natalia parmenova business development manager sapmarkets europe building an egovernment procurement...

Natalia ParmenovaBusiness Development

Manager

SAPMarkets Europe

Buildingan

eGovernmentProcurement

together

SAP 2000 SAPMarkets / 2

What we would like to share with you today

What is the profile of SAPMarkets

Where we see the eMarketplaces business going

What solutions SAPMarkets provides to the clients

What lessons we have learned together with our partners in eMarketplace projects

How SAPMarkets can bring value to your eMarketplace


Corporate Profile

SAP AG spin-off Headquarters in Palo Alto, California Announced March 15, 2000 Opened for business in May, 2000 Employees: ~200 initially, ~400 by 2001 SAP to retain majority control of SAPMarkets

SAP AG spin-off Headquarters in Palo Alto, California Announced March 15, 2000 Opened for business in May, 2000 Employees: ~200 initially, ~400 by 2001 SAP to retain majority control of SAPMarkets


SAPMarkets Regional Offices

Palo Alto- Headquarters- Marketing- Development Center- Biz Development Americas

Montreal- Development Center

Walldorf- Development Center- Biz Development Europe

Bangalore- Development Center

Singapore- Biz Development Asia


Mission of SAPMarkets

Develop, market and operatethe open business network of

marketplaces.

Develop, market and operatethe open business network of

marketplaces.


Why Form SAPMarkets?

Focused, agile entity

World wide strength driven from Palo Alto at the heart of the Internet revolution

Leverage SAP ecosystem (customers, partners, service organization and sales force)

More than buying and selling (collaborative forecasting, dynamic pricing, RFP/RFQ matching, tendering, ...)

Leverage SAP’s existing industry knowledge

Draw on SAP’s integration knowledge

Where we see eMarketplaces

business going


B2B e-commerce is evolving rapidly to address more complex business processes

Exchange-to-exchangeComplex Business Process Direct Goods and ServicesTrade FacilitationTrade Services

E-MarketplacesBuying and SellingIndirect Goods and Service

Point-to-Point ConnectionsDiscreet Applications

B2B eCommerce evolution trend


Portal(e.g. B2C Sales - Mall)

Internal Marketplace(Integration Hub)

Marketplace Options

1:n Marketplace(e.g. Supply chain hub)

n:m Marketplace(e.g. Exchange)

A)

D)C)

B)

Federation


The New Landscape of Collaboration

Enterprise Marketplace Consumer


Consumer Portals / Malls


Exchanges


Channel Master Marketplaces


Corporate Marketplaces


The New Landscape of Collaboration

Enterprise Marketplace Consumer


e-Business Applications for On- and Off-Ramps

On-/Off-Ramps


Syndication of Services

3rd party service provider


Single Access

What lessons we have learned together with our

partners in eMarketplace

projects


AutomotiveAutomotive

N. AmericaN. AmericaUtilitiesUtilities

AerospaceAerospace

EnergyEnergy

Global UtilitiesGlobal Utilities

Industry e-MarketplacesIndustry e-Marketplaces

EngineeringEngineering

Consumer Consumer ProductsProducts

Chemicals & Chemicals & PharmaceuticalsPharmaceuticals

Metals & MiningMetals & Mining


Observation 1: PR War Turns into Delivery War

Promises: Increase shareholder value Maximize liquidity Increase investor

confidence Improve market efficiency

Facts: Economic value of pure

exchanges is unclear Applications create the

value “Show me the money”

attitude


Observation 2: Integration Continues To Be Key

Needed: A business plan Openness Partners’

components Integration Common

messaging semantics

Time before plan changes

Str

ateg

ic n

atu

re o

f in

teg

rati

on

Low High

High

Hackers heaven

A real plan:Integration Architecture

Go to the lab:

?

Short term fix:Buy/build tactically

Program

Program

Program

Program

Program

ExtractProgram

Down-loadFile

LoadProgram Screen

Scrape

Trans-actionFile

ExtractProgram

Down-loadFile

LoadProgram

MessageQueue

LoadProgram

DatabaseReplicator

Down-loadFile

ExtractProgram

Trans-actionFile

MessageQueue

Application System B

Program

Application System CApplication System A

CRM SCM ERPBIeCom-merce

Workplace

Marketplace


Observation 3: Applications Become Services

Components migrateonto marketplaces:

Serve multiple companies Hosted Ubiquitous Personalized Partner software built-in Integrated with back-end Scalability, performance,

availability and security Supply Chain Optimization

• MRO Procurement• Direct Procurement• Planning and Optimizing• Analysis

Relationship Management• Sales• Service• Marketing

B)

A)


Observation 4: Revenue models impact service offerings

Time

Revenue

Over time, value-added services revenue will become dominant revenue source

Over time, value-added services revenue will become dominant revenue source

Current focus is on driving transactions to generate revenue for exchange

Current focus is on driving transactions to generate revenue for exchange

Transaction revenue

Value added service revenue

eMarketplace revenue streams will evolve from transaction to value-added services

Success stories of today


Success Story: ec4ec

Buyer / supplier involvement in business & service roadmap planning

Long-term service offering planning (18 months time horizon)

Business plan: 5 year horizon

Distinctive value proposition:

Collaboration between engineers, purchasers and suppliers in creating and procuring complex components

Reduced time-to-market, therefore, lower process costs

Simple, fast and cost-effective solution


Success Story: CPGmarket

potential for cost reductions for sellers and buyers by sharing a technical platform and infrastructure, decreasing procurement cost, reducing the time taken to source products and services

shared planning services to reduce supply chain costs

tailored information to potentially exploit new opportunities

Industry issues oriented

Speed of services offering

Active marketing by all founder-participants

Third-party services

Value proposition:


Success Story: EMARO

Differentiation pointsSeamless integration of business processes through the marketplaceUser oriented Catalog Mgt to enable flexible and comprehensive product offering

Value propositionLower Transaction costsReduced M&S costs for sellerLower prices for buyers

Why to select SAP / SAPMarkets / Commerce One?Availability of solutionOne-stop shopping & strong integration of services & to back-end systemsStrong partnership between SAPMarkets / SAP AG and Deutsche BankStrong partnership for service extension, business development and sales

support


Success Story: hubwoo

Addressing Europe and building strong partnership with other regional marketplaces in USA and Asia

Focusing on large buyers (> 200 Mio € revenues)

eProcurement, Reporting, Benchmarking, Logistics, Transportations

3rd party: Financial services

Lessons learned / experiences:Provide standard solution based on SAP standards


So, all in all, what have we learned?

Business modelling is a key for proving the validity of the ideasproving the validity of the ideas

Rapid deployment coupled with sound service offering road map is a key for for attracting participants attracting participants

Differentiating your value proposition is a key for getting the traffic quickly getting the traffic quickly

Long-term partnerships help to built confidencebuilt confidence

© 2000 Commerce One 16

ACE Project TeamR esou rce Legend

NewC o Pro jectM ana ger

Pro gram M ana ger

Valu e-Adde dServi ces Pro ject

M ana ger

Su ppli er Adopt io n& Conten t M ana ger

Tech nica l Pro jectM ana ger

Bu ySite Pro jectM ana ger

Ma rketS ite Pro jectM ana ger

Conten t M edi aCon sultant

CEO an d Exe cuti veSp onsorsh ip Te am

Auct ion Se rvi cesProje ct M ana ger

T rai ner

C ontentF actory

C1 reso urces

N ewCo reso urces orpartner reso urces

W hite = Ne wCo reso urces

Indi vidua l BuyerIm pl em en tat io ns(see ne xt sli de)

6 Commerce One Confidential

Revenue Outline

Revenues

Reseller: Application Revenues

Hosted Purchasing Revenues

Service Revenues

Transaction Revenues

Purchase Orders

Sponsorship

License Fees

Maintenance

Systems Integration

Access Fees

Auction Services

Advertising

Invoicing

Shipments

Payments Number of Customers

Revenue Sources Revenue Drivers

Su

per

Siz

e

La

rge

Ho

ste

d

Med

ium

Ho

ste

d

Sm

all

Ho

ste

d

Ve

rtic

al

Net

wo

rks

Revenue per customer

Transactions per customer

Av

erag

e P

O s

ize

% o

f d

isco

un

t ac

hie

va

ble

Number of Auctions

Average Commission

Mix of auctions(buyer, seller)

Hosted Subscriptions

Hosted Setup Fees

Hosted Rebate Fees

2000 Comm erce One / 9

TelecommunicationTelecommunication

Global Trading Web

N. A mericaN. A mericaUtilitiesUtilities

Aerospac eAerospac e

Ene rgyEne rgy


Film and TelevisionFilm and Television

Global Trading WebGlobal Trading Web

What solutions SAPMarkets provides

to the clients


Component Architecture

Browser

MarketSet Services Framework

MarketSetAnalytics

MarketSetCatalog

MarketSetLife-Cycle

Collaboration

MarketSetSupply ChainCollaboration

MarketSetDynamicPricing

MarketSetOrder

Management

(further tocome….)

MarketSetProcurement

MarketSet Builder

SAP Materials Management /

SAP Financials /SAP Document Mgmt System

BuyerOn-Ramps

3rd Party Components

Oracle, PeopleSoft, i2, Ariba, etc.

Enterprise BuyerDesktop / Professional

Ma

rke

tSe

tC

on

ne

cto

r

MarketSet

MarketSetBulletinBoard

SAP AdvancedPlanner & Optimizer

Browser

SellerOn-Ramps

3rd Party Components

Oracle, PeopleSoft, i2, Ariba, etc.

SAP Internet Sales / SAP Customer

Relationship Mgmt

SAP Online Store /SAP Sales &Distribution /

SAP Financials /SAP DocumentMgmt System

SAP AdvancedPlanner & Optimizer

MarketSet Platform

TransportServiceProvider

Export/ImportServiceProvider

FinancialServiceProvider

MarketplacesSAP, GTW,

dotcoms, etc.

MarketplacesSAP, GTW,

dotcoms, etc.

Ma

rke

tSe

tC

on

ne

cto

r

xCB

L

xCB

L


Architecture

MarketSet Platform Basic infrastructure on which marketplaces are built: Trading partner connectivity through xCBL Document message routing and transaction processing EDI and RosettaNet gateway support Administration console for process management Marketplace and transaction security and Single Sign On

MarketSet Services Framework Framework for rapid integration of marketplace services: Pre-packaged components for seamless integration of

bundled, premium and third-party services

MarketSet BuilderCreate the front-facing marketplace experience: User Interface builder for HTML and mobile services Community features and services Role based & user driven personalization features Trading Partner Directory


MarketSetAnalytics

MarketSetCatalog

MarketSetLife -Cycle

Collaboration



MarketSetOrder

Management



MarketSet Builder


MarketSet Platform


Architecture - Builder

MarketSet Builder

Front-facing marketplace experience: User Interface builder for HTML and Mobile services

Based on Jetspeed rendering engineHTML input as well as XMLIntegration to SAP’s workplace business content

Community features and services Personalization features

Help market makers create a community Templates System for user/policy management Role-based and user-based personalization Methods for trading partner registration & user login


MarketSetAnalytics

MarketSetCatalog


Collaboration



MarketSetOrder

Management



MarketSet Builder


MarketSet Platform


Architecture – Service Framework


MarketSetAnalytics

MarketSetCatalog


Collaboration



MarketSetOrder

Management



MarketSet Builder


MarketSet Platform


Rapid integration of services Pre-packaged components for seamless integration of

bundled, premium and third-party services Software tools, APIs, documentation, and

methodologies for integrating services Documented in Business Service Framework (BSF)

Cookbook

Native support for xCBL xCBL = XML Common Business Library -> http://www.

xcbl.org/ Document framework for robust XML exchange


Architecture - Platform


MarketSetAnalytics

MarketSetCatalog


Collaboration



MarketSetOrder

Management



MarketSet Builder


MarketSet Platform

MarketSet Platform

Security Marketplace security Secure document message routing SAP Trust Center services integration

Connectivity Establish xCBL communication points for trading

partners Integration of SAP applications via MarketSet

Connector EDI gateway for transaction services and supplier

integration RosettaNet gateway support

Management Administration console Marketplace management Performance tuning


Marketplace Services on demand

Marketplace front end(role based, personal user interface with access to marketplace services & application, set of html/XML templates)

MarketplaceServices

(hosted Services provided by Marketplace)

Peopleacting in roles (purchaser, employee), participatingin business scenarios

MarketSet

MarketSet Platform


Analysis Services

Catalog Services

Logistics Services

Design Services

Planning Services

…FinancialServices

Trade Services

Dynamic Pricing

Order Mgmt.

Bulletin Board

Market Buyer

MarketSet Builder

eProcurement

Order Management eCatalogue

Analysis

Collaborative Planning Collaborative Design

MarketplacePlatform MP Performance Management Market Connect Security

MarketSet Builder User Management


MarketSet Architecture – Logical Diagram

MarketSet Builder

MarketSet Service Framework

MarketSet Analytics

BW

ITS

Financial Service

Enterprise Buyer ProEBP/CRM

Requisite

ITS

Enterprise Buyer DeskBuysite

SAP APOAPO

Live Cache

ITS

Marketplaces

3rd Party

Oracle, PeopleSoft,..etc

Legacy

SAP APOAPO

Live Cache

ITS

Marketplaces

3rd Party

“Oracle, PeopleSof,..etc”

Legacy

Browser Browser

MarketSet Procurement

EBP/CRM

ITS

Security Package

MarketSet Platform

MarketSet OM

CRM

Security Package

Buy Side On Ramps Sell Side On Ramps

MarketSet SCC

APO

Live Cache

ITS

MarketSet LC

Live Cache

KPro

PLM

ITS

SAP R/3MM

FI

DMS

SAP R/3SD

FI

DMS

Online Store

MarketSet Info Services

Advertisement Feed

News Feed

*not part of MarketSet Delivery

Logistic Service Trade Service

Community Services

Trading Partner Mgt.

User Mgmt / Security

Communities

Business Service Mgmt

SonicMQ

PDC*

BDC*

Firewall*

Load Balancer*

Foglight

CCMSPortal Router

Data StorageDBs

LDAP

Round Trip Tracking

Multicast

BCMapping

XDK Pro

XPC

MarketSet DP

Websphere

DPE

Security Package

XDK Pro

MarketSet Bulletin Board

Websphere

BB

Security Package

XDK Pro

User InterfaceJetspeed

Cocoon

Search

MarketSet Catalog

Content Engine

iMerge

SAP Internet SalesITS

Internet Sales/CRM

IPC

Dr. Fuzzy

MarketSet ConnectSonicMQ

XDK Pro

Mapping

Transformation

MarketSet ConnectSonicMQ

XDK Pro

Mapping

Transformation

Marketplace

Transformation

What is Collaborative

Business Scenario


What is a Collaborative Business Scenario?

Collaborative Business Scenarios

Are business processes that transcend the borders of individual enterprises

Involve multiple parties and people with defined activities and roles

Span multiple IT environments and systems

Make use of internet technology and services

Can take place on marketplaces and hubs

Participant ParticipantParticipant

ActivityActivity

Activity

Activity

Activity

Activity

Activity

Activity

Activity

ActivityActivity


Rules of Drawing

SellerSellerBuyerBuyer MarketplaceMarketplace

Action done by Action done by buyerbuyer

Action done by Action done by sellerseller

Functionality of buyer´sFunctionality of buyer´sbackend systembackend system

Action done by Action done by market placemarket place Functionality ofFunctionality of

Enterprise BuyerEnterprise Buyer

Functionality ofFunctionality ofMarketSetMarketSet

Functionality ofFunctionality ofInternet Sales orInternet Sales or

Online StoreOnline Store

Functionality of seller´sFunctionality of seller´sbackend systembackend system

Data passed via standard market place interface

Color Key

Column Key

Application component

Other standard interface

xCBL, SAP XML

Software behind firewall of buyer, which allows access to marketplace

Software behind firewall of seller, which allows access to marketplace

Includes also Market Buyer and Order Management

Active form is used for actions done by a user. Passive form is used for actions done automatically by the system


Introducing the Marketplace

ParticipantParticipantParticipantParticipantParticipantParticipant

m : n

MarketplaceParticipantParticipantParticipant

ParticipantParticipantParticipant

m : 1 : n


Applications follow ProcessesP

roce

sses

Inter-Enterprise Collaborative Applications

on Marketplace

Ap

pli

cati

on

s

Backend Backend

Marketplace

Backend Backend


Initiator Marketplace Respondent

RFx Process

Need for RFx

Prepare Engineering Documents

Create RFx

...

Review bids and select winner

...

Need for Business

Receive RFx

Prepare Engineering Documents

Create Bid

...

Bulletin Board

Bac

ken

d Backen

d

...


Request for Information


Product / Product / product group is product group is

specifiedspecified

Select supplier Select supplier sub-setsub-set

Read invitationRead invitation(with link to RFI)(with link to RFI)

RFI is publishedRFI is publishedin Bulletin Boardin Bulletin Board

Provide Provide informationinformation

Update trading Update trading partner directorypartner directory

DP

DP

DP

Email system

BB

Read notificationRead notificationEmail system

TPD

TPD

SubmitSubmitDP

No automatic update of TPD so far


Detail: Request for Quotation with DP (public)


Define product Define product specificsspecifics

Read Read notificationnotification

Specify RFQSpecify RFQ

RFQ is RFQ is publishedpublished

in Bulletin Boardin Bulletin Board

Request for Request for registrationregistration

SubmitSubmit

Update trading Update trading partner directorypartner directory

Make bidMake bid

Send out opportunitySend out opportunityresult or convert toresult or convert to

reverse auctionreverse auction

DP

DP

BB

DP

Email system

DP

DP

Read notificationRead notification

Select winner(s)Select winner(s)DP

Email system

TPD

TPD


Detail: Request for Quotation with DP (non-public)


Select supplierSelect suppliersub-setsub-set

Define product Define product specificsspecifics

Read invitationRead invitation(with link to (with link to

RFQ)RFQ)

Read Read notificationnotification

Specify RFQSpecify RFQ

SubmitSubmit

Make bidMake bid

DP

DP

DP

Email system

Email system

DP

DP

Read notificationRead notification

RFQ follow-upRFQ follow-up

Select winner(s)Select winner(s)

DP

DP

Email system

Send out opportunitySend out opportunityresult or convert toresult or convert to

reverse auctionreverse auction

DP

TPD


Dynamic Pricing

RespondentXYZ Inc.

InitiatorABC Inc.

Identify obsolete equipment

Select saleschannel: Auction

Create quotation

Review bids and select winner

Createsales order

Fulfillment and billing

Identify need for equipment

Select supply channel: Auction

Find auction and bid on auction

Selected as winner of auction

Createpurchase order

Receipt & payment

XML

XMLXML

HTML

HTML

AuctioneMail

Example: Auction for Obsolete Equipment

Marketplace

ER

P B

acke

nd

ER

P B

ackend


Bulletin Board

BULLETIN BOARDBULLETIN BOARD

Marketplace

Business Applications

BBP - Bid Invitation

Delivery Note

RFP/RFQ

Exchanges

Dynamic Pricing

Asset retirement

Auctions


Auction is publishedAuction is publishedin Bulletin Boardin Bulletin Board

Detail: Reverse Auction

MarketplaceMarketplace

Specify productSpecify product

Specify auctionSpecify auction

Read invitationRead invitation(with link to auction)(with link to auction)

SubmitSubmit

Make bidMake bid

Select supplierSelect suppliersub-setsub-set

DP

View best bid View best bid and make new and make new

bidbid

DP

DP

DP

Email system

Buyer Buyer Seller Seller

DP

TPD

BB

DP

Close auction Close auction and send out and send out opportunity opportunity

resultresult

DP


Buyer Buyer Seller Seller MarketplaceMarketplace

Specify productSpecify product

Specify auctionSpecify auction

SubmitSubmit


Make bidMake bid


bidbid

Detail: Forward Auction (manual)

DP

DP

DP

DP

BB

DP


resultresult

DP



bidbid

Buyer Buyer

Auction is Auction is createdcreated

DP

Seller Seller MarketplaceMarketplace


Make bidMake bid


resultresult

Detail: Forward Auction (unused equipment)

DP

DP

BB

create quotationcreate quotation SD

Identify surplus Identify surplus equipmentequipment

PM

Mapping in SAP Business Connector required

DP


Buyer Buyer Seller Seller MarketplaceMarketplace

Auction is createdAuction is created


Make bidMake bid


bidbid

Detail: Forward Auction (excess stock)

DP

DP

BB

Create quotationCreate quotation

Identify and reserveIdentify and reserveexcess stockexcess stock

APO

SD

DP


resultresult

Excess stock is Excess stock is reservedreserved

MM

Mapping in SAP Business Connector required

DP

How SAPMarkets

can bring value to your eMarketplace


Supporting the dynamic needs of the B2B industry

ProductsProducts

Continued release of product features and Continued release of product features and enhancementsenhancements

Open Business Services LayerOpen Business Services Layer Developing more on-ramps Developing more on-ramps

PartnershipsPartnerships

Continued open standards and Continued open standards and interoperabilityinteroperability

Further development of the Global Trading Further development of the Global Trading WebWeb

Building integration partners networkBuilding integration partners network

BusinessBusinessServicesServices

Aggressive development of relationship with Aggressive development of relationship with third party solution providersthird party solution providers

StrategyStrategyDevelopment AreaDevelopment Area


SAPMarkets Solution Portfolio

.net Service Hub Service Registry Add-in Services

Financial Logistics Insurance Legal Content Auction Advertising Recruitment News/Search Learning Translation, …

Other marketplacesEnterprise Buyeron-ramp

MarketSet Webflow Collaboration Engines for

Supply Chain,Demand Chain,Life Cycle, Core …

Add-in Services

Enterprise using

hosted on-ramp

ConnectedEnterprise

Internet Saleson-ramp


SAPMarkets dream teaming with C1

Leading marketplace technology + Leading b2b applications = one joint marketplace solution

Marketing approach to software engineering

Pre-engineered solutions (as opposite to the „product is project“ approach)

Integration capabilites Horizontal = into the value chain or network Vertical = in legacy / LAN environment

Openness and connectivity

Compliance to the latest industry standards

Onramps strategy: Enterprise Buyer leap frogging any alternative product within 2000 with Direct material, Multi-Enterprise, Plant Maintenance and Services and more

Delivered about 75% of today's live marketplaces


To integrate applications and

technology

To integrate applications and

technology

To partner with confidence and

success

To partner with confidence and

success

Dimensions of Openness

To build the right commercial

model

To build the right commercial

model


TelecommunicationTelecommunication

Global Trading Web

N. AmericaN. AmericaUtilitiesUtilitiesAerospaceAerospace

EnergyEnergy


Film and TelevisionFilm and Television

Global Trading Web Global Trading Web


The range of services we offer to our partners

Alliance development

Value added services portfolio

Financial modeling and pricing strategy

Governance design and management

Organization design

Content management

Sourcing strategy

Auction services Catalog

management Collaborative

planning Virtual

integration

Partner coordination

Execution Milestone

management Contingency

planning Procurement

process redesign Change

management Organizational

redesign

Buyer Adoption• Consistent value

proposition and pricing strategy

• Effective sales strategy

Supplier Adoption• Effective

marketing and communication

• Incorporation of supplier feedback

Exchange design Buyer / supplier

integration User-interface

Business Business StrategyStrategy

Business Business StrategyStrategy

Supply Supply Chain Chain

ServicesServices

Supply Supply Chain Chain

ServicesServices Business Business ProcessProcess

(Re)design(Re)design

Business Business ProcessProcess

(Re)design(Re)design

Technical Technical ArchitectureArchitectureTechnical Technical

ArchitectureArchitecture

ProgramProgramManagementManagement

ProgramProgramManagementManagement

MarketingMarketingServicesServices

MarketingMarketingServicesServices

Thank you

for your interest

natalia parmenova business development manager sapmarkets europe building an egovernment procurement...

Documents

profile of sapmarkets

mission of sapmarkets

solutions sapmarkets

form sapmarkets

emarketplace slide

ramps slide

exchanges slide

sap ag spinoff