Download - 1 Supply Chain Management to optimise the Digital Value Chain

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Supply Chain Management to Supply Chain Management to optimise the Digital Value optimise the Digital Value

ChainChain

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Within the scope of the TEDIP-Survey and

on the basis of digital libraries!

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Diploma thesis:

Elisabeth Bergner

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ContentContent1.1 Definition of the Network Economy

1.2 Value Chain

1.3 Digital Value Chain

1.4 Definition of the digital Supply Chain

1.5 E-Supply Chain Management

2 Digital library

2.1 The Value Chain of the digital library

2.2 Services offered by the digital library

2.3 Models of service provision

2.4 Charging service provision

2.5 Cost Model for the digital library

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• A digital library decide on opening a new business segment, namely to assemble and to distribute knowledge objectsknowledge objects in the context of customised scheduled multi-media based documents on certain topics.

• The aim of the presentation is to get an idea of what is meant by digital supply chain in this context.

Starting positionStarting position

1.1 Definition of the Network Economy

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Network Economy

• What investigates TEDIPTEDIP?• Economic mechanism of action of the

digital economy that is the digital supply chain. In order to form the basis of E-Business and E-Commerce.

• What is the point?- Focus on digital knowledge objects and their

relating effects.

1.1 Definition of the Network Economy

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Value Chain

• The value chain represents the value activity of the enterprise.

• The value chain analyses the potential for cost reduction and differentation.

• The value chain is different for each enterprise.

• There is a relation to the ressourced based view.

1.2 Value Chain

ProcurProcurementement

Serviceprovision

SALESALE

Trans-sectoral planning and controlling.

Optimisation of planning and controlling.

Procurement

Serviceprovision

SALESALE

Procurement

ServiceServiceprovisionprovision

SALESALE

Procurement


SALESALE

Procurement

Serviceprovision

SALESALE

Trans-organisational planning and controlling.

Procurement


SALESALE

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Digital Value Chain

• The information of the physical value chain are prepared and are available by the information-system.

• Single physical processes of the value chain are sustained through digital value chain processes.

• Additional values are generate the basis of digital value chain processes.

• New business models and services are generated in the digital value chain.

1.3 Digital Value Chain

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Critisism of the value chain

• It is difficult to distinguish between the different value activities of the value chain.

• The restriction of the generic strategies

• Structur-Behaviour-Result Paradigma

• „Inside-out“ und „outside-in“

• Dynamic of the market or solid structur of the market

1.2 Value Chain

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SCM

• Definition of Supply Chain Management:– Value Chain Management– Management of a Value-Network


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Ultimatecustomer

Supplier of thesupplier

Service provision

supplierCustomer

Plan | Market

procure| handling | distribute

Informations-, Information, Service and Payment Flow

Quelle: A.T.Kearney, 1994.

authorauthor

publisherspublishers

Digital Digital LibraryLibrary

UniversityUniversityPublishersPublishers

StudentsStudentsReadersReaders

AssemleAssemleKnowledgeKnowledge

ObjectsObjects

1.4 Definition of the digital Supply Chain/ 2 Digital Library

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Optimisation through supply chainmanagement (SCM)

• Optimisation through the introduction of Value Chains in an enterprise

• Optimisation through enhancement of present Value Chains


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Orientation Strategical OperationalInternalInternal - Strategies to start up with

processes- for service provision- Outsourcing or inhousing- Quality Management

- Quality assurance- Purchase order quantity- Optimise process- Systems for planning, and controlling orders.

MarketviewMarketview - Develop a SCM – mission statement- Procurement- and Distribution strategies- Supplier- und customer management- Develop a SCM – Controlling – und Benchmarking-System

- Internet presentation- Procurement- and Sales market research- Supplier evaluation and –assortment- Procurement

CollaborationCollaboration - Supplier and Customer Structur policy- Agreement of SCM – Strategies with business partners - Legal definition of the collaboration- Enhance business processes together with the collaboration partners

- Manage organisational and technical interfaces- to business partners Communication strategies in consideration of special technical systems.

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Process OptimisationProcess Optimisation

• Building material and information flows between the Building material and information flows between the enterprises of a Value Chain is a good starting point for enterprises of a Value Chain is a good starting point for the optimisation and survey. the optimisation and survey.

• Process optimisation leads through lower costs or Process optimisation leads through lower costs or enhanced service provision of the chain. enhanced service provision of the chain.

• Costreduction is the consequence of optimizing other Costreduction is the consequence of optimizing other categories: Quality, Marketing, Collaboration, categories: Quality, Marketing, Collaboration, Scheduling and Controlling.Scheduling and Controlling.

• Introducing Information Technologie for example, Introducing Information Technologie for example, ECR (Efficient Consumer Response) makes it possible ECR (Efficient Consumer Response) makes it possible to reduce cycle time through the whole value chain.to reduce cycle time through the whole value chain.


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Supply NetworksVirtual NetworkVirtual Network

1.1. CollaborationCollaboration

2.2. Core competence (Outsourcing)Core competence (Outsourcing)

3.3. Interorganisational systems for digital Supply Interorganisational systems for digital Supply Chain CollaborationChain Collaboration

Distinction to the value chain:Distinction to the value chain:

„Transaction still mainly occur between two partners at one time“


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Global InformationNetwork

ElectronicAdvertising

MARKETResearch

ElectronicOrdering

ElectronicMarkets

ElectronicPayments

InformationServices

ElectronicCommunication

Suppliers

Sales/Order ProcInventory Mgmt.Service PlanningDistribution Mgmt.Payment SystemsDatabase SystemsTransactionNetwork Interface

Suppliers

Sales/Order ProcInventory Mgmt.Service PlanningDistribution Mgmt.Payment SystemsDatabase SystemsTransactionNetwork Interface

Supply Chain Database

Demand ForecastSales DataInventory DataService DataDistribution Data

Supply Chain Database

Demand ForecastSales DataInventory DataService DataDistribution Data

Service-Sales/Order Proc.-Inventory Mgmt-Service Plan-Distribution Mgmt-Payment Service-Database Systems-Transaction--Network Interface

Service-Sales/Order Proc.-Inventory Mgmt-Service Plan-Distribution Mgmt-Payment Service-Database Systems-Transaction--Network Interface

Distributers-Sales /Order Proc.-Inventory Mgmt.-Service Plan-Purchasing-Distribution Mgmt.-Payment Systems-Database Systems-Transaction-Network Interface

Customers(Readers, Journals)

Customer Service Database

Order Status Data

Customer Service Database

Order Status Data

= Orders andPayments

SUPPLY CHAIN NETWORK

Trans-organisational planning and controllingTrans-organisational planning and controllingof a virtual libraryof a virtual library

Library ILibrary ILibrary ILibrary I Library IILibrary IILibrary IILibrary IILibrary IIILibrary IIILibrary IIILibrary III

Trans-organisational Trans-organisational planningplanning of a virtual libraryof a virtual library

Library ILibrary ILibrary ILibrary I Library IIILibrary IIILibrary IIILibrary III

PublisherPublisherPublisherPublisher PublisherPublisherPublisherPublisher

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Value Chain

• Shorten inherent waiting time in the system: no bundling of publications

Single copy for specific target group

• IT influences VC.

2.1 The Value Chain of the digital library

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Services of the digital library

• Resourcing:- Digitale books and journals

- Metadata

- Search and Profilservices

• Digital service:- Interlending

- Konvertation

- Print orders

2.2 Services offered by the digital library

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Service Models

• Activ supply

• Passive supply

• Activ collection

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Cost models for the digital library

• Single subscription

• Licences for user groups

• Costs per demand

• Costs per accomplishment

• Costs per document

• Costs per supply

• Costs per time (for non discret services)

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Process-Cost-Management

• Where use Activity Based Costing?

• Activity based Budgeting

• Activity based Performance Measurement

• Activity based calculating

• The aim is to calculate the product price Target Costing

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Value Chain - Survey

• The value chain is very important for the cost management.

• The three elements of the survey are:

1. Strategical position

2. Analysis the cost drivers

3. Analysis the value chain

1.2 Value Chain

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Charging Service

• known Users

• anonymous Users

• Cooperation among digital libraries

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Supply Chain Collaboration

Costs and BenefistsCosts and Benefists Performance MeasuresPerformance Measures ResultsResults

System Implemenation

and Integration Cost

Process Coordination

and Integration Cost

Data Translation

and Intgeration Cost

Partnership Instability Cost

Total Cost of

Ownership of

System

Switching Cost

Partnership

Opportunity Cost

Cycle Time Reduction

Process Cost Reduction

Supply Chain

Cost Reduction

Net

Benefit

Of

SCM

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• With TCO TCO (Total Cost of Ownership) and

the Interorganisational Cost Management (IOCM)Interorganisational Cost Management (IOCM) are two areas that cover the Supply Chain Costing. It is important is to divide the determination for costs in the following three parts.

• Direct costs• Costs of the proceedings• Transaction costs

Through this division you are able to come up to the requirements of the value chain.

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Costs levels of the value chain

Direct costsDirect costs

Proceeding costsProceeding costs

TRANSACTION COSTSTRANSACTION COSTS

Direct costsDirect costs

Proceeding costsProceeding costs

ENTERPRISE 1ENTERPRISE 1

ENTERPRISE 2ENTERPRISE 2

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Transaction costs

• The starting point of the critisim is cost accounting, that is not able to represent costs thereby incurred outside the service provision.

• Transactions costs of procurement and sale• cost accounting could be extended by transaction

costs and collaboration costs.• Transactions costs can only be limited connected

with present financial instruments.• Criticism: Devision into direct and indirect costs!

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Assignability of transaction costs

• Nevertheless of critisism there are starting points to introduce transaction costs due to the following reasons:

• Align transaction costs with the value chain• Strategic position is possible• Structural cost drivers can be integrated • Customers are the starting point.

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Process costs within the value chainProcess costs within the value chain

• SCORSCOR Model for the VC (Top Down)• Activity based Costing is bottom up• Begin with the level of the costs centers and

analyse these activities. Then comprimise them to processes.

• Standardised process definition in the enterprise has the advantage, that due to process description and the relating cost data of an enterprise, these cost data and process description could be compared.

• Different indirect costs.

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Distribution

P l a n n i n g

CUSTOMER

Procurement Service

SCOR

Process

Cost center 1 Cost center 2 Cost center 3

ActivitiesActivities ActivitiesActivities ActivitiesActivities

1.11.1

1.21.2

1.31.3

2.12.1

3.33.3

3.23.2

3.13.1

2.22.2

Distribution

Library ILibrary ILibrary ILibrary I Library IILibrary IILibrary IILibrary II

PublisherPublisherPublisherPublisher PublisherPublisherPublisherPublisher

P l a n n i n g

Procurement SupplyService

Cost centersLibrary II

Cost centersLibrary I

Cost centersPublisher

Cost centersPublisher

ActivityActivity

1.11.1

1.21.2

1.31.3

ActivityActivity

2.12.1

2.22.2

2.32.3

ActivityActivity

3.13.1

3.23.2

3.33.3

ActivityActivity

4.14.1

4.24.2

4.34.3

ProcessesProcesses

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Literature/ URLhttp://silmaril.smeal.psu.edu/misc/supply_chain_intro.html 13-01-2003.http://www.otp.org Abruf 7.12.2002 http://www.mastercard.com/sethttp://www.graphics.uni-bonn.de/dfgspp.v3d2Abruf 5.12.2002http://www.milicent.digital.comAbruf 4.12.2002http://www.hrl.il.ibm.com/mpayAbruf 3.12.2002http://www.digicash.comAbruf 2.12.2002http://www.cybercash.deAbruf 2.12.2002http://elektra.informatik.tu-muenchen.deAbruf 1.12.2003

http://www.otp.org/

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Literature/ URL• http://medoc.informatik.tu-muenchen.de

• http://www.global-info.org

• http://link.springer.de

• http://opera.iiie.org

• http://ist.unibw-muenchen.de/Lectures/WT2002/DigiBib/Frank/PraesentationDigitaleBibliotheken.pdf

• http://www.dlib.org/dlib/december02/soergel/12soergel.html

• http://www.cni.org/regconfs/1997/ukoln-content/repor~24.html

• http://www.firstmonday.org/issues/issue7_5/lynch/index.html

• http://www.fiz-karlsruhe.de/pressroom/getinfoe02.html

• http://www.bl.uk/services/publications.html

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Literature/ URLAndersen Andersen http://www.business.auc.dk/evolution/esapapers/welcome.html

McLarenMcLaren et.al.: Supply Chain collaboration alternatives.S349.

http://www.emeraldinsight.com/1066-2243.htm

http://www.emeraldinsight.com/1066-2243.htm

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literature/ TEDIP Report

Keszi,R;Makó,C:Keszi,R;Makó,C: Outsourcing as An Indicator of Regional Competitiveness in the E-Economy. A Methodological Attempt to Analyse 18-Countries Data of EMERGENCE Project

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H.BullingerH.Bullinger:Optimierung der Abläufe, in:ZWF Jahrg.97,(2002)

Boutellier, R.,Locker,ABoutellier, R.,Locker,A.:Beschaffungslogistik: mit praxiserprobten Konzepten zum Erfolg, München-Wien, Hanser, 1998.

The third ACM Conference on Digital Libraries, Pittsburgh, 1998.

Horvàth und Partner(Hrsg.): Horvàth und Partner(Hrsg.): Qualitätscontrolling/Ein Leitfaden zur betrieblichen Navigation auf dem Weg zum Total Quality Management, Stuttgart, 1997.

Wildemann, H.:,Wildemann, H.:,Supply Chain Management und E-Technologien in: Reihe BWL aktuell, Klagenfurt,2001..

Ziegenbein,K.:Ziegenbein,K.:Controlling in: Kompendium der praktischen Betriebswirtschaft, Hrsg.: Olfert, K., Leipzig, 2002.

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Literature /periodicals

Houlihan, J.:Houlihan, J.:International Supply Chain Management in: International Journal of Physical Distribution and Logistics Management, Vol.15, No.1, p.22-38, 1985.

Jones,T.and Reilly,DJones,T.and Reilly,D.: Using Inventory for Competitive Advantage through Supply Chain Management in: International Journal of Physical Distribution and Lgoistics Management, Vol. 15, No.5, p.16-22, 1985.in ZWF: Jahrg.95(2000)7-8, Prozessoptimierung, S.349.

McLaren, Head et.al:McLaren, Head et.al:Supply Chain collaboratives: understanding the expected costs and benefits.http://www.emeraldinsight.com/1066-2243.htm Abruf 10.12.2002

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