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Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals
1
ONLINE FILE W7.1
LAND O’LAKES COLLABORATES WITH COMPETITORS
TO IMPROVE ITS LOGISTICS
The Problem
Land O’Lakes, Inc. (landolakesinc.com) is a $6 billion national
food and agricultural cooperative owned by and serving
thousands of producer-members, many of which are community cooperatives. It is the nation’s second-largest dairy
cooperative and has the largest market share of butter and
deli cheese.
Land O’Lakes ran into trouble in 2002 in every major
area of operations. Sales fell $712 million from the previous
year, to $5.8 billion, partly due to smaller markets for
branded dairy products as a result of the slow economy.
Land O’Lakes also was burdened with debt from its 2001
acquisition of Purina Mills.
Another factor was Wal-Mart, which was moving further
into the grocery business. Wal-Mart’s renowned distribution
system includes super-efficient regional distribution centers
across the country, where trucks that bring goods in and take
them out can “cross-dock” without having to keep large
amounts of inventory in a holding area. Land O’Lakes (and its
competitors) had to be able to accommodate Wal-Mart’s
demanding schedules by having trucks show up at precisely
the required time.
Land O’Lakes also has to compete for space in
supermarkets’ refrigerated sections with huge competitors
such as General Mills and Kraft Foods. These giants use their
size, clout, and relationships with supermarket retailers,
paying slotting allowances (up-front payments that a food
manufacturer must pay to a supermarket for access to its
shelves) and engaging in other practices that make the fight
for shelf space extremely competitive. Therefore, Land
O’Lakes must deliver more frequently in order to keep enough
stock at the stores.
The Solution
Delivery trucks were empty about 25 percent of the time.
Just 2 years ago, Land O’Lakes truckers—some 50 different
carriers—spent much of their time shuttling empty trucks
down slow-moving highways, wasting several million dollars
annually.
Land O’Lakes had to find ways to become more efficient
in order to reduce costs. To address inefficiencies, Land
O’Lakes started using Web-based collaborative logistics. The
company turned to Nistevo (nistevo.com), a hosted software
service that enables manufactures, retailers, and carriers to
plan and execute their inbound and outbound logistics.
Nistevo’s collaborative logistics system continuously
updates and consolidates information about routes, loads,
and schedules from members’ in-house logistics scheduling
systems. Only Nistevo sees the whole picture. For example, if
General Mills and Land O’Lakes are sharing a route, Land
O’Lakes routes are not shown to General Mills, and vice versa.
Nistevo scans the millions of possible route configurations
and route-load combinations to look for empty trucks
and less-than-truckload product amounts. When it finds
these situations, Nistevo can merge loads from different
companies, even competitors, bound for the same
destination, or destinations along the way.
The Results
To join Nistevo’s network, Land O’Lakes paid an initial
subscription fee of $250,000, and the co-op incurred
another $250,000 in related startup costs, such as training
its 10-person logistics staff to use the collaborative system.
However, the company says that savings from its logistics
strategy covered those fees within the first 6 months of use.
In fact, the new logistics strategy is cutting freight costs by
15 percent annually, for an annual savings of over $2 million.
Now, thanks to the Web, the company can identify
empty trucks and the best carriers and find the fastest
routes, piggybacking Land O’Lakes onto dozens of General
Mills’ and Georgia-Pacific Corp.’s routes to gain savings.
Questions
1. Enter nistevo.com and learn more about how it serves
the transport industry.
2. What role does EC technology play at Nistevo?
REFERENCES FOR ONLINE FILE W7.1
Buss, D. “Land O’Lakes Shares the Load.” CIO Insight,
May 9, 2003.
Karolefski, J. “Driving Up Costs.” Food Logistics, February 1,
2005. archives.foodlogistics.com/publication/article.
jsp?pubId=1&id=101# (accessed January 2007).
Nistevo.com. “Land O’Lakes Reduces Supply Chain Costs
Through Online Execution of Logistics Operations.”
nistevo.com/v1/pdfs/LOL_Case_Study.pdf (accessed
January 2007).
2
Part 3: Business-to-Business E-Commerce
Online File W7.2 What Is RFID?
Radio Frequency Identification (RFID) tags can be attached to or embedded in objects, animals, or humans and use radio waves
to communicate with a reader for the purpose of uniquely identifying the object or transmitting data and/or storing information about the object. How RFID tags can smooth supply chains is shown in Exhibit W7.2.1.
EXHIBIT W7.2.1
Grocery
How RFID Tags Smooth Supply Chains
Supply chain
management system
recognizes need for
inventory
SHOPWE
LL
Retailer
using
RFID
INVENTORY
NEEDED
Inventory
management
system sends
request for more
Supply chain management
software also places orders for
raw materials to begin production
of additional products
Manufacturer
Suppliers
Shipments to manufacturers
Manufacturer’s logistics
software locates
supplier’s trucks, reads
RFID tags of contents,
routes trucks to
production
Warehouse
sends what
inventory
it can
Retailers warehouse
RFID at warehouse
directs trucks to docks
Finished
goods
trucks
There are two main types of RFID tags, usually referred to as passive and active tags, each with quite different characteristics and capabilities. Each is better suited to somewhat different types of application (see Exhibit W7.2.2).
EXHIBIT W7.2.2 Comparison of Active vs Passive RFID Tags
Internal power supply
Required signal strength from reader
Ability to send and receive data
Proximity to reader
Cost
Size
Suitable applications
Passive RFID Tags
Active RFID Tags
No, rely on energy from reader
Relatively strong
Can only send or receive in range
of reader
Relatively close—up to 3 meters
Generally cheaper
Generally smaller
Single, relatively few tag reads, highly
structured repetitive processes
Yes, small internal battery
Relatively weak
Can continuously monitor and
record data
Relatively distant—100 meters or more
Generally more expensive
Generally larger
Multiple tag reads required, up to
100 mph past reader
Sources: Tech-faq.com (2006) and Wikipedia (2007).
One of the critical differences relates to the source of power for the tag. Passive tags do not contain their own internal
power supply but, rather, reflect energy from a reader or temporarily store minute amounts of energy from a reader that is used
to send back its response. Therefore, passive tags require relatively strong signals to be sent from the reader, but the signal
returned to the reader is generally relatively weak. Out of range of the reader, they can neither send nor receive information.
Passive tags are inexpensive, relatively small, and must be in close proximity to their readers (3 meters or less). By contrast,
active tags do contain an internal power supply, generally a small battery, which continuously powers the tag. Therefore, the
active tag requires only low-powered signals from a reader, because it can respond using its own internal power supply. Because
Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals
3
of constant supply of power, active tags can continuously monitor and record information and record dates and times associated
with particular events, irrespective of their proximity to a reader. Active tags are generally larger than passive tags and are more
expensive; however, they can be much further from their readers and still communicate effectively (100 meters or more).
The power supply difference has other critical impacts on the functionality of RFID tags. Passive tags are not well suited to
transmitting multiple-tag data rapidly (such as when a loaded truck or forklift passes by a reader, with tags attached to pallets,
cartons, and individual items in that load). Each tag must communicate with the reader, and without any internal power supply,
this takes some time. Thus, loads containing passive tags must be driven very slowly and close by a reader. In addition, they
are prone to interference between tags as the number of tags increases.
Active tags are much better suited for multiple-tag data collection because the readers are able to collect data from many
more tags quickly at a much further distance. Active tags can pass by readers at speeds of 100 mph and still be accurately read.
Passive tags have very limited storage capability, approximately 128 bytes but do not have any search capability. Active
tags, by contrast, are able to store about 1 Mg of data and do have search capabilities. Thus, in most organizations, supply
chain operations may require a mix of active and passive tags, depending on the nature of the activities and processes
involved.
Passive tags are generally better suited to highly structured, repetitive processes, such as conveyor belts moving boxes,
luggage, or individual items. Active tags are better when there is less structured movement, where there are security and monitoring requirements, when there is a substantial area to be monitored, and where multiple tags need to be read simultaneously
and rapidly (TechFaq.com 2006; Wikipedia 2007; Autoid.org 2006).
RFID chips vary quite substantially in terms of size and cost, and both of these factors are connected to the power and
functionality associated with a particular chip. Images of different sizes and types of tags are available at SpyChips
(see spychips.com/devices/tag_images.html). Although some RFID tags are reportedly very small (about the size of a grain of
rice), most are much larger, ranging from 3 to 6 inches in length. The RFID tag includes an antenna and a chip that contains
an electronic product code (EPC). The EPC stores much more information than a regular bar code (e.g., when and where the
item was made, where the components are from, and when the item might expire).
The prospect of affordable tags has retailers interested in the potential benefits. If every item in a shop were tagged,
retailers could both improve customer service and combat top-line losses, which are typically 2 to 15 percent of sales. RFID
technology could be used to locate mislaid products, deter theft, and even offer customers personalized sales pitches through
displays mounted in dressing rooms. Ultimately, tags and readers could replace bar codes and checkout labor altogether.
RFID technologies are still somewhat limited in their real-life uptake, but many firms are trialing them for a range of
purposes, and there is every indication that areas of application will increase over the next few years. Many large companies,
including Wal-Mart, have already implemented RFID technologies in some of their operations, and many more are currently in
various stages of pilot programs, such as Patties Pies, Australia Post, and Australian Air Express in Australia.
RFID promises substantial benefits. RFID tags on pallets, cartons, and individual items offer better tracking of goods along
the supply chain and should help reduce to eliminate unwanted stock outs. They should also ensure accuracy of goods supplied
against purchase orders and invoices, thus reducing need for reconciling payments against shipments and the like. They also
should help reduce spoilage of goods with specific use-by dates. And finally, they should help ensure that goods are shipped to
the correct destinations, both when and where they are needed (A. T. Kearney 2004). However, these are just few of the
benefits that have been reported from RFID initiatives. Innovative uses of RFID tags have achieved these and some other
promising benefits. Many of these benefits will have application to a much larger range of industries and goods.
REFERENCES FOR ONLINE FILE W7.2
A. T. Kearney. “RFID/EPC: Managing the Transition.” 2004.
atkearney.com/shared_res/pdf/RFID-EPC_S.pdf
(accessed October 2006).
Autoid.org. “Part 1: Active and Passive RFID: Two Distinct,
But Complementary Technologies for Real-Time Supply
Chain Visibility.” 2002. autoid.org/2002_Documents/
sc31_wg4/docs_501-520/520_18000-7_WhitePaper.pdf
(accessed December 2006).
TechFaq.com. “What is RFID?” techfaq.com/rfid.shtml
(accessed December 2006).
Wikipedia. “RFID.” 2007. en.wikipedia.org/wiki/RFID
(accessed January 2007).
4
Part 3: Business-to-Business E-Commerce
ONLINE FILE W7.3
WEBCOR BUILDERS GOES ONLINE WITH ITS PARTNERS
Webcor Builders (webcor.com) builds apartment buildings,
hotels, and office parks and earns revenues in excess of
$1 billion a year. For years, the company suffered from poor
communication with its partners (architects, designers,
building owners, subcontractors) and struggled with too
much paperwork. Reams of paper documents were sent back
and forth via “snail mail.” In a very competitive industry,
inefficiencies can be costly. Therefore, Webcor decided to
introduce c-commerce into its operations. Webcor’s goal was
to turn its CAD drawings, memos, and other information into
shared digital information.
To enable online collaboration, Webcor uses an ASP that
hosts Webcor’s projects using ProjectNet software on a
secured extranet. The software is complex; it was difficult to
get everyone to accept ProjectNet, and some user training
was necessary. However, Webcor found itself in a strong
enough market position to be able to say that in the near
future, it would not partner with anyone who would not use
ProjectNet.
With everyone on the ProjectNet system, Webcor’s business partners can post, send, or edit complex CAD drawings,
digital photos, memos, status reports, and project histories.
ProjectNet provides a central meeting place where users can
both download and transmit information to all parties.
Everyone involved in a project is more accountable because
there is a digital trail, and partners now get instant access to
new drawings.
One of the major benefits of ProjectNet is that employees now spend more time managing their work and less time
on administrative paperwork. Several clerical workers were
laid off, and the saved cost of their salaries is covering the
software rental fees.
Questions
1. Draw the supply chain of Webcor before ProjectNet.
2. What B2B model is this (e.g., sell-side, buy-side, etc.)?
3. What are the benefits of this c-commerce project to
Webcor?
4. What are the benefits of this c-commerce project to
Webcor’s clients?
REFERENCES FOR ONLINE FILE W7.3
DiCarlo, L. “Case Study: Webcor Builders.” PC Computing,
December 1999, pp. 108–120. Webcor Builders.
webcor.com (accessed January 2007).
ONLINE FILE W7.4
INTERORGANIZATIONAL COLLABORATION
AT NYGARD OF CANADA
The apparel industry is one of the most competitive
industries, and global manufacturers are often forced to
operate with razor-thin margins. IT is often adopted as
a major competitive weapon. Nygard International
(nygard.com) of Winnipeg, Canada, is a leader in adopting IT
and e-commerce in the apparel industry.
Nygard developed an ERP and SCM system that controls
all internal operations, purchasing, product development,
accounting, production planning, and sales. This enabled the
company to develop tight integration with its trading
partners. For example, the moment that a customer buys a
pair of pants at a retail store, the information moves from
the point-of-sale terminal to an inventory system, which
automatically generates a reorder when the pants inventory
decreases to a prespecified level.
In the apparel industry, it is most important to use EC
tools on the procurement side. When sales are sufficient to
trigger orders, Nygard’s manufacturing specifications stored
in the ERP system automatically trigger records on all raw
materials, such as fabrics, zippers, and buttons. When each
raw material falls below a certain level, an automatic
reorder is generated. The system not only matches orders
with the right fabrics, but it searches a database for the
most efficient combinations of other raw materials to be
used with those fabrics. This allows just-in-time production
and delivery of customized orders—sometimes even on the
same day the order is received. To ensure just-in-time delivery, Nygard must have visibility not only into its suppliers’
systems but also into its suppliers’ suppliers’ systems. With
such information, Nygard can make commitments to its
(continued)
Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals
ONLINE FILE W7.4
5
(continued)
INTERORGANIZATIONAL COLLABORATION
AT NYGARD OF CANADA
customers that it can fulfill. If raw materials are not delivered as promised, the supplier pays Nygard a delay penalty.
This rarely happens.
In addition, a Web-based control system enables the
company to conduct detailed profitability studies; thus every
proposal and decision is evaluated by its impact on the bottom line. Decision support system (DSS) models are used for
this purpose.
More recently, Nygard selected the GXS Trading Grid as a
key component of its Web-based Retail Fashion Expert (RFX)
order system. Nygard realized that handling paper was
expensive and time consuming, especially when EC is more
transparent and immediate. As a result of its deployment of
EC, Nygard has reduced order processing lead times by
8 days, has reduced buyers’ workloads by 75 percent, and
has increased sales by more than 42 percent.
One of the major issues in the apparel industry is the
transfer of manufacturing operations to countries where labor
is inexpensive. Nygard decided not to outsource to other
countries because doing so can double the cycle time as well
as the needed inventory levels. To stay in Canada and remain
competitive, the company must use EC to control its labor
and manufacturing costs.
Questions
1. What drives Nygard’s EC applications?
2. What is the role of SCM and ERP at Nygard?
3. With whom does Nygard collaborate? How is it done?
4. How can Nygard make deliveries at the specific date
and time requested by customers?
REFERENCES FOR ONLINE FILE W7.4
Carlyle, B., and D. Carlyle. “Managing the Supply Chain.”
Applied Apparel Magazine, March 4, 1999.
Gxs.com. “GXS First Annual Customer Awards Program
Winners.” gxs.com/customers/customer_awards.htm
(accessed January 2007).
Nygard.com. nygard.com (accessed January 2007).
Stephenson, W. “Nygard Goes Electronic.” Winnipeg Sun,
June 3, 1999.
ONLINE FILE W7.5
CADENCE DESIGN SYSTEMS: DEPLOYING
A CORPORATE PORTAL ON ITS INTRANET
Cadence Design Systems, Inc., is a leading supplier of
electronic design automation (EDA) software tools and
professional services for managing and accelerating the
design of semiconductors, computer systems, networking and
telecommunications equipment, consumer electronics, and
other electronics-related products. The San Jose–based
company employs more than 5,000 people worldwide to
support the development requirements of the world’s leading
electronics manufacturers.
In the late 1990s, Cadence recognized that the business
model for EDA products was beginning to evolve from a
tools-oriented model to one where software and consulting
services held the potential for the greatest revenue growth.
To address this changing model, Cadence identified two areas
of customer interaction: sales and logistics. The new sales
strategy required the sales force to have an in-depth understanding of Cadence’s product line of almost 1,000 products
and services. With two separate organizations (sales and
logistics) interacting with customers, coordination and
communication were needed to ensure an effective and
consistent relationship built on a real understanding of the
customers’ issues.
For almost a year, Cadence worked with a consulting
firm to create an intranet-based corporate portal to support
its sales organization. The system, called OnTrack, uses a
homepage with links to other pages, information sources,
and custom applications to map each phase of the sales
process with supporting materials and reference information.
With OnTrack, the sales representative now has a single
unified tool that provides all the information and data
needed for the sales process, from finding new clients to
closing a deal to managing the account. In addition, global
account teams have their own homepages where they can
collaborate and share information. However, OnTrack is much
more than a static road map. For example, information on a
customer or competitor is now available instantly through
access to an outside provider of custom news. The sales rep
also can use a search engine to locate everything from
(continued)
6
Part 3: Business-to-Business E-Commerce
ONLINE FILE W7.5
(continued)
financial information to recent news articles and press
releases about clients or competitors. In addition, the system
is used to disseminate Cadence news and other information.
All creators of information in the company, from sales
reps to marketing and management personnel, are responsible for maintaining the information contained in OnTrack.
With a wide range of people entering data, a simple-to-use
information submission process was needed. To avoid the
need to understand HTML, electronic forms were created to
allow submission or modification of any part of the information in the OnTrack system. Anyone with appropriate access
can now add a new message to the daily alerts, modify a step
in the sales process, or update a customer presentation by
using these custom tools.
Feedback is a key part of OnTrack. Reports highlight
frequently accessed pages and documents, and reviews of
frequent searches identify new information to include in the
system to make critical information even easier to access.
Managers who made the decision to implement the
OnTrack system learned several lessons. First, although the
use of a browser and the navigation of a Web page required
only minimal employee training, the application of the
OnTrack system to the daily activities of the sales reps was
not as easy. A second lesson was the holistic approach
Cadence took in unifying the technology with the process.
Rather than mandate a new process or install a new software
system, Cadence did both. The combination of an easy-to-use
REFERENCES FOR ONLINE FILE W7.5
Cadence. cadence.com (press releases January 21, 2002,
June 27, 2002, and July 22, 2002).
EMC. “Customer Success Story: Cadence Design Systems.”
2002. software.emc.com/about_us/customer/profiles/
cadence.htm (accessed February 2007).
technology, a refined process, and the appropriate support
systems created a single coherent system that could support
the new sales paradigm.
OnTrack was implemented at a relatively low cost.
Cadence leveraged its existing infrastructure and wisely hired
outside experts to create the application rather than devoting internal resources to it. This choice allowed the company
to focus its efforts on defining the process and tools needed
to support the sales force rather than designing software.
Finally, the greatest impact of OnTrack has been the
result of the shortened training time for new sales reps. A
new salesperson stated that he had learned in 2 days from
OnTrack what it took months to learn at a previous company.
With 40 new reps hired in the first year and 40 planned for
each of the next 2 years, reducing the training time for new
sales personnel has created additional profits for Cadence.
Cadence calculates that OnTrack has achieved a high return
on investment, well over 100 percent!
Questions
1. How does the corporate portal assist sales
representatives?
2. What were the major lessons learned by Cadence?
Identify EC models and transactions used in this case.
3. How can the portal system accelerate training?
Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals
ONLINE FILE W7.6
INTEGRATING EC AND ERP AT CYBEX
In the late 1990s, Cybex International (cybexintl.com),
a global maker of fitness machines, was having trouble
meeting the soaring demand for its popular products. To
meet demand, the company had to work with rush orders
from its almost 1,000 suppliers at an extremely high cost.
This was a result of poor demand forecasting for the
machine’s components that was caused by using three
different legacy systems that Cybex had inherited from
merger partners.
After examining existing vendors’ supply chain
software, Cybex decided to install an ERP system for its
supply chain planning and manufacturing applications.
Together with the software installation, the company
analyzed its business processes and made the necessary
improvements. It also reduced the number of parts
suppliers from 1,000 to 550.
Here is how the system works: Customer orders are
accepted at the corporate Web site and are instantly
forwarded to the appropriate manufacturing plant
(the company has two specialized plants). The ERP uses its
planning module to calculate which parts are needed for each
model. Then, the ERP’s product configurator constructs a
component list and a bill-of-materials needed for each specific order. This takes seconds and expedites shipment.
The ERP system helps with other processes as well. For
example, Cybex can e-mail a vendor detailed purchase orders
with engineering changes clearly outlined. These changes are
visible to everyone, so if one engineer leaves the company,
his or her knowledge is in the system and is easy to find.
Furthermore, dealers now know that they will get deliveries
in less than 2 weeks instead of the previous 4 weeks, and
they can now track the status of each order. The system also
helps Cybex to better manage its 550 suppliers. For example,
the planning engine looks at price variations across product
lines, detecting opportunities to negotiate price reductions
by showing suppliers that their competitors offer the same
products at lower prices.
The new system gives Cybex’s suppliers projected
long-term and short-term production schedules. This helps
suppliers with their own planning, and it helps Cybex
ensure that all parts and materials are available when
needed. More timely delivery of parts and materials also
reduces the inventory level at Cybex. Furthermore,
suppliers that cannot meet the required dates are replaced
after quarterly reviews.
Some of the most impressive results included cutting
Cybex’s bill-of-material counts from 15,200 to 200, reducing
the number of vendors from 1,000 to 550, decreasing paperwork by two-thirds, and reducing build-to-order time from
4 to 2 weeks. Despite intense industry price cuts over the last
few years, Cybex has remained very profitable, mainly due to
its e-supply chain. Introducing the integrated ERP system
cost money, of course. In addition to the software, the technology staff has been increased from 3 to 12. However, the
company feels that the investment has been more than justified, especially because it provided for much greater harmony
between Cybex and its customers and suppliers.
Questions
1. Discuss the relationships between the EC applications
and the ERP system. (Try to identify as many relationships as possible.)
2. What is the role of the planning module?
3. Summarize all of the activities needed for successful
implementation of the ERP system at Cybex.
4. List some of the benefits of the ERP system to Cybex.
REFERENCES FOR ONLINE FILE W7.6
Barles, D. “PeopleSoft Works Out with Cybex.”
Line56.com, August 28, 2002. line56.com/articles/
default.asp?ArticleID=3971 (accessed February 2007).
Gustke, C. “No More Heavy Lifting at Cybex.” Forbes
(supplement), October 7, 2002, and from Cybex
International.
cybexintl.com (accessed 2002–2004).
7
8
Part 3: Business-to-Business E-Commerce
Online File W7.7 Key Steps to Corporate Portal Strategy
In a recent report, Forrester (2006) argued that effective and efficient corporate portals were not at all easy to build and were
extremely difficult to justify in terms of ROI. Forrester suggested five steps in defining a corporate portal strategy:
1. Leadership. It is essential to recruit a leader who can span many different organizational functions and who is supported by
a multifunctional team.
2. Business context. Understanding the context of the portal is essential.
3. User needs. The needs of users should drive the portal design, so that the portal adequately supports key user tasks and
activities.
4. Prioritization. It is important to prioritize activities supported by the portals and develop the portal portfolio based on
those priorities and time horizons.
5. Portal as destination. The portal should be thought of as support for knowledge workers rather than as a technology.
Managing change is critical to portal success.
More operational advice is offered in the steps below:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Identify the content that is or will be available and identify where this content resides.
Leverage existing systems, resources, and repositories.
Include both structured and unstructured information.
Organize content into categories that can be browsed and searched.
Integrate search functionality across multiple information repositories.
Build a platform for publishing and subscribing to content.
Deliver personalized content and services to users based on their responsibilities and roles.
Develop the corporate portal in phases.
Create online communities to connect people and enable collaborative work.
Develop an extensible architecture that allows for extended functionality.
Sustain a collaborative portal by institutionalizing it within daily business operations and weaving it into long-term
strategies.
12. Purchase an integrated portal product rather than building custom portal functionality.
REFERENCES FOR ONLINE FILE W7.7
Aneja, A., C. Rowan, and B. Brooksby. “Corporate Portal
Framework for Transforming Content Chaos on
Intranets.” Intel Technology Journal Q1 (2000).
Forrester. “Too Much Portal, Not Enough Portal Strategy.”
January 12, 2006. forrester.com/Research/Document/
Excerpt/0,7211,38528,00.html (accessed January
2007). plumtree.com (accessed January 2007).
Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals
Online File W7.8 Functionalities of Workflow Management Systems
The functionalities of workflow management systems (WFMSs) support the automated coordination and control of work
processes. In supporting coordination, these systems initiate activities, determine the flow of work, assign staff to tasks, route
work items, schedule completion dates, send reminders, and manage complex transactions. Some WFMSs will provide all the
necessary data (e.g., files, images) to employees in various departments who work on a given job. In controlling work, they
monitor progress, detect delays, enforce deadlines, ensure proper authorization, escalate work, measure performance, and
provide feedback to performers.
Implementations of WFMSs differ, depending on the vendor and the product. For example, messaging-based systems add
workflow capabilities to e-mail (e.g., Microsoft Exchange; InTempo from Jetform). Document-oriented WFMSs add workflow
capabilities to document management (e.g., Lotus Notes/Domino; Documentum Corp). Finally, production WFMSs support
complex workflows and communicate with the corporate database, legacy systems, Web-based systems, and so on (e.g., IBM
FlowMark; Ensemble from Filenet).
9
10
Part 3: Business-to-Business E-Commerce
ONLINE FILE W7.9
Feature
Characteristics of eRooms
(Now a Documentum Company)
Description
Calendar
• Easy-to-use, effective mechanism for picking people to invite to a meeting.
Database
• Convenient way to store data without having to create SQL server tables and generate a front-end
user interface for those tables.
Discussion
• Very functional.
• Includes several predefined databases.
• Different from traditional news-reader products (e.g., Microsoft Outlook, Forté Agent).
• Not as easy to read as Lotus Notes/Domino’s discussion database template.
Folder
• With plug-in, you can drag files from your desktop or Microsoft Explorer directly into the folder.
• Integration with routine Windows desktop interaction.
Inbox
• Can be linked to a POP3 account on your enterprise server or external server.
• Need not belong to an individual; a project can have its own inbox.
• Easy for archiving projects.
Link
• User can group all information about a project, including relevant URL links, within the project’s
eRoom.
• Helps consolidate project knowledge for staff.
Poll
• Like voting machines.
• Helps gather and count the group’s opinions.
• Can be stand-alone or contained within other items, such as notes or discussion.
How It Works
• Facilitator creates eRoom Facility and assigns all security permissions for the individual items.
(Security is effective, yet unobtrusive.)
• Individuals can read an item, participate within an item, or create their own items to share with
the group.
• Bring staff into eRoom by sending invitation, using enterprise’s Lightweight Directory Access
Protocol (LDAP) server to identify people to be invited, using Intercom (chat function) or e-mail.
• Configure the server to monitor changes within eRoom items and to send a summary e-mail
(includes subject and URL link to the right item) when it detects changes.
Other Advantages
• OK and Cancel buttons are at the top of the screen; they are easy to find without scrolling.
• Icons for links can be customized; easily identify the subject.
• Error messages.
Extensibility
• Still some limits.
• Ways to increase functionality.
• Provides connector for Microsoft Exchange; can archive project information to Exchange folders for
easier access.
• Separate connector for Lotus Notes/Domino and Documentation EDMS.
• Includes a Microsoft Component Object Model (COM) interface for its server components.
Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals
Online File W7.10 Sampler of Collaborative Applications
◗ Powerway (powerway.com) makes quality-management software that monitors the development of new automotive parts
through their completion at the factory. Powerway systems are used by GM and other auto manufacturers.
◗ To help contractors work with partners on new designs in the aerospace industry, Exostar Corp. (exostar.com) offers ForumPass.
It greatly improves communication.
◗ Manhattan Associates (manh.com) offers warehouse management tools. For example, PKMS software manages shipping, tracks
orders, and counts inventory.
◗ Eqos Ltd. (eqos.com) provides tools for collaborative planning and event management. Its collaborator software enables
suppliers to integrate their customers’ supply and demand and product data with their own systems. It facilitates SRM.
◗ Agile (agile.com) offers an intercompany collaboration software product to its customers with a guaranteed ROI—if the
software does not save the customer enough money, the customer does not pay.
◗ WebOffice from WebEx (weboffice.com) provides an easy way for online multimedia conferencing with multiple people. Whether
connected via the Internet or a corporate intranet, dial-up modem, or broadband, employees and customers can have meetings
anytime, anywhere. If the person you are looking for is not online, you can leave a multimedia message.
◗ Netscape Collabra Server, a component of SuiteSpot from Netscape, provides collaboration services through discussion groups,
shared multimedia documents, and a Web browser interface. Anytime/anyplace virtual meetings can be structured within
Collabra. It includes open e-mail, groupware, editing, calendaring, document access, and Web browsing.
◗ NexPrise’s (nexprise.com) c-commerce solution allows users to create environments where people from multiple companies and
across geographic boundaries can create secure virtual workspaces in which they can collaborate on a number of key processes.
◗ Dassault Systems (3ds.com) provides a PLM solution. A pioneer in the software market since 1981, Dassault develops and
markets PLM application software and services that support industrial processes and provide a 3D vision of the entire life cycle
of products from conception to retirement. The company’s offerings include integrated mainstream product design tools and
3D components.
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