistESPN, Inc.


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The Challenge of Change

"There is a certain relief inchange, even though it be from

bad to worse; as I have found intraveling in a stage-coach, that it

is often a comfort to shift one'sposition and be bruised in a new

place." - Washington Irving


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Quick FactsLaunched September 8, 1979

6 Domestic Networks including ESPN, ESPN2,ESPNEWS, ESPN Classic, ESPN Extra and ESPNOW

Other ESPN businesses include ESPN.com, ESPNRadio, Sportsticker, ERT, ESPN the Magazine andESPN Enterprises which includes ESPN Zone

Restaurants, Interactive Software, Home Video, CDSand Pay Subscriptions

Headquartered in Bristol, CT and employs 2,4OOFTES


4/20

Disney Efforts Directly from Michael Eisners presentation at the

2/2000 Shareholders Meeting in Chicago:Another effort underway to optimize ourcompany's performance is our Strategic Sourcing

initiative, a top-to-bottom review of ourpurchasing practices. Within five years, we expectto be saving more than $300 million annually from

Strategic Sourcing. Since we'd all rather I talkabout movies, let's put this in terms of movies:$300 million is the equivalent of earning the

combined ultimate profits of "The Rock," "Ransom"and "The Waterboy" each and every year.


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Keys to Success

Organization

Skills

Process

Tech.


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The Procurement Cycle

Engineering Design

Specifications

Negotiation

Supplier

Selection

Order Placement

Delivery

Quality

Customer Involvement

Purchasing Involvement


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The Old Purchasing ProcessDemand Signal

Purchasing

Existing Contract?

Dollar value requires bids?

Obtain bids/evaluate

Select suppliers

Place Order

Goods delivered

P.O. closed

Release on ContractYes

No

Source: Purchasing/Michael and Mary Lu Harding


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The Uncertainty of E-Commerce

E-Commerce + Knowledge - 1,443,307 hits

E-Commerce + Confusion - 597,982 hits E-Commerce + Problems - 3,400,456 hits

E-Commerce + @#!&%#? - 598,397 hits E-Commerce + Purchasing - 597,982 hits

Source: Infoseek (4/2000)


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What is E-Commerce Really

The buying and selling of productsand services by businesses and

consumers over theinternetTypically there are threetypes of e-commerce transactions:

business to business (i.e.Cisco),business to consumer (i.e. etailers),

and consumer to consumer (eBay).Source: ask.com


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A Different Approach

Internal Systems

Generic External Tools

Commercial External Systems


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Internal Systems

In-House

Third Party

Combination Large or Small


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Generic External Tools

E-Mail

E-Fax

Online Ordering (Dialup andInternet)


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Commercial External Systems

Commercially marketed e-commerce applications

Transition/Replacement forEDI

Blurring the lines


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Getting Started

Avoid Paralysis by Analysis

List your resources (brainstorm) Group by category

Easy Moderate

Challenging


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Easy Options

Little to no change

Start with the basics Look for freeware

Use your current system to its fullest


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Moderate Options

Relatively short implementation (6-12months)

Resources decide potential success Software

Hardware Internet solutions


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Challenging Options

Achievable, but longer time frame

(12+ months) Use the time effectively

Separate marketing hype from realrequirements


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Get Involved!!!

Purchasing is not consulted enough

Talk with: Suppliers

Peers

Government Software companies


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Avoid the Pitfalls

Dont automate inefficiency

If you need a workaround, you need anew system

Re-engineering still works


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Summary

Any Questions?

electronic seen 19.11.10

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