How SCOR Applies to B2B How SCOR Applies to B2B eCommerceeCommerce

Joint Siemens-Intel- Perspective for the Hightech Industry

Herbert Heinzel, Siemens,SBS Partner Supply Chain

George W. Brown, Intel, IT Strategy and Technology

Our Message

• e-Business is it! The internet is a requirement for business - do it or lose it

• An integrated e-supply chain approach has to have focus on an holistic (cross) enterprise view

• Supply Chain CouncilSupply Chain Council has the opportunity to add value to RosettaNet

• Intel/Siemens step up to the plate with a joint project– Objectives – Approach– Value proposition– Pilot scope– Status

Current Situation

• e-Business is it! The internet is a requirement for business - do it or

lose it

– Companies must drive business processes and more timely data

exchanges with suppliers and customers to reduce cycle time in

the network

• Customers continue to request and expect greater supply network

flexibility consistent with demands

– Activities across the supply networks are not synchronized• Business complexity has outgrown supply network business

processes and current tools– Infrastructure (Tools) have not kept pace with the complexity of

business and the requests of customers

– Supply Networks are now a competitive differentiator!

An Integrated e-Supply Chain Approach... ...will generate decisive competitive advantages

Optimization across the entire value-added network

Model View:Model View:One-to-One-One-to-One-

RelationRelation

Supplier(internal or external) Own Company Customer

(internal or external)Customer’sCustomer

Deliver Source Make Deliver Source Make Deliver Source

PlanPlan

e-Biz e-Biz e-Biz e-Biz

Reality:Reality:Many-to-Many-Many-to-Many-RelationRelation

Source Make Deliver

Model View vs.Business Reality

Business Community Integration - an holistic management approach...

* Source: Supply Chain Council

Delivery / Order ProcessingManufacturingProcurement

Supply Chain Planning

Business - and Supply Chain Strategy

Business - and Supply Chain Strategy

*ISCM

Inter - Partner - Key processes

Performance BenchmarksIndustry Best Practices

Performance BenchmarksIndustry Best Practices

Organizational Structureand Workflows

Organizational Structureand Workflows

I+C-Technology StrategyI+C-Technology Strategy Mgt. of Organizational ChangeMgt. of Organizational Change

Su

pp

lie

rsS

up

pli

ers

Cu

sto

me

rC

us

tom

er

Partner - Interface

Processes

PIP‘s

BCI

Intra-& Inter-Enterprise BusinessPerspectives

e-Businesse-BusinessSolutions and ServicesSolutions and Servicese-Businesse-BusinessSolutions and ServicesSolutions and Services

Consulting Services Business Process Consulting Change Management

Business Solutions Supply Chain Management Enterprise Resource Management Business Information Management Customer Relationship Management E-Commerce

IC-Infrastructure Services Desktop and Network Services Operation of Web-Applications IT-Outsourcing Operation of Business ProcessesSys

tem

s In

teg

rati

on

Suppliers &BusinessPartners

Suppliers &BusinessPartners

OurCorp.comOurCorp.com Prospects andCustomers

Prospects andCustomers

e-Enablerse-Enablers

e-Businesse-Businesse-Businesse-Business

Enterprise Resource

Management

Enterprise Resource

Management

Supply ChainManagementSupply ChainManagement

CustomerRelationship Mgmt.

CustomerRelationship Mgmt.

BusinessInformation

Mgmt.

BusinessInformation

Mgmt.

Systems view Process view

A BCI Architecture -Extends Beyond the Boundaries of your Enterprise....

Linking Business Communities by Process Integration and e-Biz Enablers

CollaborativeBusiness Community

Business-, SC-Strategy

Business processes

Applications / Enabling Technologies

Methodology/ Mgt. Tools

Business-level

Collaborative planning + execution

Suppliers OurCorp.com.3PL /

SubcontractorCustomers

BC I

EA I EA IEA I

SCOR SCOR SCOR

RosettaNet

Supplier-Contractmanufacturer-Assembler-Distributor-Shipper-Endcustomer

Intra-Enterprise Level

Inter-Enterprise Level

Performance Management / Joint SC - Metric Alignment

SCOR

EA I

RosettaNet RosettaNet RosettaNet RosettaNet

...and builts on Information Sharing Networks

The Business Community

ITManageing

Board

E-Technologist

Geis, pcOrder

Enduser

AMEX, GSA

Wholesale Distributor

Arrow, Avnet, CHS, Ingram Micro, Marshall, Tech Data

Financier

Deutsche Financial

Manufacturer

3Com, Cisco, Compaq, HP, IBM, Intel, NEC, Siemens, Solectron, Toshiba

Software Publisher

Microsoft, Netscape

Reseller/SI

CompUSA, Computacenter, EDS, Inacom, Insight, MicroAge, Office Depot

Shipper

FedEx, UPS

RosettaNet,the Linqua franca for e-business is set to standardize electronic communication between supply chain partners

Supply Chain CouncilSupply Chain Council has the Opportunity to Add Value to RosettaNet

• SCOR methodology is positioned to enable competitive supply networks through inter-enterprise business process alignment and performance management

• SCOR can add value to RosettaNet through a business process perspective in internet-enabled supply networks

Intel/Siemens Step Up to the Plate

Objectives for a Joint Project• Add value to SCOR methodology by aligning with the

RosettaNet initiative– Leverage SCOR to define inter-enterprise interaction consistent

with an integrated supply chain vision– Facilitate definition of intra-enterprise process response to partner

interaction (as defined by RosettNet)– Identification of SCOR-based PIPs that improve supply chain

management across partners

• Define and implement a joint Siemens/Intel pilot• Share lessons learned through Supply Chain Council and

RosettaNet

Joint Project Approach

• Develop joint value proposition to be approved by SCOR Board and the RosettaNet IT/EC Board

• Plan on collaboration– Pilot open to selected business partners – SCOR methodology extension into B2B modeling/

implementation open to other interested partners/vendors who add value

• Prove the concepts for our industry; generalize and customize for other industries later

• Communicate results from a B2B scenario• Develop a plan for rollout of results

Process Modeling & Automation

Information Bus

EDI

FTP

B2B EAI

Group Private Processes Group Public Processes F

irewall

Company Private Processes

Trading Partner’sProcess Models & Automation

Trading Partner’sPrivate

Processes

Inter-CompanyPublic

Processes

ERP and Legacy AppsERP and Legacy Apps

Metadata R

epositories

Goal: Integrated Processes/Services

RosettaNetRosettaNetPIPsPIPs

Alphabet

Grammar

Dialog

Words

human-to-humanbusiness exchange

partner-to-partner eBusiness exchange

Sound Internet

Business Process

Telephone

Business Process

Telephone

DIALOG

Ecom Application

XML

Framework

Dictionaries

RosettaN

etPIP

eBusiness Process

PIPs Represent Agreed Upon Protocols to Carry out B2B Solutions

SCOR Can Map to RosettaNet

SCOR SCOR SCOR SCOR

PIP PIP PIP

EAI EAI EAI EAI

BCI

BusinessPartners

Inter-EnterpriseProcess Integration

Intra-EnterpriseProcess Integration

BusinessCommunityIntegration

Partner-Interfaces Trigger Intra-enterprise Process and PerformanceManagement

Linking Business Communities by Process Integration and e-Biz Enablers

Value Propositionfor Mapping SCOR to RosettaNet

Extend SCOR methodology across enterprises and for globalization Develop best practices for cross-enterprise collaboration

Customize models through RosettaNet standards Map RosettaNet process taxonomy to SCOR processes Introduce new PIPs for sharing metrics

Add strategic modeling level for e-Business Develop collaboration capabilities

new tools for B2B modeling and simulation new metrics for supply chain networks new cross-enterprise planning

Enhance SCOR-workshops by SC-network modules and business cases

Scope of Pilot

• Focus on business area of common interest to Siemens and Intel

• Joint evaluation and integration with other supply chain partners– downstream partner for sure (e.g. SAP as a customer of

Siemens)– an intermediary business partner is a possibility

• Align with other supply chain improvement projects within our respective companies

• Leverage SCOR to the extent possible• Share SCOR-based performance metrics across the supply

chain

Pilot Supply Chains Could Look Like this....

Supplier Intel

Manufacturer Siemens

Customer SAP

Example: Product Stream from sand to chip to board to system

Pilot Supply Chains Could Look Like this....

Supplier Intel

Manufacturer Siemens

Customer SAP

Customer(e.g.Bank)

Spareparts Logistic

Siemens ITS

Example: Spare Part Stream add technical service

Pilot Supply Chains Could Look Like this....

Supplier Intel

Manufacturer Siemens

Customer SAP

Logistic / Service

Provider, e.g. UPS

Contract Manufacturer

(e.g. Solectron)

Example: Third Party Fullfillment Stream add supply chain partners

Status of Intel-Siemens Pilot

• Pilot planning is being coordinated– Link: RosettaNet projects in both corporations

• Both companies active on RosettaNet Board• Joint RN projects are on the roadmap for this year• Solution Partner Participation from Netfish Technologies

– Link: Current Intel supply chain improvement projects that will be ready for European (Siemens) pilot this year

– Link: Common Subcontractors under consideration– Link: Collaboration with SCC vendors

• NetFish for Exchange Server architecture• Gensym for SCOR-based simulation• IDS Scheer for SCOR and B2B modeling• Agile for third party fullfillment integration

• SCOR-based B2B Modeling methodology being developed through on-going SCOR projects

Intel-Siemens-Netfish –

A Prototype Demonstration of Technology Enablers

Automating ComplexBusiness Processes through use ofMultiple RosettaNet PIP Interactions

RosettaNet EC Prototype 2A5, 3A4, 3A5, 3A6 - SAP/Siemens/Intel

SAP3A4

Buyer

SAP/R3

SAP/R3

SAP/R3

Intel

SiemensSeller/Buyer

Seller

Status:Completion

2A5

3A53A4 3A6PIP Interactions:

2A5, Technical Product Query3A4, PO Exchange No PO change No PO cancel3A5, Query Order Status3A6, Distribute Order Status PIP Version 1.1 RNIF 1.1

Problems – Trading Partner Management

Disparate communication protocols

Disparate security protocols

When quantity of trading partners dramatically increases for which secure communication is required or the mix of partners changes, how are certificates managed?

Problems– Business Data Integration

Disparate Data Formats

Disparate Data Models

Disparate ERP Systems

Problems– Business Process Integration

Even assuming seamless data format and data model exchange

Disparate Processes, Policies and Procedures

Next Steps

• Define partner specific components/ products

• Describe intra-enterprise business processes

• Describe inter-enterprise supply chain(s)

• Develop pilot scenario

• Elaborate joint value proposition

• Shape Supply Chain Council - RosettaNet relationship

• Define milestones for SAG-Intel-SAP integration model

• Describe architecture and business case